Q2 2025 PennyMac Mortgage Investment Trust Earnings Call Transcript

Jul 22, 2025 / 10:00PM GMT

Release Date Price: €10.6 (-0.93%)

Transcript 10-Q8-K

Key Points

Positve

PennyMac Mortgage Investment Trust (PMT) successfully completed three securitizations of agency eligible investor loans totaling $1.1 billion UPB, retaining $71 million of new investments.
PMT's diversified investment portfolio and strong risk management practices enabled effective management through volatile market conditions.
The company has a synergistic partnership with PFSI, leveraging its best-in-class operating platform and large multi-channel origination business.
PMT's MSR investments are expected to continue producing stable cash flows due to low refinancing incentives for borrowers.
The company reported gains from organically created CRT investments and expects continued mid- to low-teens returns from these investments.

Negative

PMT reported a net loss to common shareholders of $3 million in the second quarter, or negative $0.04 per diluted common share.
Interest rate sensitive strategies contributed to a pre-tax loss of $5 million, with fair value increases on MSR investments offset by losses in MBS and interest rate hedges.
The company faced a $14 million non-recurring tax adjustment due to state apportionment changes.
PMT's debt to equity ratio has increased, primarily due to growth in non-recourse debt related to private label securitization activity.
The operating earnings run rate, although improved, remains slightly below the $0.40 dividend level, raising concerns about its sustainability.

Operator

Good afternoon, everyone, and welcome to PennyMac Mortgage Investment Trust second-quarter 2025 earnings call. Additional earnings materials, including the presentation slides that will be referred to in the call are available on PennyMac Mortgage Investment Trust website at pmt.pennymack.com.

Before we begin, let me remind you that this call may contain forward-looking statements that are subject to certain risks identified on slide 2 of the earnings presentation that could cause the company's actual results to differ materially, as well as non-GAAP measures that have been reconciled to their GAAP equivalent in the earnings materials. Now, I'd like to introduce David Spector, PennyMac Mortgage Investment Trust's Chairman and Chief Executive Officer. And Dan Perotti, Penny Mac mortgage Investment Trust Chief Financial Officer.

Please go ahead.

David Spector

PennyMac Financial Services Inc - Chairman of the Board, Chief Executive Officer

Thank you, operator. So the second quarter, PMT produced a net loss to common shareholders of $3 million,

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