Open the filing on EDGARPennyMac Mortgage Investment Trust
Reports First Quarter 2026 Results
WESTLAKE VILLAGE, Calif. - May 5, 2026 - 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%
- 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 securitization 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
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
Formerly referred to as the correspondent production segment
- 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 bonds
- 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 $70 million of net new investments in non-Agency subordinate bonds
“PMT’s first quarter net income of $14 million, or $0.16 in diluted earnings per share was impacted by lower contributions from our interest rate sensitive strategies partially offset by improved results in our aggregation and securitization segment,” said Chairman and CEO David Spector. “While these factors contributed to a decline in book value per share, the underlying fundamentals of our investments remain strong. We are particularly enthusiastic about the continued success of our private label securitization program, highlighted by the completion of eight transactions during the quarter totaling $2.8 billion in UPB. This activity drove continued organic investment creation and we retained more than $200 million of new investments, reinforcing our ability to create high-quality credit assets in a challenging environment. We remain on pace to complete approximately 30 securitizations in 2026, which we expect will build a substantial foundation of investments with attractive returns to support PMT’s future earnings.”
We consolidate the assets and liabilities of the trust that issued the subordinate and senior bonds; accordingly, these investments are shown as Loans held for investment at fair value and Asset-backed financing of variable interest entities at fair value on our consolidated balance sheets
Mr. Spector continued, “Our ability to successfully pivot toward credit-sensitive strategies underscores the depth and agility of our investment platform. The shift into private label securitizations has allowed us to deploy capital into new, high-quality credit investments that we anticipate will produce low-to-mid teens returns on equity. We remain focused on the continued expansion of our securitization program and disciplined capital allocation. As a result, we are confident that our strategy and diversified portfolio of investments will drive the returns necessary to support our dividend and create value for our shareholders over the long-term.”
The following table presents the contributions of PMT’s segments to pretax income:
| (in thousands) |
|---|
| Quarter ended March 31, 2026 | Credit sensitive strategies | Interest rate sensitive strategies | Aggregation and securitization | Reportable segment total | Corporate | Total |
| Net investment income: | | | | | | |
| Net loan servicing fees | $ - | $83,586 | $ - | $83,586 | $ - | $83,586 |
| Net gains on loans held for sale | - | - | 22,910 | 22,910 | - | 22,910 |
| Net (losses) gains on investments and financings | | | | | | |
| Mortgage-backed securities | - | (33,407) | - | (33,407) | - | (33,407) |
| Loans held for investment | 2,191 | (5,758) | - | (3,567) | - | (3,567) |
| CRT investments | 13,911 | - | - | 13,911 | - | 13,911 |
| Net gains (losses) on investments and financings | 16,102 | (39,165) | - | (23,063) | - | (23,063) |
| Net interest income (expense): | | | | | | |
| Interest income | 19,229 | 214,630 | 39,531 | 273,390 | 2,701 | 276,091 |
| Interest expense | 18,727 | 227,557 | 31,554 | 277,838 | 1,912 | 279,750 |
| Net interest income (expense) | 502 | (12,927) | 7,977 | (4,448) | 789 | (3,659) |
| Other | (48) | - | 2,408 | 2,360 | - | 2,360 |
| Net investment income | 16,556 | 31,494 | 33,295 | 81,345 | 789 | 82,134 |
| Expenses: | | | | | | |
| Earned by PennyMac Financial Services, Inc.: | | | | | | |
| Loan servicing fees | 2 | 19,721 | - | 19,723 | - | 19,723 |
| Management fees | - | - | - | - | 6,762 | 6,762 |
| Loan fulfillment fees | - | - | 5,737 | 5,737 | - | 5,737 |
| Professional services | - | - | 10,844 | 10,844 | 2,657 | 13,501 |
| Compensation | - | - | - | - | 2,976 | 2,976 |
| Loan collection and liquidation | 17 | 2,107 | - | 2,124 | - | 2,124 |
| Safekeeping | - | 802 | 53 | 855 | - | 855 |
| Mortgage loan origination Fees | - | - | 213 | 213 | - | 213 |
| Other | 77 | 873 | 31 | 981 | 2,367 | 3,348 |
| Total expenses | 96 | 23,503 | 16,878 | 40,477 | 14,762 | 55,239 |
| Pretax income (loss) | $16,460 | $7,991 | $16,417 | $40,868 | $(13,973) | $26,895 |
Credit Sensitive Strategies Segment
The Credit Sensitive Strategies segment primarily includes results from PMT’s organically-created GSE CRT investments and investments in non-Agency subordinate bonds from private-label securitizations of PMT’s production. Pretax income for the segment was $16.5 million on net investment income of $16.6 million, compared to pretax income of $23.5 million on net investment income of $23.6 million in the prior quarter.
Net gains on investments in the segment were $16.1 million, compared to $24.8 million in the prior quarter. These net gains included $13.9 million of gains from PMT’s organically-created GSE CRT investments and $2.2 million of gains from non-Agency subordinate bonds from PMT’s production.
Net gains on PMT’s organically-created CRT investments for the quarter were $13.9 million, compared to $16.2 million in the prior quarter. These net gains included $2.8 million in valuation-related gains, which reflected the impact of credit spread tightening in the first quarter, down from $3.6 million in the prior quarter. Net gains on PMT’s organically-created CRT investments also included $12.5 million in realized gains and carry, compared to $13.3 million in the prior quarter. Realized losses during the quarter were $1.4 million, up from $0.7 million in the prior quarter.
Net interest income for the segment totaled $0.5 million, compared to $1.3 million of net interest expense in the prior quarter. Interest income totaled $19.2 million, up from $17.5 million in the prior quarter. Interest expense totaled $18.7 million, down from $18.9 million in the prior quarter.
Interest Rate Sensitive Strategies Segment
The Interest Rate Sensitive Strategies segment includes results from investments in MSRs, Agency MBS, non-Agency senior MBS and interest rate hedges. The segment includes investments that typically have offsetting fair value exposures to changes in interest rates. For example, in a period with increasing interest rates, MSRs are expected to increase in fair value, whereas Agency pass-through and non-Agency senior MBS are expected to decrease in fair value. The results in the Interest Rate Sensitive Strategies segment consist of net loan servicing fees, net gains and losses on investments, and net interest expense, as well as associated expenses.
Pretax income for the segment was $8.0 million on net investment income of $31.5 million, compared to pretax income of $28.5 million on net investment income of $52.7 million in the prior quarter.
Net loan servicing fees were $83.6 million, compared to $36.8 million in the prior quarter. Net loan servicing fees included contractually specified servicing fees of $147.6 million and $3.4 million in other fees, reduced by $106.9 million in realization of MSR cash flows, which was up slightly from $103.9 million in the prior quarter due to increased prepayment activity on higher coupon loans. Net loan servicing fees also included $45.6 million in fair value gains on MSRs, $11.9 million in hedging losses, and $5.8 million of MSR recapture income.
Net losses on investments for the segment were $39.2 million, primarily consisting of $33.4 million in losses on MBS. PMT’s hedging activities are intended to manage its net exposure across all interest rate sensitive strategies, which include MSRs, MBS and related tax effects.
The following schedule details net loan servicing fees:
| Quarter ended |
|---|
| March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| (in thousands) |
|---|
| From nonaffiliates: | | | |
| Contractually specified | $147,592 | $151,320 | $152,199 |
| Other fees | 3,367 | 3,958 | 3,917 |
| Effect of MSRs: | | | |
| Change in fair value | | | |
| Realization of cashflows | (106,886) | (103,859) | (88,759) |
| Market changes | 45,587 | 26,247 | (55,831) |
| (61,299) | (77,612) | (144,590) |
| Hedging results | (11,881) | (44,990) | (39,944) |
| (73,180) | (122,602) | (184,534) |
| Net servicing fees from nonaffiliates | 77,779 | 32,676 | (28,418) |
| From PFSI - MSR recapture income | 5,807 | 4,090 | 1,208 |
| Net loan servicing fees | $83,586 | $36,766 | $(27,210) |
Net interest expense for the segment was $12.9 million versus $12.3 million in the prior quarter. Interest income totaled $214.6 million, up from $189.0 million in the prior quarter primarily due to a higher amount of retained investments from private label securitizations. Interest expense totaled $227.6 million, up from $201.3 million in the prior quarter, due to higher financing balances, including additional non-recourse asset-backed financing resulting from securitization activity.
Segment expenses were $23.5 million, down slightly from the prior quarter.
Aggregation and Securitization Segment
Through its Aggregation and Securitization Segment, PMT aggregates loans, either through participation in correspondent activity or direct purchases of PFSI’s production. These loans are aggregated for execution in the secondary market primarily to the Government-Sponsored Enterprises or via private label securitizations to drive organic creation of assets for long-term investment, which results in current period income. For correspondent production volumes initially acquired by PFSI, PMT retains the right to purchase up to 100% of the non-government loan production, and pays PFSI a fulfillment fee for those loans it purchases. PMT also acquires additional non-government loans from PFSI for inclusion in private label securitizations. Through these activities, PMT’s Aggregation and Securitization segment generated pretax income of $16.4 million in the first quarter, compared to $1.0 million of pretax loss in the prior quarter.
PMT purchased a total of $2.8 billion in UPB of conventional conforming and nonconforming loans through its purchase agreement that PFSI acquired from correspondent sellers, down 24% from the prior quarter. PMT acquired 18% of total conventional conforming correspondent production and 100% of nonconforming correspondent production in the first quarter. Interest rate lock commitments on loans for PMT’s account totaled $3.7 billion, down 9% from the prior quarter. Additionally, PMT acquired $1.5 billion in UPB of loans from PFSI’s production for inclusion in private label securitizations, down from $1.8 billion in the prior quarter.
Segment revenues were $33.3 million and included net gains on loans acquired for sale of $22.9 million, net interest income of $8.0 million, and other income of $2.4 million, which primarily consists of volume-based origination fees. Net gains on loans acquired for sale increased $15.7 million from the prior quarter, which included losses related to spread widening on jumbo loans held for sale during aggregation. Interest income was $39.5 million, up slightly from $39.4 million in the prior quarter, and interest expense was $31.6 million, down from $33.1 million in the prior quarter.
Segment expenses were $16.9 million, down from $17.4 million in the prior quarter due to lower volumes. The weighted average fulfillment fee rate in the first quarter was 21 basis points, up from 18 basis points in the prior quarter.
Corporate
Corporate includes interest income from cash and short-term investments, management fees, and corporate expenses.
Corporate revenues were $0.8 million, down from $0.9 million in the prior quarter. Corporate expenses were $14.8 million, down from $15.7 million in the prior quarter, and consisted of management fees of $6.8 million and $8.0 million of other corporate expenses.
Taxes
PMT recorded a provision for tax expense of $2.3 million, driven primarily by income from mortgage aggregation and securitization, and gains on MSR held in its taxable REIT subsidiary.
Management’s slide presentation and accompanying materials will be available in the Investor Relations section of the Company’s website at pmt.pennymac.com after the market closes on Tuesday, May 5, 2026. Management will also host a conference call and live audio webcast at 6:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pmt.pennymac.com, and a replay 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 the Company’s 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.
Forward-Looking Statements
Forward-looking statements notice
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, the Company’s 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 confidence in the financial and housing markets or otherwise have a broad impact on financial and housing markets; the degree and nature of the Company’s competition; the availability of, and level of competition for, attractive risk adjusted investment opportunities in mortgage loans and mortgage related assets that satisfy the Company’s investment objectives; the concentration of credit risks to which the Company is exposed; the Company’s dependence on and potential conflicts with its manager, servicer and their affiliates; the Company’s ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the availability, terms and deployment of short term and long term capital; the adequacy of the Company’s cash reserves and working capital; the Company’s ability to maintain the desired relationship between its financing and the interest rates and maturities of its assets; the timing and amount of cash flows, if any, from the Company’s investments; the Company’s engagement in private loan securitizations; the Company’s substantial amount of indebtedness; the performance, financial condition and liquidity of borrowers; the Company’s exposure to risks of loss and disruptions in operations from severe weather events, man-made or other natural conditions, including climate change and pandemics; the ability of the Company’s servicer, which also provides the Company with fulfillment services, to approve and monitor correspondent sellers and underwrite loans to investor standards; incomplete or inaccurate information or documentation provided by customers or counterparties, or adverse changes in the financial condition of the Company’s customers and counterparties; the Company’s indemnification and repurchase obligations in connection with mortgage loans it purchases and later sells or securitizes; the quality and enforceability of the collateral documentation evidencing the Company’s ownership and rights in the assets in which it invests; increased rates of delinquency, defaults and forbearances and/or decreased recovery rates on the Company’s investments; the performance of mortgage loans underlying mortgage backed securities or other investments in which the Company retains credit risk; the Company’s ability to foreclose on its investments in a timely manner or at all; increased prepayments of the mortgages and other loans underlying the Company’s mortgage backed securities or relating to the Company’s mortgage servicing rights and other investments; risks associated with the discontinuation of LIBOR; the degree to which the Company’s hedging strategies may or may not protect it from interest rate volatility; the accuracy or changes in the estimates the Company makes about uncertainties, contingencies and asset and liability valuations; the Company’s ability to maintain appropriate internal control over financial reporting; the Company’s ability to detect misconduct and fraud; developments in the secondary markets for the Company’s mortgage loan products; legislative and regulatory changes that impact the mortgage loan industry or housing market; regulatory or other changes that impact government agencies or government sponsored entities, or such changes that increase the cost of doing business with such agencies or entities; federal and state mortgage regulations and enforcement; changes in government support of homeownership and affordability programs; changes in the Company’s investment objectives or investment or operational strategies; limitations imposed on the Company’s business and its ability to satisfy complex rules for it to qualify as a REIT for U.S. federal income tax purposes and qualify for an exclusion from the Investment Company Act of 1940 and the ability of certain of the Company’s subsidiaries to qualify as REITs or as taxable REIT subsidiaries for U.S. federal income tax purposes; changes in governmental regulations, accounting treatment, tax rates and similar matters; the Company’s ability to make distributions to its shareholders in the future; the Company’s failure to deal appropriately with issues that may give rise to reputational risk; and the Company’s organizational structure and certain requirements in its charter documents. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| (in thousands except share amounts) |
|---|
| ASSETS | | | |
| Cash | $213,958 | $271,970 | $247,941 |
| Short-term investments at fair value | 187,689 | 190,518 | 204,158 |
| Mortgage-backed securities at fair value | 3,765,539 | 4,452,859 | 4,035,862 |
| Loans held for sale at fair value | 2,349,895 | 2,699,398 | 2,002,207 |
| Loans held for investment at fair value | 10,867,942 | 8,532,644 | 3,228,991 |
| Derivative assets | 54,589 | 55,943 | 45,162 |
| Deposits securing credit risk transfer arrangements | 969,725 | 1,009,334 | 1,087,949 |
| Mortgage servicing rights at fair value | 3,623,979 | 3,644,702 | 3,770,034 |
| Servicing advances | 79,200 | 96,830 | 84,733 |
| Due from PennyMac Financial Services, Inc. | 16,152 | 19,100 | 15,155 |
| Other | 374,024 | 373,584 | 154,034 |
| Total assets | $22,502,692 | $21,346,882 | $14,876,226 |
| LIABILITIES | | | |
| Assets sold under agreements to repurchase | $7,300,692 | $8,018,601 | $6,202,539 |
| Mortgage loan participation and sale agreements | - | - | 4,576 |
| Notes payable secured by credit risk transfer and mortgage servicing assets | 2,396,545 | 2,258,128 | 2,683,368 |
| Unsecured senior notes | 684,506 | 1,028,300 | 773,122 |
| Asset-backed financing of variable interest entities at fair value | 9,903,515 | 7,789,303 | 2,967,631 |
| Interest-only security payable at fair value | 34,232 | 37,650 | 35,954 |
| Derivative and credit risk transfer strip liabilities at fair value | 27,215 | 9,189 | 17,941 |
| Accounts payable and accrued liabilities | 137,102 | 168,498 | 105,451 |
| Due to PennyMac Financial Services, Inc. | 17,500 | 17,122 | 29,198 |
| Income taxes payable | 129,677 | 127,476 | 147,773 |
| Liability for losses under representations and warranties | 5,152 | 5,284 | 5,955 |
| Total liabilities | 20,636,136 | 19,459,551 | 12,973,508 |
| SHAREHOLDERS’ EQUITY | | | |
| Preferred shares of beneficial interest | 541,482 | 541,482 | 541,482 |
| Common shares of beneficial interest - authorized, 500,000,000 common shares of $0.01 par value; issued and outstanding 87,191,663, 87,016,604 and 87,010,608 common shares, respectively | 872 | 870 | 870 |
| Additional paid-in capital | 1,927,759 | 1,927,804 | 1,924,902 |
| Accumulated deficit | (603,557) | (582,825) | (564,536) |
| Total shareholders’ equity | 1,866,556 | 1,887,331 | 1,902,718 |
| Total liabilities and shareholders’ equity | $22,502,692 | $21,346,882 | $14,876,226 |
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| For the Quarterly Periods Ended |
|---|
| March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| (in thousands, except earnings per common share) |
|---|
| Investment Income | | | |
| Net loan servicing fees: | | | |
| From nonaffiliates | | | |
| Servicing fees | $150,959 | $155,278 | $156,116 |
| Change in fair value of mortgage servicing rights | (61,299) | (77,612) | (144,590) |
| Hedging results | (11,881) | (44,990) | (39,944) |
| 77,779 | 32,676 | (28,418) |
| From PennyMac Financial Services, Inc. | 5,807 | 4,090 | 1,208 |
| Net loan servicing fees | 83,586 | 36,766 | (27,210) |
| Net gains on loans held for sale | 22,910 | 7,187 | 12,344 |
| Loan origination fees | 2,375 | 2,893 | 3,152 |
| Net (losses) gains on investments and financings | (23,063) | 53,033 | 62,313 |
| Net interest expense | | | |
| Interest income | 276,091 | 248,252 | 176,091 |
| Interest expense | 279,750 | 254,714 | 182,137 |
| Net interest expense | (3,659) | (6,462) | (6,046) |
| Other | (15) | 146 | (88) |
| Net investment income | 82,134 | 93,563 | 44,465 |
| Expenses | | | |
| Earned by PennyMac Financial Services, Inc.: | | | |
| Loan servicing fees | 19,723 | 20,046 | 21,729 |
| Management fees | 6,762 | 6,856 | 7,012 |
| Loan fulfillment fees | 5,737 | 6,538 | 5,290 |
| Professional services | 13,501 | 13,822 | 6,982 |
| Compensation | 2,976 | 3,263 | 2,970 |
| Loan collection and liquidation | 2,124 | 2,428 | 1,969 |
| Safekeeping | 855 | 1,098 | 1,110 |
| Loan origination | 213 | 132 | 686 |
| Other | 3,348 | 3,267 | 3,016 |
| Total expenses | 55,239 | 57,450 | 50,764 |
| Income (loss) before provision for (benefit from) income taxes | 26,895 | 36,113 | (6,299) |
| Provision for (benefit from) income taxes | 2,279 | (16,249) | (15,979) |
| Net income | 24,616 | 52,362 | 9,680 |
| Dividends on preferred shares | 10,455 | 10,455 | 10,455 |
| Net income (loss) attributable to common shareholders | $14,161 | $41,907 | $(775) |
| Earnings (losses) per common share | | | |
| Basic | $0.16 | $0.48 | $(0.01) |
| Diluted | $0.16 | $0.48 | $(0.01) |
| Weighted average shares outstanding | | | |
| Basic | 87,082 | 87,017 | 86,907 |
| Diluted | 87,082 | 87,017 | 86,907 |
Contacts
Media · Kristyn Clark · mediarelations@pennymac.com · 805.395.9943
Investors · Kevin Chamberlain · Isaac Garden · investorrelations@pennymac.com · 818.224.7028