PennyMac Financial Services Inc
For the period ended Dec 31, 2024. Filed Feb 19, 2025.
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FY2024 · Filed Feb 19, 2025
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, | |||||||||
| · 2024 · · 2023 · · 2022 | |||||||||
| · · (in thousands) | |||||||||
| Cash flow from operating activities | | | | | | | | | |
| Net income | | $311,423 | | $144,656 | | $475,507 | |||
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | |
| Net gains on loans held for sale at fair value | | | (817,368) | | | (545,943) | | | (791,633) |
| Change in fair value of mortgage servicing rights and mortgage servicing liabilities | | | 433,342 | | | 605,568 | | | (354,176) |
| Mortgage servicing rights hedging results | | | 832,483 | | | 236,778 | | | 631,484 |
| Accrual of unearned discounts on principal-only stripped mortgage-backed securities | | | (25,226) | | | — | | | — |
| Capitalization of interest on loans held for sale | | | (473) | | | (751) | | | (3,231) |
| Amortization of debt issuance costs | | | 28,812 | | | 21,432 | | | 19,198 |
| Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust | | | 177 | | | (192) | | | 371 |
| Results of real estate acquired in settlement in loans | | | (864) | | | (1,545) | | | (2,510) |
| Repricing of payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement | | | (201) | | | — | | | (576) |
| Stock-based compensation expense | | | 20,868 | | | 27,582 | | | 42,552 |
| Provision (reversal of provision) for servicing advance losses | | | 32,962 | | | 3,271 | | | (36,075) |
| Depreciation and amortization | | | 55,984 | | | 53,214 | | | 34,409 |
| Impairment of capitalized software | | | 147 | | | 46 | | | — |
| Amortization of operating lease right-of-use assets | | | 13,676 | | | 16,804 | | | 15,831 |
| Purchase of loans held for sale from PennyMac Mortgage Investment Trust | | | (81,997,773) | | | (72,441,699) | | | (50,575,617) |
| Origination of loans held for sale | | | (18,724,478) | | | (10,770,257) | | | (20,297,064) |
| Purchase of loans held for sale from non-affiliates | | | (2,862,610) | | | (2,057,135) | | | (1,802,769) |
| Purchase of loans from Ginnie Mae securities and early buyout investors | | | (3,367,264) | | | (2,555,865) | | | (6,199,212) |
| Sale to non-affiliates and principal payment of loans held for sale | | | 101,105,292 | | | 85,684,522 | | | 84,345,379 |
| Sale of loans held for sale to PennyMac Mortgage Investment Trust | | | 662,952 | | | — | | | 298,862 |
| Repurchase of loans subject to representations and warranties | | | (89,749) | | | (49,575) | | | (92,924) |
| Increase in servicing advances | | | (15,941) | | | (76,614) | | | (36,534) |
| (Increase) decrease in receivable from PennyMac Mortgage Investment Trust | | | (4,464) | | | 5,666 | | | 2,776 |
| Sale of real estate acquired in settlement of loans | | | 64,156 | | | 35,630 | | | 19,761 |
| (Increase) decrease in other assets | | | (95,757) | | | (60,442) | | | 191,384 |
| (Decrease) increase in accounts payable and accrued expenses | | | (78,651) | | | 121,677 | | | (109,485) |
| Decrease in operating lease liabilities | | | (17,924) | | | (21,158) | | | (19,392) |
| (Decrease) increase in payable to PennyMac Mortgage Investment Trust | | | (84,916) | | | 1,969 | | | (36,708) |
| Payments to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement | | | — | | | — | | | (3,855) |
| Increase in income taxes payable | | | 88,115 | | | 40,142 | | | 317,482 |
| Net cash used in operating activities | | | (4,533,270) | | | (1,582,219) | | | 6,033,235 |
Statements continue on the next page.
** (Continued)**PENNYMAC FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · Year ended December 31, | |||||||||
| · 2024 · · 2023 · · 2022 | |||||||||
| · · (in thousands) | |||||||||
| Cash flow from investing activities | | | | | | | | | |
| (Increase) decrease in short-term investment | | | (410,285) | | | 1,926 | | | (5,321) |
| Purchase of principal-only stripped mortgage-backed securities | | | (935,356) | | | — | | | — |
| Repayment of principal-only stripped mortgage-backed securities | | | 96,516 | | | — | | | — |
| Sale of interest-only stripped mortgage-backed securities | | | 202,186 | | | 98,066 | | | — |
| Net settlement of derivative financial instruments used for hedging of mortgage servicing rights | | | (702,593) | | | (241,956) | | | (871,878) |
| Purchase of mortgage servicing rights | | | — | | | — | | | (3,993) |
| Transfer of mortgage servicing rights relating to delinquent loans to Agency | | | — | | | 305 | | | — |
| Acquisition of capitalized software | | | (20,382) | | | (34,784) | | | (71,935) |
| Purchase of furniture, fixtures, equipment and leasehold improvements | | | (1,715) | | | (1,386) | | | (7,159) |
| Sale of furniture, fixtures and equipment | | | — | | | 1,000 | | | — |
| (Increase) decrease in margin deposits | | | (116,326) | | | (96,459) | | | 238,704 |
| Net cash used in investing activities | | | (1,887,955) | | | (273,288) | | | (721,582) |
| Cash flow from financing activities | | | | | | | | | |
| Sale of assets under agreements to repurchase | | | 109,006,699 | | | 85,352,643 | | | 75,076,185 |
| Repurchase of assets sold under agreements to repurchase | | | (104,083,392) | | | (84,587,885) | | | (79,368,855) |
| Issuance of mortgage loan participation purchase and sale certificates | | | 23,148,016 | | | 22,233,907 | | | 19,312,943 |
| Repayment of mortgage loan participation purchase and sale certificates | | | (23,097,566) | | | (22,075,444) | | | (19,504,845) |
| Issuance of notes payable secured by mortgage servicing assets | | | 1,050,000 | | | 1,005,000 | | | 650,000 |
| Repayment of notes payable secured by mortgage servicing assets | | | (875,000) | | | (1,075,000) | | | — |
| Issuance of unsecured senior notes | | | 650,000 | | | 750,000 | | | — |
| Repayment of obligations under capital lease | | | — | | | — | | | (3,489) |
| Payment of debt issuance costs | | | (35,922) | | | (33,018) | | | (19,606) |
| Issuance of common stock by exercise of stock options | | | 20,062 | | | 17,215 | | | 2,947 |
| Payment of withholding taxes relating to stock-based compensation | | | (9,401) | | | (9,142) | | | (7,780) |
| Payment of dividends to holders of common stock | | | (52,160) | | | (41,446) | | | (54,621) |
| Repurchase of common stock | | | — | | | (71,491) | | | (406,086) |
| Net cash provided by (used in) financing activities | | | 5,721,336 | | | 1,465,339 | | | (4,323,207) |
| Net (decrease) increase in cash and restricted cash | | | (699,889) | | | (390,168) | | | 988,446 |
| Cash and restricted cash at beginning of year | | | 938,371 | | | 1,328,539 | | | 340,093 |
| Cash at end of year | | $238,482 | | $938,371 | | $1,328,539 | |||
| Cash and restricted cash at end of year are comprised of the following: | | | | | | | | | |
| Cash | | $238,482 | | $938,371 | | $1,328,536 | |||
| Restricted cash included in Other assets | | | — | | | — | | | 3 |
| | | $238,482 | | $938,371 | | $1,328,539 | |||
| Supplemental cash flow information: | | | | | | | | | |
| Cash paid for interest | | $797,212 | | $639,486 | | $329,975 | |||
| Cash paid (refunds received) for income taxes, net | | $1,488 | | $(1,167) | | $(127,742) | |||
| Non-cash investing activities: | | | | | | | | | |
| Mortgage servicing rights received from loan sales | | $2,280,830 | | $1,849,957 | | $1,718,094 | |||
| Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities | | $202,186 | | $98,066 | | $— | |||
| Operating right-of-use assets recognized | | $1,388 | | $2,893 | | $1,364 | |||
| Non-cash financing activities: | | | | | | | | | |
| Issuance of common stock in settlement of directors' fees | | $256 | | $180 | | $205 | |||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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