Segments

12 Months Ended

Dec. 31, 2021

Segments

Segments

Note 24—Segments

The Company operates in three segments: production, servicing and investment management.

Two of the segments are in the mortgage banking business: production and servicing. The production segment performs loan origination, acquisition and sale activities. The servicing segment performs servicing of loans on behalf of PMT and non-affiliate investors, execution and management of early buyout transactions and servicing of loans sourced and managed by the investment management segment for PMT.

The investment management segment represents the activities of the Company’s investment manager, which include sourcing, performing diligence, bidding and closing investment asset acquisitions, managing the acquired assets and correspondent production activities for PMT.

Financial performance and results by segment are as follows:

	Year ended December 31, 2021
	Mortgage Banking						Investment
	Production		Servicing		Total		Management		Total
	(in thousands)
Revenues: (1)
Net gains on loans held for sale at fair value	$	1,746,650	$	717,751	$	2,464,401	$	—	$	2,464,401
Loan origination fees		384,154		—		384,154		—		384,154
Fulfillment fees from PennyMac Mortgage Investment Trust		178,927		—		178,927		—		178,927
Net loan servicing fees		—		182,954		182,954		—		182,954
Net interest expense:
Interest income		134,706		165,463		300,169		—		300,169
Interest expense		139,296		251,393		390,689		10		390,699
		(4,590)		(85,930)		(90,520)		(10)		(90,530)
Management fees		—		—		—		37,801		37,801
Other		1,623		2,520		4,143		5,511		9,654
Total net revenue		2,306,764		817,295		3,124,059		43,302		3,167,361
Expenses		1,262,353		510,617		1,772,970		35,208		1,808,178
Income before provision for income taxes	$	1,044,411	$	306,678	$	1,351,089	$	8,094	$	1,359,183
Segment assets at year end	$	8,934,032	$	9,821,436	$	18,755,468	$	21,144	$	18,776,612

(1) All revenues are from external customers.

	Year ended December 31, 2020
	Mortgage Banking						Investment
	Production		Servicing		Total		Management		Total
	(in thousands)
Revenues: (1)
Net gains on loans held for sale at fair value	$	2,297,108	$	443,677	$	2,740,785	$	—	$	2,740,785
Loan origination fees		285,551		—		285,551		—		285,551
Fulfillment fees from PennyMac Mortgage Investment Trust		222,200		—		222,200		—		222,200
Net loan servicing fees		—		439,448		439,448		—		439,448
Net interest income (expense):
Interest income		101,605		145,421		247,026		—		247,026
Interest expense		82,160		189,368		271,528		23		271,551
		19,445		(43,947)		(24,502)		(23)		(24,525)
Management fees		—		—		—		34,538		34,538
Other		695		1,584		2,279		5,321		7,600
Total net revenue		2,824,999		840,762		3,665,761		39,836		3,705,597
Expenses		860,878		578,618		1,439,496		25,492		1,464,988
Income before provision for income taxes	$	1,964,121	$	262,144	$	2,226,265	$	14,344	$	2,240,609
Segment assets at year end	$	7,870,398	$	23,709,122	$	31,579,520	$	18,275	$	31,597,795

(1) All revenues are from external customers.

	Year ended December 31, 2019
	Mortgage Banking						Investment
	Production		Servicing		Total		Management			Total
	(in thousands)
Revenues: (1)
Net gains on loans held for sale at fair value	$	635,464	$	90,064	$	725,528	$	—		$	725,528
Loan origination fees		174,156		—		174,156		—			174,156
Fulfillment fees from PennyMac Mortgage Investment Trust		160,610		—		160,610		—			160,610
Net loan servicing fees		—		293,665		293,665		—			293,665
Net interest income (expense):
Interest income		82,338		206,362		288,700		—			288,700
Interest expense		59,973		151,950		211,923		56			211,979
		22,365		54,412		76,777		(56)			76,721
Management fees		—		—		—		36,492			36,492
Other		1,289		2,643		3,932		6,300			10,232
Total net revenue		993,884		440,784		1,434,668		42,736			1,477,404
Expenses		466,050		455,535		921,585		26,375			947,960
Income before provision for income taxes	$	527,834	$	(14,751)	$	513,083	$	16,361	$		529,444
Segment assets at year end	$	4,836,472	$	5,347,549	$	10,184,021	$	19,996		$	10,204,017

(1) All revenues are from external customers.