PennyMac posted a second-quarter profit of $48.2 million as the firm gained traction from a 6% quarterly jump in mortgage banking revenue and benefited from growing servicing and loan production activity.
The firm, which launched its initial public offering in May, also reported revenue of $110.8 million. Net income attributable to common shareholders for the post-IPO period reached $2.8 million, or 22 cents a share.
The mortgage banking business continues to benefit PennyMac, with revenue in the division shooting up 6% quarter-over-quarter to $97.2 million. Meanwhile, total loan production activity grew 2% to $8.9 billion, and Penny’s servicing portfolio grew 23% from March to $44.4 billion.
The only area experiencing a minor slowdown in business activity was the firm’s correspondent lending business.
"Our pace of growth in correspondent lending slowed somewhat, due to higher mortgage rates and the resulting origination market conditions," said PennyMac Chair and CEO Stanford Kurland. "However, we continued to demonstrate significant organic growth in loan servicing, driven by our production activities."