PennyMac Mortgage Financial Services reported a rise in income on higher servicing revenue.
During the fourth quarter, the $3.4 billion-asset PennyMac's net income rose 32.1% from the previous year, to $187.2 million. Earnings were 58 cents per share.
Higher servicing-fee income and production income drove much of the overall increase in profits. Net loan servicing fees increased 23.6% from a year ago, to $76.9 million.
The company recorded net gains on mortgage loans held for sale of $78.7 million. That's a 76.4% increase from the same quarter in 2014.
Expenses rose 24.4% to $110 million, on higher employee compensation and technology costs.
"Our mortgage production volumes remained strong despite a seasonally smaller mortgage market and higher interest rates during the quarter," said Chairman and CEO Stanford Kurland.
"Our servicing segment delivered record pretax income, driven primarily by growth in core servicing profitability and MSR valuation gains that were largely offset by hedging activities."
