Yahoo Finance

• Net Loss: $1 million net loss to common shareholders for Q1 2025.

• Earnings Per Share: Negative $0.01 diluted EPS.

• Dividend: $0.40 per share declared for Q1.

• Book Value Per Share: $15.43 as of March 31, down from December 31.

• MSR Fair Value: $3.8 billion at the end of Q1.

• Correspondent Loan Acquisition Volume: $23 billion in Q1, down 18% from the prior quarter.

• Correspondent Loans for PMT's Account: $3 billion, down 20% from the prior quarter.

• Net Income Excluding Market-Driven Changes: $41 million, down from $51 million in the prior quarter.

• Run Rate Return Potential: Quarterly average of $0.35 per share, down from $0.37 per share in the prior quarter.

• Unsecured Senior Notes Issued: $173 million due in 2030.

• Warning! GuruFocus has detected 7 Warning Signs with PMT.

Release Date: April 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PennyMac Mortgage Investment Trust (NYSE:PMT) declared a first quarter common dividend of $0.40 per share, demonstrating a commitment to returning value to shareholders.

• The company's diversified investment portfolio and strong risk management practices, including a well-established interest rate hedging program, have enabled it to manage through challenging market conditions effectively.

• PMT's synergistic relationship with PFSI provides competitive advantages, such as access to a large and agile multichannel origination business and the ability to execute private label securitizations.

• The company successfully completed three securitizations of investor loans totaling $1 billion, retaining $94 million in new investments with expected returns on equity in the mid-teens.

• PMT's MSR investments, which account for approximately half of its deployed equity, are expected to continue producing stable cash flows due to low expected prepayments and a higher interest rate environment.

Negative Points

• PMT reported a net loss to common shareholders of $1 million in the first quarter, or negative $0.01 per diluted common share, primarily due to interest rate volatility and credit spread widening.

• The interest rate sensitive strategies contributed a pretax loss of $5 million, with fair value declines on MSR investments amounting to $56 million.

• Total correspondent loan acquisition volume was $23 billion in the first quarter, down 18% from the prior quarter, reflecting a decline in the size of the origination market.

• The company's book value per share decreased by about 2% to 3% since the end of the quarter due to higher hedge costs, interest rate volatility, and spread widening.

• PMT's run rate return potential reflects a quarterly average of $0.35 per share, down from $0.37 per share in the prior quarter, due to compression between longer-dated asset yields and short-term financing rates.