PSMH: June Loan Production Better than Expected
Ann Heffron, CFA
PSM Holdings, Inc. (
PSMH
)
announced that it had achieved $57 million in loan production for
the month of June, a record for the Company, and up 15% from May's
$49.7 million. For the 2012 fiscal year ending June 30, 2012, loan
production was about $422 million, a gain of 194% from fiscal
2011's $143.7 million, largely reflecting the acquisition of five
companies within the last 15 months.
Positively, June loan origination volume was about $7 million
higher than our estimate, a creditable performance in this
environment. According to PSMH, year-to-date loan production
consisted of 51% new purchase and 49% refinance transactions, and
44% were closed through conventional loans and 56% were closed
through government type loans.
Despite better-than-expected loan production for June, we are
making no changes to our earnings estimates at this time. PSMH
should report fiscal fourth quarter earnings for the period ending
June 30, 2012 in mid-September, as it typically does.
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 13
states: Arkansas, Colorado, Florida, Iowa, Montana, Missouri,
Nebraska, New Jersey, New Mexico, New York, Oklahoma, Texas, and
Utah.
To view a free copy of our most recent research report on PSMH,
visit
Ann Heffron's page
at
Zacks Small Cap Research.
PSM HOLDINGS (PSMH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research