PennyMac Financial Services, Inc.

The slides that accompany this discussion are available on PennyMac Financial's website at ir.pennymacfinancial.com. Before we begin, let me remind you that our discussion contains forward-looking statements that are subject to risks identified on slide 2 that could cause our actual results to differ materially, as well as certain non-GAAP measures that have been reconciled to their GAAP equivalent. Thank you. Now I'd like to begin by introducing David Spector, PennyMac Financial's President and Chief Executive Officer, who will review the company's fourth quarter and full year 2020 results.

Thank you, Isaac. PennyMac Financial reported strong earnings in the fourth quarter, driven by core production and servicing results. Net income was $453 million, or diluted earnings per share of $5.97. resulting in book value growth per share of 15% to $47.80 up from $41.67 at the end of the prior quarter. I'm pleased to note that PFSI's board of directors declared a fourth quarter cash dividend of 20 cents per share representing a 33% increase from the prior quarter. We also repurchased approximately 1.6 million shares of PFSI's common stock at an approximate cost of $89.3 million. And finally, PFSI's Board of Directors approved an increase to its stock repurchase authorization from $500 million to $1 billion of outstanding common stock. Dan Perotti, PFSI's Senior Managing Director and Chief Financial Officer, will discuss the financials in more detail later on in this discussion. Fourth quarter performance was very strong across loan production and servicing, and we continue to see the strength of our balanced business model in our results. Net income in the fourth quarter was the second highest in the history of the company. Direct lending locks were up 13% from the prior quarter. Total correspondent lock volume was up 9% and the servicing portfolio was up 6% from the end of the third quarter. Each of our business segments performed well during the fourth quarter as the continued low interest rate environment drove record production volumes across all of our channels.

Good morning and welcome.