PennyMac Mortgage Investment Trust (PMT) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to PennyMac Mortgage Investment Trust's first quarter 2026 earnings call. Additional earnings materials, including presentation slides that will be referred to in the call, as well as an Excel file with supplemental information, are available on PennyMac Mortgage Investment Trust's website at pmt.pennymac.com. Before we begin, let me remind you that this call may contain forward-looking statements that are subject to certain risks 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, PennyMac Mortgage Investment Trust Chairman and Chief Executive Officer, and Dan Perotti, PennyMac Mortgage Investment Trust Chief Financial Officer. Thank you, Operator. Good afternoon, and thank you to everyone for participating in our first quarter 2026 earnings call. Starting on slide three, PMT's first quarter net income was $14 million, or 16 cents per diluted common share, representing a 4% annualized return on common equity. These results were impacted by a lower contribution from our interest rate-sensitive strategies primarily due to a decrease in servicing fees as a result of seasonality and a larger-than-expected MSR runoff related to higher note rate loans. These impacts were partially offset by improved results in our aggregation and securitization segment. PMT paid a quarterly dividend of $0.40 per share, and book value per share March 31st was $14.98, down 2% from the end of the prior quarter. Turning to slide five, I would like to note we have renamed what was previously the Correspondent Production segment to the Aggregation Securit...