PennyMac Mortgage Investment Trust
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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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, 2026 · Filed Aug 4, 2026
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, | ||||||
|---|---|---|---|---|---|---|
| 2026 · 2025 · 2026 · 2025 | ||||||
| (dollar amounts in thousands, except per common share amounts) | ||||||
| Net loan servicing fees | $40,041 | $23,947 | $123,627 | $(3,263) | ||
| Loan production income (1) | 17,498 | 21,191 | 42,783 | 36,687 | ||
| Net gains (losses) on investments and financings | 22,301 | 33,680 | (762) | 95,993 | ||
| Net interest expense | (7,095) | (8,668) | (10,754) | (14,714) | ||
| Other | (16) | 51 | (31) | (37) | ||
| Net investment income | 72,729 | 70,201 | 154,863 | 114,666 | ||
| Expenses | 55,909 | 53,195 | 111,148 | 103,959 | ||
| Pretax income | 16,820 | 17,006 | 43,715 | 10,707 | ||
| (Benefit from) provision for income taxes | (14,099) | 9,472 | (11,820) | (6,507) | ||
| Net income | 30,919 | 7,534 | 55,535 | 17,214 | ||
| Dividends on preferred shares | 10,455 | 10,455 | 20,910 | 20,910 | ||
| Net income (loss) attributable to common shareholders | $20,464 | $(2,921) | $34,625 | $(3,696) | ||
| Pretax income by segment and corporate: | ||||||
| Credit sensitive strategies | $11,248 | $21,834 | $27,709 | $22,942 | ||
| Interest rate sensitive strategies | 8,991 | (4,888) | 16,981 | (10,363) | ||
| Aggregation and securitization | 11,129 | 13,721 | 27,546 | 23,850 | ||
| Corporate operations | (14,548) | (13,661) | (28,521) | (25,722) | ||
| $16,820 | $17,006 | $43,715 | $10,707 | |||
| Annualized return on average common shareholders' equity | 6.2% | (0.9)% | 6.7% | (0.5)% | ||
| Earnings (losses) per common share | ||||||
| Basic | $0.23 | $(0.04) | $0.40 | $(0.05) | ||
| Diluted | $0.23 | $(0.04) | $0.40 | $(0.05) | ||
| Dividends per common share | $0.40 | $0.40 | $0.80 | $0.80 | ||
| June 30, 2026 · December 31, 2025 | ||||||
| (dollar amounts in thousands, except per common share amounts) | ||||||
| Total assets | $25,093,590 | $21,346,882 | ||||
| Book value per common share | $14.83 | $15.25 | ||||
| Closing price per common share | $11.28 | $12.55 | ||||
(1)
Includes net gains on sales of loans and loan origination fees.
Our results of operations increased by $23.4 million during the quarter ended June 30, 2026, as compared to the quarter ended June 30, 2025, reflecting the effect of decreased income tax expense along with increased gains on our MSRs partially offset by increased losses on MBS and a decrease in gains on our CRT-related investments.
The increase in the quarterly pretax results is summarized below:
Our credit sensitive strategies segment recognized a $10.5 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”) tightened to a lesser extent during the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025.
Our interest rate sensitive strategies segment recognized a $16.1 million increase in net servicing fees primarily driven by a reduction in net MSR valuation losses due to a decrease in hedging losses during the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025. These favorable effects were partially offset by a $13.6 million decrease in valuation gains on MBS and $2.9 million increase in net interest expense.
Our aggregation and securitization segment recognized a $2.5 million decrease in gain on sale during the quarter ended June 30, 2026, reflecting a reduction in our volume of sales to nonaffiliates.
Our benefit from income taxes was $14.1 million during the quarter ended June 30, 2026, compared to a $9.5 million tax provision during the quarter ended June 30, 2025, reflecting the effect of reduced profitability in the Company’s taxable REIT subsidiary.
Our results of operations increased by $38.3 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, reflecting the effect of decreased hedging losses relating to our investment in MSRs partially offset by losses on our investments in MBS.
The increase in the six months pretax results is summarized below:
Our credit sensitive strategies segment recognized a $5.2 million increase in net gains on our CRT arrangements as market credit spreads tightened, which resulted in higher fair values during the six months ended June 30, 2026 compared to the same period in 2025.
Our interest rate sensitive strategies segment recognized a $126.9 million increase in net servicing fees primarily driven by a reduction in net MSR valuation losses due to increases in interest rates and improved net hedging performance during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. These benefits were partially offset by a $112.9 million increase in valuation losses on MBS.
Our aggregation and securitization segment recognized an $8.1 million increase in gain on sale during the six months ended June 30, 2026, primarily driven by increased gain on sale margins along with higher interest rate lock volumes, including higher volumes of jumbo loans, as well as favorable non-Agency execution.
Our benefit from income taxes was an $11.8 million benefit during the six months ended June 30, 2026, compared to a $6.5 million benefit from income taxes during the six months ended June 30, 2025, reflecting the effect of reduced profitability in the Company’s taxable REIT subsidiary.
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