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

PennyMac Financial Services, Inc. Reports Fourth Quarter and Full-Year 2025 Results January 29, 2026 PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $106.8 million for the fourth quarter of 2025, or $1.97 per share on a diluted basis, on total net revenues of $538.0 million. Book value per share increased to $82.77 from $81.12 at September 30, 2025. PFSI’s Board of Directors declared a fourth quarter cash dividend of $0.30 per share, payable on February 26, 2026, to common stockholders of record as of February 16, 2026. Fourth Quarter 2025 Highlights Pretax income was $134.4 million, down from $236.4 million in the prior quarter and up from $129.4 million in the fourth quarter of 2024Production segment pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in the fourth quarter of 2024Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were $42.2 billion in unpaid principal balance (UPB), up 16 percent from the prior quarter and 18 percent from the fourth quarter of 2024Correspondent acquisitions of conventional conforming and non-Agency eligible loans fulfilled for PMT were $3.7 billion in UPB, up 10 percent from the prior quarter and 5 percent from the fourth quarter of 2024PMT purchased 17 percent of total conventional conforming correspondent loan volume and 100 percent of total non-Agency eligible correspondent loan volume from PFSI through their fulfillment agreement in the fourth quarter, both percentages unchanged from the prior quarterTotal locks, including those for PMT, were $46.8 billion in UPB, up 8 percent from the prior quarter and 29 percent from the fourth quarter of 2024Correspondent lock volume for PMT’s account was $4.1 billion in UPB, down 7 percent from the prior quarter and up 28 percent from the fourth quarter of 2024Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024Pretax income excluding valuation-related items was $47.8 million, down 70 percent from the prior quarter driven primarily by increased realization of mortgage servicing rights (MSR) cash flows as lower mortgage rates drove higher prepayment activityValuation-related items included:$40.4 million in MSR fair value gains and $39.4 million in hedging lossesNet impact on pretax income related to these items was $1.0 million or $0.01 in diluted earnings per share$11.4 million provision for losses on active loansServicing portfolio grew to $733.6 billion in UPB, up 2 percent from September 30, 2025 and 10 percent from December 31, 2024, driven by production volumes which more than offset prepayment activityCompleted the sale of an MSR portfolio totaling $24.4 billion in UPB; PFSI subserviced the portfolio on an interim basis through December 31, 2025 and the servicing transfer was completed in early January 2026Pretax loss from Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in the fourth quarter of 2024 Full-Year 2025 Highlights Net income of $501.1 million, up from $311.4 million in 2024 and representing a return on equity of 12 percentPretax income of $551.4 million, up from $401.0 million in 2024Total net revenue of $2.0 billion, up from $1.6 billion in 2024Total loan production of $145.5 billion in UPB, an increase of 25 percent from 2024Servicing portfolio UPB of $733.6 billion at year end, up 10 percent from December 31, 2024Issued $2.35 billion of unsecured senior notes with maturities ranging from 2032 to 2034Issued $300 million of Ginnie Mae MSR term notes due August 2030Redeemed $650 million of unsecured notes and $700 million of Ginnie Mae MSR term notes “PFSI finished the year with a solid fourth quarter, generating a 10 percent annualized return on equity with strong production results offset by increased runoff on our MSR asset as prepayment speeds increased,” said Chairman and CEO David Spector. “For the full year 2025, our balanced business model generated very strong financial results. We achieved double-digit earnings growth across both operating segments, with servicing pretax income up 58 percent and production pretax income up 19 percent. These results were driven by significant operational momentum, including a 25 percent increase in production volumes and 10 percent growth in our servicing portfolio UPB. In total, we generated a 12 percent return on equity for the year and 11 percent growth in book value per share, underscoring our ability to consistently create stockholder value through disciplined execution.” Mr. Spector concluded, “As we look to 2026, Pennymac is uniquely positioned to lead the industry. Our balanced business model and cutting edge technology provides a powerful foundation for our continued growth. We remain focused on the continued advancement of our strategies to drive sustained long-term value for our stockholders.” The following table presents the contributions of PFSI’s segments to pretax income: Quarter ended December 31, 2025 Production Servicing Reportable segment total Corporate and other Total (in thousands)Revenue:Net gains on loans held for sale at fair value $ 276,060 $ 25,543 $ 301,603 $ - $ 301,603 Loan origination fees 68,437 - 68,437 - 68,437 Fulfillment fees from PMT 6,538 - 6,538 - 6,538 Net loan servicing fees - 149,780 149,780 - 149,780 Management fees - - - 6,856 6,856 Net interest income (expense):Interest income 128,953 134,642 263,595 299 263,894 Interest expense 109,189 153,807 262,996 - 262,996 19,764 (19,165 ) 599 299 898 Other 187 (2,256 ) (2,069 ) 5,962 3,893 Total net revenue 370,986 153,902 524,888 13,117 538,005 ExpensesCompensation 123,386 51,612 174,998 33,075 208,073 Loan origination 69,651 - 69,651 - 69,651 Technology 27,909 10,847 38,756 (3,378 ) 35,378 Servicing - 43,360 43,360 - 43,360 Marketing and advertising 8,506 555 9,061 1,242 10,303 Professional services 3,942 1,986 5,928 4,483 10,411 Occupancy and equipment 5,162 2,477 7,639 2,324 9,963 Other 5,123 5,726 10,849 5,612 16,461 Total expenses 243,679 116,563 360,242 43,358 403,600 Income (loss) before provision for income taxes $ 127,307 $ 37,339 $ 164,646 $ (30,241 ) $ 134,405 Production Segment The Production segment includes the correspondent acquisition of newly originated government-insured and conventional conforming loans for PFSI’s own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis. PFSI’s loan production activity for the quarter totaled $42.2 billion in UPB, $38.5 billion of which was for its own account, and $3.7 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $42.8 billion in UPB, up 10 percent from the prior quarter and 30 percent from the fourth quarter of 2024. Production segment pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in the fourth quarter of 2024. Production segment net revenues totaled $371.0 million, up 3 percent from the prior quarter and 42 percent from the fourth quarter of 2024. The increase in revenue from the prior quarter was primarily due to higher volumes in the consumer direct lending channel and was largely offset by lower margins. The increase from the fourth quarter of 2024 was primarily due to higher volumes across all channels. The components of net gains on loans held for sale are detailed in the following table: Quarter ended December 31, 2025 September 30, 2025 December 31, 2024 (in thousands)Receipt of MSRs $ 775,242 $ 700,326 $ 748,121 Gains on sale of loans to PennyMac Mortgage Investment Trust net of mortgage servicing rights recapture payable 16,341 17,454 2,387 Provision for representations and warranties, net (2,924 ) (2,354 ) (1,633 ) Cash loss, including cash hedging results (492,013 ) (284,589 ) (373,307 ) Fair value changes of pipeline, inventory and hedges 4,957 (116,382 ) (153,524 ) Net gains on mortgage loans held for sale $ 301,603 $ 314,455 $ 222,044 Net gains on mortgage loans held for sale by segment:Production $ 276,060 $ 280,092 $ 195,070 Servicing $ 25,543 $ 34,363 $ 26,974 PFSI performs fulfillment services for certain conventional conforming and non-Agency eligible loans that it acquires from non-affiliates in its correspondent production business and subsequently sells to PMT. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT. Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $6.5 million in the fourth quarter, up 6 percent from the prior quarter and 3 percent from the fourth quarter of 2024. The increase was driven by higher acquisition volumes for PMT’s account. Correspondent production volumes are initially acquired by PFSI. PMT retains the right to purchase up to 100 percent of non-government correspondent loan production. In the fourth quarter, PMT acquired all non-Agency eligible correspondent production and 17 percent of total conventional conforming correspondent production. In the first quarter of 2026, we expect PMT to acquire all non-Agency eligible correspondent production and 15 to 25 percent of total conventional conforming correspondent production. Net interest income in the fourth quarter totaled $19.8 million, up from $13.7 million in the prior quarter. Interest income totaled $129.0 million, up from $111.3 million in the prior quarter, and interest expense totaled $109.2 million, up from $97.7 million in the prior quarter, both due to the increase in volumes. Production segment expenses were $243.7 million, up 2 percent from the prior quarter and 33 percent from the fourth quarter of 2024. The increase from the prior quarter was primarily due to higher compensation expenses that resulted from the increase in consumer direct volumes. The increase from the fourth quarter of 2024 was primarily due to higher compensation and loan origination expenses from growth in the direct lending channels. Servicing Segment The Servicing segment includes income from owned MSRs and subservicing. The total servicing portfolio increased to $733.6 billion in UPB at December 31, 2025, up 2 percent from September 30, 2025 and up 10 percent from December 31, 2024. PFSI’s owned MSR portfolio totaled $471.0 billion in UPB, a decrease of 1 percent from September 30, 2025 as runoff along with the sale of $24.4 billion in UPB of MSRs more than offset the net growth from production. PFSI’s owned MSR portfolio UPB increased 8 percent from December 31, 2024, primarily due to production volumes, which more than offset runoff and MSR sales. PFSI subservices $262.6 billion in UPB, up 10 percent from the prior quarter. Of total subservicing UPB, $226.8 billion was for PMT, $24.3 billion was subserviced on an interim basis and $11.6 billion was for other non-affiliates. The table below details PFSI’s servicing portfolio UPB: December 31, 2025 September 30, 2025 December 31, 2024 (in thousands)OwnedMortgage servicing rights and liabilitiesOriginated $ 448,035,447 $ 455,894,902 $ 410,393,342 Purchased 13,999,998 14,404,290 15,681,406 462,035,445 470,299,192 426,074,748 Loans held for sale 8,930,477 7,303,091 8,128,914 470,965,922 477,602,283 434,203,662 Subserviced for:PMT 226,774,067 227,101,009 230,753,581 Interim servicing 24,257,095 65,286 806,584 Other non-affiliates 11,616,738 11,863,843 - 262,647,900 239,030,138 231,560,165 Total loans serviced $ 733,613,822 $ 716,632,421 $ 665,763,827 Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024. Servicing segment net revenues totaled $153.9 million, down from $259.5 million in the prior quarter and $197.5 million in the fourth quarter of 2024. Revenue from net loan servicing fees totaled $149.8 million, down from $241.2 million in the prior quarter and $189.3 million in the fourth quarter of 2024. Net loan servicing fee revenues included $532.2 million in loan servicing fees, down slightly from the prior quarter due to the aforementioned sale of MSRs. Realization of cash flows was $383.4 million in the fourth quarter, up 32 percent from the prior quarter, consistent with the increase in prepayment speeds for the owned portfolio as lower mortgage rates drove higher prepayment activity. Net valuation-related gains totaled $1.0 million, comprised of MSR fair value gains of $40.4 million and hedging losses of $39.4 million. The following table presents a breakdown of net loan servicing fees: Quarter ended December 31, 2025 September 30, 2025 December 31, 2024 (in thousands)Loan servicing fees $ 532,192 $ 535,106 $ 472,563 Changes in fair value of MSRs and MSLs resulting from:Realization of cash flows (383,368 ) (289,679 ) (215,590 ) Change in fair value inputs 40,388 (102,495 ) 540,406 Hedging (losses) gains (39,432 ) 98,306 (608,112 ) Net change in fair value of MSRs and MSLs (382,412 ) (293,868 ) (283,296 ) Net loan servicing fees $ 149,780 $ 241,238 $ 189,267 Servicing segment revenue included $25.5 million in net gains on loans held for sale related to early buyout loans (EBOs), down from $34.4 million in the prior quarter and $27.0 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by the re-introduction of FHA’s trial payment plans, which extended modification timelines and delayed redeliveries into future quarters. These EBOs are previously delinquent loans that were brought back to performing status through PFSI’s successful servicing efforts. Net interest expense totaled $19.2 million, compared to $15.1 million in the prior quarter and $19.5 million in the fourth quarter of 2024. Interest income was $134.6 million, down slightly from $137.1 million in the prior quarter as lower earnings rates on custodial balances more than offset the benefit of higher average balances. Interest expense was $153.8 million, up slightly from $152.2 million in the prior quarter. Servicing segment expenses totaled $116.6 million, up from $102.1 million in the prior quarter primarily due to an increased provision for losses on active loans associated with seasonal increases in delinquencies and servicing advance balances. Corporate and Other Corporate and Other items include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PMT. PFSI manages PMT for which it earns base management fees and may earn performance incentive fees. Pretax loss for Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in the fourth quarter of 2024. Corporate and Other net revenues totaled $13.1 million, and consisted of $6.9 million in management fees, $6.0 million in other revenue, and $0.3 million of net interest income. No performance incentive fees were earned in the fourth quarter. Expenses were $43.4 million, down from $55.5 million in the prior quarter and $47.4 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by increased capitalization of certain technology expenses and decreased performance-based incentive compensation. Average PMT shareholders’ equity was $1.8 billion for the fourth quarter of 2025, essentially unchanged from the third quarter of 2025, and down slightly from the fourth quarter of 2024. The following table presents a breakdown of management fees: Quarter ended December 31, 2025 September 30, 2025 December 31, 2024 (in thousands)Management fees:Base fees $ 6,856 $ 6,912 $ 7,149 Performance incentive fees - - - Total management fees $ 6,856 $ 6,912 $ 7,149 Average PMT shareholders' equity used to calculate base management fees $ 1,813,357 $ 1,828,365 $ 1,896,220 Consolidated Expenses Total expenses were $403.6 million, up from $396.5 million in the prior quarter due to higher expenses in both the production and servicing segments as mentioned above. Taxes PFSI recorded a provision for tax expense of $27.6 million, resulting in an effective tax rate of 20.5 percent. The provision for tax expense included a $4.3 million tax benefit consisting of a repricing of deferred tax liabilities and an adjustment to the 2025 tax accrual. PFSI’s tax provision rate in future periods is expected to be 25.1 percent, down slightly from 25.2 percent in recent quarters. Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Thursday, January 29, 2026. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion. About PennyMac Financial Services, Inc. PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 4,900 people across the country. In 2025, PFSI’s production of newly originated loans totaled $145 billion in UPB, making it a top lender in the nation. As of December 31, 2025, PFSI serviced loans totaling $734 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; changes in homeownership costs and affordability; compliance with changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the effect of public opinion on our reputation; our exposure to risks of loss from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expanding or creating new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only. The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as pretax income excluding valuation-related items and operating net income that provide a meaningful perspective on the Company’s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosures have limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP. PENNYMAC FINANCIAL SERVICES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, 2025 September 30, 2025 December 31, 2024 (in thousands, except share amounts)ASSETSCash $ 301,680 $ 621,921 $ 238,482 Short-term investment at fair value 410,037 62,228 420,553 Principal-only stripped mortgage-backed securities at fair value 722,528 774,021 825,865 Loans held for sale at fair value 9,123,410 7,490,473 8,217,468 Derivative assets 187,775 202,082 113,076 Servicing advances, net 589,542 396,006 568,512 Mortgage servicing rights at fair value 9,598,941 9,653,942 8,744,528 Receivable from PennyMac Mortgage Investment Trust 17,122 40,165 30,206 Loans eligible for repurchase 7,409,800 5,416,967 6,157,172 Other 1,027,854 743,315 771,025 Total assets $ 29,388,689 $ 25,401,120 $ 26,086,887 LIABILITIESAssets sold under agreements to repurchase $ 8,794,002 $ 7,130,423 $ 8,685,207 Mortgage loan participation purchase and sale agreements 696,618 699,182 496,512 Notes payable secured by mortgage servicing assets 1,326,021 1,325,716 2,048,972 Unsecured senior notes 4,831,742 4,829,113 3,164,032 Derivative liabilities 15,806 24,276 40,900 Mortgage servicing liabilities at fair value 1,572 1,593 1,683 Accounts payable and accrued expenses 643,896 476,094 354,414 Payable to PennyMac Mortgage Investment Trust 116,585 80,605 122,317 Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement 24,757 24,806 25,898 Income taxes payable 1,184,020 1,151,395 1,131,000 Liability for loans eligible for repurchase 7,409,800 5,416,967 6,157,172 Liability for losses under representations and warranties 34,894 33,064 29,129 Total liabilities 25,079,713 21,193,234 22,257,236 STOCKHOLDERS' EQUITYCommon stock—authorized 200,000,000 shares of $0.0001 par value; issued and outstanding 52,061,346, 51,875,223, and 51,376,616 shares, respectively 5 5 5 Additional paid-in capital 96,870 86,680 56,072 Retained earnings 4,212,101 4,121,201 3,773,574 Total stockholders' equity 4,308,976 4,207,886 3,829,651 Total liabilities and stockholders’ equity $ 29,388,689 $ 25,401,120 $ 26,086,887 PENNYMAC FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Quarter ended December 31, 2025 September 30, 2025 December 31, 2024 (in thousands, except per share amounts)RevenuesNet gains on loans held for sale at fair value $ 301,603 $ 314,455 $ 222,044 Loan origination fees 68,437 61,696 57,824 Fulfillment fees from PennyMac Mortgage Investment Trust 6,538 6,162 6,356 Net loan servicing fees:Loan servicing fees 532,192 535,106 472,563 Change in fair value of mortgage servicing rights and mortgage servicing liabilities (342,980 ) (392,174 ) 324,816 Mortgage servicing rights hedging results (39,432 ) 98,306 (608,112 ) Net loan servicing fees 149,780 241,238 189,267 Net interest income (expense):Interest income 263,894 248,753 210,859 Interest expense 262,996 249,900 228,111 898 (1,147 ) (17,252 ) Management fees from PennyMac Mortgage Investment Trust 6,856 6,912 7,149 Other 3,893 3,582 4,722 Total net revenues 538,005 632,898 470,110 ExpensesCompensation 208,073 205,314 173,090 Loan origination 69,651 69,407 48,046 Servicing 43,360 29,105 38,088 Technology 35,378 44,772 40,831 Professional services 10,411 10,145 9,987 Marketing and advertising 10,303 14,016 7,765 Occupancy and equipment 9,963 8,604 8,173 Other 16,461 15,161 14,766 Total expenses 403,600 396,524 340,746 Income before provision for income taxes 134,405 236,374 129,364 Provision for income taxes 27,574 54,871 24,875 Net income $ 106,831 $ 181,503 $ 104,489 Earnings per shareBasic $ 2.05 $ 3.51 $ 2.04 Diluted $ 1.97 $ 3.37 $ 1.95 Weighted-average common shares outstandingBasic 52,003 51,730 51,274 Diluted 54,171 53,879 53,576 Dividend declared per share $ 0.30 $ 0.30 $ 0.30 PENNYMAC FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Year ended December 31, 2025 2024 2023 (in thousands, except earnings per share)RevenuesNet gains on loans held for sale at fair value $ 1,071,754 $ 817,368 $ 545,943 Loan origination fees 235,835 185,700 146,118 Fulfillment fees from PennyMac Mortgage Investment Trust 23,804 26,291 27,826 Net loan servicing fees:Loan servicing fees 2,062,433 1,799,480 1,484,946 Change in fair value of mortgage servicing rights and mortgage servicing liabilities (1,413,280 ) (433,342 ) (605,568 ) Mortgage servicing rights hedging results 56,546 (832,483 ) (236,778 ) Net loan servicing fees 705,699 533,655 642,600 Net interest expense:Interest income 924,447 793,566 632,924 Interest expense 960,555 819,348 637,777 (36,108 ) (25,782 ) (4,853 ) Management fees from PennyMac Mortgage Investment Trust 27,649 28,623 28,762 Other 17,903 27,876 15,260 Total net revenues 2,046,536 1,593,731 1,401,656 ExpensesCompensation 782,916 632,738 576,964 Loan origination 251,990 164,092 114,500 Technology 162,604 149,547 143,152 Servicing 122,626 105,997 69,433 Marketing and advertising 46,140 21,969 17,631 Professional services 37,973 37,992 60,521 Occupancy and equipment 35,328 32,898 36,558 Legal settlements — 1,591 162,770 Other 55,542 45,881 36,496 Total expenses 1,495,119 1,192,705 1,218,025 Income before provision for income taxes 551,417 401,026 183,631 Provision for income taxes 50,340 89,603 38,975 Net income $ 501,077 $ 311,423 $ 144,656 Earnings per shareBasic $ 9.69 $ 6.11 $ 2.89 Diluted $ 9.30 $ 5.84 $ 2.74 Weighted average shares outstandingBasic 51,728 50,990 49,978 Diluted 53,882 53,356 52,733 Source: PennyMac Financial Services, Inc.