Stonegate Mortgage Corp. on Thursday reported a loss of $17.2 million in its second quarter, stung by what the company’s CEO described as “continuing volatility within the financial markets.”
The Indianapolis-based non-bank mortgage firm said that it lost $17.2 million, or 66 cents per share, compared with a profit of $11.1 million, or 43 cents per share, in the year-ago period.
On an adjusted basis, Stonegate earned $1 million, or 4 cents per share, compared with $2.3 million, or 9 cents per share. The company attributed the decrease to a lower volume of loan originations.
Analysts had projected an adjusted quarterly gain of 1 cent per share in the latest quarter.
Mortgage loan origination volume fell from $3.4 billion in the second quarter of 2015 to $2.3 billion in the latest quarter.
Stonegate’s revenue rose to $26.5 million, up from $5 million in the second quarter of 2015. The increase was largely driven by improved valuations of mortgage loans held for sale.
“During the second quarter, we saw continued volatility within the financial markets primarily driven by economic concerns abroad. While this environment presented some challenges related to earnings, we were pleased with the overall performance of our business segments and the profitability of our core operations,” Stonegate CEO Jim Smith said in a written statement.
In early afternoon trading, Stonegate shares were up 13 cents each, to $3.83. A year ago, they were trading at $9.47.