BUSINESS WIRE<\/a>)–
\nPennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $37.6 million for the fourth quarter of 2022, or $0.71 per share on a diluted basis, on revenue of $340.4 million. Book value per share increased to $69.44 from $68.26 at September 30, 2022.\n<\/p>\n\nPFSI\u2019s Board of Directors declared a fourth quarter cash dividend of $0.20 per share, payable on February 24, 2023, to common stockholders of record as of February 14, 2023.\n<\/p>\n
Fourth Quarter 2022 Highlights<\/b><\/p>\n\n- \nNet income included non-recurring tax items of $(11.9) million primarily driven by a tax rate increase impacting PFSI\u2019s net deferred tax liability; impact on earnings per share was $(0.22)\n<\/li>\n
- \nPretax income was $67.7 million, down 63 percent from the prior quarter and 71 percent from the fourth quarter of 2021<\/p>\n
\n- \nRepurchased 1.1 million shares of PFSI\u2019s common stock at an average price of $46.99 per share for a cost of $51.3 million\n<\/li>\n<\/ul>\n<\/li>\n
- \nProduction segment pretax loss of $9.0 million, down from pretax income of $38.6 million in the prior quarter and $106.5 million in the fourth quarter of 2021<\/p>\n
\n- \nTotal loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) were $23.0 billion in unpaid principal balance (UPB), down 12 percent from the prior quarter and 51 percent from the fourth quarter of 2021\n<\/li>\n
- \nConsumer direct interest rate lock commitments (IRLCs) were $1.7 billion in UPB, down 56 percent from the prior quarter and 88 percent from the fourth quarter of 2021\n<\/li>\n
- \nBroker direct IRLCs were $2.0 billion in UPB, up 8 percent from the prior quarter and down 48 percent from the fourth quarter of 2021\n<\/li>\n
- \nGovernment correspondent IRLCs totaled $10.7 billion in UPB, down 14 percent from the prior quarter and 31 percent from the fourth quarter of 2021\n<\/li>\n
- \nConventional correspondent IRLCs for PFSI\u2019s account totaled $4.7 billion in UPB\n<\/li>\n
- \nCorrespondent acquisitions of conventional conforming loans fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) were $6.8 billion in UPB, down 34 percent from the prior quarter and 61 percent from the fourth quarter of 2021\n<\/li>\n<\/ul>\n<\/li>\n
- \nServicing segment pretax income was $75.6 million, down from $145.3 million in the prior quarter and $126.1 million in the fourth quarter of 2021<\/p>\n
\n- \nPretax income excluding valuation-related items was $79.1 million, up 14 percent from the prior quarter driven by increased earnings on custodial balances and deposits and decreased operating expenses\n<\/li>\n
- \nValuation items included:
\n
\u2013\u00a0\u00a0\u00a0\u00a0$82.6 million in mortgage servicing rights (MSR) fair value gains largely offset by $72.9 million in hedging losses<\/p>\n\n- \nNet impact on pretax income related to these items was $9.7 million, or $0.13 in earnings per share\n<\/li>\n
- \n$13.2 million provision for losses on active loans\n<\/li>\n<\/ul>\n<\/li>\n
- \nServicing portfolio grew to $551.7 billion in UPB, up 2 percent from September 30, 2022, driven by production volumes which more than offset prepayment activity\n<\/li>\n<\/ul>\n<\/li>\n
- \nInvestment Management segment pretax income was $1.2 million, down from $1.6 million in the prior quarter and $1.5 million in the fourth quarter of 2021<\/p>\n
\n- \nNet assets under management (AUM) were $2.0 billion, down 3 percent from September 30, 2022, and 17 percent from December 31, 2021\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Notable activity after quarter end<\/i><\/p>\n\n- \nPFSI exercised its option to extend the maturity for $650 million in term notes secured by Ginnie Mae MSRs originally due in February 2023 for two years\n<\/li>\n<\/ul>\n
Full-Year 2022 Highlights<\/b><\/p>\n\n- \nNet income of $475.5 million, down from $1.0 billion in 2021; return on equity of 14 percent\n<\/li>\n
- \nPretax income of $665.2 million, down from $1.4 billion in 2021\n<\/li>\n
- \nTotal net revenue of $2.0 billion, down from $3.2 billion in 2021\n<\/li>\n
- \nRepurchased approximately 7.8 million shares of PFSI\u2019s common stock, or 14 percent of the total outstanding shares at the beginning of the year, for an approximate cost of $406 million\n<\/li>\n
- \nLoan production of $109.0 billion in UPB, a decrease of 54 percent from 2021<\/p>\n
\n- \n$22.3 billion in UPB of originations in the direct lending channels, down 63 percent from 2021\n<\/li>\n<\/ul>\n<\/li>\n
- \nServicing portfolio UPB of $551.7 billion at year end, up 8 percent from December 31, 2021\n<\/li>\n
- \nIssued $500 million of 5-year term notes secured by Ginnie Mae MSRs\n<\/li>\n<\/ul>\n
\n\u201cPennyMac Financial produced strong results in 2022, a year characterized by a rapid and significant increase in mortgage rates,\u201d said Chairman and CEO David Spector. \u201cThe 14 percent return on equity achieved in 2022 can be attributed to the resilience and scale of our balanced business model and the decisive actions taken throughout the year to right-size our business for the much smaller origination market. While production activity fell in 2022 our servicing earnings were strong. In fact, the majority of PennyMac Financial\u2019s income in 2022 was generated by our large and growing servicing portfolio, which totaled more than $550 billion in unpaid principal balance at year end, up 8 percent from the prior year. Strong financial performance not only enabled us to continue returning capital to stockholders and investing in innovative mortgage banking technology, but also resulted in solid growth in PFSI\u2019s book value per share, which ended the year up 16 percent from year end 2021.\u201d\n<\/p>\n
\nMr. Spector continued, \u201cMore than 15 years ago, we founded Pennymac with a vision to help revitalize the mortgage market and become a trusted partner in home ownership. Since then, we have grown responsibly and profitably into one of the largest residential mortgage producers and servicers in the country with an industry-leading correspondent production business and a growing presence in the direct lending channels. Though 2023 is expected to be another challenging year for the mortgage industry, I remain confident in PennyMac Financial\u2019s ability to continue executing given its balanced business model and long history of generating stockholder value through different mortgage market cycles and environments.\u201d\n<\/p>\n
\nThe following table presents the contributions of PennyMac Financial\u2019s segments to pretax income:\n<\/p>\n
\n\n | \n\u00a0<\/td>\n | \u00a0Quarter ended December 31, 2022\u00a0<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | \u00a0Mortgage Banking\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0Investment
Management\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | | <\/tr>\n \n | \n\u00a0<\/td>\n | \u00a0Production\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0Servicing\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0Total\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0Total\u00a0<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | \u00a0(in thousands)\u00a0<\/b><\/td>\n<\/tr>\n\n| Revenue<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Net gains on loans held for sale at fair value<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 84,708\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 17,205\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0 101,913\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0 101,913\n<\/p>\n<\/td>\n<\/tr>\n | \n| Loan origination fees<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28,019\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28,019\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28,019\n<\/p>\n<\/td>\n<\/tr>\n | \n| Fulfillment fees from PMT\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,184\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,184\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,184\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net loan servicing fees\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 182,831\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 182,831\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 182,831\n<\/p>\n<\/td>\n<\/tr>\n | \n| Management fees\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,307\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,307\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net interest income (expense):<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Interest income<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 42,855\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 64,467\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 107,322\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 107,322\n<\/p>\n<\/td>\n<\/tr>\n | \n| Interest expense<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 36,836\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 67,192\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 104,028\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 104,028\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n\u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,019\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (2,725\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,294\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,294\n<\/p>\n<\/td>\n<\/tr>\n | \n| Other<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 661\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,655\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,316\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,582\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,898\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total net revenue<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 131,591\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 198,966\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 330,557\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9,889\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 340,446\n<\/p>\n<\/td>\n<\/tr>\n | \n| Expenses<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 140,607\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 123,401\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 264,008\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8,709\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 272,717\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income before provision for income taxes\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0 (9,016\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 75,565\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 66,549\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,180\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 67,729\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0Production Segment<\/b><\/p>\n \nThe Production segment includes the correspondent acquisition of newly originated government-insured and certain conventional conforming 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 $23.0 billion in UPB, $16.2 billion of which was for its own account, and $6.8 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $19.1 billion in UPB, up 6 percent from the prior quarter and down 43 percent from the fourth quarter of 2021.\n<\/p>\n \nProduction segment pretax loss was $9.0 million, down from pretax income of $38.6 million in the prior quarter and $106.5 million in the fourth quarter of 2021. Production segment revenue totaled $131.6 million, down 34 percent from the prior quarter and 69 percent from the fourth quarter of 2021. The quarter-over-quarter decrease was driven by a $56.0 million decrease in net gains on loans held for sale primarily as a result of lower volume in the consumer direct lending channel and lower overall margins.\n<\/p>\n \nThe components of net gains on loans held for sale are detailed in the following table:\n<\/p>\n \n\n | \n\u00a0<\/td>\n | Quarter ended<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | December 31,
2022<\/b><\/td>\n | \u00a0<\/td>\n | September 30,
2022<\/b><\/td>\n | \u00a0<\/td>\n | December 31,
2021<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | (in thousands)<\/b><\/td>\n<\/tr>\n\n| Receipt of MSRs and recognition of MSLs in loan sale transactions<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 358,462\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 345,077\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 467,141\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (512\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,648\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (12,701\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n<\/tr>\n | \n| (Provision for) reversal of liability for representations and warranties, net<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (444\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 118\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (315\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n<\/tr>\n | \nCash (loss) gain (1)<\/sup><\/td>\n| \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (340,869\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (16,795\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 37,537\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Fair value changes of pipeline, inventory and hedges<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 85,276\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (158,058\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8,996\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net gains on mortgage loans held for sale<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 101,913\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 168,694\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 500,658\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net gains on mortgage loans held for sale by segment:<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Production<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 84,708\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 140,683\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 314,826\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Servicing<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 17,205\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28,011\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 185,832\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \u00a0<\/td>\n | | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | | <\/tr>\n \n(1)<\/sup> Including cash hedging results<\/td>\n| \u00a0<\/td>\n | | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | | <\/tr>\n<\/table>\n\nPennyMac Financial performs fulfillment services for certain 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 $12.2 million in the fourth quarter, down 34 percent from the prior quarter and 40 percent from the fourth quarter of 2021. The quarter-over-quarter decrease in fulfillment fee revenue was driven by lower conventional acquisition volumes for PMT\u2019s account as PFSI began to acquire certain of the conventional loans sourced by PMT.\n<\/p>\n \nNet interest income totaled $6.0 million, up slightly from $5.9 million in the prior quarter. Interest income in the fourth quarter totaled $42.9 million, up from $30.8 million in the prior quarter, and interest expense totaled $36.8 million, up from $25.0 million in the prior quarter, both due to increasing interest rates.\n<\/p>\n \nProduction segment expenses were $140.6 million, down 13 percent from the prior quarter and 56 percent from the fourth 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 $75.6 million, down from $145.3 million in the prior quarter and $126.1 million in the fourth quarter of 2021. Servicing segment net revenues totaled $199.0 million, down from $266.5 million in the prior quarter and $255.7 million in the fourth quarter of 2021. The quarter-over-quarter decrease was primarily driven by a $60.9 million decrease in net loan servicing fees and a $10.8 million decrease in net gains on loans held for sale related to early buyout (EBO) activity.\n<\/p>\n \nRevenue from net loan servicing fees totaled $182.8 million, down from $243.7 million in the prior quarter primarily driven by lower net valuation related gains and partially offset by increased loan servicing fees due to a larger servicing portfolio. Revenue from loan servicing fees included $321.9 million in servicing fees, reduced by $148.8 million from the realization of MSR cash flows. Net valuation-related gains totaled $9.7 million, and included MSR fair value gains of $82.6 million, and hedging losses of $72.9 million. The hedging losses were largely driven by hedge costs and higher interest rates during the quarter.\n<\/p>\n \nThe following table presents a breakdown of net loan servicing fees:\u00a0\n<\/p>\n \n\n | \n\u00a0<\/td>\n | Quarter ended<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | December 31,
2022<\/b><\/td>\n | \u00a0<\/td>\n | September 30,
2022<\/b><\/td>\n | \u00a0<\/td>\n | December 31,
2021<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | (in thousands)<\/b><\/td>\n<\/tr>\n\n| Loan servicing fees<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 321,949\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 313,080\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 287,888\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Changes in fair value of MSRs and MSLs resulting from:<\/td>\n | \u00a0<\/td>\n | | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | | <\/tr>\n \n| Realization of cash flows<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (148,835\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (141,781\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (97,025\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n<\/tr>\n | \n| Change in fair value inputs<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 82,587\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 237,192\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (58,407\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n<\/tr>\n | \n| Hedging losses\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (72,870\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (164,749\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (37,723\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net change in fair value of MSRs and MSLs<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (139,118\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (69,338\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (193,155\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net loan servicing fees<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 182,831\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 243,742\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 94,733\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nServicing segment revenue included $17.2 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 $28.0 million in the prior quarter and $185.8 million in the fourth quarter of 2021. These EBOs are previously delinquent loans that were brought back to performing status through PennyMac Financial\u2019s successful servicing efforts.\n<\/p>\n \nNet interest expense totaled $2.7 million, versus $5.8 million in the prior quarter and $25.2 million in the fourth quarter of 2021. Interest income was $64.5 million, up from $52.2 million in the prior quarter as increased placement fees on custodial balances more than offset the decline in interest income on EBO loans held for sale. Interest expense was $67.2 million, up from $58.0 million in the prior quarter due to higher interest rates.\n<\/p>\n \nServicing segment expenses totaled $123.4 million, up 2 percent from the prior quarter. Servicing segment expenses included $13.2 million in provisions for losses on active loans in the fourth quarter due to higher delinquency rates. The prior quarter included a reversal of the provision of $3.2 million.\n<\/p>\n \nThe total servicing portfolio grew to $551.7 billion in UPB at December 31, 2022, an increase of 2 percent from September 30, 2022 and 8 percent from December 31, 2021. PennyMac Financial subservices and conducts special servicing for $233.6 billion in UPB, an increase of 1 percent from September 30, 2022 and 5 percent from December 31, 2021. PennyMac Financial\u2019s owned MSR portfolio grew to $318.1 billion in UPB, an increase of 3 percent from September 30, 2022 and 11 percent from December 31, 2021.\n<\/p>\n \nThe table below details PennyMac Financial\u2019s servicing portfolio UPB:\n<\/p>\n \n\n | \n\u00a0<\/td>\n | \u00a0December 31,
2022\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0September 30,
2022\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0December 31,
2021\u00a0<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | (in thousands)<\/b><\/td>\n<\/tr>\n\n| Prime servicing:<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Owned<\/td>\n | \u00a0<\/td>\n | | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | | <\/tr>\n \n| Mortgage servicing rights and liabilities<\/td>\n | \u00a0<\/td>\n | \u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Originated<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 295,032,674\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 283,653,037\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0 254,524,015\n<\/p>\n<\/td>\n<\/tr>\n | \n| Acquisitions<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 19,568,122\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20,182,332\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 23,861,358\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n\u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 314,600,796\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 303,835,369\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 278,385,373\n<\/p>\n<\/td>\n<\/tr>\n | \n| Loans held for sale<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,498,214\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,287,585\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9,430,766\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n\u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 318,099,010\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 308,122,954\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 287,816,139\n<\/p>\n<\/td>\n<\/tr>\n | \n| Subserviced for PMT<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 233,554,875\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 230,959,804\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 221,864,120\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total prime servicing\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 551,653,885\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 539,082,758\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 509,680,259\n<\/p>\n<\/td>\n<\/tr>\n | \n| Special servicing – subserviced for PMT<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20,797\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 19,015\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28,022\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total loans serviced\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 551,674,682\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0 539,101,773\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0 509,708,281\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 December 31, 2022, down 3 percent from September 30, 2022 and 17 percent from December 31, 2021.\n<\/p>\n \nPretax income for the Investment Management segment was $1.2 million, down from $1.6 million in the prior quarter and $1.5 million in the fourth quarter of 2021. Base management fees from PMT were $7.3 million, down from $7.7 million in the prior quarter and $8.9 million in the fourth quarter of 2021 due to the decline in AUM. No performance incentive fees were earned in the fourth quarter.\n<\/p>\n \nThe following table presents a breakdown of management fees:\n<\/p>\n \n\n | \n\u00a0<\/td>\n | Quarter ended<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | December 31,
2022<\/b><\/td>\n | \u00a0<\/td>\n | September 30,
2022<\/b><\/td>\n | \u00a0<\/td>\n | December 31,
2021<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | (in thousands)<\/b><\/td>\n<\/tr>\n\n| Management fees:<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Base<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,307\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,731\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8,919\n<\/p>\n<\/td>\n<\/tr>\n | \n| Performance incentive<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total management fees\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,307\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,731\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8,919\n<\/p>\n<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Net assets of PennyMac Mortgage Investment Trust<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0 1,962,815\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0 2,017,331\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0 2,367,518\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nInvestment Management segment expenses totaled $8.7 million, unchanged from the prior quarter and down 2 percent from the fourth quarter of 2021.\n<\/p>\n Consolidated Expenses<\/b><\/p>\n \nTotal expenses were $272.7 million, down 6 percent from the prior quarter and 41 percent from the fourth quarter of 2021. The quarter-over-quarter decrease was primarily driven by lower production volumes in the direct lending channels, expense management activities and a reduction of performance-based compensation accruals.\n<\/p>\n Taxes<\/b><\/p>\n \nPFSI recorded a provision for tax expense of $30.1 million, resulting in an effective tax rate of 44.4 percent versus 27.1 percent in the prior quarter. The increase in the effective tax rate in the fourth quarter was primarily driven by an increase in the provision tax rate, which increased from 26.5 percent to 26.85 percent for 2022. The increase in tax rate resulted in the repricing of PFSI\u2019s net deferred tax liability, which was the primary driver of a non-recurring tax expense of approximately $11.9 million in the quarter.\n<\/p>\n \nManagement\u2019s slide presentation will be available in the Investor Relations section of the Company\u2019s website at pfsi.pennymac.com<\/a> after the market closes on Thursday, February 2, 2023.\n<\/p>\nAbout PennyMac Financial Services, Inc.<\/b><\/p>\n \nPennyMac 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 4,000 people across the country. In 2022, PennyMac Financial\u2019s production of newly originated loans totaled $109 billion in unpaid principal balance, making it the third largest mortgage lender in the nation. As of December 31, 2022, PennyMac Financial serviced loans totaling $552 billion in unpaid principal balance, making it a top ten mortgage servicer in the nation. Additional information about PennyMac Financial Services, Inc. is available at pfsi.pennymac.com<\/a>.\n<\/p>\nForward-Looking Statements<\/b><\/p>\n \nThis press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management\u2019s beliefs, estimates, projections, and assumptions with respect to, among other things, the Company\u2019s 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 \u201cbelieve,\u201d \u201cexpect,\u201d \u201canticipate,\u201d \u201cpromise,\u201d \u201cproject,\u201d \u201cplan,\u201d and other expressions or words of similar meanings, as well as future or conditional verbs such as \u201cwill,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201ccould,\u201d or \u201cmay\u201d 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; declines in real estate or significant changes in U.S. housing prices or activity in the U.S. housing market; the continually 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 the Consumer Financial Protection Bureau and its enforcement of these regulations; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; changes in macroeconomic and U.S. real estate market conditions; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights and our success in winning bids; our substantial amount of indebtedness; the discontinuation of LIBOR; increases in loan delinquencies, defaults and forbearances; failure to modify, resell or refinance early buyout loans; 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 or characteristics or under other circumstances; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; decreases in investment management and incentive fees; conflicts of interest in allocating our services and investment opportunities among us and our advised entities; the effect of public opinion on our reputation; our exposure to risks of loss and disruptions in operations resulting from adverse weather conditions, man-made or natural disasters, climate change and pandemics such as COVID-19; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; our initiation or expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to mitigate cybersecurity risks and cyber incidents; 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.\n<\/p>\n \nThe Company\u2019s earnings materials contain financial information calculated other than in accordance with U.S. generally accepted accounting principles (\u201cGAAP\u201d), such as pretax income excluding valuation-related items that provide a meaningful perspective on the Company\u2019s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosure has limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.\n<\/p>\n \n\n| \n PENNYMAC FINANCIAL SERVICES, INC.<\/b><\/p>\n CONSOLIDATED BALANCE SHEETS (UNAUDITED)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n\u00a0<\/td>\n | \u00a0December 31,
2022\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0September 30,
2022\u00a0<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0December 31,
2021\u00a0<\/b><\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n | \u00a0(in thousands, except share amounts)\u00a0<\/b><\/td>\n<\/tr>\n\n| ASSETS<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Cash\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,328,536\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,558,679\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 340,069\n<\/p>\n<\/td>\n<\/tr>\n | \n| Short-term investments at fair value\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,194\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 36,098\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,873\n<\/p>\n<\/td>\n<\/tr>\n | \n| Loans held for sale at fair value\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,509,300\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,149,726\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9,742,483\n<\/p>\n<\/td>\n<\/tr>\n | \n| Derivative assets<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 99,003\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 164,160\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 333,695\n<\/p>\n<\/td>\n<\/tr>\n | \n| Servicing advances, net<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 696,753\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 455,083\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 702,160\n<\/p>\n<\/td>\n<\/tr>\n | \n| Mortgage servicing rights at fair value<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5,953,621\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5,661,672\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,878,078\n<\/p>\n<\/td>\n<\/tr>\n | \n| Operating lease right-of-use assets<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 65,866\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 72,138\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 89,040\n<\/p>\n<\/td>\n<\/tr>\n | \n| Investment in PennyMac Mortgage Investment Trust at fair value\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 929\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 884\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,300\n<\/p>\n<\/td>\n<\/tr>\n | \n| Receivable from PennyMac Mortgage Investment Trust\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 36,372\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 32,306\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 40,091\n<\/p>\n<\/td>\n<\/tr>\n | \n| Loans eligible for repurchase<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,702,103\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,757,538\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,026,207\n<\/p>\n<\/td>\n<\/tr>\n | \n| Other\u00a0\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 417,907\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 473,527\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 616,616\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total assets\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 16,822,584\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 16,361,811\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 18,776,612\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| LIABILITIES<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Assets sold under agreements to repurchase\u00a0\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,001,283\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,487,335\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,292,735\n<\/p>\n<\/td>\n<\/tr>\n | \n| Mortgage loan participation purchase and sale agreements<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 287,592\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 367,473\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 479,845\n<\/p>\n<\/td>\n<\/tr>\n | \n| Obligations under capital lease<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\u00a0\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\u00a0\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,489\n<\/p>\n<\/td>\n<\/tr>\n | \n| Notes payable secured by mortgage servicing assets<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,942,646\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,793,972\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,297,622\n<\/p>\n<\/td>\n<\/tr>\n | \n| Unsecured senior notes<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,779,920\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,778,988\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,776,219\n<\/p>\n<\/td>\n<\/tr>\n | \n| Derivative liabilities<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 21,712\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 125,487\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 22,606\n<\/p>\n<\/td>\n<\/tr>\n | \n| Mortgage servicing liabilities at fair value<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,096\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,214\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,816\n<\/p>\n<\/td>\n<\/tr>\n | \n| Accounts payable and accrued expenses\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 262,358\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 358,187\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 359,413\n<\/p>\n<\/td>\n<\/tr>\n | \n| Operating lease liabilities<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 85,550\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 92,380\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 110,003\n<\/p>\n<\/td>\n<\/tr>\n | \n| Payable to PennyMac Mortgage Investment Trust\u00a0\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 205,011\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 87,978\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 228,019\n<\/p>\n<\/td>\n<\/tr>\n | \n| Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 26,099\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 26,675\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 30,530\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income taxes payable<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,002,744\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 964,307\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 685,262\n<\/p>\n<\/td>\n<\/tr>\n | \n| Liability for loans eligible for repurchase<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,702,103\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,757,538\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,026,207\n<\/p>\n<\/td>\n<\/tr>\n | \n| Liability for losses under representations and warranties\u00a0\u00a0\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 32,421\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 37,187\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 43,521\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total liabilities\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0 13,351,535\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,879,721\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0 15,358,287\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| STOCKHOLDERS’ EQUITY<\/b><\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Common stock–authorized 200,000,000 shares of $0.0001 par value; issued and outstanding 49,988,492, 51,011,021, and 56,867,202 shares, respectively<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6\n<\/p>\n<\/td>\n<\/tr>\n | \n| Additional paid-in capital<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\u00a0\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\u00a0\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 125,396\n<\/p>\n<\/td>\n<\/tr>\n | \n| Retained earnings\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,471,044\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,482,085\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,292,923\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total stockholders’ equity<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,471,049\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,482,090\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,418,325\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total liabilities and stockholders\u2019 equity\u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 16,822,584\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 16,361,811\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 18,776,612\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n | | | | | | | | | | | | | | | | | | | | | | | |
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