PennyMac Mortgage Investment Trust

Our expenses are summarized below:

Expenses decreased $2.1 million, or 4%, and increased $17.5 million, or 13%, during the quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, as discussed below.

Loan Servicing Fees

Loan servicing fees payable to PLS are summarized below:

Loan servicing fees decreased by $1.2 million and increased by $1.6 million during the quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The decrease is due to a decline in the MSR portfolio during the quarter ended September 30, 2025, and the increase is due to an increase in supplemental fees relating to loan modifications and servicing of delinquent loans in our MSR portfolio.

Management Fees

Management fees payable to PCM are summarized below:

Management fees decreased by $241,000 and $681,000 during the quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. This decrease reflects lower average shareholders’ equity during the quarter and nine months ended September 30, 2025, as compared to the same periods in 2024.

Loan Fulfillment Fees

Loan fulfillment fees represent fees we pay to PLS for the services it performs on our behalf in connection with our acquisition, packaging and sale of loans. Fulfillment fees decreased $5.3 million and $2.7 million during the quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The decrease wasdue to the decrease in the volume of loans purchased for sale to nonaffiliates. Our loan fulfillment feestructure is described in Note 4 –Transactions with Related Partiesto the consolidated financial statements included in this Report.

Professional services

Professional services expense increased by $6.0 million and $17.2 million duringthe quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, due to increased legal and consulting fees as a result of our securitization activities duringthe quarter and nine months ended September 30, 2025.

Compensation

Compensation expense increased $1.5 million and $4.0 million duringthe quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, primarily due to an increased allocation of compensation based on the updated terms of the management agreement as described in Note 4 –Transactions with Related Partiesto the consolidated financial statements included in this Report. This increase was partially offset by an $885,000 and $2.9 million decrease in common overhead allocation from PFSI duringthe quarter and nine months ended September 30, 2025, respectively, which is included in Other expense.

Loan collection and liquidation

Loan collection and liquidation expenses decreased by $754,000 and increased by $1.6 million during the quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The increase during the nine months ended September 30, 2025, is due to increased servicing costs related to delinquent loans serviced for the Agencies' foreclosure avoidance programs compared to the same period in 2024.

Other Expenses

Other expenses are summarized below:

Common overhead allocation from PFSI decreased by $885,000 and $2.9 million duringthe quarter and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, due to changes to the allocation method included in the management agreement, described in Note 4 –Transactions with Related Parties to the consolidated financial statements included in this Report.

Income Taxes

We have elected to treat PennyMac Corp. (“PMC”), as a TRS. Income from a TRS is only included as a component of REIT taxable income to the extent that the TRS makes dividend distributions of income to us. A TRS is subject to corporate federal and state income tax. Accordingly, a provision for income taxes for PMC is included in the accompanying consolidated statements of income.

The Company’s effective tax rate was (24.0)% and (30.9)% with consolidated pretax income of $47.0 million and $57.7 million for the quarter and nine months ended September 30, 2025. The Company’s TRS recognized a tax benefit of $11.2 million on a pretax loss of $43.8 million and a tax benefit of $18.7 million on a pretax loss of $131.0 million for the quarter and nine months ended September 30, 2025. For the same periods in 2024, the TRS recognized a tax benefit of $15.5 million on a pretax loss of $64.7 million and a tax benefit of $27.5 million on a pretax loss of $115.6 million. The primary difference between the Company’s effective tax rate and the statutory tax rate is generally attributable to nontaxable REIT income resulting from the dividends paid deduction. The

September 30, 2025 nine month results were impacted by the enactment of California Senate Bill 132, signed into law on June 27, 2025 and effective January 1, 2025. The law requires financial institutions to apportion their California income using a single sales factor instead of a factor equally weighted with property, payroll and sales. The change in apportionment method resulted in the TRS providing for taxes at a higher rate and a repricing of the TRS’s net deferred tax liability.

The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. On the basis of this evaluation, as of September 30, 2025, the valuation allowance remains zero as a result of cumulative GAAP income at the TRS for the three-year period ended September 30, 2025. The amount of deferred tax assets considered realizable could be adjusted in future periods based on future income.

In general, cash dividends declared by the Company will be considered ordinary income to the shareholders for income tax purposes. Some portion of the dividends may be characterized as capital gain distributions or a return of capital. For tax years beginning after December 31, 2017, the 2017 Tax Cuts and Jobs Act (subject to certain limitations) provides a 20% deduction from taxable income for ordinary REIT dividends. One Big Beautiful Bill Act, signed into law on July 4, 2025, permanently extends the 20% deduction. The remainder of the Act’s provisions are not expected to have a material impact on the Company.