PennyMac Mortgage Investment Trust (PMT) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

risk identified on slide two of the earnings presentation that could cause the company's actual results to differ materially, as well as non-GAAP measures that have been reconciled to their GAAP equivalent in the earnings materials. Now, I'd like to introduce David Spector, Petty Mac Mortgage Investment Trust Chairman and Chief Executive Officer, and Dan Perotti, Petty Mac Mortgage Investment Trust's Chief Financial Officer. Thank you, operator. For the first quarter, PMT produced a net loss to common shareholders of $1 million, or diluted earnings per share of negative one cent. Strong levels of income excluding market-driven value changes were offset by net fair value declines due to interest rate volatility and credit spread widening. PMT declared a first quarter common dividend of 40 cents per share. Book value per share at March 31st was $15.43, down modestly from December 31st. Current third-party estimates for industry origination averaged $2 trillion in 2025, reflecting projections for growth in overall volumes with moderate contributions from both refinance and purchase. Interest rates have been extremely volatile in recent periods, creating a challenging environment for most mortgage REITs. However, our diversified investment portfolio, efficient cost structure, and strong risk management practices enable us to effectively manage through these challenging market conditions. These risk management practices include a well-established interest rate hedging program and the establishment of unique non-market-to-market financing arrangements for the vast majority of our credit risk transfer investments, which enable us to effectively manage through volatile markets. Turning to slide five, our synergistic relationship with PFSI provides PMT with unique and proven ...