Multifamily lender Walker & Dunlop reported a slight drop in profits during the second quarter as it reported $1.3 billion in originations - its highest quarterly number ever.
Overall, the firm reported $42.4 million in revenues and $11.1 million in profits - or $0.51 per share.
The drop in profits was minor, and can be attributed to increased expenses in the recent period - particularly personnel expenses. In the second quarter of 2011, the lender's expenses increased by 28 percent to $24.2 million. In the same quarter in 2010, the group only spent $19 million.
Speaking on its success this quarter, the lender noted that its improved its activities in the commercial real estate sector. CEO Willy Walker said, "The favorable market conditions and our ability to execute have led to expansion of our loan origination platform, additional servicing revenues, and completion of several strategic initiatives."
The firm reported strong credit quality within it's at-risk servicing portfolio (or the Fannie loans which are subject to risks). The portfolio rose from June's $6.4 billion to $7 billion. The company outdid analyst's projections of a 40 cents per share posting, according to HousingWire.