PennyMac Mortgage Investment Trust (PMT) reported its financial results for the quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the quarter, PMT recorded net income of $41.4 million, a decrease from $61.4 million in the same quarter of 2023. Net income attributable to common shareholders also fell to $30.9 million from $51.0 million year-over-year. Earnings per share decreased to $0.36 from $0.59. The decline in profitability was attributed to a significant drop in net investment income, which fell to $80.9 million from $163.4 million in the prior year. This was primarily due to lower net loan servicing fees, which turned negative at $(85.1 million) compared to $281.3 million in Q3 2023.
In terms of revenue, PMT reported net gains on investments and financings of $146.7 million for the quarter, a substantial recovery from a loss of $(109.5 million) in the same quarter of 2023. The company also saw net gains on loans acquired for sale increase to $20.1 million from $13.6 million year-over-year. However, net investment income for the nine months ended September 30, 2024, was $226.3 million, down from $344.2 million in the same period of 2023.
Total assets as of September 30, 2024, were $13.1 billion, a slight decrease from $13.2 billion at the end of 2023. Cash increased to $344.4 million from $281.1 million, while total shareholders' equity decreased to $1.9 billion from $2.0 billion. The company’s unsecured senior notes rose to $814.9 million from $600.5 million, reflecting increased borrowing to support operations.
Strategically, PMT has focused on enhancing its investment portfolio, with significant activity in correspondent loan purchases, which totaled $26.5 billion for the quarter, up from $21.8 billion in Q3 2023. The company also reported a notable increase in loan fulfillment fees, which rose to $11.5 million from $5.5 million year-over-year.
The company continues to navigate a challenging mortgage market, with the origination market size projected to increase in the coming years due to declining interest rates. However, potential economic slowdowns and home price depreciation may lead to increased mortgage delinquencies, impacting credit-sensitive assets. PMT remains committed to optimizing its capital allocation and exploring investment opportunities in the private label securitization market.
About PennyMac Mortgage Investment Trust
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