PMT PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income attributable to common shareholders of $36.1 million, or $0.41 per common share on a diluted basis for the fourth quarter of 2024, on net investment income of $107.9 million. PMT previously announced a cash dividend for the fourth quarter of 2024 of $0.40 per common share of beneficial interest, which was declared on December 13, 2024, and paid on January 24, 2025, to common shareholders of record as of December 27, 2024.

Fourth Quarter 2024 Highlights

Financial results:

• Net income attributable to common shareholders of $36.1 million; annualized return on average common equity of 10%1
  • Results driven by strong levels of income excluding market driven value changes
• Book value per common share increased to $15.87 at December 31, 2024, from $15.85 at September 30, 2024

Other investment highlights:

• Investment activity driven by correspondent production volumes
  • Correspondent loan production volumes for PMT’s account totaled $3.5 billion in unpaid principal balance (UPB), down 41 percent from the prior quarter as a result of the sale of a large percentage of conventional loans to PennyMac Financial Services, Inc. (NYSE: PFSI), and up 41 percent from the fourth quarter of 2023 as a result of higher overall volumes
    • Resulted in the creation of $60 million in new mortgage servicing rights (MSRs)
  • Closed two Agency-eligible investor loan securitizations with combined UPB of $822 million
    • Generated $52 million of net new investments in non-Agency subordinate bonds

1 Return 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

Other highlights:

• Renewed management and services agreement with PFSI for five years

Notable activity after quarter end

• Closed an additional Agency eligible investor loan securitization with UPB of $341 million
  • Generated $21 million of net new investments in non-Agency subordinate bonds

Full-Year 2024 Highlights

Financial results:

• Net income of $161.0 million, versus $199.7 million in 2023
• Net income attributable to common shareholders of $119.2 million, versus $157.8 million in 2023; diluted earnings per share of $1.37 versus $1.63 in 2023
• Dividends of $1.60 per common share
• Book value per share decreased slightly from $16.13 to $15.87
• Net investment income of $334.2 million, down from $429.0 million in 2023
• Return on average common equity of 8%2
• Issued $1.3 billion in term debt to address or refinance upcoming maturities

2 Return on average common equity is calculated based on net income attributable to common shareholders as a percentage of monthly average common equity during the year

“PMT produced strong results in the fourth quarter with a 10 percent annualized return on equity primarily driven by strong levels of income excluding market driven value changes and excellent performance across all three investment strategies,” said Chairman and CEO David Spector. “Importantly, the fourth quarter marked a return to organic creation of credit investments as we leveraged the strength of our correspondent production and securitization expertise to complete two securitizations of Agency-eligible investor loans and retained $52 million of net new credit subordinate bond investments. With a growing pipeline of loans available for private label securitization and strong investor demand, we expect similar levels of activity well into 2025, with the potential for increased activity and securitizations of other loan products as the origination market grows.”

Mr. Spector concluded, “While I am pleased with PMT’s performance in 2024, I am even more excited by the opportunity ahead. Given our expectations for PMT to be a consistent issuer and investor in private label securitizations alongside its seasoned portfolio of MSRs and CRT with strong underlying fundamentals, I am confident the company will continue to deliver attractive risk-adjusted returns in 2025 and beyond.”

The following table presents the contributions of PMT’s operating segments, consisting of Credit Sensitive Strategies, Interest Rate Sensitive Strategies, and Correspondent Production, as well as non-segment activities in our corporate operations:

Credit sensitive strategies

Interest rate

sensitive strategies

Correspondent production

Reportable

segment total

Corporate Total Quarter ended December 31, 2024 (in thousands) Net investment income: Net loan servicing fees

$

—

 

$

207,421

 

$

—

$

207,421

 

$

—

 

$

207,421

 

Net gains on loans acquired for sale

 

—

 

 

—

 

 

26,387

 

26,387

 

 

—

 

 

26,387

 

Net gains (losses) on investments and financings Mortgage-backed securities

 

(292

)

 

(130,856

)

 

—

 

(131,148

)

 

—

 

 

(131,148

)

Loans at fair value

 

(4,016

)

 

4,957

 

 

—

 

941

 

 

—

 

 

941

 

CRT investments

 

24,552

 

 

—

 

 

—

 

24,552

 

 

—

 

 

24,552

 

 

20,244

 

 

(125,899

)

 

—

 

(105,655

)

 

—

 

 

(105,655

)

Net interest income: Interest income

 

21,114

 

 

106,117

 

 

32,478

 

159,709

 

 

3,426

 

 

163,135

 

Interest expense

 

20,679

 

 

135,733

 

 

29,531

 

185,943

 

 

1,177

 

 

187,120

 

 

435

 

 

(29,616

)

 

2,947

 

(26,234

)

 

2,249

 

 

(23,985

)

Other

 

(282

)

 

—

 

 

4,041

 

3,759

 

 

—

 

 

3,759

 

 

20,397

 

 

51,906

 

 

33,375

 

105,678

 

 

2,249

 

 

107,927

 

Expenses: Earned by PennyMac Financial Services, Inc.: Loan servicing fees

 

19

 

 

20,467

 

 

—

 

20,486

 

 

—

 

 

20,486

 

Management fees

 

—

 

 

—

 

 

—

 

—

 

 

7,149

 

 

7,149

 

Loan fulfillment fees

 

—

 

 

—

 

 

6,356

 

6,356

 

 

—

 

 

6,356

 

Professional Services

 

—

 

 

—

 

 

3,508

 

3,508

 

 

2,533

 

 

6,041

 

Loan Collection and Liquidation

 

281

 

 

2,256

 

 

—

 

2,537

 

 

—

 

 

2,537

 

Compensation

 

—

 

 

—

 

 

—

 

—

 

 

997

 

 

997

 

Safekeeping

 

—

 

 

1,252

 

 

84

 

1,336

 

 

—

 

 

1,336

 

Mortgage Loan Origination Fees

 

—

 

 

—

 

 

914

 

914

 

 

—

 

 

914

 

Other Expenses

 

—

 

 

2,464

 

 

—

 

2,464

 

 

4,523

 

 

6,987

 

 

300

 

 

26,439

 

 

10,862

 

37,601

 

 

15,202

 

 

52,803

 

Pretax income (loss)

$

20,097

 

$

25,467

 

$

22,513

$

68,077

 

$

(12,953

)

$

55,124

 

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 $20.1 million on net investment income of $20.4 million, compared to pretax income of $26.4 million on net investment income of $26.5 million in the prior quarter.

Net gains on investments in the segment were $20.2 million, compared to $27.1 million in the prior quarter. These net gains include $24.6 million of gains on PMT’s organically-created GSE CRT investments, $0.3 million in losses on other acquired subordinate CRT mortgage-backed securities (MBS), and $4.0 million of losses on investments from non-agency subordinate bonds from PMT’s production.

Net gains on PMT’s organically-created CRT investments for the quarter were $24.6 million, compared to $20.8 million in the prior quarter. These net gains include $10.2 million in valuation-related gains, which reflected the impact of credit spread tightening in the fourth quarter. The prior quarter included $6.6 million of such gains. Net gains on PMT’s organically-created CRT investments also included $14.8 million in realized gains and carry, compared to $15.0 million in the prior quarter. Realized losses during the quarter were $0.5 million.

Net interest income for the segment totaled $0.4 million, compared to $0.5 million of net interest expense in the prior quarter. Interest income totaled $21.1 million, down slightly from $21.4 million in the prior quarter. Interest expense totaled $20.7 million, down from $21.9 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 $25.5 million on net investment income of $51.9 million, compared to pretax income of $0.5 million on net investment income of $26.1 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 increasing interest rates, MSRs are expected to increase in fair value, whereas Agency pass-through and non-Agency senior MBS are expected to decrease 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.

Income from net loan servicing fees was $207.4 million, compared to losses of $85.1 million in the prior quarter. Net loan servicing fees included contractually specified servicing fees of $159.6 million and $4.9 million in other fees, reduced by $90.6 million in realization of MSR cash flows, which was down from $100.6 million in the prior quarter due to higher interest rates during the quarter. Net loan servicing fees also included $183.9 million in fair value gains on MSRs due to higher interest rates, $51.2 million in hedging losses, and $0.9 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.

Net losses on investments for the segment were $125.9 million, which primarily consisted of losses on MBS due to higher interest rates.

The following schedule details net loan servicing fees:

Quarter ended December 31, 2024 September 30, 2024 December 31, 2023 (in thousands) From non-affiliates: Contractually specified

$

159,553

 

$

162,605

 

$

162,916

 

Other fees

 

4,884

 

 

4,012

 

 

2,487

 

Effect of MSRs: Change in fair value Realization of cashflows

 

(90,612

)

 

(100,612

)

 

(87,729

)

Market changes

 

183,879

 

 

(84,306

)

 

(144,603

)

 

93,267

 

 

(184,918

)

 

(232,332

)

Hedging results

 

(51,209

)

 

(67,220

)

 

(11,191

)

 

42,058

 

 

(252,138

)

 

(243,523

)

Net servicing fees from non-affiliates

 

206,495

 

 

(85,521

)

 

(78,120

)

From PFSI—MSR recapture income

 

926

 

 

441

 

 

290

 

Net loan servicing fees

$

207,421

 

$

(85,080

)

$

(77,830

)

 

Net interest expense for the segment was $29.6 million versus $8.4 million in the prior quarter. Interest income totaled $106.1 million, down from $128.5 million in the prior quarter primarily due to lower interest income on MBS and earnings on custodial balances. Interest expense totaled $135.7 million, down slightly from $136.9 million in the prior quarter.

Segment expenses were $26.4 million, up slightly from $25.6 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 $22.5 million in the fourth quarter, up from $13.2 million in the prior quarter.

Through its correspondent production activities in the fourth quarter, PMT acquired a total of $28.1 billion in UPB of loans, up 9 percent from the prior quarter and 19 percent from the fourth quarter of 2023. Of total correspondent acquisitions, government-insured or guaranteed acquisitions totaled $11.0 billion, down 7 percent from the prior quarter, while conventional conforming and jumbo acquisitions totaled $17.1 billion, up 22 percent from the prior quarter. $3.5 billion of conventional conforming and jumbo volume was for PMT’s account, down 41 percent from the prior quarter due to PMT retaining a smaller percentage of conventional conforming correspondent loan production. PMT is expected to retain all jumbo production and 15 to 25 percent of total conventional conforming correspondent production in the first quarter of 2025, compared to 19 percent in the fourth quarter of 2024, as PMT continues to pursue investment opportunities in the private label securitization market. Interest rate lock commitments on conventional conforming and jumbo loans for PMT’s account totaled $3.2 billion, down 58 percent from the prior quarter.

Segment revenues were $33.4 million and included net gains on loans acquired for sale of $26.4 million, other income of $4.0 million, which primarily consists of volume-based origination fees, and net interest income of $2.9 million. Net gains on loans acquired for sale increased $6.3 million from the prior quarter, primarily due to increased demand for private label securitization and whole loan execution for investor loans during the quarter. Interest income was $32.5 million, up from $23.9 million in the prior quarter, and interest expense was $29.5 million, up from $24.3 million in the prior quarter, both due to higher inventory of loans held for sale at fair value.

Segment expenses were $10.9 million, down from $13.1 million in the prior quarter. The weighted average fulfillment fee rate in the fourth quarter was 18 basis points, down from 19 basis points in the prior quarter.

Under a renewed mortgage banking services agreement with PFSI, effective July 1, 2025, correspondent production volumes will initially be acquired by PFSI. PMT will retain the right to purchase up to 100 percent of non-government correspondent loan production.

Corporate

Corporate includes interest income from cash and short-term investments, management fees, and corporate expenses.

Corporate revenues were $2.3 million, up from $1.9 million in the prior quarter. Management fees were $7.1 million, and other expenses were $4.5 million.

Taxes

PMT recorded a provision for tax expense of $8.6 million, driven by income from correspondent production and gains on MSRs held in PMT’s taxable REIT 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 Thursday, January 30, 2025. 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 development of artificial intelligence; 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; risks associated with the discontinuation of LIBOR; 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)

  December 31, 2024 September 30, 2024 December 31, 2023 (in thousands except share amounts) ASSETS Cash

$

337,694

 

$

344,358

 

$

281,085

 

Short-term investments at fair value

 

103,198

 

 

102,787

 

 

128,338

 

Mortgage-backed securities at fair value

 

4,063,706

 

 

4,182,382

 

 

4,836,292

 

Loans acquired for sale at fair value

 

2,116,318

 

 

1,665,796

 

 

669,018

 

Loans at fair value

 

2,193,575

 

 

1,429,525

 

 

1,433,820

 

Derivative assets

 

56,840

 

 

81,844

 

 

177,984

 

Deposits securing credit risk transfer arrangements

 

1,110,708

 

 

1,135,447

 

 

1,209,498

 

Mortgage servicing rights at fair value

 

3,867,394

 

 

3,809,047

 

 

3,919,107

 

Servicing advances

 

105,037

 

 

71,124

 

 

206,151

 

Due from PennyMac Financial Services, Inc.

 

16,015

 

 

8,538

 

 

56

 

Other

 

438,221

 

 

224,806

 

 

252,538

 

Total assets

$

14,408,706

 

$

13,055,654

 

$

13,113,887

 

LIABILITIES Assets sold under agreements to repurchase

$

6,500,938

 

$

5,748,461

 

$

5,624,558

 

Mortgage loan participation and sale agreements

 

11,593

 

 

28,790

 

 

—

 

Notes payable secured by credit risk transfer andmortgage servicing assets

 

2,929,790

 

 

2,830,108

 

 

2,910,605

 

Unsecured senior notes

 

605,860

 

 

814,915

 

 

600,458

 

Asset-backed financing of variable interest entitiesat fair value

 

2,040,375

 

 

1,334,797

 

 

1,336,731

 

Interest-only security payable at fair value

 

34,222

 

 

35,098

 

 

32,667

 

Derivative and credit risk transfer strip liabilitiesat fair value

 

7,351

 

 

16,151

 

 

51,381

 

Accounts payable and accrued liabilities

 

139,124

 

 

114,085

 

 

354,989

 

Due to PennyMac Financial Services, Inc.

 

30,206

 

 

32,603

 

 

29,262

 

Income taxes payable

 

163,861

 

 

155,544

 

 

190,003

 

Liability for losses under representations and warranties

 

6,886

 

 

8,315

 

 

26,143

 

Total liabilities

 

12,470,206

 

 

11,118,867

 

 

11,156,797

 

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; issuedand outstanding 86,860,960, 86,860,960 and 86,760,408common shares, respectively

 

869

 

 

869

 

 

866

 

Additional paid-in capital

 

1,925,067

 

 

1,924,596

 

 

1,923,437

 

Accumulated deficit

 

(528,918

)

 

(530,160

)

 

(508,695

)

Total shareholders' equity

 

1,938,500

 

 

1,936,787

 

 

1,957,090

 

Total liabilities and shareholders' equity

$

14,408,706

 

$

13,055,654

 

$

13,113,887

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

  For the Quarterly Periods Ended December 31, 2024 September 30, 2024 December 31, 2023   Investment Income Net loan servicing fees: From nonaffiliates Servicing fees

$

164,437

 

$

166,617

 

$

165,403

 

Change in fair value of mortgage servicing rights

 

93,267

 

 

(184,918

)

 

(232,332

)

Hedging results

 

(51,209

)

 

(67,220

)

 

(11,191

)

 

206,495

 

 

(85,521

)

 

(78,120

)

From PennyMac Financial Services, Inc.

 

926

 

 

441

 

 

290

 

 

207,421

 

 

(85,080

)

 

(77,830

)

Net gains on loans acquired for sale

 

26,387

 

 

20,059

 

 

15,380

 

Loan origination fees

 

3,986

 

 

6,640

 

 

3,004

 

Net (losses) gains on investments and financings

 

(105,655

)

 

146,695

 

 

164,338

 

Interest income

 

163,135

 

 

176,734

 

 

165,278

 

Interest expense

 

187,120

 

 

184,171

 

 

185,523

 

Net interest expense

 

(23,985

)

 

(7,437

)

 

(20,245

)

Other

 

(227

)

 

(13

)

 

127

 

Net investment income

 

107,927

 

 

80,864

 

 

84,774

 

Expenses Earned by PennyMac Financial Services, Inc.: Loan servicing fees

 

20,486

 

 

22,240

 

 

20,324

 

Management fees

 

7,149

 

 

7,153

 

 

7,252

 

Loan fulfillment fees

 

6,356

 

 

11,492

 

 

4,931

 

Professional services

 

6,041

 

 

2,614

 

 

2,084

 

Loan collection and liquidation

 

2,537

 

 

2,257

 

 

1,184

 

Safekeeping

 

1,336

 

 

1,174

 

 

1,059

 

Compensation

 

997

 

 

1,326

 

 

2,327

 

Loan origination

 

914

 

 

1,408

 

 

817

 

Other

 

6,987

 

 

4,666

 

 

4,476

 

Total expenses

 

52,803

 

 

54,330

 

 

44,454

 

Income before provision for (benefit from) income taxes

 

55,124

 

 

26,534

 

 

40,320

 

Provision for (benefit from) income taxes

 

8,589

 

 

(14,873

)

 

(12,590

)

Net income

 

46,535

 

 

41,407

 

 

52,910

 

Dividends on preferred shares

 

10,455

 

 

10,455

 

 

10,455

 

Net income attributable to common shareholders

$

36,080

 

$

30,952

 

$

42,455

 

Earnings per common share Basic

$

0.41

 

$

0.36

 

$

0.49

 

Diluted

$

0.41

 

$

0.36

 

$

0.44

 

Weighted average shares outstanding Basic

 

86,861

 

 

86,861

 

 

86,659

 

Diluted

 

86,861

 

 

86,861

 

 

110,987

 

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

  Year ended December 31,

 

2024

 

 

2023

 

 

2022

 

(in thousands, except earnings per common share) Net investment income Net loan servicing fees: From nonaffiliates Contractually specified

$

644,642

 

$

659,438

 

$

625,210

 

Other

 

14,722

 

 

17,008

 

 

26,041

 

 

659,364

 

 

676,446

 

 

651,251

 

Change in fair value of mortgage servicing rights

 

(170,409

)

 

(296,847

)

 

449,435

 

Mortgage servicing rights hedging results

 

(226,608

)

 

(92,775

)

 

(204,879

)

 

262,347

 

 

286,824

 

 

895,807

 

From PennyMac Financial Services, Inc.

 

2,193

 

 

1,784

 

 

13,744

 

 

264,540

 

 

288,608

 

 

909,551

 

Net gains on loans acquired for sale: From nonaffiliates

 

65,055

 

 

32,695

 

 

20,724

 

From PennyMac Financial Services, Inc.

 

8,069

 

 

7,162

 

 

4,968

 

 

73,124

 

 

39,857

 

 

25,692

 

Loan origination fees

 

15,085

 

 

18,231

 

 

52,085

 

Net gains (losses) on investments and financings

 

61,050

 

 

178,099

 

 

(658,787

)

Net interest expense: Interest income

 

635,263

 

 

639,907

 

 

383,794

 

Interest expense

 

714,659

 

 

735,968

 

 

410,420

 

Net interest expense

 

(79,396

)

 

(96,061

)

 

(26,626

)

Results of real estate acquired in settlement of loans

 

(437

)

 

(186

)

 

496

 

Other

 

228

 

 

472

 

 

1,360

 

Net investment income

 

334,194

 

 

429,020

 

 

303,771

 

Expenses Earned by PennyMac Financial Services, Inc.: Loan servicing fees

 

83,252

 

 

81,347

 

 

81,915

 

Management fees

 

28,623

 

 

28,762

 

 

31,065

 

Loan fulfillment fees

 

26,291

 

 

27,826

 

 

67,991

 

Professional services

 

12,779

 

 

7,621

 

 

9,569

 

Loan collection and liquidation

 

6,834

 

 

4,562

 

 

5,396

 

Compensation

 

5,608

 

 

7,106

 

 

5,941

 

Safekeeping

 

4,403

 

 

3,766

 

 

8,201

 

Loan origination

 

3,328

 

 

4,602

 

 

12,036

 

Other

 

20,428

 

 

19,033

 

 

18,570

 

Total expenses

 

191,546

 

 

184,625

 

 

240,684

 

Income before (benefit from) provision for incometaxes

 

142,648

 

 

244,395

 

 

63,087

 

(Benefit from) provision for income taxes

 

(18,336

)

 

44,741

 

 

136,374

 

Net income (loss)

 

160,984

 

 

199,654

 

 

(73,287

)

Dividends on preferred shares

 

41,819

 

 

41,819

 

 

41,819

 

Net income (loss) attributable to commonshareholders

$

119,165

 

$

157,835

 

$

(115,106

)

Earnings (losses) per common share Basic

$

1.37

 

$

1.80

 

$

(1.26

)

Diluted

$

1.37

 

$

1.63

 

$

(1.26

)

Weighted average common shares outstanding Basic

 

86,815

 

 

87,372

 

 

91,434

 

Diluted

 

86,815

 

 

111,700

 

 

91,434

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130176336/en/

Media Kristyn Clark mediarelations@pennymac.com 805.225.8224 Investors Kevin Chamberlain Isaac Garden investorrelations@pennymac.com 818.224.7028