PSMH: $50 Million March Loan Production - Analyst Blog
April 27 2012 - 5:33AM
Zacks
PSMH: $50 Million March Loan Production
Ann Heffron, CFA
PSM Holdings, Inc. (PSMH)
announced that it had achieved $50 million in loan production for
the month of March, a record for the Company, reflecting its
acquisitions of five mortgage banking companies over the last year.
This level of originations is consistent with our projections, and
we are making no changes to our earnings estimates at this time.
PSMH should report fiscal third quarter earnings for the period
ending March 31, 2012 in mid-May, as it typically does.
We note that this is the first time PSMH has disclosed its monthly
mortgage originations and that there will be a one-month time lag
between the reporting date and disclosure date. We welcome PSMH’s
improved disclosure, as it provides investors with greater insight
into the operations of the Company.
PSM Holdings, Inc. is engaged in the businesses of mortgage
banking, in which PSMH both originates and funds mortgage loans
through its own warehouse lines of credit and currently accounts
for about 90% of closed loans, as well as mortgage brokerage, in
which PSMH originates mortgage loans funded by over 50 third-party
lenders. PSMH immediately sells these loans to its third-party
lenders or into the secondary mortgage market. The Company offers a
full range of mortgage loan products, including adjustable rate
mortgages, fifteen, twenty, and thirty-year fixed rate loans, and
balloon loans with a variety of maturities, as well as refinancing,
construction loans, second mortgages, debt consolidation, and home
equity loans.
PSMH had total assets of $5.1 million at the 2011 fiscal yearend on
June 30, 2011, total revenues of $3.9 million for the 2011 fiscal
year, and closed 845 mortgage loans, worth $144 million, during
this period. Operations are carried out by the Company’s wholly
owned subsidiary, PrimeSource Mortgage, Inc. (PSMI). Through this
subsidiary, PSMH operates and is licensed in the following 17
states: Arkansas, California, Colorado, Georgia, Idaho, Iowa,
Kentucky, Louisiana, Montana, Nebraska, New Jersey, New Mexico, New
York, Oklahoma, Texas, Washington, and Wyoming.
To view a free copy of our most recent research report on
PSMH, visit Ann Heffron's page at
http://scr.zacks.com/ .
PSM HOLDINGS (PSMH): Free Stock Analysis Report
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