PennyMac Financial Services, Inc. (PFSI) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to PennyMac Financial Services, Inc.' 's second quarter 2025 earnings call. Additional earnings materials, including presentation slides that will be referred to in this call, are available on PennyMac Financial's website at pfsi.pennymac.com. Before we begin, let me remind you that this call may contain forward-looking statements that are subject to certain risks identified on slide two, of the earnings presentation that could cause the company's actual results to differ materially, as well as non-GAAP measures that have been reconciled to their GAAP equivalent in the earnings materials. Now I'd like to introduce David Spector, PennyMac Financials Chairman and Chief Executive Officer, and Dan Perotti, PennyMac Financials Chief Financial Officer. Please go ahead. Thank you, operator. Good afternoon, and thank you to everyone for participating in our second quarter earnings call. For the second quarter, as shown on slide three, PFSI reported net income of $136 million, or diluted earnings per share of $2.54. This reflects an annualized return on equity of 14%. Excluding the impact of fair value changes and a non-recurring tax benefit, which Dan will talk about later, PFSI produced an annualized operating ROE of 13%. These results highlight the resilience of our balanced business model and our continued ability to produce solid financial results even during periods of extreme volatility, such as earlier in the second quarter. As you can see on slide five, our consistent performance over recent periods of elevated mortgage rates demonstrates the strength of our organically built comprehensive mortgage banking platform. The stability provided by our balanced business model especially in this higher for longer rate environment, is a real strateg...