- Tangible common equity per common share was $11.57 at December 31, 2013, an increase of 12% compared to year end 2012.
- Adjusted return on equity (ROE) was 10% and GAAP ROE was 9% for the full year 2013.
- Retained asset generation of $1.6 billion for the fourth quarter, including commercial origination volume of $701 million, an increase of 45% and 99%, respectively, compared to the prior quarter.
- Deployed excess liquidity to grow portfolio loans held for investment to $13.3 billion, an increase of 5% compared to the prior quarter, or 22% annualized.
- Core net interest margin was 3.30% for the quarter, an increase of 13 basis points from 3.17% in the prior quarter.
- Adjusted non-performing assets were 0.65% of total assets at December 31, 2013, a 36% decline compared to the prior quarter. Annualized net charge-offs to average loans and leases held for investment were 0.20% for the quarter.
- We remain on track to close the sale of our default servicing platform to Green Tree Servicing LLC and expect the transfer date, in addition to the servicing sale date, to occur during the first quarter 2014. In anticipation of closing and transfer, we recognized $14 million of non-recurring costs in the quarter related to the transaction.
- Due to the normalization of industry refinance volumes and the expected first quarter 2014 default servicing platform transfer, we adjusted our residential lending, servicing and corporate administrative capacity, resulting in severance charges of $4 million and lease termination expense of $3 million.
- We closed on the sale of non-core commercial loans and REO for approximately $98 million. We recognized a $4 million loss on the sale during the quarter, however we expect to benefit from reduced noninterest expense associated with this portfolio in future periods.
|1||A reconciliation of Non-GAAP financial measures can be found in the financial tables attached hereto.|
|($ in millions)||Dec 31, 2013||Sep 30, 2013||Dec 31, 2012||% Change (Q/Q)||% Change (Y/Y)|
|Mortgage pool buyouts||1,892||2,075||2,760||(9||)%||(31||)%|
|Total residential mortgages||7,045||6,699||6,709||5||%||5||%|
|Commercial real estate||3,190||3,243||3,390||(2||)%||(6||)%|
|Total commercial finance & CRE||5,107||4,850||4,638||5||%||10||%|