Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 21

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 21
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 and servicing expense.

Other Revenue includes loan origination fees, interest income, and mortgage servicing income. Loan origination fees are earned as mortgage loans are funded. Servicing fees are earned over the life of the loan. Interest income includes interest earned on loans held for sale and interest income on bank balances and short-term investments.

Expenses

Employee Compensation and Benefits includes salaries, commissions, benefits, bonuses, other incentive compensation and related taxes for employees. Commissions expense for sales staff generally varies with loan origination volumes.

Interest Expense represents borrowing costs under warehouse and other credit facilities used primarily to fund loan originations. Amortization of deferred financing costs, including commitment fees, is included in interest expense.

Depreciation is mainly associated with furniture, fixtures and equipment. Amortization is primarily associated with a trade name and internally developed software.

Other Expenses include loan origination expenses, namely, leads, appraisals, credit reporting and licensing fees, general and administrative expenses, including office rent, insurance, legal, consulting and payroll processing expenses, and servicing expense.

65

The following tables present the Mortgage segment results for the following periods:

Results of Operations

($ in thousands)Year Ended December 31,20242023Revenues:Net realized and unrealized gains (losses)$42,978 $34,232 Other revenue22,936 19,632 Total revenues$65,914 $53,864 Expenses:Employee compensation and benefits$37,452 $34,040 Interest expense2,001 1,856 Depreciation and amortization343 617 Other expenses21,393 20,636 Total expenses$61,189 $57,149 Income (loss) before taxes$4,725 $(3,285)Key Performance Metrics:Origination volumes$946,183 $876,914 Gain on sale margins4.8 %4.7 %Return on average equity6.7 %(4.6)%Non-GAAP Financial Measures (1):Adjusted net income$1,531 $(1,082)Adjusted return on average equity2.8 %(2.0)%

(1)    See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures.

Revenues - Year Ended December 31, 2024 compared to 2023

For the year ended December 31, 2024, $946.2 million of loans were funded, compared