PMT
PennyMac Mortgage Investment TrustDDocument history
Earnings documents stored for PMT.
Investor releaseQuarter not tagged2026-05-165 Revealing Analyst Questions From PennyMac Mortgage Investment Trust’s Q1 Earnings Call
StockStory
5 Revealing Analyst Questions From PennyMac Mortgage Investment Trust’s Q1 Earnings Call
PennyMac Mortgage Investment Trust experienced a challenging first quarter, with results falling short of Wall Street’s expectations and a negative market reaction to the earnings release. Management attributed the underperformance primarily to lower contributions from interest rate-sensitive strategies, notably a drop in servicing fees due to seasonality and accelerated runoff of mortgage servicing rights (MSRs). CEO David Spector noted, “These results were impacted by a lower contribution from our interest rate sensitive strategies primarily due to a decrease in servicing fees as a result of seasonality and a larger-than-expected MSR runoff related to higher note rate loans.” Is now the time to buy PMT? Find out in our full research report (it’s free). Revenue: $82.13 million vs analyst estimates of $96.8 million (84.7% year-on-year growth, 15.1% miss) Adjusted EPS: $0.16 vs analyst expectations of $0.39 (59.3% miss) Adjusted Operating Income: $26.9 million (32.7% margin, 527% year-on-year growth) Market Capitalization: $940 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Trevor Cranston (Citizens JMP) asked about the company’s asset allocation review and whether new investments like non-QM or asset sales are under consideration. CEO David Spector replied that both are being evaluated, with capital likely to shift toward higher-yielding, credit-sensitive strategies. Bose George (KBW) questioned the drivers behind the reduced return on equity guidance and the bridge from Q1 earnings to normalized returns. CFO Daniel Perotti detailed that the biggest impact came from MSR prepayments and lower agency MBS returns due to shifting rate expectations. Jason Weaver (Jones Trading) inquired if recent MBS sales and capital redeployment represent a longer-term portfolio shift. Perotti characterized the move as opportunistic, not a permanent change, but confirmed ongoing evaluation of the portfolio based on market conditions. Douglas Harter (BTIG) probed whether non-agency securitization growth is constrained by opportunity or capital. Spector responded that capital availability is the main constraint, not market oppor...
Investor releaseQuarter not tagged2026-05-14PennyMac Mortgage Investment Trust Declares Second Quarter 2026 Dividends for Its Preferred Shares
Business Wire
PennyMac Mortgage Investment Trust Declares Second Quarter 2026 Dividends for Its Preferred Shares
WESTLAKE VILLAGE, Calif., May 14, 2026--(BUSINESS WIRE)--PennyMac Mortgage Investment Trust (NYSE: PMT) announced today that its Board of Trustees has declared cash dividends for the second quarter of 2026 on its 8.125% Series A Preferred Shares (NYSE: PMT PRA), its 8.000% Series B Preferred Shares (NYSE: PMT PRB) and its 6.750% Series C Preferred Shares (NYSE: PMT PRC). In accordance with the terms for each preferred series, the dividend information is as follows: About PennyMac Mortgage Investment Trust PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PMT is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). Additional information about PennyMac Mortgage Investment Trust is available at pmt.pennymac.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections and assumptions with respect to, among other things, PennyMac Mortgage Investment Trust’s (the "Company") financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like "believe," "expect," "anticipate," "promise," "plan," and other expressions or words of similar meanings, as well as future or conditional verbs such as "will," "would," "should," "could," or "may" are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; rising homeownership costs negatively impacting housing affordability; compliance with changing federal, state and local laws and regulations that govern its business; the general economy or the real estate finance and real estate markets; events or circumstances which undermine confidenc...
Investor releaseQuarter not tagged2026-05-06PennyMac Mortgage Investment Trust Reports First Quarter 2026 Results
Business Wire
PennyMac Mortgage Investment Trust Reports First Quarter 2026 Results
WESTLAKE VILLAGE, Calif., May 05, 2026--(BUSINESS WIRE)--PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income attributable to common shareholders of $14.2 million, or $0.16 per common share for the first quarter of 2026, on net investment income of $82.1 million. PMT previously announced a cash dividend for the first quarter of 2026 of $0.40 per common share of beneficial interest, which was declared on March 11, 2026, and was paid on April 24, 2026, to common shareholders of record as of April 9, 2026. First Quarter 2026 Highlights Financial results: Net income attributable to common shareholders of $14.2 million; annualized return on average common shareholders’ equity of 4%1 Lower contribution from the interest rate sensitive strategies, primarily due to increased mortgage servicing rights (MSR) runoff related to higher coupon loans, partially offset by improved results in the aggregation and securitization2 segment Book value per common share was $14.98 at March 31, 2026, down from $15.25 at December 31, 2025 Other investment highlights: Investment activity driven by acquisition volumes Loans acquired totaled $4.3 billion in unpaid principal balance (UPB), down 21% from the prior quarter Acquired $2.8 billion in UPB of conventional conforming and nonconforming correspondent loan volume from PennyMac Financial Services, Inc. (NYSE: PFSI) through the correspondent fulfillment arrangement, down 24% from the prior quarter Resulted in the creation of $40 million in new mortgage servicing rights (MSRs) Also acquired $1.5 billion in UPB of loans from PFSI’s production, down 15% from the prior quarter Closed three Agency-eligible investor loan securitizations, two jumbo loan securitizations, and three Agency-eligible owner occupied loan securitizations with a combined UPB of $2.8 billion Generated $189 million of net new investments in non-Agency subordinate bonds and $12 million of net new investments in non-Agency senior bonds3 Sold $477 million of Agency fixed-rate mortgage-backed securities (MBS) Other highlights: Redeemed $345 million of exchangeable senior notes due March 2026 Notable activity after quarter end: Completed one Agency-eligible investor loan securitization, one Agency-eligible owner occupied loan securitization, and priced another Agency-eligible investor loan securitization with a combined UPB of $1.1 billion Generated $7...
Investor releaseQuarter not tagged2026-05-06PennyMac Mortgage (PMT) Q1 Earnings and Revenues Lag Estimates
Zacks
PennyMac Mortgage (PMT) Q1 Earnings and Revenues Lag Estimates
PennyMac Mortgage (PMT) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -55.47%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.41 per share when it actually produced earnings of $0.48, delivering a surprise of +17.07%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. PennyMac Mortgage, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $82.13 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 10.78%. This compares to year-ago revenues of $44.47 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. PennyMac Mortgage shares have lost about 3.5% since the beginning of the year versus the S&P 500's gain of 5.2%. While PennyMac Mortgage has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for PennyMac Mortgage was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete li...
Investor releaseQuarter not tagged2026-05-06PennyMac Mortgage Investment Trust Q1 2026 Earnings Call Summary
Moby
PennyMac Mortgage Investment Trust Q1 2026 Earnings Call Summary
Performance was impacted by lower contributions from interest rate-sensitive strategies, specifically a decrease in servicing fees due to seasonality and higher-than-expected MSR runoff from high note rate loans. The company rebranded its Correspondent Production segment to Aggregation and Securitization to better reflect its role in organic asset creation through the secondary market. Organic investment creation remains a core driver, with eight private label securitizations completed in Q1 resulting in $190 million of new subordinate bond investments. Management highlighted the high credit quality of organically created assets, noting weighted average FICO scores in the 770 range and original LTVs in the low 70s. A strategic shift is underway to reposition equity away from lower-performing interest rate-sensitive strategies toward higher-yielding credit-sensitive strategies. The company capitalized on intra-quarter spread tightening by selling $477 million of agency fixed-rate MBS to redeploy capital into retained private label securitization investments. Management expects to complete approximately 30 securitizations in 2026, targeting returns on equity in the low to mid-teens to support future earnings. The run-rate return potential was adjusted to $0.31 per quarter, reflecting increased amortization on higher coupon loans and higher financing costs due to reduced expectations for short-term rate declines. The company plans to maintain its $0.40 per share dividend, stating it is supported by taxable income despite projections for income excluding market-driven value changes being below the dividend level. Strategic evaluation of the MSR portfolio is ongoing to accelerate the transition of capital into credit-sensitive assets like non-owner occupied and non-QM loans. Management anticipates the divergence between core leverage and total debt-to-equity will increase as the securitization program grows and more nonrecourse debt is consolidated. MSR fair value increases of $40 million were more than offset by $46 million in net declines from MBS and interest rate hedges, including tax impacts. The company redeemed $345 million of exchangeable senior notes using existing financing capacity to manage its debt stack. Total debt-to-equity increased to 11:1 due to the accounting requirement to consolidate all securitized loans as nonrecourse debt on the balance sh...
Investor releaseQuarter not tagged2026-05-06PennyMac Mortgage: Q1 Earnings Snapshot
Associated Press
PennyMac Mortgage: Q1 Earnings Snapshot
WESTLAKE VILLAGE, Calif. (AP) — WESTLAKE VILLAGE, Calif. (AP) — PennyMac Mortgage Investment Trust (PMT) on Tuesday reported first-quarter earnings of $24.6 million. The Westlake Village, California-based company said it had profit of 16 cents per share. The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 36 cents per share. The specialty finance company posted revenue of $82.1 million in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PMT at https://www.zacks.com/ap/PMT
TranscriptFY2026 Q12026-05-05FY2026 Q1 earnings call transcript
Earnings source - 46 paragraphs
FY2026 Q1 earnings call transcript
Good afternoon, and welcome to PennyMac Mortgage Investment Trust's first quarter 2026 earnings call. Additional earnings materials, including the presentation slides that will be referred to in the call, as well as an Excel file with supplemental information, are available on PennyMac Mortgage Investment Trust's website at pmt.pennymac.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 two 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 Chairman and Chief Executive Officer, and Dan Perotti, PennyMac Mortgage Investment Trust Chief Financial Officer.
Thank you, operator. Good afternoon and thank you to everyone for participating in our first quarter 2026 earnings call. Starting on slide three, PMT's first quarter net income was $14 million, or $0.16 per diluted common share, representing a 4% annualized return on common equity. These results were impacted by a lower contribution from our interest-rate-sensitive strategies, primarily due to a decrease in servicing fees as a result of seasonality and a larger than expected MSR runoff related to higher note rate loans. These impacts were partially offset by improved results in our aggregation and securitization segment. PMT paid a quarterly dividend of $0.40 per share and book value per share March 31st was $14.98, down 2% from the end of the prior quarter.
Turning to slide five, I would like to note we have renamed what was previously the Correspondent Production segment to the aggregation and securitization segment. We believe this name more accurately captures the breadth of PMT's participation in the mortgage ecosystem, specifically our focus on aggregating high-quality loans for execution in the secondary market to drive organic asset creation. In total, during the first quarter, PMT purchased $4.3 billion in UPB of loans from PFSI. $2.8 billion in UPB was through its correspondent purchase agreement with PFSI, for which PMT pays fulfillment fees. The remaining $1.5 billion represented loan sales from PFSI to PMT outside of their loan purchase agreement, where PMT's private label securitization platform provided optimal secondary market execution for PFSI. Slide six highlights the continued success of our organic investment creation engine.
Similar to last quarter, we completed eight private label securitizations totaling $2.8 billion in UPB. This activity resulted in the retention of $190 million of new subordinate bond investments in the credit-sensitive strategies and $12 million of new senior bond investments in the interest-rate-sensitive strategies. We also generated $40 million of new MSR investments. Our momentum has continued after quarter end, with two additional securitizations completed and another one priced totaling $1.1 billion in UPB. We remain on pace to complete approximately 30 securitizations in 2026, which we expect will build a substantial foundation of investments with returns on equity in the low to mid-teens to support future earnings. On slide seven, we have provided a snapshot of the high-quality investments we are creating through our private label securitization program.
At quarter end, the fair value of subordinate bonds within our credit-sensitive strategies totaled $744 million. 66% of this portfolio is comprised of bonds from non-owner-occupied loan securitizations. 20% is comprised of bonds from jumbo loan securitizations, with the remainder primarily from agency-eligible owner-occupied loan securitizations. As you can see, these investments feature exceptional credit characteristics, including a weighted average FICO at origination of 774, a weighted average LTV at origination of 72, and negligible delinquencies. Within our interest-rate-sensitive strategies, as of quarter end, we held $94 million in fair value of senior and mezzanine bonds. These investments are diversified across our jumbo, non-owner occupied, and agency-eligible owner-occupied loan securitizations.
Similar to our credit-sensitive bonds, these investments are backed by high-quality collateral with weighted average original FICO scores in the 770 range and original loan-to-value ratios in the low 70s. This consistent credit quality across these organically created assets underscores our ability to produce attractive high-yielding investments. On slide eight, approximately 60% of PMT shareholders equity remains deployed to longstanding investments in MSRs and our unique GSE credit risk transfer investments. Mortgage servicing rights account for nearly half of shareholders equity, providing stable cash flows from a portfolio with a low weighted-average coupon of 3.9%. Our organically created GSE CRT investments represent 12% of shareholders equity and consist of seasoned loans with a weighted average current LTV of 46%.
Turning to slide nine, while our diversified portfolio is constructed of investments with strong underlying fundamentals, we acknowledge our earnings, excluding market-driven value changes, have been below our dividend level for the past several quarters. As you can see, we are showing an average run rate return of $0.31 per quarter for the next year. In focusing on the interest-rate-sensitive strategies, increased amortization on higher coupon loans as well as reduced expectations for declines in short-term interest rates, which drive financing costs, have lowered expected returns on MSRs in the near term. As is our long-standing practice, we continue to actively evaluate our overall equity allocation and investment opportunities to refine and optimize our returns on a go-forward basis. We are working diligently to reposition PMT to capture the opportunities more aligned to our long-term return hurdles.
Our momentum in organic investment creation remains strong, and we have successfully positioned PMT as a leader in the private label securitization market. By leveraging our unique ability to create credit-sensitive, high-quality assets and drive our overall returns higher through disciplined capital allocation, I remain confident in our strategy to support our dividend and create long-term value for our shareholders. Now, I'll turn it over to Dan to review the first quarter financial performance.
Thank you, David. Net income to common shareholders was $14 million or $0.16 per diluted common share in the first quarter, or a 4% annualized return on equity to common shareholders. Our credit-sensitive strategies contributed $16 million to pre-tax income, generating an annualized return on equity of 17%. Gains from organically created CRT investments were $10 million, which included $7 million of realized gains in carry and $3 million of market-driven value gains from credit spread tightening. Investments in subordinate MBS from our private label securitizations generated gains of $6 million, $2 million of which were market-driven value gains. The interest-rate-sensitive strategies contributed pre-tax income of $8 million for an annualized ROE of 3%.
Income excluding market-driven value changes for this segment was $11 million, down from $21 million in the prior quarter, impacted by increased prepayment speeds during the quarter, particularly on higher note rate MSRs, which drove higher runoff of our MSR assets, as well as lower servicing fees from seasonality and lower placement fees on custodial balances as a result of lower short-term interest rates. Regarding market-driven value changes, our hedging activities during the quarter yielded a small net decline as the $40 million MSR fair value increase was more than offset by $46 million of net declines in fair value of MBS and interest rate hedges, including the related tax expense.
Additionally, during the quarter, we sold $477 million of agency fixed-rate MBS to capitalize on intra-quarter spread tightening resulting from the GSE MBS purchase announcement, and we redeployed the capital into retained investments from our private label securitizations. The aggregation and securitization segment reported pre-tax income of $16 million compared to a pre-tax loss of $1 million in the prior quarter. The prior quarter amount was primarily driven by spread widening on jumbo loans during the aggregation period and lower overall margins. In total, PMT reported $28 million of net income across its strategies, excluding market-driven value changes, up from $21 million in the prior quarter, primarily due to an increased contribution from the aggregation and securitization segment. I want to address our dividend in the context of our current results and the updated run rate return potential.
While projections for income excluding market-driven value changes remain below the dividend level, it is important to note that we expect to maintain the common share dividend at $0.40 per share, which is supported by our taxable income and which we expect to be sufficient to fully cover the dividend at its current level. Turning to slide 13, we highlight the flexible and sophisticated financing structures PMT has in place to support its diversified portfolio of investments. During the quarter, we redeemed $345 million of exchangeable senior notes originally due in March 2026 using capacity from existing financing lines. Finally, on slide 14, we continue to believe that debt-to-equity excluding non-recourse debt is the best metric for measuring our core leverage.
That ratio declined to 5.6x at quarter end from 6x at the prior quarter end within our expected range. PMT's total debt-to-equity increased to approximately 11 to 1 from 10 to 1 at December 31st as we continue to retain investments from securitizations. The increase in our total debt-to-equity ratio reflects growth in non-recourse debt associated with these transactions, where all securitized loans are required to be consolidated on our balance sheet for accounting purposes. As a reminder, the source of repayment for this debt is limited to the cash flows from the associated loans in each private label securitization, mitigating any additional exposure to PMT. We expect the divergence between these two metrics to continue increasing as our securitization program grows. We'll now open it up for questions. Operator?
Thank you. I would like to remind everyone we will only take questions related to PennyMac Mortgage Investment Trust or PMT. We also ask that you please keep your questions limited to one preliminary question and one follow-up question. If you would like to ask a question, please raise your hand or press star one. To withdraw your question, please press star one again. Our first question comes from the line of Trevor Cranston with Citizens JMP. Your line is open. Please go ahead.
Hey, thanks. Question related to your comments on slide nine about, you know, actively evaluating the asset allocation of the company and some new investment opportunities. Can you elaborate on, you know, what you guys are looking at in terms of kind of new investments, if that includes things like non-QM or home equity? Also, was curious if, you know, sales of maybe some lower returning assets are part of the evaluation that's ongoing. Thanks.
Well, I think it's all the above would be my response. I think first of all, if you look at slide nine, when you look at the annualized return on equity, you can see that, you know, in terms of achieving, you know, that minimum required return of call 13%, 14%, the sector that's really under-delivering and has been the net interest-rate-sensitive strategies, and in particular, the MSRs. As we look across, you know, our MSR portfolio, I mean, clearly there's parts of that that have real value, and there's demand in the marketplace for it. There's others that has real value that perhaps there isn't as much demand in the marketplace.
We're strategically evaluating the MSR portfolio to help accelerate, perhaps the weighted average equity allocation down in that, in that operating strategy and moving more to the credit-sensitive strategies. The point you raise in the credit-sensitive strategies, of course, there's more opportunity to do additional, you know, securitizations in non-owner-occupied loans and agency-eligible loans, and even jumbo loans. Given what we're seeing on, in the non-QM originations, both in correspondent and over at PFSI in their broker division, the ability to aggregate for securitization, you know, is very apparent to me. I wouldn't be surprised to see us do a non-QM securitization over the next year. To your point, there's other assets, you know, that we see in the marketplace that you can create, you know, investments that achieve our, our return target.
So, you know, as we've done in the past, you know, we're going in and we're evaluating you know, where can we recycle out of lower returning assets and move to higher returning assets.
Yeah. Okay. That's helpful. Thank you.
Thanks, Trevor.
Your next question comes from Bose George with KBW. Your line is open, please go ahead.
Guys, good afternoon. First, just, you know, the change in the ROE expectation that you gave for this new, the 31 down from 40, it looks like it's mainly on the agency MBS, but can you just, you know, walk through the drivers of the change?
The, so really the bigger driver, Bose, is on the MSRs, which where the return came down, you know, a few percentage points and the allocation, weighted average equity allocated there, you know, is a larger proportion. The agency MBS also did decline. That was really related to, you know, if you look at the expectations for short-term rates going back from last quarter versus this quarter, there was obviously a sharper decline and thus a greater expected carry from the agency MBS, in that, in the prior run rate scenario. But the bigger impact is related to, really, the prepayment speeds and expectations that we, that we see, in the short to medium term on the MSRs.
Okay. That makes sense. In terms of the bridge now from, you know, the $0.16 you guided this quarter, you know, up to the normalized, can you sort of walk through, you know, just the bridge there?
Well, certainly, obviously rates have increased a bit, and so we are expecting, you know, slower prepayments on the MSRs, but still below, you know, still elevated from what we saw, you know, earlier in prior quarters or in earlier quarters in 2025. As, you know, as David has mentioned or as we mentioned, some allocation out of MSRs, and into, you know, if you look at the allocation here, for example, some ability to ramp up other investments as we move through the next few quarters.
Okay, great. Thank you.
Your next question comes from Jason Weaver with JonesTrading. Your line is open. Please go ahead.
Hey, good afternoon, guys. Hope you're doing well. In your prepared remarks, you mentioned the sale of roughly $500 million of MBS on tightening to redeploy towards retained securitization, which looks like a material rotation, the interest-rate-sensitive book. All else equal, is this the sort of glide path we should think about for the remainder of 2026, or was this more of a tactical rotation?
I think that was really more opportunistic or tactical. We wouldn't necessarily expect to continue to wind down that, you know, that portfolio especially, although, you know, we will adjust as we're looking at rotating out of certain portions of the portfolio. Given the, you know, returns that we expect from the agency MBS portfolio and what we, you know, what we, you know, what we have here overall, we wouldn't expect to draw down necessarily further on the MBS portfolio, but it's something that we'll continuously evaluate it where spreads are in the market.
Got it. Thanks for that. I think you retained, redeemed, excuse me, about $350 million of the exchangeable senior notes from the existing financing book. What does the unsecured corporate debt stack look for the next, you know, 24 months, if you can just guess? Are you targeting any sort of opportunistic refinancing or extension given current spreads?
We, you know, we issued about $150 million of additional convertible debt towards the end of Q4 last year. We additionally, in 2025, issued a few unsecured, you know, baby bonds. That was effectively a, you know, pre-refinancing of the, you know, the convertible debt that was retired in Q1 of this year. We don't have a need to necessarily raise additional unsecured debt. It is something that we will continue to look at and see if there are opportunities. But no, you know, immediate plans necessarily. It's something that we will be opportunistic with the extent that we see opportunities.
That's good color. I appreciate it, guys.
And a reminder that if you would like to ask a question, you can press star one to raise your hand. Your next question comes from the line of Doug Harter with BTIG. Your line is open. Please go ahead.
Thanks. As you think about the opportunity in the non-agency securitization, do you view it as more opportunity-limited today or more capital-constrained and, you know, as you think about the ability to scale, continue to scale that business?
I think, it's really capital more than opportunity. I think, you know, the great story about PMT is obviously the synergistic relationship it has with PFSI and the ability to source the underlying assets, the ability to underwrite and process the loans on the front end and where we have the ability, the fact that we select the loans that we want in our investments is a really important feature that we have in PMT. So, you know, whether it's, you know, investor, not or non-owner securitizations where we create subordinate bonds or jumbo loan securitizations and even the agency-eligible loans where we're not securitizing just for best execution purposes, we're securitizing to create investments for PMT. I think that it's really a, you know, really more of a capital issue for us.
I think that's, you know, why we're, you know, focused on opportunistically, you know, getting out of lower returning assets and most likely reinvesting the capital into our credit-sensitive strategies sector, which by the way, from the very beginning of PMT is what the investment thesis was for PMT, was to be a credit-sensitive strategy vehicle. That's, that's really the guiding, you know, the kind of the guiding force here. You know, I think we've done a great job in being the, you know, the preeminent securitizer of these non-agency loans and creating the investments behind them. You look at the performance of these, and they're really remarkable.
I think that, you know, we've done a nice job when CRT was discontinued to be able to move to figure out, okay, how do we create a like investment without the, you know, the CRT opportunity? That's how we ended up where we are today. I think you're gonna continue to see us grow the equity allocation in the credit-sensitive strategies over time.
Thanks. David, as you mentioned, you know, you're seeing increased non-QM volumes. How much crossover is there in your traditional agency originator that's a correspondent partner versus non-QM or some of these other products that you're, you know, you haven't necessarily gotten as large in yet?
You know, I've been really pleasantly surprised, and I think it's a function of the size of the market that we're seeing a good amount of our correspondents getting into non-QM lending. I think that they are, you know, they're recognizing that they need to expand their product, you know, they need to expand their product base. You know, this is where being the leading correspondent aggregator with over 700 clients is really an advantage to us. You know, getting really good, you know, meaningful deliveries of non-QM correspondent, I expect that to meaningfully grow. You know, I think the important part of non-QM, like all non-agency product, you have to keep an eye on the fact that you know, you don't wanna get caught in a market disruption or with spreads widening.
So, we're being really diligent, at least initially in selling and forward selling the non-QM product to really lock in the margin until such time as we want, that we decide to do a securitization. That's where, again, the synergistic relationship with PFSI is gonna be really valuable because similar to the correspondent side, on the PFSI side, we're seeing really good, you know, receptivity to non-QM with our broker partners. So, I think when we decide that, you know, we wanna do a securitization and really, you know, deploy capital there, we'll be able to do so.
By and large, I think there's the part of the non-QM market that we're participating in is getting more readily accepted in the broker and correspondent communities as more akin to their credit profile and their risk management framework than when it was originally, you know, when it was originally was born some 10 years ago and people thought of it as maybe a little less than prime. I've been pleasantly surprised by this.
Great. Thank you, David.
Thanks, Doug.
We have no further questions at this time. I'll now turn it back to David Spector for closing remarks.
Well, I'd like to thank everyone for joining us on our call today. If you have any questions, please don't hesitate to reach out to me or our IR team. I look forward to speaking to all of you in the near future. Thank you.
This concludes today's call. You may now disconnect.
Investor releaseQuarter not tagged2026-05-04PennyMac Mortgage Investment Trust (PMT) Reports Earnings Tomorrow: What To Expect
StockStory
PennyMac Mortgage Investment Trust (PMT) Reports Earnings Tomorrow: What To Expect
Mortgage REIT PennyMac Mortgage Investment Trust (NYSE:PMT) will be reporting earnings this Tuesday after market close. Here’s what to look for. PennyMac Mortgage Investment Trust missed analysts’ revenue expectations last quarter, reporting revenues of $93.56 million, down 13.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue and net interest income estimates. Is PennyMac Mortgage Investment Trust a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting PennyMac Mortgage Investment Trust’s revenue to grow 118% year on year, a reversal from the 40.1% decrease it recorded in the same quarter last year. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PennyMac Mortgage Investment Trust has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at PennyMac Mortgage Investment Trust’s peers in the thrifts & mortgage finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. WaFd Bank delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4%, and Northwest Bancshares reported revenues up 12.1%, topping estimates by 0.8%. WaFd Bank traded up 8.4% following the results while Northwest Bancshares was also up 5%. Read our full analysis of WaFd Bank’s results here and Northwest Bancshares’s results here. There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 4.5% on average over the last month. PennyMac Mortgage Investment Trust is up 2.8% during the same time and is heading into earnings with an average analyst price target of $13.14 (compared to the current share price of $12.29). ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
Investor releaseQuarter not tagged2026-04-21PennyMac Mortgage (PMT) Earnings Expected to Grow: Should You Buy?
Zacks
PennyMac Mortgage (PMT) Earnings Expected to Grow: Should You Buy?
The market expects PennyMac Mortgage (PMT) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This specialty finance company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +3700%. Revenues are expected to be $92.06 million, up 107% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earni...
Investor releaseQuarter not tagged2026-04-21PennyMac Mortgage Investment Trust Announces Date for Release of First Quarter 2026 Results
Business Wire
PennyMac Mortgage Investment Trust Announces Date for Release of First Quarter 2026 Results
WESTLAKE VILLAGE, Calif., April 21, 2026--(BUSINESS WIRE)--PennyMac Mortgage Investment Trust (NYSE: PMT) will announce results for the quarter ended March 31, 2026, in a news release to be issued after the market close on Tuesday, May 5, 2026. Management will host a conference call and live audio webcast at 6:00 p.m. Eastern Time to review the results. The release, webcast, and accompanying materials will be available online at pmt.pennymac.com. A replay of the webcast will be available shortly after its conclusion. Individuals who are unable to access the website but would like to receive a copy of the materials should contact our Investor Relations department at 818.224.7028. About PennyMac Mortgage Investment Trust PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PMT is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). Additional information about PennyMac Mortgage Investment Trust is available at pmt.pennymac.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260420297020/en/ Contacts Media Contact Kristyn Clark [email protected] 805.395.9943 Investors Kevin Chamberlain Isaac Garden [email protected] 818.224.7028
Investor releaseQuarter not tagged2026-04-17Annaly's Q1 Earnings on the Deck: Here's What to Expect From the Stock
Zacks
Annaly's Q1 Earnings on the Deck: Here's What to Expect From the Stock
Annaly Capital Management Inc. NLY is scheduled to report first-quarter 2026 results on April 21, after market close. The company’s net interest income (NII) and earnings are expected to reflect year-over-year increases in the quarter to be reported. In the last reported quarter, the mortgage real estate investment trust’s (mREIT) earnings available for distribution per share topped the Zacks Consensus Estimate. The company’s average yield on interest-earning assets improved. The year-over-year increase in book value per share was also encouraging. Annaly has an impressive earnings surprise history. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 1.74%. Annaly Capital Management Inc Price and EPS Surprise Annaly Capital Management Inc price-eps-surprise | Annaly Capital Management Inc Quote Let us see how things have shaped up before the first-quarter earnings announcement. The consensus estimate for first-quarter NII is pegged at $494 million, suggesting a rise from the year-ago quarter’s reported NII of $219.9 million. The Zacks Consensus Estimate for earnings has been unchanged at 74 cents over the past seven days. The metric indicates a rise of 2.8% from the year-ago quarter’s actual. The Federal Reserve kept interest rates unchanged in the first quarter of 2026. Though mortgage rates moved lower early in the quarter, the same climbed again toward the end of March, as macro uncertainty and geopolitical tensions emerged. Throughout the quarter, the mortgage rate hovered at 6-6.5%. While refinance activity has seen a slight boost from the 2025 lows, purchase volume faced pressure from inventory constraints. Given this backdrop, NLY’s mortgage-backed securities (MBS) portfolio is likely to have faced somewhat higher interest-rate volatility and wider agency MBS spreads during the quarter. This might have pressured the company’s book value performance in the first quarter of 2026. Although mortgage rates were lower at certain points during the quarter, the overall level of rates remained high enough to keep refinancing incentives fairly limited. As a result, AGNC’s constant prepayment rates are expected to have stayed relatively contained, which could help moderate premium amortization expenses and offer some support to net interest income. This is expected to have positively i...
Investor releaseQuarter not tagged2026-04-15AGNC Investment Set to Report Q1 Earnings: Here's What to Expect
Zacks
AGNC Investment Set to Report Q1 Earnings: Here's What to Expect
AGNC Investment Corp. AGNC is slated to report first-quarter 2026 earnings on April 20, after market close. The company’s fourth-quarter 2025 results were adversely impacted by a decline in average asset yield and reduced net interest spread. However, a rise in tangible net BVPS on the portfolio was positive. AGNC Investment’s earnings outpaced the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with an average negative surprise of 3.88%. AGNC Investment Corp. Price and EPS Surprise AGNC Investment Corp. price-eps-surprise | AGNC Investment Corp. Quote The Zacks Consensus Estimate for first-quarter 2026 earnings of 36 cents per share has been unchanged over the past week. This indicates a decline of 18.2% from the year-ago reported level. The Zacks Consensus Estimate for net interest income for the first quarter of 2026 is pegged at $310.9 million, indicating a rise of 95.5% from the year-ago quarter’s actual. The first quarter of 2026 was challenging for the mortgage banking business. While rates moved lower early in the quarter, they climbed again toward the end of March as macro uncertainty and geopolitical tensions pushed interest rates higher. Throughout the quarter, the mortgage rate hovered at 6-6.5%. While refinance activity has seen a slight boost from the 2025 lows, purchase volume faced pressure from inventory constraints. Given this backdrop, AGNC Investment’s mortgage-backed securities (MBS) portfolio is likely to have faced somewhat higher interest-rate volatility and wider agency MBS spreads during the quarter. AGNC noted in its March 2026 Macro Monitor that the uncertain macro environment led to higher rates across the curve, elevated rate volatility and wider agency MBS spreads on a month-over-month basis. This may have pressured the company’s book value performance in the first quarter of 2026. Prepayment trends, however, were likely manageable. Although mortgage rates were lower at certain points during the quarter, the overall level of rates remained high enough to keep refinancing incentives fairly limited. As a result, AGNC’s constant prepayment rates are expected to have stayed relatively contained, which is likely to have helped moderate premium amortization expenses and offered some support to net interest income. This dynamic is likely to have been a modest positive for average asset yield during the...