PennyMac Financial Services, Inc. (NYSE: PFSI) announced a net income of $39.3 million for Q1 2024, translating to $0.74 per share on a diluted basis, with revenue reaching $305.7 million. Notably, the book value per share dropped to $70.13 from $70.52 as of December 31, 2023.
Title: PennyMac Financial Services, Inc. Declares Q1 Dividend and Reveals Strong Performance Highlights
PennyMac Financial Services, Inc. (NYSE: PFSI) announced today the declaration of a cash dividend of $0.20 per share for the first quarter of 2024. The dividend is payable on May 24, 2024, to common stockholders of record as of May 14, 2024.
Here are the key highlights from the first quarter of 2024:
Financial Performance:
- The company reported pretax income of $43.9 million, marking a significant improvement from a pretax loss of $54.2 million in the prior quarter and pretax income of $38.1 million in the first quarter of 2023.
- Production segment pretax income stood at $35.9 million, slightly down from the prior quarter but a significant improvement from a pretax loss of $19.6 million in the first quarter of 2023.
- Total loan acquisitions and originations amounted to $21.7 billion in unpaid principal balance (UPB), showing a decrease of 19 percent from the prior quarter but still maintaining a strong position compared to the first quarter of 2023.
- Notable increases were seen in broker direct interest rate lock commitments (IRLCs), which rose by 20 percent from the prior quarter, and consumer direct IRLCs, which increased by 35 percent from the prior quarter.
- Servicing segment pretax income rebounded to $4.9 million from a pretax loss of $95.5 million in the prior quarter, driven by a decrease in expenses and an increase in net loan servicing fees.
Valuation and Non-recurring Items:
- The company reported pretax income excluding valuation-related items and non-recurring items of $124.7 million, down 14 percent from the prior quarter.
- Valuation-related and non-recurring items included $170.0 million in mortgage servicing rights (MSR) fair value gains, offset by $294.6 million in hedging declines.
Segment Breakdown:
- The Production segment saw revenue totaling $184.7 million, up 5 percent from the prior quarter and 52 percent from the first quarter of 2023, primarily due to higher net gains on loans held for sale at fair value.
- The Servicing segment reported net revenues of $111.6 million, down from $175.8 million in the prior quarter, mainly due to lower net loan servicing fees.
- The Investment Management segment recorded pretax income of $3.1 million, up from $1.9 million in the prior quarter, with net assets under management (AUM) remaining essentially unchanged.
Outlook and Commentary:
- Chairman and CEO David Spector highlighted the company’s strong operating earnings, with an annualized operating return on equity of 15 percent, despite challenging market conditions.
- Spector emphasized the company’s robust capital structure and its focus on developing industry-leading mortgage banking technology, positioning PennyMac Financial for future growth regardless of interest rate fluctuations.
Conclusion: Overall, PennyMac Financial Services, Inc. showcased resilience and growth in the first quarter of 2024, backed by strong performance across its segments and a strategic focus on innovation and efficiency.
For more detailed information, including management’s slide presentation and accompanying material, interested parties can access the Investor Relations section of the Company’s website at pfsi.pennymac.com. Additionally, a conference call and live audio webcast will be hosted by management at 5:00 p.m. Eastern Time to review the Company’s financial results, with a replay available shortly after its conclusion.
