PennyMac Mortgage Investment Trust(US:PMT)2026-01-29 21:31Financial Performance - Net income attributable to common shareholders for Q4 2025 was $41.9 million, or $0.48 per share, with net investment income of $93.6 million[2]. - Full-year 2025 net income attributable to common shareholders was $86.1 million, down from $119.2 million in 2024, with diluted earnings per share of $0.99[7]. - For the quarter ended December 31, 2025, net income attributable to common shareholders was $41,907,000, a decrease of 12.8% from $47,841,000 in the previous quarter[38]. - Basic earnings per common share for the quarter ended December 31, 2025, was $0.48, down from $0.55 in the previous quarter, a decrease of 12.7%[38]. - The company reported a net interest expense of $19,482,000 for the year ended December 31, 2025, compared to a net interest expense of $79,396,000 in 2024, showing improvement[40]. Investment and Loans - Loans acquired totaled $5.5 billion in unpaid principal balance (UPB), an 18% increase from the prior quarter[4]. - PMT acquired $3.7 billion in UPB of conventional conforming and non-Agency eligible loans, a 10% increase from the prior quarter[24]. - PMT generated approximately $528 million of net new investments in non-Agency senior and subordinate bonds during the year[7]. - Loan origination fees for the year ended December 31, 2025, were $12,525,000, down from $15,085,000 in 2024, a decrease of 16.9%[40]. Revenue and Expenses - Interest income for the Interest Rate Sensitive Strategies segment totaled $189.0 million, up from $173.8 million in the prior quarter[20]. - Interest income increased to $39.4 million from $33.1 million in the prior quarter, while interest expense rose to $33.1 million from $28.2 million[25]. - Total expenses for the year ended December 31, 2025, were $213,643,000, an increase from $191,546,000 in 2024, representing an increase of 11.5%[40]. - Segment revenues were $16.4 million, including 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[25]. - Segment expenses were $17.4 million, up from $13.7 million in the prior quarter, primarily due to increased private label securitization activity[26]. - Corporate revenues remained unchanged at $0.9 million, while corporate expenses increased to $15.7 million from $14.3 million in the prior quarter[27]. Assets and Liabilities - Total assets increased to $21.35 billion from $18.53 billion in the prior quarter[36]. - Loans held for investment at fair value rose to $8.53 billion from $5.98 billion in the prior quarter[36]. - Total liabilities increased to $19.46 billion from $16.65 billion in the prior quarter[36]. - Total shareholders' equity was $1.89 billion, slightly up from $1.88 billion in the prior quarter[36]. Tax and Fair Value - PMT recorded a tax benefit of $16.2 million, mainly due to net fair value declines on MSR and interest rate hedges[28]. - The company experienced a net loss of $77,612,000 in the change in fair value of mortgage servicing rights for the quarter ended December 31, 2025[38]. Shareholder Information - Book value per common share increased to $15.25 at December 31, 2025, up from $15.16 at September 30, 2025[4]. - The weighted average shares outstanding for the quarter remained stable at 87,017,000, consistent with the previous quarter[38]. - The weighted average fulfillment fee rate in the fourth quarter was 18 basis points, unchanged from the prior quarter[26]. Gains and Losses - The company reported net gains on investments and financings of $213,113,000 for the year 2025, significantly higher than $61,050,000 in 2024[40].