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Dec 31, 2021
PennyMac Q4 2021 Earnings Report
PennyMac reported a net loss for Q4 2021, impacted by interest rate volatility and competition in the correspondent channel.
Key Takeaways
PennyMac Mortgage Investment Trust reported a net loss attributable to common shareholders of $27.3 million, or $(0.28) per common share on a diluted basis for the fourth quarter of 2021, on net investment income of $49.5 million. The results were impacted by fair value changes in interest rate sensitive strategies and elevated competition in the conventional correspondent channel.
Net loss attributable to common shareholders was $27.3 million.
Conventional correspondent loan production volumes decreased 55% from 4Q20.
Book value per common share decreased to $19.05 at December 31, 2021.
Investment activity was driven by correspondent production volumes.
Revenue by Segment
Forward Guidance
Company expects headwinds for the return potential of PMT’s strategies. However, there are significant investment opportunities they are pursuing in the form of private-label securitization and the potential to resume new CRT investments and they are encouraged by their continued active discussions with the GSEs and FHFA on that front.
Positive Outlook
- Significant investment opportunities in private-label securitization
- Potential to resume new CRT investments
- Active discussions with the GSEs and FHFA
- Optimistic about PMT’s ability to execute on opportunities
- Ability to deliver attractive risk-adjusted returns to shareholders over the long-term
Challenges Ahead
- Headwinds for the return potential of PMT’s strategies
- Interest rate volatility
- Flattening of the yield curve
- Elevated competition in the conventional correspondent channel
Historical Earnings Impact
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Avg. Return Before/After Earnings
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