Exhibit 99.1

 

PennyMac Mortgage Investment Trust Reports Third Quarter 2026 Results and

Announces Changes to its Leadership Team

WESTLAKE VILLAGE, Calif. – October 29, 2026 – PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net loss attributable to common shareholders of $36 million, or $(0.41) per common share on net investment income of $36 million for the third quarter of 2026. Adjusted net income attributable to common shareholders was $30 million, or $0.35 in adjusted earnings per share (EPS)¹.

PMT’s Board of Trustees also approved a $130 million increase to its share repurchase authorization, bringing total available repurchase capacity to over $200 million.

Additionally, PMT today announced that Doug Jones, President and Chief Mortgage Banking Officer, will be retiring on June 30, 2027 after a storied career in the mortgage banking industry including more than 15 years of leadership at Pennymac. His roles and responsibilities will transition to other senior leaders within the company over the next several months.

Also, effective January 1, 2027, Kevin Ryan, currently Chief Strategy Officer, will assume the role of Chief Financial Officer (CFO). Current CFO, Daniel Perotti, will remain in his current role through the remainder of this year and will continue to support the company in an advisory role through the first quarter of 2027. Mr. Ryan will continue to lead the strategy and business development teams while in his new role.

“I am extraordinarily grateful to both Doug and Dan for their long service at Pennymac and their ongoing commitment to and passion for our business,” said Chairman and Chief Executive Officer David Spector. “Both served in various roles and helped to shape Pennymac’s significant growth and transformation into a leading mortgage company. They have made invaluable contributions to the company, and will be greatly missed.”

Mr. Spector continued, “We are very fortunate to have an exceptional leadership team and a deep bench of talent to lead Pennymac into the next chapter, and drive long-term value for our shareholders.”

CEO Commentary

“PMT navigated a challenging third-quarter market backdrop characterized by widening mortgage spreads and sharply rising benchmark interest rates,” said Chairman and CEO David Spector. “While these dynamics pressured the net fair value of our portfolio assets and reduced book value by approximately 5%, our underlying portfolio performed well, generating adjusted EPS of $0.35 per common share, or an annualized adjusted ROE of 9%.¹”

Mr. Spector continued, “We have continued to adjust our investment portfolio by rotating capital into organically created, higher-returning credit investments. In recent periods, we have sold or contracted to sell $35 billion in UPB of MSRs, releasing capital from lower-yielding assets and redeploying the proceeds into investments from private-label securitizations which we expect will deliver low-to-mid-teens ROEs. During the third quarter, we completed eight securitizations and retained $167 million in senior and subordinate investments. Additionally, our projected run-rate return potential increased to $0.38 per share. Given these dynamics and considering PMT currently trades at a steep discount to book value, we expect to decrease our current dividend in favor of share repurchases.”

1	Items labeled as “adjusted” are non-GAAP financial measures. See page 9 for a reconciliation of GAAP net income to adjusted net income attributable to common shareholders and adjusted EPS.

 

1

The table below highlights key financial performance metrics²:

 

($ in millions except for per share metrics)		3Q26				2Q26				3Q25				Q/Q				Y/Y
Net investment income			36				73				99				(50	)%			(63	)%
Net (loss) income attributable to common shareholders			(36	)			20				48				N/M				N/M
Diluted earnings (loss) per common share		$	(0.41	)		$	0.23			$	0.55				N/M				N/M
Annualized return on common equity (ROE)(1)			(11	)%			6	%			14	%			N/M				N/M
Adjusted net income to common shareholders			30				21				32				42	%			(5	)%
Adjusted EPS		$	0.35			$	0.25			$	0.37				42	%			(5	)%
Annualized adjusted ROE			9	%			6	%			10	%			3	%			0	%
Book value per share (at period end)		$	14.03			$	14.83			$	15.16				(5	)%			(7	)%
Dividends declared per common share		$	0.40			$	0.40			$	0.40				—				—

 

(1)	Return on average common equity is calculated based on net income attributable to common shareholders as a percentage of monthly average common equity during the quarter

Business Highlights

 

•

Acquired $1.2 billion in unpaid principal balance (UPB) of loans through correspondent production activities, down 53% from the prior quarter and 64% from the third quarter of 2025

 

•

Acquired $2.1 billion in UPB of loans from PFSI production for inclusion in private label securitizations, down 7% from the prior quarter and up 60% from the third quarter of 2025

 

•

Closed two investor loan securitizations, three jumbo loan securitizations, and three owner occupied loan securitizations with a combined UPB of $2.9 billion

 

•

Generated $167 million of net new investments from private label securitizations3

 

•

Sold $13 billion in UPB of Agency mortgage servicing rights (MSRs)

 

•

Entered into an agreement to sell an additional $10 billion in UPB of Agency MSRs with an expected close in the fourth quarter

 

•

Purchased $548 million of Agency floating-rate mortgage-backed securities (MBS)

Notable Activity After Quarter End

 

•

Completed one investor loan securitization and one owner-occupied loan securitization with a combined UPB of $756 million, generating $93 million of net new investments3

 

•

Priced our inaugural non-QM debt service coverage ratio securitization with a UPB of $298 million and expected retained investments of $26 million with an expected close in early November

 

•

Entered into an agreement to sell $12 billion in UPB Agency MSRs with an expected close in the fourth quarter

2	Items labeled as “adjusted” are non-GAAP financial measures. See page 9 for a reconciliation of GAAP net income (loss) to adjusted EPS and annualized adjusted ROE

3	We consolidate the assets and liabilities of the trust that issued the subordinate and senior bonds; accordingly, these investments are shown as Loans held for investment at fair value and Asset-backed financing of variable interest entities at fair value on our consolidated balance sheets

 

2

Credit Sensitive Strategies Segment

The table below highlights key operating metrics and financial performance in the credit sensitive strategies segment:

 

($ in millions)		3Q26				2Q26				3Q25				Q/Q				Y/Y
Organically-created CRT investments (at period end)
Fair value			878				938				1,019				(6	)%			(14	)%
Underlying UPB			16,878				18,090				19,937				(7	)%			(15	)%
Fair value of subordinate MBS held in VIE from PMT private label securitizations (at period end)			930				853				361				9	%			158	%
Profitability
Income excluding market-driven value changes			12				12				14				(2	)%			(13	)%
Market-driven value changes(1)			(54	)			(1	)			5				N/M				N/M
Total income contribution			(42	)			11				19				N/M				N/M
Weighted average equity allocated			409				411				430				(1	)%			(5	)%
Annualized ROE			(41	)%			11	%			17	%			(52	)%			(58	)%

May not sum due to rounding

 

(1)	Categorization of market-driven value changes or non-recurring impacts is based on management assessment; income excluding market-driven value changes does not represent REIT taxable income and is a non-GAAP figure.

PMT’s organically created credit risk transfer (CRT) investments totaled $878 million in fair value at September 30, 2026 with an underlying UPB of $16.9 billion, both down from prior periods due to runoff. The fair value of subordinate bond investments from private label securitizations totaled $930 million at quarter end, up 9% from the end of the prior quarter and 158% from September 30, 2025 as we continue to deploy capital towards these investments.

Pretax loss for the segment was $42 million, or a (41)% annualized return on equity. Income excluding market-driven value changes was $12 million, essentially unchanged from the prior quarter.

Organically-created CRT investments generated pretax income of $6 million, essentially unchanged from the prior quarter. Subordinate bonds from PMT’s private label securitizations generated a pretax loss of $48 million, compared to pretax income of $5 million in the prior quarter. Third quarter losses on these investments were driven by wider credit spreads and increasing interest rates.

 

3

Interest Rate Sensitive Strategies Segment

The table below highlights key operating metrics and financial performance in the interest rate sensitive strategies segment:

 

($ in millions)		3Q26				2Q26				3Q25				Q/Q				Y/Y
MSR portfolio (at period end)
Fair value			3,514				3,576				3,669				(2	)%			(4	)%
Unpaid principal balance (UPB)			192,136				208,427				218,799				(8	)%			(12	)%
Fair value of MBS portfolio (at period end)			4,306				4,076				4,609				6	%			(7	)%
Fair value of senior MBS held in VIE from PMT private label securitizations (at period end)			108				84				103				29	%			5	%
Profitability
Income excluding market-driven value changes			37				20				36				85	%			1	%
Market-driven value changes(1)			(1	)			(11	)			(4	)			N/M				N/M
Total income contribution			36				9				32				300	%			11	%
Weighted average equity allocated			1,197				1,187				1,154				1	%			4	%
Annualized ROE			12	%			3	%			11	%			9	%			1	%

May not sum due to rounding

 

(1)	Categorization of market-driven value changes or non-recurring impacts is based on management assessment; income excluding market-driven value changes does not represent REIT taxable income and is a non-GAAP figure.

The fair value of PMT’s MSR asset was $3.5 billion at quarter end with $192 billion in UPB of underlying loans, both down slightly from the end of the prior quarter due to previously-announced sales and runoff. The fair value of the MBS portfolio was $4.3 billion, up from $4.1 billion at the end of the prior quarter primarily due to the purchase of $548 million ofAgency floating-rate MBS purchases.

Pretax income for the segment was $36 million, compared to $9 million in the prior quarter and $32 million in the third quarter of 2025. Pretax income in the quarter was driven by $37 million of income excluding market-driven value changes, which was up from $20 million in the prior quarter as a result of lower realization of MSR cash flows due to lower prepayments.

Net loan servicing fees were $242 million, compared to $40 million in the prior quarter. Net loan servicing fees included contractually specified servicing fees and other fees of $144 million, down slightly from the prior quarter, reduced by $85 million in realization of MSR cash flows, which was down from $100 million in the prior quarter due to prepayments. Net loan servicing fees also included $210 million in fair value gains on MSRs, $31 million in hedging losses, and $3 million of MSR recapture income.

Net losses on investments for the segment were $118 million, primarily due to losses on MBS as a result of higher interest rates.

Net interest expense for the segment was $63 million versus $20 million in the prior quarter. Interest income totaled $242 million, up from $237 million in the prior quarter primarily due to increased income from a higher amount of retained investments from private label securitizations. Interest expense was $305 million, up from $257 million in the prior quarter due to higher interest rates and higher financing balances, which includes additional non-recourse asset-backed financing resulting from securitization activity. Both interest income and interest expense were also impacted by market driven value changes in discount accretion due to the significant shift in interest rates during the quarter.

Segment expenses, primarily subservicing fees paid to PFSI, were $25 million, up slightly from the prior quarter.

 

4

Aggregation and Securitization Segment

The table below highlights the financial performance in the aggregation and securitization segment:

 

($ in millions)		3Q26				2Q26				3Q25				Q/Q				Y/Y
Correspondent production volume (UPB)
Conventional conforming			52				1,371				2,786				(96	)%			(98	)%
Jumbo			747				918				557				(19	)%			34	%
Non-QM			400				276				0				45	%			N/M
Total			1,199				2,565				3,343				(53	)%			(64	)%
UPB of loans acquired from PFSI production			2,078				2,224				1,296				(7	)%			60	%
Total UPB of loans acquired			3,276				4,789				4,639				(32	)%			(29	)%
Profitability
Total income contribution			2				11				9				(81	)%			(77	)%
Weighted average equity allocated			178				215				176				(17	)%			2	%
Annualized ROE			5	%			21	%			21	%			(16	)%			(16	)%

May not sum due to rounding

PMT purchased a total of $1.2 billion in UPB of conventional conforming and nonconforming loans through its purchase agreement that PFSI acquired from correspondent sellers, down 53% from the prior quarter. PMT also acquired $2.1 billion in UPB of loans from PFSI’s production for inclusion in private label securitizations, down slightly from $2.2 billion in the prior quarter.

Pretax income for the segment was $2 million in the third quarter, down from $11 million in the prior quarter.

Segment revenues were $16 million and included net gains on loans acquired for sale of $5 million, net interest income of $10 million, and other income of $1 million. Net gains on loans acquired for sale declined from the prior quarter primarily due to the impact of spread widening on jumbo and non-QM loans during aggregation for securitization and lower volumes. Interest income was $47 million, up from $43 million in the prior quarter, and interest expense was $37 million, also up from the prior quarter.

Segment expenses were $14 million, down from $17 million in the prior quarter.

Corporate and Other

Pretax loss for the quarter was $13 million, down slightly from the prior quarter.

Corporate revenues were $1 million, compared to zero in the prior quarter.

Corporate expenses were $13 million, down slightly from the prior quarter.

Taxes

PMT recorded a provision for tax expense of $9 million in the third quarter, driven primarily by gains on MSR held in its taxable REIT subsidiary.

***

 

5

Management’s slide presentation and accompanying materials will be available in the Investor Relations section of the Company’s website at pmt.pennymac.com after the market closes on Thursday, October 29, 2026. Management will also host a conference call and live audio webcast at 6:30 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pmt.pennymac.com and a replay will be available shortly after its conclusion. Individuals who are unable to access the website but would like to receive a copy of the materials should contact the Company’s Investor Relations department at 818.224.7028.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PMT is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). Additional information about PennyMac Mortgage Investment Trust is available at pmt.pennymac.com.

 

Media		Investors
Kristyn Clark		Isaac Garden
mediarelations@pennymac.com		investorrelations@pennymac.com
805.395.9943		818.224.7028

Forward-Looking Statements

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. These forward-looking statements include, but are not limited to, statements regarding future changes in interest rates, housing, and prepayment rates; future loan originations and production; future loan delinquencies, defaults and forbearances; future investment and hedge expenses; future investment strategies, future mortgage servicing rights sales; future private label securitization activity; run-rate return potential and targeted returns on equity; future dividends; future earnings and return on equity as well as other business and financial expectations. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in mortgage and credit spreads; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; rising homeownership costs negatively impacting housing affordability; compliance with changing federal, state and local laws and regulations that govern its business; the general economy or the real estate finance and real estate markets; events or circumstances which undermine confidence in the financial and housing markets or otherwise have a broad impact on financial and housing markets; the degree and nature of the Company’s competition; the availability of, and level of competition for, attractive risk adjusted investment opportunities in mortgage loans and mortgage related assets that satisfy the Company’s investment objectives; the concentration of credit risks to which the Company is exposed; the Company’s dependence on and potential conflicts with its manager, servicer and their affiliates; the Company’s ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the availability, terms and deployment of short term and long term capital; the adequacy of the Company’s cash reserves and working capital; the Company’s ability to maintain the desired relationship between its financing and the interest rates and maturities of its assets; the timing and amount of cash flows, if any, from the Company’s investments; the Company’s engagement in private loan securitizations; the Company’s ability to complete private label securitizations on anticipated terms and timelines, including securitizations of non-qualified mortgage loans and other new loan products; the performance of the investments the Company retains from its private label securitizations; the Company’s substantial amount of indebtedness; the performance, financial condition and liquidity of borrowers; the Company’s exposure to risks of loss and

 

6

disruptions in operations from severe weather events, man-made or other natural conditions, including climate change and pandemics; the ability of the Company’s servicer, which also provides the Company with fulfillment services, to approve and monitor correspondent sellers and underwrite loans to investor standards; incomplete or inaccurate information or documentation provided by customers or counterparties, or adverse changes in the financial condition of the Company’s customers and counterparties; the Company’s indemnification and repurchase obligations in connection with mortgage loans it purchases and later sells or securitizes; the quality and enforceability of the collateral documentation evidencing the Company’s ownership and rights in the assets in which it invests; increased rates of delinquency, defaults and forbearances and/or decreased recovery rates on the Company’s investments; the performance of mortgage loans underlying mortgage backed securities or other investments in which the Company retains credit risk; the Company’s ability to foreclose on its investments in a timely manner or at all; increased prepayments of the mortgages and other loans underlying the Company’s mortgage backed securities or relating to the Company’s mortgage servicing rights and other investments; the Company’s ability to complete pending and potential sales of mortgage servicing rights on anticipated terms and timelines, and to redeploy the resulting proceeds into investments that achieve the anticipated returns; risks associated with the discontinuation of LIBOR; the degree to which the Company’s hedging strategies may or may not protect it from interest rate volatility; the accuracy or changes in the estimates the Company makes about uncertainties, contingencies and asset and liability valuations, and the assumptions underlying its run-rate return potential and targeted returns on equity; the Company’s ability to maintain appropriate internal control over financial reporting; the Company’s ability to detect misconduct and fraud; developments in the secondary markets for the Company’s mortgage loan products; legislative and regulatory changes that impact the mortgage loan industry or housing market; regulatory or other changes that impact government agencies or government sponsored entities, or such changes that increase the cost of doing business with such agencies or entities; federal and state mortgage regulations and enforcement; changes in government support of homeownership and affordability programs; changes in the Company’s investment objectives or investment or operational strategies; limitations imposed on the Company’s business and its ability to satisfy complex rules for it to qualify as a REIT for U.S. federal income tax purposes and qualify for an exclusion from the Investment Company Act of 1940 and the ability of certain of the Company’s subsidiaries to qualify as REITs or as taxable REIT subsidiaries for U.S. federal income tax purposes; changes in governmental regulations, accounting treatment, tax rates and similar matters; the Company’s ability to make distributions to its shareholders in the future; changes in the Company’s dividend policy, including any reduction in the amount of its common share dividend; the Company’s failure to deal appropriately with issues that may give rise to reputational risk; and the Company’s organizational structure and certain requirements in its charter documents. 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.

This release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as adjusted net income, adjusted net income attributable to common shareholders, adjusted earnings per share, annualized adjusted return on equity, income excluding market driven value changes and leverage ratios excluding non-recourse debt that provide a meaningful perspective on the Company’s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosures have limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.

 

7

Consolidated Statements of Operations

($ in millions, except per share amounts)

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
Revenue
Contractually specified servicing and other fees			144				149				151				155				156				(7	)%
Realization of MSR cash flows			(85	)			(100	)			(107	)			(104	)			(89	)			(5	)%
Changes in fair value of MSRs due to changes in fair value inputs			210				19				46				26				(27	)			N/M
Hedging results			(31	)			(33	)			(12	)			(45	)			(27	)			13	%
From PFSI--MSR recapture income			3				5				6				4				3				(12	)%
Net loan servicing fees			242				40				84				37				15				N/M
Net gains on loans acquired for sale			5				15				23				7				15				(65	)%
Loan origination fees			1				2				2				3				3				(57	)%
Net gain (loss) on investments and financings			(162	)			22				(23	)			53				64				N/M
Interest income			314				304				276				248				230				37	%
Interest expense			(364	)			(311	)			(280	)			(255	)			(228	)			60	%
Net interest income (expense)			(50	)			(7	)			(4	)			(6	)			2				N/M
Other income			(0	)			(0	)			(0	)			0				0				N/M
Net investment income			36				73				82				94				99				(63	)%
Expenses
Loan servicing fees			20				20				20				20				21				(3	)%
Management fees			7				7				7				7				7				(2	)%
Loan fulfillment fees			3				5				6				7				6				(48	)%
Professional services			13				12				14				14				9				45	%
Compensation			3				3				3				3				3				(7	)%
Loan collection and liquidation			3				2				2				2				2				74	%
Safekeeping			1				1				1				1				1				(23	)%
Loan origination			0				0				0				0				1				(100	)%
Other expenses			4				7				3				3				3				11	%
Total expenses			53				56				55				57				52				1	%
(Loss) income before provision for (benefit from) income taxes			(16	)			17				27				36				47				N/M
Provision for (benefit from) income taxes			9				(14	)			2				(16	)			(11	)			N/M
Net (loss) income			(25	)			31				25				52				58				N/M
Dividends on preferred shares			10				10				10				10				10				0	%
Net (loss) income attributable to common shareholders			(36	)			20				14				42				48				N/M
Weighted average shares outstanding
Basic			87.2				87.2				87.1				87.0				87.0				0	%
Diluted			87.2				87.2				87.1				87.0				87.0				0	%
Earnings per share (EPS)
Basic EPS		$	(0.41	)		$	0.23			$	0.16			$	0.48			$	0.55				N/M
Diluted EPS		$	(0.41	)		$	0.23			$	0.16			$	0.48			$	0.55				N/M
Dividends declared per common share		$	0.40			$	0.40			$	0.40			$	0.40			$	0.40				0	%

May not sum due to rounding

 

8

Non-GAAP Reconciliations

($ in millions, except per share amounts)

 

		3Q26				2Q26				1Q26				4Q25				3Q25
Net (loss) income			(25	)			31				25				52				58
Market-driven value changes(1):
Net loan servicing fees			179				(14	)			34				(19	)			(54	)
Net (loss) gain on investments			(173	)			12				(34	)			36				46
Interest income			(40	)			(9	)			(3	)			(4	)			7
Interest expense			(20	)			(1	)			4				7				2
Total market-driven value changes			(54	)			(12	)			1				20				1
Tax-related impacts			(12	)			11				(4	)			11				15
Adjusted net income			41				32				28				22				42
Dividends on preferred stock			(10	)			(10	)			(10	)			(10	)			(10	)
Adjusted net income attributable to common shareholders			30				21				17				11				32
Diluted shares outstanding			87				87				87				87				87
Adjusted EPS		$	0.35			$	0.25			$	0.20			$	0.13			$	0.37
Weighted average common equity			1,298				1,330				1,347				1,341				1,337
Annualized adjusted ROE			9	%			6	%			5	%			3	%			10	%

May not sum due to rounding

 

(1)	Categorization of market-driven value changes or non-recurring impacts is based on management assessment; income excluding market-driven value changes does not represent REIT taxable income and is a non-GAAP figure.

 

9

Credit Sensitive Strategies Segment Profitability and Key Metrics

($ in millions)

Credit Sensitive Strategies Segment Contribution to Pretax Income

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
Mortgage-backed securities			(0	)			(0	)			0				0				(1	)			(92	)%
Loans at fair value			(54	)			0				2				9				5				N/M
CRT investments			10				10				14				16				14				(27	)%
Net (losses) gains on investments and financings			(44	)			10				16				25				18				N/M
Interest income			24				22				19				18				21				13	%
Interest expense			(21	)			(20	)			(19	)			(19	)			(20	)			7	%
Net interest income (expense)			3				1				1				(1	)			1				112	%
Net investment (loss) income			(42	)			11				17				24				19				N/M
Loan servicing expenses			0				0				0				0				0				N/M
Loan collection and liquidation			0				0				0				0				0				N/M
Other expenses			0				0				0				0				0				N/M
Total expenses			0				0				0				0				0				N/M
Pretax (loss) income			(42	)			11				16				24				19				N/M
Weighted average equity allocated			409				411				390				354				430				(5	)%
Annualized ROE			(41	)%			11	%			17	%			27	%			17	%			N/M

May not sum due to rounding

Credit Sensitive Strategies Segment Key Metrics

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
Organically-created CRT investments (at period end)
Fair value			878				938				962				998				1,019				(14	)%
Underlying UPB			16,878				18,090				18,716				19,518				19,937				(15	)%
60+ day delinquency rate			1.4	%			1.2	%			1.4	%			1.5	%			1.5	%			(0.1	)%
Weighted average current LTV			45.1	%			45.4	%			46.4	%			46.2	%			46.0	%			(0.9	)%
Private label securitization activity
Fair value of subordinate MBS held in VIE from PMT private label securitizations (at period end)			930				853				735				546				361				158	%
Securitizations completed			8				6				8				8				4				100	%
UPB of securitizations completed			2,875				2,182				2,838				2,796				1,472				95	%
Retained credit sensitive investments			135				120				189				184				84				60	%

May not sum due to rounding

 

10

Interest Rate Sensitive Strategies Segment Profitability and Key Metrics

($ in millions)

Interest Rate Sensitive Strategies Segment Contribution to Pretax Income

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
Servicing and other fees			144				149				151				155				156				(7	)%
Realization of MSR cash flows			(85	)			(100	)			(107	)			(104	)			(89	)			(5	)%
Changes in fair value of MSRs due to changes in fair value inputs			210				19				46				26				(27	)			N/M
Hedging results			(31	)			(33	)			(12	)			(45	)			(27	)			13	%
From PFSI–MSR recapture income			3				5				6				4				3				(12	)%
Net loan servicing fees			242				40				84				37				15				1468	%
Mortgage-backed securities			(167	)			0				(33	)			31				38				N/M
Loans at fair value			49				12				(6	)			(3	)			8				N/M
Net (losses) gains on investments and financings			(118	)			12				(39	)			28				47				N/M
Interest income			242				237				215				189				174				39	%
Interest expense			(305	)			(257	)			(228	)			(201	)			(179	)			70	%
Net interest (expense)			(63	)			(20	)			(13	)			(12	)			(5	)			1063	%
Net investment income			61				32				31				53				57				8	%
Loan servicing expenses			20				20				20				20				21				(3	)%
Loan collection and liquidation			3				2				2				2				1				75	%
Safekeeping			1				1				1				1				1				(18	)%
Other expenses			1				1				1				1				1				119	%
Total expenses			25				23				24				24				24				4	%
Pretax income			36				9				8				28				32				11	%
Weighted average equity allocated			1,197				1,187				1,198				1,189				1,154				4	%
Annualized ROE			12	%			3	%			3	%			10	%			11	%			1	%

May not sum due to rounding

Interest Rate Sensitive Strategies Segment Key Metrics

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
MSR Portfolio (at period end)
Underlying UPB(1)			192,136				208,427				212,199				215,782				218,799				(12	)%
Fair value			3,514				3,576				3,624				3,645				3,669				(4	)%
Weighted average coupon			3.9	%			3.9	%			3.9	%			3.9	%			3.9	%			—
Weighted average servicing fee			0.28	%			0.28	%			0.28	%			0.28	%			0.28	%			—
MSR multiple			6.6x				6.2x				6.2x				6.1x				6.1x				0.5x
Fair value of MBS portfolio (at period end)			4,306				4,076				3,766				4,453				4,609				(7	)%
Fair value of senior MBS held in VIE from PMT private label securitizations (at period end)			108				84				94				93				103				5	%
Retained interest rate sensitive investments from private label securitizations			32				0				12				0				50				N/M

 

(1)	Owned MSR portfolio and excludes loans acquired for sale at fair value

 

11

Aggregation and Securitization Segment Profitability and Key Metrics

($ in millions)

Aggregation and Securitization Segment Contribution to Pretax Income

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
Net gains on loans acquired for sale			5				15				23				7				15				(65	)%
Interest income			47				43				40				39				33				42	%
Interest expense			(37	)			(32	)			(32	)			(33	)			(28	)			32	%
Net interest income			10				11				8				6				5				96	%
Other income			1				2				2				3				3				(57	)%
Net investment income			16				29				33				16				23				(30	)%
Loan fulfillment expenses			3				5				6				7				6				(48	)%
Professional services			11				9				11				11				7				64	%
Safekeeping			0				0				0				0				0				(91	)%
Loan origination fees			0				0				0				0				1				(100	)%
Other expenses			0				3				0				0				0				(8	)%
Total expenses			14				17				17				17				14				3	%
Pretax income (loss)			2				11				16				(1	)			9				(78	)%
Weighted average equity allocated			178				215				201				200				176				2	%
Annualized ROE			5	%			21	%			33	%			(2	)%			21	%			(16	)%

May not sum due to rounding

Aggregation and Securitization Segment Key Metrics

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
Interest rate locks (UPB)
Conventional Conforming			0				1,357				2,364				3,282				3,364				(100	)%
Jumbo			730				1,239				1,107				700				1,036				(30	)%
Non-QM			549				582				236				107				0				N/M
Total			1,279				3,177				3,706				4,088				4,399				(71	)%
Acquisitions (UPB)
Conventional Conforming			52				1,371				2,062				2,903				2,786				(98	)%
Jumbo			747				918				647				748				557				34	%
Non-QM			400				276				88				32				0				N/M
Total			1,199				2,565				2,797				3,682				3,343				(64	)%
PFSI loans acquired for inclusion in private label securitizations (UPB)			2,078				2,224				1,540				1,810				1,296				60	%
Total UPB of loans acquired			3,276				4,789				4,336				5,493				4,639				(29	)%

May not sum due to rounding

 

12

Corporate Profitability

($ in millions)

 

		3Q26				2Q26				1Q26				4Q25				3Q25				Y/Y
Interest income			2				3				3				2				2				(16	)%
Interest expense			(1	)			(2	)			(2	)			(1	)			(1	)			(2	)%
Net interest income			1				0				1				1				1				(36	)%
Net investment income			1				0				1				1				1				(36	)%
Management fees			7				7				7				7				7				(2	)%
Professional services			2				2				3				3				2				(15	)%
Compensation			3				3				3				3				3				(7	)%
Other expenses			2				2				2				2				3				(12	)%
Total expenses			13				15				15				16				14				(7	)%
Pretax loss			(13	)			(15	)			(14	)			(15	)			(13	)			(4	)%
Weighted average equity allocated			55				58				101				139				119				(54	)%
Annualized ROE(1)			(3	)%			(3	)%			(3	)%			(3	)%			(3	)%			—

May not sum due to rounding

 

(1)	Calculated as a percentage of total equity

 

13

Consolidated Balance Sheets

($ in millions)

 

		9/30/26				6/30/26				3/31/26				12/31/25				9/30/25				Y/Y
Assets
Cash			161				225				214				272				263				(39	)%
Short-term investments			149				196				188				191				181				(18	)%
Mortgage-backed securities at fair value			4,306				4,076				3,766				4,453				4,609				(7	)%
Loans held for sale at fair value			2,871				3,195				2,350				2,699				2,421				19	%
Loans held for investment at fair value			14,401				12,458				10,868				8,533				5,983				141	%
Derivative assets			59				49				55				56				58				0	%
Deposits securing credit risk transfer arrangements			887				948				970				1,009				1,033				(14	)%
Mortgage servicing rights			3,514				3,576				3,624				3,645				3,669				(4	)%
Servicing advances			62				64				79				97				62				1	%
Other assets			444				306				390				393				246				80	%
Total assets			26,854				25,094				22,503				21,347				18,526				45	%
Liabilities
Assets sold under agreements to repurchase			8,382				8,395				7,301				8,019				7,708				9	%
Notes payable secured by credit risk transfer and mortgage servicing assets			2,503				2,481				2,397				2,258				2,249				11	%
Unsecured senior notes			686				685				685				1,028				877				(22	)%
Asset-backed financings of variable interest entities at fair value			13,146				11,359				9,904				7,789				5,440				142	%
Interest-only security payable at fair value			35				34				34				38				37				(5	)%
Derivative and credit risk transfer strip liabilities at fair value			28				10				27				9				12				128	%
Other liabilities			291				275				289				318				325				(10	)%
Total liabilities			25,071				23,240				20,636				19,460				16,646				51	%
Shareholders’ equity
Preferred shares of beneficial interest			541				541				541				541				541				—
Common shares of beneficial interest			1				1				1				1				1				0	%
Additional paid-in capital			1,930				1,929				1,928				1,928				1,927				0	%
Accumulated deficit			(689	)			(618	)			(604	)			(583	)			(590	)			17	%
Total shareholders’ equity			1,783				1,853				1,867				1,887				1,879				(5	)%

May not sum due to rounding

 

14