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Mar 31, 2023

PennyMac Q1 2023 Earnings Report

PennyMac Financial reported solid net income despite challenges in the mortgage origination market.

Key Takeaways

PennyMac Financial Services reported a net income of $30.4 million for Q1 2023, with strong servicing segment profitability partially offset by MSR fair value declines. The company saw improved margins in broker direct and correspondent lending channels and strengthened its balance sheet with a $680 million secured term loan.

Net income was $30.4 million, or $0.57 per share on a diluted basis.

Revenue totaled $302.9 million.

Servicing segment showed strong operating profitability.

Balance sheet was strengthened with a $680 million secured term loan.

Total Revenue
$303M
Previous year: $658M
-53.9%
EPS
$0.57
Previous year: $2.94
-80.6%
PMT Assets Under Mgmt
$2B
Previous year: $2.2B
-9.1%
Gross Profit
$352M
Previous year: $338M
+4.1%
Cash and Equivalents
$1.5B
Previous year: $490M
+205.8%
Free Cash Flow
-$3.27B
Previous year: $4.42B
-173.8%
Total Assets
$20.1B
Previous year: $14.6B
+37.5%

PennyMac

PennyMac

PennyMac Revenue by Segment

Forward Guidance

PennyMac Financial is optimistic about its future, with a growing servicing portfolio and a strong competitive position in lending channels. The company is confident in its ability to execute strategic plans and grow as a leader in the mortgage industry.

Positive Outlook

  • Growing servicing portfolio.
  • Strong competitive position in correspondent and broker direct lending channels.
  • Increasing attention from new correspondents and brokers.
  • Confidence in profitable execution of strategic plans.
  • Continued growth as a respected leader in the mortgage industry.

Revenue & Expenses

Visualization of income flow from segment revenue to net income