PMT PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust (NYSE: PMT) today reported a net loss attributable to common shareholders of $5.8 million, or $(0.07) per common share on a diluted basis for the fourth quarter of 2022, on net investment income of $49.4 million. PMT previously announced a cash dividend for the fourth quarter of 2022 of $0.40 per common share of beneficial interest, which was declared on December 7, 2022 and paid on January 27, 2023 to common shareholders of record as of December 30, 2022.

Fourth Quarter 2022 Highlights

Financial results:

• Net loss attributable to common shareholders of $5.8 million, compared to net income of $1.5 million in the prior quarter
  • Solid income excluding the impacts of market-driven fair value changes was more than offset by fair value declines in PMT’s interest rate and credit sensitive strategies
• Repurchased 1.2 million common shares of PMT at an average price of $11.80 per share for a cost of $14.2 million; also repurchased an additional 22 thousand shares through January 31 at an average price of $12.63 per share for a cost of $0.3 million
• Book value per common share decreased to $15.78 at December 31, 2022 from $16.18 at September 30, 2022

Other investment highlights:

• Investment activity driven by correspondent production volumes
  • Conventional correspondent loan production volumes for PMT’s account totaled $6.8 billion in unpaid principal balance (UPB), down 34% from 3Q22 as a result of the sale of certain conventional loans to PFSI and down 61% from 4Q21
    • Resulted in the creation of $127 million in new MSRs

Notable activity after quarter end

• PMT exercised its option to extend the maturity for the CRT term notes originally due in March 2023 for two years

Full-Year 2022 Highlights

Financial Results:

• Net loss of $73.3 million, versus net income of $56.9 million in 2021
• Net loss attributable to common shareholders of $115.1 million, versus net income attributable to common shareholders of $26.0 million in 2021; diluted earnings per common share of $(1.26) versus $0.26 in 2021
• Dividends of $1.81 per common share
• Net investment income of $303.8 million, down from $420.3 million in 2021
• Return on average common equity of (7.2)%1

1Return 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 reported a net loss in the fourth quarter as solid performance excluding the impacts of fair value changes was offset by fair value declines in its interest rate and credit sensitive strategies,” said Chairman and CEO David Spector. “While performance in recent periods has not met our expectations, relative performance over the long-term remains strong as PMT’s shareholder returns remain well-above comparable indices and its peer group. Additionally, we have seen a material improvement in credit markets in early 2023 as well as increased interest rate stability. With PMT’s current portfolio of seasoned investments in credit risk transfer and hedged mortgage servicing rights, we remain confident in its ability to deliver attractive returns to its shareholders over the long term.”

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, 2022 Credit sensitivestrategies Interest ratesensitive strategies Correspondentproduction Corporate Consolidated     (in thousands) Net investment income (loss): Net gains on investments and financings CRT investments

$

8,482

 

$

-

 

$

-

$

-

 

$

8,482

 

Distressed loans

 

182

 

 

-

 

 

-

 

-

 

 

182

 

Loans held by variable interest entity net of asset-backed secured financing

 

1,888

 

 

-

 

 

-

 

-

 

 

1,888

 

Mortgage-backed securities

 

655

 

 

43,087

 

 

-

 

-

 

 

43,742

 

 

11,207

 

 

43,087

 

 

-

 

-

 

 

54,294

 

Net gains on loans acquired for sale

 

-

 

 

-

 

 

9,755

 

-

 

 

9,755

 

Net loan servicing fees

 

-

 

 

(2,064

)

 

-

 

-

 

 

(2,064

)

Net interest expense: Interest income

 

18,419

 

 

80,369

 

 

32,629

 

958

 

 

132,375

 

Interest expense

 

17,731

 

 

107,682

 

 

28,552

 

711

 

 

154,676

 

 

688

 

 

(27,313

)

 

4,077

 

247

 

 

(22,301

)

Other

 

(699

)

 

-

 

 

9,835

 

547

 

 

9,683

 

 

11,196

 

 

13,710

 

 

23,667

 

794

 

 

49,367

 

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

 

52

 

 

20,193

 

 

12,184

 

-

 

 

32,429

 

Management fees payable to PennyMac Financial Services, Inc.

 

-

 

 

-

 

 

-

 

7,307

 

 

7,307

 

Other

 

333

 

 

2,803

 

 

4,354

 

7,623

 

 

15,113

 

$

385

 

$

22,996

 

$

16,538

$

14,930

 

$

54,849

 

Pretax income (loss)

$

10,811

 

$

(9,286

)

$

7,129

$

(14,136

)

$

(5,482

)

Credit Sensitive Strategies Segment

The Credit Sensitive Strategies segment primarily includes results from PMT’s organically-created government sponsored enterprise (GSE) credit risk transfer (CRT) investments, investments in non-agency subordinate bonds from private-label securitizations of PMT’s production, opportunistic investments in GSE CRT and legacy investments. Pretax income for the segment was $10.8 million on net investment income of $11.2 million, compared to a pretax loss of $3.7 million on net investment losses of $2.9 million in the prior quarter.

Net gains on investments in the segment were $11.2 million, compared to net losses on investments of $2.2 million in the prior quarter and included $8.5 million in net gains on PMT’s organically-created GSE CRT investments, $1.9 million in net gains from investments in non-agency subordinate bonds from PMT’s production, $0.7 million in net gains on other acquired subordinate CRT mortgage-backed securities (MBS), and $0.2 million in gains on distressed loans.

Net gains on PMT’s organically-created CRT investments for the quarter were $8.5 million, compared to $4.4 million in the prior quarter, and included $8.1 million in valuation-related losses, which reflected the impact of continued credit spread widening. The prior quarter included $14.2 million of such losses. Net gains on PMT’s organically-created CRT investments also included $17.8 million in realized gains and carry, compared to $18.8 million in the prior quarter. Realized losses during the quarter were $1.2 million, compared to $0.2 million in the prior quarter.

Net interest income for the segment totaled $0.7 million, compared to net interest expense of $1.7 million in the prior quarter. Interest income totaled $18.4 million, up from $12.4 million in the prior quarter primarily due to higher earnings rates on deposits securing CRT arrangements. Interest expense totaled $17.7 million, up from $14.1 million in the prior quarter due to increases in short-term interest rates.

Segment expenses were $0.4 million, down from $0.8 million in 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 $9.3 million on net investment income of $13.7 million, compared to pretax income of $103.5 million on net investment income of $126.4 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 increasing interest rates, MSRs are expected to increase in fair value whereas Agency pass-through and non-Agency senior MBS are expected to decrease 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 $43.1 million and consisted of gains on MBS due to tighter mortgage spreads.

Net loan servicing fees were $(2.1) million, compared to $390.1 million in the prior quarter. Net loan servicing fees included servicing fees of $164.2 million and $5.5 million in other fees, reduced by $99.0 million in realization of MSR cash flows, which was up from the prior quarter due to higher average MSR balances. Net loan servicing fees also included $43.9 million in fair value increases of MSRs, $117.2 million in hedging losses primarily driven by hedge costs and higher interest rates, and $0.5 million of MSR recapture income. PMT’s hedging activities are intended to manage the Company’s net exposure across all interest rate sensitive strategies, which include MSRs and MBS.

The following schedule details net loan servicing fees:

Quarter ended December 31, 2022 September 30, 2022 December 31, 2021 (in thousands) From non-affiliates: Contractually specified

$

164,189

 

$

162,987

 

$

148,135

 

Other fees

 

5,502

 

 

4,246

 

 

13,994

 

Effect of MSRs: Carried at fair value—change in fair value Realization of cashflows

 

(98,974

)

 

(95,756

)

 

(87,734

)

Due to changes in valuation inputs used in valuation model

 

43,935

 

 

162,730

 

 

(83,995

)

 

(55,039

)

 

66,974

 

 

(171,729

)

(Losses) gains on hedging derivatives

 

(117,228

)

 

154,269

 

 

9,087

 

 

(172,267

)

 

221,243

 

 

(162,642

)

 

(2,576

)

 

388,476

 

 

(513

)

From PFSI—MSR recapture income

 

512

 

 

1,648

 

 

12,701

 

Net loan servicing fees

$

(2,064

)

$

390,124

 

$

12,188

 

MSR fair value increased by $43.9 million in the quarter as realized prepayment speeds were lower than expected and due to expectations for lower prepayment activity in the future.

Net interest expense for the segment was $27.3 million, versus net interest expense of $12.6 million in the prior quarter. Interest income totaled $80.4 million, up from $68.2 million in the prior quarter primarily due to higher average MBS balances and increased placement fee income on custodial balances. Interest expense totaled $107.7 million, up from $80.8 million in the prior quarter primarily due to higher financing costs on larger average MSR and MBS balances driven by higher short-term interest rates.

Segment expenses were $23.0 million, essentially unchanged 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 $7.1 million, up from $6.1 million in the prior quarter.

Through its correspondent production activities, PMT acquired $20.8 billion in UPB of loans, down 7 percent from the prior quarter and 37 percent from the fourth quarter of 2021. Of total correspondent acquisitions, conventional conforming acquisitions totaled $10.7 billion, up 4 percent from the prior quarter and government-insured or guaranteed acquisitions totaled $10.1 billion, down 17 percent from the prior quarter. $6.8 billion of conventional correspondent production was for PMT’s own account and $3.9 billion was for PFSI’s account. Interest rate lock commitments on conventional loans for PMT’s account totaled $7.5 billion, down from $10.6 billion in the prior quarter primarily due to the sale of certain conventional loans to PFSI.

Segment revenues were $23.7 million, a 13 percent decrease from the prior quarter and included net gains on loans acquired for sale of $9.8 million, other income of $9.8 million, which primarily consists of volume-based origination fees, and net interest income of $4.1 million. Net gains on loans acquired for sale in the quarter increased by $5.4 million from the prior quarter as a result of higher margins on the loans held for PMT’s own account. Interest income was $32.6 million, up from $27.9 million in the prior quarter, and interest expense was $28.6 million, up from $18.3 million in the prior quarter, both due to higher interest rates.

Segment expenses were $16.5 million, down from $21.2 million in the prior quarter driven by the decrease in acquisition volumes. The weighted average fulfillment fee rate in the fourth quarter was 18 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 $0.8 million, up from $0.4 million in the prior quarter. Management fees were $7.3 million, down from $7.7 million in the prior quarter. Other segment expenses were $7.6 million, down from $8.1 million in the prior quarter.

Taxes

PMT recorded a tax benefit of $10.1 million driven by fair value declines on PMT interest rate hedges held in PMT’s taxable subsidiary.

Management’s slide presentation will be available in the Investor Relations section of the Company’s website at pmt.pennymac.com beginning after the market closes on Thursday, February 2, 2023.

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; declines in real estate or significant changes in U.S. housing prices or activity in the U.S. housing market; 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; 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 such as COVID-19; 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; technologies for loans and the Company’s ability to mitigate security risks and cyber intrusions; the Company’s ability to obtain and/or maintain licenses and other approvals in those jurisdictions where required to conduct its business; 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; changes in regulations or the occurrence of other events that impact the business, operations or prospects of government agencies such as the Government National Mortgage Association, the Federal Housing Administration or the Veterans Administration, the U.S. Department of Agriculture, or government-sponsored entities such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, or such changes that increase the cost of doing business with such entities; legislative and regulatory changes that impact the business, operations or governance of mortgage lenders and/or publicly-traded companies; 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, as applicable, and the Company’s ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; 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, 2022 September 30, 2022 December 31, 2021 (in thousands except share amounts) ASSETS Cash

$

111,866

 

$

58,931

 

$

58,983

 

Short-term investments at fair value

 

252,271

 

 

352,343

 

 

167,999

 

Mortgage-backed securities at fair value

 

4,462,601

 

 

3,880,288

 

 

2,666,768

 

Loans acquired for sale at fair value

 

1,821,933

 

 

2,259,645

 

 

4,171,025

 

Loans at fair value

 

1,513,399

 

 

1,522,934

 

 

1,568,726

 

Derivative assets

 

84,940

 

 

74,659

 

 

34,238

 

Deposits securing credit risk transfer arrangements

 

1,325,294

 

 

1,369,236

 

 

1,704,911

 

Mortgage servicing rights at fair value

 

4,012,737

 

 

3,940,584

 

 

2,892,855

 

Servicing advances

 

197,972

 

 

81,399

 

 

204,951

 

Due from PennyMac Financial Services, Inc.

 

3,560

 

 

3,560

 

 

15,953

 

Other

 

134,991

 

 

402,361

 

 

286,299

 

Total assets

$

13,921,564

 

$

13,945,940

 

$

13,772,708

 

LIABILITIES Assets sold under agreements to repurchase

$

6,616,528

 

$

6,409,796

 

$

6,671,890

 

Mortgage loan participation and sale agreements

 

-

 

 

16,999

 

 

49,988

 

Notes payable secured by credit risk transfer and mortgage servicing assets

 

2,804,028

 

 

2,829,160

 

 

2,471,961

 

Exchangeable senior notes

 

546,254

 

 

545,521

 

 

502,459

 

Asset-backed financing of variable interest entities at fair value

 

1,414,955

 

 

1,424,473

 

 

1,469,999

 

Interest-only security payable at fair value

 

21,925

 

 

21,186

 

 

10,593

 

Derivative and credit risk transfer strip liabilities at fair value

 

167,226

 

 

351,383

 

 

42,206

 

Accounts payable and accrued liabilities

 

160,212

 

 

98,170

 

 

96,156

 

Due to PennyMac Financial Services, Inc.

 

36,372

 

 

32,306

 

 

40,091

 

Income taxes payable

 

151,778

 

 

160,117

 

 

9,598

 

Liability for losses under representations and warranties

 

39,471

 

 

39,498

 

 

40,249

 

Total liabilities

 

11,958,749

 

 

11,928,609

 

 

11,405,190

 

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 88,888,889, 90,094,066 and 94,897,255 common shares, respectively

 

889

 

 

901

 

 

949

 

Additional paid-in capital

 

1,947,266

 

 

1,960,320

 

 

2,081,757

 

Accumulated deficit

 

(526,822

)

 

(485,372

)

 

(256,670

)

Total shareholders' equity

 

1,962,815

 

 

2,017,331

 

 

2,367,518

 

Total liabilities and shareholders' equity

$

13,921,564

 

$

13,945,940

 

$

13,772,708

 

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

  For the Quarterly Periods Ended December 31, 2022 September 30, 2022 December 31, 2021 (in thousands, except per share amounts) Investment Income Net loan servicing fees: From nonaffiliates Servicing fees

$

169,691

 

$

167,233

 

$

162,129

 

Change in fair value of mortgage servicing rights

 

(55,039

)

 

66,974

 

 

(171,729

)

Hedging results

 

(117,228

)

 

154,269

 

 

9,087

 

 

(2,576

)

 

388,476

 

 

(513

)

From PennyMac Financial Services, Inc.

 

512

 

 

1,648

 

 

12,701

 

 

(2,064

)

 

390,124

 

 

12,188

 

Net gains (losses) on investments and financings

 

54,294

 

 

(253,336

)

 

35,177

 

Net gains (losses) on loans acquired for sale

 

9,755

 

 

4,313

 

 

(9,661

)

Loan origination fees

 

9,668

 

 

13,215

 

 

27,867

 

Interest income

 

132,375

 

 

109,658

 

 

55,680

 

Interest expense

 

154,676

 

 

114,080

 

 

73,738

 

Net interest expense

 

(22,301

)

 

(4,422

)

 

(18,058

)

Other

 

15

 

 

1,171

 

 

1,967

 

Net investment income

 

49,367

 

 

151,065

 

 

49,480

 

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

 

20,245

 

 

20,247

 

 

20,847

 

Loan fulfillment fees

 

12,184

 

 

18,407

 

 

20,150

 

Management fees

 

7,307

 

 

7,731

 

 

8,919

 

Loan origination

 

3,982

 

 

2,430

 

 

4,904

 

Professional services

 

1,898

 

 

2,394

 

 

6,078

 

Safekeeping

 

1,799

 

 

2,986

 

 

2,248

 

Loan collection and liquidation

 

278

 

 

690

 

 

1,321

 

Compensation

 

1,587

 

 

1,368

 

 

870

 

Other

 

5,569

 

 

4,433

 

 

3,652

 

Total expenses

 

54,849

 

 

60,686

 

 

68,989

 

(Loss) income before (benefit from) provision for income taxes

 

(5,482

)

 

90,379

 

 

(19,509

)

(Benefit from) provision for income taxes

 

(10,145

)

 

78,466

 

 

(2,622

)

Net income (loss)

 

4,663

 

 

11,913

 

 

(16,887

)

Dividends on preferred shares

 

10,456

 

 

10,455

 

 

10,454

 

Net (loss) income attributable to common shareholders

$

(5,793

)

$

1,458

 

$

(27,341

)

(Loss) earnings per common share Basic

$

(0.07

)

$

0.01

 

$

(0.28

)

Diluted

$

(0.07

)

$

0.01

 

$

(0.28

)

Weighted average shares outstanding Basic

 

89,096

 

 

90,594

 

 

96,306

 

Diluted

 

89,096

 

 

90,594

 

 

96,306

 

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

  Year ended December 31,

 

2022

 

 

2021

 

 

2020

 

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

$

651,251

 

$

595,346

 

$

462,517

 

Change in fair value of mortgage servicing rights

 

449,435

 

 

(337,186

)

 

(938,937

)

Hedging results

 

(204,879

)

 

(345,041

)

 

601,743

 

 

895,807

 

 

(86,881

)

 

125,323

 

From PennyMac Financial Services, Inc.

 

13,744

 

 

50,859

 

 

28,373

 

 

909,551

 

 

(36,022

)

 

153,696

 

Net (losses) gains on investments and financings

 

(658,787

)

 

304,079

 

 

(170,885

)

Net gains on loans acquired for sale

 

25,692

 

 

87,273

 

 

379,922

 

Loan origination fees

 

52,085

 

 

170,672

 

 

147,272

 

Interest income

 

383,794

 

 

195,239

 

 

222,135

 

Interest expense

 

410,420

 

 

304,737

 

 

270,770

 

Net interest expense

 

(26,626

)

 

(109,498

)

 

(48,635

)

Other

 

1,856

 

 

3,793

 

 

7,981

 

Net investment income

 

303,771

 

 

420,297

 

 

469,351

 

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

 

81,915

 

 

80,658

 

 

67,181

 

Loan fulfillment fees

 

67,991

 

 

178,927

 

 

222,200

 

Management fees

 

31,065

 

 

37,801

 

 

34,538

 

Loan origination

 

12,036

 

 

28,792

 

 

26,437

 

Professional services

 

9,569

 

 

11,148

 

 

6,405

 

Safekeeping

 

8,201

 

 

9,087

 

 

7,090

 

Loan collection and liquidation

 

5,396

 

 

11,279

 

 

10,363

 

Compensation

 

5,941

 

 

4,000

 

 

3,890

 

Other

 

18,570

 

 

13,944

 

 

11,517

 

Total expenses

 

240,684

 

 

375,636

 

 

389,621

 

Income before provision for (benefit from) income taxes

 

63,087

 

 

44,661

 

 

79,730

 

Provision for (benefit from) income taxes

 

136,374

 

 

(12,193

)

 

27,357

 

Net (loss) income

 

(73,287

)

 

56,854

 

 

52,373

 

Dividends on preferred shares

 

41,819

 

 

30,891

 

 

24,938

 

Net (loss) income attributable to common shareholders

$

(115,106

)

$

25,963

 

$

27,435

 

(Loss) earnings per common share Basic

$

(1.26

)

$

0.26

 

$

0.27

 

Diluted

$

(1.26

)

$

0.26

 

$

0.27

 

Weighted average common shares outstanding Basic

 

91,434

 

 

97,402

 

 

99,373

 

Diluted

 

91,434

 

 

97,402

 

 

99,373

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230202005787/en/

Media Kristyn Clark kristyn.clark@pennymac.com (805) 395-9943

Investors Kevin Chamberlain Isaac Garden investorrelations@pennymac.com (818) 224-7028