PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income of $54.5 million, or $0.86 per diluted share, for the second quarter of 2013, on net investment income of $129.7 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 August 30, 2013 to common shareholders of record as of August 19, 2013.
- Diluted earnings per common share of $0.86, down 4 percent from the prior quarter, on a 10 percent increase in weighted average diluted shares outstanding
- Net investment income of $129.7 million, up 9 percent from the prior quarter
- Net income of $54.5 million, up 2 percent from the prior quarter
- Gain on investment portfolio of $46.8 million, down 27 percent from the prior quarter
- Completed $250 million senior exchangeable note offering, providing attractive financing for PMT’s investment activities
- Book value per share of $21.06, up from $20.72 at March 31
- Return on average equity of 18 percent 1, unchanged from the prior quarter
Return on equity calculated based on average shareholders’ equity for each month.
Mortgage investment activity results:
- Correspondent acquisitions of $8.6 billion in unpaid principal balance (UPB) 2, essentially flat from the prior quarter
- Conventional conforming and jumbo acquisitions of $4.3 billion in UPB, down 10 percent from the prior quarter
- Correspondent interest rate lock commitments (IRLCs) of $10.0 billion, up 23 percent from the prior quarter
- Conventional conforming and jumbo IRLCs of $5.2 billion, up 24 percent from the prior quarter
- Distressed mortgage loan purchases of $397 million in UPB during the quarter
- Servicing portfolio reaches $20 billion in UPB
Investment Activity after the Second Quarter:
- Acquired $494 million in UPB of nonperforming whole loans in July
- Agreed to acquire an additional pool of nonperforming loans totaling $502 million in UPB 3
- Purchased $393 million of prime non-agency jumbo loans; continued progress towards 3Q13 securitization
- Invested $12 million in Freddie Mac’s inaugural credit risk sharing bond issuance (“STACR”)
Government loan acquisitions for the first quarter were $4.3 billion in UPB and were or will be sold to an affiliate, for which PMT earned a sourcing fee of 3 basis points and interest income for its holding period.
This pending transaction is subject to continuing due diligence and customary closing conditions. There can be no assurance that the committed amount will ultimately be acquired or that the transaction will be completed.
“The second quarter results demonstrate the strength of PMT’s strategy pursuing multiple investment opportunities across the residential mortgage market,” said Chairman and Chief Executive Officer Stanford L. Kurland. “PMT achieved new investments in distressed whole loans, grew its correspondent lending activities, and acquired a bulk portfolio of jumbo loans as we prepare for PMT’s first securitization targeted for the third quarter. The ability to pursue diverse and changing opportunities across the mortgage landscape differentiates PMT from other mortgage REITs and we continue to pursue new opportunities for growth as we head into the second half of 2013.”