WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--
PennyMac Financial Services, Inc. (NYSE: PFSI) (the “Company”) today
announced that its Board of Directors has authorized a stock repurchase
program under which the Company may repurchase up to $50 million of its
outstanding Class A common stock.
“We believe that the repurchase of common stock will enhance value for
our stockholders,” said Executive Chairman Stanford L. Kurland.
“PennyMac has repeatedly generated after-tax returns on equity that
compare favorably, on a risk-adjusted basis, to other investment
opportunities available to us. Our strong capital position enables us to
deploy capital in stock repurchases alongside our mortgage banking
activities and potential MSR acquisitions.”
The repurchase program allows the Company to repurchase its Class A
common stock using open market stock purchases or privately negotiated
transactions in accordance with applicable rules and regulations. The
number of shares repurchased and the timing of repurchases will depend
on a number of factors, including, but not limited to, stock price,
trading volume and general market conditions, along with working capital
requirements, general business conditions, applicable legal requirements
and other factors. The stock repurchase program does not have an
expiration date and the authorization does not obligate the Company to
acquire any particular amount of Class A common stock. The stock
repurchase program may be suspended, modified or discontinued at any
time at the Company’s discretion without prior notice. The Company
intends to finance the stock repurchase program through cash on hand.
About PennyMac Financial Services, Inc.
PennyMac Financial Services, Inc. is a specialty financial services firm
with a comprehensive mortgage platform and integrated business focused
on the production and servicing of U.S. mortgage loans and the
management of investments related to the U.S. mortgage market. PennyMac
Financial Services, Inc. trades on the New York Stock Exchange under the
symbol “PFSI.” Additional information about PennyMac Financial Services,
Inc. is available at www.ir.pennymacfinancial.com
Forward Looking Statements
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, regarding management’s beliefs, estimates, projections and
assumptions with respect to, among other things, the Company’s financial
results, future operations, business plans and investment strategies, as
well as industry and market conditions, all of which are subject to
change. Words like “believe,” “expect,” “anticipate,” “promise,” “plan,”
and other expressions or words of similar meanings, as well as future or
conditional verbs such as “will,” “would,” “should,” “could,” or “may”
are generally intended to identify forward-looking statements. Actual
results and operations for any future period may vary materially from
those projected herein and from past results discussed herein. Factors
which could cause actual results to differ materially from historical
results or those anticipated include, but are not limited to: the
continually changing federal, state and local laws and regulations
applicable to the highly regulated industry in which we operate;
lawsuits or governmental actions that may result from any noncompliance
with the laws and regulations applicable to our businesses; the mortgage
lending and servicing-related regulations promulgated by the Consumer
Financial Protection Bureau and its enforcement of these regulations;
our dependence on U.S. government-sponsored entities and changes in
their current roles or their guarantees or guidelines; changes to
government mortgage modification programs; the licensing and operational
requirements of states and other jurisdictions applicable to the
Company’s businesses, to which our bank competitors are not subject;
foreclosure delays and changes in foreclosure practices; certain banking
regulations that may limit our business activities; our dependence on
the multifamily and commercial real estate sectors for future
originations of commercial mortgage loans and other commercial real
estate related loans; changes in macroeconomic and U.S. real estate
market conditions; difficulties inherent in growing loan production
volume; difficulties inherent in adjusting the size of our operations to
reflect changes in business levels; purchase opportunities for mortgage
servicing rights and our success in winning bids; changes in prevailing
interest rates; increases in loan delinquencies and defaults; our
reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a
significant source of financing for, and revenue related to, our
mortgage banking business; any required additional capital and liquidity
to support business growth that may not be available on acceptable
terms, if at all; our obligation to indemnify third-party purchasers or
repurchase loans if loans that we originate, acquire, service or assist
in the fulfillment of, fail to meet certain criteria or characteristics
or under other circumstances; our obligation to indemnify PMT and the
Investment Funds if its services fail to meet certain criteria or
characteristics or under other circumstances; decreases in the returns
on the assets that we select and manage for our clients, and our
resulting management and incentive fees; the extensive amount of
regulation applicable to our investment management segment; conflicts of
interest in allocating our services and investment opportunities among
us and our advised entities; the effect of public opinion on our
reputation; our recent growth; our ability to effectively identify,
manage, monitor and mitigate financial risks; our initiation of new
business activities or expansion of existing business activities; our
ability to detect misconduct and fraud; and our ability to mitigate
cybersecurity risks and cyber incidents. You should not place undue
reliance on any forward-looking statement and should consider all of the
uncertainties and risks described above, as well as those more fully
discussed in reports and other documents filed by the Company with the
Securities and Exchange Commission from time to time. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements or any other information contained herein,
and the statements made in this press release are current as of the date
of this release only.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170621006282/en/
PennyMac Financial Services, Inc.
Media
Stephen Hagey
(805)
530-5817
or
Investors
Christopher Oltmann
(818)
264-4907
Source: PennyMac Financial Services, Inc.