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Sep 30, 2020
PennyMac Q3 2020 Earnings Report
PennyMac Financial reported record earnings driven by increases in income from production and servicing segments.
Key Takeaways
PennyMac Financial Services, Inc. reported a record third quarter with a net income of $535.2 million, or $7.03 per share, on revenue of $1.1 billion. The company's servicing portfolio grew to over $400 billion, and production income saw significant increases across all channels.
Record earnings driven by increases in income from both production and servicing segments.
Loan production activity totaled $54.2 billion in UPB.
Servicing portfolio grew to over $400 billion in UPB.
More than 6,000 PennyMac employees throughout operations across the country.
Revenue by Segment
Forward Guidance
PennyMac Financial expects its exceptional financial performance to persist through 2021, driven by growth in direct lending and continued loss mitigation activities in its servicing business, despite the uncertain macroeconomic outlook.
Positive Outlook
- Leading loan production business historically oriented to the purchase market.
- Servicing portfolio of nearly 1.9 million customers.
- Expected growth in direct lending.
- Continued loss mitigation activities in servicing business.
- Long track record of consistent profitability and value creation.
Challenges Ahead
- Macroeconomic outlook remains uncertain.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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