CALABASAS, Calif.--(BUSINESS WIRE)--
PennyMac Mortgage Investment Trust (NYSE: PMT) today reported results
for the period from August 4, 2009, when it completed its initial public
offering and commenced operations, to September 30, 2009. During its
first two months of operations, the Company actively pursued high-yield
investment opportunities consistent with its objective of investing
primarily in residential mortgage loans and mortgage-related assets to
provide attractive risk-adjusted returns over the long-term.
In its initial period of operations ended September 30, 2009, the
Company invested approximately $69.5 million of the proceeds from its
equity offerings in residential mortgage-backed securities having an
aggregate unpaid principal balance of approximately $72.9 million. The
Company acquired these securities pending its anticipated reinvestment
of the proceeds in suitable pools of mortgage loans or longer-lived,
higher yielding mortgage-backed securities. The acquired securities are
backed by non-agency Alt-A, subprime and prime jumbo loans and are
currently cash-flowing senior priority securities with a weighted
average remaining life of approximately one-and-one-half years and a
weighted average yield of 7.13%.
The following is a summary of the Company's portfolio of mortgage-backed
securities as of September 30, 2009:
September 30, 2009
Average
Carrying Principal Life Coupon Yield
Value (in years)
(dollar amounts in thousands)
Security
collateral type:
Non-Agency Alt-A $ 36,428 $ 38,264 1.67 4.31 % 8.17 %
Non-Agency 16,931 17,785 0.71 0.41 7.93
Subprime
Non-Agency Prime 14,700 15,000 2.09 3.28 3.66
Jumbo
Total investment $ 68,059 $ 71,049 1.52 3.12 % 7.13 %
securities
The Company's initial investments produced total revenues of $816,000,
offset by management fees and other expenses, resulting in a net loss of
$730,000, or $0.04 per share, for the period ended September 30, 2009.
Stanford L. Kurland, Chairman and Chief Executive Officer of PennyMac,
commented on the period's results, "In PMT's first two months of
operations, our manager reviewed residential whole loan and securities
portfolios with cumulative unpaid principal balances of over $6.9
billion and bid on several of those portfolios at levels consistent with
our yield requirements. While some market participants have been willing
to accept lower yields and bid more aggressively, we still believe that
it is in the best interest of our shareholders over the long term to
remain patient in order to maximize the returns from our long-term
investment opportunities. Currently, our manager is reviewing over $1.9
billion in unpaid principal balances of residential whole loan and
securities portfolios, and we expect that the volume of troubled
residential mortgage loans available for sale will continue to grow.
Additionally, our manager continues to build a conduit operation that
could potentially allow us to capitalize on current market opportunities
to provide small mortgage lenders an outlet for their newly originated
mortgage loans."
Management's presentation will be available in the Investor Relations
section of the Company's website at www.pennymacmortgageinvestmenttrust.com
beginning November 6, 2009.
About PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust is a recently formed mortgage real
estate investment trust (REIT) that invests primarily in residential
mortgage loans and mortgage-related assets. PennyMac Mortgage Investment
Trust trades on the New York Stock Exchange under the symbol "PMT" and
is externally managed by PNMAC Capital Management, LLC, a wholly owned
subsidiary of Private National Mortgage Acceptance Company, LLC.
Additional information about PennyMac Mortgage Investment Trust is
available at www.pennymacmortgageinvestmenttrust.com.
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, regarding management's beliefs, estimates, projections and
assumptions with respect to, among other things, the Company's financial
results, future operations, business plans and investment strategies, as
well as industry and market conditions, all of which are subject to
change. Words like "believe," "expect," "anticipate," "promise," "plan,"
and other expressions or words of similar meanings, as well as future or
conditional verbs such as "will," "would," "should," "could," or "may"
are generally intended to identify forward-looking statements. Actual
results and operations for any future period may vary materially from
those projected herein and from past results discussed herein. Factors
which could cause actual results to differ materially from historical
results or those anticipated include, but are not limited to: changes in
general business, economic, market and employment conditions from those
expected; continued declines in residential real estate and disruption
in the U.S. housing market; the availability of, and level of
competition for, attractive risk-adjusted investment opportunities in
residential mortgage loans and mortgage-related assets that satisfy our
investment objective and investment strategies; changes in our
investment or operational objectives and strategies, including any new
lines of business; the concentration of credit risks to which we are
exposed; the availability, terms and deployment of short-term and
long-term capital; unanticipated increases in financing and other costs,
including a rise in interest rates; the performance, financial condition
and liquidity of borrowers; increased rates of delinquency or decreased
recovery rates on our investments; increased prepayments of the mortgage
and other loans underlying our investments; changes in regulations or
the occurrence of other events that impact the business, operation or
prospects of government sponsored enterprises; changes in government
support of homeownership; changes in governmental regulations,
accounting treatment, tax rates and similar matters; and our ability to
satisfy complex rules in order to qualify as a REIT for U.S. federal
income tax purposes. You should not place undue reliance on any
forward-looking statement and should consider all of the uncertainties
and risks described above, as well as those more fully discussed in
reports and other documents filed by the Company with the Securities and
Exchange Commission from time to time. The Company undertakes no
obligation to publicly update or revise any forward-looking statements
or any other information contained herein, and the statements made in
this press release are current as of the date of this release only.
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except share data)
(unaudited)
September 30,
2009
ASSETS
Cash $ 2,200
Short-term investments 253,065
Mortgage-backed securities at fair value 68,059
Interest receivable 213
Prepaid insurance 650
Total assets $ 324,187
LIABILITIES
Accounts payable and accrued liabilities $ 150
Contingent underwriting fees payable 5,883
Payable to affiliate 3,814
Total liabilities 9,847
Commitments and contingencies --
SHAREHOLDERS' EQUITY
Common shares of beneficial interest--authorized, 500,000,000
shares of $0.01 par value; issued and outstanding, 16,735,317 167
shares
Additional paid-in capital 314,903
Accumulated deficit (730 )
Total shareholders' equity 314,340
Total liabilities and shareholders' equity $ 324,187
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share data)
(unaudited)
Period from August 4, 2009
(Commencement of Operations)
to September 30, 2009
Revenues
Interest income $ 549
Appreciation in fair value of securities 267
Total revenues 816
Expenses
Management fees 812
Compensation 483
Insurance 131
Professional services 72
Other 48
Total expenses 1,546
NET LOSS $ (730 )
Loss per share, basic and diluted $ (0.04 )
Weighted average shares outstanding, basic and 16,735,317
diluted
Source: PennyMac Mortgage Investment Trust
Contact: PennyMac Mortgage Investment Trust
Aratha M. Johnson, Chief Communications Officer
(818) 224-7028