Net Interest Income

3 Months Ended

Mar. 31, 2020

Note 17—Net Interest Income

Net interest income is summarized below:


	Quarter ended March 31,
	2020		2019
	(in thousands)
Interest income:
From non-affiliates:
Cash and short-term investments	$	1,711	$	1,933
Loans held for sale at fair value		46,426		31,343
Placement fees relating to custodial funds		23,209		23,261
		71,346		56,537
From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell		1,218		1,796
		72,564		58,333

Interest expense:
To non-affiliates:
Assets sold under agreements to repurchase (1)		25,684		8,635
Mortgage loan participation purchase and sale agreements		1,810		2,311
Obligations under capital lease		167		66
Notes payable		15,349		17,995
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations		14,871		4,311
Interest on mortgage loan impound deposits		1,657		1,159
		59,538		34,477
To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value		1,974		3,066
		61,512		37,543
	$	11,052	$	20,790

(1)

In 2017, the Company entered into a master repurchase agreement that provided the Company with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The Company included $9.3 million of such incentives as reductions of Interest expense during the quarter ended March 31, 2019. The master repurchase agreement expired on August 21, 2019.