PennyMac Financial Services, Inc. Reports Fourth Quarter and Full-Year 2024 Results
PennyMac Financial Services (PFSI) reported Q4 2024 net income of $104.5 million ($1.95 per diluted share) on revenue of $470.1 million. Book value per share increased to $74.54 from $72.95 in Q3 2024.
Key Q4 highlights include: pretax income of $129.4 million, total loan acquisitions of $35.7 billion, and servicing portfolio growth to $665.8 billion. The company declared a quarterly dividend of $0.30 per share.
Full-year 2024 performance showed net income of $311.4 million, up from $144.7 million in 2023, with total loan production of $116.3 billion. The company issued $650 million in 6-year unsecured senior notes and increased its quarterly dividend by 50% from $0.20 previously.
PennyMac Financial Services (PFSI) ha riportato un reddito netto per il quarto trimestre 2024 di 104,5 milioni di dollari (1,95 dollari per azione diluita) su un fatturato di 470,1 milioni di dollari. Il valore contabile per azione è aumentato a 74,54 dollari rispetto ai 72,95 dollari del terzo trimestre 2024.
Tra i punti salienti del quarto trimestre ci sono: un reddito ante imposte di 129,4 milioni di dollari, acquisizioni di prestiti totali per 35,7 miliardi di dollari e una crescita del portafoglio di servizi a 665,8 miliardi di dollari. L'azienda ha dichiarato un dividendo trimestrale di 0,30 dollari per azione.
La performance dell'intero anno 2024 ha mostrato un reddito netto di 311,4 milioni di dollari, in aumento rispetto ai 144,7 milioni di dollari del 2023, con una produzione totale di prestiti di 116,3 miliardi di dollari. L'azienda ha emesso 650 milioni di dollari in note senior non garantite a 6 anni e ha aumentato il suo dividendo trimestrale del 50% rispetto ai 0,20 dollari precedenti.
PennyMac Financial Services (PFSI) reportó una ganancia neta del cuarto trimestre de 2024 de 104,5 millones de dólares (1,95 dólares por acción diluida) con ingresos de 470,1 millones de dólares. El valor contable por acción aumentó a 74,54 dólares desde 72,95 dólares en el tercer trimestre de 2024.
Los puntos destacados del cuarto trimestre incluyen: una ganancia antes de impuestos de 129,4 millones de dólares, adquisiciones de préstamos totales de 35,7 mil millones de dólares, y un crecimiento del portafolio de servicios a 665,8 mil millones de dólares. La compañía declaró un dividendo trimestral de 0,30 dólares por acción.
El desempeño de todo el año 2024 mostró una ganancia neta de 311,4 millones de dólares, un aumento desde los 144,7 millones de dólares en 2023, con una producción total de préstamos de 116,3 mil millones de dólares. La empresa emitió 650 millones de dólares en notas senior no garantizadas a 6 años y aumentó su dividendo trimestral en un 50% desde los 0,20 dólares anteriores.
PennyMac Financial Services (PFSI)는 2024년 4분기 순이익이 1억 4백 5십만 달러(희석주당 1.95 달러), 매출은 4억 7천 10만 달러였다고 보고했습니다. 주당 장부 가치는 2024년 3분기 72.95달러에서 74.54달러로 증가했습니다.
4분기 주요 사항으로는 세전 소득 1억 2천 9백 4십만 달러, 총 대출 인수 357억 달러, 서비스 포트폴리오 성장 6658억 달러가 있습니다. 이 회사는 주당 0.30 달러의 분기 배당금을 선언했습니다.
2024년 전체 성과는 3억 1천 14백만 달러의 순이익을 기록해 2023년 1억 4천 4백 70만 달러에서 증가했으며, 총 대출 생산은 1163억 달러였습니다. 이 회사는 6년 만기 무보증 고급 채권을 6억 5천만 달러 발행하고 분기 배당금을 0.20달러에서 50% 인상했습니다.
PennyMac Financial Services (PFSI) a annoncé un revenu net de 104,5 millions de dollars (1,95 dollar par action diluée) pour le quatrième trimestre de 2024, avec un chiffre d'affaires de 470,1 millions de dollars. La valeur comptable par action a augmenté à 74,54 dollars, contre 72,95 dollars au troisième trimestre de 2024.
Les points clés du quatrième trimestre incluent : un revenu avant impôt de 129,4 millions de dollars, des acquisitions de prêts totaux de 35,7 milliards de dollars et une croissance du portefeuille de services à 665,8 milliards de dollars. L'entreprise a déclaré un dividende trimestriel de 0,30 dollar par action.
La performance de l'année entière 2024 a montré un revenu net de 311,4 millions de dollars, en hausse par rapport à 144,7 millions de dollars en 2023, avec une production totale de prêts de 116,3 milliards de dollars. L'entreprise a émis 650 millions de dollars de titres seniors non garantis à 6 ans et a augmenté son dividende trimestriel de 50 % par rapport aux 0,20 dollars précédents.
PennyMac Financial Services (PFSI) berichtete für das vierte Quartal 2024 einen Nettogewinn von 104,5 Millionen Dollar (1,95 Dollar je verwässerte Aktie) bei einem Umsatz von 470,1 Millionen Dollar. Der Buchwert pro Aktie stieg von 72,95 Dollar im dritten Quartal 2024 auf 74,54 Dollar.
Zu den wichtigsten Highlights des vierten Quartals gehören: ein Vorsteuergewinn von 129,4 Millionen Dollar, Gesamtlaufwerkskäufe von 35,7 Milliarden Dollar und ein Wachstum des Servicing-Portfolios auf 665,8 Milliarden Dollar. Das Unternehmen erklärte eine quartalsweise Dividende von 0,30 Dollar pro Aktie.
Die Leistung des gesamten Jahres 2024 zeigte einen Nettogewinn von 311,4 Millionen Dollar, ein Anstieg von 144,7 Millionen Dollar im Jahr 2023, mit einer gesamten Produktionsleistung von 116,3 Milliarden Dollar. Das Unternehmen emittierte 650 Millionen Dollar in ungesicherten, vorrangigen Anleihen mit einer Laufzeit von 6 Jahren und erhöhte seine vierteljährliche Dividende um 50 % von zuvor 0,20 Dollar.
- Net income increased to $311.4 million in 2024 from $144.7 million in 2023
- Servicing portfolio grew 10% YoY to $665.8 billion
- Total loan production increased 17% YoY to $116.3 billion
- Quarterly dividend increased 50% to $0.30 per share
- Q4 pretax income rose to $129.4 million from $93.9 million in Q3
- Production segment pretax income decreased to $78.0 million from $129.4 million in Q3
- Consumer direct IRLCs declined 30% from previous quarter
- Broker direct IRLCs decreased 17% from previous quarter
- Net interest expense of $17.2 million in Q4
Insights
PennyMac Financial's Q4 2024 results reveal a company successfully navigating the challenging mortgage landscape, with several notable achievements:
Core Performance Metrics: The
Strategic Positioning: The company's balanced business model shows remarkable adaptability. The servicing segment's strong performance (
Operational Evolution: The renewed mortgage banking services agreement with PMT, effective July 2025, signals a strategic shift in correspondent production dynamics. The planned
Financial Health Indicators: The increase in book value to
These results position PFSI advantageously for 2025, particularly if interest rates moderate and refinancing activity increases. The company's investment in technology and workflow efficiency improvements suggests potential for further operational leverage and market share gains.
PFSI’s Board of Directors declared a fourth quarter cash dividend of
In the fourth quarter, management reassessed its segment definitions. Prior period amounts have been recast to conform those periods' presentation to current period presentation. Non-segment activities are included under "Corporate and other" and include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PennyMac Mortgage Investment Trust (NYSE: PMT).
Fourth Quarter 2024 Highlights
-
Pretax income was
$129.4 million $93.9 million $54.2 million -
Production segment pretax income was
$78.0 million $129.4 million $44.2 million -
Total loan acquisitions and originations, including those fulfilled for PMT, were
$35.7 billion -
Broker direct interest rate lock commitments (IRLCs) were
$4.5 billion -
Consumer direct IRLCs were
$3.7 billion -
Government correspondent IRLCs totaled
$11.1 billion -
Conventional correspondent IRLCs for PFSI’s account totaled
$13.8 billion -
Correspondent acquisitions of conventional conforming and jumbo loans fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) were
$3.5 billion - PMT retained 19 percent of total conventional correspondent loans in the fourth quarter, down from 42 percent in the prior quarter
-
Total loan acquisitions and originations, including those fulfilled for PMT, were
-
Servicing segment pretax income was
$87.3 million $3.3 million $76.6 million -
Pretax income excluding valuation-related changes was
$168.3 million -
Valuation-related changes included:
-
$540.4 million $608.1 million -
Net impact on pretax income related to these items was
$(67.7) million $(0.93)
-
Net impact on pretax income related to these items was
-
$13.3 million
-
-
Servicing portfolio grew to
$665.8 billion
-
Pretax income excluding valuation-related changes was
-
Pretax loss from Corporate and Other was
$35.9 million $38.8 million $175.0 million -
The fourth quarter of 2023 included a non-recurring expense accrual of
$158.4 million
-
The fourth quarter of 2023 included a non-recurring expense accrual of
Full-Year 2024 Highlights
-
Net income of
$311.4 million $144.7 million $260.5 million -
Pretax income of
$401.0 million $183.6 million $342.0 million -
Total net revenue of
$1.6 billion $1.4 billion -
Total loan production of
$116.3 billion -
Servicing portfolio UPB of
$665.8 billion -
Issued
$650 million -
Increased quarterly cash dividend to
$0.30 50% increase from$0.20
“PennyMac Financial delivered strong fourth quarter results, with a 16 percent1 annualized operating return on equity driven by continued strength in our servicing business and a solid contribution from our production segment despite higher mortgage rates,” said Chairman and CEO David Spector. “In total, we acquired or originated
Mr. Spector continued, “Our full year results demonstrate both the ability of our balanced business model to generate operating returns on equity in the mid-teens in periods of higher rates, and also a substantial improvement in operating leverage from the previous year. Looking to 2025 and beyond, I continue to believe PennyMac Financial is best-positioned in the mortgage industry for continued growth and execution regardless of the path of interest rates. Our best-in-class management team has built a platform with significant scale and remains committed to unlocking additional efficiencies through continued investments in workflow and technology. It is for all of these reasons that I am confident in our ability to continue driving strong financial performance in this higher rate environment, bolstered by increases in the origination market in periods when mortgage rates decline.”
1 |
|
See page 18 for a reconciliation of non-GAAP items |
The following table presents the contributions of PennyMac Financial’s segments to pretax income:
| Quarter ended December 31, 2024 | ||||||||||||||||||
| Production | Servicing | Reportable segment total |
Corporate and Other |
Total | ||||||||||||||
| (in thousands) | ||||||||||||||||||
| Revenue: | ||||||||||||||||||
| Net gains on loans held for sale at fair value | $ |
195,070 |
$ |
26,974 |
|
$ |
222,044 |
|
$ |
- |
|
$ |
222,044 |
|
||||
| Loan origination fees |
|
57,824 |
|
- |
|
|
57,824 |
|
|
- |
|
|
57,824 |
|
||||
| Fulfillment fees from PMT |
|
6,356 |
|
- |
|
|
6,356 |
|
|
- |
|
|
6,356 |
|
||||
| Net loan servicing fees |
|
- |
|
189,267 |
|
|
189,267 |
|
|
- |
|
|
189,267 |
|
||||
| Management fees |
|
- |
|
- |
|
|
- |
|
|
7,149 |
|
|
7,149 |
|
||||
| Net interest income (expense): | ||||||||||||||||||
| Interest income |
|
93,766 |
|
116,679 |
|
|
210,445 |
|
|
414 |
|
|
210,859 |
|
||||
| Interest expense |
|
91,982 |
|
136,129 |
|
|
228,111 |
|
|
- |
|
|
228,111 |
|
||||
|
1,784 |
|
(19,450 |
) |
|
(17,666 |
) |
|
414 |
|
|
(17,252 |
) |
|||||
| Other |
|
89 |
|
735 |
|
|
824 |
|
|
3,898 |
|
|
4,722 |
|
||||
| Total net revenue |
|
261,123 |
|
197,526 |
|
|
458,649 |
|
|
11,461 |
|
|
470,110 |
|
||||
| Expenses | ||||||||||||||||||
| Compensation |
|
91,754 |
|
49,958 |
|
|
141,712 |
|
|
31,378 |
|
|
173,090 |
|
||||
| Loan origination |
|
48,046 |
|
- |
|
|
48,046 |
|
|
- |
|
|
48,046 |
|
||||
| Technology |
|
25,743 |
|
10,108 |
|
|
35,851 |
|
|
4,980 |
|
|
40,831 |
|
||||
| Servicing |
|
- |
|
38,088 |
|
|
38,088 |
|
|
- |
|
|
38,088 |
|
||||
| Professional services |
|
3,869 |
|
2,386 |
|
|
6,255 |
|
|
3,732 |
|
|
9,987 |
|
||||
| Occupancy and equipment |
|
3,951 |
|
2,661 |
|
|
6,612 |
|
|
1,561 |
|
|
8,173 |
|
||||
| Marketing and advertising |
|
6,919 |
|
202 |
|
|
7,121 |
|
|
644 |
|
|
7,765 |
|
||||
| Legal settlements |
|
- |
|
2 |
|
|
2 |
|
|
(108 |
) |
|
(106 |
) |
||||
| Other |
|
2,831 |
|
6,823 |
|
|
9,654 |
|
|
5,218 |
|
|
14,872 |
|
||||
| Total expenses |
|
183,113 |
|
110,228 |
|
|
293,341 |
|
|
47,405 |
|
|
340,746 |
|
||||
| Income (loss) before provision for income taxes | $ |
78,010 |
$ |
87,298 |
|
$ |
165,308 |
|
$ |
(35,944 |
) |
$ |
129,364 |
|
||||
Production Segment
The Production segment includes the correspondent acquisition of newly originated government-insured and certain conventional conforming loans for PennyMac Financial’s own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis.
PennyMac Financial’s loan production activity for the quarter totaled
Production segment pretax income was
The components of net gains on loans held for sale are detailed in the following table:
| Quarter ended | |||||||||||
| December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
|||||||||
| (in thousands) | |||||||||||
| Receipt of MSRs | $ |
748,121 |
|
$ |
578,982 |
|
$ |
549,965 |
|
||
| Gains on sale of loans and mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust |
|
2,387 |
|
|
2,506 |
|
|
(290 |
) |
||
| Provision for representations and warranties, net |
|
(1,633 |
) |
|
(589 |
) |
|
(1,002 |
) |
||
| Cash loss, including cash hedging results |
|
(373,307 |
) |
|
(382,148 |
) |
|
(606,160 |
) |
||
| Fair value changes of pipeline, inventory and hedges |
|
(153,524 |
) |
|
58,068 |
|
|
206,252 |
|
||
| Net gains on mortgage loans held for sale | $ |
222,044 |
|
$ |
256,819 |
|
$ |
148,765 |
|
||
| Net gains on mortgage loans held for sale by segment: | |||||||||||
| Production | $ |
195,070 |
|
$ |
235,902 |
|
$ |
124,267 |
|
||
| Servicing | $ |
26,974 |
|
$ |
20,917 |
|
$ |
24,498 |
|
||
PennyMac Financial performs fulfillment services for certain conventional conforming and jumbo loans acquired by PMT from non-affiliates in its correspondent production business. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.
Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled
Under a renewed mortgage banking services agreement with PMT, effective July 1, 2025, correspondent production volumes will initially be acquired by PFSI. PMT will retain the right to purchase up to 100 percent of non-government correspondent loan production.
Net interest income in the fourth quarter totaled
Production segment expenses were
Servicing Segment
The Servicing segment includes income from owned MSRs and subservicing. The total servicing portfolio grew to
The table below details PennyMac Financial’s servicing portfolio UPB:
| December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||||
| (in thousands) | ||||||||
| Prime servicing: | ||||||||
| Owned | ||||||||
| Mortgage servicing rights and liabilities | ||||||||
| Originated | $ |
410,393,342 |
$ |
393,947,146 |
$ |
352,790,614 |
||
| Purchased |
|
15,681,406 |
|
16,104,333 |
|
17,478,397 |
||
|
426,074,748 |
|
410,051,479 |
|
370,269,011 |
|||
| Loans held for sale |
|
8,128,914 |
|
6,366,787 |
|
4,294,689 |
||
|
434,203,662 |
|
416,418,266 |
|
374,563,700 |
|||
| Subserviced for PMT |
|
230,745,995 |
|
231,369,983 |
|
232,643,144 |
||
| Subserviced for |
|
806,584 |
|
257,696 |
|
- |
||
| Total prime servicing |
|
665,756,241 |
|
648,045,945 |
|
607,206,844 |
||
| Special servicing - subserviced for PMT |
|
7,586 |
|
8,340 |
|
9,925 |
||
| Total loans serviced | $ |
665,763,827 |
$ |
648,054,285 |
$ |
607,216,769 |
||
Servicing segment pretax income was
Revenue from net loan servicing fees totaled
The following table presents a breakdown of net loan servicing fees:
Quarter ended |
|||||||||||
| December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
|||||||||
| (in thousands) | |||||||||||
| Loan servicing fees | $ |
472,563 |
|
$ |
462,037 |
|
$ |
402,484 |
|
||
| Changes in fair value of MSRs and MSLs resulting from: | |||||||||||
| Realization of cash flows |
|
(215,590 |
) |
|
(225,836 |
) |
|
(164,255 |
) |
||
| Change in fair value inputs |
|
540,406 |
|
|
(402,422 |
) |
|
(370,705 |
) |
||
| Hedging (losses) gains |
|
(608,112 |
) |
|
242,051 |
|
|
294,787 |
|
||
| Net change in fair value of MSRs and MSLs |
|
(283,296 |
) |
|
(386,207 |
) |
|
(240,173 |
) |
||
| Net loan servicing fees | $ |
189,267 |
|
$ |
75,830 |
|
$ |
162,311 |
|
||
Servicing segment revenue included
Net interest expense totaled
Servicing segment expenses totaled
Corporate and Other
Corporate and Other items include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PMT. PennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation.
Pretax loss for Corporate and Other was
Revenues from Corporate and Other were
Expenses were
Net assets under management were
The following table presents a breakdown of management fees:
| Quarter ended | ||||||||
| December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||||
| (in thousands) | ||||||||
| Management fees: | ||||||||
| Base | $ |
7,149 |
$ |
7,153 |
$ |
7,252 |
||
| Performance incentive |
|
- |
|
- |
|
- |
||
| Total management fees | $ |
7,149 |
$ |
7,153 |
$ |
7,252 |
||
| Net assets of PennyMac Mortgage Investment Trust | $ |
1,938,500 |
$ |
1,936,787 |
$ |
1,957,090 |
||
Consolidated Expenses
Total expenses were
Taxes
PFSI recorded a provision for tax expense of
Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Thursday, January 30, 2025. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.
About PennyMac Financial Services, Inc.
PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in real estate values, housing prices and housing sales; changes in macroeconomic, consumer and real estate market conditions; the continually changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by the Consumer Financial Protection Bureau and its enforcement of these regulations; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; our dependence on
The press release contains financial information calculated other than in accordance with
The following table presents the contributions of PennyMac Financial’s segments to pretax income in the prior quarter:
| Quarter ended September 30, 2024 | ||||||||||||||||||
| Production | Servicing | Reportable segment total |
Corporate and other |
Total | ||||||||||||||
| (in thousands) | ||||||||||||||||||
| Revenue: | ||||||||||||||||||
| Net gains on loans held for sale at fair value | $ |
235,902 |
|
$ |
20,917 |
|
$ |
256,819 |
|
$ |
- |
|
$ |
256,819 |
||||
| Loan origination fees |
|
49,430 |
|
|
- |
|
|
49,430 |
|
|
- |
|
|
49,430 |
||||
| Fulfillment fees from PMT |
|
11,492 |
|
|
- |
|
|
11,492 |
|
|
- |
|
|
11,492 |
||||
| Net loan servicing fees |
|
- |
|
|
75,830 |
|
|
75,830 |
|
|
- |
|
|
75,830 |
||||
| Management fees |
|
- |
|
|
- |
|
|
- |
|
|
7,153 |
|
|
7,153 |
||||
| Net interest (expense) income: | ||||||||||||||||||
| Interest income |
|
79,427 |
|
|
145,567 |
|
|
224,994 |
|
|
476 |
|
|
225,470 |
||||
| Interest expense |
|
81,496 |
|
|
136,101 |
|
|
217,597 |
|
|
- |
|
|
217,597 |
||||
|
(2,069 |
) |
|
9,466 |
|
|
7,397 |
|
|
476 |
|
|
7,873 |
|||||
| Other |
|
172 |
|
|
(269 |
) |
|
(97 |
) |
|
3,334 |
|
|
3,237 |
||||
| Total net revenue |
|
294,927 |
|
|
105,944 |
|
|
400,871 |
|
|
10,963 |
|
|
411,834 |
||||
| Expenses | ||||||||||||||||||
| Compensation |
|
82,991 |
|
|
52,553 |
|
|
135,544 |
|
|
35,772 |
|
|
171,316 |
||||
| Loan origination |
|
45,208 |
|
|
- |
|
|
45,208 |
|
|
- |
|
|
45,208 |
||||
| Technology |
|
24,115 |
|
|
9,866 |
|
|
33,981 |
|
|
3,078 |
|
|
37,059 |
||||
| Servicing |
|
- |
|
|
28,885 |
|
|
28,885 |
|
|
- |
|
|
28,885 |
||||
| Professional services |
|
2,853 |
|
|
1,575 |
|
|
4,428 |
|
|
4,911 |
|
|
9,339 |
||||
| Occupancy and equipment |
|
3,840 |
|
|
2,823 |
|
|
6,663 |
|
|
1,493 |
|
|
8,156 |
||||
| Marketing and advertising |
|
4,830 |
|
|
28 |
|
|
4,858 |
|
|
230 |
|
|
5,088 |
||||
| Legal settlements |
|
- |
|
|
- |
|
|
- |
|
|
108 |
|
|
108 |
||||
| Other |
|
1,716 |
|
|
6,866 |
|
|
8,582 |
|
|
4,168 |
|
|
12,750 |
||||
| Total expenses |
|
165,553 |
|
|
102,596 |
|
|
268,149 |
|
|
49,760 |
|
|
317,909 |
||||
| Income (loss) before provision for income taxes | $ |
129,374 |
|
$ |
3,348 |
|
$ |
132,722 |
|
$ |
(38,797 |
) |
$ |
93,925 |
||||
The following table presents the contributions of PennyMac Financial’s segments to pretax loss in the fourth quarter of 2023:
| Quarter ended December 31, 2023 | ||||||||||||||||||
| Production | Servicing | Reportable segment total |
Corporate and other |
Total | ||||||||||||||
| Revenue: | ||||||||||||||||||
| Net gains on loans held for sale at fair value | $ |
124,267 |
$ |
24,498 |
|
$ |
148,765 |
|
$ |
- |
|
$ |
148,765 |
|
||||
| Loan origination fees |
|
38,059 |
|
- |
|
|
38,059 |
|
|
- |
|
|
38,059 |
|
||||
| Fulfillment fees from PMT |
|
4,931 |
|
- |
|
|
4,931 |
|
|
- |
|
|
4,931 |
|
||||
| Net loan servicing fees |
|
- |
|
162,311 |
|
|
162,311 |
|
|
- |
|
|
162,311 |
|
||||
| Management fees |
|
- |
|
- |
|
|
- |
|
|
7,252 |
|
|
7,252 |
|
||||
| Net interest income (expense): | ||||||||||||||||||
| Interest income |
|
72,553 |
|
91,885 |
|
|
164,438 |
|
|
504 |
|
|
164,942 |
|
||||
| Interest expense |
|
65,199 |
|
105,302 |
|
|
170,501 |
|
|
- |
|
|
170,501 |
|
||||
|
7,354 |
|
(13,417 |
) |
|
(6,063 |
) |
|
504 |
|
|
(5,559 |
) |
|||||
| Other |
|
73 |
|
2,555 |
|
|
2,628 |
|
|
3,552 |
|
|
6,180 |
|
||||
| Total net revenue |
|
174,684 |
|
175,947 |
|
|
350,631 |
|
|
11,308 |
|
|
361,939 |
|
||||
| Expenses | ||||||||||||||||||
| Compensation |
|
67,785 |
|
50,917 |
|
|
118,702 |
|
|
16,436 |
|
|
135,138 |
|
||||
| Loan origination |
|
26,879 |
|
- |
|
|
26,879 |
|
|
- |
|
|
26,879 |
|
||||
| Technology |
|
22,901 |
|
10,099 |
|
|
33,000 |
|
|
(130 |
) |
|
32,870 |
|
||||
| Servicing |
|
- |
|
28,907 |
|
|
28,907 |
|
|
- |
|
|
28,907 |
|
||||
| Professional services |
|
2,521 |
|
1,947 |
|
|
4,468 |
|
|
5,216 |
|
|
9,684 |
|
||||
| Occupancy and equipment |
|
4,230 |
|
2,716 |
|
|
6,946 |
|
|
1,826 |
|
|
8,772 |
|
||||
| Marketing and advertising |
|
3,984 |
|
29 |
|
|
4,013 |
|
|
167 |
|
|
4,180 |
|
||||
| Legal settlements |
|
853 |
|
- |
|
|
853 |
|
|
159,172 |
|
|
160,025 |
|
||||
| Other |
|
1,331 |
|
4,718 |
|
|
6,049 |
|
|
3,665 |
|
|
9,714 |
|
||||
| Total expenses |
|
130,484 |
|
99,333 |
|
|
229,817 |
|
|
186,352 |
|
|
416,169 |
|
||||
| Income (loss) before provision for income taxes | $ |
44,200 |
$ |
76,614 |
|
$ |
120,814 |
|
$ |
(175,044 |
) |
$ |
(54,230 |
) |
||||
PENNYMAC FINANCIAL SERVICES, INC.
|
||||||||
| December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||||
| (in thousands, except share amounts) | ||||||||
| ASSETS | ||||||||
| Cash | $ |
238,482 |
$ |
145,814 |
$ |
938,371 |
||
| Short-term investment at fair value |
|
420,553 |
|
667,934 |
|
10,268 |
||
| Principal-only stripped mortgage-backed securities at fair value |
|
825,865 |
|
960,267 |
|
- |
||
| Loans held for sale at fair value |
|
8,217,468 |
|
6,565,704 |
|
4,420,691 |
||
| Derivative assets |
|
113,076 |
|
190,612 |
|
179,079 |
||
| Servicing advances, net |
|
568,512 |
|
400,764 |
|
694,038 |
||
| Mortgage servicing rights at fair value |
|
8,744,528 |
|
7,752,292 |
|
7,099,348 |
||
| Investment in PennyMac Mortgage Investment Trust at fair value |
|
944 |
|
1,070 |
|
1,121 |
||
| Receivable from PennyMac Mortgage Investment Trust |
|
30,206 |
|
32,603 |
|
29,262 |
||
| Loans eligible for repurchase |
|
6,157,172 |
|
5,512,289 |
|
4,889,925 |
||
| Other |
|
770,081 |
|
642,189 |
|
582,460 |
||
| Total assets | $ |
26,086,887 |
$ |
22,871,538 |
$ |
18,844,563 |
||
| LIABILITIES | ||||||||
| Assets sold under agreements to repurchase | $ |
8,685,207 |
$ |
6,600,997 |
$ |
3,763,956 |
||
| Mortgage loan participation purchase and sale agreements |
|
496,512 |
|
517,527 |
|
446,054 |
||
| Notes payable secured by mortgage servicing assets |
|
2,048,972 |
|
1,723,632 |
|
1,873,415 |
||
| Unsecured senior notes |
|
3,164,032 |
|
3,162,239 |
|
2,519,651 |
||
| Derivative liabilities |
|
40,900 |
|
41,471 |
|
53,275 |
||
| Mortgage servicing liabilities at fair value |
|
1,683 |
|
1,718 |
|
1,805 |
||
| Accounts payable and accrued expenses |
|
354,414 |
|
331,512 |
|
449,896 |
||
| Payable to PennyMac Mortgage Investment Trust |
|
122,317 |
|
81,040 |
|
208,210 |
||
| Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement |
|
25,898 |
|
26,099 |
|
26,099 |
||
| Income taxes payable |
|
1,131,000 |
|
1,105,550 |
|
1,042,886 |
||
| Liability for loans eligible for repurchase |
|
6,157,172 |
|
5,512,289 |
|
4,889,925 |
||
| Liability for losses under representations and warranties |
|
29,129 |
|
28,286 |
|
30,788 |
||
| Total liabilities |
|
22,257,236 |
|
19,132,360 |
|
15,305,960 |
||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock—authorized 200,000,000 shares of |
|
5 |
|
5 |
|
5 |
||
| Additional paid-in capital |
|
56,072 |
|
54,415 |
|
24,287 |
||
| Retained earnings |
|
3,773,574 |
|
3,684,758 |
|
3,514,311 |
||
| Total stockholders' equity |
|
3,829,651 |
|
3,739,178 |
|
3,538,603 |
||
| Total liabilities and stockholders’ equity | $ |
26,086,887 |
$ |
22,871,538 |
$ |
18,844,563 |
||
PENNYMAC FINANCIAL SERVICES, INC.
|
|||||||||||
| Quarter ended | |||||||||||
| December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
|||||||||
| (in thousands, except per share amounts) | |||||||||||
| Revenues | |||||||||||
| Net gains on loans held for sale at fair value | $ |
222,044 |
|
$ |
256,819 |
|
$ |
148,765 |
|
||
| Loan origination fees |
|
57,824 |
|
|
49,430 |
|
|
38,059 |
|
||
| Fulfillment fees from PennyMac Mortgage Investment Trust |
|
6,356 |
|
|
11,492 |
|
|
4,931 |
|
||
| Net loan servicing fees: | |||||||||||
| Loan servicing fees |
|
472,563 |
|
|
462,037 |
|
|
402,484 |
|
||
| Change in fair value of mortgage servicing rights and mortgage servicing liabilities |
|
324,816 |
|
|
(628,258 |
) |
|
(534,960 |
) |
||
| Mortgage servicing rights hedging results |
|
(608,112 |
) |
|
242,051 |
|
|
294,787 |
|
||
| Net loan servicing fees |
|
189,267 |
|
|
75,830 |
|
|
162,311 |
|
||
| Net interest (expense) income : | |||||||||||
| Interest income |
|
210,859 |
|
|
225,470 |
|
|
164,942 |
|
||
| Interest expense |
|
228,111 |
|
|
217,597 |
|
|
170,501 |
|
||
|
(17,252 |
) |
|
7,873 |
|
|
(5,559 |
) |
|||
| Management fees from PennyMac Mortgage Investment Trust |
|
7,149 |
|
|
7,153 |
|
|
7,252 |
|
||
| Other |
|
4,722 |
|
|
3,237 |
|
|
6,180 |
|
||
| Total net revenues |
|
470,110 |
|
|
411,834 |
|
|
361,939 |
|
||
| Expenses | |||||||||||
| Compensation |
|
173,090 |
|
|
171,316 |
|
|
135,138 |
|
||
| Loan origination |
|
48,046 |
|
|
45,208 |
|
|
26,879 |
|
||
| Technology |
|
40,831 |
|
|
37,059 |
|
|
32,870 |
|
||
| Servicing |
|
38,088 |
|
|
28,885 |
|
|
28,907 |
|
||
| Professional services |
|
9,987 |
|
|
9,339 |
|
|
9,684 |
|
||
| Occupancy and equipment |
|
8,173 |
|
|
8,156 |
|
|
8,772 |
|
||
| Marketing and advertising |
|
7,765 |
|
|
5,088 |
|
|
4,180 |
|
||
| Legal settlements |
|
(106 |
) |
|
108 |
|
|
160,025 |
|
||
| Other |
|
14,872 |
|
|
12,750 |
|
|
9,714 |
|
||
| Total expenses |
|
340,746 |
|
|
317,909 |
|
|
416,169 |
|
||
| Income before provision for income taxes |
|
129,364 |
|
|
93,925 |
|
|
(54,230 |
) |
||
| Provision for (benefit from) income taxes |
|
24,875 |
|
|
24,557 |
|
|
(17,388 |
) |
||
| Net income (loss) | $ |
104,489 |
|
$ |
69,368 |
|
$ |
(36,842 |
) |
||
| Earnings (loss) per share | |||||||||||
| Basic | $ |
2.04 |
|
$ |
1.36 |
|
$ |
(0.74 |
) |
||
| Diluted | $ |
1.95 |
|
$ |
1.30 |
|
$ |
(0.74 |
) |
||
| Weighted-average common shares outstanding | |||||||||||
| Basic |
|
51,274 |
|
|
51,180 |
|
|
49,987 |
|
||
| Diluted |
|
53,576 |
|
|
53,495 |
|
|
49,987 |
|
||
| Dividend declared per share | $ |
0.30 |
|
$ |
0.30 |
|
$ |
0.20 |
|
||
PENNYMAC FINANCIAL SERVICES, INC.
|
|||||||||||
| Year ended December 31, | |||||||||||
2024 |
2023 |
2022 |
|||||||||
| (in thousands, except earnings per share) | |||||||||||
| Revenue | |||||||||||
| Net gains on loans held for sale at fair value | $ |
817,368 |
|
$ |
545,943 |
|
$ |
791,633 |
|
||
| Loan origination fees |
|
185,700 |
|
|
146,118 |
|
|
169,859 |
|
||
| Fulfillment fees from PennyMac Mortgage Investment Trust |
|
26,291 |
|
|
27,826 |
|
|
67,991 |
|
||
| Net loan servicing fees: | |||||||||||
| Loan servicing fees: | |||||||||||
| From non-affiliates |
|
1,529,452 |
|
|
1,268,650 |
|
|
1,054,828 |
|
||
| From PennyMac Mortgage Investment Trust |
|
83,252 |
|
|
81,347 |
|
|
81,915 |
|
||
| Other fees |
|
186,776 |
|
|
134,949 |
|
|
91,894 |
|
||
|
1,799,480 |
|
|
1,484,946 |
|
|
1,228,637 |
|
|||
| Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread financing |
|
(433,342 |
) |
|
(605,568 |
) |
|
354,176 |
|
||
| Hedging results |
|
(832,483 |
) |
|
(236,778 |
) |
|
(631,484 |
) |
||
| Net loan servicing fees |
|
533,655 |
|
|
642,600 |
|
|
951,329 |
|
||
| Net interest expense: | |||||||||||
| Interest income |
|
793,566 |
|
|
632,924 |
|
|
294,062 |
|
||
| Interest expense |
|
819,348 |
|
|
637,777 |
|
|
335,427 |
|
||
|
(25,782 |
) |
|
(4,853 |
) |
|
(41,365 |
) |
|||
| Management fees from PennyMac Mortgage Investment Trust |
|
28,623 |
|
|
28,762 |
|
|
31,065 |
|
||
| Other |
|
27,876 |
|
|
15,260 |
|
|
15,243 |
|
||
| Total net revenue |
|
1,593,731 |
|
|
1,401,656 |
|
|
1,985,755 |
|
||
| Expenses | |||||||||||
| Compensation |
|
632,738 |
|
|
576,964 |
|
|
735,231 |
|
||
| Technology |
|
164,092 |
|
|
143,152 |
|
|
139,950 |
|
||
| Loan origination |
|
149,547 |
|
|
114,500 |
|
|
173,622 |
|
||
| Servicing |
|
105,997 |
|
|
69,433 |
|
|
59,628 |
|
||
| Professional services |
|
37,992 |
|
|
60,521 |
|
|
73,270 |
|
||
| Occupancy and equipment |
|
32,898 |
|
|
36,558 |
|
|
40,124 |
|
||
| Marketing and advertising |
|
21,969 |
|
|
17,631 |
|
|
46,762 |
|
||
| Legal settlements |
|
1,591 |
|
|
162,770 |
|
|
4,649 |
|
||
| Other |
|
45,881 |
|
|
36,496 |
|
|
47,272 |
|
||
| Total expenses |
|
1,192,705 |
|
|
1,218,025 |
|
|
1,320,508 |
|
||
| Income before provision for income taxes |
|
401,026 |
|
|
183,631 |
|
|
665,247 |
|
||
| Provision for income taxes |
|
89,603 |
|
|
38,975 |
|
|
189,740 |
|
||
| Net income | $ |
311,423 |
|
$ |
144,656 |
|
$ |
475,507 |
|
||
| Earnings per share | |||||||||||
| Basic | $ |
6.11 |
|
$ |
2.89 |
|
$ |
8.96 |
|
||
| Diluted | $ |
5.84 |
|
$ |
2.74 |
|
$ |
8.50 |
|
||
| Weighted average shares outstanding | |||||||||||
| Basic |
|
50,990 |
|
|
49,978 |
|
|
53,065 |
|
||
| Diluted |
|
53,356 |
|
|
52,733 |
|
|
55,950 |
|
||
PENNYMAC FINANCIAL SERVICES, INC. RECONCILIATION OF
|
|||
| Quarter Ended | |||
| December 31, 2024 | |||
| (in thousands, except annualized operating return on equity) |
|||
| Net income | $ |
104,489 |
|
| Increase in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model |
|
540,406 |
|
| Hedging losses associated with MSRs |
|
(608,112 |
) |
| Tax impacts of adjustments(1) |
|
18,078 |
|
| Operating net income | $ |
154,117 |
|
| Average stockholders' equity | $ |
3,779,247 |
|
| Annualized operating return on equity |
|
16 |
% |
(1) |
|
Assumes a tax rate of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130438252/en/
Media
Kristyn Clark
mediarelations@pennymac.com
805.225.8224
Investors
Kevin Chamberlain
Isaac Garden
PFSI_IR@pennymac.com
818.224.7028
Source: PennyMac Financial Services, Inc.
FAQ
What was PFSI's net income for Q4 2024?
How much did PFSI's servicing portfolio grow in 2024?
What is PFSI's new quarterly dividend amount for Q4 2024?
How did PFSI's loan production perform in 2024 compared to 2023?
What was PFSI's book value per share at the end of Q4 2024?
