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[STK] NASDAQ-NMS:NMIH
[IN] RLT RRL FIN
[SU] ERN CCA
-- WITH PHOTO -- TO BUSINESS, AND REAL ESTATE EDITORS:
NMI Holdings, Inc. Reports Fourth Quarter and Full Year 2013 Financial
Results
EMERYVILLE, Calif., March 10, 2014 /PRNewswire/ -- NMI Holdings, Inc.,
(NASDAQ: NMIH) (the "Company"), the parent company of National
Mortgage Insurance Corporation (National MI), today reported its
results for the three months and the full year ended December 31,
2013. The Company reported a net loss for the quarter ended December
31, 2013 of $13.1 million, or $0.23 per share, and a net loss of $55.2
million, or $0.99 per share, for the year ended December 31, 2013.
"Through the hard work of a very talented group of employees, we
realized significant and foundational accomplishments in 2013 and
continue towards the vision we laid out in 2011," said Bradley
Shuster, president and CEO of NMI Holdings, Inc. "We completed an
initial public offering and registered shares sold to investors in our
initial private placement (making good on our commitment to our
stockholders), gained approvals from both GSEs, developed an
industry-leading insurance management platform, integrated systems
with customers and servicers, and obtained licenses in 50 of 51
jurisdictions," he said.
In the fourth quarter of 2013, the Company had primary new insurance
written of $157.6 million compared to $3.6 million of primary new
insurance written for the quarter ended September 30, 2013. Primary
new insurance written totaled $162.2 million for the year ended
December 31, 2013. Pool new insurance written for 2013 was $5.2
billion and is related to the Fannie Mae transaction previously
disclosed in the Company's 2013 filings with the Securities and
Exchange Commission.
For the year ended December 31, 2013, the Company had primary
risk-in-force of $36.5 million compared to primary risk-in-force of
$1.2 million at September 30, 2013. Pool risk-in-force for the year
ended December 31, 2013 was $93.1 million.
For the fourth quarter of 2013, the Company had total revenues of $2.2
million, primarily comprised of $1.6 million in premiums earned and
$1.5 million of investment income offset by $0.9 million of loss from
the change in the fair value of the warrant liability. For the year
ended December 31, 2013, the Company had total revenues of $5.6
million, primarily comprised of $4.8 million of investment income and
$2.1 million in premiums earned offset by $1.5 million of loss from
the change in the fair value of the warrant liability.
Total expenses for the quarter were $15.3 million. For the year ended
December 31, 2013, the Company had total expenses of $60.7 million.
At December 31, 2013, the Company had approximately $465.0 million of
cash and investments and book equity of $463.2 million or $7.98 in
book value per share. This book value excludes any benefit
attributable to the Company's net deferred tax asset.
As of December 31, 2013, the Company's net deferred tax asset, before
valuation allowance was $35.6 million, compared to $26.6 million at
September 30, 2013.
During November 2013, the Company completed an initial public offering
of 2.4 million shares of its common stock and its common stock began
trading on the NASDAQ on November 8, 2013, under the symbol "NMIH."
Net proceeds to the Company from the offering were approximately $28
million.
"National MI is quickly establishing itself as the mortgage insurance
company that provides one of the most definitive terms of coverage in
the industry bolstered by capital strength and no legacy risk. The
customer response to our master policy and unprecedented claims
payment certainty has been extremely positive. We continue to expand
our customer footprint each quarter, and as of the end of February
2014, we had approximately 400 master policies signed with lenders,
including 12 of the top 25 sellers of GSE loans with private MI, as
defined by Inside Mortgage Finance. In addition, we had approximately
60 lenders sending the Company mortgage insurance applications and 34
customers generating NIW. The improved housing outlook in 2014 bodes
well for the private mortgage insurance industry, and I am confident
we will continue to make significant progress in 2014," Shuster said.
Conference Call and Webcast Details
NMI Holdings, Inc. will hold a conference call today, March 10, 2014
at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time to allow analysts
and stockholders the opportunity to hear management discuss the
Company's quarterly and year end results. The conference call will be
broadcast live on the Company's website, in the "Investor Relations"
section at http://ir.nationalmi.com. The call may also be accessed by
dialing (888) 734-0328 inside the U.S., or (678) 894-3054 for
international callers using conference ID: 51892317, or by
referencing NMI Holdings, Inc. Investors and analysts are asked to
dial-in ten minutes before the conference call begins.
About National MI
National Mortgage Insurance Corporation (National MI), a subsidiary of
NMI Holdings, Inc. (NASDAQ: NMIH), is a U.S.-based, private mortgage
insurance company enabling low down payment borrowers to realize home
ownership while protecting lenders and investors against losses
related to a borrower's default. To learn more, please visit
www.nationalmi.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements about our
expectations, beliefs, plans, predictions, forecasts, objectives,
assumptions or future events or performance are not historical facts
and may be forward-looking. These statements are often, but not
always, made through the use of words or phrases such as "anticipate,"
"believes," "can," "could," "may," "predicts," "potential," "should,"
"will," "estimate," "plans," "projects," "continuing," "ongoing,"
"expects," "intends" and similar words or phrases. All
forward-looking statements are only predictions and involve estimates,
known and unknown risks, assumptions and uncertainties that could
cause actual results to differ materially from those expressed in
them. Many risks and uncertainties are inherent in our industry and
markets. Others are more specific to our business and operations.
These risks and uncertainties include, but are not limited to, those
set forth under the heading "Risk Factors" in our most recent
Registration Statement on Form S-1, and described from time to time in
subsequent reports filed with the U.S. Securities and Exchange
Commission, including in our quarterly report on Form 10-Q filed on
December 17, 2013. Any or all of our forward-looking statements in
this press release may turn out to be inaccurate. Consequently, our
actual results could differ materially from those anticipated in such
forward-looking statements contained in this press release. Any
forward-looking statement speaks only as of the date on which it is
made and we undertake no obligation to update or revise any
forward-looking statement to reflect events or circumstances after the
date on which the statement is made or to reflect the occurrence of
unanticipated events except as required by law.
Media Contact: Mary McGarity Strategic Vantage Marketing & Public
Relations (203) 513-2721 MaryMcGarity@StrategicVantage.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Quarter Ended December 31, For the Year Ended December 31,
2013 2012 2013 2012
(unaudited) (unaudited)
(In Thousands, except per share data)
Revenues
Premiums written
Direct $ 3,058 $ - $ 3,541 $ -
Net premiums written 3,058 - 3,541 -
Increase in unearned premium (1,446) - (1,446) -
Net premiums earned 1,612 - 2,095 -
Net investment income 1,472 5 4,808 6
Net realized investment gains 14 - 186 -
(Loss) Gain from change in fair value of warrant liability (918) 278 (1,529) 278
Total Revenues 2,180 283 5,560 284
Expenses
Insurance claims and claims expenses, net - - - -
Amortization of deferred policy acquisition costs 1 - 1 -
Other underwriting and operating expenses 15,263 13,079 60,743 27,775
Total Expenses 15,264 13,079 60,744 27,775
Net Loss $ (13,084) $ (12,796) $ (55,184) $ (27,491)
Loss per share
Basic and diluted loss per share $ (0.23) $ (0.23) $ (0.99) $ (0.73)
Weighted average common shares outstanding 57,238,730 55,500,100 56,005,326 37,909,936
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2013 December 31, 2012
(In Thousands)
Total investment portfolio $ 409,088 $ 4,864
Cash and cash equivalents 55,929 485,855
Restricted cash - 40,338
Software and equipment, net 8,876 7,550
Other assets 7,326 4,161
Total Assets $ 481,219 $ 542,768
Reserve for losses and loss adjustment expenses $ - $ -
Accounts payable and accrued expenses 10,052 8,707
Purchase fees and purchase consideration payable - 40,338
Warrant liability 6,371 4,842
Other liabilities 1,579 133
Total Liabilities 18,002 54,020
Total Shareholders' Equity (Deficit) 463,217 488,748
Total Liabilities and Shareholders' Equity $ 481,219 $ 542,768
New Insurance Written, Insurance in Force, and Risk in Force
As of December 31, 2013 NIW IIF RIF
Total Portfolio by FICO Score (Dollars in Thousands)
Primary
>= 740 $ 113,907 70.2 % $ 113,741 70.3 % $ 25,783 70.6 %
680 - 739 47,102 29.0 46,827 29.0 10,459 28.6
620 - 679 1,163 0.8 1,163 0.7 274 0.8
<= 619 - - - - - -
Total Primary 162,172 100.0 161,731 100.0 36,516 100.0
Pool
>= 740 4,186,844 81.0 4,127,451 81.0 75,195 80.8
680 - 739 832,755 16.1 821,852 16.1 15,146 16.2
620 - 679 152,065 2.9 149,214 2.9 2,749 3.0
<= 619 - - - - - -
Total Pool 5,171,664 100.0 5,098,517 100.0 93,090 100.0
Total
>= 740 4,300,751 80.6 4,241,192 80.6 100,978 77.9
680 - 739 879,857 16.5 868,679 16.5 25,605 19.8
620 - 679 153,228 2.9 150,377 2.9 3,023 2.3
<= 619 - - - - - -
Total Portfolio $ 5,333,836 100.0 % $ 5,260,248 100.0 % $ 129,606 100.0 %
RIF on defaulted loans $ -
Primary Pool
Percentage of RIF by Loan Type
Fixed 91.3 % 100.0 %
Adjustable rate mortgages:
Less than five years - -
Five years and longer 8.7 -
Total Primary 100.0 % 100.0 %
Primary Pool
RIF % of Total LTV Policy Count RIF % of Total LTV Policy Count
Total RIF by LTV (Dollars in Thousands)
95.01% and above $ 324 0.9 % 4 $ - - % -
90.01% to 95.00% 16,777 45.9 255 - - -
85.01% to 90.00% 15,031 41.2 241 - - -
80.01% to 85.00% 4,384 12.0 153 - - -
80.00% and below - - - 93,090 100.0 21,921
Total RIF $ 36,516 100.0 % 653 $ 93,090 100.0 % 21,921
Loan Size Coverage
Average Primary Loan Size and Coverage by FICO (Dollars in Thousands)
>= 740 $ 253 23.0 %
680 - 739 237 23.4 %
620 - 679 194 22.3 %
<= 619 - - %
December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
Primary (Dollars in Thousands)
New insurance written $ 157,568 $ 3,560 $ 1,045 $ -
Insurance in force (end of period) $ 161,731 $ 4,604 $ 1,045 $ -
Policies in force 653 22 6 -
Weighted-average coverage (1) 22.6 % 26.0 % 24.6 % - %
Loans in default (count) - - - -
(1) End of period risk in force divided by insurance in force.
Logo - http://photos.prnewswire.com/prnh/20130731/FL56494LOGO
SOURCE NMI Holdings, Inc.
-0- 03/10/2014
/Photo: http://photos.prnewswire.com/prnh/20130731/FL56494LOGO
(NASDAQ-NMS:NMIH) /
CO: NMI Holdings, Inc.
ST: California
IN: RLT RRL FIN
SU: ERN CCA
PRN
-- FL80347 --
0000 03/10/2014 20:05:00 EDT http://www.prnewswire.com
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