PSMH: $50 Million March Loan Production
Ann Heffron, CFA
PSM Holdings, Inc. 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/ .