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PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income of $40.4 million, or $0.81 per diluted share, for the third quarter of 2012, on net investment income of $99.2 million. In addition, PMT’s Board of Trustees has declared a cash dividend of $0.57 per common share of beneficial interest. This dividend will be paid on November 30, 2012 to common shareholders of record on November 16, 2012.
Diluted earnings per common share of $0.81, up 3 percent from the prior quarter with a 33 percent increase in weighted shares outstanding
Net investment income of $99.2 million, up 54 percent from the prior quarter
Net income of $40.4 million, up 37 percent from the prior quarter
Return on average equity of 16 percent 1, down from 17 percent in the prior quarter
Issued over $359 million in new equity capital, bringing total shareholders’ equity to $1.2 billion
Increased dividend to $0.57 per diluted common share, up 3 percent from the prior quarter
Mortgage Investment Results:
Correspondent purchases of $6.3 billion in unpaid principal balance (UPB) 2, up 87 percent from the prior quarter
Conventional purchases of $3.7 billion in UPB, up 111 percent from the prior quarter
Correspondent interest rate lock commitments (IRLCs) of $8.5 billion, up 84 percent from the prior quarter
Conventional IRLCs of $5.5 billion, up 105 percent from the prior quarter
Distressed mortgage loan purchases of $357 million in UPB
Return on equity calculated based on average shareholders’ equity for each month.
FHA purchases were $2.6 billion in UPB, for which PMT earns a sourcing fee of 3bps and interest income for its holding period.
PMT earned $59.0 million in pretax income for the quarter ended September 30, 2012, a 55 percent increase from the second quarter. The following table presents the contribution of PMT’s Investment Activities and Correspondent Lending segments to pretax income:
Quarter ended September 30, 2012
Net gain on investments
Net gain on mortgage loans acquired for sale
Loan fulfillment fees payable to affiliate
“During the third quarter, PMT efficiently deployed capital from its equity raise to grow earnings and achieve strong investment results,” said Chairman and Chief Executive Officer Stanford L. Kurland. “We increased earnings to $0.81 per share, grew mortgage investments by over $350 million, increased conventional correspondent loan purchase volume by 111% and realized solid returns in our distressed whole loan portfolio.”