Segments (Tables)

6 Months Ended

Jun. 30, 2025

Financial highlights by segment are summarized below:


	Credit			Interest rate					Reportable
	sensitive			sensitive			Correspondent		segment						Consolidated
Quarter ended June 30, 2025	strategies			strategies			production		total			Corporate			total
	(in thousands)
Net investment income (1):
Net gains (losses) on investments and financings
Mortgage-backed securities	$	506		$	14,058		$	—	$	14,564		$	—		$	14,564
Loans held for investment		(958	)		(176	)		—		(1,134	)		—			(1,134	)
Credit risk transfer arrangements		20,250			—			—		20,250			—			20,250
		19,798			13,882			—		33,680			—			33,680
Net gains on loans acquired for sale		—			—			17,806		17,806			—			17,806
Net loan servicing fees		—			23,947			—		23,947			—			23,947
Net interest expense:
Interest income		20,971			137,493			35,886		194,350			2,131			196,481
Interest expense		18,824			154,614			30,273		203,711			1,438			205,149
		2,147			(17,121	)		5,613		(9,361	)		693			(8,668	)
Other		—			—			3,436		3,436			—			3,436
		21,945			20,708			26,855		69,508			693			70,201
Expenses:
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees		2			21,643			—		21,645			—			21,645
Management fees		—			—			—		—			6,869			6,869
Loan fulfillment fees		—			—			5,814		5,814			—			5,814
Professional services		—			—			6,381		6,381			1,981			8,362
Compensation		—			—			—		—			2,836			2,836
Loan collection and liquidation		20			2,365			—		2,385			—			2,385
Safekeeping		—			1,144			84		1,228			—			1,228
Loan origination		—			—			666		666			—			666
Other (2)		89			444			189		722			2,668			3,390
		111			25,596			13,134		38,841			14,354			53,195
Pretax income (loss)		21,834			(4,888	)		13,721		30,667			(13,661	)		17,006
Total assets at end of quarter	$	1,581,220		$	12,082,858		$	2,665,396	$	16,329,474		$	471,645		$	16,801,119

(1)

All investment income is from external customers. The segments do not recognize intersegment income.

(2)

Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.


	Credit			Interest rate						Reportable
	sensitive			sensitive			Correspondent			segment						Consolidated
Quarter ended June 30, 2024	strategies			strategies			production			total			Corporate			total
	(in thousands)
Net investment income (1):
Net gains (losses) on investments and financings
Mortgage-backed securities	$	2,252		$	(37,177	)	$	—		$	(34,925	)	$	—		$	(34,925	)
Loans held for investment		(1,471	)		24			—			(1,447	)		—			(1,447	)
Credit risk transfer arrangements		16,629			—			—			16,629			—			16,629
		17,410			(37,153	)		—			(19,743	)		—			(19,743	)
Net gains on loans acquired for sale		—			—			12,160			12,160			—			12,160
Net loan servicing fees		—			96,494			—			96,494			—			96,494
Net interest expense:
Interest income		22,923			111,316			14,907			149,146			2,689			151,835
Interest expense		24,272			131,566			15,006			170,844			997			171,841
		(1,349	)		(20,250	)		(99	)		(21,698	)		1,692			(20,006	)
Other		(224	)		—			2,517			2,293			—			2,293
		15,837			39,091			14,578			69,506			1,692			71,198
Expenses:
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees		21			20,243			—			20,264			—			20,264
Management fees		—			—			—			—			7,133			7,133
Loan fulfillment fees		—			—			4,427			4,427			—			4,427
Professional services		—			—			—			—			2,366			2,366
Compensation		—			—			—			—			1,369			1,369
Loan collection and liquidation		(1	)		672			—			671			—			671
Safekeeping		—			894			67			961			—			961
Loan origination		—			—			533			533			—			533
Other (2)		79			407			—			486			4,379			4,865
		99			22,216			5,027			27,342			15,247			42,589
Pretax income (loss)	$	15,738		$	16,875		$	9,551		$	42,164		$	(13,555	)	$	28,609
Total assets at end of quarter	$	1,471,470		$	9,421,790		$	719,756		$	11,613,016		$	467,934		$	12,080,950

(1)

All investment income is from external customers. The segments do not recognize intersegment income.

(2)

Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.


	Credit			Interest rate					Reportable
	sensitive			sensitive			Correspondent		segment						Consolidated
Six months ended June 30, 2025	strategies			strategies			production		total			Corporate			total
	(in thousands)
Net investment income (1):
Net gains (losses) on investments and financings
Mortgage-backed securities	$	(504	)	$	79,923		$	—	$	79,419		$	—		$	79,419
Loans held for investment		1,809			(3,685	)		—		(1,876	)		—			(1,876	)
Credit risk transfer arrangements		18,450			—			—		18,450			—			18,450
		19,755			76,238			—		95,993			—			95,993
Net gains on loans acquired for sale		—			—			30,150		30,150			—			30,150
Net loan servicing fees		—			(3,263	)		—		(3,263	)		—			(3,263	)
Net interest expense:
Interest income		40,520			257,389			69,084		366,993			5,579			372,572
Interest expense		36,942			289,945			57,795		384,682			2,604			387,286
		3,578			(32,556	)		11,289		(17,689	)		2,975			(14,714	)
Other		(142	)		—			6,642		6,500			—			6,500
		23,191			40,419			48,081		111,691			2,975			114,666
Expenses:
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees		4			43,370			—		43,374			—			43,374
Management fees		—			—			—		—			13,881			13,881
Loan fulfillment fees		—			—			11,104		11,104			—			11,104
Professional services		—			—			11,261		11,261			4,083			15,344
Compensation		—			—			—		—			5,806			5,806
Loan collection and liquidation		63			4,291			—		4,354			—			4,354
Safekeeping		—			2,178			160		2,338			—			2,338
Loan origination		—			—			1,352		1,352			—			1,352
Other (2)		182			943			354		1,479			4,927			6,406
		249			50,782			24,231		75,262			28,697			103,959
Pretax income (loss)	$	22,942		$	(10,363	)	$	23,850	$	36,429		$	(25,722	)	$	10,707
Total assets at end of period	$	1,581,220		$	12,082,858		$	2,665,396	$	16,329,474		$	471,645		$	16,801,119

(1)

All investment income is from external customers. The segments do not recognize intersegment income.

(2)

Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.


	Credit			Interest rate						Reportable
	sensitive			sensitive			Correspondent			segment						Consolidated
Six months ended June 30, 2024	strategies			strategies			production			total			Corporate			total
	(in thousands)
Net investment income (1):
Net gains (losses) on investments and financings
Mortgage-backed securities	$	6,697		$	(59,722	)	$	—		$	(53,025	)	$	—		$	(53,025	)
Loans held for investment		2,020			2,731			—			4,751			—			4,751
Credit risk transfer arrangements		68,284			—			—			68,284			—			68,284
		77,001			(56,991	)		—			20,010			—			20,010
Net gains on loans acquired for sale		—			—			26,678			26,678			—			26,678
Net loan servicing fees		—			142,199			—			142,199			—			142,199
Net interest expense:
Interest income		47,132			215,495			26,798			289,425			5,969			295,394
Interest expense		47,282			266,391			27,267			340,940			2,428			343,368
		(150	)		(50,896	)		(469	)		(51,515	)		3,541			(47,974	)
Other		(90	)		—			4,580			4,490			—			4,490
		76,761			34,312			30,789			141,862			3,541			145,403
Expenses:
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees		41			40,485			—			40,526			—			40,526
Management fees		—			—			—			—			14,321			14,321
Loan fulfillment fees		—			—			8,443			8,443			—			8,443
Professional services		—			—			—			—			4,124			4,124
Compensation		—			—			—			—			3,285			3,285
Loan collection and liquidation		54			1,986			—			2,040			—			2,040
Safekeeping		—			1,771			122			1,893			—			1,893
Loan origination		—			—			1,006			1,006			—			1,006
Other (2)		102			439			—			541			8,234			8,775
		197			44,681			9,571			54,449			29,964			84,413
Pretax income (loss)	$	76,564		$	(10,369	)	$	21,218		$	87,413		$	(26,423	)	$	60,990
Total assets at end of period	$	1,471,470		$	9,421,790		$	719,756		$	11,613,016		$	467,934		$	12,080,950

(1)

All investment income is from external customers. The segments do not recognize intersegment income.

(2)

Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.