This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

PennyMac Financial Services, Inc. Reports Fourth Quarter 2013 Results

Stocks in this article: PFSI

PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $37.3 million for the fourth quarter of 2013, on revenue of $90.4 million. Net income attributable to PFSI common stockholders was $6.4 million, or $0.32 per diluted share.

Fourth Quarter 2013 Highlights

  • Total net revenue of $90.4 million, up 4 percent from the prior quarter
  • Mortgage Banking revenue of $75.7 million, up 4 percent from the prior quarter
  • Investment Management revenue of $14.7 million, up 3 percent from the prior quarter
  • Total loan production activity of $6.0 billion in unpaid principal balance (UPB), down25 percent from the prior quarter
  • Servicing portfolio reached $78.2 billion in UPB, up 48 percent from September 30, 2013
  • Net assets under management totaled $2.0 billion, down 1 percent from September 30, 2013
  • Successfully closed and transferred two previously announced bulk mortgage servicing rights (MSR) portfolio acquisitions totaling $20.1 billion in UPB, with co-investment by PennyMac Mortgage Investment Trust (NYSE: PMT) in the excess servicing spread

Full-Year 2013 Highlights

  • Pretax income of $182.1 million, up 54 percent from the prior year
  • Total net revenue of $386.6 million, up 46 percent from the prior year
  • Mortgage Banking revenue of $330.2 million, up 44 percent from the prior year
  • Investment Management revenue of $56.3 million, up 57 percent from the prior year
  • Loan production totaled $31.7 billion, an increase of 44 percent from the prior year, which includes over $1 billion in originations in PFSI’s retail lending business.

“PennyMac Financial ended a successful year with a solid quarter despite continuing headwinds in the mortgage origination market,” said Chairman and Chief Executive Officer Stanford L. Kurland. “We successfully completed and transferred two bulk MSR acquisitions, helping to grow our servicing portfolio by 48 percent and presenting attractive opportunities for our retail lending business. Loan production volumes were lower, driven by a decline in the U.S. origination market. Nevertheless, our mortgage banking revenues increased quarter-over-quarter and we remained focused on expense management, leading to a 19 percent increase in net income for the quarter.”

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs