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
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 2. Results of Operations
Results of Operations
The following is a summary of our key performance measures:
| Quarter ended March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (dollar amounts in thousands, except per common share amounts) | ||
| Net gains on investments and financings | $62,313 | $39,753 |
| Loan production income (1) | 15,496 | 16,526 |
| Net loan servicing fees | (27,210) | 45,705 |
| Net interest expense | (6,046) | (27,968) |
| Other | (88) | 189 |
| Net investment income | 44,465 | 74,205 |
| Expenses | 50,764 | 41,824 |
| Pretax (loss) income | (6,299) | 32,381 |
| Benefit from income taxes | (15,979) | (15,227) |
| Net (loss) income | 9,680 | 47,608 |
| Dividends on preferred shares | 10,455 | 10,455 |
| Net (loss) income attributable to common shareholders | $(775) | $37,153 |
| Pretax (loss) income by segment and corporate: | ||
| Credit sensitive strategies | $1,110 | $60,826 |
| Interest rate sensitive strategies | (5,474) | (27,245) |
| Correspondent production | 10,127 | 11,667 |
| Corporate operations | (12,062) | (12,867) |
| $(6,299) | $32,381 | |
| Annualized return on average common shareholders' equity | (0.2)% | 10.4% |
| (Loss) earnings per common share | ||
| Basic | $(0.01) | $0.43 |
| Diluted | $(0.01) | $0.39 |
| Dividends per common share | $0.40 | $0.40 |
| March 31, 2025 | December 31, 2024 | |
| Total assets | $14,876,226 | $14,408,706 |
| Book value per common share | $15.43 | $15.87 |
| Closing price per common share | $14.65 | $12.59 |
(1)
Includes net gains on sales of loans and loan origination fees.
Our results of operations decreased by $37.9 million during the quarter ended March 31, 2025, as compared to the quarter ended March 31, 2024, reflecting the effect of the increased fair value losses from our MSRs and CRT investments, partially offset by increased gains on MBS:
The decrease in pretax results is summarized below:
Our credit sensitive strategies segment recognized a $53.5 million decrease in net gains on our CRT arrangements as market credit spreads widened (an increase in the interest rate premium demanded by investors for instruments over those that are considered “risk free”) during the quarter ended March 31, 2025 as compared to tightening in the quarter ended March 31, 2024.
Our interest rate sensitive strategies segment recognized a $72.9 million decrease in net servicing fees resulting from increased net MSR valuation losses compared to the quarter ended March 31, 2024 caused by a decrease in market interest rates during the quarter compared to an increase in interest rates in the same period in 2024. These decreases were partially offset by an $88.4 million increase in valuation gains on MBS as well as a $15.2 million decrease in net interest expense.
Our correspondent production segment recognized a $2.2 million decrease in our gain on sale during the quarter ended March 31, 2025, as compared to the same period in 2024, reflecting a reduction in our gain on sale margins.
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