PMT · PennyMac Mortgage Investment Tr

PennyMac Mortgage Investment Trust (PMT) reported first quarter 2026 net income attributable to common shareholders of $14.2 million, or $0.16 per diluted share, on net investment income of $82.1 million. The results fell short of the consensus estimate of $0.40 per share, reflecting headwinds in interest rate sensitive strategies. Book value per share declined to $14.98 from $15.25 at December 31, 2025, a decrease of 1.8%.

The credit sensitive strategies segment contributed $16.5 million in pretax income, driven by $13.9 million in gains from organically-created GSE CRT investments and $2.2 million from non-Agency subordinate bonds. The interest rate sensitive strategies segment saw pretax income fall to $8.0 million from $28.5 million in the prior quarter, primarily due to increased MSR runoff related to higher coupon loans, partially offset by improved results in aggregation and securitization. Net loan servicing fees were $83.6 million, up from $36.8 million in Q4 2025, but net losses on investments were $39.2 million, including $33.4 million in losses on MBS.

The aggregation and securitization segment rebounded to $16.4 million pretax income from a $1.0 million loss in the prior quarter, driven by higher net gains on loans acquired for sale and improved net interest income. PMT acquired $2.8 billion in UPB of conventional conforming and nonconforming loans from correspondents and $1.5 billion in UPB from PFSI's production. The company completed eight securitizations totaling $2.8 billion in UPB, generating $189 million in net new investments in non-Agency subordinate bonds and $40 million in new MSRs.

Management highlighted the continued success of the private label securitization program, with Chairman and CEO David Spector stating, 'We remain on pace to complete approximately 30 securitizations in 2026, which we expect will build a substantial foundation of investments with attractive returns to support PMT’s future earnings.' The company also redeemed $345 million of exchangeable senior notes due March 2026. After quarter end, PMT completed two additional securitizations and priced a third, totaling $1.1 billion in UPB with $70 million of expected retained investments.