PennyMac Mortgage Investment Trust · Q2 2021 earnings

Briefing

PennyMac reported net income attributable to common shareholders of $31.9 million for the second quarter of 2021.

PennyMac Mortgage Investment Trust reported net income attributable to common shareholders of $31.9 million, or $0.32 per common share on a diluted basis, for the second quarter of 2021, on net investment income of $121.6 million.

• Net income attributable to common shareholders was $31.9 million, down from $65.4 million in the prior quarter.
• Correspondent segment results and performance of government-sponsored enterprise (GSE) credit risk transfer (CRT) investments were strong.
• Mortgage servicing rights (MSR) fair value declines were partially offset by fair value gains on interest rate hedges and Agency mortgage-backed securities (MBS).
• Book value per common share decreased to $20.77 at June 30, 2021 from $20.90 at March 31, 2021.

Headline financials

Revenue & EPS history

While the recent decline in interest rates combined with FHFA’s elimination of the Adverse Market Refinance Fee is expected to have a mark-to-market impact on PMT’s MSR value, these factors have meaningfully increased the population of loans that would benefit from a refinance. The continuation of this vibrant origination market combined with PMT’s high-quality interest rate sensitive and credit investments support PMT’s ability to continue delivering strong risk-adjusted returns to its shareholders.