PennyMac Financial Services Inc【PFSI】株式ニュース

Pennymac Announces Acquisition of Cenlar’s Subservicing Business Becoming One of the Largest Mortgage SubservicersFebruary 11, 2026 4:15 PM
Business Wire
PennyMac Financial Services, Inc. (NYSE: PFSI) (Pennymac) today announced it has entered into a definitive agreement to acquire the subservicing business of Cenlar Capital Corporation (Cenlar), primarily consisting of subservicing contracts and mortgage servicing operations, in an all-cash transaction for an upfront purchase price of $172.5 million and up to $85 million of contingent consideration payable over three years. Based on Cenlar’s current portfolio, Pennymac is expected to add up to $740 billion in unpaid principal balance (UPB) of mortgage loan subservicing and 2 million loans to its servicing portfolio. This expansion will bring Pennymac’s total portfolio to over $1 trillion in UPB.

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“We are thrilled to announce this transformative step in our company’s evolution, which is the culmination of a long and thoughtful process between our two organizations that began in the middle of last year,” said David Spector, Chairman and CEO at Pennymac. “Having worked closely with the Cenlar team, we have reached an agreement that represents a compelling value proposition for our stockholders, Cenlar’s institutional clients and their clients’ borrowers, as well as the many talented professionals joining Pennymac. Upon completion of this acquisition, Pennymac will become the second largest mortgage servicer overall and one of the largest subservicers in the U.S. Leveraging industry-leading SSE technology, this further strengthens Pennymac’s position as a partner of choice for institutional subservicing and is expected to drive the growth of capital-light, fee-based revenue streams at significant scale. We operate a best-in-class platform with superior operational performance and efficiency. With this transaction, we expect to realize powerful synergies that further reinforce our standing as the market’s most technologically advanced servicer.”

The transaction is expected to close in the second half of 2026, subject to customary closing conditions, including required regulatory approvals. Concurrently with closing, Cenlar will surrender its bank charter. Pennymac will acquire Cenlar’s subservicing business as a non-bank entity focused exclusively on mortgage subservicing and will methodically transition approximately 100 institutional clients while delivering enhanced levels of customer service and care to their borrowers.

“Our team at Cenlar has been dedicated to building the nation’s leading subservicing organization, grounded in a deep commitment to our clients,” said David Schneider, President and CEO at Cenlar. “By combining Cenlar’s market-leading expertise with a top lender and servicer like Pennymac, we are forming the strongest subservicing platform in the industry. I am incredibly proud of what the Cenlar team has achieved and look forward to this next chapter as we collectively deliver superior scale, technology and care to the millions of homeowners we serve.”

Mr. Spector continued, “This transaction aligns with our previously communicated strategic objective to expand our subservicing business. Servicing has always been a core competency of Pennymac’s balanced business model, including onboarding new clients from large portfolios. This acquisition allows Pennymac to bring the efficiency of SSE technology and its servicing platform to millions of additional customers at scale. We look forward to welcoming Cenlar’s talented employees to our industry-leading team, as I am confident that the combined strength of our platform, technology, and people will deliver exceptional results for years to come.”

Advisors

Santander US Capital Markets LLC is acting as exclusive financial advisor to Pennymac. Goodwin Procter LLP is acting as legal counsel to Pennymac. Houlihan Lokey Capital, Inc. is acting as financial advisor to Cenlar. Sullivan & Cromwell LLP is acting as legal counsel to Cenlar.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 4,900 people across the country. In 2025, PFSI’s production of newly originated loans totaled $145 billion in UPB, making it a top lender in the nation. As of December 31, 2025, PFSI serviced loans totaling $734 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to the proposed transaction between Pennymac and Cenlar, future financial and operating results, benefits and synergies of the proposed transaction, future opportunities for the combined company, and the expected timing of the closing of the proposed transaction, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: the risk that the proposed transaction may not be completed on a timely basis or at all; the potential failure to receive the required approvals of the proposed transaction; the effect of the announcement or completion of the proposed transaction on each of Pennymac’s or Cenlar’s ability to attract, motivate, retain and hire key personnel and maintain relationships with key partners and others with whom Pennymac or Cenlar does business, or on Pennymac’s or Cenlar’s operating results and business generally; that the proposed transaction may divert management’s attention from each of Pennymac’s and Cenlar’s ongoing business operations; the risk of any legal proceedings related to the proposed transaction or otherwise; that Pennymac or Cenlar may be adversely affected by other economic, business and/or competitive factors; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement; the risk that restrictions during the pendency of the proposed transaction may impact Pennymac’s or Cenlar’s ability to pursue certain business opportunities or strategic transactions; the risk that the anticipated benefits and synergies of the proposed transaction may not be fully realized or may take longer to realize than expected; and the risk that integration of the Pennymac and Cenlar businesses post-closing may not occur as anticipated or the combined company may not be able to achieve the growth prospects expected from the transaction. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211950386/en/
Media

Kristyn Clark

mediarelations@pennymac.com

805.395.9943

Investors

Kevin Chamberlain

Isaac Garden

PFSI_IR@pennymac.com

818.264.4907

Original: Pennymac Announces Acquisition of Cenlar’s Subservicing Business Becoming One of the Largest Mortgage Subservicers

PennyMac Financial Services, Inc. Reports Fourth Quarter and Full-Year 2025 ResultsJanuary 29, 2026 4:16 PM
Business Wire
PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $106.8 million for the fourth quarter of 2025, or $1.97 per share on a diluted basis, on total net revenues of $538.0 million. Book value per share increased to $82.77 from $81.12 at September 30, 2025.

PFSI’s Board of Directors declared a fourth quarter cash dividend of $0.30 per share, payable on February 26, 2026, to common stockholders of record as of February 16, 2026.

Fourth Quarter 2025 Highlights

Pretax income was $134.4 million, down from $236.4 million in the prior quarter and up from $129.4 million in the fourth quarter of 2024

Production segment pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in the fourth quarter of 2024

Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were $42.2 billion in unpaid principal balance (UPB), up 16 percent from the prior quarter and 18 percent from the fourth quarter of 2024

Correspondent acquisitions of conventional conforming and non-Agency eligible loans fulfilled for PMT were $3.7 billion in UPB, up 10 percent from the prior quarter and 5 percent from the fourth quarter of 2024

PMT purchased 17 percent of total conventional conforming correspondent loan volume and 100 percent of total non-Agency eligible correspondent loan volume from PFSI through their fulfillment agreement in the fourth quarter, both percentages unchanged from the prior quarter

Total locks, including those for PMT, were $46.8 billion in UPB, up 8 percent from the prior quarter and 29 percent from the fourth quarter of 2024

Correspondent lock volume for PMT’s account was $4.1 billion in UPB, down 7 percent from the prior quarter and up 28 percent from the fourth quarter of 2024

Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024

Pretax income excluding valuation-related items was $47.8 million, down 70 percent from the prior quarter driven primarily by increased realization of mortgage servicing rights (MSR) cash flows as lower mortgage rates drove higher prepayment activity

Valuation-related items included:

$40.4 million in MSR fair value gains and $39.4 million in hedging losses

Net impact on pretax income related to these items was $1.0 million or $0.01 in diluted earnings per share

$11.4 million provision for losses on active loans

Servicing portfolio grew to $733.6 billion in UPB, up 2 percent from September 30, 2025 and 10 percent from December 31, 2024, driven by production volumes which more than offset prepayment activity

Completed the sale of an MSR portfolio totaling $24.4 billion in UPB; PFSI subserviced the portfolio on an interim basis through December 31, 2025 and the servicing transfer was completed in early January 2026

Pretax loss from Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in the fourth quarter of 2024

Full-Year 2025 Highlights

Net income of $501.1 million, up from $311.4 million in 2024 and representing a return on equity of 12 percent

Pretax income of $551.4 million, up from $401.0 million in 2024

Total net revenue of $2.0 billion, up from $1.6 billion in 2024

Total loan production of $145.5 billion in UPB, an increase of 25 percent from 2024

Servicing portfolio UPB of $733.6 billion at year end, up 10 percent from December 31, 2024

Issued $2.35 billion of unsecured senior notes with maturities ranging from 2032 to 2034

Issued $300 million of Ginnie Mae MSR term notes due August 2030

Redeemed $650 million of unsecured notes and $700 million of Ginnie Mae MSR term notes

“PFSI finished the year with a solid fourth quarter, generating a 10 percent annualized return on equity with strong production results offset by increased runoff on our MSR asset as prepayment speeds increased,” said Chairman and CEO David Spector. “For the full year 2025, our balanced business model generated very strong financial results. We achieved double-digit earnings growth across both operating segments, with servicing pretax income up 58 percent and production pretax income up 19 percent. These results were driven by significant operational momentum, including a 25 percent increase in production volumes and 10 percent growth in our servicing portfolio UPB. In total, we generated a 12 percent return on equity for the year and 11 percent growth in book value per share, underscoring our ability to consistently create stockholder value through disciplined execution.”

Mr. Spector concluded, “As we look to 2026, Pennymac is uniquely positioned to lead the industry. Our balanced business model and cutting edge technology provides a powerful foundation for our continued growth. We remain focused on the continued advancement of our strategies to drive sustained long-term value for our stockholders.”

The following table presents the contributions of PFSI’s segments to pretax income:

Quarter ended December 31, 2025

Production

Servicing

Reportable

segment total

Corporate

and other

Total

(in thousands)

Revenue:

Net gains on loans held for sale at fair value

$

276,060

$

25,543

$

301,603

$

-

$

301,603

Loan origination fees

68,437

-

68,437

-

68,437

Fulfillment fees from PMT

6,538

-

6,538

-

6,538

Net loan servicing fees

-

149,780

149,780

-

149,780

Management fees

-

-

-

6,856

6,856

Net interest income (expense):

Interest income

128,953

134,642

263,595

299

263,894

Interest expense

109,189

153,807

262,996

-

262,996

19,764

(19,165

)

599

299

898

Other

187

(2,256

)

(2,069

)

5,962

3,893

Total net revenue

370,986

153,902

524,888

13,117

538,005

Expenses

Compensation

123,386

51,612

174,998

33,075

208,073

Loan origination

69,651

-

69,651

-

69,651

Technology

27,909

10,847

38,756

(3,378

)

35,378

Servicing

-

43,360

43,360

-

43,360

Marketing and advertising

8,506

555

9,061

1,242

10,303

Professional services

3,942

1,986

5,928

4,483

10,411

Occupancy and equipment

5,162

2,477

7,639

2,324

9,963

Other

5,123

5,726

10,849

5,612

16,461

Total expenses

243,679

116,563

360,242

43,358

403,600

Income (loss) before provision for income taxes

$

127,307

$

37,339

$

164,646

$

(30,241

)

$

134,405

Production Segment

The Production segment includes the correspondent acquisition of newly originated government-insured and conventional conforming loans for PFSI’s own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis.

PFSI’s loan production activity for the quarter totaled $42.2 billion in UPB, $38.5 billion of which was for its own account, and $3.7 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $42.8 billion in UPB, up 10 percent from the prior quarter and 30 percent from the fourth quarter of 2024.

Production segment pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in the fourth quarter of 2024. Production segment net revenues totaled $371.0 million, up 3 percent from the prior quarter and 42 percent from the fourth quarter of 2024. The increase in revenue from the prior quarter was primarily due to higher volumes in the consumer direct lending channel and was largely offset by lower margins. The increase from the fourth quarter of 2024 was primarily due to higher volumes across all channels.

The components of net gains on loans held for sale are detailed in the following table:

Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024

(in thousands)

Receipt of MSRs

$

775,242

$

700,326

$

748,121

Gains on sale of loans to PennyMac Mortgage Investment Trust net of mortgage servicing rights recapture payable

16,341

17,454

2,387

Provision for representations and warranties, net

(2,924

)

(2,354

)

(1,633

)

Cash loss, including cash hedging results

(492,013

)

(284,589

)

(373,307

)

Fair value changes of pipeline, inventory and hedges

4,957

(116,382

)

(153,524

)

Net gains on mortgage loans held for sale

$

301,603

$

314,455

$

222,044

Net gains on mortgage loans held for sale by segment:

Production

$

276,060

$

280,092

$

195,070

Servicing

$

25,543

$

34,363

$

26,974

PFSI performs fulfillment services for certain conventional conforming and non-Agency eligible loans that it acquires from non-affiliates in its correspondent production business and subsequently sells to PMT. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.

Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $6.5 million in the fourth quarter, up 6 percent from the prior quarter and 3 percent from the fourth quarter of 2024. The increase was driven by higher acquisition volumes for PMT’s account.

Correspondent production volumes are initially acquired by PFSI. PMT retains the right to purchase up to 100 percent of non-government correspondent loan production. In the fourth quarter, PMT acquired all non-Agency eligible correspondent production and 17 percent of total conventional conforming correspondent production. In the first quarter of 2026, we expect PMT to acquire all non-Agency eligible correspondent production and 15 to 25 percent of total conventional conforming correspondent production.

Net interest income in the fourth quarter totaled $19.8 million, up from $13.7 million in the prior quarter. Interest income totaled $129.0 million, up from $111.3 million in the prior quarter, and interest expense totaled $109.2 million, up from $97.7 million in the prior quarter, both due to the increase in volumes.

Production segment expenses were $243.7 million, up 2 percent from the prior quarter and 33 percent from the fourth quarter of 2024. The increase from the prior quarter was primarily due to higher compensation expenses that resulted from the increase in consumer direct volumes. The increase from the fourth quarter of 2024 was primarily due to higher compensation and loan origination expenses from growth in the direct lending channels.

Servicing Segment

The Servicing segment includes income from owned MSRs and subservicing. The total servicing portfolio increased to $733.6 billion in UPB at December 31, 2025, up 2 percent from September 30, 2025 and up 10 percent from December 31, 2024. PFSI’s owned MSR portfolio totaled $471.0 billion in UPB, a decrease of 1 percent from September 30, 2025 as runoff along with the sale of $24.4 billion in UPB of MSRs more than offset the net growth from production. PFSI’s owned MSR portfolio UPB increased 8 percent from December 31, 2024, primarily due to production volumes, which more than offset runoff and MSR sales. PFSI subservices $262.6 billion in UPB, up 10 percent from the prior quarter. Of total subservicing UPB, $226.8 billion was for PMT, $24.3 billion was subserviced on an interim basis and $11.6 billion was for other non-affiliates.

The table below details PFSI’s servicing portfolio UPB:

December 31,

2025

September 30,

2025

December 31,

2024

(in thousands)

Owned

Mortgage servicing rights and liabilities

Originated

$

448,035,447

$

455,894,902

$

410,393,342

Purchased

13,999,998

14,404,290

15,681,406

462,035,445

470,299,192

426,074,748

Loans held for sale

8,930,477

7,303,091

8,128,914

470,965,922

477,602,283

434,203,662

Subserviced for:

PMT

226,774,067

227,101,009

230,753,581

Interim servicing

24,257,095

65,286

806,584

Other non-affiliates

11,616,738

11,863,843

-

262,647,900

239,030,138

231,560,165

Total loans serviced

$

733,613,822

$

716,632,421

$

665,763,827

Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024. Servicing segment net revenues totaled $153.9 million, down from $259.5 million in the prior quarter and $197.5 million in the fourth quarter of 2024.

Revenue from net loan servicing fees totaled $149.8 million, down from $241.2 million in the prior quarter and $189.3 million in the fourth quarter of 2024. Net loan servicing fee revenues included $532.2 million in loan servicing fees, down slightly from the prior quarter due to the aforementioned sale of MSRs. Realization of cash flows was $383.4 million in the fourth quarter, up 32 percent from the prior quarter, consistent with the increase in prepayment speeds for the owned portfolio as lower mortgage rates drove higher prepayment activity. Net valuation-related gains totaled $1.0 million, comprised of MSR fair value gains of $40.4 million and hedging losses of $39.4 million.

The following table presents a breakdown of net loan servicing fees:

Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024

(in thousands)

Loan servicing fees

$

532,192

$

535,106

$

472,563

Changes in fair value of MSRs and MSLs resulting from:

Realization of cash flows

(383,368

)

(289,679

)

(215,590

)

Change in fair value inputs

40,388

(102,495

)

540,406

Hedging (losses) gains

(39,432

)

98,306

(608,112

)

Net change in fair value of MSRs and MSLs

(382,412

)

(293,868

)

(283,296

)

Net loan servicing fees

$

149,780

$

241,238

$

189,267

Servicing segment revenue included $25.5 million in net gains on loans held for sale related to early buyout loans (EBOs), down from $34.4 million in the prior quarter and $27.0 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by the re-introduction of FHA’s trial payment plans, which extended modification timelines and delayed redeliveries into future quarters. These EBOs are previously delinquent loans that were brought back to performing status through PFSI’s successful servicing efforts.

Net interest expense totaled $19.2 million, compared to $15.1 million in the prior quarter and $19.5 million in the fourth quarter of 2024. Interest income was $134.6 million, down slightly from $137.1 million in the prior quarter as lower earnings rates on custodial balances more than offset the benefit of higher average balances. Interest expense was $153.8 million, up slightly from $152.2 million in the prior quarter.

Servicing segment expenses totaled $116.6 million, up from $102.1 million in the prior quarter primarily due to an increased provision for losses on active loans associated with seasonal increases in delinquencies and servicing advance balances.

Corporate and Other

Corporate and Other items include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PMT. PFSI manages PMT for which it earns base management fees and may earn performance incentive fees.

Pretax loss for Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in the fourth quarter of 2024.

Corporate and Other net revenues totaled $13.1 million, and consisted of $6.9 million in management fees, $6.0 million in other revenue, and $0.3 million of net interest income. No performance incentive fees were earned in the fourth quarter.

Expenses were $43.4 million, down from $55.5 million in the prior quarter and $47.4 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by increased capitalization of certain technology expenses and decreased performance-based incentive compensation.

Average PMT shareholders’ equity was $1.8 billion for the fourth quarter of 2025, essentially unchanged from the third quarter of 2025, and down slightly from the fourth quarter of 2024.

The following table presents a breakdown of management fees:

Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024

(in thousands)

Management fees:

Base fees

$

6,856

$

6,912

$

7,149

Performance incentive fees

-

-

-

Total management fees

$

6,856

$

6,912

$

7,149

Average PMT shareholders' equity used to calculate base management fees

$

1,813,357

$

1,828,365

$

1,896,220

Consolidated Expenses

Total expenses were $403.6 million, up from $396.5 million in the prior quarter due to higher expenses in both the production and servicing segments as mentioned above.

Taxes

PFSI recorded a provision for tax expense of $27.6 million, resulting in an effective tax rate of 20.5 percent. The provision for tax expense included a $4.3 million tax benefit consisting of a repricing of deferred tax liabilities and an adjustment to the 2025 tax accrual. PFSI’s tax provision rate in future periods is expected to be 25.1 percent, down slightly from 25.2 percent in recent quarters.

Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Thursday, January 29, 2026. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 4,900 people across the country. In 2025, PFSI’s production of newly originated loans totaled $145 billion in UPB, making it a top lender in the nation. As of December 31, 2025, PFSI serviced loans totaling $734 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; changes in homeownership costs and affordability; compliance with changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the effect of public opinion on our reputation; our exposure to risks of loss from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expanding or creating new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only. The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as pretax income excluding valuation-related items and operating net income that provide a meaningful perspective on the Company’s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosures have limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

December 31,

2025

September 30,

2025

December 31,

2024

(in thousands, except share amounts)

ASSETS

Cash

$

301,680

$

621,921

$

238,482

Short-term investment at fair value

410,037

62,228

420,553

Principal-only stripped mortgage-backed securities at fair value

722,528

774,021

825,865

Loans held for sale at fair value

9,123,410

7,490,473

8,217,468

Derivative assets

187,775

202,082

113,076

Servicing advances, net

589,542

396,006

568,512

Mortgage servicing rights at fair value

9,598,941

9,653,942

8,744,528

Receivable from PennyMac Mortgage Investment Trust

17,122

40,165

30,206

Loans eligible for repurchase

7,409,800

5,416,967

6,157,172

Other

1,027,854

743,315

771,025

Total assets

$

29,388,689

$

25,401,120

$

26,086,887

LIABILITIES

Assets sold under agreements to repurchase

$

8,794,002

$

7,130,423

$

8,685,207

Mortgage loan participation purchase and sale agreements

696,618

699,182

496,512

Notes payable secured by mortgage servicing assets

1,326,021

1,325,716

2,048,972

Unsecured senior notes

4,831,742

4,829,113

3,164,032

Derivative liabilities

15,806

24,276

40,900

Mortgage servicing liabilities at fair value

1,572

1,593

1,683

Accounts payable and accrued expenses

643,896

476,094

354,414

Payable to PennyMac Mortgage Investment Trust

116,585

80,605

122,317

Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement

24,757

24,806

25,898

Income taxes payable

1,184,020

1,151,395

1,131,000

Liability for loans eligible for repurchase

7,409,800

5,416,967

6,157,172

Liability for losses under representations and warranties

34,894

33,064

29,129

Total liabilities

25,079,713

21,193,234

22,257,236

STOCKHOLDERS' EQUITY

Common stock—authorized 200,000,000 shares of $0.0001 par value; issued and outstanding 52,061,346, 51,875,223, and 51,376,616 shares, respectively

5

5

5

Additional paid-in capital

96,870

86,680

56,072

Retained earnings

4,212,101

4,121,201

3,773,574

Total stockholders' equity

4,308,976

4,207,886

3,829,651

Total liabilities and stockholders’ equity

$

29,388,689

$

25,401,120

$

26,086,887

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024

(in thousands, except per share amounts)

Revenues

Net gains on loans held for sale at fair value

$

301,603

$

314,455

$

222,044

Loan origination fees

68,437

61,696

57,824

Fulfillment fees from PennyMac Mortgage Investment Trust

6,538

6,162

6,356

Net loan servicing fees:

Loan servicing fees

532,192

535,106

472,563

Change in fair value of mortgage servicing rights and mortgage servicing liabilities

(342,980

)

(392,174

)

324,816

Mortgage servicing rights hedging results

(39,432

)

98,306

(608,112

)

Net loan servicing fees

149,780

241,238

189,267

Net interest income (expense):

Interest income

263,894

248,753

210,859

Interest expense

262,996

249,900

228,111

898

(1,147

)

(17,252

)

Management fees from PennyMac Mortgage Investment Trust

6,856

6,912

7,149

Other

3,893

3,582

4,722

Total net revenues

538,005

632,898

470,110

Expenses

Compensation

208,073

205,314

173,090

Loan origination

69,651

69,407

48,046

Servicing

43,360

29,105

38,088

Technology

35,378

44,772

40,831

Professional services

10,411

10,145

9,987

Marketing and advertising

10,303

14,016

7,765

Occupancy and equipment

9,963

8,604

8,173

Other

16,461

15,161

14,766

Total expenses

403,600

396,524

340,746

Income before provision for income taxes

134,405

236,374

129,364

Provision for income taxes

27,574

54,871

24,875

Net income

$

106,831

$

181,503

$

104,489

Earnings per share

Basic

$

2.05

$

3.51

$

2.04

Diluted

$

1.97

$

3.37

$

1.95

Weighted-average common shares outstanding

Basic

52,003

51,730

51,274

Diluted

54,171

53,879

53,576

Dividend declared per share

$

0.30

$

0.30

$

0.30

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Year ended December 31,

2025

2024

2023

(in thousands, except earnings per share)

Revenues

Net gains on loans held for sale at fair value

$

1,071,754

$

817,368

$

545,943

Loan origination fees

235,835

185,700

146,118

Fulfillment fees from PennyMac Mortgage Investment Trust

23,804

26,291

27,826

Net loan servicing fees:

Loan servicing fees

2,062,433

1,799,480

1,484,946

Change in fair value of mortgage servicing rights and mortgage servicing liabilities

(1,413,280

)

(433,342

)

(605,568

)

Mortgage servicing rights hedging results

56,546

(832,483

)

(236,778

)

Net loan servicing fees

705,699

533,655

642,600

Net interest expense:

Interest income

924,447

793,566

632,924

Interest expense

960,555

819,348

637,777

(36,108

)

(25,782

)

(4,853

)

Management fees from PennyMac Mortgage Investment Trust

27,649

28,623

28,762

Other

17,903

27,876

15,260

Total net revenues

2,046,536

1,593,731

1,401,656

Expenses

Compensation

782,916

632,738

576,964

Loan origination

251,990

164,092

114,500

Technology

162,604

149,547

143,152

Servicing

122,626

105,997

69,433

Marketing and advertising

46,140

21,969

17,631

Professional services

37,973

37,992

60,521

Occupancy and equipment

35,328

32,898

36,558

Legal settlements

—

1,591

162,770

Other

55,542

45,881

36,496

Total expenses

1,495,119

1,192,705

1,218,025

Income before provision for income taxes

551,417

401,026

183,631

Provision for income taxes

50,340

89,603

38,975

Net income

$

501,077

$

311,423

$

144,656

Earnings per share

Basic

$

9.69

$

6.11

$

2.89

Diluted

$

9.30

$

5.84

$

2.74

Weighted average shares outstanding

Basic

51,728

50,990

49,978

Diluted

53,882

53,356

52,733

View source version on businesswire.com: https://www.businesswire.com/news/home/20260129293884/en/
Media

Kristyn Clark

mediarelations@pennymac.com

805.395.9943

Investors

Kevin Chamberlain

Isaac Garden

PFSI_IR@pennymac.com

818.264.4907

Original: PennyMac Financial Services, Inc. Reports Fourth Quarter and Full-Year 2025 Results