PennyMac Financial (NYSE:PFSI) Services, Inc. (NYSE:PFSI), a $5.16 billion market cap mortgage banking firm, has officially decreased the size of its Board of Directors from thirteen to eleven members, according to a filing with the Securities and Exchange Commission today. This change comes in the wake of the retirements of James K. Hunt and Emily Youssouf on December 31, 2024.
The adjustment was made through the adoption of the Fourth Amended and Restated Stockholder Agreement and the Third Amendment to the Amended and Restated Bylaws. These amendments reflect the company's move to streamline its governance structure following the departure of the two board members.
PennyMac Financial Services, a mortgage banking and loan servicing company based in Westlake Village, California, has not indicated any immediate plans to replace the retired directors. The Third Amendment to the Bylaws and the Fourth Amended and Restated Stockholder Agreement are detailed in Exhibits 3.1 and 10.1, respectively, of the 8-K filing.
The company's stock, which is traded under the ticker PFSI, will continue to be listed on the New York Stock Exchange. PennyMac Financial Services has not disclosed any further changes to its operations or governance as a result of this board reduction.
The information contained in this article is based on a press release statement.
In other recent news, PennyMac Financial Services has been a focal point of financial services company, Jefferies, who maintained a positive stance on the firm, reiterating a Buy rating and a price target of $130.00.
Jefferies predicts PennyMac's broker channel market share will grow to approximately 8% by 2026, a significant increase from the current 4%. This growth is in line with the company's impressive 83.37% revenue growth over the last twelve months.
Recent developments also highlighted PennyMac's strategy of expanding its broker channel, leveraging its proprietary technology to improve servicing economics, and growing its fee-based subservicing income. Jefferies has adjusted its earnings per share estimates for 2025 and 2026 to $13.53 and $15.94, respectively, based on this growth trajectory.
In the latest earnings call, PennyMac Financial reported a significant rise in net income and robust growth in its Production segment for the third quarter of 2024. The company posted a net income of $69 million and an annualized return on equity of 8%.
The Production segment saw its pretax income nearly triple due to lower mortgage rates prompting refinancing, while the servicing portfolio expanded to service approximately 2.6 million customers. Despite a 30% decline in market activity due to rising interest rates, the Broker Direct channel increased its market share to 4%.
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