Shares in Walter Investment Management soared more than 17 percent Thursday after the Tampa-based mortgage finance firm reported improving credit quality for its loan portfolio.
First-quarter core earnings of $58 million were about flat with year-ago numbers. A $15 million after-tax reduction, however, led to a drop in net income to $17.4 million, or 45 cents a share, compared to $27.7 million, or 73 cents, in the year-ago quarter.
Total revenue for the quarter was $369.9 million, up 18 percent from a year ago.
Walter shares closed at $29.13 apiece on Thursday, up $4.30.
Since spinning off from the former Walter Industries in 2009, Walter Investment has grown into a sizable mortgage lender with a focus on subprime or other "credit-challenged mortgages" as well as reverse mortgages.