PSMH: New Loan Production Office Could Add $30 Million in
Annual Loan Volume
Ann Heffron, CFA
PSM Holdings, Inc. (
PSMH
)
announced that it had achieved $55 million in loan production for
the month of July, the first month in its 2013 fiscal year, ending
June 30, 2013. While this is down about 3.5% from June's record $57
million, it nevertheless represents 11% improvement from May's
$49.7 million.
The average loan size was $179.8 million, an increase of 8% from
June's $166.7 million and of 4% from May's $172.6 million. PSMH
closed on 306 loans in July versus 342 loans in June and 288
mortgage loans in May.
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.
More acquisitions are planned throughout 2013. In addition, the
Company plans to add origination volume by folding in
high-production loan offices onto PSMI's existing mortgage lending
platform or opening new branch offices with experienced mortgage
lenders. In fact, PSMH just announced the opening of a new office
in Steamboat Springs, Colorado, which will come under the direction
of its Regional Lending Center in Grand Junction, Colorado. The
Steamboat Springs office will be staffed by Kathryn Pedersen, a top
producer in Colorado, generating over $30 million in annual loan
production.
We note this fold-in strategy is particularly attractive as PSMH
acquires the skills of highly productive loan officers who can
immediately add to the Company's book of business, with minimal
up-front costs. We expect PSMH to use this strategy more
frequently in the months ahead.
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
.
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