Parent Company Information

12 Months Ended

Dec. 31, 2024

Parent Company Information

Parent Company Information

Note 28—Parent Company Information

The Company’s debt financing agreements require PLS, the Company’s indirect controlled subsidiary, to comply with financial covenants that include a minimum tangible net worth of $1.3 billion. PLS is limited from transferring funds to the Parent by this minimum tangible net worth requirement. The Company’s Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by the Company’s existing and future wholly-owned domestic subsidiaries (other than certain excluded subsidiaries defined in the indentures under which the Unsecured Notes were issued).

PENNYMAC FINANCIAL SERVICES, INC.

CONDENSED BALANCE SHEETS

	December 31,
	2024		2023
	(in thousands)
ASSETS
Cash	$	2,994	$	8,639
Investments in subsidiaries		4,809,214		4,488,039
Due from subsidiaries		3,012,578		2,322,854
Total assets	$	7,824,786	$	6,819,532
LIABILITIES AND STOCKHOLDERS' EQUITY
Unsecured senior notes	$	3,164,032	$	2,519,651
Accounts payable and accrued expenses		34,274		29,636
Payable to subsidiaries		—		187
Income taxes payable		796,829		731,455
Total liabilities		3,995,135		3,280,929
Stockholders' equity		3,829,651		3,538,603
Total liabilities and stockholders' equity	$	7,824,786	$	6,819,532

PENNYMAC FINANCIAL SERVICES, INC.

CONDENSED STATEMENTS OF INCOME

	Year ended December 31,
	2024		2023		2022
	(in thousands)
Revenues
Dividends from subsidiaries	$	9,378	$	80,617	$	417,391
Net interest income:
Interest income:
From non-affiliates		5		—		—
From subsidiary		255,773		156,082		121,452
		255,778		156,082		121,452
Interest expense		184,304		98,396		95,014
		71,474		57,686		26,438
Total net revenues		80,852		138,303		443,829
Expenses
Charitable contributions		2,500		—		—
Other		838		931		267
Total expenses		3,338		931		267
Income before provision for income taxes and equity in undistributed earnings of subsidiaries		77,514		137,372		443,562
Provision for income taxes		66,398		31,267		129,948
Income before equity in undistributed earnings of subsidiaries		11,116		106,105		313,614
Equity in undistributed earnings of subsidiaries		300,307		38,551		161,893
Net income	$	311,423	$	144,656	$	475,507

PENNYMAC FINANCIAL SERVICES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

	Year ended December 31,
	2024		2023		2022
	(in thousands)
Cash flows from operating activities
Net income	$	311,423	$	144,656	$	475,507
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed earnings of subsidiaries		(300,307)		(38,551)		(161,893)
Amortization of net debt issuance costs		6,509		3,802		3,701
Decrease in receivable from PennyMac Mortgage Investment Trust		—		27		—
Increase in intercompany receivable		(698,869)		(894,204)		(31,566)
Increase (decrease) in accounts payable and accrued expenses		4,638		3,280		(1,779)
(Decrease) increase in payable to subsidiaries		(187)		52		19
Increase in income taxes payable		65,374		32,383		217,771
Net cash (used in) provided by operating activities		(611,419)		(748,555)		501,760
Cash flows from financing activities
Issuance of unsecured senior notes		650,000		750,000		—
Payment of debt issuance costs		(12,128)		(14,071)		—
Payment of dividend to holders of common stock		(52,160)		(41,446)		(54,621)
Issuance of common stock pursuant to exercise of stock options		20,062		17,215		2,947
Payment of withholding taxes relating to stock-based compensation		—		—		(7,780)
Repurchase of common stock		—		—		(406,086)
Net cash provided by (used in) financing activities		605,774		711,698		(465,540)
Net (decrease) increase in cash (1)		(5,645)		(36,857)		36,220
Cash at beginning of year		8,639		45,496		9,276
Cash at end of year	$	2,994	$	8,639	$	45,496
Supplemental cash flow information:
Non-cash financing activity:
Repurchase of common stock by PNMAC on behalf of Parent company	$	—	$	71,491	$	—
Payment of withholding taxes relating to stock-based compensation by PNMAC on behalf of Parent company	$	9,401	$	9,142	$	—
Issuance of common stock in settlement of directors' fees	$	256	$	180	$	205

(1) The Company did not hold restricted cash during the years presented.