PennyMac Mortgage Investment Trust (NYSE: PMT) and PennyMac Financial Services, Inc. (NYSE: PFSI) reported impressive financial results for the fourth quarter of 2024.

PennyMac Mortgage Investment Trust (PMT), a leading residential mortgage REIT, announced that its Q4 2024 net income was $36.1 million, or $0.41 per share, surpassing the consensus estimate of $0.38 per share. The company's revenue for the quarter was $107.93 million, beating analysts' expectations of $93.95 million.

Key highlights from PMT's Q4 2024 results:

• Net investment income increased by 27.3% year-over-year, driven by higher net loan servicing fees and loan origination fees.
• Loan servicing fees grew to $207.42 million, exceeding estimates, due to the company's expanding servicing portfolio.
• Net gains on loans acquired for sale were $26.39 million, reflecting strong demand for mortgage loans.

On the other hand, PennyMac Financial Services, Inc. (PFSI), a leading mortgage lender and servicer, reported total net revenue of $470.11 million for Q4 2024, representing a 29.9% year-over-year increase. The company's net income rose to $104.49 million, or $1.95 per diluted share, compared to a net loss of $36.84 million in the same quarter last year.

Highlights from PFSI's Q4 2024 results:

• Total loan production reached $35.7 billion in unpaid principal balance (UPB), up 34% from Q4 2023.
• The servicing portfolio grew to $665.8 billion in UPB, a 10% increase from the prior year.
• Net loan servicing fees soared to $189.27 million, driven by growth in the owned mortgage servicing rights (MSR) portfolio.

The strong financial performance of both companies highlights the robust demand for mortgage loans and the effective execution of their business strategies in the residential mortgage market.