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Sep 30, 2021

PennyMac Q3 2021 Earnings Report

PennyMac Financial reported exceptional financial performance driven by strong execution in consumer direct lending, with a 29 percent annualized return on equity.

Key Takeaways

PennyMac Financial Services reported a net income of $249.3 million, or $3.80 per share on a diluted basis, on revenue of $786.6 million for the third quarter of 2021. The company's book value per share increased to $58.00.

Exceptional financial performance in the third quarter with a 29 percent annualized return on equity.

Increase in earnings from last quarter was driven by strong execution in consumer direct lending channel.

Loan production activity for the quarter totaled $59.1 billion in UPB.

Total servicing portfolio grew to $495.4 billion in UPB at September 30, 2021.

Total Revenue
$787M
Previous year: $1.12B
-29.8%
EPS
$3.8
Previous year: $7.03
-45.9%
PMT Assets Under Mgmt
$2.5B
Previous year: $2.3B
+8.7%
Gross Profit
$576M
Previous year: $917M
-37.2%
Cash and Equivalents
$477M
Previous year: $529M
-10.0%
Free Cash Flow
$1.44B
Previous year: -$4.29B
-133.5%
Total Assets
$19.7B
Previous year: $31.2B
-36.7%

PennyMac

PennyMac

PennyMac Revenue by Segment

Forward Guidance

I am confident in the ability of our balanced business model to continue delivering attractive returns on equity, which we expect to trend towards our pre-COVID average over time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income