PennyMac Mortgage Investment Trust (PMT) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to PennyMac Mortgage Investment Trust's second quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To answer your question, press star 1 again. Additional earnings materials, including the presentation slides that will be referred to in the call, as well as an Excel file with supplemental information, are available on the PennyMac Mortgage Investment Trust website, and David Spector. Penny Mac Mortgage Investment Trust Chairman and Chief Executive Officer, and Dan Perotti, Penny Mac Mortgage Investment Trust Chief Financial Officer. Please go ahead. Thank you, operator. Good afternoon, and thank you to everyone for participating in our second quarter 2026 earnings call. Starting on slide three, P&T's second quarter net income was $20 million, or 23 cents per diluted common share representing a 6% annualized return on common equity. These results were impacted by a lower contribution from our credit-sensitive strategies, driven primarily by market-driven value declines, as well as lower contributions from our aggregation and securitization strategies, primarily due to lower volumes. These impacts were partially offset by improved results in our interest rate-sensitive strategies. PMT paid a quarterly dividend of $0.40 per share, and book value per share June 30th was $14.83, down 1% from the end of the prior quarter. Turning to slide four, during the second quarter, PMT acquired $2.6 billion in UPB of loans through corresponding production activities, for which PMT pays fulfillment fees to PFSI. This number was down 8% from the prior quarter and 17% from the second quarter of 2025. P&T also acquired $2.2 billion in...