PennyMac Mortgage Trust Q4 Net Income – $36.1M

By Bobby Samwell • Friday, January 31 06:09 • Permanent Link

Pennymac Mortgage Investment Trust (PMT) reported net income attributable to common shareholders of $36.1 million, or $0.41 per common share on a diluted basis for the fourth quarter of 2024, on net investment income of $107.9 million. This resulted in an annualized return on average common equity of 10%.

The book value per common share increased to $15.87 at December 31, 2024, from $15.85 at September 30, 2024. Correspondent loan production volumes for PMT's account totaled $3.5 billion in unpaid principal balance (UPB), down 41% from the prior quarter as a result of the sale of a large percentage of conventional loans to Pennymac Financial Services, Inc. (PFSI), and up 41% from the fourth quarter of 2023 due to higher overall volumes.

PMT created $60 million in new mortgage servicing rights (MSRs), closed two agency-eligible investor loan securitizations with combined UPB of $822 million, and generated $52 million of net new investments in non-agency subordinate bonds during the fourth quarter of 2024. The company also renewed its management and services agreement with PFSI for five years.

For the full-year 2024, PMT reported net income of $161.0 million, compared to $199.7 million in 2023. Net income attributable to common shareholders was $119.2 million, versus $157.8 million in 2023, with diluted earnings per share of $1.37 versus $1.63 in 2023. The company declared dividends of $1.60 per common share for the year.

The return on average common equity was 8%, down from the previous year, and net investment income was $334.2 million, down from $429.0 million in 2023.

PMT's operating segments contributed to its financial performance. The credit sensitive strategies segment reported pretax income of $20.1 million, the interest rate sensitive strategies segment reported pretax income of $25.5 million, and the correspondent production segment generated pretax income of $22.5 million in the fourth quarter of 2024.

Looking ahead, PMT's Chairman and CEO, David Spector, expressed confidence in the company's performance in 2025, expecting consistent issuer and investor activities in private label securitizations alongside a seasoned portfolio of MSRs and CRT with strong underlying fundamentals. Following these announcements, the company's shares moved 1.6%, and are now trading at a price of $12.89. If you want to know more, read the company's complete 8-K report here.

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