PennyMac Mortgage Investment Trust
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
View on SEC.govAbout this filing
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.
Sep 30, 2025 · Filed Oct 29, 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 September 30, · Nine months ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 · 2024 · 2025 · 2024 | ||||||
| (dollar amounts in thousands, except per common share amounts) | ||||||
| Net gains on investments and financings | $64,087 | $146,695 | $160,080 | $166,705 | ||
| Loan production income (1) | 17,952 | 26,699 | 54,639 | 57,836 | ||
| Net loan servicing fees | 15,429 | (85,080) | 12,166 | 57,119 | ||
| Net interest income (expense) | 1,694 | (7,437) | (13,020) | (55,411) | ||
| Other | 70 | (13) | 33 | 18 | ||
| Net investment income | 99,232 | 80,864 | 213,898 | 226,267 | ||
| Expenses | 52,234 | 54,330 | 156,193 | 138,743 | ||
| Pretax income | 46,998 | 26,534 | 57,705 | 87,524 | ||
| Benefit from income taxes | (11,298) | (14,873) | (17,805) | (26,925) | ||
| Net income | 58,296 | 41,407 | 75,510 | 114,449 | ||
| Dividends on preferred shares | 10,455 | 10,455 | 31,364 | 31,364 | ||
| Net income attributable to common shareholders | $47,841 | $30,952 | $44,146 | $83,085 | ||
| Pretax income by segment and corporate: | ||||||
| Credit sensitive strategies | $18,754 | $26,449 | $41,698 | $103,013 | ||
| Interest rate sensitive strategies | 32,346 | 491 | 21,982 | (9,878) | ||
| Correspondent production | 9,244 | 13,249 | 33,095 | 34,469 | ||
| Corporate operations | (13,346) | (13,655) | (39,070) | (40,080) | ||
| $46,998 | $26,534 | $57,705 | $87,524 | |||
| Annualized return on average common shareholders' equity | 14.3% | 8.8% | 4.3% | 7.8% | ||
| Earnings per common share | ||||||
| Basic | $0.55 | $0.36 | $0.50 | $0.95 | ||
| Diluted | $0.55 | $0.36 | $0.50 | $0.95 | ||
| Dividends per common share | $0.40 | $0.40 | $1.20 | $1.20 | ||
| September 30, 2025 · December 31, 2024 | ||||||
| Total assets | $18,525,671 | $14,408,706 | ||||
| Book value per common share | $15.16 | $15.87 | ||||
| Closing price per common share | $12.26 | $12.59 | ||||
(1)
Includes net gains on loans held for sale and loan origination fees.
Our net income increased by $16.9 million during the quarter ended September 30, 2025, as compared to the quarter ended September 30, 2024, reflecting the effect of reduced mortgage servicing rights and hedging losses partially offset by decreased gains on our investments.
The increase in the quarterly pretax results is summarized below:
Our credit sensitive strategies segment recognized a $7.1 million decrease in net gains on our CRT arrangements as market credit spreads (which represent the interest rate premium demanded by investors for instruments over those that are considered “risk free”) did not tighten as significantly during the quarter ended September 30, 2025 as compared to credit spread changes during the quarter ended September 30, 2024.
Our interest rate sensitive strategies segment recognized a $100.5 million increase in net servicing fees resulting from decreased net MSR valuation losses compared to the quarter ended September 30, 2024 and a $3.0 million decrease in net interest expense, partially offset by an $84.5 million decrease in valuation gains on MBS caused by less significant decreases in interest rates during the quarter compared to the same period in 2024.
Our correspondent production segment recognized a $5.2 million decrease in our gain on sale during the quarter ended September 30, 2025, as compared to the same period in 2024, reflecting a reduction in our volume of sales to nonaffiliates.
Our benefit from income taxes recognized a $3.6 million decrease during the quarter ended September 30, 2025, as compared to the same period in 2024, reflecting decreased net MSR valuation losses.
Our net income decreased by $38.9 million during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, reflecting the effect of the increased fair value losses from our MSRs and reduced gains on our CRT-related investments, partially offset by increased gains on MBS and loans held for investment.
The decrease in the nine months pretax results is summarized below:
Our credit sensitive strategies segment recognized a $56.9 million decrease in net gains on our CRT arrangements as market credit spreads did not tighten as significantly during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.
Our interest rate sensitive strategies segment recognized a $45.0 million decrease in net servicing fees resulting from increased net MSR valuation losses due to more significant decreases in interest rates during nine months ended September 30, 2025, compared to the same period in 2024. These decreases were partially offset by a $55.2 million increase in valuation gains on MBS as well as a $21.4 million decrease in net interest expense.
Our correspondent production segment recognized a $1.7 million decrease in our gain on sale during the nine months ended September 30, 2025, as compared to the same period in 2024, reflecting the decrease in our sales of loans to nonaffiliates.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.