Financial Data and Key Metrics Changes - Financial conditions improved during Q4 2025, supported by two Federal Reserve rate cuts and strong economic growth, leading to an 8% economic return for the quarter and a 3.7% increase in book value per common share to $8.72 [3][5][19] - The company's portfolio at year-end was valued at $6.3 billion, with $5.4 billion in Agency mortgages and $900 million in Agency CMBS [6][18] Business Line Data and Key Metrics Changes - The Agency RMBS portfolio increased by 11% quarter over quarter, focusing on 5% and 5.5% coupons, while the allocation in 6% and 6.5% coupons declined due to paydowns [14][15] - Agency CMBS risk premiums remained largely unchanged, with no new purchases made during the quarter, but the sector continues to provide benefits through prepayment protection and fixed maturities [16][17] Market Data and Key Metrics Changes - The 10-year Treasury yield ended the year at 4.17%, with a steepening yield curve benefiting longer-term investments [8][9] - Agency mortgages delivered strong performance in 2025, driven by reduced interest rate volatility and increased demand from GSEs [11][12] Company Strategy and Development Direction - The company remains positive on Agency mortgages, viewing conditions as favorable due to lower interest rate volatility and expectations for broadening demand [6][21] - The strategy includes selectively accessing the ATM for capital raising when conditions are favorable, with a focus on maintaining a robust capital structure [36][40] Management's Comments on Operating Environment and Future Outlook - Management noted that while near-term risks are balanced, the current environment of low volatility in interest rates and spreads is expected to provide a positive backdrop for agency mortgages over the long term [21] - The conclusion of quantitative tightening and the announcement of T-bill purchases by the Fed have solidified funding markets, serving as a tailwind for the company's strategy [20][21] Other Important Information - The liquidity position remains strong, with $453 million in unrestricted cash and unencumbered assets [6] - The company modestly increased leverage to 7 times, consistent with the constructive investment environment [5][6] Q&A Session Summary Question: How is the company approaching leverage levels post the tightening? - The company increased leverage slightly in Q4, reflecting a positive environment, and remains comfortable with current levels despite tighter spreads [25] Question: Have there been any surprises in prepayment reports for higher coupons? - No significant surprises were noted; prepayment speeds increased in higher coupons but were less impacted due to prepayment protection [27] Question: Is the decision on the ATM solely based on stock price? - The decision is based on a combination of price to book and the availability of accretive investment opportunities [40] Question: What would trigger a tighter spread range for MBS? - An increase in the GSEs' caps or a notable increase in the pace of purchases could signal a tighter spread range [46] Question: How should investors think about book value sensitivity to spread changes? - The magnitude of change in book value to spread changes remains consistent, but expectations for further spread tightening are reduced [50]

8 Q4 2025 Earnings Supplemental Materials January 30, 2025 1 Disclaimers Forward-Looking Information This presentation contains forward-looking statements and information. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," " ...

Fourth Quarter 2025 Earnings Call Invesco Mortgage Capital Inc. January 30, 2026 John Anzalone Kevin Collins Mark Gregson David Lyle Brian Norris Chief Executive Officer President Chief Financial Officer Chief Operating Officer Chief Investment Officer Cautionary Notice Regarding Forward-Looking Statements This presentation and comments made in the associated conference call, may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as ...

Core Insights - The company reported strong earnings momentum and growth in private label securitizations, completing 19 securitizations totaling $6.7 billion in unpaid principal balance (UPB) in 2025, significantly up from two securitizations in 2024 [1][4][7] - Net income to common shareholders for the fourth quarter was $42 million, representing a 13% annualized return on common equity, with diluted earnings per share at $0.48, surpassing the quarterly dividend of $0.40 [3][6] - The company anticipates completing approximately 30 securitizations in 2026, targeting returns on equity for retained investments in the low- to mid-teens [8][19] Financial Performance - The company generated $21 million of net income across its strategies, excluding market-driven value changes, a decline from the previous quarter due to lower contributions from the correspondent segment and increased runoff from mortgage servicing rights (MSRs) [2][6] - The book value per share increased to $15.25 at year-end from $15.16 as of September 30 [3] - The MSR asset was valued at $3.6 billion at year-end, slightly down from the prior quarter, with stable delinquency rates in the conventional MSR portfolio [13] Operational Highlights - The correspondent production segment faced challenges, posting a pre-tax loss of $1 million due to spread widening on jumbo loans and increased competition [5][14] - The company raised $150 million of unsecured financing and plans to retire $345 million of 2026 notes, with total debt-to-equity increasing to approximately 10:1 [17][18] - The company rotated capital to optimize returns, purchasing $876 million of Agency floating-rate MBS and selling $195 million of GSE-issued credit risk transfer investments [9][10] Market Positioning - PMT established itself as a top-three issuer of prime non-Agency MBS in 2025, with retained investments from securitizations growing to $528 million compared to $54 million in 2024 [1][7] - The company expects to maintain a significant portion of its equity in seasoned investments, with 60% allocated to MSRs and GSE credit risk transfer investments [10][11] - Credit-sensitive strategies contributed $24 million to pre-tax income in the quarter, generating a 27% annualized return on equity [11][12]

Financial Data and Key Metrics Changes - PennyMac Mortgage Investment Trust (PMT) reported a net income of $42 million for Q4 2025, translating to a 13% annualized return on common equity, with diluted earnings per share at $0.48, exceeding the quarterly dividend of $0.40 per share [2][10] - Book value per share increased to $15.25 at year-end from $15.16 on September 30 [2] - The total debt-to-equity ratio rose to approximately 10-to-1 from 9-to-1 at the end of Q3 2025, reflecting growth in non-recourse debt associated with securitizations [14] Business Line Data and Key Metrics Changes - PMT completed 19 securitizations in 2025, totaling $6.7 billion in UPB, a significant increase from 2 securitizations in 2024 [3] - Retained investments from these securitizations grew to $528 million, up nearly tenfold from $54 million in 2024 [3] - In Q4 2025, PMT completed 8 securitizations totaling $2.8 billion in UPB and retained $184 million of new investments [7] Market Data and Key Metrics Changes - Approximately 60% of PMT's shareholders' equity is deployed to seasoned investments in mortgage servicing rights (MSRs) and GSE credit risk transfer investments [6] - The weighted average coupon of the loans underlying the MSR investment is 3.9%, providing stable cash flows [6] - The UPB of loans acquired from PFSI's correspondent production totaled $3.7 billion in Q4 2025, with PMT purchasing 17% of total conventional conforming correspondent production [12] Company Strategy and Development Direction - PMT aims to optimize returns by recycling capital into higher-yielding assets, targeting returns on equity in the 13%-15% range [8] - The company leverages its relationship with PFSI to access a consistent and high-quality pipeline of loans for investment [4] - PMT expects to complete approximately 30 securitizations in 2026, with targeted returns on equity for retained investments in the low to mid-teens [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in PMT's ability to generate earnings that support dividends and drive long-term shareholder value [9] - The company noted that while prepayment speeds have increased, they expect to offset declines in profitability through additional recapture from PFSI [16][17] - Management highlighted a robust demand for securitizations in January 2026, indicating a supportive market environment [40] Other Important Information - PMT raised $150 million of new unsecured financing through opportunistic reopenings of its Exchangeable Senior Notes due in 2029 [13] - The company is considering the sale of MSRs for risk management purposes if higher returning assets become available [35] Q&A Session Summary Question: Return expectations for the interest rate strategy - Management indicated that prepayments are expected to remain elevated, but they anticipate growth in recapture through PFSI [16][17] Question: Competition in the non-agency space - Management noted healthy competition from companies like Rocket Mortgage and UWM, but stated that they have been outperforming these competitors [21] Question: Financing costs for securitization - Management described a competitive market for financing, benefiting from robust demand for securitizations [28][40] Question: Capacity of the correspondent channel - Management expressed confidence in the capacity to handle potential increases in demand from GSE programs, noting excess capacity in the sector [30][31] Question: Selling MSRs for risk management - Management stated they would consider selling MSRs if higher returning assets are available, highlighting their agility in managing the portfolio [35] Question: Spread behavior in the non-agency market - Management reported stable to tightening spreads in the non-agency space, supporting continued securitization activity [40][41]

Financial Data and Key Metrics Changes - PennyMac Mortgage Investment Trust (PMT) reported a net income of $42 million for Q4 2025, translating to a 13% annualized return on common equity and diluted earnings per share of $0.48, exceeding the quarterly dividend of $0.40 per share [2][10] - Book value per share increased to $15.25 at year-end from $15.16 on September 30 [2] - The total debt-to-equity ratio rose to approximately 10-to-1 from 9-to-1 at the end of Q3 2025, reflecting growth in non-recourse debt associated with securitizations [14] Business Line Data and Key Metrics Changes - PMT completed 19 securitizations in 2025, totaling $6.7 billion in UPB, a significant increase from 2 securitizations in 2024 [3] - Retained investments from these securitizations grew to $528 million, up nearly tenfold from $54 million in 2024 [3] - In Q4 2025, PMT completed 8 securitizations totaling $2.8 billion in UPB and retained $184 million of new investments [7] Market Data and Key Metrics Changes - Approximately 60% of PMT's shareholders' equity is deployed to seasoned investments in mortgage servicing rights (MSRs) and GSE credit risk transfer investments [6] - The weighted average coupon of the loans underlying the MSR investment is 3.9%, providing stable cash flows [6] - The UPB of loans acquired from PFSI's correspondent production totaled $3.7 billion in Q4 2025, with $2.9 billion being conventional conforming volume [12] Company Strategy and Development Direction - PMT aims to optimize returns by recycling capital into higher-yielding assets, targeting returns on equity in the 13%-15% range [8] - The company is focused on leveraging its relationship with PFSI to enhance its origination capabilities and maintain a consistent pipeline of high-quality loans [4][5] - PMT expects to complete approximately 30 securitizations in 2026, with targeted returns on equity for retained investments in the low to mid-teens [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in PMT's ability to generate earnings that support dividends and drive long-term shareholder value [9] - The company noted that while prepayment speeds are expected to remain elevated, they anticipate a dilution effect on profitability as the portfolio grows at a slower pace [17][18] - Management highlighted the competitive landscape in the non-Agency space, noting healthy activity from competitors but also PMT's strong performance in originations [21] Other Important Information - PMT raised $150 million of new unsecured financing during the quarter [13] - The company plans to retire $345 million in Exchangeable Senior Notes due in 2026 using existing financing capacity [14] Q&A Session Summary Question: Return expectations for the interest rate strategy - Management discussed the limited responsiveness of MSRs to interest rate changes and the expectation of increased recapture through PFSI [16] Question: Competition in the non-Agency space - Management noted healthy competition from companies like Rocket Mortgage and UWM but emphasized PMT's strong origination performance [21] Question: Financing costs for securitizations - Management indicated a competitive market for financing and discussed the implementation of a facility without a mark-to-market feature for risk management [28] Question: Origination capacity under affordability-driven initiatives - Management expressed confidence in the system's capacity to handle increased demand from potential GSE programs [30] Question: Selling MSRs for risk management - Management stated they would consider selling MSRs if higher returning assets become available, highlighting their agility in managing the portfolio [35] Question: Spread behavior in the non-Agency market - Management reported stable to tightening spreads in the non-Agency space, supporting continued securitization activity [40]

Financial Data and Key Metrics Changes - The company reported a net income of $42 million for Q4 2025, translating to a 13% annualized return on common equity, with diluted earnings per share at $0.48, exceeding the quarterly dividend of $0.40 per share [2][10] - Book value per share increased to $15.25 at year-end from $15.16 on September 30 [2] - The total debt-to-equity ratio rose to approximately 10-to-1 from 9-to-1 at the end of Q3 2025, reflecting growth in non-recourse debt associated with securitizations [15] Business Line Data and Key Metrics Changes - The company completed 19 securitizations in 2025, totaling $6.7 billion in UPB, a significant increase from 2 securitizations in 2024 [3] - Retained investments from securitizations grew to $528 million, up nearly tenfold from $54 million in 2024 [3] - The correspondent production segment reported a pre-tax loss of $1 million due to spread widening on jumbo loans and lower overall channel margins [12] Market Data and Key Metrics Changes - Approximately 60% of shareholders' equity is deployed to seasoned investments in MSRs and GSE credit risk transfer investments, with MSRs accounting for 46% of shareholders' equity [5] - The weighted average coupon of the loans underlying the MSR investment is 3.9%, providing stable cash flows [5] - The UPB of loans acquired from PFSI's correspondent production totaled $3.7 billion, with $2.9 billion being conventional conforming volume [12] Company Strategy and Development Direction - The company aims to optimize returns by recycling capital into higher-yielding assets, targeting ROEs in the 13%-15% range [8] - The relationship with PFSI is highlighted as a competitive advantage, providing a consistent pipeline of loans for investment [4] - The company expects to complete approximately 30 securitizations in 2026, with targeted returns on equity for retained investments in the low to mid-teens [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate earnings that support dividends and drive long-term shareholder value [9] - The company anticipates that prepayment speeds will remain elevated but expects to offset declines in profitability through additional recapture [17][18] - Management noted that the market for securitizations remains robust, with stable to tightening spreads in the non-agency space [43] Other Important Information - The company raised $150 million of new unsecured financing during the quarter [14] - The MSR asset at year-end was valued at $3.6 billion, slightly down from the prior quarter due to higher levels of runoff [11] Q&A Session Summary Question: Return expectations for the interest rate strategy - Management indicated that prepayments are expected to remain elevated, but they plan to offset profitability declines through additional recapture from PFSI [17][18] Question: Competition in the non-agency space - Management noted healthy competition from companies like Rocket Mortgage and UWM, but stated that they have been outperforming in terms of originations [23][24] Question: Financing costs for securitization - Management described the financing market as competitive, with a focus on risk management through facilities that minimize mark-to-market risk [30][31] Question: MSR sales for risk management - Management is open to considering MSR sales if higher returning assets are available, highlighting their agility in managing the portfolio [37][38] Question: Spread behavior in the non-agency market - Management reported stable to tightening spreads in the non-agency space, supporting continued securitization activity [43]

Core Viewpoint - PennyMac Mortgage Investment Trust (PMT) reported strong financial results for the fourth quarter of 2025, with net income attributable to common shareholders of $41.9 million, or $0.48 per share, driven by solid contributions from credit-sensitive and interest rate-sensitive strategies [1][4][5]. Financial Results - Net investment income for the fourth quarter of 2025 was $93.6 million [1]. - The annualized return on average common equity was 13% [3][4]. - Book value per common share increased to $15.25 at December 31, 2025, up from $15.16 at September 30, 2025 [4]. - PMT raised $150 million through opportunistic reopenings of exchangeable senior notes due June 2029 [2]. Investment Activity - Loans acquired totaled $5.5 billion in unpaid principal balance (UPB), an increase of 18% from the prior quarter [4]. - PMT acquired $3.7 billion in UPB of conventional conforming and non-Agency loan volume from PennyMac Financial Services, Inc. (PFSI), up 10% from the prior quarter [4]. - The company closed three Agency-eligible investor loan securitizations, three jumbo loan securitizations, and two Agency-eligible owner-occupied loan securitizations with a combined UPB of $2.8 billion [4]. Segment Performance - The Credit Sensitive Strategies segment generated pretax income of $23.5 million on net investment income of $23.6 million, compared to $18.8 million in the prior quarter [7]. - The Interest Rate Sensitive Strategies segment reported pretax income of $28.5 million on net investment income of $52.7 million, down from $32.3 million in the prior quarter [12]. - The Correspondent Production segment experienced a pretax loss of $1.0 million, compared to a pretax income of $9.2 million in the prior quarter [16]. Tax and Corporate Information - PMT recorded a tax benefit of $16.2 million, primarily due to net fair value declines on mortgage servicing rights (MSR) and interest rate hedges [21]. - Corporate revenues were $0.9 million, unchanged from the prior quarter, while corporate expenses increased to $15.7 million from $14.3 million [20].

Core Insights - AGNC Investment Corp. reported a fourth-quarter 2025 net spread and dollar roll income per common share of 35 cents, missing the Zacks Consensus Estimate of 37 cents and declining 5.4% from the previous year [1][8] - The company experienced a decline in average asset yield and reduced net interest spread, alongside a higher weighted average cost of funds, which negatively impacted results [2][11] - Despite these challenges, tangible net book value per share increased by 5.6% year-over-year, indicating a positive trend in portfolio value [6][8] Financial Performance - Adjusted net interest and dollar roll income available to common stockholders reached $457 million, up 12.8% from the year-ago quarter [2] - Comprehensive income per common share for the fourth quarter was 89 cents, compared to a comprehensive loss of 11 cents per share in the same quarter last year [3] - Net interest income (NII) was reported at $206 million, missing the Zacks Consensus Estimate by 36.3%, while for the full year 2025, NII totaled $675 million, also below estimates [4] Cost and Yield Analysis - The average asset yield on AGNC's portfolio was 4.87% in Q4 2025, down from 5.02% in Q4 2024 [4] - The combined weighted average cost of funds increased to 3.10%, up from 2.89% in the previous year [5] - The average net interest spread decreased to 1.81%, down from 1.91% year-over-year [5] Portfolio and Investment Metrics - As of December 31, 2025, AGNC's investment portfolio totaled $94.8 billion, including $81.1 billion in Agency mortgage-backed securities [7] - The average actual constant prepayment rate for the investment portfolio was 9.7%, slightly up from 9.6% in the previous year [6] - The economic return on tangible common equity was 11.6%, a significant improvement from an economic loss of 0.6% in the year-ago quarter [6] Dividend Information - AGNC announced a dividend of 36 cents per share for the fourth quarter, with total dividends declared since its IPO amounting to $15.5 billion or $50.08 per share [10]

Core Viewpoint - Cherry Hill Mortgage Investment Corporation (CHMI) announced the estimated Federal income tax treatment of its 2025 distributions on common and preferred stock, advising shareholders to consult personal tax advisors for specific tax treatment [1] Summary by Category Distributions - The company provided details regarding the total record and payable distributions for its common stock, although specific figures were not disclosed in the announcement [1]