Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 115

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 115
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 modeled yield on a larger portfolio during the three months ended March 31, 2025 compared to the 2024 period. Net portfolio interest income increased $0.3 million, as higher average cost of funds within our securitized financing portfolio was more than offset by a gain on extinguishment of debt related to the purchase of securities that were previously issued by a consolidated trust. 

•Fair value changes from market inputs or model assumptions increased $74.7 million primarily due to market interest rate and yield volatility, which generated higher net fair value gains during the three months ended March 31, 2025 compared to the 2024 period. Refer to Note 5 - Fair Value in the Notes to Condensed Consolidated Financial Statements for additional information regarding the key inputs, assumptions, and valuation techniques impacting the value of our loans held for investment and related obligations.

Expenses

In the table below is a summary of the components of our Portfolio Management segment’s total expenses (in thousands):

For the three months ended March 31, 2025For the three months ended March 31, 2024Salaries$2,806 $2,957 Commissions and bonuses442 1,044 Other salary related expenses384 1,063 Total salaries, benefits, and related expenses3,632 5,064 Loan portfolio related expenses9,804 5,532 Loan servicing expenses7,741 8,218 Marketing and advertising expenses— 15 Depreciation and amortization18 8 General and administrative expenses2,536 3,916 Total expenses$23,731 $22,753 

For the three months ended March 31, 2025 versus the three months ended March 31, 2024

Total expenses increased $1.0 million or 4.3% as a result of the following:

•Salaries, benefits, and related expenses decreased $1.4 million or 28.3% primarily due to a decrease in average headcount and continued cost-cutting measures associated with the wind-down of business lines that are not part of our unified modern retirement solutions platform during the three months ended March 31, 2025 when compared to the 2024 period, as well as a reduction in compensation cost associated with the Replacement RSUs and Earnout Right RSUs which expired in 2024. Average headcount was 61 for the three months ended March 31, 2025 compared to 69