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Jun 30, 2020

PennyMac Q2 2020 Earnings Report

PennyMac Financial Services reported record earnings, driven by strong production and servicing results, which were partially offset by fair value losses on mortgage servicing rights and associated hedging.

Key Takeaways

PennyMac Financial Services, Inc. reported a net income of $352.7 million for the second quarter of 2020, with diluted earnings per share of $4.39, on revenue of $821.6 million.

Pretax income was $480.4 million, up 16 percent from the prior quarter and 382 percent from the second quarter of 2019.

Record earnings were driven by core production and servicing results, partially offset by fair value losses on mortgage servicing rights (MSRs) and associated hedging and other losses.

In June, approximately 7 million shares of PFSI’s common stock were repurchased from The BlackRock Foundation for approximately $237.2 million at $34.00 per share.

The Board of Directors declared a second quarter cash dividend of $0.15 per share, a 25 percent increase from the prior quarter.

Total Revenue
$822M
Previous year: $303M
+171.2%
EPS
$4.39
Previous year: $0.92
+377.2%
PMT Assets Under Mgmt
$2.2B
Gross Profit
$534M
Previous year: $136M
+292.3%
Cash and Equivalents
$910M
Previous year: $232M
+292.4%
Free Cash Flow
$1.09B
Previous year: -$750M
-245.8%
Total Assets
$23.2B
Previous year: $8.4B
+176.6%

PennyMac

PennyMac

PennyMac Revenue by Segment

Forward Guidance

PennyMac expects its exceptional financial performance to persist into 2021 given the present market environment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income