PennyMac Financial Services (PMT) today reported net income of $37.3 million for the fourth quarter of 2013, on revenue of $90.4 million.

Net income attributable to PFSI common stockholders was $6.4 million, or $0.32 per diluted share.

Mortgage Banking revenue of $75.7 million, up 4% from the prior quarter. Investment Management revenue of $14.7 million, up 3% from the prior quarter.

Total loan production activity of $6 billion in unpaid principal balance, down 25% from the prior quarter.

PennyMac’s servicing portfolio reached $78.2 billion in UPB, up 48% from September 30, 2013. Net assets under management totaled $2.0 billion, down 1% from September 30, 2013.

The firm closed and transferred two previously announced bulk mortgage servicing rights (MSR) portfolio acquisitions totaling $20.1 billion in UPB, with co-investment by PennyMac Mortgage Investment Trust in the excess servicing spread.

For the year, PennyMac had pretax income of $182.1 million, up 54% from the prior year, and total net revenue of $386.6 million, up 46% from the prior year.

The company’s mortgage banking revenue was $330.2 million, up 44% from the prior year. Investment management revenue was $56.3 million, up 57% from the prior year. Loan production for the year totaled $31.7 billion, an increase of 44% from the prior year, which includes over $1 billion in originations in PFSI’s retail lending business.

“PennyMac Financial ended a successful year with a solid quarter despite continuing headwinds in the mortgage origination market,” said Chairman and Chief Executive Officer Stanford Kurland. “We successfully completed and transferred two bulk MSR acquisitions, helping to grow our servicing portfolio by 48% and presenting attractive opportunities for our retail lending business. Loan production volumes were lower, driven by a decline in the U.S. origination market. Nevertheless, our mortgage banking revenues increased quarter-over-quarter and we remained focused on expense management, leading to a 19% increase in net income for the quarter.”

[Update 1: Clarifies PennyMac is not a GSE, as originally reported. A perfect storm led to that blunder. The article is now corrected.]