Segments

3 Months Ended

Mar. 31, 2022

Segments

Segments

Note 23—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, execution and management of early buyout loan transactions and servicing of loans sourced and managed by the investment management segment for PMT, including executing the loan resolution strategy identified by the investment management segment relating to distressed mortgage loans.

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

Financial performance and results by segment are as follows:

	Quarter ended March 31, 2022
	Mortgage Banking						Investment
	Production		Servicing		Total		Management		Total
	(in thousands)
Revenue: (1)
Net gains on loans held for sale at fair value	$	221,610	$	76,849	$	298,459	$	—	$	298,459
Loan origination fees		67,858		—		67,858		—		67,858
Fulfillment fees from PennyMac Mortgage Investment Trust		16,754		—		16,754		—		16,754
Net loan servicing fees		—		286,309		286,309		—		286,309
Net interest income (expense):				—
Interest income		30,941		22,941		53,882		—		53,882
Interest expense		27,059		50,248		77,307		—		77,307
		3,882		(27,307)		(23,425)		—		(23,425)
Management fees		—		—		—		8,117		8,117
Other		785		616		1,401		2,031		3,432
Total net revenue		310,889		336,467		647,356		10,148		657,504
Expenses		301,619		111,314		412,933		10,051		422,984
Income before provision for income taxes	$	9,270	$	225,153	$	234,423	$	97	$	234,520
Segment assets at quarter end	$	4,905,974	$	9,689,282	$	14,595,256	$	22,646	$	14,617,902

(1) All revenues are from external customers.

	Quarter ended March 31, 2021
	Mortgage Banking						Investment
	Production		Servicing		Total		Management		Total
	(in thousands)
Revenue: (1)
Net gains on loans held for sale at fair value	$	515,963	$	238,378	$	754,341	$	—	$	754,341
Loan origination fees		104,037		—		104,037		—		104,037
Fulfillment fees from PennyMac Mortgage Investment Trust		60,835		—		60,835		—		60,835
Net loan servicing fees		—		39,720		39,720		—		39,720
Net interest income (expense):
Interest income		29,531		52,550		82,081		—		82,081
Interest expense		38,072		69,638		107,710		3		107,713
		(8,541)		(17,088)		(25,629)		(3)		(25,632)
Management fees		—		—		—		8,449		8,449
Other		597		1,197		1,794		1,142		2,936
Total net revenue		672,891		262,207		935,098		9,588		944,686
Expenses		309,996		120,463		430,459		8,219		438,678
Income before provision for income taxes	$	362,895	$	141,744	$	504,639	$	1,369	$	506,008
Segment assets at quarter end	$	8,886,460	$	22,393,249	$	31,279,709	$	18,271	$	31,297,980

(1) All revenues are from external customers.