November 20, 2013

NMI Holdings, Inc. Reports Third Quarter 2013 Financial Results

EMERYVILLE, Calif., Nov. 20, 2013 /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 ended September 30, 2013.  The Company reported a net loss for the quarter ended September 30, 2013 of $13.9 million, or $0.25 per share, and a net loss of $42.1 million, or $0.76 per share, for the first nine months of 2013.

For the third quarter of 2013, the Company had total revenues of $2.2 million, primarily comprised of $1.5 million of investment income and $0.5 million in earned premiums.  The majority of premiums earned for the period are attributed to a mortgage pool transaction with Fannie Mae which became effective on September 1, 2013.  For the nine months ending September 30, 2013, the Company had total revenues of $3.4 million, primarily comprised of $3.3 million of investment income.

"In the third quarter of 2013, National MI entered into a mortgage credit risk transaction with Fannie Mae to provide coverage on approximately $5.2 billion in single family mortgages.  We expect to earn an estimated $20 million in premiums over the 10 year coverage term," said Bradley Shuster, Chairman and CEO of NMI Holdings, Inc.  "We are pleased that Fannie Mae selected National MI to provide credit risk coverage on this group of loans.  We believe the marketplace recognizes the need for a new, well-capitalized, counter-party in the market.  National MI brings a strong, unencumbered capital base and a low risk-to-capital ratio which is well-suited for this transaction."

Total expenses for the quarter were $16.0 million, of which payroll and related expenses represented approximately 44% of the total expenses for the period.  For the nine months ending September 30, 2013, the Company had total expenses of $45.5 million.

At September 30, 2013, the Company had approximately $446 million of cash and investments and book equity of $447 million amounting to $8.03 in book value per share. 

On November 14, 2013, the Company closed its initial public offering of 2,415,000 shares of common stock (including shares purchased by the underwriters pursuant to exercise of the over-allotment option) at a public offering price of $13.00 per share, before underwriting discounts.  In addition, certain existing stockholders sold 3,395 shares in the offering.  Gross proceeds to the Company were $31.4 million and net proceeds after underwriting discounts and other offering expenses and reimbursements were approximately $29 million.  The Company did not receive any proceeds from the sale of shares by the selling stockholders.

"I am very pleased with our accomplishments in the past several quarters," Shuster said.  "In less than a year, we have obtained GSE approvals and licenses in 49 out of 51 jurisdictions, made the Company operational, and began issuing mortgage insurance policies to serve the needs of the housing market.  We believe the mortgage industry recognizes the value of a well-capitalized company with a master policy that provides customers with what we consider to be an unprecedented certainty of coverage."

Conference Call and Webcast Details
NMI Holdings, Inc. will hold a conference call today, November 20, 2013 at 2:00 p.m. Pacific time to allow analysts and stockholders the opportunity to hear management discuss the Company's quarterly 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: 12743586, 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) is headquartered in Emeryville, California, in the San Francisco Bay Area. NMI Holdings, Inc., National MI's parent company, raised over $500 million of capital in a private placement of its securities in April 2012, and completed its initial public offering in November 2013. National MI has received approval from Fannie Mae and Freddie Mac as a qualified mortgage insurer, and has been approved to provide mortgage insurance in 48 states and the District of Columbia.

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.  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 Mortgage Public Relations 
(203) 513-2721
MaryMcGarity@StrategicVantage.com  

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



NMI Holdings, Inc. (A Development Stage Company)


For the Three Months Ended September 30,


For the Nine Months Ended September 30,


2013


2012


2013


2012


(unaudited)


(unaudited)


(unaudited)


(unaudited)


(In Thousands, except per share data)

Revenues








Direct premiums written

$

482



$



$

483



$


Net premiums earned

482





483




Net investment income

1,519



1



3,336



1


Other revenue

160





(438)




Total Revenues

2,161



1



3,381



1


Expenses








Payroll and related

7,090



4,086



20,896



5,915


Share-based compensation

1,968



2,045



8,827



3,091


Professional fees

2,349



1,143



5,577



2,470


Depreciation and amortization

2,045





3,892




Information technology

1,328



281



3,455



282


Other

1,254



559



2,833



2,938


Total Expenses

16,034



8,114



45,480



14,696


Net Loss

$

(13,873)



$

(8,113)



$

(42,099)



$

(14,695)










Share Data








Basic and Diluted loss per share

$

(0.25)



$

(0.15)



$

(0.76)



$

(0.46)


Book value per share

$

8.03



$

8.99



$

8.03



$

8.99


Weighted average common

55,637,480



55,500,100



55,589,674



32,003,750


Shares outstanding

55,637,480



55,500,100



55,637,480



55,500,100


 

CONDENSED CONSOLIDATED BALANCE SHEETS







NMI Holdings, Inc.
(A Development Stage Company)


September 30,


December 31,


September 30,


2013


2012


2012


(unaudited)




(unaudited)


(In Thousands)

Cash and cash equivalents

$

34,097



$

485,855



$

494,784


Restricted cash



40,338



20,830


Investment securities

411,983



4,864



3,458


Accrued investment income

1,834






Goodwill and other intangible assets

3,634



3,634



4,702


Software and equipment, net

9,054



7,550



5,761


Other assets

1,117



527



457


Total Assets

$

461,719



$

542,768



$

529,992


Accounts payable and accrued expenses

$

9,276



$

8,707



$

5,339


Purchase fees and purchase consideration payable



40,338



20,830


Warrant liability

5,452



4,842



5,120


Other liabilities

133



133




Total Liabilities

14,861



54,020



31,289


Total Stockholders' Equity (Deficit)

446,858



488,748



498,703


Total Liabilities and Stockholders' Equity

$

461,719



$

542,768



$

529,992


 

SOURCE NMI Holdings, Inc.

News Provided by Acquire Media


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