PennyMac Financial Services Inc (PFSI)

PennyMac Financial Services, Inc. Announces Tiffany To Has Joined Its Board of DirectorsJune 9, 2026 4:15 PM
Business Wire Ontollo CEO brings deep scaling and technology transformation experience to the mortgage industry's premier tech-first platform PennyMac Financial Services, Inc. (NYSE: PFSI) (Pennymac) announced today that Tiffany To, enterprise AI expert and CEO and Co-Founder of AI and operational intelligence software company Ontollo, has joined its Board of Directors. “We are pleased to welcome Tiffany to PFSI’s Board of Directors,” said David Spector, Chairman and CEO of Pennymac. “She has spent her career at the forefront of AI and business transformation, building products, leading organizations, and helping enterprises turn technology into real competitive advantage. Tiffany’s experience and perspective as a cutting-edge founder, operator, and technology leader will be valuable as Pennymac continues to leverage its tech-first platform in leading the mortgage industry. We are confident Tiffany will make an immediate and lasting impact.” Throughout her career, Ms. To has guided both startups and global enterprises through transformations that connect new technology directly to business outcomes. She is currently the CEO and Co-Founder of Ontollo, a software development and operational intelligence platform. Prior to her current role, she was EVP and GM of Enterprise & Platform at Atlassian, where she led the Enterprise business and Platform teams to build an AI-driven knowledge work system for their 300,000 customers. Earlier in her career, she served as Chief Operating Officer and Member of the Board of Directors at ForAllSecure, where she built a go-to-market strategy for transforming cybersecurity technology from Carnegie Mellon into enterprise-ready product for the Department of Defense, as well as clients in the aerospace, automotive, and high-tech industries. She has also held leadership roles at Cohesity, Coho Data, Nutanix, VMware, and Intel, Silicon Graphics, and Symbol Technologies. Ms. To holds a Bachelor of Science in Computer Systems Engineering from Stanford University, and an MBA from UC Berkeley Haas School of Business. 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 5,300 people across the country. For the twelve months ended March 31, 2026, PFSI’s production of newly originated loans totaled $154 billion in unpaid principal balance, making it a top lender in the nation. As of March 31, 2026, PFSI serviced loans totaling $720 billion in unpaid principal balance, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260609491234/en/ Media
Kristyn Clark
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805.395.9943 Investors
Kevin Chamberlain
Isaac Garden
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818.264.4907 Original: PennyMac Financial Services, Inc. Announces Tiffany To Has Joined Its Board of Directors

PennyMac Financial Services, Inc. Announces Date for Release of First Quarter 2026 ResultsApril 21, 2026 7:30 AM
Business Wire
PennyMac Financial Services, Inc. (NYSE: PFSI) will announce results for the quarter ended March 31, 2026, in a news release to be issued after the market close on Tuesday, May 5, 2026. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the results.


The release, webcast, and accompanying materials will be available online at pfsi.pennymac.com. A replay of the webcast will be available shortly after its conclusion.


Individuals who are unable to access the website but would like to receive a copy of the materials should contact our Investor Relations department at 818.264.4907.


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 unpaid principal balance, making it a top lender in the nation. As of December 31, 2025, PFSI serviced loans totaling $734 billion in unpaid principal balance, making it a top mortgage servicer in the nation. Additional information about PennyMac Financial Services, Inc. is available at pfsi.pennymac.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260420079818/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. Announces Date for Release of First Quarter 2026 Results

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.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260211950386/en/
“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