PennyMac Profits Rise on Loan Servicing

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PennyMac Mortgage Investment Trust and its sister company, PennyMac Financial Services, on Thursday reported a rise in quarterly profits.

The $4.6 billion-asset PennyMac Mortgage Investment Trust earned $54.9 million in the third quarter, or 38% more than a year ago. Earnings were 69 cents per share.

Profits were boosted by gains from investments, which increased 43%, to $70.4 million. Loan servicing fees rose 58%, to $10.5 million.

Revenue from acquired mortgages dipped slightly, falling 14%, to $9.5 million. Total expenses fell 3%, to $48.6 million.

Meanwhile, third-quarter profits at the $2.5 billion-asset PennyMac Financial Services increased 76% from last year, to $55.5 million. Earnings were 49 cents per share.

The jump in quarterly revenue is mostly due to higher loan servicing fees, which more than doubled, to $64.7 million.

Expenses grew, as well, rising 49%, to $77.9 million.

Both PennyMac companies are based in Moorpark, Calif.

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