A nonrecurring tax benefit of $82 million contributed to a $60 million tax benefit in the quarter, lowering future tax provision rate to 25.2%.
Broker direct originations grew nearly 60%, with market share at approximately 5%.
Correspondent lending acquisitions increased 30% to $30 billion with margins at 25 basis points, slightly down from Q1.
Excluding fair value changes and a nonrecurring tax benefit, operating ROE was 13%.
Hedge costs were $54 million, mostly incurred in April due to interest rate volatility, with fair value of MSR increasing by $16 million net of hedges.
PennyMac ended the quarter with $700 billion servicing portfolio UPB and $4 billion total liquidity.
PennyMac Financial Services reported Q2 2025 net income of $136 million, or $2.54 diluted EPS, with an annualized ROE of 14%.
Production segment pretax income was $58 million, down from $62 million in Q1, with acquisition and origination volumes up 31% to $38 billion UPB.
Servicing segment pretax income was $54 million, or $144 million excluding valuation changes, with servicing expenses declining to 4.6 basis points of average servicing portfolio UPB.
Average loan yields increased to 5.93%, driven by higher-yielding loan categories and a 7.29% average rate on new loan production.
Banc of California reported net income of $18.4 million or $0.12 per share and adjusted net income of $48.4 million or $0.31 per share for Q2 2025.
Credit quality improved with declines in nonperforming loans, classified loans, and special mention loans as a percentage of total loans by 19, 46, and 115 basis points respectively.
Net charge-offs excluding loan sale impacts were 12 basis points of loans.
Net interest income increased 3.4% quarter-over-quarter to $240 million, with net interest margin expanding to 3.10%.
Noninterest expense was $185.9 million, slightly up from Q1 but below the target range of $190 million to $195 million per quarter.
Noninterest income was $32.6 million, down 3% from the prior quarter due to mark-to-market fluctuations on CRA-related equity investments and credit-linked notes.
Pretax pre-provision income grew 6% quarter-over-quarter driven by solid revenue growth outpacing a slight increase in expenses.
Tangible book value per share grew for the fifth consecutive quarter to $16.46.
Total annualized loan growth was 9%, supported by broad-based commercial loan production and loan originations of $1.2 billion, the highest since the merger.
Adjusted EBITDA was $11.2 million, positive but down year-over-year, impacted by lower gross margin and strategic investments including severance costs.
Agent count was 82,704, down 5% year-over-year but up 1% sequentially quarter-over-quarter, with increased transactions per agent indicating higher productivity.
eXp World Holdings generated $1.3 billion in revenue in Q2 2025, with real estate sales volume up 1% year-over-year despite a 2% decrease in sales transactions.
International segment revenue grew 59% year-over-year, driven by increased productive agents and new market launches, though adjusted EBITDA loss increased due to expansion and events.
Non-GAAP gross margin was 12%, while GAAP gross margin was 7.1%, down 40 basis points from Q2 2024 due to more agents reaching their cap.
North America Realty segment remains the largest revenue and profit generator with $1.3 billion revenue and $19.8 million adjusted EBITDA in Q2.
Other affiliated services contributed modest revenue but had an adjusted EBITDA loss of $2.3 million.
The company ended Q2 with $94.6 million in cash, after paying $17 million of a $34 million antitrust litigation settlement.
Dafinchi