Fri Jan 31 11:40:00 UTC 2025: ## PennyMac Mortgage Investment Trust Reports Strong Q4 Despite Market Volatility

**NEW YORK, NY – [Date of Publication]** – PennyMac Mortgage Investment Trust (PMT) today announced strong fourth-quarter 2024 results, reporting a 10% return on equity and $36 million in net income to common shareholders. Diluted earnings per share reached $0.41, leading the company to declare a $0.40 per share common dividend. This performance comes despite interest rate volatility throughout the year.

The company’s success was driven by robust income across investment strategies, including $20 million in pretax income from credit-sensitive strategies and $25 million from interest rate-sensitive strategies. However, losses were reported on non-agency subordinate MBS due to rising interest rates. PMT’s total correspondent loan acquisition volume reached $28 billion in Q4 2024, although the portion acquired for PMT’s account decreased by 41% to $3.5 billion.

PMT’s CEO, David Spector, highlighted the company’s successful repositioning of its balance sheet for a higher interest rate environment, including issuing $1.3 billion in term debt and rebalancing its agency MBS portfolio. He also emphasized the renewal of their mortgage banking agreement with PFSI and the company’s ability to organically generate MSR and credit investments. Spector noted that a steeper yield curve, regardless of whether it’s driven by rising long-term or falling short-term rates, improves the outlook for interest-rate-sensitive strategies. He also stated that PMT is prepared for various scenarios regarding GSE reform.

CFO Daniel Perotti reported $430 million in direct liquidity and additional borrowing capacity, addressing concerns about upcoming debt maturities, including a 2026 convertible debt maturity. The company plans to explore capital market opportunities to manage this.

While PMT maintains a positive outlook, GuruFocus has identified four warning signs for the company. Further details can be found in the full earnings call transcript.

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