PennyMac Financial Reports Profits As Investment Trust Post Third Quarter Loss

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Westlake Village-based PennyMac Financial Services saw third quarter net income decline from a year ago, but officials cited “outstanding financial performance” in other areas in results released on November 4. .

The mortgage lender and loan manager reported third quarter net income of $ 249.3 million, or $ 3.80 per share on a diluted basis, on income of $ 786.6 million. For the same quarter in 2020, PennyMac reported net income of $ 535.2 million, or $ 7.03 per share on a diluted basis, on revenue of $ 1.1 billion.

The company reported third quarter profit before tax of $ 339.5 million, down 53% from the same quarter last year.

PennyMac shares rose 3.7% on November 5 to close at $ 66.95.

PennyMac’s third quarter report says the company repurchased approximately 4.2 million common shares at a cost of $ 257.3 million, and also repurchased an additional 1.4 million shares in October at a cost of $ 89.7 million.

“PennyMac Financial delivered exceptional financial performance in the third quarter with an annualized return on equity of 29%,” said David Spector, president and CEO of PennyMac Financial Services, in a press release. “The increase in earnings over last quarter was due to strong execution in our direct consumer credit channel in particular, which locked in and funded record volumes. “

PennyMac also issued $ 500 million in 10-year senior unsecured notes in the third quarter, “consolidating its leadership position in the industry and joining a small handful of non-bank mortgage companies able to raise unsecured debt at long term, ”the company said.

Direct consumer interest rate foreclosure commitments accounted for $ 16.3 billion in outstanding principal balance, up 50% from the third quarter of 2020.

PennyMac’s board of directors also declared a third quarter cash dividend of 20 cents per share, payable November 24 to common shareholders of record on November 15.

PennyMac Mortgage Investment Trust, a real estate investment trust managed by PennyMac Financial Services, also announced its quarterly results on November 4. The company lost $ 43.9 million in the third quarter, or 45 cents per share, down from positive net income of $ 31.9 million. in the same quarter of 2020.

Net assets under management were $ 2.5 billion, an increase of 9% from the third quarter of 2020.

Shares of PennyMac Mortgage Investment Trust fell 4.2% on November 5 to close at $ 19.26.


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