Net income to shareholders was $2.79 per share for the quarter, compared to $5.97 a year ago. Total revenue for the quarter was nearly $501 million, compared to $859 million in the same quarter a year earlier.
Mortgage lender and servicing agent pre-tax income was $234.1 million, down 31% from the prior quarter and 62% from the fourth quarter of 2020.
PennyMac’s services portfolio grew 3% from the prior quarter and 19% from December 2021. Portfolio growth was driven by production volumes which strongly offset increased service activity. prepayment.
Chief executive David Spector said the company’s fourth quarter demonstrates the earnings power of its mortgage banking model, adding that PennyMac’s pretax income from its service business exceeded that from its manufacturing business.
“The market share of our most profitable channel, direct consumer, has increased significantly since last year, which will improve the long-term earnings profile of our production business over time,” said Spector in a statement.
The company’s total net revenue in 2021 of $3.2 billion was down from $3.7 billion in 2020. Net income for the entire year was also down to $1 billion from $1.6 billion in 2020.
PennyMac shares closed up 49 cents, or a fraction of a percent, at $59.20 on the Nasdaq on Friday, a day the market closed nearly 1.6% higher.