PennyMac Mortgage Investment Trust Reports Fourth Quarter and Full-Year 2023 Results
- PMT reported strong financial results for Q4 2023, with net income of $42.5 million and an annualized return on average common equity of 12%.
- The company's book value per common share increased to $16.13 at the end of Q4 2023, up from $16.01 at the end of Q3 2023.
- PMT's full-year 2023 net income was $199.7 million, a significant improvement from a net loss of $73.3 million in 2022.
- The company declared a cash dividend of $0.40 per common share for Q4 2023, which was paid on January 26, 2024.
- PMT's return on average common equity for the full year 2023 was 11%.
- PMT experienced fair value declines in interest rate sensitive strategies, resulting in a tax benefit.
- Conventional correspondent loan production volumes for PMT’s account totaled $2.5 billion in UPB, down 10 percent from the prior quarter and 63 percent from the fourth quarter of 2022.
Insights
The reported net income of $42.5 million for PennyMac Mortgage Investment Trust (PMT) in Q4 2023, up from a net loss in the previous year, indicates a robust turnaround in profitability. This is underscored by a significant increase in net investment income to $84.8 million. The 12% annualized return on average common equity reflects an efficient use of shareholder equity relative to earnings. The increase in book value per share from $16.01 to $16.13 signifies a modest appreciation in shareholder value.
However, it is important to note the decline in conventional correspondent loan production volumes, which could signal a contraction in PMT's market share or a strategic shift. The creation of $43 million in new mortgage servicing rights (MSRs) demonstrates PMT's continued investment in long-term income streams, although the valuation of these assets can be sensitive to interest rate changes. The investment in government-sponsored enterprise credit risk transfer (CRT) bonds and the subsequent sale of floating rate GSE CRT bonds after credit spreads tightened indicate active portfolio management and a tactical approach to market conditions.
Looking at the full-year perspective, the improvement from a net loss in 2022 to a net income of $199.7 million in 2023 is a strong indicator of PMT's recovery and resilience amidst market volatility. This is further reinforced by the growth in net investment income year over year. The consistent dividend payout, with $1.60 per common share, provides a tangible return to shareholders and signals confidence in PMT's earnings stability.
The mortgage investment sector is highly sensitive to interest rate fluctuations, which can affect both the value of mortgage servicing rights (MSRs) and credit risk transfer (CRT) bonds. PMT's reported fair value declines in interest rate sensitive strategies, which were partially offset by contributions from credit sensitive strategies, highlight the importance of a diversified investment approach to mitigate risk. The tax benefit derived from these fair value declines suggests a strategic use of taxable subsidiary structures to manage tax liability.
It is also notable that PMT's correspondent production business has been a significant contributor to its financial performance. The decline in loan production volumes could be reflective of broader industry trends, such as rising interest rates leading to lower mortgage origination volumes. This trend could have implications for future revenue and profitability if it continues.
The opportunistic sale of CRT bonds post-quarter-end after credit spreads tightened demonstrates PMT's agility in capitalizing on market movements to realize gains. This active management strategy is essential in the mortgage investment sector, where market conditions can change rapidly.
The performance of PMT must be contextualized within the broader economic landscape, particularly the interest rate environment. The Federal Reserve's monetary policy, which influences interest rates, has a direct impact on PMT's core business areas such as MSRs and CRT investments. PMT's ability to navigate a year of 'tremendous volatility,' as stated by their CEO and come out with a positive return on equity and net income growth is indicative of strong risk management practices.
Furthermore, the mortgage investment sector often serves as a barometer for the housing market and consumer financial health. The strong credit characteristics and significant home equity of the borrowers underlying PMT's assets suggest a robust housing market, despite potential economic headwinds. However, investors should be cognizant of the cyclical nature of the housing market and the potential impact of economic downturns on mortgage investments.
Fourth Quarter 2023 Highlights
Financial results:
-
Net income attributable to common shareholders of
; annualized return on average common equity of$42.5 million 12% 1- Strong contributions from credit sensitive strategies and correspondent production partially offset by fair value declines in the interest rate sensitive strategies, which drove a tax benefit
-
Book value per common share increased to
at December 31, 2023, from$16.13 at September 30, 2023$16.01
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 investment highlights:
-
Investment activity driven by correspondent production volumes
-
Conventional correspondent loan production volumes for PMT’s account totaled
in unpaid principal balance (UPB), down 10 percent from the prior quarter and 63 percent from the fourth quarter of 2022 as a result of the sale of a large percentage of conventional loans to PennyMac Financial Services, Inc. (NYSE: PFSI)$2.5 billion -
Resulted in the creation of
in new mortgage servicing rights (MSRs)$43 million
-
Resulted in the creation of
-
Conventional correspondent loan production volumes for PMT’s account totaled
-
of new investments in government-sponsored enterprise (GSE) credit risk transfer (CRT) bonds$17 million
Notable activity after quarter end
-
Opportunistically sold
in floating rate GSE CRT bonds after credit spreads tightened$56 million
Full-Year 2023 Highlights
Financial results:
-
Net income of
, versus net loss of$199.7 million in 2022$73.3 million -
Net income attributable to common shareholders of
, versus net loss attributable to common shareholders of$157.8 million in 2022; diluted earnings per share of$115.1 million versus$1.63 in 2022$(1.26) -
Dividends of
per common share$1.60 -
Book value per share grew from
to$15.78 $16.13 -
Net investment income of
, up from$429.0 million in 2022$303.8 million -
Return on average common equity of
11% 2
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 very strong results in 2023, with an 11 percent return on equity and income contributions from all three of its investment strategies, demonstrating strength in a year of tremendous volatility,” said Chairman and CEO David Spector. “Book value per share net of the dividends was up 2 percent from the prior year end, driven by both PMT’s strong financial performance as well as our unwavering commitment to managing interest rate risk. The fourth quarter was also very strong, with a 12 percent annualized return on equity driven by sizeable contributions from both the credit sensitive strategies and PMT’s correspondent production business.”
Mr. Spector continued, “I am proud of PMT’s financial performance in 2023, and believe the long-term return potential of PMT’s core MSR and CRT investments remains strong, supported by the borrowers underlying these assets with strong credit characteristics and a significant amount of home equity. At the same time, we will remain disciplined in our approach to managing capital and interest rate risk, positioning PMT to continue delivering attractive risk-adjusted returns to its shareholders.”
The following table presents the contributions of PMT’s segments, consisting of Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production, and Corporate:
Quarter ended December 31, 2023 | |||||||||||||||||||
Credit sensitive strategies |
Interest rate sensitive strategies |
Correspondent production |
Corporate | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Net investment income: | |||||||||||||||||||
Net loan servicing fees | $ |
- |
$ |
(77,830 |
) |
$ |
- |
|
$ |
- |
|
$ |
(77,830 |
) |
|||||
Net gains on loans acquired for sale |
|
- |
|
- |
|
|
15,380 |
|
|
- |
|
|
15,380 |
|
|||||
Net gains (losses) on investments and financings | |||||||||||||||||||
Mortgage-backed securities |
|
7,798 |
|
111,419 |
|
|
- |
|
|
- |
|
|
119,217 |
|
|||||
Loans at fair value | |||||||||||||||||||
Held by VIEs |
|
5,398 |
|
(5,990 |
) |
|
- |
|
|
- |
|
|
(592 |
) |
|||||
Distressed |
|
48 |
|
- |
|
|
- |
|
|
- |
|
|
48 |
|
|||||
CRT investments |
|
45,665 |
|
- |
|
|
- |
|
|
- |
|
|
45,665 |
|
|||||
|
58,909 |
|
105,429 |
|
|
- |
|
|
- |
|
|
164,338 |
|
||||||
Net interest expense: | |||||||||||||||||||
Interest income |
|
26,220 |
|
120,853 |
|
|
16,442 |
|
|
1,763 |
|
|
165,278 |
|
|||||
Interest expense |
|
24,174 |
|
142,911 |
|
|
17,795 |
|
|
643 |
|
|
185,523 |
|
|||||
|
2,046 |
|
(22,058 |
) |
|
(1,353 |
) |
|
1,120 |
|
|
(20,245 |
) |
||||||
Other |
|
66 |
|
- |
|
|
3,065 |
|
|
- |
|
|
3,131 |
|
|||||
|
61,021 |
|
5,541 |
|
|
17,092 |
|
|
1,120 |
|
|
84,774 |
|
||||||
Expenses: | |||||||||||||||||||
Loan fulfillment and servicing fees payable to PennyMac Financial Services, Inc. |
|
24 |
|
20,300 |
|
|
4,931 |
|
|
- |
|
|
25,255 |
|
|||||
Management fees payable to PennyMac Financial Services, Inc. |
|
- |
|
- |
|
|
- |
|
|
7,252 |
|
|
7,252 |
|
|||||
Other |
|
116 |
|
2,014 |
|
|
903 |
|
|
8,914 |
|
|
11,947 |
|
|||||
$ |
140 |
$ |
22,314 |
|
$ |
5,834 |
|
$ |
16,166 |
|
$ |
44,454 |
|
||||||
Pretax income (loss) | $ |
60,881 |
$ |
(16,773 |
) |
$ |
11,258 |
|
$ |
(15,046 |
) |
$ |
40,320 |
|
Credit Sensitive Strategies Segment
The Credit Sensitive Strategies segment primarily includes results from PMT’s organically-created GSE CRT investments, opportunistic investments in other GSE CRT, investments in non-agency subordinate bonds from private-label securitizations of PMT’s production and legacy investments. Pretax income for the segment was
Net gains on investments in the segment were
Net gains on PMT’s organically-created CRT investments for the quarter were
Net interest income for the segment totaled
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. Pretax loss for the segment was
The results in the Interest Rate Sensitive Strategies segment consist of net gains and losses on investments, net interest income and net loan servicing fees, as well as associated expenses.
Net gains on investments for the segment were
Losses from net loan servicing fees were
The following schedule details net loan servicing fees:
Quarter ended | ||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||
(in thousands) | ||||||||||||
From non-affiliates: | ||||||||||||
Contractually specified | $ |
162,916 |
|
$ |
166,809 |
|
$ |
164,189 |
|
|||
Other fees |
|
2,487 |
|
|
3,752 |
|
|
5,502 |
|
|||
Effect of MSRs: | ||||||||||||
Change in fair value | ||||||||||||
Realization of cashflows |
|
(87,729 |
) |
|
(102,213 |
) |
|
(98,974 |
) |
|||
Due to changes in valuation inputs used in valuation model |
|
(144,603 |
) |
|
263,139 |
|
|
43,935 |
|
|||
|
(232,332 |
) |
|
160,926 |
|
|
(55,039 |
) |
||||
Hedging results |
|
(11,191 |
) |
|
(50,689 |
) |
|
(117,228 |
) |
|||
|
(243,523 |
) |
|
110,237 |
|
|
(172,267 |
) |
||||
|
(78,120 |
) |
|
280,798 |
|
|
(2,576 |
) |
||||
From PFSI—MSR recapture income |
|
290 |
|
|
500 |
|
|
512 |
|
|||
Net loan servicing fees | $ |
(77,830 |
) |
$ |
281,298 |
|
$ |
(2,064 |
) |
Net interest expense for the segment was
Segment expenses were
Correspondent Production Segment
PMT acquires newly originated loans from correspondent sellers and typically sells or securitizes the loans, resulting in current-period income and additions to its investments in MSRs related to a portion of its production. PMT’s Correspondent Production segment generated pretax income of
Through its correspondent production activities, PMT acquired a total of
Segment revenues were
Segment expenses were
Corporate Segment
The Corporate segment includes interest income from cash and short-term investments, management fees, and corporate expenses.
Segment revenues were
Taxes
PMT recorded a tax benefit of
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 Thursday, February 1, 2024. 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
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: changes in interest rates; the Company’s ability to comply with various federal, state and local laws and regulations that govern its business; changes in the Company’s investment objectives or investment or operational strategies, including any new lines of business or new products and services that may subject it to additional risks; volatility in the Company’s industry, the debt or equity markets, 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; changes in general business, economic, market, employment and domestic and international political conditions, or in consumer confidence and spending habits from those expected; the degree and nature of the Company’s competition; changes in real estate values, housing prices and housing sales; 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 inherent difficulty in winning bids to acquire mortgage loans, and the Company’s success in doing so; the concentration of credit risks to which the Company is exposed; the Company’s dependence on its manager and servicer, potential conflicts of interest with such entities and their affiliates, and the performance of such entities; changes in personnel and lack of availability of qualified personnel at its manager, servicer or their affiliates; our ability to mitigate cybersecurity risks, cybersecurity incidents and technology disruptions; 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; our substantial amount of indebtedness; the performance, financial condition and liquidity of borrowers; our exposure to risks of loss and disruptions in operations resulting from adverse weather conditions, man-made or natural disasters, 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 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; the degree to which the Company’s hedging strategies may or may not protect it from interest rate volatility; the effect of the accuracy of or changes in the estimates the Company makes about uncertainties, contingencies and asset and liability valuations when measuring and reporting upon the Company’s financial condition and results of operations; 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; the Consumer Financial Protection Bureau and its issued and future rules and the enforcement thereof; changes in government support of homeownership; changes in government or government-sponsored home affordability programs; limitations imposed on the Company’s business and its ability to satisfy complex rules for it to qualify as a REIT for
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||
(in thousands except share amounts) | |||||||||||
ASSETS | |||||||||||
Cash | $ |
281,085 |
|
$ |
236,396 |
|
$ |
111,866 |
|
||
Short-term investments at fair value |
|
128,338 |
|
|
150,059 |
|
|
252,271 |
|
||
Mortgage-backed securities at fair value |
|
4,836,292 |
|
|
4,665,970 |
|
|
4,462,601 |
|
||
Loans acquired for sale at fair value |
|
669,018 |
|
|
1,025,730 |
|
|
1,821,933 |
|
||
Loans at fair value |
|
1,433,820 |
|
|
1,372,118 |
|
|
1,513,399 |
|
||
Derivative assets |
|
177,984 |
|
|
29,750 |
|
|
84,940 |
|
||
Deposits securing credit risk transfer arrangements |
|
1,209,498 |
|
|
1,237,294 |
|
|
1,325,294 |
|
||
Mortgage servicing rights at fair value |
|
3,919,107 |
|
|
4,108,661 |
|
|
4,012,737 |
|
||
Servicing advances |
|
206,151 |
|
|
93,614 |
|
|
197,972 |
|
||
Due from PennyMac Financial Services, Inc. |
|
56 |
|
|
2,252 |
|
|
3,560 |
|
||
Other |
|
252,538 |
|
|
301,492 |
|
|
134,991 |
|
||
Total assets | $ |
13,113,887 |
|
$ |
13,223,336 |
|
$ |
13,921,564 |
|
||
LIABILITIES | |||||||||||
Assets sold under agreements to repurchase | $ |
5,624,558 |
|
$ |
6,020,716 |
|
$ |
6,616,528 |
|
||
Mortgage loan participation and sale agreements |
|
- |
|
|
23,991 |
|
|
- |
|
||
Notes payable secured by credit risk transfer and mortgage servicing assets |
|
2,910,605 |
|
|
2,825,591 |
|
|
2,804,028 |
|
||
Unsecured senior notes |
|
600,458 |
|
|
599,754 |
|
|
546,254 |
|
||
Asset-backed financing of variable interest entities at fair value |
|
1,336,731 |
|
|
1,279,059 |
|
|
1,414,955 |
|
||
Interest-only security payable at fair value |
|
32,667 |
|
|
28,288 |
|
|
21,925 |
|
||
Derivative and credit risk transfer strip liabilities at fair value |
|
51,381 |
|
|
140,494 |
|
|
167,226 |
|
||
Accounts payable and accrued liabilities |
|
354,989 |
|
|
92,633 |
|
|
160,212 |
|
||
Due to PennyMac Financial Services, Inc. |
|
29,262 |
|
|
27,613 |
|
|
36,372 |
|
||
Income taxes payable |
|
190,003 |
|
|
202,967 |
|
|
151,778 |
|
||
Liability for losses under representations and warranties |
|
26,143 |
|
|
33,152 |
|
|
39,471 |
|
||
Total liabilities |
|
11,156,797 |
|
|
11,274,258 |
|
|
11,958,749 |
|
||
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 |
|
866 |
|
|
868 |
|
|
889 |
|
||
Additional paid-in capital |
|
1,923,437 |
|
|
1,923,130 |
|
|
1,947,266 |
|
||
Accumulated deficit |
|
(508,695 |
) |
|
(516,402 |
) |
|
(526,822 |
) |
||
Total shareholders' equity |
|
1,957,090 |
|
|
1,949,078 |
|
|
1,962,815 |
|
||
Total liabilities and shareholders' equity | $ |
13,113,887 |
|
$ |
13,223,336 |
|
$ |
13,921,564 |
|
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||
For the Quarterly Periods Ended | |||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||
(in thousands, except per share amounts) | |||||||||||
Investment Income | |||||||||||
Net loan servicing fees: | |||||||||||
From nonaffiliates | |||||||||||
Servicing fees | $ |
165,403 |
|
$ |
170,561 |
|
$ |
169,691 |
|
||
Change in fair value of mortgage servicing rights |
|
(232,332 |
) |
|
160,926 |
|
|
(55,039 |
) |
||
Hedging results |
|
(11,191 |
) |
|
(50,689 |
) |
|
(117,228 |
) |
||
|
(78,120 |
) |
|
280,798 |
|
|
(2,576 |
) |
|||
From PennyMac Financial Services, Inc. |
|
290 |
|
|
500 |
|
|
512 |
|
||
|
(77,830 |
) |
|
281,298 |
|
|
(2,064 |
) |
|||
Net gains (losses) on investments and financings |
|
164,338 |
|
|
(109,544 |
) |
|
54,294 |
|
||
Net gains on loans acquired for sale |
|
15,380 |
|
|
13,558 |
|
|
9,755 |
|
||
Loan origination fees |
|
3,004 |
|
|
3,226 |
|
|
9,668 |
|
||
Interest income |
|
165,278 |
|
|
158,926 |
|
|
132,375 |
|
||
Interest expense |
|
185,523 |
|
|
183,918 |
|
|
154,676 |
|
||
Net interest expense |
|
(20,245 |
) |
|
(24,992 |
) |
|
(22,301 |
) |
||
Other |
|
127 |
|
|
(117 |
) |
|
15 |
|
||
Net investment income |
|
84,774 |
|
|
163,429 |
|
|
49,367 |
|
||
Expenses | |||||||||||
Earned by PennyMac Financial Services, Inc.: | |||||||||||
Loan servicing fees |
|
20,324 |
|
|
20,257 |
|
|
20,245 |
|
||
Management fees |
|
7,252 |
|
|
7,175 |
|
|
7,307 |
|
||
Loan fulfillment fees |
|
4,931 |
|
|
5,531 |
|
|
12,184 |
|
||
Professional services |
|
2,084 |
|
|
2,133 |
|
|
1,898 |
|
||
Compensation |
|
2,327 |
|
|
1,961 |
|
|
1,587 |
|
||
Loan origination |
|
817 |
|
|
710 |
|
|
3,982 |
|
||
Loan collection and liquidation |
|
1,184 |
|
|
1,890 |
|
|
278 |
|
||
Safekeeping |
|
1,059 |
|
|
467 |
|
|
1,799 |
|
||
Other |
|
4,476 |
|
|
4,885 |
|
|
5,569 |
|
||
Total expenses |
|
44,454 |
|
|
45,009 |
|
|
54,849 |
|
||
Income (loss) before (benefit from) provision for income taxes |
|
40,320 |
|
|
118,420 |
|
|
(5,482 |
) |
||
(Benefit from) provision for income taxes |
|
(12,590 |
) |
|
56,998 |
|
|
(10,145 |
) |
||
Net income |
|
52,910 |
|
|
61,422 |
|
|
4,663 |
|
||
Dividends on preferred shares |
|
10,455 |
|
|
10,455 |
|
|
10,456 |
|
||
Net income (loss) attributable to common shareholders | $ |
42,455 |
|
$ |
50,967 |
|
$ |
(5,793 |
) |
||
Earnings (losses) per common share | |||||||||||
Basic | $ |
0.49 |
|
$ |
0.59 |
|
$ |
(0.07 |
) |
||
Diluted | $ |
0.44 |
|
$ |
0.51 |
|
$ |
(0.07 |
) |
||
Weighted average shares outstanding | |||||||||||
Basic |
|
86,659 |
|
|
86,760 |
|
|
89,096 |
|
||
Diluted |
|
110,987 |
|
|
111,088 |
|
|
89,096 |
|
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||
Year ended December 31, | |||||||||||
2023 |
2022 |
2021 |
|||||||||
(in thousands, except per share amounts) | |||||||||||
Net investment income | |||||||||||
Net loan servicing fees: | |||||||||||
From nonaffiliates | |||||||||||
Servicing fees | $ |
676,446 |
|
$ |
651,251 |
|
$ |
595,346 |
|
||
Change in fair value of mortgage servicing rights |
|
(296,847 |
) |
|
449,435 |
|
|
(337,186 |
) |
||
Hedging results |
|
(92,775 |
) |
|
(204,879 |
) |
|
(345,041 |
) |
||
|
286,824 |
|
|
895,807 |
|
|
(86,881 |
) |
|||
From PennyMac Financial Services, Inc. |
|
1,784 |
|
|
13,744 |
|
|
50,859 |
|
||
|
288,608 |
|
|
909,551 |
|
|
(36,022 |
) |
|||
Net gains (losses) on investments financings |
|
178,099 |
|
|
(658,787 |
) |
|
304,079 |
|
||
Net gains on loans acquired for sale |
|
39,857 |
|
|
25,692 |
|
|
87,273 |
|
||
Loan origination fees |
|
18,231 |
|
|
52,085 |
|
|
170,672 |
|
||
Interest income |
|
639,907 |
|
|
383,794 |
|
|
195,239 |
|
||
Interest expense |
|
735,968 |
|
|
410,420 |
|
|
304,737 |
|
||
Net interest expense |
|
(96,061 |
) |
|
(26,626 |
) |
|
(109,498 |
) |
||
Other |
|
286 |
|
|
1,856 |
|
|
3,793 |
|
||
Net investment income |
|
429,020 |
|
|
303,771 |
|
|
420,297 |
|
||
Expenses | |||||||||||
Earned by PennyMac Financial Services, Inc.: | |||||||||||
Loan servicing fees |
|
81,347 |
|
|
81,915 |
|
|
80,658 |
|
||
Management fees |
|
28,762 |
|
|
31,065 |
|
|
37,801 |
|
||
Loan fulfillment fees |
|
27,826 |
|
|
67,991 |
|
|
178,927 |
|
||
Professional services |
|
7,621 |
|
|
9,569 |
|
|
11,148 |
|
||
Compensation |
|
7,106 |
|
|
5,941 |
|
|
4,000 |
|
||
Loan origination |
|
4,602 |
|
|
12,036 |
|
|
28,792 |
|
||
Loan collection and liquidation |
|
4,562 |
|
|
5,396 |
|
|
11,279 |
|
||
Safekeeping |
|
3,766 |
|
|
8,201 |
|
|
9,087 |
|
||
Other |
|
19,033 |
|
|
18,570 |
|
|
13,944 |
|
||
Total expenses |
|
184,625 |
|
|
240,684 |
|
|
375,636 |
|
||
Income before provision for (benefit from) income taxes |
|
244,395 |
|
|
63,087 |
|
|
44,661 |
|
||
Provision for (benefit from) income taxes |
|
44,741 |
|
|
136,374 |
|
|
(12,193 |
) |
||
Net income (loss) |
|
199,654 |
|
|
(73,287 |
) |
|
56,854 |
|
||
Dividends on preferred shares |
|
41,819 |
|
|
41,819 |
|
|
30,891 |
|
||
Net income (loss) attributable to common shareholders | $ |
157,835 |
|
$ |
(115,106 |
) |
$ |
25,963 |
|
||
Earnings (loss) per common share | |||||||||||
Basic | $ |
1.80 |
|
$ |
(1.26 |
) |
$ |
0.26 |
|
||
Diluted | $ |
1.63 |
|
$ |
(1.26 |
) |
$ |
0.26 |
|
||
Weighted average common shares outstanding | |||||||||||
Basic |
|
87,372 |
|
|
91,434 |
|
|
97,402 |
|
||
Diluted |
|
111,700 |
|
|
91,434 |
|
|
97,402 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201225235/en/
Media
Kristyn Clark
kristyn.clark@pennymac.com
805.395.9943
Investors
Kevin Chamberlain
Isaac Garden
investorrelations@pennymac.com
818.224.7028
Source: PennyMac Mortgage Investment Trust
FAQ
What is the net income reported by PennyMac Mortgage Investment Trust for Q4 2023?
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