CALABASAS, Calif.--(BUSINESS WIRE)--
PennyMac Mortgage Investment Trust (NYSE:PMT) today reported results of
operations for the quarter ended December 31, 2009 and for the period
from August 4, 2009 (commencement of operations) to December 31, 2009.
For the quarter ended December 31, 2009, PMT reported total investment
income of $1,485,000 and a net loss of $1,153,000, or ($0.07) per share.
For the period from August 4, 2009 to December 31, 2009, PMT's total
investment income amounted to $2,301,000 and its net loss was
$1,883,000, or ($0.11) per share.
During the last quarter of 2009, the Company continued to pursue high
yield investment opportunities and completed acquisitions of residential
whole loans with unpaid principal balances of approximately $40.1
million and $23.6 million in fair value of residential mortgage-backed
securities. These transactions bring the total amount invested in
residential mortgage whole loans and residential mortgage-backed
securities by PMT to $119.1 million, or 37% of the proceeds of the
Company's initial public offering. The Company is also in the final
stages of closing a transaction to acquire residential whole loans with
unpaid principal balances of approximately $100 million.
The whole-loan acquisition by the Company in 2009 consisted of a
portfolio of performing residential mortgage loans that was purchased at
a discount on the approximate $40 million in unpaid principal balances.
The loans in the portfolio are secured by homes located throughout the
United States with the highest concentrations in Illinois (9%),
California (8%) and Florida (7%). 83% of the homes are owner-occupied.
Over 90% of the loans are fixed-rate mortgages. The weighted average
coupon is 8.15%, and the current weighted average FICO score of the
borrowers is 634.
As noted above, the Company anticipates closing a transaction in the
coming weeks to purchase a pool of non-performing residential whole
loans at a discount on the approximate $100 million in unpaid principal
balances. These loans are primarily non-performing loans secured by
homes located throughout the United States with the highest
concentration in California (17%). 94% of the homes are owner-occupied.
The weighted average coupon is 6.36%, and the current weighted average
FICO score of the borrowers is 677. There can be no assurance that the
Company will close this transaction on the terms anticipated, or at all.
In addition, during the quarter ended December 31, 2009, the Company
invested approximately $23.6 million in residential mortgage-backed
securities. These securities were acquired pending 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. These
acquisitions bring the total amount of residential mortgage-backed
securities held to $83.8 million with a weighted average remaining life
of less than one-and-one quarter years and a weighted average yield of
8.11%.
The following is a summary of the Company's portfolio of mortgage-backed
securities as of December 31, 2009 and acquisitions during the quarter
ended December 31, 2009:
December 31, 2009
Average
Acquired
Carrying Life Quarter Ended
Principal Coupon Yield
Value (in years) December 31,
2009
(dollar amounts in thousands)
Security
collateral
type:
Non-Agency $ 39,522 $ 41,944 0.82 0.37 % 9.08 % $ 18,131
Subprime
Non-Agency 27,060 28,416 1.57 5.13 % 9.08 % 2,834
Alt-A
Non-Agency 17,189 17,452 1.42 3.43 % 4.34 % 2,630
Prime Jumbo
Total
investment $ 83,771 $ 87,812 1.18 2.52 % 8.11 % $ 23,595
securities
Stanford L. Kurland, Chairman and Chief Executive Officer of PMT,
stated, "At this early stage in PMT's development, it is not surprising
that operating costs have exceeded investment income. Over the past
several months, our manager has focused significant attention on its
ability to adapt and react to changing dynamics in the mortgage
marketplace, including a low volume of available performing mortgage
transactions, which offer greater opportunity for value enhancement, and
less attractive trading levels for the pools that have been marketed. As
it waits for the market to further develop, our manager has placed
particular emphasis on expanding the operational capabilities and the
range of sources for attractive investment opportunities available to
PMT. This expanded menu of capabilities and opportunities includes: a
conduit platform that will allow PMT to purchase newly originated loans
from small mortgage lenders and repackage those loans for securitization
and sale; increased participation in structured transaction and
securitization activities; opportunities to acquire mortgage assets that
result from distressed condo development projects that may include real
estate development loans, existing residential loans originated by the
developer, and residential loans originated by PennyMac Loan Services on
our behalf; and investments in mortgage servicing rights of liquidating
and other entities. Ultimately, we remain firm in our commitment to
investing wisely on behalf of PMT shareholders who recognize that PMT's
unique approach to the distressed residential mortgage arena requires
patient, long-term capital resources."
Management's recorded call and slide presentation will be available in
the Investor Relations section of the Company's website at www.PennyMacMortgageInvestmentTrust.com
beginning at 5:30 a.m. (PT) on Tuesday, February 2, 2010.
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)
2009
Assets December 31 September 30
Cash $ 54 $ 2,200
Short-term investments 213,628 253,065
Mortgage-backed securities, at fair value 83,771 68,059
Mortgage loans, at fair value 26,046 -
Interest receivable 492 213
Prepaid insurance 455 650
Total assets $ 324,446 $ 324,187
Liabilities
Accounts payable and accrued liabilities $ 527 $ 150
Contingent underwriting fees payable 5,883 5,883
Payable to affiliate 4,238 3,814
Total liabilities 10,648 9,847
Commitments and contingencies - -
Shareholders' Equity
Common shares of beneficial interest-authorized,
500,000,000 shares of $0.01 par value; issued and 167 167
outstanding, 16,735,317 shares
Additional paid-in capital 315,514 314,903
Accumulated deficit ( 1,883 ) ( 730 )
Total shareholders' equity 313,798 314,340
Total liabilities and shareholders' equity $ 324,446 $ 324,187
PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share data)
(unaudited)
Period from August 4,
Quarter ended 2009
December 31, (commencement of
2009 operations)
to December 31, 2009
REVENUES
Interest income $ 1,600 $ 2,149
Appreciation/(depreciation) in fair value ( 115 ) 152
of investments
Total revenues 1,485 2,301
EXPENSES
Management fees 1,169 1,981
Compensation 820 1,303
Professional services 399 471
Insurance 197 328
Other 53 101
Total expenses 2,638 4,184
Loss before provision (benefit) for ( 1,153 ) ( 1,883 )
income taxes
Provision (benefit) for income taxes - -
Net loss $ ( 1,153 ) $ ( 1,883 )
Loss per share, basic and diluted $ ( 0.07 ) $ ( 0.11 )
Weighted average shares outstanding, 16,735,317 16,735,317
basic and diluted
Source: PennyMac Mortgage Investment Trust
Contact: PennyMac Mortgage Investment Trust
Aratha M. Johnson, Chief Communications Officer
818-224-7028