Press Release

PennyMac Financial Services, Inc. Reports First Quarter 2020 Results

Company Release - 5/7/2020 4:30 PM ET

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)-- PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $306.2 million for the first quarter of 2020, or $3.73 per share on a diluted basis, on revenue of $721.8 million. Book value per share increased to $29.85 from $26.26 at December 31, 2019.

PFSI’s Board of Directors declared a first quarter cash dividend of $0.12 per share, payable on May 28, 2020, to common stockholders of record as of May 18, 2020.

First Quarter 2020 Highlights

  • Pretax income was $414.7 million, up 104 percent from the prior quarter and 588 percent from the first quarter of 2019
    • Record earnings driven by continued strong production results combined with substantial gains on our interest rate hedge instruments which more than offset substantial fair value losses on mortgage servicing rights (MSRs)
    • In March, repurchased approximately 238,000 shares of PFSI’s common stock for an approximate cost of $4.1 million and a weighted average price of $17.31 per share
  • Record Production segment pretax income of $240.1 million, up 18 percent from the prior quarter and 411 percent from the first quarter of 2019, driven by record volumes in the direct lending channels and elevated margins across all channels
    • Direct lending interest rate lock commitments (IRLCs) were a record $9.9 billion in unpaid principal balance (UPB), up 38 percent from the prior quarter and 229 percent from the first quarter of 2019
      - $7.2 billion in UPB of IRLCs in the consumer direct channel; $2.8 billion in UPB of IRLCs in the broker direct channel
    • Government correspondent IRLCs totaled $14.9 billion in UPB, down 8 percent from the prior quarter and up 101 percent from the first quarter of 2019

    • Total loan acquisitions and originations were $35.4 billion in UPB, down 17 percent from the prior quarter and up 113 percent from the first quarter of 2019

    • Correspondent acquisitions of conventional loans fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) were $16.2 billion in UPB, down 21 percent from the prior quarter and up 99 percent from the first quarter of 2019

  • Record Servicing segment pretax income of $170.8 million, versus a pretax loss of $5.1 million in the prior quarter and pretax income of $11.2 million in the first quarter of 2019
    • Valuation-related items included $920.3 million in MSR fair value losses offset by $1.1 billion in hedging and other gains; net impact on pretax income was $130.8 million and on earnings per share was $1.17
    • Pretax income excluding valuation-related items was $42.3 million, up 8 percent from the prior quarter and 20 percent from the first quarter of 2019
    • Servicing portfolio grew to $384.2 billion in UPB, up 4 percent from December 31, 2019 and 18 percent from March 31, 2019
  • Investment Management segment pretax income was $3.8 million, down from $5.2 million in the prior quarter and up from $2.1 million in the first quarter of 2019
    • Revenue of $9.9 million, down 16 percent from the prior quarter and up 12 percent from the first quarter of 2019
    • Net assets under management (AUM) were $1.8 billion, down 26 percent from December 31, 2019, driven by a reduction in PMT’s shareholders’ equity

Notable activity after quarter-end:

  • In April, after more than a year in development, PennyMac Financial announced an enhancement to PNMAC GMSR ISSUER TRUST, to provide private market financing for Ginnie Mae servicing advances
    • PFSI currently has $600 million of committed capacity available to finance Ginnie Mae MSRs and servicing advances

“I am very proud of our record quarterly financial performance and success given the significant dislocations resulting from the spread of COVID-19 during this period,” said President and CEO David Spector. “Interest rates have fallen to new historic lows providing a favorable environment for mortgage origination. With certain competitors forced to reduce or limit their participation, PennyMac Financial is capturing elevated production volumes and margins across all three production channels, and I would like to thank every one of our nearly 4,500 dedicated employees, who enthusiastically adapted to working from home. Over the last twelve years, our highly-experienced management team has maintained its disciplined approach to interest rate, credit, and operational risks, which has proven essential in the current market environment. As a result, PennyMac Financial reported record earnings and 14 percent book value growth in the first quarter, driven by record production segment profitability and outstanding performance from our interest rate hedging strategies, which more than offset significant fair value losses on mortgage servicing rights.”

Mr. Spector continued, “Additionally, we recognize that the environment is causing increased hardship to customers. We are well positioned as one of the largest and best capitalized independent mortgage producers and servicers in the country to offer and fulfill the forbearance programs announced and required by policymakers. PennyMac Financial was quick to incorporate these requirements into its technology platform and offer borrowers the ability to request forbearance immediately using the self-service capabilities made available. Our expertise in loss mitigation strategies will help assist our customers to stay in their homes with opportunities for them to refinance or seek modifications to improve their financial well-being. Since the company’s founding in 2008, we have successfully navigated periods of market volatility and operational disruptions driven by external influences and we are confident in our ability to address the current challenges and opportunities presented by the impact of COVID-19. While prospects for the U.S. economy are uncertain and present some headwinds for PFSI’s businesses, given the present market environment, we expect PFSI’s overall financial performance to remain elevated throughout 2020.”

The following table presents the contributions of PennyMac Financial’s segments to pretax income:

Quarter ended March 31, 2020
Mortgage Banking Investment
Management
Production Servicing Total Total
(in thousands)
Revenue
Net gains on loans held for sale at fair value

$

316,635

 

$

27,647

 

$

344,282

 

$

-

 

$

344,282

Loan origination fees

 

57,571

 

 

-

 

 

57,571

 

 

-

 

 

57,571

Fulfillment fees from PMT

 

41,940

 

 

-

 

 

41,940

 

 

-

 

 

41,940

Net loan servicing fees

 

-

 

 

257,808

 

 

257,808

 

 

-

 

 

257,808

Management fees

 

-

 

 

-

 

 

-

 

 

9,055

 

 

9,055

Net interest income (expense):
Interest income

 

26,585

 

 

45,979

 

 

72,564

 

 

-

 

 

72,564

Interest expense

 

20,157

 

 

41,346

 

 

61,503

 

 

9

 

 

61,512

 

6,428

 

 

4,633

 

 

11,061

 

 

(9

)

 

11,052

Other

 

(10

)

 

(680

)

 

(690

)

 

807

 

 

117

Total net revenue

 

422,564

 

 

289,408

 

 

711,972

 

 

9,853

 

 

721,825

Expenses

 

182,433

 

 

118,566

 

 

300,999

 

 

6,096

 

 

307,095

Pretax income

$

240,131

 

$

170,842

 

$

410,973

 

$

3,757

 

$

414,730

Production Segment

Production includes the correspondent acquisition of newly originated government-insured mortgage 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 $35.4 billion in UPB, $19.2 billion of which was for its own account, and $16.2 billion of which was fee-based fulfillment activity for PMT. Correspondent government and direct lending IRLCs totaled $24.8 billion in UPB, up 6 percent from the prior quarter and 138 percent from the first quarter of 2019.

Production segment pretax income was $240.1 million, up 18 percent from the prior quarter and 411 percent from the first quarter of 2019. Production revenue totaled $422.6 million, up 20 percent from the prior quarter and 227 percent from the first quarter of 2019. The quarter-over-quarter increase was driven by an $88.9 million increase in net gains on loans held for sale driven by record volumes in the direct lending channels and elevated margins across all channels.

The components of net gains on loans held for sale are detailed in the following table:

Quarter ended
March 31,
2020
December 31,
2019
March 31,
2019
(in thousands)
Receipt of MSRs in loan sale transactions

$

275,739

 

$

328,182

 

$

114,957

 

Mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust

 

(3,308

)

 

(2,624

)

 

(1,123

)

(Provision) Reversal of liability for representations and warranties, net

 

(2,036

)

 

(1,583

)

 

3,143

 

Cash investment (1)

 

70,315

 

 

4,694

 

 

(23,023

)

Fair value changes of pipeline, inventory and hedges

 

3,572

 

 

(71,182

)

 

(9,178

)

Net gains on mortgage loans held for sale

$

344,282

 

$

257,487

 

$

84,776

 

Net gains on mortgage loans held for sale by segment:
Production

$

316,635

 

$

227,751

 

$

66,721

 

Servicing

$

27,647

 

$

29,736

 

$

18,055

 

(1) Net of cash hedging results

PennyMac Financial performs fulfillment services for 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 $41.9 million in the first quarter, down 28 percent from the prior quarter and up 52 percent from the first quarter of 2019. The quarter-over-quarter decrease in fulfillment fee revenue was driven primarily by a 21 percent decrease in acquisition volumes by PMT and a decrease in the weighted average fulfillment fee rate to 26 basis points from 28 basis points in the prior quarter.

Net interest income totaled $6.4 million, up from $2.9 million in the prior quarter and down from $10.5 million in the first quarter of 2019. Net interest income in the first quarter of 2019 included incentives totaling $9.3 million, which the Company was entitled to receive under one of its master repurchase agreements to finance mortgage loans that satisfied certain consumer relief characteristics. There were no consumer relief incentives in the first quarter of 2020.

Production segment expenses were $182.4 million, up 22 percent from the prior quarter and 122 percent from the first quarter of 2019 as a result of the increase in volumes.

Servicing Segment

Servicing includes income from owned MSRs, subservicing and special servicing activities. Servicing segment pretax income was $170.8 million, versus a pretax loss of $5.1 million in the prior quarter and pretax income of $11.2 million in the first quarter of 2019. Servicing segment revenues totaled $289.4 million, up 131 percent from the prior quarter and 164 percent from the first quarter of 2019 driven by net valuation-related gains versus losses in the prior periods.

Net loan servicing fees totaled $257.8 million and included $241.9 million in servicing fees reduced by $114.9 million from the realization of MSR cash flows. Net valuation-related gains totaled $130.8 million, and included hedging gains of $1.0 billion and a $14.5 million change in the fair value of the excess servicing spread liability partially offset by MSR fair value losses of $920.3 million. The MSR fair value losses primarily resulted from expectations for increased prepayment activity in the future as a result of lower interest rates in the first quarter combined with expected higher expected cost to service loans due to increases in delinquencies and increased returns demanded by market participants.

The following table presents a breakdown of net loan servicing fees:

Quarter ended
March 31,
2020
December 31,
2019
March 31,
2019
(in thousands)
Loan servicing fees (1)

$

241,929

 

$

234,871

 

$

199,377

 

Changes in fair value of MSRs and MSLs resulting from:
Realization of cash flows

 

(114,919

)

 

(113,102

)

 

(92,475

)

Change in fair value inputs

 

(920,294

)

 

160,611

 

 

(164,939

)

Change in fair value of excess servicing spread financing

 

14,522

 

 

(2,263

)

 

4,051

 

Hedging gains(losses)

 

1,036,570

 

 

(192,386

)

 

134,557

 

Net change in fair value of MSRs and MSLs

 

15,879

 

 

(147,140

)

 

(118,806

)

Net loan servicing fees

$

257,808

 

$

87,731

 

$

80,571

 

(1) Includes contractually-specified servicing fees

Servicing segment revenue also included $27.6 million in net gains on loans held for sale from the securitization of reperforming government-insured and guaranteed loans, compared to $29.7 million in the prior quarter and $18.1 million in the first quarter of 2019. These loans were previously purchased out of Ginnie Mae securitizations as early buyout (EBO) loans and brought back to performing status through PennyMac Financial’s successful servicing efforts, primarily with the use of loan modifications. Net interest income totaled $4.6 million, down from $8.0 million in the prior quarter and $10.3 million in the first quarter of 2019. Interest income decreased by $3.4 million from the prior quarter, primarily driven by lower income related to custodial deposit balances as earnings rates declined. Interest expense was essentially unchanged from the prior quarter.

Servicing segment expenses totaled $118.6 million, down 9 percent from the prior quarter driven by a full quarter of cost savings related to Servicing Systems Environment (SSE), the Company’s proprietary, cloud-based servicing platform, partially offset by seasonally higher expenses related to payroll taxes and benefits.

The total servicing portfolio grew to $384.2 billion in UPB at March 31, 2020, an increase of 4 percent from December 31, 2019 and 18 percent from March 31, 2019, driven primarily by the Company’s loan production activities. PennyMac Financial subservices and conducts special servicing for $144.8 billion in UPB, an increase of 7 percent from December 31, 2019 and 43 percent from March 31, 2019. PennyMac Financial’s owned MSR portfolio grew to $239.4 billion in UPB, an increase of 3 percent from December 31, 2019 and 7 percent from March 31, 2019.

The table below details PennyMac Financial’s servicing portfolio UPB:

 
March 31,
2020
December 31,
2019
March 31,
2019
(in thousands)
Prime servicing:
Owned
Mortgage servicing rights
Originated

$

173,171,678

$

166,188,825

$

147,987,738

Acquisitions

 

58,312,483

 

59,598,279

 

71,846,623

 

231,484,161

 

225,787,104

 

219,834,361

Mortgage servicing liabilities

 

2,635,734

 

2,758,454

 

1,000,403

Loans held for sale

 

5,276,688

 

4,724,006

 

2,573,121

 

239,396,583

 

233,269,564

 

223,407,885

Subserviced for PMT

 

144,734,874

 

135,288,944

 

100,939,297

Total prime servicing

 

384,131,457

 

368,558,508

 

324,347,182

Special servicing - subserviced for PMT

 

95,169

 

125,724

 

348,131

Total loans serviced

$

384,226,626

$

368,684,232

$

324,695,313

 
Loans serviced:
Owned
Mortgage servicing rights

$

231,484,161

$

225,787,104

$

219,834,361

Mortgage servicing liabilities

 

2,635,734

 

2,758,454

 

1,000,403

Loans held for sale

 

5,276,688

 

4,724,006

 

2,573,121

 

239,396,583

 

233,269,564

 

223,407,885

Subserviced

 

144,830,043

 

135,414,668

 

101,287,428

Total loans serviced

$

384,226,626

$

368,684,232

$

324,695,313

Investment Management Segment

PennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation. Net AUM were $1.8 billion as of March 31, 2020, down 26 percent from December 31, 2019, due to a reduction in PMT’s shareholders’ equity driven by significant non-cash fair value losses on its government-sponsored enterprise (GSE) credit risk transfer (CRT) investments.

Pretax income for the Investment Management segment was $3.8 million, down from $5.2 million in the prior quarter and up from $2.1 million in the first quarter of 2019. Management fees, which include base management and performance incentive fees from PMT, decreased 12 percent from the prior quarter and increased 25 percent from the first quarter of 2019. Base management fees were $9.1 million, up from $8.4 million in the prior quarter and $6.1 million in the first quarter of 2019. Average AUM was up for the quarter, however as of March 31 ,2020, AUM declined 26 percent from December 31, 2019 due to significant non-cash fair value losses on PMT’s investments in GSE CRT. Performance-based incentive fees were not earned in the first quarter and are not expected to be earned for some time.

The following table presents a breakdown of management fees:

Quarter ended
March 31,
2020
December 31,
2019
March 31,
2019
(in thousands)
Management fees:
PennyMac Mortgage Investment Trust
Base

$

9,055

$

8,441

$

6,109

Performance incentive

 

-

 

1,873

 

1,139

Total management fees

$

9,055

$

10,314

$

7,248

 
Net assets of PennyMac Mortgage Investment Trust

$

1,823,368

$

2,450,916

$

1,727,589

Investment Management segment expenses totaled $6.1 million, down 7 percent from the prior quarter and 9 percent from the first quarter of 2019.

Consolidated Expenses

Total expenses were $307.1 million, up 7 percent from the prior quarter and 64 percent from the first quarter of 2019. The year-over-year change was primarily driven by higher volumes of activity in the Production segment.

Management’s slide presentation will be available in the Investor Relations section of the Company’s website at ir.pennymacfinancial.com beginning at 1:30 p.m. (Pacific Time) on Thursday, May 7, 2020.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Additional information about PennyMac Financial Services, Inc. is available at ir.pennymacfinancial.com.

This press release contains forward-looking statements within the meaning of Section 21E of theSecurities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, the recently completed corporate reorganization, the expected benefits and market and financial impact of the reorganization and assumptions with respect to, among other things, the Company’s 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,” “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: our exposure to risks of loss and disruptions in operations resulting from adverse weather conditions, man-made or natural disasters, climate change and pandemics such as COVID-19; 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 businesses; the mortgage lending and servicing-related regulations promulgated by the Consumer Financial Protection Bureau and its enforcement of these regulations; our dependence on U.S. government‑sponsored entities and changes in their current roles or their guarantees or guidelines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to the Company’s businesses, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; certain banking regulations that may limit our business activities; changes in macroeconomic and U.S. real estate market conditions; difficulties inherent in growing loan production volume; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights and our success in winning bids; changes in prevailing interest rates; expected discontinuation of LIBOR; increases in loan delinquencies and defaults; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant source of financing for, and revenue related to, our mortgage banking business; any required additional capital and liquidity to support business growth that may not be available on acceptable terms, if at all; 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 or characteristics or under other circumstances; our obligation to indemnify PMT if its services fail to meet certain criteria or characteristics or under other circumstances; decreases in the returns on the assets that we select and manage for our clients, and our resulting management and incentive fees; the extensive amount of regulation applicable to our investment management segment; conflicts of interest in allocating our services and investment opportunities among us and our advised entities; the effect of public opinion on our reputation; our recent growth; our ability to effectively identify, manage, monitor and mitigate financial risks; our initiation of new business activities or investment strategies or expansion of existing business activities or investment strategies; our ability to detect misconduct and fraud; our ability to mitigate cybersecurity risks and cyber incidents; 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.

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31,
2020
December 31,
2019
March 31,
2019
(in thousands, except share amounts)
ASSETS
Cash

$

878,826

$

188,291

$

144,266

Short-term investments at fair value

 

1,884

 

74,611

 

149,372

Loans held for sale at fair value

 

5,541,987

 

4,912,953

 

2,668,929

Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors

 

99,766

 

107,512

 

125,929

Derivative assets

 

433,211

 

159,686

 

121,153

Servicing advances, net

 

299,550

 

331,169

 

284,230

Investment in PennyMac Mortgage Investment Trust at fair value

 

797

 

1,672

 

1,553

Mortgage servicing rights

 

2,193,697

 

2,926,790

 

2,905,090

Real estate acquired in settlement of loans

 

20,197

 

20,326

 

1,690

Operating lease right-of-use assets

 

71,639

 

73,090

 

56,239

Furniture, fixtures, equipment and building improvements, net

 

29,177

 

30,480

 

33,423

Capitalized software, net

 

74,183

 

63,130

 

45,416

Receivable from PennyMac Mortgage Investment Trust

 

56,223

 

48,159

 

29,951

Loans eligible for repurchase

 

980,618

 

1,046,527

 

1,094,702

Other

 

209,378

 

219,621

 

157,057

Total assets

$

10,891,133

$

10,204,017

$

7,819,000

 
LIABILITIES
Assets sold under agreements to repurchase

$

4,444,545

$

4,141,053

$

2,151,938

Mortgage loan participation and sale agreements

 

528,750

 

497,948

 

547,879

Notes payable secured by mortgage servicing assets

 

1,294,514

 

1,294,070

 

1,292,736

Obligations under capital lease

 

18,145

 

20,810

 

5,091

Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value

 

157,109

 

178,586

 

205,081

Derivative liabilities

 

43,152

 

22,330

 

17,838

Operating lease liabilities

 

89,829

 

91,320

 

76,373

Mortgage servicing liabilities at fair value

 

29,761

 

29,140

 

7,844

Accounts payable and accrued expenses

 

198,897

 

175,273

 

162,677

Payable to PennyMac Mortgage Investment Trust

 

59,281

 

73,280

 

76,494

Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement

 

46,158

 

46,158

 

46,537

Income taxes payable

 

613,043

 

504,569

 

414,636

Liability for loans eligible for repurchase

 

980,618

 

1,046,527

 

1,094,702

Liability for losses under representations and warranties

 

23,202

 

21,446

 

17,982

Total liabilities

 

8,527,004

 

8,142,510

 

6,117,808

 
STOCKHOLDERS' EQUITY
Common stock authorized 200,000,000 shares of $0.0001 par value; issued
and outstanding 79,190,245, 78,515,047, and 78,317,843 shares,
respectively

 

8

 

8

 

8

Additional paid-in capital

 

1,341,219

 

1,335,107

 

1,311,914

Retained earnings

 

1,022,902

 

726,392

 

389,270

Total stockholders' equity attributable to PennyMac Financial Services, Inc. common stockholders

 

2,364,129

 

2,061,507

 

1,701,192

Total liabilities and stockholders’ equity

$

10,891,133

$

10,204,017

$

7,819,000

 

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Quarter ended
March 31,
2020
December 31,
2019
March 31,
2019
(in thousands, except earnings per share)
Revenue
Net gains on loans held for sale at fair value

$

344,282

 

$

257,487

 

$

84,776

 

Loan origination fees

 

57,571

 

 

63,868

 

 

23,930

 

Fulfillment fees from PennyMac Mortgage Investment Trust

 

41,940

 

 

58,297

 

 

27,574

 

Net loan servicing fees:
Loan servicing fees

 

241,929

 

 

234,871

 

 

199,377

 

Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread financing, net of hedging results

 

15,879

 

 

(147,140

)

 

(118,806

)

Net loan servicing fees

 

257,808

 

 

87,731

 

 

80,571

 

Net interest income:
Interest income

 

72,564

 

 

76,015

 

 

58,333

 

Interest expense

 

61,512

 

 

65,132

 

 

37,543

 

 

11,052

 

 

10,883

 

 

20,790

 

Management fees from PennyMac Mortgage Investment Trust

 

9,055

 

 

10,314

 

 

7,248

 

Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust

 

(857

)

 

39

 

 

192

 

Results of real estate acquired in settlement of loans

 

(707

)

 

(648

)

 

274

 

Other

 

1,681

 

 

2,404

 

 

2,350

 

Total net revenue

 

721,825

 

 

490,375

 

 

247,705

 

Expenses
Compensation

 

168,436

 

 

141,009

 

 

106,600

 

Loan origination

 

46,004

 

 

44,919

 

 

14,497

 

Servicing

 

42,166

 

 

57,487

 

 

30,293

 

Technology

 

19,107

 

 

15,515

 

 

15,966

 

Professional services

 

13,404

 

 

10,983

 

 

5,881

 

Occupancy and equipment

 

8,038

 

 

7,841

 

 

6,776

 

Other

 

9,940

 

 

9,255

 

 

7,401

 

Total expenses

 

307,095

 

 

287,009

 

 

187,414

 

Income before provision for income taxes

 

414,730

 

 

203,366

 

 

60,291

 

Provision for income taxes

 

108,487

 

 

50,705

 

 

14,156

 

Net income

$

306,243

 

$

152,661

 

$

46,135

 

 
Earnings per share
Basic

$

3.89

 

$

1.95

 

$

0.59

 

Diluted

$

3.73

 

$

1.88

 

$

0.58

 

Weighted-average common shares outstanding
Basic

 

78,689

 

 

78,466

 

 

77,653

 

Diluted

 

82,008

 

 

81,076

 

 

79,286

 

 

 

Media
Janis Allen
(805) 330-4899

Investors
Isaac Garden
(818) 264-4907

Source: PennyMac Financial Services, Inc.