In its first earnings report since its May IPO, PennyMac Financial Services reported disappointing profit figures but beat analysts’ revenue estimates due to strong mortgage-banking growth.
The Moorpark company reported net income of $48.2 million (38 cents) for the second quarter ended June 30 on revenue of $111 million.
Analysts on average had expected net income of 59 cents a share on revenue of $106 million, according to Thomson Financial.
The company produces and services U.S. residential mortgage loans and is an affiliate of publicly held mortgage REIT PennyMac Mortgage Investment Trust. Stanford Kurland, the former president of Countrywide Financial, is chief executive of both companies.
The company reported growth in all categories, including mortgage banking, which rose 6 percent to $97 million.
“PennyMac Financial is building the leading non-bank mortgage specialist company and continues to demonstrate growth in all of our underlying business drivers,” said Kurland in a prepared statement.
Profit at PennyMac Mortgage
Separately, PennyMac Mortgage Investment Trust reported higher second-quarter profit and revenue, citing additional investments in distressed debt and growth in its lending business.
The real estate investment trust, also based in Moorpark, reported net income of $54.5 million (86 cents a share) in the quarter ended June 30, compared with $29.6 million (79 cents) in the same period a year earlier. Revenue increased 101 percent to $130 million.
The REIT primarily invests in distressed residential mortgages and other mortgage-related assets but also does correspondent lending, originating and packaging loans for sales to banks. Revenue from its lending business rose 42 percent to $58.5 million.
Chief Executive Stanford Kurland attributed the increased profit to a combination of new investments in distressed whole loans, the acquisition of a bulk portfolio of jumbo loans and the growth in lending.
“The ability to pursue diverse and changing opportunities across the mortgage landscape differentiates (the company) from other mortgage REITs, and we continue to pursue new opportunities for growth as we head into the second half of 2013,” he said in a prepared statement.