PennyMac Mortgage Investment Trust
For the period ended Sep 30, 2026. Filed Nov 3, 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.
Sep 30, 2026 · Filed Nov 3, 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 September 30, · Nine months ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 · 2025 · 2026 · 2025 | ||||||
| (dollar amounts in thousands, except per common share amounts) | ||||||
| Net loan servicing fees | $241,879 | $15,429 | $365,506 | $12,166 | ||
| Net (losses) gains on investments and financings | (162,265) | 64,087 | (163,027) | 160,080 | ||
| Loan production income (1) | 6,541 | 17,952 | 49,324 | 54,639 | ||
| Net interest (expense) income | (49,888) | 1,694 | (60,642) | (13,020) | ||
| Other | (23) | 70 | (54) | 33 | ||
| Net investment income | 36,244 | 99,232 | 191,107 | 213,898 | ||
| Expenses | 52,685 | 52,234 | 163,833 | 156,193 | ||
| Pretax (loss) income | (16,441) | 46,998 | 27,274 | 57,705 | ||
| Provision for (benefit from) income taxes | 8,931 | (11,298) | (2,889) | (17,805) | ||
| Net (loss) income | (25,372) | 58,296 | 30,163 | 75,510 | ||
| Dividends on preferred shares | 10,455 | 10,455 | 31,364 | 31,364 | ||
| Net (loss) income attributable to common shareholders | $(35,827) | $47,841 | $(1,201) | $44,146 | ||
| Pretax (loss) income by segment and corporate: | ||||||
| Credit sensitive strategies | $(41,770) | $18,754 | $(14,062) | $41,698 | ||
| Interest rate sensitive strategies | 36,010 | 32,346 | 52,991 | 21,982 | ||
| Aggregation and securitization | 2,070 | 9,244 | 29,617 | 33,095 | ||
| Corporate operations | (12,751) | (13,346) | (41,272) | (39,070) | ||
| $(16,441) | $46,998 | $27,274 | $57,705 | |||
| Annualized return on average common shareholders' equity | (11.0)% | 14.3% | (0.1)% | 4.3% | ||
| (Loss) earnings per common share | ||||||
| Basic | $(0.41) | $0.55 | $(0.01) | $0.50 | ||
| Diluted | $(0.41) | $0.55 | $(0.01) | $0.50 | ||
| Dividends per common share | $0.40 | $0.40 | $1.20 | $1.20 | ||
| September 30, 2026 · December 31, 2025 | ||||||
| (dollar amounts in thousands, except per common share amounts) | ||||||
| Total assets | $26,853,863 | $21,346,882 | ||||
| Book value per common share | $14.03 | $15.25 | ||||
| Closing price per common share | $7.88 | $12.55 | ||||
(1)
Includes net gains on sales of loans and loan origination fees.
Our results of operations decreased by $83.7 million during the quarter ended September 30, 2026, as compared to the quarter ended September 30, 2025, reflecting losses on our investments in MBS, partially offset by gains on our MSRs.
The decrease in the quarterly pretax results is summarized below:
Our credit sensitive strategies segment recognized a $3.7 million decrease in net gains on our CRT arrangements and a $59.0 million unfavorable change in loans held for investment net of associated secured financing. These decreases were primarily driven by rising interest rates and credit spreads (which represent the interest rate premium demanded by investors for assuming credit risk) widening during the quarter, particularly towards the end of the quarter. Increasing interest rates and widening credit spreads reduced the fair value of these assets compared to the quarter ended September 30, 2025, which did not have similar market movements.
Our interest rate sensitive strategies segment recognized a $226.5 million increase in net servicing fees and a $40.9 million favorable change in loans held for investment. These improvements were primarily driven by net MSR fair value gains and gains on MSR fair values embedded in our private-label securitizations as interest rates rose sharply, offset by a $205.3 million increase in valuation losses on MBS and a $57.4 million increase in net interest expense.
Our aggregation and securitization segment recognized a $9.7 million decrease in gain on sale during the quarter ended September 30, 2026, reflecting a reduction in our volume of sales to nonaffiliates and the impact of interest rate and spread volatility during the quarter.
Our provision for income taxes increased by $20.2 million during the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025, reflecting the increased profitability of the Company’s taxable REIT subsidiary.
Our results of operations decreased by $45.3 million during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, reflecting an increase in losses on our investments in MBS, partially offset by a decrease in hedging losses relating to our investments in MSRs.
The decrease in the nine months pretax results is summarized below:
Our credit sensitive strategies segment recognized a $1.4 million increase in net gains on our CRT arrangements and a $58.4 million unfavorable change in loans held for investment net of associated secured financing as interest rates rose sharply and credit spreads increased towards the end of the nine months ended September 30, 2026 compared to the same period in 2025 when market rates and spreads decreased.
Our interest rate sensitive strategies segment recognized a $353.3 million increase in net servicing fees and $50.8 million favorable change in loans held for investment. These increases were driven by a reduction in net MSR valuation losses and gains on MSR values embedded in our private-label securitizations resulting from improved net hedging performance and rising interest rates during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. These benefits were partially offset by a $318.2 million increase in valuation losses on MBS.
Our aggregation and securitization segment recognized a $1.6 million decrease in gain on sale during the nine months ended September 30, 2026, primarily driven by a reduction in our volume of sales to nonaffiliates.
Our benefit from income taxes decreased by $14.9 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, reflecting the effect of reduced losses in the Company’s taxable REIT subsidiary.
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