PennyMac Financial Services, Inc. Reports Third Quarter 2024 Results
PennyMac Financial Services, Inc. (NYSE: PFSI) reported net income of $69.4 million for Q3 2024, or $1.30 per share on a diluted basis, with revenue of $411.8 million. Key highlights include:
- Book value per share increased to $72.95 from $71.76 in Q2 2024
- Declared a Q3 cash dividend of $0.30 per share
- Pretax income was $93.9 million, down from previous quarters
- Production segment pretax income increased to $107.9 million
- Total loan acquisitions and originations reached $31.7 billion in UPB
- Servicing portfolio grew to $648.1 billion in UPB
- Investment Management segment pretax income was $0.7 million
The company reported strong performance in its production segment, with consumer direct and broker direct channels showing significant growth. However, the servicing segment experienced a pretax loss of $14.6 million due to MSR fair value declines.
PennyMac Financial Services, Inc. (NYSE: PFSI) ha riportato un reddito netto di $69,4 milioni per il terzo trimestre del 2024, pari a $1,30 per azione su base diluita, con un fatturato di $411,8 milioni. I principali punti salienti includono:
- Il valore contabile per azione è aumentato a $72,95 da $71,76 nel secondo trimestre del 2024
- Dichiarato un dividendo in contante per il terzo trimestre di $0,30 per azione
- Il reddito ante imposte è stato di $93,9 milioni, in calo rispetto ai trimestri precedenti
- Il reddito ante imposte del segmento produzione è aumentato a $107,9 milioni
- Le acquisizioni e le origini dei prestiti totali hanno raggiunto $31,7 miliardi in UPB
- Il portafoglio di servicing è cresciuto a $648,1 miliardi in UPB
- Il reddito ante imposte del segmento gestione degli investimenti è stato di $0,7 milioni
L'azienda ha riportato una forte performance nel suo segmento di produzione, con canali diretti ai consumatori e broker che mostrano una crescita significativa. Tuttavia, il segmento di servicing ha registrato una perdita ante imposte di $14,6 milioni a causa dei cali del valore equo delle MSR.
PennyMac Financial Services, Inc. (NYSE: PFSI) reportó un ingreso neto de $69.4 millones para el tercer trimestre de 2024, o $1.30 por acción en base diluida, con ingresos de $411.8 millones. Los aspectos más destacados incluyen:
- El valor contable por acción aumentó a $72.95 desde $71.76 en el segundo trimestre de 2024
- Se declaró un dividendo en efectivo por el tercer trimestre de $0.30 por acción
- El ingreso antes de impuestos fue de $93.9 millones, en disminución respecto a los trimestres anteriores
- El ingreso antes de impuestos del segmento de producción aumentó a $107.9 millones
- Las adquisiciones y originaciones de préstamos totales alcanzaron $31.7 mil millones en UPB
- El portafolio de servicios creció a $648.1 mil millones en UPB
- El ingreso antes de impuestos del segmento de gestión de inversiones fue de $0.7 millones
La empresa reportó un sólido desempeño en su segmento de producción, con canales directos al consumidor y directos al corredor mostrando un crecimiento significativo. Sin embargo, el segmento de servicios experimentó una pérdida antes de impuestos de $14.6 millones debido a las caídas en el valor razonable de las MSR.
PennyMac Financial Services, Inc. (NYSE: PFSI)는 2024년도 3분기 동안 순이익이 6,940만 달러와 주당 1.30달러를 보고했으며, 수익은 4억 1,180만 달러에 달했습니다. 주요 사항은 다음과 같습니다:
- 주당 장부가치가 71.76달러에서 72.95달러로 증가했습니다.
- 3분기 현금 배당금으로 주당 0.30달러 선언
- 세전 수익은 9390만 달러로 전 분기에 비해 감소
- 생산 부문 세전 수익은 1억 790만 달러로 증가
- 총 대출 인수 및 기원이 UPB 기준으로 317억 달러에 도달
- 서비스 포트폴리오는 UPB 기준으로 6,481억 달러로 성장
- 투자 관리 부문 세전 수익은 70만 달러입니다.
회사는 소비자 직접 및 중개인 직접 채널에서 중요한 성장을 보이며 생산 부문에서 강력한 성과를 보고했습니다. 그러나 서비스 부문은 MSR 공정 가치 하락으로 인해 세전 손실이 1,460만 달러에 달했습니다.
PennyMac Financial Services, Inc. (NYSE: PFSI) a annoncé un revenu net de 69,4 millions de dollars pour le troisième trimestre 2024, soit 1,30 dollar par action sur une base diluée, avec un chiffre d'affaires de 411,8 millions de dollars. Les principaux points à retenir incluent :
- La valeur comptable par action a augmenté à 72,95 dollars contre 71,76 dollars au deuxième trimestre 2024
- Un dividende en espèces de 0,30 dollar par action pour le troisième trimestre a été déclaré
- Le revenu avant impôts était de 93,9 millions de dollars, en baisse par rapport aux trimestres précédents
- Le revenu avant impôts du segment de production a augmenté à 107,9 millions de dollars
- Les acquisitions et origines de prêts totales ont atteint 31,7 milliards de dollars en UPB
- Le portefeuille de services a crû à 648,1 milliards de dollars en UPB
- Le revenu avant impôts du segment de gestion d'investissement était de 0,7 million de dollars
L'entreprise a rapporté une performance solide dans son segment de production, les canaux directs aux consommateurs et aux courtiers montrant une croissance significative. Cependant, le segment de services a enregistré une perte avant impôts de 14,6 millions de dollars en raison de baisses de valeur des MSR.
PennyMac Financial Services, Inc. (NYSE: PFSI) berichtete über netto Einkünfte von 69,4 Millionen Dollar für das 3. Quartal 2024, was 1,30 Dollar pro Aktie auf verwässerter Basis entspricht, bei einem Umsatz von 411,8 Millionen Dollar. Wichtige Höhepunkte umfassen:
- Der Buchwert pro Aktie stieg von 71,76 Dollar im 2. Quartal 2024 auf 72,95 Dollar
- Eine Bardividende von 0,30 Dollar pro Aktie für das 3. Quartal erklärt
- Das Ergebnis vor Steuern betrug 93,9 Millionen Dollar, ein Rückgang im Vergleich zu den Vorquartalen
- Das Ergebnis vor Steuern im Produktionssegment stieg auf 107,9 Millionen Dollar
- Die gesamten Kreditakquisitionen und -originierungen erreichten 31,7 Milliarden Dollar in UPB
- Das Servicing-Portfolio wuchs auf 648,1 Milliarden Dollar in UPB
- Das Ergebnis vor Steuern im Bereich Investment Management betrug 0,7 Millionen Dollar
Das Unternehmen berichtete von einer starken Leistung im Produktionssegment, wobei die direkten Verbraucher- und Brokerkanäle signifikantes Wachstum zeigten. Das Servicing-Segment hingegen verzeichnete einen Verlust vor Steuern von 14,6 Millionen Dollar aufgrund von Rückgängen im fairen Wert der MSR.
- Production segment pretax income increased to $107.9 million, up from $41.3 million in the prior quarter
- Total loan acquisitions and originations reached $31.7 billion in UPB, up 17% from the prior quarter
- Servicing portfolio grew to $648.1 billion in UPB, up 2% from Q2 2024 and 10% year-over-year
- Book value per share increased to $72.95 from $71.76 in Q2 2024
- Declared a Q3 cash dividend of $0.30 per share
- Overall pretax income decreased to $93.9 million, down from $133.9 million in the prior quarter
- Servicing segment reported a pretax loss of $14.6 million, compared to pretax income of $88.5 million in the prior quarter
- MSR fair value declines of $402.4 million, partially offset by $242.1 million in hedging gains
- Investment Management segment pretax income decreased to $0.7 million from $4.0 million in the prior quarter
Insights
PennyMac Financial Services (PFSI) reported a solid Q3 2024 with net income of
- Book value per share increased to
$72.95 from$71.76 in Q2 2024 - Production segment pretax income surged to
$107.9 million , up from$41.3 million in Q2 - Total loan acquisitions and originations reached
$31.7 billion in UPB, up17% from Q2 - Servicing portfolio grew to
$648.1 billion in UPB, up2% from Q2 and10% YoY
The company's production segment benefited from lower mortgage rates, driving refinancing activity. However, the servicing segment reported a pretax loss of
PFSI's Q3 results reflect the company's adaptability in a shifting mortgage market. The surge in production segment income, driven by increased refinancing activity, showcases PFSI's ability to capitalize on lower interest rates. This is particularly evident in the consumer direct channel, where IRLCs grew by
The servicing portfolio's continued growth to nearly
PFSI's technological investments and operational enhancements have positioned it well to handle increased loan volumes efficiently. The company's projection of high-teens to low-twenties annualized operating ROE suggests confidence in its business model and market position going forward.
PFSI’s Board of Directors declared a third quarter cash dividend of
Third Quarter 2024 Highlights
-
Pretax income was
, down from$93.9 million in the prior quarter and$133.9 million in the third quarter of 2023$126.8 million -
Production segment pretax income was
, up from$107.9 million in the prior quarter and$41.3 million in the third quarter of 2023$25.2 million -
Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were
in unpaid principal balance (UPB), up 17 percent from the prior quarter and 26 percent from the third quarter of 2023$31.7 billion -
Broker direct interest rate lock commitments (IRLCs) were
in UPB, up 24 percent from the prior quarter and 78 percent from the third quarter of 2023$5.3 billion -
Consumer direct IRLCs were
in UPB, up 93 percent from the prior quarter and 206 percent from the third quarter of 2023$5.2 billion -
Government correspondent IRLCs totaled
in UPB, up 12 percent from the prior quarter and 24 percent from the third quarter of 2023$12.4 billion -
Conventional correspondent IRLCs for PFSI’s account totaled
in UPB, down 17 percent from the prior quarter and 20 percent from the third quarter of 2023 as PMT retained a higher percentage of its conventional correspondent production volumes$8.2 billion -
Correspondent acquisitions of conventional conforming and jumbo loans fulfilled for PMT were
in UPB, up 167 percent from the prior quarter and 116 percent from the third quarter of 2023$5.9 billion
-
Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were
-
Servicing segment pretax loss was
, compared to pretax income of$14.6 million in the prior quarter and$88.5 million in the third quarter of 2023$101.2 million -
Pretax income excluding valuation-related items and non-recurring items was
, up from$151.4 million in the prior quarter$149.0 million -
Valuation-related items included:
-
in mortgage servicing rights (MSR) fair value declines, before recognition of realization of cash flows, partially offset by$402.4 million in hedging gains$242.1 million -
Net impact on pretax income related to these items was
, or$(160.4) million in diluted earnings per share$(2.19)
-
Net impact on pretax income related to these items was
-
provision for losses on active loans$5.7 million
-
-
Servicing portfolio grew to
in UPB, up 2 percent from June 30, 2024, and 10 percent from September 30, 2023 driven by production volumes which more than offset prepayment activity$648.1 billion
-
Pretax income excluding valuation-related items and non-recurring items was
-
Investment Management segment pretax income was
, down from$0.7 million in the prior quarter and up from$4.0 million in the third quarter of 2023$0.4 million -
Net assets under management (AUM) were
, essentially unchanged from June 30, 2024 and September 30, 2023$1.9 billion
-
Net assets under management (AUM) were
“PennyMac Financial reported outstanding results in the third quarter, with an annualized operating return on equity of 20 percent,” said Chairman and CEO David Spector. “Our production segment pretax income nearly tripled from last quarter as lower mortgage rates provided us the opportunity to help many customers in our servicing portfolio lower their monthly mortgage payments through a refinance. At the same time, our servicing portfolio – now near
Mr. Spector continued, “We have built an operating platform that we believe is unmatched in the mortgage industry, able to handle large, growing volumes of loans at the highest quality standards while also delivering strong performance across various market environments. Our ability to swiftly react to the increased opportunity in the loan production market reflects our significant and ongoing investments in technology, the operational enhancements we have made, and ultimately the scale we have achieved. In this period of interest rate volatility, we expect to continue delivering strong financial results with annualized operating returns on equity in the high-teens to low-twenties, anchored by the continued growth of our servicing portfolio and low-cost structure.”
The following table presents the contributions of PennyMac Financial’s segments to pretax income:
Quarter ended September 30, 2024 | ||||||||||||||||
Mortgage Banking | Investment Management |
|||||||||||||||
Production | Servicing | Total | 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 |
|
79,386 |
|
|
145,985 |
|
|
225,371 |
|
99 |
|
225,470 |
||||
Interest expense |
|
81,496 |
|
|
136,101 |
|
|
217,597 |
|
- |
|
217,597 |
||||
|
(2,110 |
) |
|
9,884 |
|
|
7,774 |
|
99 |
|
7,873 |
|||||
Other |
|
625 |
|
|
512 |
|
|
1,137 |
|
2,100 |
|
3,237 |
||||
Total net revenue |
|
295,339 |
|
|
107,143 |
|
|
402,482 |
|
9,352 |
|
411,834 |
||||
Expenses |
|
187,486 |
|
|
121,765 |
|
|
309,251 |
|
8,658 |
|
317,909 |
||||
Income (loss) before provision for income taxes | $ |
107,853 |
|
$ |
(14,622 |
) |
$ |
93,231 |
$ |
694 |
$ |
93,925 |
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 | |||||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||||
(in thousands) | |||||||||||
Receipt of MSRs | $ |
578,982 |
|
$ |
541,207 |
|
$ |
450,936 |
|
||
Gain on sale of loans and mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust |
|
2,506 |
|
|
(473 |
) |
|
(500 |
) |
||
Provision for representations and warranties, net |
|
(589 |
) |
|
(53 |
) |
|
(1,459 |
) |
||
Cash loss, including cash hedging results |
|
(382,148 |
) |
|
(321,270 |
) |
|
(251,245 |
) |
||
Fair value changes of pipeline, inventory and hedges |
|
58,068 |
|
|
(43,347 |
) |
|
(46,358 |
) |
||
Net gains on mortgage loans held for sale | $ |
256,819 |
|
$ |
176,064 |
|
$ |
151,374 |
|
||
Net gains on mortgage loans held for sale by segment: | |||||||||||
Production | $ |
235,902 |
|
$ |
154,317 |
|
$ |
127,821 |
|
||
Servicing | $ |
20,917 |
|
$ |
21,747 |
|
$ |
23,553 |
|
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
Net interest expense in the third quarter was
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:
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||
(in thousands) | ||||||||
Prime servicing: | ||||||||
Owned | ||||||||
Mortgage servicing rights and liabilities | ||||||||
Originated | $ |
393,947,146 |
$ |
379,882,952 |
$ |
333,372,910 |
||
Purchased |
|
16,104,333 |
|
16,568,065 |
|
17,924,005 |
||
|
410,051,479 |
|
396,451,017 |
|
351,296,915 |
|||
Loans held for sale |
|
6,366,787 |
|
6,108,082 |
|
5,181,866 |
||
|
416,418,266 |
|
402,559,099 |
|
356,478,781 |
|||
Subserviced for PMT |
|
231,369,983 |
|
230,170,703 |
|
232,903,327 |
||
Subserviced for |
|
257,696 |
|
- |
|
- |
||
Total prime servicing |
|
648,045,945 |
|
632,729,802 |
|
589,382,108 |
||
Special servicing - subserviced for PMT |
|
8,340 |
|
8,810 |
|
10,780 |
||
Total loans serviced | $ |
648,054,285 |
$ |
632,738,612 |
$ |
589,392,888 |
Servicing segment pretax loss was
Revenue from net loan servicing fees totaled
The following table presents a breakdown of net loan servicing fees:
Quarter ended | ||||||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||||||
(in thousands) | ||||||||||||
Loan servicing fees | $ |
462,037 |
|
$ |
440,696 |
|
$ |
387,934 |
|
|||
Changes in fair value of MSRs and MSLs resulting from: | ||||||||||||
Realization of cash flows |
|
(225,836 |
) |
|
(200,740 |
) |
|
(177,775 |
) |
|||
Change in fair value inputs |
|
(402,422 |
) |
|
99,425 |
|
|
398,871 |
|
|||
Hedging gains (losses) |
|
242,051 |
|
|
(171,777 |
) |
|
(423,656 |
) |
|||
Net change in fair value of MSRs and MSLs |
|
(386,207 |
) |
|
(273,092 |
) |
|
(202,560 |
) |
|||
Net loan servicing fees | $ |
75,830 |
|
$ |
167,604 |
|
$ |
185,374 |
|
Servicing segment revenue included
Net interest income totaled
Servicing segment expenses totaled
Investment Management Segment
PennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation. Net AUM were
Pretax income for the Investment Management segment was
The following table presents a breakdown of management fees:
Quarter ended | ||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||
(in thousands) | ||||||||
Management fees: | ||||||||
Base | $ |
7,153 |
$ |
7,133 |
$ |
7,175 |
||
Performance incentive |
|
- |
|
- |
|
- |
||
Total management fees | $ |
7,153 |
$ |
7,133 |
$ |
7,175 |
||
Net assets of PennyMac Mortgage Investment Trust at quarter end | $ |
1,936,787 |
$ |
1,939,869 |
$ |
1,949,078 |
Investment Management segment expenses totaled
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 Tuesday, October 22, 2024. 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
PENNYMAC FINANCIAL SERVICES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||
(in thousands, except share amounts) | ||||||||
ASSETS | ||||||||
Cash | $ |
145,814 |
$ |
595,336 |
$ |
1,177,304 |
||
Short-term investment at fair value |
|
667,934 |
|
188,772 |
|
5,553 |
||
Principal-only stripped mortgage-backed securities at fair value |
|
960,267 |
|
914,223 |
|
- |
||
Loans held for sale at fair value |
|
6,565,704 |
|
6,238,959 |
|
5,186,656 |
||
Derivative assets |
|
190,612 |
|
145,887 |
|
103,366 |
||
Servicing advances, net |
|
400,764 |
|
414,235 |
|
399,281 |
||
Mortgage servicing rights at fair value |
|
7,752,292 |
|
7,923,078 |
|
7,084,356 |
||
Investment in PennyMac Mortgage Investment Trust at fair value |
|
1,070 |
|
1,031 |
|
930 |
||
Receivable from PennyMac Mortgage Investment Trust |
|
32,603 |
|
29,413 |
|
27,613 |
||
Loans eligible for repurchase |
|
5,512,289 |
|
4,560,058 |
|
4,445,814 |
||
Other |
|
642,189 |
|
566,573 |
|
518,441 |
||
Total assets | $ |
22,871,538 |
$ |
21,577,565 |
$ |
18,949,314 |
||
LIABILITIES | ||||||||
Assets sold under agreements to repurchase | $ |
6,600,997 |
$ |
6,408,428 |
$ |
4,411,747 |
||
Mortgage loan participation purchase and sale agreements |
|
517,527 |
|
511,837 |
|
498,392 |
||
Notes payable secured by mortgage servicing assets |
|
1,723,632 |
|
1,723,144 |
|
2,673,402 |
||
Unsecured senior notes |
|
3,162,239 |
|
3,160,226 |
|
1,782,689 |
||
Derivative liabilities |
|
41,471 |
|
18,830 |
|
41,200 |
||
Mortgage servicing liabilities at fair value |
|
1,718 |
|
1,708 |
|
1,818 |
||
Accounts payable and accrued expenses |
|
331,512 |
|
294,812 |
|
306,821 |
||
Payable to PennyMac Mortgage Investment Trust |
|
81,040 |
|
100,220 |
|
97,975 |
||
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement |
|
26,099 |
|
26,099 |
|
26,099 |
||
Income taxes payable |
|
1,105,550 |
|
1,082,397 |
|
1,059,993 |
||
Liability for loans eligible for repurchase |
|
5,512,289 |
|
4,560,058 |
|
4,445,814 |
||
Liability for losses under representations and warranties |
|
28,286 |
|
28,688 |
|
30,491 |
||
Total liabilities |
|
19,132,360 |
|
17,916,447 |
|
15,376,441 |
||
STOCKHOLDERS' EQUITY | ||||||||
Common stock—authorized 200,000,000 shares of issued and outstanding 51,257,630, 51,017,418, and 49,925,752 shares, respectively |
|
5 |
|
5 |
|
5 |
||
Additional paid-in capital |
|
54,415 |
|
30,053 |
|
11,475 |
||
Retained earnings |
|
3,684,758 |
|
3,631,060 |
|
3,561,393 |
||
Total stockholders' equity |
|
3,739,178 |
|
3,661,118 |
|
3,572,873 |
||
Total liabilities and stockholders’ equity | $ |
22,871,538 |
$ |
21,577,565 |
$ |
18,949,314 |
PENNYMAC FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|||||||||||
Quarter ended | |||||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||||
(in thousands, except per share amounts) | |||||||||||
Revenues | |||||||||||
Net gains on loans held for sale at fair value | $ |
256,819 |
|
$ |
176,064 |
|
$ |
151,374 |
|
||
Loan origination fees |
|
49,430 |
|
|
42,075 |
|
|
37,701 |
|
||
Fulfillment fees from PennyMac Mortgage Investment Trust |
|
11,492 |
|
|
4,427 |
|
|
5,531 |
|
||
Net loan servicing fees: | |||||||||||
Loan servicing fees |
|
462,037 |
|
|
440,696 |
|
|
387,934 |
|
||
Change in fair value of mortgage servicing rights and mortgage servicing liabilities |
|
(628,258 |
) |
|
(101,315 |
) |
|
221,096 |
|
||
Mortgage servicing rights hedging results |
|
242,051 |
|
|
(171,777 |
) |
|
(423,656 |
) |
||
Net loan servicing fees |
|
75,830 |
|
|
167,604 |
|
|
185,374 |
|
||
Net interest income (expense): | |||||||||||
Interest income |
|
225,470 |
|
|
200,811 |
|
|
166,552 |
|
||
Interest expense |
|
217,597 |
|
|
207,871 |
|
|
156,863 |
|
||
|
7,873 |
|
|
(7,060 |
) |
|
9,689 |
|
|||
Management fees from PennyMac Mortgage Investment Trust |
|
7,153 |
|
|
7,133 |
|
|
7,175 |
|
||
Other |
|
3,237 |
|
|
15,884 |
|
|
3,464 |
|
||
Total net revenues |
|
411,834 |
|
|
406,127 |
|
|
400,308 |
|
||
Expenses | |||||||||||
Compensation |
|
171,316 |
|
|
141,956 |
|
|
156,909 |
|
||
Loan origination |
|
45,208 |
|
|
40,270 |
|
|
28,889 |
|
||
Technology |
|
37,059 |
|
|
35,690 |
|
|
39,000 |
|
||
Servicing |
|
28,885 |
|
|
22,920 |
|
|
13,242 |
|
||
Professional services |
|
9,339 |
|
|
9,404 |
|
|
11,942 |
|
||
Occupancy and equipment |
|
8,156 |
|
|
7,893 |
|
|
8,900 |
|
||
Marketing and advertising |
|
5,088 |
|
|
5,445 |
|
|
4,632 |
|
||
Other |
|
12,858 |
|
|
8,695 |
|
|
9,997 |
|
||
Total expenses |
|
317,909 |
|
|
272,273 |
|
|
273,511 |
|
||
Income before provision for income taxes |
|
93,925 |
|
|
133,854 |
|
|
126,797 |
|
||
Provision for income taxes |
|
24,557 |
|
|
35,596 |
|
|
33,927 |
|
||
Net income | $ |
69,368 |
|
$ |
98,258 |
|
$ |
92,870 |
|
||
Earnings per share | |||||||||||
Basic | $ |
1.36 |
|
$ |
1.93 |
|
$ |
1.86 |
|
||
Diluted | $ |
1.30 |
|
$ |
1.85 |
|
$ |
1.77 |
|
||
Weighted-average common shares outstanding | |||||||||||
Basic |
|
51,180 |
|
|
50,955 |
|
|
49,902 |
|
||
Diluted |
|
53,495 |
|
|
53,204 |
|
|
52,561 |
|
||
Dividend declared per share | $ |
0.30 |
|
$ |
0.20 |
|
$ |
0.20 |
|
PENNYMAC FINANCIAL SERVICES, INC. RECONCILIATION OF GAAP NET INCOME TO OPERATING NET INCOME AND ANNUALIZED OPERATING RETURN ON EQUITY |
|||
Quarter Ended | |||
September 30, 2024 |
|||
(in thousands, except annualized operating return on equity) | |||
Net income | $ |
69,368 |
|
Decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model |
|
402,422 |
|
Hedging gains associated with MSRs |
|
(242,051 |
) |
Tax impacts of adjustments(1) |
|
43,060 |
|
Operating net income | $ |
186,679 |
|
Average stockholders' equity | $ |
3,694,831 |
|
Annualized operating return on equity |
|
20 |
% |
(1) Assumes a tax rate of
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022618341/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 PennyMac Financial Services' (PFSI) net income for Q3 2024?
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