PennyMac Mortgage Investment Trust (NYSE: PMT) reported net income of $31.0 million, or $0.36 per diluted share, for Q3 2024. The company announced a cash dividend of $0.40 per share. Key highlights include:
– Annualized return on average common equity of 9%
– Book value per share slightly decreased to $15.85
– Conventional correspondent loan production volumes for PMT’s account totaled $5.9 billion in UPB, up 167% from Q2
– Created $88 million in new mortgage servicing rights (MSRs)
– Redeemed $305 million of MSR term notes and issued $159 million of new CRT term notes
PMT’s CEO David Spector noted the company’s focus on balance sheet management and its competitive advantage through its relationship with PFSI. The company is well-positioned to participate in private label securitizations and create organic investments from its production.
PennyMac Mortgage Investment Trust (NYSE: PMT) ha riportato un reddito netto di 31,0 milioni di dollari, ovvero 0,36 dollari per azione diluita, per il terzo trimestre del 2024. La società ha annunciato un dividendo in contante di 0,40 dollari per azione. I punti salienti includono:
– Rendimento annualizzato sul capitale azionario medio del 9%
– Il valore contabile per azione è leggermente diminuito a 15,85 dollari
– I volumi di produzione di prestiti convenzionali per conto di PMT hanno raggiunto un totale di 5,9 miliardi di dollari in UPB, in aumento del 167% rispetto al secondo trimestre
– Creazione di 88 milioni di dollari in nuovi diritti di servicing ipotecario (MSRs)
– Riscatto di 305 milioni di dollari di note a termine MSR e emissione di 159 milioni di dollari di nuove note a termine CRT
Il CEO di PMT, David Spector, ha sottolineato il focus della società sulla gestione del bilancio e il suo vantaggio competitivo attraverso la relazione con PFSI. L’azienda è ben posizionata per partecipare a cartolarizzazioni private e creare investimenti organici dalla sua produzione.
PennyMac Mortgage Investment Trust (NYSE: PMT) reportó un ingreso neto de 31,0 millones de dólares, o 0,36 dólares por acción diluida, para el tercer trimestre de 2024. La compañía anunció un dividendo en efectivo de 0,40 dólares por acción. Los puntos destacados incluyen:
– Rendimiento anualizado sobre el capital común promedio del 9%
– El valor contable por acción disminuyó ligeramente a 15,85 dólares
– Los volúmenes de producción de préstamos convencionales para la cuenta de PMT totalizaron 5,9 mil millones de dólares en UPB, un aumento del 167% con respecto al segundo trimestre
– Se crearon 88 millones de dólares en nuevos derechos de servicio hipotecario (MSRs)
– Se redimieron 305 millones de dólares en notas a plazo de MSR y se emitieron 159 millones de dólares en nuevas notas a plazo de CRT
El CEO de PMT, David Spector, señaló el enfoque de la empresa en la gestión del balance y su ventaja competitiva a través de su relación con PFSI. La compañía está bien posicionada para participar en titulizaciones de marca privada y crear inversiones orgánicas a partir de su producción.
PennyMac Mortgage Investment Trust (NYSE: PMT)는 2024년 3분기에 순이익이 3,100만 달러, 즉 희석주당 0.36달러라고 보고했습니다. 이 회사는 주당 0.40달러의 현금 배당금을 발표했습니다. 주요 하이라이트는 다음과 같습니다:
– 평균 보통주 자본에 대한 연환산 수익률 9%
– 주당 장부 가치가 15.85달러로 약간 감소
– PMT의 계좌에 대한 일반 대출 생산량은 UPB로 59억 달러로, 2분기 대비 167% 증가
– 8,800만 달러의 새로운 모기지 서비스 권리 (MSR) 생성
– 3억 500만 달러의 MSR 만기 노트를 상환하고 1억 5,900만 달러의 새로운 CRT 만기 노트를 발행
PMT의 CEO인 David Spector는 회사가 재무 관리에 집중하고 있으며 PFSI와의 관계를 통해 경쟁 우위를 보유하고 있다고 언급했습니다. 이 회사는 사모 명칭 증권화에 참여하고 자신의 생산에서 유기적 투자를 창출할 수 있는 좋은 위치에 있습니다.
PennyMac Mortgage Investment Trust (NYSE: PMT) a déclaré un revenu net de 31,0 millions de dollars, soit 0,36 dollar par action diluée, pour le troisième trimestre 2024. La société a annoncé un dividende en espèces de 0,40 dollar par action. Les points saillants comprennent :
– Rendement annualisé sur les capitaux propres ordinaires moyens de 9%
– La valeur comptable par action a légèrement diminué à 15,85 dollars
– Les volumes de production de prêts conventionnels pour le compte de PMT ont totalisé 5,9 milliards de dollars en UPB, en hausse de 167% par rapport au deuxième trimestre
– Création de 88 millions de dollars en nouveaux droits de service hypothécaire (MSRs)
– Rachat de 305 millions de dollars de billets à terme MSR et émission de 159 millions de dollars de nouveaux billets à terme CRT
Le PDG de PMT, David Spector, a noté que la société se concentre sur la gestion de son bilan et qu’elle bénéficie d’un avantage concurrentiel grâce à sa relation avec PFSI. L’entreprise est bien positionnée pour participer à des titrisations de marque privée et créer des investissements organiques à partir de sa production.
PennyMac Mortgage Investment Trust (NYSE: PMT) meldete ein Nettoeinkommen von 31,0 Millionen Dollar, oder 0,36 Dollar pro verwässerter Aktie, für das dritte Quartal 2024. Das Unternehmen gab eine Bardividende von 0,40 Dollar pro Aktie bekannt. Zu den wichtigsten Höhepunkten gehören:
– Annualisierte Rendite auf das durchschnittliche Eigenkapital von 9%
– Buchwert pro Aktie ist leicht auf 15,85 Dollar gesunken
– Die Produktionsvolumina von herkömmlichen Korrespondenzdarlehen für das Konto von PMT betrugen insgesamt 5,9 Milliarden Dollar in UPB, was einem Anstieg von 167% im Vergleich zum zweiten Quartal entspricht
– 88 Millionen Dollar an neuen Hypothekendienstrechten (MSRs) geschaffen
– Rückzahlung von 305 Millionen Dollar an MSR-Terminnoten und Ausstellung von 159 Millionen Dollar an neuen CRT-Terminnoten
Der CEO von PMT, David Spector, bemerkte, dass sich das Unternehmen auf die Bilanzverwaltung konzentriert und durch seine Beziehung zu PFSI einen Wettbewerbsvorteil hat. Das Unternehmen ist gut positioniert, um an privaten Label-Verbriefungen teilzunehmen und organische Investitionen aus seiner Produktion zu schaffen.
Positive
Net income of $31.0 million, or $0.36 per diluted share
Annualized return on average common equity of 9%
Cash dividend of $0.40 per share declared
Conventional correspondent loan production volumes increased 167% to $5.9 billion
Created $88 million in new mortgage servicing rights, up from $41 million in Q2
Redeemed $305 million of MSR term notes with new notes at a lower spread
Issued $159 million of new CRT term notes to refinance maturing notes
Negative
Book value per share slightly decreased from $15.89 to $15.85
Net loan servicing fees showed a loss of $85.1 million
Fair value declines of $84.3 million on MSRs due to lower interest rates
Hedging declines of $67.2 million
Insights
PennyMac Mortgage Investment Trust (PMT) reported mixed results for Q3 2024. Net income attributable to common shareholders was $31.0 million, or $0.36 per diluted share, on net investment income of $80.9 million. The company declared a cash dividend of $0.40 per share.
Key highlights include:
Annualized return on average common equity of 9%Book value per share slightly decreased to $15.85Conventional correspondent loan production volumes for PMT’s account increased significantly to $5.9 billion UPB, up 167% from the previous quarterCreation of $88 million in new mortgage servicing rights (MSRs), up from $41 million in Q2Redemption of $305 million of MSR term notes and issuance of $159 million of new CRT term notes
The company’s performance was bolstered by fair value changes and associated tax benefits, despite challenging market conditions. PMT’s strategic relationship with its manager, PFSI, provides flexibility in different rate environments, positioning the company well for potential private label securitizations and organic investment opportunities.
PMT’s Q3 results reflect the company’s adaptability in a challenging mortgage market. The significant increase in conventional correspondent loan production volumes for PMT’s account (167% quarter-over-quarter) demonstrates a strategic shift to retain a higher percentage of loans. This move led to the creation of $88 million in new MSRs, more than doubling from the previous quarter.
The company’s focus on balance sheet management is evident in its refinancing activities. By redeeming $305 million of MSR term notes at SOFR plus 419 bps with new notes at SOFR plus 275 bps, PMT has reduced its borrowing costs. Similarly, the issuance of $159 million in new CRT term notes to refinance maturing debt shows proactive liability management.
However, the slight decrease in book value per share and the $85.1 million loss from net loan servicing fees (compared to $96.5 million in fees last quarter) highlight the ongoing challenges in the interest rate sensitive segments. The company’s hedging strategies and diversified investment approach will be important in navigating future market volatility.
10/22/2024 – 04:15 PM
WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–
PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income attributable to common shareholders of $31.0 million, or $0.36 per common share on a diluted basis for the third quarter of 2024, on net investment income of $80.9 million. PMT previously announced a cash dividend for the third quarter of 2024 of $0.40 per common share of beneficial interest, which was declared on September 19, 2024, and will be paid on October 25, 2024, to common shareholders of record as of October 11, 2024.
Third Quarter 2024 Highlights
Financial results:
Net income attributable to common shareholders of $31.0 million; annualized return on average common equity of 9%1
Solid levels of income excluding market-driven fair value changes bolstered by fair value changes including associated tax benefits
Book value per common share decreased slightly to $15.85 at September 30, 2024, from $15.89 at June 30, 2024
Other investment highlights:
Investment activity driven by correspondent production volumes
Conventional correspondent loan production volumes for PMT’s account totaled $5.9 billion in unpaid principal balance (UPB), up 167 percent from the prior quarter as PMT retained a higher percentage of total conventional loans acquired
Resulted in the creation of $88 million in new mortgage servicing rights (MSRs), up from $41 million in the prior quarter
Redeemed $305 million of MSR term notes priced at SOFR plus 419 basis points scheduled to mature in 2027 with proceeds from a recent MSR term note issuance priced at SOFR plus 275 basis points
Issued $159 million of new, 4-year CRT term notes in August which refinanced $152 million of notes due to mature in 2025
1Return on average common equity is calculated based on net income attributable to common shareholders as a percentage of monthly average common equity during the quarter
“PMT’s third quarter financial results reflect solid levels of income excluding market driven value changes bolstered by fair value changes including associated tax benefits,” said Chairman and CEO David Spector. “We increased the amount of conventional mortgage production retained this quarter, which drove strong results in the segment as well as the creation of nearly $90 million in new mortgage servicing rights investments. We also continue to focus on our balance sheet, replacing previously-issued MSR term notes with new term notes at a lower spread; to that end we also issued new, 4-year CRT term notes to refinance similar notes that were originally scheduled to mature in 2025.”
Mr. Spector continued, “PMT’s synergistic relationship with its manager and services provider, PFSI, has proven to be a competitive advantage, allowing for significant flexibility across different rate environments. Pennymac has become a top producer of mortgage loans with recent growth in originations of loan products that have strong demand from investors outside of the Agencies. Combined with our capital markets expertise and long-standing relationships with banks, asset managers and institutional investors, I believe PMT is well-positioned to participate meaningfully in private label securitizations and the creation of organic investments from its own production as the landscape evolves.”
The following table presents the contributions of PMT’s segments, consisting of Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production, and Corporate:
Credit sensitive
strategies
Interest rate
sensitive
strategies
Correspondent
production
Corporate
Total
Quarter ended Sep 30, 2024
(in thousands)
Net investment income:
Net gains (losses) on investments and financings
Mortgage-backed securities
$
559
$
122,874
$
—
$
—
$
123,433
Loans at fair value
Held by VIEs
5,730
(3,292
)
—
—
2,438
Distressed
(10
)
—
—
—
(10
)
CRT investments
20,834
—
—
—
20,834
27,113
119,582
—
—
146,695
Net gains on loans acquired for sale
—
—
20,059
—
20,059
Net loan servicing fees
—
(85,080
)
—
—
(85,080
)
Net interest expense:
Interest income
21,389
128,458
23,853
3,034
176,734
Interest expense
21,921
136,873
24,273
1,104
184,171
(532
)
(8,415
)
(420
)
1,930
(7,437
)
Other
(65
)
—
6,692
—
6,627
26,516
26,087
26,331
1,930
80,864
Expenses:
Loan fulfillment and servicing fees payable to PennyMac Financial Services, Inc.
20
22,220
11,492
—
33,732
Management fees payable to PennyMac Financial Services, Inc.
—
—
—
7,153
7,153
Other
47
3,376
1,590
8,432
13,445
$
67
$
25,596
$
13,082
$
15,585
$
54,330
Pretax income (loss)
$
26,449
$
491
$
13,249
$
(13,655
)
$
26,534
Credit Sensitive Strategies Segment
The Credit Sensitive Strategies segment primarily includes results from PMT’s organically-created GSE CRT investments, opportunistic investments in other GSE CRT, investments in non-agency subordinate bonds from private-label securitizations of PMT’s production and legacy investments. Pretax income for the segment was $26.4 million on net investment income of $26.5 million, compared to pretax income of $15.7 million on net investment income of $15.8 million in the prior quarter.
Net gains on investments in the segment were $27.1 million, compared to $17.4 million in the prior quarter. These net gains include $20.8 million of gains on PMT’s organically-created GSE CRT investments, $5.7 million of gains on investments from non-agency subordinate bonds from PMT’s production and $0.6 million in gains on other acquired subordinate CRT mortgage-backed securities (MBS).
Net gains on PMT’s organically-created CRT investments for the quarter were $20.8 million, compared to $16.6 million in the prior quarter. These net gains include $6.6 million in valuation-related gains, up from $1.7 million in the prior quarter. Net gains on PMT’s organically-created CRT investments also included $15.0 million in realized gains and carry, compared to $15.1 million in the prior quarter. Realized losses during the quarter were $0.8 million.
Net interest expense for the segment was $0.5 million, compared to 1.3 million in the prior quarter. Interest income totaled $21.4 million, down slightly from the prior quarter, and interest expense totaled $21.9 million, down from $24.3 million in the prior quarter.
Interest Rate Sensitive Strategies Segment
The Interest Rate Sensitive Strategies segment includes results from investments in MSRs, Agency MBS, non-Agency senior MBS and interest rate hedges. Pretax income for the segment was $0.5 million on net investment income of $26.1 million, compared to a pretax income of $16.9 million on net investment income of $39.1 million in the prior quarter. The segment includes investments that typically have offsetting fair value exposures to changes in interest rates. For example, in a period with decreasing interest rates, MSRs are expected to decrease in fair value, whereas Agency pass-through and non-Agency senior MBS are expected to increase in fair value.
The results in the Interest Rate Sensitive Strategies segment consist of net gains and losses on investments, net interest income and net loan servicing fees, as well as associated expenses.
Net gains on investments for the segment were $119.6 million, which primarily consisted of gains on MBS due to lower interest rates.
Losses from net loan servicing fees were $85.1 million, compared to $96.5 million of net loan servicing fees in the prior quarter. Net loan servicing fees included contractually specified servicing fees of $162.6 million and $4.0 million in other fees, reduced by $100.6 million in realization of MSR cash flows, which was up slightly from the prior quarter. Net loan servicing fees also included $84.3 million in fair value declines on MSRs due to lower interest rates, $67.2 million in hedging declines and $0.4 million of MSR recapture income. PMT’s hedging activities are intended to manage its net exposure across all interest rate sensitive strategies, which include MSRs, MBS and related tax impacts.
The following schedule details net loan servicing fees:
Quarter ended
September 30, 2024
June 30, 2024
September 30, 2023
(in thousands)
From non-affiliates:
Contractually specified
$
162,605
$
162,127
$
166,809
Other fees
4,012
2,815
3,752
Effect of MSRs:
Change in fair value
Realization of cashflows
(100,612
)
(96,595
)
(102,213
)
Market changes
(84,306
)
46,039
263,139
(184,918
)
(50,556
)
160,926
Hedging results
(67,220
)
(18,365
)
(50,689
)
(252,138
)
(68,921
)
110,237
Net servicing fees from non-affiliates
(85,521
)
96,021
280,798
From PFSI—MSR recapture income
441
473
500
Net loan servicing fees
$
(85,080
)
$
96,494
$
281,298
Net interest expense for the segment was $8.4 million versus $20.3 million in the prior quarter. Interest income totaled $128.5 million, up from $111.3 million in the prior quarter due to higher interest income on MBS and earnings on custodial balances due to higher average balances. Interest expense totaled $136.9 million, up from $131.6 million the prior quarter.
Segment expenses were $25.6 million, up from $22.2 million in the prior quarter.
Correspondent Production Segment
PMT acquires newly originated loans from correspondent sellers and typically sells or securitizes the loans, resulting in current-period income and additions to its investments in MSRs related to a portion of its production. PMT’s Correspondent Production segment generated pretax income of $13.2 million in the third quarter, up from $9.6 million in the prior quarter.
Through its correspondent production activities, PMT acquired a total of $25.8 billion in UPB of loans, up 15 percent from the prior quarter and 20 percent from the third quarter of 2023. Of total correspondent acquisitions, government-insured or guaranteed acquisitions totaled $11.8 billion, up 14 percent from the prior quarter, while conventional and jumbo acquisitions totaled $14.0 billion, up 15 percent from the prior quarter. $5.9 billion of conventional conforming volume was for PMT’s account, up 167 percent from the prior quarter due to PMT retaining a larger percentage of the total conventional correspondent production. The percentage of total conventional correspondent loan production retained by PMT is expected to be 15 to 25 percent in the fourth quarter in order to optimize PMT’s capital allocation. Interest rate lock commitments on conventional and jumbo loans for PMT’s account totaled $7.6 billion, up 183 percent from the prior quarter.
Segment revenues were $26.3 million and included net gains on loans acquired for sale of $20.1 million, other income of $6.7 million, which primarily consists of volume-based origination fees, and net interest expense of $0.4 million. Net gains on loans acquired for sale increased $7.9 million from the prior quarter, primarily due to higher volumes. Interest income was $23.9 million, up from $14.9 million in the prior quarter, and interest expense was $24.3 million, up from $15.0 million in the prior quarter, both due to higher volumes.
Segment expenses were $13.1 million, up from $5.0 million the prior quarter primarily due to increased fulfillment fees as a result of higher volumes for PMT’s account. The weighted average fulfillment fee rate in the third quarter was 19 basis points, down from 20 basis points in the prior quarter.
Corporate Segment
The Corporate segment includes interest income from cash and short-term investments, management fees, and corporate expenses.
Segment revenues were $1.9 million, up slightly from the prior quarter. Management fees were $7.2 million, and other segment expenses were $8.4 million.
Taxes
PMT recorded a tax benefit of $14.9 million, driven primarily by fair value declines on MSRs and interest rate hedges held in PMT’s taxable subsidiary.
Management’s slide presentation and accompanying materials will be available in the Investor Relations section of the Company’s website at pmt.pennymac.com after the market closes on Tuesday, October 22, 2024. Management will also host a conference call and live audio webcast at 6:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pmt.pennymac.com, and a replay will be available shortly after its conclusion.
Individuals who are unable to access the website but would like to receive a copy of the materials should contact the Company’s Investor Relations department at 818.224.7028.
About PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PMT is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). Additional information about PennyMac Mortgage Investment Trust is available at pmt.pennymac.com.
Forward-Looking Statements
Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections and assumptions with respect to, among other things, the Company’s financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: changes in interest rates; the Company’s ability to comply with various federal, state and local laws and regulations that govern its business; volatility in the Company’s industry, the debt or equity markets, the general economy or the real estate finance and real estate markets; events or circumstances which undermine confidence in the financial and housing markets or otherwise have a broad impact on financial and housing markets; changes in real estate values, housing prices and housing sales; changes in macroeconomic, consumer and real estate market conditions; the degree and nature of the Company’s competition; the availability of, and level of competition for, attractive risk-adjusted investment opportunities in mortgage loans and mortgage-related assets that satisfy the Company’s investment objectives; the inherent difficulty in winning bids to acquire mortgage loans, and the Company’s success in doing so; the concentration of credit risks to which the Company is exposed; the Company’s dependence on its manager and servicer, potential conflicts of interest with such entities and their affiliates, and the performance of such entities; changes in personnel and lack of availability of qualified personnel at its manager, servicer or their affiliates; our ability to mitigate cybersecurity risks, cybersecurity incidents and technology disruptions; the availability, terms and deployment of short-term and long-term capital; the adequacy of the Company’s cash reserves and working capital; the Company’s ability to maintain the desired relationship between its financing and the interest rates and maturities of its assets; the timing and amount of cash flows, if any, from the Company’s investments; our substantial amount of indebtedness; the performance, financial condition and liquidity of borrowers; our exposure to risks of loss and disruptions in operations resulting from severe weather events, man-made or other natural conditions, including climate change and pandemics; the ability of the Company’s servicer, which also provides the Company with fulfillment services, to approve and monitor correspondent sellers and underwrite loans to investor standards; incomplete or inaccurate information or documentation provided by customers or counterparties, or adverse changes in the financial condition of the Company’s customers and counterparties; the Company’s indemnification and repurchase obligations in connection with mortgage loans it purchases and later sells or securitizes; the quality and enforceability of the collateral documentation evidencing the Company’s ownership and rights in the assets in which it invests; increased rates of delinquency, defaults and forbearances and/or decreased recovery rates on the Company’s investments; the performance of mortgage loans underlying mortgage-backed securities in which the Company retains credit risk; the Company’s ability to foreclose on its investments in a timely manner or at all; increased prepayments of the mortgages and other loans underlying the Company’s mortgage-backed securities or relating to the Company’s mortgage servicing rights and other investments; the degree to which the Company’s hedging strategies may or may not protect it from interest rate volatility; the effect of the accuracy of or changes in the estimates the Company makes about uncertainties, contingencies and asset and liability valuations when measuring and reporting upon the Company’s financial condition and results of operations; the Company’s ability to maintain appropriate internal control over financial reporting; the Company’s ability to detect misconduct and fraud; developments in the secondary markets for the Company’s mortgage loan products; legislative and regulatory changes that impact the mortgage loan industry or housing market; regulatory or other changes that impact government agencies or government-sponsored entities, or such changes that increase the cost of doing business with such agencies or entities; the Consumer Financial Protection Bureau and its issued and future rules and the enforcement thereof; changes in government support of homeownership; changes in government or government-sponsored home affordability programs; changes in the Company’s investment objectives or investment or operational strategies, including any new lines of business or new products and services that may subject it to additional risks; limitations imposed on the Company’s business and its ability to satisfy complex rules for it to qualify as a REIT for U.S. federal income tax purposes and qualify for an exclusion from the Investment Company Act of 1940 and the ability of certain of the Company’s subsidiaries to qualify as REITs or as taxable REIT subsidiaries for U.S. federal income tax purposes; changes in governmental regulations, accounting treatment, tax rates and similar matters; the Company’s ability to make distributions to its shareholders in the future; the Company’s failure to deal appropriately with issues that may give rise to reputational risk; and the Company’s organizational structure and certain requirements in its charter documents. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, 2024
June 30, 2024
September 30, 2023
(in thousands except share amounts)
ASSETS
Cash
$
344,358
$
130,734
$
236,396
Short-term investments at fair value
102,787
336,296
150,059
Mortgage-backed securities at fair value
4,182,382
4,068,337
4,665,970
Loans acquired for sale at fair value
1,665,796
694,391
1,025,730
Loans at fair value
1,429,525
1,377,836
1,372,118
Derivative assets
81,844
90,753
29,750
Deposits securing credit risk transfer arrangements
1,135,447
1,163,268
1,237,294
Mortgage servicing rights at fair value
3,809,047
3,941,861
4,108,661
Servicing advances
71,124
98,989
93,614
Due from PennyMac Financial Services, Inc.
8,538
1
2,252
Other
224,806
178,484
301,492
Total assets
$
13,055,654
$
12,080,950
$
13,223,336
LIABILITIES
Assets sold under agreements to repurchase
$
5,748,461
$
4,700,225
$
6,020,716
Mortgage loan participation and sale agreements
28,790
13,582
23,991
Notes payable secured by credit risk transfer and mortgage servicing assets
2,830,108
2,933,845
2,825,591
Unsecured senior notes
814,915
813,838
599,754
Asset-backed financing of variable interest entities at fair value
1,334,797
1,288,180
1,279,059
Interest-only security payable at fair value
35,098
32,708
28,288
Derivative and credit risk transfer strip liabilities at fair value
16,151
18,892
140,494
Accounts payable and accrued liabilities
114,085
126,314
92,633
Due to PennyMac Financial Services, Inc.
32,603
29,413
27,613
Income taxes payable
155,544
170,901
202,967
Liability for losses under representations and warranties
8,315
13,183
33,152
Total liabilities
11,118,867
10,141,081
11,274,258
SHAREHOLDERS’ EQUITY
Preferred shares of beneficial interest
541,482
541,482
541,482
Common shares of beneficial interest—authorized, 500,000,000 common shares of $0.01 par value; issued and outstanding 86,860,960, 86,860,960 and 86,760,408 common shares, respectively
869
869
868
Additional paid-in capital
1,924,596
1,923,780
1,923,130
Accumulated deficit
(530,160
)
(526,262
)
(516,402
)
Total shareholders’ equity
1,936,787
1,939,869
1,949,078
Total liabilities and shareholders’ equity
$
13,055,654
$
12,080,950
$
13,223,336
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Quarterly Periods Ended
September 30, 2024
June 30, 2024
September 30, 2023
Investment Income
Net gains (losses) on investments and financings
$
146,695
$
(19,743
)
$
(109,544
)
Net gains on loans acquired for sale
20,059
12,160
13,558
Loan origination fees
6,640
2,451
3,226
Net loan servicing fees:
From nonaffiliates
Servicing fees
166,617
164,942
170,561
Change in fair value of mortgage servicing rights
(184,918
)
(50,556
)
160,926
Hedging results
(67,220
)
(18,365
)
(50,689
)
(85,521
)
96,021
280,798
From PennyMac Financial Services, Inc.
441
473
500
(85,080
)
96,494
281,298
Interest income
176,734
151,835
158,926
Interest expense
184,171
171,841
183,918
Net interest expense
(7,437
)
(20,006
)
(24,992
)
Other
(13
)
(158
)
(117
)
Net investment income
80,864
71,198
163,429
Expenses
Earned by PennyMac Financial Services, Inc.:
Loan servicing fees
22,240
20,264
20,257
Management fees
7,153
7,133
7,175
Loan fulfillment fees
11,492
4,427
5,531
Professional services
2,614
2,366
2,133
Compensation
1,326
1,369
1,961
Loan collection and liquidation
2,257
671
1,890
Safekeeping
1,174
961
467
Loan origination
1,408
533
710
Other
4,666
4,865
4,885
Total expenses
54,330
42,589
45,009
Income before (benefit from) provision for income taxes
26,534
28,609
118,420
(Benefit from) provision for income taxes
(14,873
)
3,175
56,998
Net income
41,407
25,434
61,422
Dividends on preferred shares
10,455
10,454
10,455
Net income attributable to common shareholders
$
30,952
$
14,980
$
50,967
Earnings per common share
Basic
$
0.36
$
0.17
$
0.59
Diluted
$
0.36
$
0.17
$
0.51
Weighted average shares outstanding
Basic
86,861
86,849
86,760
Diluted
86,861
86,849
111,088
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022373180/en/
Media
Kristyn Clark
mediarelations@pennymac.com
805.225.8224
Investors
Kevin Chamberlain
Isaac Garden
investorrelations@pennymac.com
818.224.7028
Source: PennyMac Mortgage Investment Trust
FAQ
What was PMT’s net income for Q3 2024?
PMT reported net income attributable to common shareholders of $31.0 million, or $0.36 per diluted share, for Q3 2024.
How much was PMT’s cash dividend for Q3 2024?
PMT declared a cash dividend of $0.40 per common share for Q3 2024, payable on October 25, 2024.
What was PMT’s conventional correspondent loan production volume in Q3 2024?
PMT’s conventional correspondent loan production volumes for its account totaled $5.9 billion in unpaid principal balance (UPB), up 167% from the previous quarter.
How much did PMT’s book value per share change in Q3 2024?
PMT’s book value per common share decreased slightly to $15.85 at September 30, 2024, from $15.89 at June 30, 2024.
What was PMT’s return on average common equity for Q3 2024?
PMT reported an annualized return on average common equity of 9% for Q3 2024.
