Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Income Taxes

Schedule of the Company's income tax expense (benefit)

	Quarter ended September 30, 2013		Nine months ended September 30, 2013
	(in thousands)
Current expense:
Federal	$	—	$	—
State	—		—
Total current expense	—		—
Deferred expense:
Federal	2,823		4,339
State	670		1,192
Total deferred expense	3,493		5,531
Total provision for income taxes	$	3,493	$	5,531

Schedule of reconciliation of the Company's provision for income taxes at statutory rates to the provision for income taxes at the Company's effective tax rate

	Quarter ended September 30, 2013		Nine months ended September 30, 2013
Federal income tax statutory rate	35.0	%	35.0	%
Less: Rate attributable to non-controlling members	(26.3	)%	(31.6	)%
State income taxes, net of federal benefit	1.2	%	0.6	%
Other	0.0	%	0.0	%
Valuation allowance	0.0	%	0.0	%
Effective tax rate	9.9	%	4.0	%

Schedule of components of the Company's provision for deferred income taxes

	Quarter ended September 30, 2013			Nine months ended September 30, 2013
	(in thousands)
Investment in PennyMac	$	5,491		$	7,762
Net operating loss carryforward	(1,998		)	(2,231		)
Other	—			—
Valuation allowance	—			—
Total provision for deferred income taxes	$	3,493		$	5,531

Schedule of components of Deferred tax asset

	September 30, 2013
	(in thousands)
Taxes currently receivable	$	7
Deferred income tax asset, net	54,523
Deferred tax asset	$	54,530

Schedule of tax effects of temporary differences that gave rise to deferred income tax assets and liabilities

	September 30, 2013
	(in thousands)
Deferred income tax assets:
Investment in PennyMac	$	52,292
Net operating loss carryforward	$	2,231
Other	—
Gross deferred tax assets	54,523
Deferred income tax liabilities:
Other	—
Gross deferred tax liabilities	—
Net deferred income tax asset	$	54,523