PennyMac Mortgage Investment Trust Reports Fourth Quarter and Full-Year 2025 Results

WESTLAKE VILLAGE, Calif.--( BUSINESS WIRE)--PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income attributable to common shareholders of $41.9 million, or $0.48 per common share for the fourth quarter of 2025, on net investment income of $93.6 million. PMT previously announced a cash dividend for the fourth quarter of 2025 of $0.40 per common share of beneficial interest, which was declared on December 10, 2025, and will be paid on January 23, 2026, to common shareholders of record as of December 26, 2025.

Fourth Quarter 2025 Highlights

Financial results:

Other investment highlights:

Other highlights:

Notable activity after quarter end:

Full-Year 2025 Highlights

Financial results:

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

“PMT delivered strong results in the fourth quarter, generating earnings per share of $0.48, above the dividend level for an annualized return on common equity of 13%,” said Chairman and CEO David Spector. “These results were primarily driven by solid contributions from our credit sensitive and interest rate sensitive strategies, including a tax benefit, demonstrating the earnings power of our investment portfolio in the current market environment. We took significant steps to build future earnings potential, accelerating our organic investment activity with the execution of eight private label securitizations totaling $2.8 billion in UPB, retaining more than $180 million in new subordinate bond investments with attractive return profiles. Additionally, we further strengthened our balance sheet and liquidity position through the opportunistic issuance of $150 million in exchangeable senior notes. These actions highlight our ability to actively manage capital and consistently create high-quality investments at scale.”

Mr. Spector continued, “Fundamentally, PMT’s success is anchored by its synergistic relationship with PFSI. Our ability to leverage PFSI’s multi-channel production platform and best-in-class servicing capabilities is unique in the industry and allows us to organically create a steady flow of investments with strong risk adjusted returns. As we look ahead, I am confident that this comprehensive platform will drive our ability to continue generating earnings that support our dividend and drive long-term value for our shareholders.”

The following table presents the contributions of PMT’s segments to pretax income:

—

31,353

—

31,353

—

31,353

8,659

(3,157

)

—

5,502

—

5,502

16,178

—

16,178

—

16,178

24,837

28,196

—

53,033

—

53,033

—

7,187

—

7,187

—

36,766

—

36,766

—

36,766

17,546

189,031

39,429

246,006

2,246

248,252

18,887

201,308

33,134

253,329

1,385

254,714

(1,341

)

(12,277

)

6,295

(7,323

)

861

(6,462

)

106

—

2,933

3,039

—

3,039

23,602

52,685

16,415

92,702

861

93,563

20,045

—

20,046

—

20,046

—

6,856

—

6,538

—

6,538

—

10,659

3,163

13,822

—

3,263

2,411

—

2,428

—

2,428

—

1,018

1,098

—

1,098

—

132

—

132

739

840

2,427

3,267

24,213

17,432

41,741

15,709

57,450

23,506

28,472

(1,017

)

50,961

(14,848

)

36,113

Credit Sensitive Strategies Segment

The Credit Sensitive Strategies segment primarily includes results from PMT’s organically-created GSE CRT investments and investments in non-Agency subordinate bonds from private-label securitizations of PMT’s production. Pretax income for the segment was $23.5 million on net investment income of $23.6 million, compared to pretax income of $18.8 million on net investment income of $18.8 million in the prior quarter.

Net gains on investments in the segment were $24.8 million, compared to $17.6 million in the prior quarter. These net gains included $16.2 million of gains from PMT’s organically-created GSE CRT investments and $8.7 million of gains from non-Agency subordinate bonds from PMT’s production.

Net gains on PMT’s organically-created CRT investments for the quarter were $16.2 million, compared to $13.7 million in the prior quarter. These net gains included $3.6 million in valuation-related gains, which reflected the impact of credit spread tightening in the fourth quarter, up from $1.5 million in the prior quarter. Net gains on PMT’s organically-created CRT investments also included $13.3 million in realized gains and carry, compared to $13.5 million in the prior quarter. Realized losses during the quarter were $0.7 million, down from $1.3 million in the prior quarter.

Net interest expense for the segment totaled $1.3 million, compared to $1.3 million of net interest income in the prior quarter. Interest income totaled $17.5 million, down from $20.9 million in the prior quarter. Interest expense totaled $18.9 million, down from $19.6 million in the prior quarter.

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. The segment includes investments that typically have offsetting fair value exposures to changes in interest rates. For example, in a period with decreasing interest rates, MSRs are expected to decrease in fair value, whereas Agency pass-through and non-Agency senior MBS are expected to increase in fair value. The results in the Interest Rate Sensitive Strategies segment consist of net gains and losses on investments, net loan servicing fees and net interest income, as well as associated expenses.

Pretax income for the segment was $28.5 million on net investment income of $52.7 million, compared to pretax income of $32.3 million on net investment income of $56.5 million in the prior quarter.

Net loan servicing fees were $36.8 million, compared to $15.4 million in the prior quarter. Net loan servicing fees included contractually specified servicing fees of $151.3 million and $4.0 million in other fees, reduced by $103.9 million in realization of MSR cash flows, which was up from $89.4 million in the prior quarter due to higher prepayment activity. Net loan servicing fees also included $26.2 million in fair value gains on MSRs, $45.0 million in hedging losses, and $4.1 million of MSR recapture income.

Net gains on investments for the segment were $28.2 million, which primarily consisted of gains on MBS. PMT’s hedging activities are intended to manage its net exposure across all interest rate sensitive strategies, which include MSRs, MBS and related tax effects.

The following schedule details net loan servicing fees:

151,320

151,395

159,553

3,958

4,428

4,884

(103,859

)

(89,404

)

(90,612

)

26,247

(26,975

)

183,879

(77,612

)

(116,379

)

93,267

(44,990

)

(27,360

)

(51,209

)

(122,602

)

(143,739

)

42,058

32,676

12,084

206,495

4,090

3,345

926

36,766

15,429

207,421

Net interest expense for the segment was $12.3 million versus $5.4 million in the prior quarter. Interest income totaled $189.0 million, up from $173.8 million in the prior quarter primarily due to a higher amount of retained investments from private label securitizations. Interest expense totaled $201.3 million, up from $179.2 million in the prior quarter, due to higher financing balances.

Segment expenses were $24.2 million, unchanged from the prior quarter.

Correspondent Production Segment

Correspondent production volumes are initially acquired by PFSI. PMT retains the right to purchase up to 100 percent of non-government correspondent loan production. After purchasing certain conventional conforming and non-Agency eligible loans from PFSI, PMT sells or securitizes those loans, resulting in current period income. PMT’s Correspondent Production segment generated a pretax loss of $1.0 million in the fourth quarter, compared to $9.2 million of pretax income in the prior quarter.

PMT purchased a total of $3.7 billion in UPB of conventional conforming and non-Agency eligible loans through its fulfillment agreement that PFSI acquired from correspondent sellers, up 10 percent from the prior quarter. PMT acquired 17 percent of total conventional conforming correspondent production and 100 percent of non-Agency eligible correspondent production in the fourth quarter. PMT is expected to acquire all non-Agency eligible correspondent production and 15 to 25 percent of total conventional conforming correspondent production in the first quarter of 2026. Interest rate lock commitments on conventional conforming and non-Agency eligible loans for PMT’s account totaled $4.1 billion, down 7 percent from the prior quarter. Additionally, PMT acquired $1.8 billion in UPB of loans from PFSI’s production for inclusion in private label securitizations, up from $1.3 billion in the prior quarter.

Segment revenues were $16.4 million and included net gains on loans acquired for sale of $7.2 million, net interest income of $6.3 million, and other income of $2.9 million, which primarily consists of volume-based origination fees. Net gains on loans acquired for sale decreased $7.7 million from the prior quarter, due to the impact of spread widening on jumbo loans held for sale during aggregation and lower overall channel margins. Interest income was $39.4 million, up from $33.1 million in the prior quarter, and interest expense was $33.1 million, up from $28.2 million in the prior quarter.

Segment expenses were $17.4 million, up from $13.7 million in the prior quarter due to increased private label securitization activity. The weighted average fulfillment fee rate in the fourth quarter was 18 basis points, essentially unchanged from the prior quarter.

Corporate

Corporate includes interest income from cash and short-term investments, management fees, and corporate expenses.

Corporate revenues were $0.9 million, unchanged from the prior quarter. Corporate expenses were $15.7 million, up slightly from $14.3 million in the prior quarter, and consisted of management fees of $6.9 million and $8.9 million of other corporate expenses.

Taxes

PMT recorded a tax benefit of $16.2 million, driven primarily by net fair value declines on MSR and interest rate hedges held in its taxable REIT subsidiary.

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, January 29, 2026. 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; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; t changes in homeownership costs and affordability; compliance with changing federal, state and local laws and regulations that govern its business; 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; the degree and nature of the Company’s competition; 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 concentration of credit risks to which the Company is exposed; the Company’s dependence on and potential conflicts with its manager, servicer and their affiliates; the Company’s ability to mitigate cybersecurity risks, cybersecurity incidents and technology disruptions; the development of artificial intelligence; 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; the Company’s engagement in private loan securitizations; the Company’s substantial amount of indebtedness; the performance, financial condition and liquidity of borrowers; the Company’s exposure to risks of loss from severe weather events, man-made or other natural conditions, including 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 or other investments 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; risks associated with the discontinuation of LIBOR; the degree to which the Company’s hedging strategies may or may not protect it from interest rate volatility; the accuracy or changes in the estimates the Company makes about uncertainties, contingencies and asset and liability valuations; 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; federal and state mortgage regulations and enforcement; changes in government support of homeownership and affordability programs; changes in the Company’s investment objectives or investment or operational strategies; limitations imposed on the Company’s business and its ability to satisfy complex rules for it to qualify as a REIT for U.S. federal income tax purposes and qualify for an exclusion from the Investment Company Act of 1940 and the ability of certain of the Company’s subsidiaries to qualify as REITs or as taxable REIT subsidiaries for U.S. federal income tax purposes; changes in governmental regulations, accounting treatment, tax rates and similar matters; the Company’s ability to make distributions to its shareholders in the future; the Company’s failure to deal appropriately with issues that may give rise to reputational risk; and the Company’s organizational structure and certain requirements in its charter documents. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

271,970

263,488

337,694

190,518

181,043

103,198

4,452,859

4,609,164

4,063,706

2,699,398

2,421,033

2,116,318

8,532,644

5,983,197

2,193,575

55,943

58,442

56,840

1,009,334

1,033,008

1,110,708

3,644,702

3,668,755

3,867,394

96,830

61,599

105,037

19,100

18,171

16,015

373,584

227,771

438,221

21,346,882

18,525,671

14,408,706

8,018,601

7,708,183

6,500,938

—

11,593

2,258,128

2,248,609

2,929,790

1,028,300

876,510

605,860

7,789,303

5,439,582

2,040,375

37,650

36,558

34,222

9,189

12,186

7,351

168,498

135,585

139,124

17,122

40,165

30,206

127,476

143,832

163,861

5,284

5,152

6,886

19,459,551

16,646,362

12,470,206

541,482

870

869

1,927,804

1,926,552

1,925,067

(582,825

)

(589,595

)

(528,918

)

1,887,331

1,879,309

1,938,500

21,346,882

18,525,671

14,408,706

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

53,033

64,087

(105,655

)

7,187

14,857

26,387

2,893

3,095

3,986

155,278

155,823

164,437

(77,612

)

(116,379

)

93,267

(44,990

)

(27,360

)

(51,209

)

32,676

12,084

206,495

4,090

3,345

926

36,766

15,429

207,421

248,252

230,088

163,135

254,714

228,394

187,120

(6,462

)

1,694

(23,985

)

146

(227

)

93,563

99,232

107,927

20,046

21,012

20,486

6,856

6,912

7,149

6,538

6,162

6,356

13,822

8,608

6,041

3,263

2,817

997

2,428

1,503

2,537

1,098

1,194

1,336

132

794

914

3,267

3,232

6,987

57,450

52,234

52,803

36,113

46,998

55,124

(16,249

)

(11,298

)

8,589

52,362

58,296

46,535

10,455

41,907

47,841

36,080

0.48

0.55

0.41

0.48

0.55

0.41

87,017

86,861

87,017

86,861

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

2025

2024

2023

213,113

61,050

178,099

47,030

65,055

32,695

5,164

8,069

7,162

52,194

73,124

39,857

12,525

15,085

18,231

608,025

644,642

659,438

17,430

14,722

17,008

625,455

659,364

676,446

(413,709

)

(170,409

)

(296,847

)

(172,931

)

(226,608

)

(92,775

)

38,815

262,347

286,824

10,117

2,193

1,784

48,932

264,540

288,608

850,912

635,263

639,907

870,394

714,659

735,968

(19,482

)

(79,396

)

(96,061

)

(64

)

(437

)

(186

)

243

228

472

307,461

334,194

429,020

84,432

83,252

81,347

27,649

28,623

28,762

23,804

26,291

27,826

37,774

12,779

7,621

11,886

5,608

7,106

8,285

6,834

4,562

4,630

4,403

3,766

2,278

3,328

4,602

12,905

20,428

19,033

213,643

191,546

184,625

93,818

142,648

244,395

(34,054

)

(18,336

)

44,741

127,872

160,984

199,654

41,819

86,053

119,165

157,835

0.99

1.37

1.80

0.99

1.37

1.63

86,988

86,815

87,372

86,988

86,815

111,700