PennyMac Mortgage Investment Trust Reports Decrease in Net Income and Increased Total Assets for Q2 2025

PennyMac Mortgage Investment Trust (PMT) reported its financial results for the quarter ending June 30, 2025, revealing a net income of $7.5 million, a significant decrease from $25.4 million in the same period last year. The company’s net investment income for the quarter was $70.2 million, slightly down from $71.2 million year-over-year. For the first half of 2025, PMT's net income totaled $17.2 million, compared to $73.0 million in the first half of 2024. The decline in profitability was attributed to increased fair value losses on mortgage servicing rights (MSRs) and a higher provision for income taxes, which included a $14 million increase due to changes in California's tax apportionment laws.

Total assets for PMT increased to $16.8 billion as of June 30, 2025, up from $14.4 billion at the end of 2024. This growth was primarily driven by a rise in loans held for investment, which surged to $4.6 billion from $2.2 billion, and loans acquired for sale, which increased to $2.6 billion from $2.1 billion. However, the company experienced a decrease in mortgage servicing rights, which fell to $3.7 billion from $3.9 billion. The total liabilities also rose to $14.9 billion, up from $12.5 billion, largely due to increased borrowings to finance the growing inventory of loans.

In terms of operational developments, PMT's correspondent production segment saw a notable increase in loan production, with $31.4 billion in loans purchased during the quarter, compared to $22.9 billion in the same period last year. The company also reported net gains on loans acquired for sale of $17.8 million, up from $12.2 million in the previous year. The increase in loan production and gains was attributed to improved gain-on-sale margins and a higher volume of loans sold to PennyMac Financial Services, Inc. (PFSI).

Looking ahead, PMT anticipates continued growth in its correspondent production activities, particularly as it prepares to acquire a portion of conventional loans and all jumbo loans produced by PFSI starting in July 2025. The company is also focused on investing in subordinate mortgage-backed securities generated from the private label securitization of Agency-eligible non-owner occupied and jumbo loans. However, PMT remains cautious about potential economic uncertainties, including rising mortgage delinquencies and defaults, which could impact the performance of its credit-sensitive assets. The company is committed to maintaining its REIT status and distributing at least 90% of its taxable income to shareholders, which may limit its ability to retain earnings for further investment.