PMT PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income attributable to common shareholders of $42.5 million, or $0.44 per common share on a diluted basis for the fourth quarter of 2023, on net investment income of $84.8 million. PMT previously announced a cash dividend for the fourth quarter of 2023 of $0.40 per common share of beneficial interest, which was declared on December 6, 2023, and paid on January 26, 2024, to common shareholders of record as of December 29, 2023.

Fourth Quarter 2023 Highlights

Financial results:

• Net income attributable to common shareholders of $42.5 million; annualized return on average common equity of 12%1
  • Strong contributions from credit sensitive strategies and correspondent production partially offset by fair value declines in the interest rate sensitive strategies, which drove a tax benefit
• Book value per common share increased to $16.13 at December 31, 2023, from $16.01 at September 30, 2023

1 Return on average common equity is calculated based on net income attributable to common shareholders as a percentage of monthly average common equity during the quarter

Other investment highlights:

• Investment activity driven by correspondent production volumes
  • Conventional correspondent loan production volumes for PMT’s account totaled $2.5 billion in unpaid principal balance (UPB), down 10 percent from the prior quarter and 63 percent from the fourth quarter of 2022 as a result of the sale of a large percentage of conventional loans to PennyMac Financial Services, Inc. (NYSE: PFSI)
    • Resulted in the creation of $43 million in new mortgage servicing rights (MSRs)
• $17 million of new investments in government-sponsored enterprise (GSE) credit risk transfer (CRT) bonds

Notable activity after quarter end

• Opportunistically sold $56 million in floating rate GSE CRT bonds after credit spreads tightened

Full-Year 2023 Highlights

Financial results:

• Net income of $199.7 million, versus net loss of $73.3 million in 2022
• Net income attributable to common shareholders of $157.8 million, versus net loss attributable to common shareholders of $115.1 million in 2022; diluted earnings per share of $1.63 versus $(1.26) in 2022
• Dividends of $1.60 per common share
• Book value per share grew from $15.78 to $16.13
• Net investment income of $429.0 million, up from $303.8 million in 2022
• Return on average common equity of 11%2

2 Return on average common equity is calculated based on net income attributable to common shareholders as a percentage of monthly average common equity during the year

“PMT produced very strong results in 2023, with an 11 percent return on equity and income contributions from all three of its investment strategies, demonstrating strength in a year of tremendous volatility,” said Chairman and CEO David Spector. “Book value per share net of the dividends was up 2 percent from the prior year end, driven by both PMT’s strong financial performance as well as our unwavering commitment to managing interest rate risk. The fourth quarter was also very strong, with a 12 percent annualized return on equity driven by sizeable contributions from both the credit sensitive strategies and PMT’s correspondent production business.”

Mr. Spector continued, “I am proud of PMT’s financial performance in 2023, and believe the long-term return potential of PMT’s core MSR and CRT investments remains strong, supported by the borrowers underlying these assets with strong credit characteristics and a significant amount of home equity. At the same time, we will remain disciplined in our approach to managing capital and interest rate risk, positioning PMT to continue delivering attractive risk-adjusted returns to its shareholders.”

The following table presents the contributions of PMT’s segments, consisting of Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production, and Corporate:

Quarter ended December 31, 2023 Credit sensitivestrategies Interest rate sensitivestrategies Correspondentproduction Corporate Total   (in thousands) Net investment income: Net loan servicing fees

$

-

$

(77,830

)

$

-

 

$

-

 

$

(77,830

)

Net gains on loans acquired for sale

 

-

 

-

 

 

15,380

 

 

-

 

 

15,380

 

Net gains (losses) on investments and financings Mortgage-backed securities

 

7,798

 

111,419

 

 

-

 

 

-

 

 

119,217

 

Loans at fair value Held by VIEs

 

5,398

 

(5,990

)

 

-

 

 

-

 

 

(592

)

Distressed

 

48

 

-

 

 

-

 

 

-

 

 

48

 

CRT investments

 

45,665

 

-

 

 

-

 

 

-

 

 

45,665

 

 

58,909

 

105,429

 

 

-

 

 

-

 

 

164,338

 

Net interest expense: Interest income

 

26,220

 

120,853

 

 

16,442

 

 

1,763

 

 

165,278

 

Interest expense

 

24,174

 

142,911

 

 

17,795

 

 

643

 

 

185,523

 

 

2,046

 

(22,058

)

 

(1,353

)

 

1,120

 

 

(20,245

)

Other

 

66

 

-

 

 

3,065

 

 

-

 

 

3,131

 

 

61,021

 

5,541

 

 

17,092

 

 

1,120

 

 

84,774

 

Expenses: Loan fulfillment and servicing fees payable to PennyMac Financial Services, Inc.

 

24

 

20,300

 

 

4,931

 

 

-

 

 

25,255

 

Management fees payable to PennyMac Financial Services, Inc.

 

-

 

-

 

 

-

 

 

7,252

 

 

7,252

 

Other

 

116

 

2,014

 

 

903

 

 

8,914

 

 

11,947

 

$

140

$

22,314

 

$

5,834

 

$

16,166

 

$

44,454

 

Pretax income (loss)

$

60,881

$

(16,773

)

$

11,258

 

$

(15,046

)

$

40,320

 

Credit Sensitive Strategies Segment

The Credit Sensitive Strategies segment primarily includes results from PMT’s organically-created GSE CRT investments, opportunistic investments in other GSE CRT, investments in non-agency subordinate bonds from private-label securitizations of PMT’s production and legacy investments. Pretax income for the segment was $60.9 million on net investment income of $61.0 million, compared to pretax income of $41.0 million on net investment income of $41.5 million in the prior quarter.

Net gains on investments in the segment were $58.9 million, compared to $38.8 million in the prior quarter. These net gains include $45.7 million of gains on PMT’s organically-created GSE CRT investments, $7.8 million in gains on other acquired subordinate CRT mortgage-backed securities (MBS) and $5.4 million of gains on investments from non-agency subordinate bonds from PMT’s production.

Net gains on PMT’s organically-created CRT investments for the quarter were $45.7 million, compared to $30.2 million in the prior quarter. These net gains include $29.0 million in valuation-related gains, which reflected the impact of credit spread tightening in the fourth quarter. The prior quarter included $14.6 million of such gains. Net gains on PMT’s organically-created CRT investments also included $18.0 million in realized gains and carry, compared to $16.1 million in the prior quarter. Realized losses during the quarter were $1.3 million.

Net interest income for the segment totaled $2.0 million, compared to $3.0 million in the prior quarter. Interest income totaled $26.2 million, unchanged from the prior quarter. Interest expense totaled $24.2 million, up slightly from the prior quarter.

Interest Rate Sensitive Strategies Segment

The Interest Rate Sensitive Strategies segment includes results from investments in MSRs, Agency MBS, non-Agency senior MBS and interest rate hedges. Pretax loss for the segment was $16.8 million on net investment income of $5.5 million, compared to pretax income of $81.6 million on net investment income of $104.5 million in the prior quarter. The segment includes investments that typically have offsetting fair value exposures to changes in interest rates. For example, in a period with decreasing interest rates, MSRs are expected to decrease in fair value, whereas Agency pass-through and non-Agency senior MBS are expected to increase in fair value.

The results in the Interest Rate Sensitive Strategies segment consist of net gains and losses on investments, net interest income and net loan servicing fees, as well as associated expenses.

Net gains on investments for the segment were $105.4 million, which primarily consisted of gains on MBS due to decreasing interest rates.

Losses from net loan servicing fees were $77.8 million, compared to net gains of $281.3 million in the prior quarter. Net loan servicing fees included contractually specified servicing fees of $162.9 million and $2.5 million in other fees, reduced by $87.7 million in realization of MSR cash flows, down from $102.2 million in the prior quarter, due to higher yield levels during the quarter. Net loan servicing fees also included $144.6 million in fair value losses of MSRs due to lower market interest rates, $11.2 million in hedging losses, and $0.3 million of MSR recapture income. PMT’s hedging activities are intended to manage its net exposure across all interest rate sensitive strategies, which include MSRs, MBS and related tax impacts.

The following schedule details net loan servicing fees:

Quarter ended December 31, 2023 September 30, 2023 December 31, 2022 (in thousands) From non-affiliates: Contractually specified

$

162,916

 

$

166,809

 

$

164,189

 

Other fees

 

2,487

 

 

3,752

 

 

5,502

 

Effect of MSRs: Change in fair value Realization of cashflows

 

(87,729

)

 

(102,213

)

 

(98,974

)

Due to changes in valuation inputs used in valuation model

 

(144,603

)

 

263,139

 

 

43,935

 

 

(232,332

)

 

160,926

 

 

(55,039

)

Hedging results

 

(11,191

)

 

(50,689

)

 

(117,228

)

 

(243,523

)

 

110,237

 

 

(172,267

)

 

(78,120

)

 

280,798

 

 

(2,576

)

From PFSI—MSR recapture income

 

290

 

 

500

 

 

512

 

Net loan servicing fees

$

(77,830

)

$

281,298

 

$

(2,064

)

Net interest expense for the segment was $22.1 million versus $28.5 million in the prior quarter. Interest income totaled $120.9 million, up from $114.4 million in the prior quarter primarily due to increased income from Agency MBS and other investments. Interest expense totaled $142.9 million, unchanged from the prior quarter.

Segment expenses were $22.3 million, down slightly from the prior quarter.

Correspondent Production Segment

PMT acquires newly originated loans from correspondent sellers and typically sells or securitizes the loans, resulting in current-period income and additions to its investments in MSRs related to a portion of its production. PMT’s Correspondent Production segment generated pretax income of $11.3 million in the fourth quarter, up from $8.8 million in the prior quarter.

Through its correspondent production activities, PMT acquired a total of $23.6 billion in UPB of loans, up 10 percent from the prior quarter and 14 percent from the fourth quarter of 2022. Of total correspondent acquisitions, government-insured or guaranteed acquisitions totaled $11.0 billion, up 24 percent from the prior quarter, and conventional conforming acquisitions totaled $12.6 billion, down 1 percent from the prior quarter. $2.5 billion of conventional volume was for PMT’s account, down 10 percent from the prior quarter due to seasonal impacts. The remaining $10.1 billion of conventional volume was for PFSI’s account. Interest rate lock commitments on conventional loans for PMT’s account totaled $2.7 billion, down 22 percent from the prior quarter.

Segment revenues were $17.1 million and included net gains on loans acquired for sale of $15.4 million, other income of $3.1 million, which primarily consists of volume-based origination fees, and net interest expense of $1.4 million. Net gains on loans acquired for sale increased $1.8 million from the prior quarter, primarily due to higher margins. Interest income was $16.4 million, up from $14.7 million in the prior quarter, and interest expense was $17.8 million, up from $16.4 million in the prior quarter, both due to higher inventory of loans held for sale at fair value.

Segment expenses were $5.8 million, down from the prior quarter. The weighted average fulfillment fee rate in the fourth quarter was 20 basis points, unchanged from the prior quarter.

Corporate Segment

The Corporate segment includes interest income from cash and short-term investments, management fees, and corporate expenses.

Segment revenues were $1.1 million, down from $2.3 million in the prior quarter. Management fees were $7.3 million, and other segment expenses were $8.9 million.

Taxes

PMT recorded a tax benefit of $12.6 million, driven primarily by fair value declines on MSRs and hedges held in PMT’s taxable subsidiary.

Management’s slide presentation and accompanying materials will be available in the Investor Relations section of the Company’s website at pmt.pennymac.com after the market closes on Thursday, February 1, 2024. Management will also host a conference call and live audio webcast at 6:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pmt.pennymac.com, and a replay will be available shortly after its conclusion.

Individuals who are unable to access the website but would like to receive a copy of the materials should contact the Company’s Investor Relations department at 818.224.7028.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PMT is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). Additional information about PennyMac Mortgage Investment Trust is available at pmt.pennymac.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections and assumptions with respect to, among other things, the Company’s financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: changes in interest rates; the Company’s ability to comply with various federal, state and local laws and regulations that govern its business; changes in the Company’s investment objectives or investment or operational strategies, including any new lines of business or new products and services that may subject it to additional risks; volatility in the Company’s industry, the debt or equity markets, the general economy or the real estate finance and real estate markets; events or circumstances which undermine confidence in the financial and housing markets or otherwise have a broad impact on financial and housing markets; changes in general business, economic, market, employment and domestic and international political conditions, or in consumer confidence and spending habits from those expected; the degree and nature of the Company’s competition; changes in real estate values, housing prices and housing sales; the availability of, and level of competition for, attractive risk-adjusted investment opportunities in mortgage loans and mortgage-related assets that satisfy the Company’s investment objectives; the inherent difficulty in winning bids to acquire mortgage loans, and the Company’s success in doing so; the concentration of credit risks to which the Company is exposed; the Company’s dependence on its manager and servicer, potential conflicts of interest with such entities and their affiliates, and the performance of such entities; changes in personnel and lack of availability of qualified personnel at its manager, servicer or their affiliates; our ability to mitigate cybersecurity risks, cybersecurity incidents and technology disruptions; the availability, terms and deployment of short-term and long-term capital; the adequacy of the Company’s cash reserves and working capital; the Company’s ability to maintain the desired relationship between its financing and the interest rates and maturities of its assets; the timing and amount of cash flows, if any, from the Company’s investments; our substantial amount of indebtedness; the performance, financial condition and liquidity of borrowers; our exposure to risks of loss and disruptions in operations resulting from adverse weather conditions, man-made or natural disasters, climate change and pandemics; the ability of the Company’s servicer, which also provides the Company with fulfillment services, to approve and monitor correspondent sellers and underwrite loans to investor standards; incomplete or inaccurate information or documentation provided by customers or counterparties, or adverse changes in the financial condition of the Company’s customers and counterparties; the Company’s indemnification and repurchase obligations in connection with mortgage loans it purchases and later sells or securitizes; the quality and enforceability of the collateral documentation evidencing the Company’s ownership and rights in the assets in which it invests; increased rates of delinquency, defaults and forbearances and/or decreased recovery rates on the Company’s investments; the performance of mortgage loans underlying mortgage-backed securities in which the Company retains credit risk; the Company’s ability to foreclose on its investments in a timely manner or at all; increased prepayments of the mortgages and other loans underlying the Company’s mortgage-backed securities or relating to the Company’s mortgage servicing rights and other investments; the degree to which the Company’s hedging strategies may or may not protect it from interest rate volatility; the effect of the accuracy of or changes in the estimates the Company makes about uncertainties, contingencies and asset and liability valuations when measuring and reporting upon the Company’s financial condition and results of operations; the Company’s ability to maintain appropriate internal control over financial reporting; the Company’s ability to detect misconduct and fraud; developments in the secondary markets for the Company’s mortgage loan products; legislative and regulatory changes that impact the mortgage loan industry or housing market; regulatory or other changes that impact government agencies or government-sponsored entities, or such changes that increase the cost of doing business with such agencies or entities; the Consumer Financial Protection Bureau and its issued and future rules and the enforcement thereof; changes in government support of homeownership; changes in government or government-sponsored home affordability programs; limitations imposed on the Company’s business and its ability to satisfy complex rules for it to qualify as a REIT for U.S. federal income tax purposes and qualify for an exclusion from the Investment Company Act of 1940 and the ability of certain of the Company’s subsidiaries to qualify as REITs or as taxable REIT subsidiaries for U.S. federal income tax purposes; changes in governmental regulations, accounting treatment, tax rates and similar matters; the Company’s ability to make distributions to its shareholders in the future; the Company’s failure to deal appropriately with issues that may give rise to reputational risk; and the Company’s organizational structure and certain requirements in its charter documents. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

  December 31, 2023 September 30, 2023 December 31, 2022 (in thousands except share amounts) ASSETS Cash

$

281,085

 

$

236,396

 

$

111,866

 

Short-term investments at fair value

 

128,338

 

 

150,059

 

 

252,271

 

Mortgage-backed securities at fair value

 

4,836,292

 

 

4,665,970

 

 

4,462,601

 

Loans acquired for sale at fair value

 

669,018

 

 

1,025,730

 

 

1,821,933

 

Loans at fair value

 

1,433,820

 

 

1,372,118

 

 

1,513,399

 

Derivative assets

 

177,984

 

 

29,750

 

 

84,940

 

Deposits securing credit risk transfer arrangements

 

1,209,498

 

 

1,237,294

 

 

1,325,294

 

Mortgage servicing rights at fair value

 

3,919,107

 

 

4,108,661

 

 

4,012,737

 

Servicing advances

 

206,151

 

 

93,614

 

 

197,972

 

Due from PennyMac Financial Services, Inc.

 

56

 

 

2,252

 

 

3,560

 

Other

 

252,538

 

 

301,492

 

 

134,991

 

Total assets

$

13,113,887

 

$

13,223,336

 

$

13,921,564

 

LIABILITIES Assets sold under agreements to repurchase

$

5,624,558

 

$

6,020,716

 

$

6,616,528

 

Mortgage loan participation and sale agreements

 

-

 

 

23,991

 

 

-

 

Notes payable secured by credit risk transfer and mortgage servicing assets

 

2,910,605

 

 

2,825,591

 

 

2,804,028

 

Unsecured senior notes

 

600,458

 

 

599,754

 

 

546,254

 

Asset-backed financing of variable interest entities at fair value

 

1,336,731

 

 

1,279,059

 

 

1,414,955

 

Interest-only security payable at fair value

 

32,667

 

 

28,288

 

 

21,925

 

Derivative and credit risk transfer strip liabilities at fair value

 

51,381

 

 

140,494

 

 

167,226

 

Accounts payable and accrued liabilities

 

354,989

 

 

92,633

 

 

160,212

 

Due to PennyMac Financial Services, Inc.

 

29,262

 

 

27,613

 

 

36,372

 

Income taxes payable

 

190,003

 

 

202,967

 

 

151,778

 

Liability for losses under representations and warranties

 

26,143

 

 

33,152

 

 

39,471

 

Total liabilities

 

11,156,797

 

 

11,274,258

 

 

11,958,749

 

SHAREHOLDERS' EQUITY Preferred shares of beneficial interest

 

541,482

 

 

541,482

 

 

541,482

 

Common shares of beneficial interest—authorized, 500,000,000 common shares of $0.01 par value; issued and outstanding 86,624,044, 86,760,408 and 88,888,889 common shares, respectively

 

866

 

 

868

 

 

889

 

Additional paid-in capital

 

1,923,437

 

 

1,923,130

 

 

1,947,266

 

Accumulated deficit

 

(508,695

)

 

(516,402

)

 

(526,822

)

Total shareholders' equity

 

1,957,090

 

 

1,949,078

 

 

1,962,815

 

Total liabilities and shareholders' equity

$

13,113,887

 

$

13,223,336

 

$

13,921,564

 

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

  For the Quarterly Periods Ended December 31, 2023 September 30, 2023 December 31, 2022 (in thousands, except per share amounts) Investment Income Net loan servicing fees: From nonaffiliates Servicing fees

$

165,403

 

$

170,561

 

$

169,691

 

Change in fair value of mortgage servicing rights

 

(232,332

)

 

160,926

 

 

(55,039

)

Hedging results

 

(11,191

)

 

(50,689

)

 

(117,228

)

 

(78,120

)

 

280,798

 

 

(2,576

)

From PennyMac Financial Services, Inc.

 

290

 

 

500

 

 

512

 

 

(77,830

)

 

281,298

 

 

(2,064

)

Net gains (losses) on investments and financings

 

164,338

 

 

(109,544

)

 

54,294

 

Net gains on loans acquired for sale

 

15,380

 

 

13,558

 

 

9,755

 

Loan origination fees

 

3,004

 

 

3,226

 

 

9,668

 

Interest income

 

165,278

 

 

158,926

 

 

132,375

 

Interest expense

 

185,523

 

 

183,918

 

 

154,676

 

Net interest expense

 

(20,245

)

 

(24,992

)

 

(22,301

)

Other

 

127

 

 

(117

)

 

15

 

Net investment income

 

84,774

 

 

163,429

 

 

49,367

 

Expenses Earned by PennyMac Financial Services, Inc.: Loan servicing fees

 

20,324

 

 

20,257

 

 

20,245

 

Management fees

 

7,252

 

 

7,175

 

 

7,307

 

Loan fulfillment fees

 

4,931

 

 

5,531

 

 

12,184

 

Professional services

 

2,084

 

 

2,133

 

 

1,898

 

Compensation

 

2,327

 

 

1,961

 

 

1,587

 

Loan origination

 

817

 

 

710

 

 

3,982

 

Loan collection and liquidation

 

1,184

 

 

1,890

 

 

278

 

Safekeeping

 

1,059

 

 

467

 

 

1,799

 

Other

 

4,476

 

 

4,885

 

 

5,569

 

Total expenses

 

44,454

 

 

45,009

 

 

54,849

 

Income (loss) before (benefit from) provision for income taxes

 

40,320

 

 

118,420

 

 

(5,482

)

(Benefit from) provision for income taxes

 

(12,590

)

 

56,998

 

 

(10,145

)

Net income

 

52,910

 

 

61,422

 

 

4,663

 

Dividends on preferred shares

 

10,455

 

 

10,455

 

 

10,456

 

Net income (loss) attributable to common shareholders

$

42,455

 

$

50,967

 

$

(5,793

)

Earnings (losses) per common share Basic

$

0.49

 

$

0.59

 

$

(0.07

)

Diluted

$

0.44

 

$

0.51

 

$

(0.07

)

Weighted average shares outstanding Basic

 

86,659

 

 

86,760

 

 

89,096

 

Diluted

 

110,987

 

 

111,088

 

 

89,096

 

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

  Year ended December 31,

2023

2022

2021

(in thousands, except per share amounts) Net investment income Net loan servicing fees: From nonaffiliates Servicing fees

$

676,446

 

$

651,251

 

$

595,346

 

Change in fair value of mortgage servicing rights

 

(296,847

)

 

449,435

 

 

(337,186

)

Hedging results

 

(92,775

)

 

(204,879

)

 

(345,041

)

 

286,824

 

 

895,807

 

 

(86,881

)

From PennyMac Financial Services, Inc.

 

1,784

 

 

13,744

 

 

50,859

 

 

288,608

 

 

909,551

 

 

(36,022

)

Net gains (losses) on investments financings

 

178,099

 

 

(658,787

)

 

304,079

 

Net gains on loans acquired for sale

 

39,857

 

 

25,692

 

 

87,273

 

Loan origination fees

 

18,231

 

 

52,085

 

 

170,672

 

Interest income

 

639,907

 

 

383,794

 

 

195,239

 

Interest expense

 

735,968

 

 

410,420

 

 

304,737

 

Net interest expense

 

(96,061

)

 

(26,626

)

 

(109,498

)

Other

 

286

 

 

1,856

 

 

3,793

 

Net investment income

 

429,020

 

 

303,771

 

 

420,297

 

Expenses Earned by PennyMac Financial Services, Inc.: Loan servicing fees

 

81,347

 

 

81,915

 

 

80,658

 

Management fees

 

28,762

 

 

31,065

 

 

37,801

 

Loan fulfillment fees

 

27,826

 

 

67,991

 

 

178,927

 

Professional services

 

7,621

 

 

9,569

 

 

11,148

 

Compensation

 

7,106

 

 

5,941

 

 

4,000

 

Loan origination

 

4,602

 

 

12,036

 

 

28,792

 

Loan collection and liquidation

 

4,562

 

 

5,396

 

 

11,279

 

Safekeeping

 

3,766

 

 

8,201

 

 

9,087

 

Other

 

19,033

 

 

18,570

 

 

13,944

 

Total expenses

 

184,625

 

 

240,684

 

 

375,636

 

Income before provision for (benefit from) income taxes

 

244,395

 

 

63,087

 

 

44,661

 

Provision for (benefit from) income taxes

 

44,741

 

 

136,374

 

 

(12,193

)

Net income (loss)

 

199,654

 

 

(73,287

)

 

56,854

 

Dividends on preferred shares

 

41,819

 

 

41,819

 

 

30,891

 

Net income (loss) attributable to common shareholders

$

157,835

 

$

(115,106

)

$

25,963

 

Earnings (loss) per common share Basic

$

1.80

 

$

(1.26

)

$

0.26

 

Diluted

$

1.63

 

$

(1.26

)

$

0.26

 

Weighted average common shares outstanding Basic

 

87,372

 

 

91,434

 

 

97,402

 

Diluted

 

111,700

 

 

91,434

 

 

97,402

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240201225235/en/

Media Kristyn Clark kristyn.clark@pennymac.com 805.395.9943

Investors Kevin Chamberlain Isaac Garden investorrelations@pennymac.com 818.224.7028