StockNews.AI
PMT
StockNews.AI
201 days

PennyMac Mortgage Investment Trust Reports Fourth Quarter and Full-Year 2024 Results

1. PMT posted Q4 2024 net income of $36.1 million. 2. Investment activity down 41% from Q3, but up 41% YoY. 3. Book value per share slightly decreased to $15.87. 4. Renewed agreement with PFSI for correspondent production services. 5. Expect continued high investment activity into 2025.

309m saved
Insight
Article

FAQ

Why Bullish?

Despite lower income compared to 2023, key growth in activities suggests future stability.

How important is it?

The article discusses earnings and operational updates crucial for PMT's valuation.

Why Long Term?

PMT's renewed agreement and anticipated investment activity create a more stable outlook moving forward.

Related Companies

PFSI

PennyMac Mortgage Investment Trust Reports Fourth Quarter and Full-Year 2024 Results

WESTLAKE VILLAGE, Calif.--( )-- PennyMac Mortgage Investment Trust (NYSE: PMT) today 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. PMT previously announced a cash dividend for the fourth quarter of 2024 of $0.40 per common share of beneficial interest, which was declared on December 13, 2024, and paid on January 24, 2025, to common shareholders of record as of December 27, 2024.

Fourth Quarter 2024 Highlights

Financial results:

  • Net income attributable to common shareholders of $36.1 million; annualized return on average common equity of 10%1
    • Results driven by strong levels of income excluding market-driven value changes
  • Book value per common share increased to $15.87 at December 31, 2024, from $15.85 at September 30, 2024

Other investment highlights:

  • Investment activity driven by correspondent production volumes
    • Correspondent loan production volumes for PMT’s account totaled $3.5 billion in unpaid principal balance (UPB), down 41 percent from the prior quarter as a result of the sale of a large percentage of conventional loans to PennyMac Financial Services, Inc. (NYSE: PFSI), and up 41 percent from the fourth quarter of 2023 as a result of higher overall volumes
      • Resulted in the creation of $60 million in new mortgage servicing rights (MSRs)
    • Closed two Agency-eligible investor loan securitizations with combined UPB of $822 million
      • Generated $52 million of net new investments in non-Agency subordinate bonds

1

Return on average common equity is calculated based on net income attributable to common shareholders as a percentage of monthly average common equity during the quarter.

Other highlights:

  • Renewed management and services agreement with PFSI for five years

Notable activity after quarter end

  • Closed an additional Agency eligible investor loan securitization with UPB of $341 million
    • Generated $21 million of net new investments in non-Agency subordinate bonds

Full-Year 2024 Highlights

Financial results:

  • Net income of $161.0 million, versus $199.7 million in 2023
  • Net income attributable to common shareholders of $119.2 million, versus $157.8 million in 2023; diluted earnings per share of $1.37 versus $1.63 in 2023
  • Dividends of $1.60 per common share
  • Book value per share decreased slightly from $16.13 to $15.87
  • Net investment income of $334.2 million, down from $429.0 million in 2023
  • Return on average common equity of 8%2
  • Issued $1.3 billion in term debt to address or refinance upcoming maturities

2

Return on average common equity is calculated based on net income attributable to common shareholders as a percentage of monthly average common equity during the year.

“PMT produced strong results in the fourth quarter with a 10 percent annualized return on equity primarily driven by strong levels of income excluding market-driven value changes and excellent performance across all three investment strategies,” said Chairman and CEO David Spector. “Importantly, the fourth quarter marked a return to organic creation of credit investments as we leveraged the strength of our correspondent production and securitization expertise to complete two securitizations of Agency-eligible investor loans and retained $52 million of net new credit subordinate bond investments. With a growing pipeline of loans available for private label securitization and strong investor demand, we expect similar levels of activity well into 2025, with the potential for increased activity and securitizations of other loan products as the origination market grows.”

Mr. Spector concluded, “While I am pleased with PMT’s performance in 2024, I am even more excited by the opportunity ahead. Given our expectations for PMT to be a consistent issuer and investor in private label securitizations alongside its seasoned portfolio of MSRs and CRT with strong underlying fundamentals, I am confident the company will continue to deliver attractive risk-adjusted returns in 2025 and beyond.”

The following table presents the contributions of PMT’s operating segments, consisting of Credit Sensitive Strategies, Interest Rate Sensitive Strategies, and Correspondent Production, as well as non-segment activities in our corporate operations:

Contacts

Media
Kristyn Clark
mediarelations@pennymac.com
805.225.8224

Investors
Kevin Chamberlain
Isaac Garden
investorrelations@pennymac.com
818.224.7028

Related News