PennyMac Mortgage Investment Trust(PMT) - 2024 Q1 - Quarterly Results

Financial Performance - Net income attributable to common shareholders for Q1 2024 was $37.2 million, or $0.39 per diluted share, on net investment income of $74.2 million[2] - Net income for the quarter ended March 31, 2024, was $47.6 million, compared to $52.9 million for the previous quarter and $60.7 million for the same quarter last year[37] - Earnings per common share for the quarter were $0.43 (basic) and $0.39 (diluted), down from $0.49 (basic) and $0.44 (diluted) in the previous quarter[37] - The company reported net gains on investments and financings of $39.8 million for the quarter, compared to $164.3 million in the previous quarter[37] - Interest income for the quarter was $143.6 million, down from $165.3 million in the previous quarter[37] Asset and Liability Management - Total assets decreased to $12,293.7 million as of March 31, 2024, down from $13,113.9 million at December 31, 2023, and $15,357.2 million at March 31, 2023[35] - Total liabilities decreased to $10,334.8 million as of March 31, 2024, from $11,156.8 million at December 31, 2023[35] - The company’s accumulated deficit improved slightly to $(506.4) million from $(508.7) million at December 31, 2023[35] - The company’s cash reserves decreased to $126.6 million from $281.1 million at December 31, 2023[35] Investment and Production Activities - Conventional correspondent loan production volumes totaled $1.8 billion in unpaid principal balance (UPB), down 29% from the prior quarter and 73% from Q1 2023[4] - PMT's total correspondent acquisitions amounted to $18.1 billion in UPB, down 23% from the prior quarter[21] - PMT issued $247 million of new, 3-year CRT term notes, refinancing $213 million of notes due to mature in 2025[5] - PMT acquired two bulk MSR portfolios totaling $2.3 billion in UPB for $29 million[6] Segment Performance - The Credit Sensitive Strategies segment generated pretax income of $60.8 million on net investment income of $60.9 million[8] - The Interest Rate Sensitive Strategies segment reported a pretax loss of $27.2 million on net investment losses of $4.8 million[13] - Correspondent Production segment generated pretax income of $11.7 million, up from $11.3 million in the prior quarter[20] Market and Fair Value Adjustments - Book value per common share decreased slightly to $16.11 at March 31, 2024, from $16.13 at December 31, 2023[4] - Mortgage-backed securities at fair value decreased to $3,949.7 million from $4,836.3 million at December 31, 2023[35] - Net loan servicing fees from nonaffiliates were $163.4 million for the quarter, slightly down from $165.4 million in the previous quarter[37] - PMT recorded a tax benefit of $15.2 million, primarily due to fair value declines on assets held in PMT's taxable subsidiary[26]