Net Interest Income (Tables)

6 Months Ended

Jun. 30, 2020

Net Interest Income

Summary of net interest income

	Quarter ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
	(in thousands)
Interest income:
From non-affiliates:
Cash and short-term investments	$	1,893	$	2,706	$	3,604	$	4,639
Loans held for sale at fair value		32,586		34,366		79,012		65,709
Placement fees relating to custodial funds		12,047		32,136		35,256		55,397
		46,526		69,208		117,872		125,745
From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell		792		1,692		2,010		3,488
		47,318		70,900		119,882		129,233
Interest expense:
To non-affiliates:
Assets sold under agreements to repurchase (1)		17,487		19,645		43,171		28,280
Mortgage loan participation purchase and sale agreements		1,061		2,419		2,871		4,730
Obligations under capital lease		104		136		271		202
Notes payable		11,581		18,039		26,930		36,034
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations		18,954		8,214		33,825		12,525
Interest on mortgage loan impound deposits		1,648		1,704		3,305		2,863
		50,835		50,157		110,373		84,634
To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value		2,372		2,767		4,346		5,833
		53,207		52,924		114,719		90,467
	$	(5,889)	$	17,976	$	5,163	$	38,766

(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 $3.9 million and $13.2 million of such incentives as reductions of Interest expense during the quarter and six months ended June 30, 2019, respectively. The master repurchase agreement expired on August 21, 2019.