PennyMac Financial Services, Inc. Reports Fourth Quarter and Full-Year 2024 Results
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.
