Finance of America Companies Inc. (FoA) reported significant financial improvements in its third quarter and year-to-date results for 2024, compared to the same periods in 2023. As of September 30, 2024, total assets increased to $28.95 billion from $27.11 billion at the end of 2023. The company’s total liabilities also rose to $28.49 billion from $26.84 billion, while total equity improved to $456.46 million from $272.41 million.

For the three months ended September 30, 2024, FoA generated total revenues of $290.07 million, a substantial recovery from a loss of $70.44 million in the same quarter of 2023. This increase was driven by higher interest income, which rose to $489.90 million from $443.99 million year-over-year. Net origination gains also saw a significant rise, reaching $57.22 million compared to $31.38 million in the prior year. The company reported net income from continuing operations of $203.75 million for Q3 2024, a stark contrast to a loss of $172.47 million in Q3 2023.

For the nine months ended September 30, 2024, total revenues were $443.79 million, compared to a loss of $41.48 million in the same period of 2023. Net income from continuing operations for the nine-month period was $183.05 million, compared to a loss of $337.61 million in the previous year.

The company’s operational strategy has shifted significantly, focusing on retirement solutions and portfolio management after discontinuing its mortgage originations segment in early 2023. This transformation included the acquisition of assets from American Advisors Group (now Bloom Retirement Holdings Inc.) in March 2023, enhancing its distribution channels.

FoA has also undertaken cost-cutting measures, resulting in a 23.8% decrease in total expenses for Q3 2024, down to $80.31 million from $105.43 million in Q3 2023. The reduction in expenses was attributed to lower salaries and administrative costs, reflecting a decrease in average headcount.

In terms of strategic developments, the company completed a 1-for-10 reverse stock split on July 25, 2024, and has been actively managing its debt obligations, including a $350 million issuance of 2025 Unsecured Notes. As of September 30, 2024, FoA maintained compliance with all financial covenants related to its financing facilities.

Overall, Finance of America Companies Inc. has demonstrated a robust recovery in financial performance, driven by strategic realignment and operational efficiencies, positioning itself favorably in the evolving financial services landscape.