PennyMac Financial Services, Inc.

Listed Company

PFSICIK 0001745916NYSELarge AcceleratedMortgage Bankers & Loan CorrespondentsDelawareFY ends Dec 31

Period

FY 2025

Revenue

$20.11M

Net Income

$501.08M

Total Assets

$29.39B

Equity

$4.31B

Shares Out

52.17M

Op. Cash Flow

$-1.65B

Business

PennyMac Financial Services, Inc. is a specialty financial services firm that operates a comprehensive mortgage platform primarily focused on the production and servicing of U.S. residential mortgage loans. It offers loan origination across correspondent, broker and consumer direct channels, loan fulfillment and sale, loan servicing and default management, mortgage servicing rights management, and investment management through an SEC-registered adviser. Its two reportable operating segments are production (origination, acquisition and sale of loans) and servicing (loan administration, collections, loss mitigation and subservicing). The company operates nationwide, originating and servicing loans across all 50 states, the District of Columbia and U.S. territories, and distributes products through correspondent sellers, brokers, direct consumer channels and institutional investors, including government-sponsored and government agencies.

Summary from filing dated 2025-02-19

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Net gains on loans held for sale at fair value	1,072	817	546	792	2,464
Loan origination fees	236	186	146	170	384
Fulfillment fees from PennyMac Mortgage Investment Trust	24	26	28	68	179
Servicing fees	1,977	1,716	1,404	1,229	1,075
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	−1,413	−433	−606	354	−416
Mortgage servicing rights hedging results	57	−832	−237	−631	−475
Change in fair value of mortgage servicing rights and mortgage-backed securities	−1,357	−1,266	−842	−277	−892
Net loan servicing fees	620	450	561	951	183
Subservicing	86	83	81	—	—
Net loan servicing fees	706	534	643	—	—
Management fees from PennyMac Mortgage Investment Trust	28	29	29	31	38
Interest income	924	794	633	294	300
Interest expense	961	819	638	335	—
Net interest expense	−36	−26	−5	−41	−91
Results of real estate acquired in settlement of loans	−3	864,000	2	3	2
Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust	117,000	−57,000	312,000	−235,000	336,000
Repricing of payable to exchanged Private National Mortgage Acceptance Company , LLC unitholders under tax receivable agreement	1	201,000	—	576,000	—
Other	20	27	13	12	7
Total net revenues	2,047	1,594	1,402	1,986	3,167
Compensation	783	633	577	735	1,000
Loan origination	252	164	115	174	331
Technology	163	150	143	140	141
Servicing	123	106	69	60	110
Marketing and advertising	46	22	18	47	45
Professional services	38	38	61	73	94
Occupancy and equipment	35	33	37	40	36
Legal settlements	—	2	163	5	−4,000
Other	56	46	36	47	51
Total expenses	1,495	1,193	1,218	1,321	1,808
Income before provision for income taxes	551	401	184	665	1,359
Provision for income taxes	50	90	39	190	356
Net income	501	311	145	476	1,003
Basic (in dollars per share)	9.69	6.11	2.89	8.96	15.73
Diluted (in dollars per share)	9.3	5.84	2.74	8.5	14.87
Basic (in shares)	52	51	50	53	64
Diluted (in shares)	54	53	53	56	67

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Cash	302	238	938	1,329	340
Short-term investment at fair value	410	421	10	12	7
Principal-only stripped mortgage-backed securities at fair value pledged to creditors	723	826	—	—	—
Loans held for sale at fair value (includes $8,983,503 and $8,140,834 pledged to creditors)	9,123	8,217	4,421	3,509	9,742
Derivative assets from non-affiliates	186	113	179	99	334
Derivative assets from PennyMac Mortgage Investment Trust	2	—	—	—	—
Servicing advances, net (includes valuation allowance of $103,574 and $85,788; $406,825 and $357,939 pledged to creditors)	590	569	694	697	702
Mortgage servicing rights at fair value (includes $9,367,851 and $8,609,388 pledged to creditors)	9,599	8,745	7,099	5,954	3,878
Investment in PennyMac Mortgage Investment Trust at fair value	941,000	944,000	1	929,000	1
Receivable from PennyMac Mortgage Investment Trust	17	30	29	36	—
Loans eligible for repurchase	7,410	6,157	4,890	4,702	3,026
Other (includes $10,393 and $16,697 pledged to creditors)	1,027	770	582	484	617
Total assets	29,389	26,087	18,845	16,823	18,777
Assets sold under agreements to repurchase	8,794	8,685	3,764	3,001	7,293
Mortgage loan participation purchase and sale agreements	697	497	446	288	480
Notes payable secured by mortgage servicing assets	1,326	2,049	1,873	1,943	1,298
Unsecured senior notes	4,832	3,164	2,520	1,780	1,776
Derivative liabilities	10	41	53	22	23
Derivative liabilities to PennyMac Mortgage Investment Trust	6	—	—	—	—
Mortgage servicing liabilities at fair value	2	2	2	2	3
Accounts payable and accrued expenses	644	354	450	348	359
Payable to PennyMac Mortgage Investment Trust	117	122	208	205	—
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	25	26	26	26	31
Income taxes payable	1,184	1,131	1,043	1,003	685
Liability for loans eligible for repurchase	7,410	6,157	4,890	4,702	3,026
Liability for losses under representations and warranties	35	29	31	32	44
Total liabilities	25,080	22,257	15,306	13,352	15,358
Commitments and contingencies - Note 19	—	—	—	—	—
Common stock-authorized 200,000,000 shares of $0.0001 par value; issued and outstanding, 52,061,346 and 51,376,616 shares, respectively	5,000	5,000	5,000	—	—
Additional paid-in capital	97	56	24	—	125
Retained earnings	4,212	3,774	3,514	3,471	3,293
Total stockholders' equity	4,309	3,830	3,539	3,471	3,418
Total liabilities and stockholders' equity	29,389	26,087	18,845	16,823	18,777

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Net income	501	311	145	476	1,003
Change in fair value of mortgage servicing rights, mortgage servicing liabilities	1,413	433	606	−354	417
Accrual of unearned discounts on principal-only stripped mortgage-backed securities	−46	−25	—	—	—
Capitalization of interest on loans held for sale	−2	−473,000	−751,000	−3	−19
Amortization of debt issuance costs	33	29	21	19	24
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust	3,000	177,000	−192,000	371,000	−195,000
Repricing of payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	−1	−201,000	—	−576,000	—
Stock-based compensation expense	36	21	28	43	38
Provision for servicing advance losses	47	33	3	−36	−48
Depreciation and amortization	54	56	53	34	29
Impairment of capitalized software	5	147,000	46,000	—	728,000
Amortization of operating lease right-of-use assets	15	14	17	16	14
Purchase of loans held for sale from non-affiliates	−60,191	−2,863	−2,057	−1,803	−4,897
Purchase of loans held for sale from PennyMac Mortgage Investment Trust	−52,896	−81,998	−72,442	−50,576	−67,852
Origination of loans held for sale	−28,200	−18,724	−10,770	−20,297	−54,857
Purchase of loans from Ginnie Mae securities and early buyout investors	−4,080	−3,367	−2,556	−6,199	−23,644
Sale to non-affiliates and principal payment of loans held for sale	131,617	101,105	85,685	84,345	154,451
Sale of loans held for sale to PennyMac Mortgage Investment Trust	11,217	663	—	299	—
Repurchase of loans subject to representations and warranties	−114	−90	−50	−93	−100
Increase in servicing advances	−252	−16	−77	−37	−233
Decrease (increase) in receivable from PennyMac Mortgage Investment Trust	3	−4	6	3	35
Sale of real estate acquired in settlement of loans	77	64	36	20	15
Increase in other assets	−64	−96	−60	191	62
Increase in accounts payable and accrued expenses	263	−79	122	−109	35
Decrease in operating lease liabilities	−18	−18	−21	−19	−16
Increase (decrease) in payable to PennyMac Mortgage Investment Trust	4	−85	2	−37	37
Increase in income taxes payable	53	88	40	317	63
Net cash used in operating activities	−1,652	−4,533	−1,582	6,033	2,563
Decrease (increase) in short-term investment	11	−410	2	−5	8
Purchase of principal-only stripped mortgage-backed securities	—	−935	—	—	—
Repayment of principal-only stripped mortgage-backed securities	193	97	—	—	—
Sale of interest-only stripped mortgage-backed securities	—	202	98	—	—
Net settlement of derivative financial instruments used for hedging of mortgage servicing rights	154	−703	−242	−872	−434
Sale of mortgage servicing rights to non-affiliates	608	—	305,000	—	—
Sale of mortgage servicing rights to PennyMac Mortgage Investment Trust	7	—	—	—	—
Acquisition of capitalized software	−39	−20	−35	−72	−49
Purchase of furniture, fixtures, equipment and leasehold improvements	−12	−2	−1	−7	−8
Sale of furniture, fixtures and equipment	—	—	1	—	—
Increase in margin deposits	−370	−116	−96	239	98
Net cash provided by (used in) investing activities	552	−1,888	−273	−722	−304
Sale of assets under agreements to repurchase	144,492	109,007	85,353	75,076	136,180
Repurchase of assets sold under agreements to repurchase	−144,386	−104,083	−84,588	−79,369	−138,546
Issuance of mortgage loan participation purchase and sale certificates	25,766	23,148	22,234	19,313	23,785
Repayment of mortgage loan participation purchase and sale certificates	−25,566	−23,098	−22,075	−19,505	−23,826
Issuance of notes payable secured by mortgage servicing assets	575	1,050	1,005	650	—
Repayment of notes payable secured by mortgage servicing assets	−1,300	−875	−1,075	—	—
Issuance of unsecured senior notes	2,350	650	750	—	1,150
Repayment of unsecured senior notes	−650	—	—	—	—
Payment of debt issuance costs	−60	−36	−33	−20	−38
Issuance of common stock by exercise of stock options	13	20	17	3	8
Payment of withholding taxes relating to stock-based compensation	−4	−9	−9	−8	−9
Payment of dividends to holders of common stock	−63	−52	−41	−55	−53
Repurchase of common stock	−5	—	−71	−406	−958
Net cash provided by financing activities	1,163	5,721	1,465	−4,323	−2,451
Net increase (decrease) in cash	63	−700	−390	988	−193
Cash paid for interest	956	797	639	330	390
(Refunds received) cash paid for income taxes, net	−3	1	−1	−128	293
Mortgage servicing rights received from loan sales	2,940	2,281	1,850	1,718	1,862
Unsettled portion of MSR sales	57	—	—	—	—
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities	—	202	98	—	—
Operating right-of-use assets recognized	40	1	3	1	28

Filings

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