Westlake Village-based PennyMac Financial Services released fourth-quarter and full 2021 results Friday, reporting a net income of $173 million and a decline in profits.
Net income to shareholders was $2.79 per share for the quarter, compared to $5.97 a year ago. Total revenue for the quarter came to nearly $501 million, compared to $859 million in the same quarter the previous year.
Pretax income for the mortgage lender and servicer was $234.1 million, a 31 percent decrease from the previous quarter and 62 percent decline from the fourth quarter of 2020.
PennyMac’s servicing portfolio grew 3 percent from the previous quarter and 19 percent from Dec. 2021. The portfolio growth was driven by production volumes that acted as a strong offset to heightened prepayment activity.
Chief Executive David Spector said that the company’s fourth quarter demonstrates the earnings power of its mortgage banking model, adding that PennyMac’s pretax income from its servicing business exceeded that from its production business.
“Market share in our most profitable channel, consumer direct, has increased meaningfully since last year, which will improve the long-term earnings profile of our production business over time,” Spector said in a statement.
The company’s 2021 total net revenue of $3.2 billion was down from $3.7 billion in 2020. Full-year net income was also down to $1 billion compared to $1.6 billion in 2020.
Shares of PennyMac closed up 49 cents, or a fraction of a percent, to $59.20 on the Nasdaq Friday, a day when the market closed up nearly 1.6 percent.