BRMK - Broadmark Realty stock slips after Q3 results miss credit loss provision increases

Broadmark Realty ( NYSE: BRMK ) stock dropped 4.4% in Monday after-hours trading after the specialty real estate finance company's Q3 results fell short of Wall Street expectations as it boosted its provision for credit losses and said the amount of loans on non-accrual status rose from Q2.

Q3 distributable EPS of $0.14 vs. average analyst estimate of $0.16, fell from $0.16 in Q2 and from $ in Q3 2021.

Revenue of $27.1M, trailing the $29.0M consensus, fell from $28.5M in Q2 and from in the year-ago quarter.

Q3 net provision for credit losses surged to $12.3M, up from $2.7M in the prior quarter and $2.6M in the year-ago quarter.

The company's board also approved a stock repurchase program of up to $75.0M.

During the quarter, Broadmark ( BRMK ) closed new originations and amendments of $137.9M, with a weighted average yield of 12.9% and at a weighted average loan-to-value of 59.7%.

It received $197.8M of loan payoffs during the quarter.

Principal outstanding on loans in contractual default placed on non-accrual status of $115.4M as of Sept. 30, 2022, up from $91.7M at June 30.

Earlier, Broadmark Realty Capital non-GAAP EPS of $0.14 misses by $0.02, revenue of $27.1M misses by $1.42M

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