Segments

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segments

Note 25—Segments

The Company operates in four segments as described in Note 1 ‒ Organization.

The Company’s reportable segments are identified based on PMT’s investment strategies. The Company’s chief operating decision maker is its chief executive officer. 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.

Financial highlights by operating segment are summarized below:

	Credit			Interest rate
	sensitive			sensitive			Correspondent
Quarter ended September 30, 2024	strategies			strategies			production			Corporate			Total
	(in thousands)
Net investment income:
Net gains (losses) on investments and financings	$	27,113		$	119,582		$	—		$	—		$	146,695
Net gains on loans acquired for sale		—			—			20,059			—			20,059
Net loan servicing fees		—			(85,080	)		—			—			(85,080	)
Net interest expense:
Interest income		21,389			128,458			23,853			3,034			176,734
Interest expense		21,921			136,873			24,273			1,104			184,171
		(532	)		(8,415	)		(420	)		1,930			(7,437	)
Other		(65	)		—			6,692			—			6,627
		26,516			26,087			26,331			1,930			80,864
Expenses:
Loan fulfillment and servicing fees    payable to PFSI		20			22,220			11,492			—			33,732
Management fees		—			—			—			7,153			7,153
Other		47			3,376			1,590			8,432			13,445
		67			25,596			13,082			15,585			54,330
Pretax income	$	26,449		$	491		$	13,249		$	(13,655	)	$	26,534
Total assets at end of quarter	$	1,453,245		$	9,429,883		$	1,724,696		$	447,830		$	13,055,654

	Credit			Interest rate
	sensitive			sensitive			Correspondent
Quarter ended September 30, 2023	strategies			strategies			production			Corporate			Total
	(in thousands)
Net investment income:
Net gains (losses) on investments and financings	$	38,772		$	(148,316	)	$	—		$	—		$	(109,544	)
Net gains on loans acquired for sale		—			—			13,558			—			13,558
Net loan servicing fees		—			281,298			—			—			281,298
Net interest expense:
Interest income		26,235			114,430			14,656			3,605			158,926
Interest expense		23,235			142,942			16,388			1,353			183,918
		3,000			(28,512	)		(1,732	)		2,252			(24,992	)
Other		(251	)		—			3,360			—			3,109
		41,521			104,470			15,186			2,252			163,429
Expenses:
Loan fulfillment and servicing fees    payable to PFSI		33			20,224			5,531			—			25,788
Management fees		—			—			—			7,175			7,175
Other		492			2,683			809			8,062			12,046
		525			22,907			6,340			15,237			45,009
Pretax income	$	40,996		$	81,563		$	8,846		$	(12,985	)	$	118,420
Total assets at end of quarter	$	1,620,322		$	10,079,073		$	1,134,812		$	389,129		$	13,223,336

	Credit			Interest rate
	sensitive			sensitive			Correspondent
Nine months ended September 30, 2024	strategies			strategies			production			Corporate			Total
	(in thousands)
Net investment income:
Net gains (losses) on investments and financings	$	104,114		$	62,591		$	—		$	—		$	166,705
Net gains on loans acquired for sale		—			—			46,737			—			46,737
Net loan servicing fees		—			57,119			—			—			57,119
Net interest expense:
Interest income		68,520			343,954			50,652			9,002			472,128
Interest expense		69,204			403,262			51,541			3,532			527,539
		(684	)		(59,308	)		(889	)		5,470			(55,411	)
Other		(155	)		—			11,272			—			11,117
		103,275			60,402			57,120			5,470			226,267
Expenses:
Loan fulfillment and servicing fees    payable to PFSI		60			62,706			19,935			—			82,701
Management fees		—			—			—			21,474			21,474
Other		202			7,574			2,716			24,076			34,568
		262			70,280			22,651			45,550			138,743
Pretax income	$	103,013		$	(9,878	)	$	34,469		$	(40,080	)	$	87,524
Total assets at end of period	$	1,453,245		$	9,429,883		$	1,724,696		$	447,830		$	13,055,654

	Credit			Interest rate
	sensitive			sensitive			Correspondent
Nine months ended September 30, 2023	strategies			strategies			production			Corporate			Total
	(in thousands)
Net investment income:
Net gains (losses) on investments and financings	$	161,867		$	(148,106	)	$	—		$	—		$	13,761
Net gains on loans acquired for sale		—			—			24,477			—			24,477
Net loan servicing fees		—			366,438			—			—			366,438
Net interest expense:
Interest income		72,775			315,168			77,292			9,394			474,629
Interest expense		62,790			406,098			78,259			3,298			550,445
		9,985			(90,930	)		(967	)		6,096			(75,816	)
Other		(251	)		—			15,638			—			15,387
		171,601			127,402			39,148			6,096			344,247
Expenses:
Loan fulfillment and servicing fees    payable to PFSI		142			60,881			22,895			—			83,918
Management fees		—			—			—			21,510			21,510
Other		2,039			5,155			4,224			23,327			34,745
		2,181			66,036			27,119			44,837			140,173
Pretax income	$	169,420		$	61,366		$	12,029		$	(38,741	)	$	204,074
Total assets at end of period	$	1,620,322		$	10,079,073		$	1,134,812		$	389,129		$	13,223,336