PennyMac Financial Services Inc
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
PFSI$62.85-5.4%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| | | | | | | |
|---|---|---|---|---|---|---|
| · · Six months ended June 30, | ||||||
| · 2024 · 2023 | ||||||
| | | (in thousands) | ||||
| Cash flow from operating activities | | | | | | |
| Net income | | $137,566 | | $88,628 | ||
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | |
| Net gains on loans held for sale at fair value | | | (338,505) | | | (245,804) |
| Change in fair value of mortgage servicing rights and mortgage servicing liabilities | | | 129,900 | | | 291,704 |
| Mortgage servicing rights hedging results | | | 466,422 | | | 107,909 |
| Accrual of unearned discounts on mortgage-backed securities | | | (9,090) | | | — |
| Capitalization of interest on loans held for sale | | | (247) | | | (507) |
| Amortization of debt issuance costs | | | 14,798 | | | 9,315 |
| Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust | | | 90 | | | (82) |
| Results of real estate acquired in settlement in loans | | | (599) | | | (341) |
| Stock-based compensation expense | | | 2,371 | | | 12,025 |
| Provision (reversal of provision) for servicing advance losses | | | 4,391 | | | (5,049) |
| Depreciation and amortization | | | 28,404 | | | 25,939 |
| Amortization of operating lease right-of-use assets | | | 6,883 | | | 9,154 |
| Purchase of loans held for sale from PennyMac Mortgage Investment Trust | | | (37,161,319) | | | (32,087,157) |
| Origination of loans held for sale | | | (6,972,822) | | | (5,303,061) |
| Purchase of loans held for sale from non-affiliates | | | (1,193,246) | | | (968,096) |
| Purchase of loans from Ginnie Mae securities and early buyout investors | | | (1,579,386) | | | (1,395,735) |
| Sale to non-affiliates and principal payment of loans held for sale | | | 44,537,449 | | | 38,410,109 |
| Repurchase of loans subject to representations and warranties | | | (44,863) | | | (24,345) |
| Decrease in servicing advances | | | 219,799 | | | 164,845 |
| (Increase) decrease in receivable from PennyMac Mortgage Investment Trust | | | (1,541) | | | 11,537 |
| Sale of real estate acquired in settlement of loans | | | 25,671 | | | 16,411 |
| Increase in other assets | | | (39,753) | | | (81,155) |
| Decrease in accounts payable and accrued expenses | | | (145,062) | | | (3,977) |
| Decrease in operating lease liabilities | | | (8,809) | | | (10,080) |
| Decrease in payable to PennyMac Mortgage Investment Trust | | | (108,839) | | | (82,156) |
| Increase in income taxes payable | | | 39,511 | | | 23,403 |
| Net cash used in operating activities | | | (1,990,826) | | | (1,036,566) |
Statements continue on the next page
(Continued)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| | | | | | | |
|---|---|---|---|---|---|---|
| · · Six months ended June 30, | ||||||
| · 2024 · 2023 | ||||||
| | | (in thousands) | ||||
| Cash flow from investing activities | | | | | | |
| (Increase) decrease in short-term investment | | | (178,504) | | | 4,106 |
| Purchase of principal-only stripped mortgage-backed securities | | | (935,356) | | | — |
| Repayment of principal-only stripped mortgage-backed securities | | | 13,452 | | | — |
| Net settlement of derivative financial instruments used for hedging of mortgage servicing rights | | | (391,462) | | | (20,239) |
| Transfer of mortgage servicing rights relating to delinquent loans to Agency | | | — | | | 232 |
| Acquisition of capitalized software | | | (8,661) | | | (19,244) |
| Purchase of furniture, fixtures, equipment and leasehold improvements | | | (1,319) | | | (631) |
| Increase in margin deposits | | | (18,556) | | | (150,716) |
| Net cash used in investing activities | | | (1,520,406) | | | (186,492) |
| Cash flow from financing activities | | | | | | |
| Sale of assets under agreements to repurchase | | | 48,557,391 | | | 39,333,545 |
| Repurchase of assets sold under agreements to repurchase | | | (45,912,545) | | | (38,551,928) |
| Issuance of mortgage loan participation purchase and sale certificates | | | 10,967,597 | | | 10,042,768 |
| Repayment of mortgage loan participation purchase and sale certificates | | | (10,901,474) | | | (9,824,304) |
| Issuance of notes payable secured by mortgage servicing assets | | | 725,000 | | | 680,000 |
| Repayment of notes payable secured by mortgage servicing assets | | | (875,000) | | | (150,000) |
| Issuance of unsecured senior notes | | | 650,000 | | | — |
| Payment of debt issuance costs | | | (25,208) | | | (10,119) |
| Issuance of common stock pursuant to exercise of stock options | | | 12,654 | | | 8,647 |
| Payment of withholding taxes relating to stock-based compensation | | | (9,401) | | | (9,142) |
| Payment of dividends to holders of common stock | | | (20,817) | | | (20,974) |
| Repurchase of common stock | | | — | | | (71,575) |
| Net cash provided by financing activities | | | 3,168,197 | | | 1,426,918 |
| Net (decrease) increase in cash and restricted cash | | | (343,035) | | | 203,860 |
| Cash and restricted cash at beginning of period | | | 938,371 | | | 1,328,539 |
| Cash at end of period | | $595,336 | | $1,532,399 | ||
| Supplemental cash flow information: | | | | | | |
| Cash paid for interest | | $373,389 | | $305,512 | ||
| Cash paid (refunds received) for income taxes, net | | $660 | | $(967) | ||
| Non-cash investing activities: | | | | | | |
| Mortgage servicing rights received from loan sales | | $953,727 | | $849,056 | ||
| Operating right-of-use assets recognized | | $— | | $1,727 | ||
| Non-cash financing activities: | | | | | | |
| Issuance of common stock in settlement of directors' fees | | $142 | | $102 | ||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.