Key Highlights

  • Net income attributable to common shareholders was $20 million, or $0.23 per share.
  • Book value per share was $14.83, down 1% from the prior quarter.
  • Agreed to sell $13 billion UPB of low coupon agency MSRs after quarter-end.
  • Shares closed at $7.04, down $0.01, or flat, at Tuesday's close.

PennyMac Mortgage Investment Trust (NYSE:PMT)'s second quarter combined a 6% annualized return on common Equity with a modest decline in Book Value per share, as the company continued shifting Capital toward credit-sensitive investments. Chairman and Chief Executive Officer David Spector said the company is moving to strengthen the overall Earnings power of its portfolio.

PMT is a real estate investment trust that invests in residential mortgage loans and mortgage-related assets. Total Assets reached $25.1 billion as of June 30, 2026, up 18% year over year. Total Debt outstanding rose 57% year over year to $23.0 billion.

The Fair Value of PMT's mortgage servicing rights asset was $3.6 billion at quarter-end, with $208 billion of unpaid principal balance of underlying loans, both down slightly from the prior quarter due to runoff.

Second quarter 2026 compared with the first quarter

Net investment income was $73 million. Net Income attributable to common shareholders was $20 million, or $0.23 per diluted share, against $0.16 per share in the first quarter. Book value per share was $14.83 at quarter-end, against $14.98, a decline of 1%.

PMT acquired $2.2 billion in unpaid principal balance of loans from PFSI production for inclusion in private label securitizations, up 44% from the prior quarter, and completed six private label securitizations totaling $2.2 billion in unpaid principal balance, retaining $120 million in new subordinate bond investments. The fair value of subordinate bond investments from private label securitizations was $853 million at quarter-end, up 16% from the prior quarter.

Beginning in June, the company said it stopped acquiring Agency-eligible conventional loans through correspondent production, though it continues acquiring all government-insured loans. The company paid a quarterly Dividend of $0.40 per share.

Management outlook and stated risks

Management said it expects to complete approximately 30 securitizations in 2026 and projects an average run rate return of $0.33 per quarter for the next year, up from its previous projection of $0.31. The company said earnings excluding market-driven value changes have been below the dividend level for several quarters.

Subsequent to quarter-end, the company said it agreed to sell $13 billion in unpaid principal balance of low coupon agency mortgage servicing rights, with closing expected by the end of August 2026.

The Bottom Line

Management tied its near-term plans to redeploying capital from the MSR sale toward credit-sensitive investments it said offer higher return potential, continuing its shift away from Agency-eligible conventional Loan acquisition. The company said rising long-term interest rates could benefit returns on its remaining mortgage servicing rights portfolio.