PennyMac Mortgage lower after slide in earnings

|About: PennyMac Mortgage Invest... (PMT)|By:, SA News Editor

Net income of $37.9M or $0.50 per share is off 28% from Q4 on net investment income of $76.6M off 20%. Dividend of $0.59 per share.

Book value per share of $20.88 up from $20.82 at the end of the 2013 after payment of dividend.

CEO Stan Kurland: "The reduction in earnings for Q1 was driven by reduced income in PMT's correspondent lending business and lower gains in the distressed whole loan portfolio."

Investment activities segment: $33.1M in pretax income on revenue of $64.3M vs. $48.4M and $78M in Q4. Net gain on investments of $42.6M off 11%. Net interest income of $19.6M is lower by $2.9M. Net loan servicing fees of $7.4M fell from $12.2M.

Distressed mortgage investments: Distressed mortgage loan portfolio gains of $39.9M down from $50.6M. Company acquired $436M UPB of nonperforming whole loans and REO in Q1; has another $41M UPB under agreement and expected to settle in Q2.

Correspondent lending segment: Pretax income of $3.1M falls from $6.3M on revenue of $12.3M, off 32%.

Previously: PennyMac Mortgage misses by $0.14

PMT -3.7% AH