PennyMac Q4 2019 Earnings Report

PennyMac Financial reported Q4 2019 results with net income of $152.7 million and revenue of $490.4 million.

Key Takeaways

PennyMac Financial Services, Inc. reported a strong fourth quarter and full-year 2019, with record pretax income and operating earnings driven by the Production segment and solid performance in the Servicing segment. Net income for the fourth quarter was $152.7 million, or $1.88 per share on a diluted basis, on revenue of $490.4 million. The company's book value per share increased, and the Board of Directors declared a cash dividend of $0.12 per share.

Record pretax income and operating earnings driven by strong Production segment results and operating performance in the Servicing segment.

Production segment pretax income was $203.3 million, up 700 percent from the fourth quarter of 2018, driven by record loan production volumes across all channels.

Total loan acquisitions and originations were $42.4 billion in unpaid principal balance (UPB), up 118 percent from the fourth quarter of 2018.

PFSI expects to earn a mid-teens return on equity across different market environments and a higher ROE in 2020.