Pennymac Q4 performance

In the fourth quarter, it reported net income of $36.1 million, or $0.41 per diluted common share.

Despite market fluctuations, the mortgage real estate investment trust (REIT) said it saw continued investment activity and expects a robust securitization pipeline heading into 2025.

PennyMac’s net investment income for Q4 totaled $107.9 million, contributing to an annualized return on average common equity of 10%. The company announced a $0.40 per-share dividend for the fourth quarter, which was paid on Jan. 24, 2025, to shareholders of record as of Dec. 27, 2024. The book value per common share rose slightly to $15.87 from $15.85 at the end of the prior quarter.

The quarter’s investment activity was largely fueled by correspondent loan production, which reached $3.5 billion in unpaid principal balance (UPB). While this was down 41% from the previous quarter – due to the sale of conventional loans to PennyMac Financial Services (PFSI) – it reflected a 41% year-over-year increase.

PennyMac renewed its management and services agreement with PFSI for another five years. After the quarter ended, the company closed an additional securitization of agency-eligible investor loans worth $341 million in UPB and added $21 million in net new investments in non-agency subordinate bonds.