PennyMac Financial Services, Inc. Leases Disclosure
Note 13—Leases
The Company has operating lease agreements relating to its office facilities. The Company’s operating lease agreements have remaining terms ranging from less than one year to eight years; some of these operating lease agreements include options to extend the term for up to five years. None of the Company’s operating lease agreements require the Company to make variable lease payments.
The Company’s operating lease right-of-use assets, included in Other assets, and leasing activity is summarized below:
Year ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
(dollars in thousands) | |||||||||
Lease expense: | |||||||||
Operating leases | $ | 17,622 | $ | 15,870 | $ | 18,782 | |||
Short-term leases | 376 | 303 | 436 | ||||||
Sublease income | (1,510) | (1,405) | (902) | ||||||
Net lease expense included in Occupancy and equipment expense | $ | 16,488 | $ | 14,768 | $ | 18,316 | |||
Other information: | |||||||||
Payments for operating leases | $ | 20,836 | $ | 20,118 | $ | 24,026 | |||
Operating lease right-of-use assets recognized | $ | 40,148 | $ | 1,388 | $ | 2,893 | |||
Year end weighted averages: | |||||||||
Remaining lease term (in years) | 5.3 | 3.6 | 4.3 | ||||||
Discount rate | 5.6% | 4.0% | 3.8% | ||||||
The maturities of the Company’s operating lease liabilities are summarized below:
Year ended December 31, | Operating leases | ||
(in thousands) | |||
2026 | $ | 17,441 | |
2027 | 11,885 | ||
2028 | 12,718 | ||
2029 | 14,093 | ||
2030 | 16,065 | ||
Thereafter | 17,456 | ||
Total lease payments | 89,658 | ||
Less imputed interest | (14,553) | ||
$ | 75,105 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.