PennyMac Mortgage Investment Trust
For the period ended Dec 31, 2023. Filed Feb 22, 2024.
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FY2023 · Filed Feb 22, 2024
PMT$7.87-1.6%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (in thousands) | |||
| Cash flows from operating activities | |||
| Net income (loss) | $199,654 | $(73,287) | $56,854 |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
| Change in fair value of mortgage servicing rights | 296,847 | (449,435) | 337,186 |
| Mortgage servicing rights hedging results | 92,775 | 204,879 | 345,041 |
| Net (gains) losses on investments and financings | (178,099) | 658,787 | (304,079) |
| Net gains on loans acquired for sale | (39,857) | (25,692) | (87,273) |
| Capitalization of interest and fees on loans at fair value | — | — | (251) |
| Accrual of interest on excess servicing spread purchased from PennyMac Financial Services, Inc. | — | — | (1,280) |
| Accrual of unearned discounts and amortization of purchase premiums on mortgage-backed securities, loans at fair value, and asset-backed financings | (355) | (9,815) | 9,803 |
| Amortization of debt issuance costs | 15,141 | 16,563 | 27,156 |
| Results of real estate acquired in settlement of loans | 186 | (496) | (3,075) |
| Share-based compensation expense | 5,205 | 4,310 | 2,419 |
| Purchase of loans acquired for sale at fair value from nonaffiliates | (87,503,604) | (87,844,404) | (181,370,296) |
| Purchase of loans acquired for sale at fair value from PennyMac Financial Services, Inc. | — | (298,862) | — |
| Sale to nonaffiliates and repayment of loans acquired for sale | 15,936,124 | 39,077,156 | 110,919,477 |
| Sale of loans acquired for sale to PennyMac Financial Services, Inc. | 72,441,699 | 50,575,617 | 67,851,630 |
| Repurchase of loans subject to representations and warranties | (58,755) | (92,294) | (105,627) |
| (Increase) decrease in servicing advances | (8,924) | 6,979 | (83,219) |
| Decrease (increase) in due from PennyMac Financial Services, Inc. | 3,504 | 12,393 | (7,744) |
| Repurchase of real estate previously sold as loans acquired for sale | (456) | — | — |
| Increase in other assets | (86,086) | (189,551) | (318,237) |
| Increase (decrease) in accounts payable and accrued liabilities | 194,059 | 73,162 | (27,320) |
| Decrease in due to PennyMac Financial Services, Inc. | (7,110) | (3,719) | (46,914) |
| Increase (decrease) in income taxes payable | 38,225 | 142,180 | (13,965) |
| Net cash provided by (used in) operating activities | 1,340,173 | 1,784,471 | (2,819,714) |
| Cash flows from investing activities | |||
| Net decrease (increase) in short-term investments | 123,933 | (84,272) | (40,704) |
| Purchase of mortgage-backed securities at fair value | (3,172,193) | (3,718,093) | (2,232,923) |
| Sale and repayment of mortgage-backed securities at fair value | 2,979,019 | 1,358,199 | 1,696,400 |
| Purchase of subordinate mortgage pass-through security associated with consolidated variable interest entity | — | — | (28,815) |
| Repurchase of loans at fair value | (119) | — | — |
| Repayment of loans at fair value | 94,550 | 159,647 | 122,260 |
| Settlement and repayment of excess servicing spread receivable from PennyMac Financial Services, Inc. | — | — | 134,624 |
| Net settlement of derivative financial instruments | 9,700 | 25,489 | 3,863 |
| Distribution from credit risk transfer arrangements | 180,573 | 478,388 | 1,300,061 |
| Purchase of mortgage servicing rights at fair value | (14,632) | — | — |
| Transfer of mortgage servicing rights relating to delinquent loans to Agency | 472 | (104) | — |
| Sale of real estate acquired in settlement of loans | 4,668 | 7,999 | 17,096 |
| (Increase) decrease in margin deposits | (227,697) | (94,727) | 121,151 |
| Net cash (used in) provided by investing activities | (21,726) | (1,867,474) | 1,093,013 |
Statements continued on the next page
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
| Year ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (in thousands) | |||
| Cash flows from financing activities | |||
| Sale of assets under agreements to repurchase | 120,565,014 | 121,017,757 | 193,729,139 |
| Repurchase of assets sold under agreements to repurchase | (121,555,845) | (121,073,659) | (193,372,527) |
| Issuance of mortgage loan participation purchase and sale agreements | 2,146,821 | 3,742,870 | 4,172,863 |
| Repayment of mortgage loan participation purchase and sale agreements | (2,146,821) | (3,792,858) | (4,139,725) |
| Issuance of notes payable secured by credit risk transfer and mortgage servicing assets | 780,000 | 944,999 | 2,022,127 |
| Repayment of notes payable secured by credit risk transfer and mortgage servicing assets | (675,032) | (611,943) | (1,472,508) |
| Issuance of unsecured senior notes | 53,500 | — | 345,000 |
| Issuance of asset-backed financings at fair value | — | 382,423 | 690,550 |
| Repayment of asset-backed financings at fair value | (91,406) | (155,654) | (115,137) |
| Payment of debt issuance costs | (13,967) | (14,170) | (21,007) |
| Repurchase of assets sold to PennyMac Financial Services, Inc. under agreement to repurchase | — | — | (80,862) |
| Payment of dividends to preferred shareholders | (41,818) | (41,819) | (30,146) |
| Payment of dividends to common shareholders | (140,617) | (173,546) | (183,973) |
| Payment of vested share-based compensation tax withholdings | (567) | (522) | (730) |
| Issuance of preferred shares | — | — | 250,000 |
| Payment of issuance costs related to preferred shares | — | — | (8,225) |
| Payment of contingent underwriting fees payable related to common shares | — | — | (4) |
| Repurchase of common shares | (28,490) | (87,992) | (56,855) |
| Net cash (used in) provided by financing activities | (1,149,228) | 135,886 | 1,727,980 |
| Net increase in cash | 169,219 | 52,883 | 1,279 |
| Cash at beginning of year | 111,866 | 58,983 | 57,704 |
| Cash at end of year | $281,085 | $111,866 | $58,983 |
| Supplemental cash flow information | |||
| Payments (refunds), net: | |||
| Income taxes | $6,517 | $(5,806) | $1,771 |
| Interest | $718,362 | $368,671 | $298,862 |
| Non cash investing activities: | |||
| Receipt of mortgage servicing rights as proceeds from sales of loans | $292,527 | $670,343 | $1,484,629 |
| Unsettled purchase of mortgage servicing rights | $1,626 | $— | $— |
| Exchange of mortgage servicing spread for interest-only stripped securities and interest receivable | $105,096 | $— | $— |
| Retention of subordinate mortgage-backed securities in loan securitizations | $— | $23,485 | $42,256 |
| Recognition of loans at fair value resulting from initial consolidation of variable interest entities | $— | $405,908 | $1,542,333 |
| Recombination of MSRs to loans at fair value resulting from initial consolidation of variable interest entity | $— | $— | $9,824 |
| Receipt of excess servicing spread pursuant to recapture agreement with PennyMac Financial Services, Inc. | $— | $— | $557 |
| Transfer of loans and advances to real estate acquired in settlement of loans | $1,205 | $— | $— |
| Non-cash financing activities: | |||
| Recognition of asset-backed financings resulting from initial consolidation of VIEs | $— | $382,423 | $1,471,262 |
| Dividends declared, not paid | $34,750 | $35,658 | $44,764 |
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