PennyMac Financial Services, Inc. (PFSI) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to PennyMac's Financial Services, Inc.' 's first quarter 2025 earnings call. Additional earnings materials, including presentation slides that will be referred to in this call, are available on PennyMac's financial website at pfsi.pennymac.com. Before we begin, let me remind you that this call may contain forward-looking statements that are subject to certain risks identified on slide two of the earnings presentation that could cause the company's actual results to differ materially, as well as non-GAAP measures that have been reconciled to their GAAP equivalent in the earnings materials. I'd now like to introduce David Spector, Panamax Financials Chairman and Chief Executive Officer, and Dan Perotti, Panamax Financials Chief Financial Officer. Thank you, Operator. Good afternoon and thank you to everyone for participating in our first quarter earnings call. For the first quarter, PFSI reported net income of $76 million for diluted earnings per share of $1.42 for an annualized return on equity of 8%. Excluding the impact of fair value changes, PFSI produced an annualized operating ROE of 15%, driven by continued strength in our servicing business and a solid contribution from our production segment despite elevated mortgage rates. In total, loan originations and acquisitions were $29 billion in unpaid principal balance, driving the continued growth of our servicing portfolio to $680 billion in unpaid principal balance with 2.7 million households. Before reviewing our quarterly results in greater detail, I would like to highlight our newly announced partnership with Team USA and the LA 28 Olympic and Paralympic Games. In recent periods, we have made significant investments in technology and capacity. And given our market position as the seco...