PennyMac Financial Services Inc
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
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FY2023 · Filed Feb 21, 2024
PFSI$62.85-5.4%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 FLOW****S
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · Year ended December 31, | |||||||||
| · 2023 · 2022 · 2021 | |||||||||
| · · (in thousands) | |||||||||
| Cash flow from operating activities · · · · · · | |||||||||
| Net income | | $144,656 | | $475,507 | | $1,003,490 | |||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | | | | | | | | | |
| Net gains on loans held for sale at fair value | | | (545,943) | | | (791,633) | | | (2,464,401) |
| Change in fair value of mortgage servicing rights and mortgage servicing liabilities | | | 605,568 | | | (354,176) | | | 416,943 |
| Mortgage servicing rights hedging results | | | 236,778 | | | 631,484 | | | 475,215 |
| Capitalization of interest on loans held for sale | | | (751) | | | (3,231) | | | (19,244) |
| Accrual of interest on excess servicing spread financing payable to PennyMac Mortgage Investment Trust | | | — | | | — | | | 1,280 |
| Amortization of debt issuance costs | | | 21,432 | | | 19,198 | | | 24,321 |
| Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust | | | (192) | | | 371 | | | (195) |
| Results of real estate acquired in settlement in loans | | | (1,545) | | | (2,510) | | | (1,993) |
| Repricing of payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement | | | — | | | (576) | | | — |
| Stock-based compensation expense | | | 27,582 | | | 42,552 | | | 37,794 |
| Provision (reversal of provision) for servicing advance losses | | | 3,271 | | | (36,075) | | | (47,878) |
| Depreciation and amortization | | | 53,214 | | | 34,409 | | | 28,645 |
| Impairment of capitalized software | | | 46 | | | — | | | 728 |
| Amortization of operating lease right-of-use assets | | | 16,804 | | | 15,831 | | | 14,295 |
| Purchase of loans held for sale from PennyMac Mortgage Investment Trust | | | (72,441,699) | | | (50,575,617) | | | (67,851,634) |
| Origination of loans held for sale | | | (10,770,257) | | | (20,297,064) | | | (54,857,114) |
| Purchase of loans held for sale from non-affiliates | | | (2,057,135) | | | (1,802,769) | | | (4,896,527) |
| Purchase of loans from Ginnie Mae securities and early buyout investors | | | (2,555,865) | | | (6,199,212) | | | (23,644,025) |
| Sale to non-affiliates and principal payment of loans held for sale | | | 85,684,522 | | | 84,345,379 | | | 154,450,942 |
| Sale of loans held for sale to PennyMac Mortgage Investment Trust | | | — | | | 298,862 | | | — |
| Repurchase of loans subject to representations and warranties | | | (49,575) | | | (92,924) | | | (99,508) |
| Increase in servicing advances | | | (76,614) | | | (36,534) | | | (232,574) |
| Decrease in receivable from PennyMac Mortgage Investment Trust | | | 5,666 | | | 2,776 | | | 35,243 |
| Sale of real estate acquired in settlement of loans | | | 35,630 | | | 19,761 | | | 14,555 |
| (Increase) decrease in other assets | | | (60,442) | | | 191,384 | | | 61,871 |
| Increase (decrease) in accounts payable and accrued expenses | | | 121,677 | | | (109,485) | | | 34,666 |
| Decrease in operating lease liabilities | | | (21,158) | | | (19,392) | | | (16,310) |
| Increase (decrease) in payable to PennyMac Mortgage Investment Trust | | | 1,969 | | | (36,708) | | | 36,549 |
| Payments to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement | | | — | | | (3,855) | | | (4,635) |
| Increase in income taxes payable | | | 40,142 | | | 317,482 | | | 62,562 |
| Net cash (used in) provided by operating activities | | | (1,582,219) | | | 6,033,235 | | | 2,563,061 |
Statements continue on the next page.
** (Continued)**PENNYMAC FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · Year ended December 31, | |||||||||
| · 2023 · 2022 · 2021 | |||||||||
| · · (in thousands) | |||||||||
| Cash flow from investing activities | | | | | | | | | |
| Decrease (increase) in short-term investment | | | 1,926 | | | (5,321) | | | 8,344 |
| Sale of interest-only stripped securities | | | 98,066 | | | — | | | — |
| Net change in assets purchased from PMT under agreement to resell | | | — | | | — | | | 80,862 |
| Net settlement of derivative financial instruments used for hedging of mortgage servicing rights | | | (241,956) | | | (871,878) | | | (434,397) |
| Purchase of mortgage servicing rights | | | — | | | (3,993) | | | — |
| Transfer of mortgage servicing rights relating to delinquent loans to Agency | | | 305 | | | — | | | — |
| Acquisition of capitalized software | | | (34,784) | | | (71,935) | | | (48,980) |
| Purchase of furniture, fixtures, equipment and leasehold improvements | | | (1,386) | | | (7,159) | | | (7,899) |
| Sale of furniture, fixtures and equipment | | | 1,000 | | | — | | | — |
| (Increase) decrease in margin deposits | | | (96,459) | | | 238,704 | | | 97,701 |
| Net cash used in investing activities | | | (273,288) | | | (721,582) | | | (304,369) |
| Cash flow from financing activities | | | | | | | | | |
| Sale of assets under agreements to repurchase | | | 85,352,643 | | | 75,076,185 | | | 136,179,744 |
| Repurchase of assets sold under agreements to repurchase | | | (84,587,885) | | | (79,368,855) | | | (138,546,379) |
| Issuance of mortgage loan participation purchase and sale certificates | | | 22,233,907 | | | 19,312,943 | | | 23,784,510 |
| Repayment of mortgage loan participation purchase and sale certificates | | | (22,075,444) | | | (19,504,845) | | | (23,826,142) |
| Issuance of notes payable secured by mortgage servicing assets | | | 1,005,000 | | | 650,000 | | | — |
| Repayment of notes payable secured by mortgage servicing assets | | | (1,075,000) | | | — | | | — |
| Issuance of unsecured senior notes | | | 750,000 | | | — | | | 1,150,000 |
| Repayment of obligations under capital lease | | | — | | | (3,489) | | | (8,375) |
| Repayment of excess servicing spread financing | | | — | | | — | | | (134,624) |
| Payment of debt issuance costs | | | (33,018) | | | (19,606) | | | (37,567) |
| Issuance of common stock pursuant to exercise of stock options | | | 17,215 | | | 2,947 | | | 7,536 |
| Payment of withholding taxes relating to stock-based compensation | | | (9,142) | | | (7,780) | | | (8,993) |
| Payment of dividends to holders of common stock | | | (41,446) | | | (54,621) | | | (52,896) |
| Repurchase of common stock | | | (71,491) | | | (406,086) | | | (958,194) |
| Net cash provided by (used in) financing activities | | | 1,465,339 | | | (4,323,207) | | | (2,451,380) |
| Net (decrease) increase in cash and restricted cash | | | (390,168) | | | 988,446 | | | (192,688) |
| Cash and restricted cash at beginning of year | | | 1,328,539 | | | 340,093 | | | 532,781 |
| Cash and restricted cash at end of year | | $938,371 | | $1,328,539 | | $340,093 | |||
| Cash and restricted cash at end of year are comprised of the following: | | | | | | | | | |
| Cash | | $938,371 | | $1,328,536 | | $340,069 | |||
| Restricted cash included in Other assets | | | — | | | 3 | | | 24 |
| | | $938,371 | | $1,328,539 | | $340,093 | |||
| Supplemental cash flow information: | | | | | | | | | |
| Cash paid for interest | | $639,486 | | $329,975 | | $389,527 | |||
| (Refunds received) cash paid for income taxes, net | | $(1,167) | | $(127,742) | | $293,131 | |||
| Non-cash investing activities: | | | | | | | | | |
| Mortgage servicing rights received from loan sales | | $1,849,957 | | $1,718,094 | | $1,861,949 | |||
| Exchange of mortgage servicing spread for interest-only stripped securities | | $98,066 | | $— | | $— | |||
| Operating right-of-use assets recognized | | $2,893 | | $1,364 | | $28,401 | |||
| Non-cash financing activities: | | | | | | | | | |
| Issuance of common stock in settlement of directors' fees | | $180 | | $205 | | $200 | |||
| Mortgage servicing liabilities resulting from loan sales | | $— | | $— | | $106,631 | |||
| Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement | | $— | | $— | | $557 | |||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.