PennyMac Mortgage Investment Trust (PMT) earned a net income of $40.4 million, or 81 cents a share, for its third quarter on net investment income of $99.2 million.
This is a 37% increase from its second quarter with earnings per share up 3% from the second quarter. The investment trust met consensus earnings estimates from Zack's Investment Research.
Return on average equity was 16%, which is down from 17% a quarter prior.
PennyMac issued more than $359 million in new equity capital, which brings shareholders’ equity total to $1.2 billion.
In regard to mortgage investment results, correspondent purchases of $6.3 billion in unpaid principal balance increased 87% from 2Q. The conventional purchases of $3.7 billion in UPB also increased 111% from the prior quarter.
Correspondent interest rate lock commitments of $8.5 billion is up 84% from 2Q. Conventional IRLCs of $5.5 billion also increased 105% from the prior quarter.
The results also showed $357 million in unpaid principal balances of distressed mortgage purchases.