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.