PENNYMAC Q2 FY2026 Earnings Call
With David Spector (Chairman and CEO) and Dan Perotti (CFO).
PennyMac Loan Services, LLC (NMLS #35953) is a top national mortgage lender with over 4 million lifetime customers. Whether you are new to the home loan process or an experienced buyer, Pennymac is dedicated to offering competitive rates and superior service.
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1Prepared remarks2 speakers
Thank you, operator. Good afternoon, and thank you to everyone for participating in our second quarter 2026 earnings call. As shown on slide three, PennyMac Financial generated net income of $22 million in the second quarter, or $0.41 in earnings per diluted share, representing a 2% annualized return on equity. While interest rate volatility during the quarter created non-cash MSR valuation headwinds that impacted our GAAP results, our underlying adjusted earnings per share came in at $1.39, or 7% annualized…
Thank you, David. PFSI reported net income of $22 million in the second quarter, or $0.41 in earnings per share, for an annualized ROE of 2%. Adjusted net income was $74 million, or $1.39 in adjusted earnings per share for an annualized adjusted ROE of 7%. The $0.98 difference between our GAAP and Adjusted EPS was driven by $77 million of fair value declines on MSRs, net of hedges and costs. A $9 million valuation gain related to our minority interest in Vesta, and $1 million of expenses related to our acquisition…