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Jun 30, 2024
PennyMac Q2 2024 Earnings Report
Net income of $15.0 million, or $0.17 per common share on a diluted basis, was reported on net investment income of $71.2 million.
Key Takeaways
PennyMac Mortgage Investment Trust reported net income attributable to common shareholders of $15.0 million, or $0.17 per common share on a diluted basis, for Q2 2024. The results reflect higher levels of income excluding market-driven value changes, partially offset by net fair value declines.
Net income attributable to common shareholders was $15.0 million, with an annualized return on average common equity of 4%.
Book value per common share decreased slightly to $15.89 at June 30, 2024.
Conventional correspondent loan production volumes for PMT's account totaled $2.2 billion in unpaid principal balance (UPB), up 26 percent from the prior quarter.
Creation of $41 million in new mortgage servicing rights (MSRs).
Forward Guidance
PMT expects to deploy more capital to conventional correspondent production in the third quarter, driving organic growth of MSR investments. The company will continue to monitor the markets for opportunities to deploy capital into bulk MSR packages and other investments at appropriate returns.
Positive Outlook
- Expect to deploy more capital to conventional correspondent production in Q3.
- Driving organic growth of MSR investments.
- Continue to monitor the markets for opportunities to deploy capital into bulk MSR packages.
- Continue to monitor the markets for other investments at appropriate returns.
- Diversified portfolio of mortgage-related investments with strong underlying fundamentals.
Challenges Ahead
- Continued interest rate volatility.
- Net fair value declines, predominantly in the interest rate sensitive strategies.
- Lower margins in correspondent production.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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