PennyMac Financial Services, Inc. (NYSE: PFSI) today reported
net income of $104.5 million for the fourth quarter of 2024, or
$1.95 per share on a diluted basis, on revenue of $470.1 million.
Book value per share increased to $74.54 from $72.95 at September
30, 2024.
PFSI’s Board of Directors declared a fourth quarter cash
dividend of $0.30 per share, payable on February 23, 2025, to
common stockholders of record as of February 13, 2025.
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, up from pretax income of
$93.9 million in the prior quarter and pretax loss of $54.2 million
in the fourth quarter of 2023
- Production segment pretax income was $78.0 million, down from
$129.4 million in the prior quarter and up from $44.2 million in
the fourth quarter of 2023
- Total loan acquisitions and originations, including those
fulfilled for PMT, were $35.7 billion in unpaid principal balance
(UPB), up 13 percent from the prior quarter and 34 percent from the
fourth quarter of 2023
- Broker direct interest rate lock commitments (IRLCs) were $4.5
billion in UPB, down 17 percent from the prior quarter and up 60
percent from the fourth quarter of 2023
- Consumer direct IRLCs were $3.7 billion in UPB, down 30 percent
from the prior quarter and up 129 percent from the fourth quarter
of 2023
- Government correspondent IRLCs totaled $11.1 billion in UPB,
down 11 percent from the prior quarter and essentially unchanged
from the fourth quarter of 2023
- Conventional correspondent IRLCs for PFSI’s account totaled
$13.8 billion in UPB, up 68 percent from the prior quarter and 38
percent from the fourth quarter of 2023
- Correspondent acquisitions of conventional conforming and jumbo
loans fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT)
were $3.5 billion in UPB, down 41 percent from the prior quarter
and up 41 percent from the fourth quarter of 2023
- PMT retained 19 percent of total conventional correspondent
loans in the fourth quarter, down from 42 percent in the prior
quarter
- Servicing segment pretax income was $87.3 million, up from $3.3
million in the prior quarter and $76.6 million in the fourth
quarter of 2023
- Pretax income excluding valuation-related changes was $168.3
million, essentially unchanged from the prior quarter as higher
loan servicing fees, lower realization of mortgage servicing rights
(MSR) cash flows and lower operating expenses were offset by lower
earnings on custodial balances due to lower short-term interest
rates
- Valuation-related changes included:
- $540.4 million in MSR fair value gains more than offset by
$608.1 million in hedging losses
- Net impact on pretax income related to these items was $(67.7)
million, or $(0.93) in earnings per share
- $13.3 million provision for losses on active loans
- Servicing portfolio grew to $665.8 billion in UPB, up 3 percent
from September 30, 2024 and 10 percent from December 31, 2023
driven by production volumes which more than offset prepayment
activity
- Pretax loss from Corporate and Other was $35.9 million,
compared to $38.8 million in the prior quarter and $175.0 million
in the fourth quarter of 2023
- The fourth quarter of 2023 included a non-recurring expense
accrual of $158.4 million as a result of the long-standing
arbitration related to the development of our proprietary servicing
software
Full-Year 2024 Highlights
- Net income of $311.4 million, up from $144.7 million in 2023;
excluding the non-recurring expense accrual, net income in 2023
would have been $260.5 million
- Pretax income of $401.0 million, up from $183.6 million in
2023; excluding the non-recurring expense accrual, pretax income in
2023 would have been $342.0 million
- Total net revenue of $1.6 billion, up from $1.4 billion in
2023
- Total loan production of $116.3 billion in UPB, an increase of
17 percent from 2023
- Servicing portfolio UPB of $665.8 billion at year end, up 10
percent from December 31, 2023
- Issued $650 million of 6-year unsecured senior notes due in
November 2030
- Increased quarterly cash dividend to $0.30 per share, a 50%
increase from $0.20 previously
“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 $36 billion in unpaid principal balance of loans,
which drove continued growth in our servicing portfolio to $666
billion in unpaid principal balance at year end.”
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 Reportablesegment total Corporateand
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 $35.7 billion in UPB, $32.2 billion of which was for its
own account, and $3.5 billion of which was fee-based fulfillment
activity for PMT. Correspondent locks for PFSI and direct lending
IRLCs totaled $33.0 billion in UPB, up 6 percent from the prior
quarter and 29 percent from the fourth quarter of 2023.
Production segment pretax income was $78.0 million, down from
$129.4 million in the prior quarter and up from $44.2 million in
the fourth quarter of 2023. Production segment revenue totaled
$261.1 million, down 11 percent from the prior quarter and up 49
percent from the fourth quarter of 2023. The decrease from the
prior quarter was due to higher mortgage interest rates, which
resulted in lower lock volumes in the direct lending channels. The
increase from the fourth quarter of 2023 was driven primarily by
higher volumes across all channels.
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 $6.4 million in the fourth quarter, down 45
percent from the prior quarter and up 29 percent from the fourth
quarter of 2023. The quarter-over-quarter decrease was driven by
lower conventional acquisition volumes for PMT’s account, as PMT
retained a smaller percentage of total conventional correspondent
production in the fourth quarter versus the third quarter. In the
first quarter of 2025, we expect PMT to retain all jumbo production
and 15 to 25 percent of total conventional conforming correspondent
production, compared to 19 percent in the fourth quarter.
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 $1.8 million,
compared to net interest expense of $2.1 million in the prior
quarter. Interest income totaled $93.8 million, up from $79.4
million in the prior quarter, and interest expense totaled $92.0
million, up from $81.5 million in the prior quarter, both due to
higher average balances of loans held for sale due to the increase
in funded volumes.
Production segment expenses were $183.1 million, up 11 percent
from the prior quarter and 40 percent from the fourth quarter of
2023. Production expenses increased from the prior quarter
primarily due to higher funded volumes and increased capacity in
the direct lending channels.
Servicing Segment
The Servicing segment includes income from owned MSRs and
subservicing. The total servicing portfolio grew to $665.8 billion
in UPB at December 31, 2024, an increase of 3 percent from
September 30, 2024 and 10 percent from December 31, 2023. PennyMac
Financial’s owned MSR portfolio grew to $434.2 billion in UPB, an
increase of 4 percent from September 30, 2024 and 16 percent from
December 31, 2023. PennyMac Financial subservices $230.8 billion in
UPB for PMT and subservices on an interim basis $807 million in UPB
of previously owned loans that have been repurchased by the United
States Veterans Affairs (VA) pursuant to the Veterans Affairs
Servicing Purchase (VASP) program.
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 U.S. Department of Veterans Affairs
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 $87.3 million, up from
pretax income of $3.3 million in the prior quarter and $76.6
million in the fourth quarter of 2023. Servicing segment net
revenues totaled $197.5 million, up from $105.9 million in the
prior quarter and $175.9 million in the fourth quarter of 2023.
Revenue from net loan servicing fees totaled $189.3 million, up
from $75.8 million in the prior quarter and $162.3 million in the
fourth quarter of 2023. The increase from the prior quarter was
primarily driven by a decrease in net valuation-related losses. Net
loan servicing fee revenues included $472.6 million in loan
servicing fees, which was up from the prior quarter due to growth
in the owned portfolio, reduced by $215.6 million from the
realization of MSR cash flows. Net valuation-related losses totaled
$67.7 million and included MSR fair value gains of $540.4 million
driven by the increase in market interest rates, and hedging losses
of $608.1 million.
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 $27.0 million in net gains on
loans held for sale related to early buyout loans (EBOs), up from
$20.9 million in the prior quarter and $24.5 million in the fourth
quarter of 2023. These EBOs are previously delinquent loans that
were brought back to performing status through PennyMac Financial’s
successful servicing efforts.
Net interest expense totaled $19.5 million, versus net interest
income of $9.5 million in the prior quarter and net interest
expense of $13.4 million in the fourth quarter of 2023. Interest
income was $116.7 million, down from $145.6 million in the prior
quarter due to decreased placement fees on custodial balances due
to lower short-term rates. Interest expense was $136.1 million,
essentially unchanged from the prior quarter as a higher average
balance of financing for MSR assets was offset by lower financing
rates on floating rate debt.
Servicing segment expenses totaled $110.2 million, up from
$102.6 million in the prior quarter primarily due to increased
provisions for losses on active loans.
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 $35.9 million, compared
to $38.8 million in the prior quarter and $175.0 million in the
fourth quarter of 2023.
Revenues from Corporate and Other were $11.5 million, and
consisted of $7.1 million in management fees, $3.9 million in other
revenue, and $0.4 million of net interest income. No performance
incentive fees were earned in the fourth quarter.
Expenses were $47.4 million, compared to $49.8 million in the
prior quarter and $186.4 million in the fourth quarter of 2023,
which included the aforementioned non-recurring expense
accrual.
Net assets under management were $1.9 billion as of December 31,
2024, essentially unchanged from September 30, 2024 and December
31, 2023.
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 $340.7 million, up from $317.9 million in
the prior quarter primarily due to increased production and
servicing segment expenses as previously discussed.
Taxes
PFSI recorded a provision for tax expense of $24.9 million,
resulting in an effective tax rate of 19.2 percent. The reduction
in the effective tax rate from the prior quarter was primarily due
to a decline in the provision rate from 26.85 percent to 26.70
percent and the resulting repricing of expected taxes on deferred
income.
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 U.S.
mortgage loans and the management of investments related to the
U.S. mortgage market. Founded in 2008, the company is recognized as
a leader in the U.S. residential mortgage industry and employs
approximately 4,100 people across the country. In 2024, PennyMac
Financial’s production of newly originated loans totaled $116
billion in unpaid principal balance, making it a top lender in the
nation. As of December 31, 2024, PennyMac Financial serviced loans
totaling $666 billion in unpaid principal balance, making it a top
mortgage servicer in the nation. Additional information about
PennyMac Financial Services, Inc. is available at
pfsi.pennymac.com.
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 U.S. government-sponsored entities
and changes in their current roles or their guarantees or
guidelines; our reliance on PennyMac Mortgage Investment Trust
(NYSE: PMT) as a significant contributor to our mortgage banking
business; maintaining sufficient capital and liquidity and
compliance with financial covenants; our obligation to indemnify
third-party purchasers or repurchase loans if loans that we
originate, acquire, service or assist in the fulfillment of fail to
meet certain criteria; our obligation to indemnify PMT if our
services fail to meet certain criteria or characteristics or under
other circumstances; investment management and incentive fees;
conflicts of interest in allocating our services and investment
opportunities among us and our advised entity; our ability to
mitigate cybersecurity risks, cyber incidents and technology
disruptions; the development of artificial intelligence; the effect
of public opinion on our reputation; our exposure to risks of loss
and disruptions in operations resulting from severe weather events,
man-made or other natural conditions, including climate change and
pandemics; our ability to effectively identify, manage and hedge
our credit, interest rate, prepayment, liquidity and climate risks;
our initiation or expansion of new business activities or
strategies; our ability to detect misconduct and fraud; our ability
to pay dividends to our stockholders; and our organizational
structure and certain requirements in our charter documents. You
should not place undue reliance on any forward- looking statement
and should consider all of the uncertainties and risks described
above, as well as those more fully discussed in reports and other
documents filed by the Company with the Securities and Exchange
Commission from time to time. The Company undertakes no obligation
to publicly update or revise any forward-looking statements or any
other information contained herein, and the statements made in this
press release are current as of the date of this release only.
The press release contains financial information calculated
other than in accordance with U.S. generally accepted accounting
principles (“GAAP”), such as pretax income excluding
valuation-related items and operating net income that provide a
meaningful perspective on the Company’s business results since the
Company utilizes this information to evaluate and manage the
business. Non-GAAP disclosures have limitations as an analytical
tool and should not be viewed as a substitute for financial
information determined in accordance with GAAP.
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 Reportablesegment total Corporateand
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 Reportablesegment total Corporateand
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. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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 $0.0001 par value; issued and outstanding
51,376,616, 51,257,630, and 50,178,963 shares, respectively
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. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
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 GAAP NET INCOME TO OPERATING NET INCOME AND
ANNUALIZED OPERATING RETURN ON EQUITY
Quarter Ended December 31, 2024 (in
thousands, except annualizedoperating 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 26.70%
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
Grafico Azioni PennyMac Financial Servi... (NYSE:PFSI)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni PennyMac Financial Servi... (NYSE:PFSI)
Storico
Da Gen 2024 a Gen 2025
