PennyMac Mortgage Investment Trust (PMT) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to PennyMac Mortgage Investment Trust's fourth quarter 2021. David Spector, PennyMac Mortgage Investment Trust's Chairman and Chief Executive Officer, and Dan Perotti, PennyMac Mortgage Investment Trust's Chief Financial Officer. Please go ahead. Thank you, Operator. Good afternoon and thank you to everyone for participating in our fourth quarter and full year 2025 earnings call. Starting on slide three, PMT generated strong financial results in the fourth quarter. with net income to common shareholders of $42 million, or a 13% annualized return on common equity. Diluted earnings per share was $0.48, in excess of PMT's $0.40 per share quarterly dividend, increasing book value per share to $15.25 a year end from $15.16 on September 30th. Dan will talk about PMT's fourth quarter financial results in more detail later on in the presentation. Turning to slide four, I'd like to highlight the significant progress we made in 2025, accelerating our organic investment creation activities resulting from private label securitizations. As you can see, over the course of the year, we successfully completed 19 securitizations, totaling $6.7 billion in UPB. a substantial increase from just two securitizations in 2024. Retained investments from these securitizations grew to $528 million, up nearly tenfold from just $54 million in 2024. This consistent cadence of securitization activity firmly established PMT as a top three issuer prime non-agency MBS in 2025. At the same time, we rotated capital to better optimize PMT's return profile. This included the purchase of $876 million of agency floating rate MBS and the sale of $195 million of opportunistic GSE-issued CRT investments where we had realized significant gains. We decided to sell these GSE-issued CRT...