– Net income from continuing operations of $171 million or $0.72 basic earnings per share for the quarter –

– 20% improvement on an adjusted net basis⁽¹⁾ over the prior quarter –

– Finished the year with 37% share of HECM Reverse market⁽²⁾ –

PLANO, Texas--(BUSINESS WIRE)--Finance of America Companies Inc. (“Finance of America” or the “Company”) (NYSE: FOA), a modern retirement solutions platform, reported financial results for the quarter and year ended December 31, 2023.

Fourth Quarter and Full Year 2023 Highlights

• Net income from continuing operations for the fourth quarter of $171 million or $0.72 basic earnings per share primarily due to non-cash, positive fair value changes on long-term assets and liabilities combined with improved results from operations.
• For the quarter, the Company recognized an adjusted net loss⁽¹⁾ of $20 million or $0.09 per share, an improvement of 20% over the prior quarter.
• 67% improvement in adjusted net loss in Retirement Solutions in the fourth quarter driven by higher revenue margin and reduced expenses compared to the prior quarter.
• For the full year, our subsidiary, Finance of America Reverse maintained 37% share of the HECM Reverse market.⁽²⁾

⁽¹⁾ See the sections titled “Reconciliation to GAAP” and “Non-GAAP Financial Measures” for reconciliations to the most directly comparable GAAP measures and other important disclosures.
⁽²⁾ Source: https://www.newviewadvisors.com/commentary/2023-full-year-hmbs-issuer-league-tables/; measured by HMBS issuance.

Graham A. Fleming, Chief Executive Officer commented, “2023 was a transformational period for Finance of America and I want to thank our entire team for their hard work and determination over the course of the year. We completed a series of strategic transactions that helped establish the Company as the preeminent platform for homeowners 55 and older seeking to benefit from their home equity. With most of these efforts now behind us, we are excited to move forward. As a business, we are firmly positioned as the leading provider of modern retirement solutions with the potential to reach tens of millions of customers nationwide.”

Fourth Quarter Financial Summary of Continuing Operations

⁽¹⁾ See the sections titled “Reconciliation to GAAP” and “Non-GAAP Financial Measures” for reconciliations to the most directly comparable GAAP measures and other important disclosures.
⁽²⁾ Calculated on an if-converted basis except when anti-dilutive.

Balance Sheet Highlights

• Ended the fourth quarter with cash and cash equivalents from continuing operations of $46 million. The decrease in cash was attributable to investments in our balance sheet related to non-agency production.
• Securitized loans held for investment (HMBS & nonrecourse) increased 3% as new production combined with the positive change in fair value related to market rates and spreads.
• Total assets increased 3% in line with the change in securitized loans held for investment.
• Total liabilities increased $541 million on a sequential-quarter basis primarily due to increases in HMBS obligations and nonrecourse debt, aligned to the change in securitized loans held for investment.

Segment Results

Retirement Solutions

The Retirement Solutions segment primarily generates revenue and earnings in the form of net origination gains and origination fees earned on the origination of reverse mortgage loans.