| Segments |
Note 25—Segments The Company operates in three segments as described in Note 1 ‒ Organization. The Company’s reportable segments are identified based on PMT’s investment strategies. The following disclosures about the Company’s business segments are presented consistent with the way the Company’s chief operating decision maker organizes and evaluates financial information for making operating decisions and assessing performance. The reportable segments are evaluated based on income or loss before benefit from income taxes. The chief operating decision maker uses pre-tax segment results to assess segment performance and allocate operating and capital resources among the segments. The Company’s chief operating decision maker is its chief executive officer. During the year ended December 31, 2024, the Company adopted the FASB’s Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. Prior year amounts have been recast to conform those years’ presentations to current year presentation. Financial highlights by segment are summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
Interest rate |
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
sensitive |
|
|
sensitive |
|
|
Correspondent |
|
|
segment |
|
|
|
|
|
Consolidated |
|
Quarter ended June 30, 2025 |
|
strategies |
|
|
strategies |
|
|
production |
|
|
total |
|
|
Corporate |
|
|
total |
|
|
|
(in thousands) |
|
Net investment income (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on investments and financings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
$ |
506 |
|
|
$ |
14,058 |
|
|
$ |
— |
|
|
$ |
14,564 |
|
|
$ |
— |
|
|
$ |
14,564 |
|
Loans held for investment |
|
|
(958 |
) |
|
|
(176 |
) |
|
|
— |
|
|
|
(1,134 |
) |
|
|
— |
|
|
|
(1,134 |
) |
Credit risk transfer arrangements |
|
|
20,250 |
|
|
|
— |
|
|
|
— |
|
|
|
20,250 |
|
|
|
— |
|
|
|
20,250 |
|
|
|
|
19,798 |
|
|
|
13,882 |
|
|
|
— |
|
|
|
33,680 |
|
|
|
— |
|
|
|
33,680 |
|
Net gains on loans acquired for sale |
|
|
— |
|
|
|
— |
|
|
|
17,806 |
|
|
|
17,806 |
|
|
|
— |
|
|
|
17,806 |
|
Net loan servicing fees |
|
|
— |
|
|
|
23,947 |
|
|
|
— |
|
|
|
23,947 |
|
|
|
— |
|
|
|
23,947 |
|
Net interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
20,971 |
|
|
|
137,493 |
|
|
|
35,886 |
|
|
|
194,350 |
|
|
|
2,131 |
|
|
|
196,481 |
|
Interest expense |
|
|
18,824 |
|
|
|
154,614 |
|
|
|
30,273 |
|
|
|
203,711 |
|
|
|
1,438 |
|
|
|
205,149 |
|
|
|
|
2,147 |
|
|
|
(17,121 |
) |
|
|
5,613 |
|
|
|
(9,361 |
) |
|
|
693 |
|
|
|
(8,668 |
) |
Other |
|
|
— |
|
|
|
— |
|
|
|
3,436 |
|
|
|
3,436 |
|
|
|
— |
|
|
|
3,436 |
|
|
|
|
21,945 |
|
|
|
20,708 |
|
|
|
26,855 |
|
|
|
69,508 |
|
|
|
693 |
|
|
|
70,201 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned by PennyMac Financial Services, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan servicing fees |
|
|
2 |
|
|
|
21,643 |
|
|
|
— |
|
|
|
21,645 |
|
|
|
— |
|
|
|
21,645 |
|
Management fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,869 |
|
|
|
6,869 |
|
Loan fulfillment fees |
|
|
— |
|
|
|
— |
|
|
|
5,814 |
|
|
|
5,814 |
|
|
|
— |
|
|
|
5,814 |
|
Professional services |
|
|
— |
|
|
|
— |
|
|
|
6,381 |
|
|
|
6,381 |
|
|
|
1,981 |
|
|
|
8,362 |
|
Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,836 |
|
|
|
2,836 |
|
Loan collection and liquidation |
|
|
20 |
|
|
|
2,365 |
|
|
|
— |
|
|
|
2,385 |
|
|
|
— |
|
|
|
2,385 |
|
Safekeeping |
|
|
— |
|
|
|
1,144 |
|
|
|
84 |
|
|
|
1,228 |
|
|
|
— |
|
|
|
1,228 |
|
Loan origination |
|
|
— |
|
|
|
— |
|
|
|
666 |
|
|
|
666 |
|
|
|
— |
|
|
|
666 |
|
Other (2) |
|
|
89 |
|
|
|
444 |
|
|
|
189 |
|
|
|
722 |
|
|
|
2,668 |
|
|
|
3,390 |
|
|
|
|
111 |
|
|
|
25,596 |
|
|
|
13,134 |
|
|
|
38,841 |
|
|
|
14,354 |
|
|
|
53,195 |
|
Pretax income (loss) |
|
|
21,834 |
|
|
|
(4,888 |
) |
|
|
13,721 |
|
|
|
30,667 |
|
|
|
(13,661 |
) |
|
|
17,006 |
|
Total assets at end of quarter |
|
$ |
1,581,220 |
|
|
$ |
12,082,858 |
|
|
$ |
2,665,396 |
|
|
$ |
16,329,474 |
|
|
$ |
471,645 |
|
|
$ |
16,801,119 |
|
(1)All investment income is from external customers. The segments do not recognize intersegment income. (2)Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
Interest rate |
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
sensitive |
|
|
sensitive |
|
|
Correspondent |
|
|
segment |
|
|
|
|
|
Consolidated |
|
Quarter ended June 30, 2024 |
|
strategies |
|
|
strategies |
|
|
production |
|
|
total |
|
|
Corporate |
|
|
total |
|
|
|
(in thousands) |
|
Net investment income (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on investments and financings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
$ |
2,252 |
|
|
$ |
(37,177 |
) |
|
$ |
— |
|
|
$ |
(34,925 |
) |
|
$ |
— |
|
|
$ |
(34,925 |
) |
Loans held for investment |
|
|
(1,471 |
) |
|
|
24 |
|
|
|
— |
|
|
|
(1,447 |
) |
|
|
— |
|
|
|
(1,447 |
) |
Credit risk transfer arrangements |
|
|
16,629 |
|
|
|
— |
|
|
|
— |
|
|
|
16,629 |
|
|
|
— |
|
|
|
16,629 |
|
|
|
|
17,410 |
|
|
|
(37,153 |
) |
|
|
— |
|
|
|
(19,743 |
) |
|
|
— |
|
|
|
(19,743 |
) |
Net gains on loans acquired for sale |
|
|
— |
|
|
|
— |
|
|
|
12,160 |
|
|
|
12,160 |
|
|
|
— |
|
|
|
12,160 |
|
Net loan servicing fees |
|
|
— |
|
|
|
96,494 |
|
|
|
— |
|
|
|
96,494 |
|
|
|
— |
|
|
|
96,494 |
|
Net interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
22,923 |
|
|
|
111,316 |
|
|
|
14,907 |
|
|
|
149,146 |
|
|
|
2,689 |
|
|
|
151,835 |
|
Interest expense |
|
|
24,272 |
|
|
|
131,566 |
|
|
|
15,006 |
|
|
|
170,844 |
|
|
|
997 |
|
|
|
171,841 |
|
|
|
|
(1,349 |
) |
|
|
(20,250 |
) |
|
|
(99 |
) |
|
|
(21,698 |
) |
|
|
1,692 |
|
|
|
(20,006 |
) |
Other |
|
|
(224 |
) |
|
|
— |
|
|
|
2,517 |
|
|
|
2,293 |
|
|
|
— |
|
|
|
2,293 |
|
|
|
|
15,837 |
|
|
|
39,091 |
|
|
|
14,578 |
|
|
|
69,506 |
|
|
|
1,692 |
|
|
|
71,198 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned by PennyMac Financial Services, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan servicing fees |
|
|
21 |
|
|
|
20,243 |
|
|
|
— |
|
|
|
20,264 |
|
|
|
— |
|
|
|
20,264 |
|
Management fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,133 |
|
|
|
7,133 |
|
Loan fulfillment fees |
|
|
— |
|
|
|
— |
|
|
|
4,427 |
|
|
|
4,427 |
|
|
|
— |
|
|
|
4,427 |
|
Professional services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,366 |
|
|
|
2,366 |
|
Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,369 |
|
|
|
1,369 |
|
Loan collection and liquidation |
|
|
(1 |
) |
|
|
672 |
|
|
|
— |
|
|
|
671 |
|
|
|
— |
|
|
|
671 |
|
Safekeeping |
|
|
— |
|
|
|
894 |
|
|
|
67 |
|
|
|
961 |
|
|
|
— |
|
|
|
961 |
|
Loan origination |
|
|
— |
|
|
|
— |
|
|
|
533 |
|
|
|
533 |
|
|
|
— |
|
|
|
533 |
|
Other (2) |
|
|
79 |
|
|
|
407 |
|
|
|
— |
|
|
|
486 |
|
|
|
4,379 |
|
|
|
4,865 |
|
|
|
|
99 |
|
|
|
22,216 |
|
|
|
5,027 |
|
|
|
27,342 |
|
|
|
15,247 |
|
|
|
42,589 |
|
Pretax income (loss) |
|
$ |
15,738 |
|
|
$ |
16,875 |
|
|
$ |
9,551 |
|
|
$ |
42,164 |
|
|
$ |
(13,555 |
) |
|
$ |
28,609 |
|
Total assets at end of quarter |
|
$ |
1,471,470 |
|
|
$ |
9,421,790 |
|
|
$ |
719,756 |
|
|
$ |
11,613,016 |
|
|
$ |
467,934 |
|
|
$ |
12,080,950 |
|
(1)All investment income is from external customers. The segments do not recognize intersegment income. (2)Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
Interest rate |
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
sensitive |
|
|
sensitive |
|
|
Correspondent |
|
|
segment |
|
|
|
|
|
Consolidated |
|
Six months ended June 30, 2025 |
|
strategies |
|
|
strategies |
|
|
production |
|
|
total |
|
|
Corporate |
|
|
total |
|
|
|
(in thousands) |
|
Net investment income (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on investments and financings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
$ |
(504 |
) |
|
$ |
79,923 |
|
|
$ |
— |
|
|
$ |
79,419 |
|
|
$ |
— |
|
|
$ |
79,419 |
|
Loans held for investment |
|
|
1,809 |
|
|
|
(3,685 |
) |
|
|
— |
|
|
|
(1,876 |
) |
|
|
— |
|
|
|
(1,876 |
) |
Credit risk transfer arrangements |
|
|
18,450 |
|
|
|
— |
|
|
|
— |
|
|
|
18,450 |
|
|
|
— |
|
|
|
18,450 |
|
|
|
|
19,755 |
|
|
|
76,238 |
|
|
|
— |
|
|
|
95,993 |
|
|
|
— |
|
|
|
95,993 |
|
Net gains on loans acquired for sale |
|
|
— |
|
|
|
— |
|
|
|
30,150 |
|
|
|
30,150 |
|
|
|
— |
|
|
|
30,150 |
|
Net loan servicing fees |
|
|
— |
|
|
|
(3,263 |
) |
|
|
— |
|
|
|
(3,263 |
) |
|
|
— |
|
|
|
(3,263 |
) |
Net interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
40,520 |
|
|
|
257,389 |
|
|
|
69,084 |
|
|
|
366,993 |
|
|
|
5,579 |
|
|
|
372,572 |
|
Interest expense |
|
|
36,942 |
|
|
|
289,945 |
|
|
|
57,795 |
|
|
|
384,682 |
|
|
|
2,604 |
|
|
|
387,286 |
|
|
|
|
3,578 |
|
|
|
(32,556 |
) |
|
|
11,289 |
|
|
|
(17,689 |
) |
|
|
2,975 |
|
|
|
(14,714 |
) |
Other |
|
|
(142 |
) |
|
|
— |
|
|
|
6,642 |
|
|
|
6,500 |
|
|
|
— |
|
|
|
6,500 |
|
|
|
|
23,191 |
|
|
|
40,419 |
|
|
|
48,081 |
|
|
|
111,691 |
|
|
|
2,975 |
|
|
|
114,666 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned by PennyMac Financial Services, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan servicing fees |
|
|
4 |
|
|
|
43,370 |
|
|
|
— |
|
|
|
43,374 |
|
|
|
— |
|
|
|
43,374 |
|
Management fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,881 |
|
|
|
13,881 |
|
Loan fulfillment fees |
|
|
— |
|
|
|
— |
|
|
|
11,104 |
|
|
|
11,104 |
|
|
|
— |
|
|
|
11,104 |
|
Professional services |
|
|
— |
|
|
|
— |
|
|
|
11,261 |
|
|
|
11,261 |
|
|
|
4,083 |
|
|
|
15,344 |
|
Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,806 |
|
|
|
5,806 |
|
Loan collection and liquidation |
|
|
63 |
|
|
|
4,291 |
|
|
|
— |
|
|
|
4,354 |
|
|
|
— |
|
|
|
4,354 |
|
Safekeeping |
|
|
— |
|
|
|
2,178 |
|
|
|
160 |
|
|
|
2,338 |
|
|
|
— |
|
|
|
2,338 |
|
Loan origination |
|
|
— |
|
|
|
— |
|
|
|
1,352 |
|
|
|
1,352 |
|
|
|
— |
|
|
|
1,352 |
|
Other (2) |
|
|
182 |
|
|
|
943 |
|
|
|
354 |
|
|
|
1,479 |
|
|
|
4,927 |
|
|
|
6,406 |
|
|
|
|
249 |
|
|
|
50,782 |
|
|
|
24,231 |
|
|
|
75,262 |
|
|
|
28,697 |
|
|
|
103,959 |
|
Pretax income (loss) |
|
$ |
22,942 |
|
|
$ |
(10,363 |
) |
|
$ |
23,850 |
|
|
$ |
36,429 |
|
|
$ |
(25,722 |
) |
|
$ |
10,707 |
|
Total assets at end of period |
|
$ |
1,581,220 |
|
|
$ |
12,082,858 |
|
|
$ |
2,665,396 |
|
|
$ |
16,329,474 |
|
|
$ |
471,645 |
|
|
$ |
16,801,119 |
|
(1)All investment income is from external customers. The segments do not recognize intersegment income. (2)Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
Interest rate |
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
sensitive |
|
|
sensitive |
|
|
Correspondent |
|
|
segment |
|
|
|
|
|
Consolidated |
|
Six months ended June 30, 2024 |
|
strategies |
|
|
strategies |
|
|
production |
|
|
total |
|
|
Corporate |
|
|
total |
|
|
|
(in thousands) |
|
Net investment income (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on investments and financings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
$ |
6,697 |
|
|
$ |
(59,722 |
) |
|
$ |
— |
|
|
$ |
(53,025 |
) |
|
$ |
— |
|
|
$ |
(53,025 |
) |
Loans held for investment |
|
|
2,020 |
|
|
|
2,731 |
|
|
|
— |
|
|
|
4,751 |
|
|
|
— |
|
|
|
4,751 |
|
Credit risk transfer arrangements |
|
|
68,284 |
|
|
|
— |
|
|
|
— |
|
|
|
68,284 |
|
|
|
— |
|
|
|
68,284 |
|
|
|
|
77,001 |
|
|
|
(56,991 |
) |
|
|
— |
|
|
|
20,010 |
|
|
|
— |
|
|
|
20,010 |
|
Net gains on loans acquired for sale |
|
|
— |
|
|
|
— |
|
|
|
26,678 |
|
|
|
26,678 |
|
|
|
— |
|
|
|
26,678 |
|
Net loan servicing fees |
|
|
— |
|
|
|
142,199 |
|
|
|
— |
|
|
|
142,199 |
|
|
|
— |
|
|
|
142,199 |
|
Net interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
47,132 |
|
|
|
215,495 |
|
|
|
26,798 |
|
|
|
289,425 |
|
|
|
5,969 |
|
|
|
295,394 |
|
Interest expense |
|
|
47,282 |
|
|
|
266,391 |
|
|
|
27,267 |
|
|
|
340,940 |
|
|
|
2,428 |
|
|
|
343,368 |
|
|
|
|
(150 |
) |
|
|
(50,896 |
) |
|
|
(469 |
) |
|
|
(51,515 |
) |
|
|
3,541 |
|
|
|
(47,974 |
) |
Other |
|
|
(90 |
) |
|
|
— |
|
|
|
4,580 |
|
|
|
4,490 |
|
|
|
— |
|
|
|
4,490 |
|
|
|
|
76,761 |
|
|
|
34,312 |
|
|
|
30,789 |
|
|
|
141,862 |
|
|
|
3,541 |
|
|
|
145,403 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned by PennyMac Financial Services, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan servicing fees |
|
|
41 |
|
|
|
40,485 |
|
|
|
— |
|
|
|
40,526 |
|
|
|
— |
|
|
|
40,526 |
|
Management fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,321 |
|
|
|
14,321 |
|
Loan fulfillment fees |
|
|
— |
|
|
|
— |
|
|
|
8,443 |
|
|
|
8,443 |
|
|
|
— |
|
|
|
8,443 |
|
Professional services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,124 |
|
|
|
4,124 |
|
Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,285 |
|
|
|
3,285 |
|
Loan collection and liquidation |
|
|
54 |
|
|
|
1,986 |
|
|
|
— |
|
|
|
2,040 |
|
|
|
— |
|
|
|
2,040 |
|
Safekeeping |
|
|
— |
|
|
|
1,771 |
|
|
|
122 |
|
|
|
1,893 |
|
|
|
— |
|
|
|
1,893 |
|
Loan origination |
|
|
— |
|
|
|
— |
|
|
|
1,006 |
|
|
|
1,006 |
|
|
|
— |
|
|
|
1,006 |
|
Other (2) |
|
|
102 |
|
|
|
439 |
|
|
|
— |
|
|
|
541 |
|
|
|
8,234 |
|
|
|
8,775 |
|
|
|
|
197 |
|
|
|
44,681 |
|
|
|
9,571 |
|
|
|
54,449 |
|
|
|
29,964 |
|
|
|
84,413 |
|
Pretax income (loss) |
|
$ |
76,564 |
|
|
$ |
(10,369 |
) |
|
$ |
21,218 |
|
|
$ |
87,413 |
|
|
$ |
(26,423 |
) |
|
$ |
60,990 |
|
Total assets at end of period |
|
$ |
1,471,470 |
|
|
$ |
9,421,790 |
|
|
$ |
719,756 |
|
|
$ |
11,613,016 |
|
|
$ |
467,934 |
|
|
$ |
12,080,950 |
|
(1)All investment income is from external customers. The segments do not recognize intersegment income. (2)Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.
|