PennyMac Mortgage Investment Trust
For the period ended Jun 30, 2025. Filed Jul 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.
Jun 30, 2025 · Filed Jul 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 June 30, · Six months ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 · 2024 · 2025 · 2024 | ||||||
| (dollar amounts in thousands, except per common share amounts) | ||||||
| Net gains (losses) on investments and financings | $33,680 | $(19,743) | $95,993 | $20,010 | ||
| Loan production income (1) | 21,191 | 14,611 | 36,687 | 31,137 | ||
| Net loan servicing fees | 23,947 | 96,494 | (3,263) | 142,199 | ||
| Net interest expense | (8,668) | (20,006) | (14,714) | (47,974) | ||
| Other | 51 | (158) | (37) | 31 | ||
| Net investment income | 70,201 | 71,198 | 114,666 | 145,403 | ||
| Expenses | 53,195 | 42,589 | 103,959 | 84,413 | ||
| Pretax income | 17,006 | 28,609 | 10,707 | 60,990 | ||
| Provision for (benefit from) income taxes | 9,472 | 3,175 | (6,507) | (12,052) | ||
| Net income | 7,534 | 25,434 | 17,214 | 73,042 | ||
| Dividends on preferred shares | 10,455 | 10,454 | 20,910 | 20,909 | ||
| Net (loss) income attributable to common shareholders | $(2,921) | $14,980 | $(3,696) | $52,133 | ||
| Pretax income by segment and corporate: | ||||||
| Credit sensitive strategies | $21,834 | $15,738 | $22,942 | $76,564 | ||
| Interest rate sensitive strategies | (4,888) | 16,875 | (10,363) | (10,369) | ||
| Correspondent production | 13,721 | 9,551 | 23,850 | 21,218 | ||
| Corporate operations | (13,661) | (13,555) | (25,722) | (26,423) | ||
| $17,006 | $28,609 | $10,707 | $60,990 | |||
| Annualized return on average common shareholders' equity | (0.9)% | 4.2% | (0.5)% | 7.3% | ||
| (Loss) earnings per common share | ||||||
| Basic | $(0.04) | $0.17 | $(0.05) | $0.60 | ||
| Diluted | $(0.04) | $0.17 | $(0.05) | $0.60 | ||
| Dividends per common share | $0.40 | $0.40 | $0.80 | $0.80 | ||
| June 30, 2025 · December 31, 2024 | ||||||
| Total assets | $16,801,119 | $14,408,706 | ||||
| Book value per common share | $15.00 | $15.87 | ||||
| Closing price per common share | $12.86 | $12.59 | ||||
(1)
Includes net gains on loans held for sale and loan origination fees.
Our results of operations decreased by $17.9 million during the quarter ended June 30, 2025, as compared to the quarter ended June 30, 2024, reflecting the effect of the increased fair value losses from our MSRs partially offset by increased gains on MBS and CRT investments.
The decrease in the quarterly pretax results is summarized below:
Our credit sensitive strategies segment recognized a $3.6 million increase in net gains on our CRT arrangements as market credit spreads tightened (a decrease in the interest rate premium demanded by investors for instruments over those that are considered “risk free”) during the quarter ended June 30, 2025 as compared to minimal credit spread changes during the quarter ended June 30, 2024.
Our interest rate sensitive strategies segment recognized a $72.5 million decrease in net servicing fees resulting from increased net MSR valuation losses compared to the quarter ended June 30, 2024 caused by significant volatility in market interest rates and spreads during the quarter compared to an increase in interest rates in the same period in 2024. These decreases were partially offset by a $51.2 million increase in valuation gains on MBS as well as a $3.1 million decrease in net interest expense.
Our correspondent production segment recognized a $5.6 million increase in our gain on sale during the quarter ended June 30, 2025, as compared to the same period in 2024, reflecting an increase in loan production and in our gain on sale margins.
We recorded an additional provision for income taxes of $14.0 million due to state apportionment changes resulting from legislation passed during the quarter ended June 30, 2025.
Our results of operations decreased by $55.8 million during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, reflecting the effect of the increased fair value losses from our MSRs partially offset by increased gains on MBS and CRT investments.
The decrease in the six months pretax results is summarized below:
Our credit sensitive strategies segment recognized a $49.8 million decrease in net gains on our CRT arrangements as market credit spreads widened reflecting the economic uncertainty experienced during the six months ended June 30, 2025, as compared the six months ended June 30, 2024.
Our interest rate sensitive strategies segment recognized a $145.5 million decrease in net servicing fees resulting from increased net MSR valuation losses caused by interest rate volatility during the six months ended June 30, 2025, compared to the same period in 2024. These decreases were partially offset by a $139.6 million increase in valuation gains on MBS as well as an $18.3 million decrease in net interest expense.
Our correspondent production segment recognized a $3.5 million increase in our gain on sale during the six months ended June 30, 2025, as compared to the same period in 2024, reflecting an increase in our loan production.
We recorded an additional provision for income taxes of $14.0 million due to state apportionment changes resulting from legislation passed during the period ended June 30, 2025.
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