Note 25—Segments

The Company’s reportable segments are identified based on PMT’s investment strategies. 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. The reportable segments are evaluated based on income or loss before benefit from income taxes. The chief operating decision maker uses pre-tax segment results to assess segment performance and allocate operating and capital resources among the segments. The Company’s chief operating decision maker is its chief executive officer.

Financial highlights by segment are summarized below:


Year ended December 31, 2025	Credit sensitive strategies			Interest rate sensitive strategies			Correspondent production		Reportable segment total			Corporate			Consolidated total
	(in thousands)
Net investment income (1):
Net gains on investments and financings
Mortgage-backed securities	$	(1,321	)	$	149,665		$	—	$	148,344		$	—		$	148,344
Loans held for investment		15,124			1,275			—		16,399			—			16,399
Credit risk transfer arrangements		48,370			—			—		48,370			—			48,370
		62,173			150,940			—		213,113			—			213,113
Net gains on loans held for sale		—			—			52,194		52,194			—			52,194
Net loan servicing fees		—			48,932			—		48,932			—			48,932
Net interest expense:
Interest income		78,978			620,230			141,584		840,792			10,120			850,912
Interest expense		75,444			670,458			119,144		865,046			5,348			870,394
		3,534			(50,228	)		22,440		(24,254	)		4,772			(19,482	)
Other		(64	)		—			12,768		12,704			—			12,704
		65,643			149,644			87,402		302,689			4,772			307,461
Expenses:
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees		6			84,426			—		84,432			—			84,432
Management fees		—			—			—		—			27,649			27,649
Loan fulfillment fees		—			—			23,804		23,804			—			23,804
Professional services		—			—			28,508		28,508			9,266			37,774
Compensation		—			—			—		—			11,886			11,886
Loan collection and liquidation		89			8,196			—		8,285			—			8,285
Safekeeping		—			4,308			322		4,630			—			4,630
Loan origination		—			—			2,278		2,278			—			2,278
Other (2)		345			2,261			411		3,017			9,888			12,905
		440			99,191			55,323		154,954			58,689			213,643
Pretax income (loss)	$	65,203		$	50,453		$	32,079	$	147,735		$	(53,917	)	$	93,818
Total assets at end of year	$	1,604,694		$	16,512,045		$	2,767,400	$	20,884,139		$	462,743		$	21,346,882

(1)

All income from external customers. The segments do not recognize intersegment income.

(2)

Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.


Year ended December 31, 2024	Credit sensitive strategies			Interest rate sensitive strategies			Correspondent production		Reportable segment total			Corporate			Consolidated total
	(in thousands)
Net investment income (1):
Net gains on investments and financings
Mortgage-backed securities	$	6,964		$	(67,704	)	$	—	$	(60,740	)	$	—		$	(60,740	)
Loans held for investment		3,726			4,394			—		8,120			—			8,120
Credit risk transfer arrangements		113,670			—			—		113,670			—			113,670
		124,360			(63,310	)		—		61,050			—			61,050
Net gains on loans held for sale		—			—			73,124		73,124			—			73,124
Net loan servicing fees		—			264,540			—		264,540			—			264,540
Net interest expense:
Interest income		89,635			450,070			83,129		622,834			12,429			635,263
Interest expense		89,883			538,995			81,072		709,950			4,709			714,659
		(248	)		(88,925	)		2,057		(87,116	)		7,720			(79,396	)
Other		(437	)		—			15,313		14,876			—			14,876
		123,675			112,305			90,494		326,474			7,720			334,194
Expenses:
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees		79			83,173			—		83,252			—			83,252
Management fees		—			—			—		—			28,623			28,623
Loan fulfillment fees		—			—			26,291		26,291			—			26,291
Professional services		—			—			3,508		3,508			9,271			12,779
Compensation		—			—			—		—			5,608			5,608
Loan collection and liquidation		376			6,458			—		6,834			—			6,834
Safekeeping		—			4,017			386		4,403			—			4,403
Loan origination		—			—			3,328		3,328			—			3,328
Other (2)		108			3,069			—		3,177			17,251			20,428
		563			96,717			33,513		130,793			60,753			191,546
Pretax income (loss)	$	123,112		$	15,588		$	56,981	$	195,681		$	(53,033	)	$	142,648
Total assets at end of year	$	1,474,751		$	10,322,044		$	2,170,638	$	13,967,433		$	441,273		$	14,408,706

(1)

All income from external customers. The segments do not recognize intersegment income.

(2)

Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.


Year ended December 31, 2023	Credit sensitive strategies			Interest rate sensitive strategies			Correspondent production			Reportable segment total			Corporate			Consolidated total
	(in thousands)
Net investment income (1):
Net gains on investments and financings
Mortgage-backed securities	$	35,625		$	(43,842	)	$	—		$	(8,217	)	$	—		$	(8,217	)
Loans held for investment		2,597			1,164			—			3,761			—			3,761
Credit risk transfer arrangements		182,555			—			—			182,555			—			182,555
		220,777			(42,678	)		—			178,099			—			178,099
Net gains on loans held for sale		—			—			39,857			39,857			—			39,857
Net loan servicing fees		—			288,608			—			288,608			—			288,608
Net interest expense:
Interest income		98,996			436,021			93,733			628,750			11,157			639,907
Interest expense		86,963			549,010			96,054			732,027			3,941			735,968
		12,033			(112,989	)		(2,321	)		(103,277	)		7,216			(96,061	)
Other		(186	)		—			18,703			18,517			—			18,517
		232,624			132,941			56,239			421,804			7,216			429,020
Expenses:
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees		166			81,180			—			81,346			—			81,346
Management fees		—			—			—			—			28,762			28,762
Loan fulfillment fees		—			—			27,827			27,827			—			27,827
Professional services		—			—			—			—			7,621			7,621
Compensation		—			—			—			—			7,106			7,106
Loan collection and liquidation		1,743			2,819			—			4,562			—			4,562
Safekeeping		—			3,240			526			3,766			—			3,766
Loan origination		—			—			4,601			4,601			1			4,602
Other (2)		411			1,109			—			1,520			17,513			19,033
		2,320			88,348			32,954			123,622			61,003			184,625
Pretax income (loss)	$	230,304		$	44,593		$	23,285		$	298,182		$	(53,787	)	$	244,395
Total assets at end of year	$	1,632,431		$	10,281,904		$	788,771		$	12,703,106		$	410,781		$	13,113,887

(1)

All income from external customers. The segments do not recognize intersegment income.

(2)

Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.

Historical Timeline

Fiscal Year	Filed
2025	Feb 18, 2026	Showing above
2020	Feb 26, 2021

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

PennyMac Mortgage Investment Trust Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures