PennyMac Mortgage Investment Trust (PMT) Q3 2022 Earnings Call Transcript

PennyMac Mortgage Investment Trust (NYSE:PMT) Q3 2022 Results Conference Call October 27, 2022 5:00 PM ET

Company Participants

Isaac Garden - Investor Relations
David Spector - Chairman and Chief Executive Officer
Vandy Fartaj - Senior Managing Director and Chief Investment Officer
Dan Perotti - Senior Managing Director and Chief Financial Officer

Conference Call Participants

Isaac Garden

Good afternoon and welcome to the Third Quarter Earnings Discussion for PennyMac Mortgage Investment Trust.

The slides that accompany this discussion are available on PennyMac Mortgage Investment Trust's website at www.pennymac-reit.com.

Before we begin, let me remind you that our discussion contains forward-looking statements that are subject to the risks identified on Slide 2 that could cause our actual results to differ materially.

Now I'd like to introduce David Spector, PMT's Chairman and Chief Executive Officer, who will discuss the Company's third quarter 2022 results.

David Spector

Thank you, Isaac. In what was a challenging market for most mortgage REITs in the third quarter, PMT reported net income of $1.5 million or $0.01 per common share. Strong performance from PMT's interest rate-sensitive strategies and overall income, excluding market-driven fair value changes, was sufficient to offset the impact of continued credit spread widening and an increased provision for tax expense. PMT paid a common dividend of $0.47 per share. Book value per share decreased to $16.18 from $16.59 at the end of the prior quarter.

Dan Perotti, Senior Managing Director and Chief Financial Officer, will review additional details of PMT's financial performance later on in this discussion.

During the quarter, we repurchased 1 million shares of PMT's common stock for $13 million at an average price of $13.66, significantly below current book value per share. And through October 26, we repurchased an additional 1.1 million shares for an approximate cost of $13 million at $11.74 per share. PMT's Board of Trustees also recently approved