NOTE 16—QUARTERLY RESULTS (UNAUDITED)

The following tables set forth unaudited selected financial data and operating information on a quarterly basis as of and for the years ended December 31, 2017 and 2016. As noted previously, the Company’s financial results for the fourth quarter of 2017 reflect the impacts of the Tax Reform, which significantly reduced the Company’s income tax expense with a corresponding increase to Walker & Dunlop net income and impacts the comparison of the fourth quarter of 2017 to the fourth quarter of 2016.


	As of and for the year ended December 31, 2017
(in thousands, except per share data)	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
Gains from mortgage banking activities	$	129,458	$	111,304	$	102,176	$	96,432
Servicing fees		46,713		44,900		43,214		41,525
Total revenues		207,202		179,736		166,407		158,512
Personnel		91,120		78,469		63,516		56,172
Amortization and depreciation		33,705		32,343		32,860		32,338
Total expenses		140,442		125,040		110,325		102,389
Income from operations		66,760		54,696		56,082		56,123
Walker & Dunlop net income		98,961		34,378		34,567		43,221
Diluted earnings per share	$	3.06	$	1.06	$	1.08	$	1.35
Total transaction volume	$	8,312,167	$	8,549,532	$	6,031,636	$	5,012,496
Servicing portfolio	$	74,492,166	$	70,284,682	$	66,290,754	$	64,384,024


	As of and for the year ended December 31, 2016
(in thousands, except per share data)	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
Gains from mortgage banking activities	$	117,779	$	100,630	$	102,453	$	46,323
Servicing fees		39,370		37,134		32,771		31,649
Total revenues		178,391		154,786		147,858		94,241
Personnel		73,126		64,377		55,758		34,230
Amortization and depreciation		30,603		29,244		26,425		25,155
Total expenses		117,210		106,074		96,152		70,059
Income from operations		61,181		48,712		51,706		24,182
Walker & Dunlop net income		36,790		29,628		32,021		15,458
Diluted earnings per share	$	1.16	$	0.96	$	1.05	$	0.50
Total transaction volume	$	6,260,898	$	5,032,238	$	5,389,276	$	2,615,700
Servicing portfolio	$	63,081,154	$	59,121,989	$	57,321,824	$	51,040,752