PennyMac Mortgage Investment Trust
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
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Cash Flows
Our cash flows for the quarters ended March 31, 2025 and 2024 are summarized below:
| Quarter ended March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (in thousands) | ||
| Operating activities | $(594,267) | $(342,371) |
| Investing activities | 40,228 | 770,796 |
| Financing activities | 464,286 | (582,932) |
| Net cash flows | $(89,753) | $(154,507) |
Our cash flows resulted in a net decrease in cash of $89.8 million during the quarter ended March 31, 2025, as discussed below.
Operating activities
Cash used in operating activities totaled $594.3 million during the quarter ended March 31, 2025, as compared to cash used in our operating activities of $342.4 million during the quarter ended March 31, 2024. Cash flows from operating activities are influenced by cash flows from loans acquired for sale as shown below:
| Quarter ended March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (in thousands) | ||
| Operating cash flows from: | ||
| Loans acquired for sale | $(945,106) | $(187,846) |
| Other | 350,839 | (154,525) |
| $(594,267) | $(342,371) | |
Cash flows from loans acquired for sale primarily reflect changes in the level of production inventory as well as cash flows relating to associated hedging activities from the beginning to end of the quarters presented. Our inventory of loans held for sale increased during the quarter ended March 31, 2025, as compared to the same period in 2024, offset by other operating cash flows during 2025, which include a decrease in margin deposits of $286.5 million along with a reduction in accounts payable and accrued liabilities of approximately $33.7 million.
Investing activities
Net cash provided by our investing activities was $40.2 million for the quarter ended March 31, 2025, as compared to net cash provided by our investing activities of $770.8 million for the quarter ended March 31, 2024, which included significant sales of MBS.
Financing activities
Net cash provided by our financing activities was $464.3 million for the quarter ended March 31, 2025, as compared to net cash used in our financing activities of $582.9 million for the quarter ended March 31, 2024. This change primarily reflects
the increase in borrowings required to finance the increase in inventory of loans held for sale during the quarter ended March 31, 2025.
As discussed below in Liquidity and Capital Resources, our Manager continually evaluates and pursues additional sources of financing to provide us with future investing capacity. We do not raise equity or enter into borrowings for the purpose of financing the payment of dividends. We believe that our cash earnings are adequate to fund our operating expenses and dividend payment requirements. However, we manage our liquidity in the aggregate and are reinvesting our cash flows in new investments as well as using such cash to fund our dividend requirements.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.