\nPennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $135.1 million for the third quarter of 2022, or $2.46 per share on a diluted basis, on revenue of $476.3 million. Book value per share increased to $68.26 from $65.38 at June 30, 2022.\n<\/p>\n
\nPFSI\u2019s Board of Directors declared a third quarter cash dividend of $0.20 per share, payable on November 23, 2022, to common stockholders of record as of November 14, 2022.\n<\/p>\n
Third Quarter 2022 Highlights<\/b><\/p>\n \n\u201cIn the third quarter, PennyMac Financial once again delivered strong financial performance,\u201d said Chairman and CEO David Spector. \u201cMeaningful income contributions from both of our production and servicing segments led to an annualized return on equity of 16 percent and growth in book value per share, despite mortgage rates climbing to their highest levels in more than a decade. Our management team\u2019s long-standing commitment to disciplined liquidity and capital management provides us the opportunity to repurchase shares at attractive prices well-below book value while also introducing new technologies like the recently-released POWER+ platform to our broker partners.\u201d\n<\/p>\n \nMr. Spector continued, \u201cWe remain focused on the broader challenges facing our industry in the near-term. We will remain vigilant in our risk management disciplines and continue to actively pursue opportunities to further improve efficiency across our businesses. I continue to believe Pennymac Financial is strategically well-positioned in the mortgage market given our strong levels of capital, our large and growing servicing portfolio, and our efficient and low-cost operating platform run by a best-in-class management team.\u201d\n<\/p>\n \nThe following table presents the contributions of PennyMac Financial\u2019s segments to pretax income:\n<\/p>\n \n$\n<\/p>\n<\/td>\n \n140,683\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n28,011\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n168,694\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n168,694\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n34,037\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n34,037\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n34,037\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n18,407\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n18,407\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n18,407\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n243,742\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n243,742\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n243,742\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n7,731\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n7,731\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n30,825\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n52,169\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n82,994\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n82,994\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n24,970\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n57,995\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n82,965\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n82,965\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n5,855\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(5,826\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n29\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n29\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n474\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n556\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1,030\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2,620\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n3,650\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n199,456\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n266,483\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n465,939\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n10,351\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n476,290\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n160,884\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n121,200\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n282,084\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n8,734\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n290,818\n<\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n38,572\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n145,283\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n183,855\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n1,617\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n185,472\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Production Segment<\/b><\/p>\n \nThe Production segment includes the correspondent acquisition of newly originated government-insured mortgage loans for PennyMac Financial\u2019s 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.\n<\/p>\n \nPennyMac Financial\u2019s loan production activity for the quarter totaled $26.0 billion in UPB, $15.8 billion of which was for its own account, and $10.2 billion of which was fee-based fulfillment activity for PMT. Correspondent government and direct lending IRLCs totaled $18.0 billion in UPB, up 1 percent from the prior quarter and down 52 percent from the third quarter of 2021 due to the significant reduction in the size of the overall origination market.\n<\/p>\n \nProduction segment pretax income was $38.6 million, up from $9.7 million in the prior quarter and down from $330.6 million in the third quarter of 2021. Production segment revenue totaled $199.5 million, down 11 percent from the prior quarter and 69 percent from the third quarter of 2021. The quarter-over-quarter decrease was driven by a $12.2 million decrease in net gains on loans held for sale primarily driven by the smaller origination market.\n<\/p>\n \nThe components of net gains on loans held for sale are detailed in the following table:\n<\/p>\n \n$\n<\/p>\n<\/td>\n \n345,077\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n398,253\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n398,665\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1,648\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(4,752\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(12,976\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n118\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n45\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(2,206\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(16,795\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(368,554\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n126,053\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(158,058\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n197,575\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n117,218\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n168,694\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n222,567\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n626,754\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n140,683\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n152,895\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n496,568\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n28,011\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n69,672\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n130,186\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nPennyMac Financial performs fulfillment services for conventional conforming and jumbo loans acquired by PMT from non-affiliates in its correspondent production business. 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.\n<\/p>\n \nFees earned from the fulfillment of correspondent loans on behalf of PMT totaled $18.4 million in the third quarter, down 11 percent from the prior quarter and 58 percent from the third quarter of 2021. The decrease from the prior quarter was driven by a lower fulfillment fee rate due to the competitive mortgage market while the decrease from the third quarter of 2021 was primarily driven by the decrease in conventional acquisition volumes.\n<\/p>\n \nNet interest income totaled $5.9 million, down from $9.2 million in the prior quarter. Interest income in the third quarter totaled $30.8 million, up from $28.4 million in the prior quarter, and interest expense totaled $25.0 million, up from $19.2 million in the prior quarter, both due to increasing interest rates.\n<\/p>\n \nProduction segment expenses were $160.9 million, down 25 percent from the prior quarter and 48 percent from the third quarter of 2021. The decline from the prior quarter was driven by lower volumes in the direct lending channels and the expense management initiatives announced in prior quarters.\n<\/p>\n Servicing Segment<\/b><\/p>\n \nThe Servicing segment includes income from owned MSRs, subservicing and special servicing activities. Servicing segment pretax income was $145.3 million, down from $167.6 million in the prior quarter and up from $8.0 million in the third quarter of 2021. Servicing segment net revenues totaled $266.5 million, down from $278.6 million in the prior quarter and up from $136.8 million in the third quarter of 2021. The quarter-over-quarter decrease was primarily driven by a $41.7 million decrease in net gains on loans held for sale related to early buyout (EBO) activity and was partially offset by a $24.6 million decrease in net interest expense.\n<\/p>\n \nRevenue from net loan servicing fees totaled $243.7 million, up slightly from $238.4 million in the prior quarter as increased servicing fees from a larger servicing portfolio and higher net valuation-related gains were largely offset by increased realization of cash flows, due to higher average MSR balances during the quarter. Revenue from loan servicing fees included $313.1 million in servicing fees, reduced by $141.8 million from the realization of MSR cash flows. Net valuation-related gains totaled $72.4 million, and included MSR fair value gains of $237.2 million and hedging declines of $164.7 million primarily driven by increasing interest rates during the period.\n<\/p>\n \nThe following table presents a breakdown of net loan servicing fees:\n<\/p>\n \n$\n<\/p>\n<\/td>\n \n313,080\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n302,350\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n267,758\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(141,781\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(121,724\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(82,217\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n237,192\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n233,826\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(65,452\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(164,749\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(176,005\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(86,459\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(69,338\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(63,903\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(234,128\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n243,742\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n238,447\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n33,630\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nServicing segment revenue included $28.0 million in net gains on loans held for sale related to reperforming government-insured and guaranteed loans purchased out of Ginnie Mae securitizations, or EBOs. These gains were down from $69.7 million in the prior quarter and $130.2 million in the third quarter of 2021 as a result of lower volumes and redelivery gains due to higher interest rates.\n<\/p>\n \nNet interest expense totaled $5.8 million, versus net interest expense of $30.4 million in the prior quarter and $27.1 million in the third quarter of 2021. Interest income was $52.2 million, up from $21.5 million in the prior quarter as increased placement fees on custodial balances offset the decline in interest income on EBO loans held for sale. Interest expense was $58.0 million, up from $51.9 million in the prior quarter also due to higher interest rates.\n<\/p>\n \nServicing segment expenses totaled $121.2 million, up from $111.0 million in the prior quarter. The third quarter included $3.2 million in reversals for credit losses on active loans versus $21.5 million in the prior quarter.\n<\/p>\n \nThe total servicing portfolio grew to $539.1 billion in UPB at September 30, 2022, an increase of 2 percent from June 30, 2022 and 9 percent from September 30, 2021. PennyMac Financial subservices $231.0 billion in UPB, up 2 percent from June 30, 2022 and 6 percent from September 30, 2021. PennyMac Financial\u2019s owned MSR portfolio grew to $308.1 billion in UPB, an increase of 2 percent from June 30, 2022 and 11 percent from September 30, 2021.\n<\/p>\n \nThe table below details PennyMac Financial\u2019s servicing portfolio UPB:\n<\/p>\n \n$\n<\/p>\n<\/td>\n \n283,653,037\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n276,627,961\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n241,193,600\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n20,182,332\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n20,683,203\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n26,913,133\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n303,835,369\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n297,311,164\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n268,106,733\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n4,287,585\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n3,575,712\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n9,295,126\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n308,122,954\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n300,886,876\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n277,401,859\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n230,959,804\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n226,365,581\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n217,984,987\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n539,082,758\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n527,252,457\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n495,386,846\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n19,015\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n23,001\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n28,801\n<\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n539,101,773\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n527,275,458\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n495,415,647\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Investment Management Segment<\/b><\/p>\n \nPennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation. Net AUM were $2.0 billion as of September 30, 2022, down 3 percent from June 30, 2022 and 19 percent from September 30, 2021 due to PMT\u2019s financial performance.\n<\/p>\n \nPretax income for the Investment Management segment was $1.6 million, up from $0.2 million in the prior quarter and $1.0 million in the third quarter of 2021. Base management fees from PMT were $7.7 million, down from $7.9 million in the prior quarter and $8.8 million in the third quarter of 2021 due to the decline in AUM. No performance incentive fees were earned in the third quarter.\n<\/p>\n \nThe following table presents a breakdown of management fees:\n<\/p>\n\n
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\n
\n
\n
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\n
\n \n Quarter ended September 30, 2022<\/b><\/td>\n<\/tr>\n \n \n Mortgage Banking<\/b><\/td>\n \n Investment
Management<\/b><\/td>\n\n <\/tr>\n \n \n Production<\/b><\/td>\n \n Servicing<\/b><\/td>\n \n Total<\/b><\/td>\n \n \n Total<\/b><\/td>\n<\/tr>\n \n \n (in thousands)<\/b><\/td>\n<\/tr>\n \n Revenue<\/td>\n \n \n \n \n \n \n \n \n <\/tr>\n \n Net gains on loans held for sale at fair value<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loan origination fees<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fulfillment fees from PMT<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net loan servicing fees<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Management fees<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net interest income (expense):<\/td>\n \n \n \n \n \n \n \n \n <\/tr>\n \n Interest income<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest expense<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total net revenue<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Expenses<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Income before provision for income taxes<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n Quarter ended<\/b><\/td>\n<\/tr>\n \n \n September 30,
2022<\/b><\/td>\n\n June 30,
2022<\/b><\/td>\n\n September 30,
2021<\/b><\/td>\n<\/tr>\n\n \n (in thousands)<\/b><\/td>\n<\/tr>\n \n Receipt of MSRs and recognition of MSLs in loan sale transactions<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Reversal of (provision for) liability for representations and warranties, net<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Cash (loss) gain (1)<\/sup><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Fair value changes of pipeline, inventory and hedges<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Net gains on mortgage loans held for sale<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Net gains on mortgage loans held for sale by segment:<\/td>\n \n \n \n \n <\/tr>\n \n Production<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Servicing<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n (1)<\/sup> Net of cash hedging results<\/td>\n \n \n \n \n <\/tr>\n<\/table>\n \n
\n \n Quarter ended<\/b><\/td>\n<\/tr>\n \n \n September 30,
2022<\/b><\/td>\n\n June 30,
2022<\/b><\/td>\n\n September 30,
2021<\/b><\/td>\n<\/tr>\n\n \n (in thousands)<\/b><\/td>\n<\/tr>\n \n Loan servicing fees (1)<\/sup><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Changes in fair value of MSRs and MSLs resulting from:<\/td>\n \n \n \n \n <\/tr>\n \n Realization of cash flows<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Change in fair value inputs<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Hedging losses<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Net change in fair value of MSRs and MSLs<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n Net loan servicing fees<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n (1)<\/sup> Includes contractually-specified servicing fees<\/td>\n \n \n \n \n <\/tr>\n<\/table>\n \n
\n \n September 30,
2022<\/b><\/td>\n\n June 30,
2022<\/b><\/td>\n\n September 30,
2021<\/b><\/td>\n<\/tr>\n\n \n (in thousands)<\/b><\/td>\n<\/tr>\n \n Prime servicing:<\/td>\n \n \n \n \n <\/tr>\n \n Owned<\/td>\n \n \n \n \n <\/tr>\n \n Mortgage servicing rights and liabilities<\/td>\n \n \n \n \n <\/tr>\n \n Originated<\/td>\n \n \n \n \n \n \n \n \n \n Acquisitions<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loans held for sale<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Subserviced for PMT<\/td>\n \n \n \n \n \n \n \n \n \n Total prime servicing<\/td>\n \n \n \n \n \n \n \n \n \n Special servicing – subserviced for PMT<\/td>\n \n \n \n \n \n \n \n \n \n Total loans serviced<\/td>\n \n \n \n \n \n \n \n \n
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