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Dec 31, 2023

PennyMac Q4 2023 Earnings Report

PennyMac Financial reported a net loss for Q4 2023, driven by a one-time arbitration accrual, while production segment income increased.

Key Takeaways

PennyMac Financial Services, Inc. reported a net loss of $36.8 million for the fourth quarter of 2023, or $(0.74) per share, on revenue of $361.9 million. The net loss was primarily driven by a one-time accrual related to an arbitration with Black Knight. Despite a challenging origination market, PennyMac Financial produced nearly $100 billion in UPB of mortgage loans for the year and grew its servicing portfolio to over $600 billion.

Net loss of $36.8 million, or $(0.74) per share, on revenue of $361.9 million.

Production segment pretax income was $39.4 million, up from pretax income of $25.2 million in the prior quarter.

Servicing segment pretax loss was $95.5 million, including a non-recurring arbitration accrual of $158.4 million.

Total servicing portfolio grew to $607.2 billion in UPB at December 31, 2023, an increase of 3 percent from September 30, 2023.

Total Revenue
$362M
Previous year: $340M
+6.3%
EPS
$2.63
Previous year: $0.93
+182.8%
PMT Assets Under Mgmt
$2B
Previous year: $2B
+0.0%
Gross Profit
$717M
Previous year: $211M
+240.4%
Cash and Equivalents
$1.7B
Previous year: $1.6B
+6.3%
Free Cash Flow
$430M
Previous year: $488M
-11.9%
Total Assets
$33.3B
Previous year: $27.6B
+20.7%

PennyMac

PennyMac

PennyMac Revenue by Segment

Forward Guidance

No specific forward guidance was provided in the document.

Revenue & Expenses

Visualization of income flow from segment revenue to net income