Pennymac Financial Services, Inc. (NYSE: PFSI) has reported its second-quarter 2025 results. The company's net income for the quarter was $136.5 million, or $2.54 per share on a diluted basis, on revenue of $444.7 million. This is an increase in net income from the previous quarter. The book value per share also increased to $78.04 from $75.57 at the end of the previous quarter.
The company's production segment pretax income was $57.8 million, down from $61.9 million in the prior quarter and up from $55.2 million in the second quarter of 2024. Total loan acquisitions and originations, including those fulfilled for Pennymac Mortgage Investment Trust (PMT), were $37.9 billion in unpaid principal balance (UPB), up 31 percent from the prior quarter and 39 percent from the second quarter of 2024. Correspondent acquisitions of conventional conforming and jumbo loans fulfilled for PMT were $3.1 billion in UPB, up 11 percent from the prior quarter and 38 percent from the second quarter of 2024. Total locks, including those for PMT, were $43.1 billion in UPB, up 26 percent from the prior quarter and 41 percent from the second quarter of 2024.
The servicing segment pretax income was $54.2 million, down from $76.0 million in the prior quarter and $90.7 million in the second quarter of 2024. The servicing portfolio grew to $699.7 billion in UPB, up 3 percent from the previous quarter and 11 percent from the second quarter of 2024. The company's owned mortgage servicing rights (MSR) portfolio grew to $469.9 billion in UPB, an increase of 5 percent from the previous quarter and 17 percent from the second quarter of 2024.
Pretax loss from corporate and other was $35.5 million, up from $33.7 million in the prior quarter and $12.0 million in the second quarter of 2024. Net assets under management were $1.9 billion as of June 30, 2025.
In the second quarter, the company issued $850 million of 7-year unsecured senior notes due in May 2032 and redeemed $650 million of unsecured senior notes due in October 2025 and $500 million of Ginnie Mae MSR term notes due in May 2027.
Chairman and CEO David Spector stated that the company acquired or originated nearly $40 billion in UPB of mortgage loans in the second quarter, which fueled the organic growth of the servicing portfolio to reach $700 billion in UPB with 2.7 million customers at quarter-end.
Spector also emphasized the company's commitment to ongoing technological enhancement and operational excellence, including the broad implementation of artificial intelligence across its production and servicing operations, aiming to unlock significant efficiency gains.
The market has reacted to these announcements by moving the company's shares 2.27% to a price of $104.25. For the full picture, make sure to review PennyMac Financial Services's 8-K report.
