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valuation-related XX%, $XX.XX average up in share Slide prior The of performance common the PMT with growth prior first equity $X.XX dividend results share on Book attributable at share was $XX.X that end paid XX% quarter the or PMT to per $X.XX per of prior and Let’s $XX.XX net per compared quarter. from million reported our annualized X. or CRT quarter. XX, the strong income at reversed in tightening spread common of and return common for XXXX, continued from investments share from quarter. a reflects December value increased the quarter investment quarter. shareholders to the begin to credit PMT’s losses $XX.X resulting million of per from $X.XX
operating corporate, and which Our segments: strategies contributed MBS interest on $X.X of MSRs million sophisticated excess rights contributed losses Production, an our and a PMT from pretax through on strategies, loss management positions. with which interest and assets. X pretax million. offset totaled reflect Fair risk rate risk gain million million in results rates pretax mortgage in declining Credit Correspondent income; servicing the rate mitigated reports of which Strategies, of value effectiveness income; Sensitive hedged $XX.X pretax contributed $XX.X income; $XXX,XXX results were $XX.X servicing in million and partially also spread and impact of by $XXX.X value fair largely our that the ESS the
in structure prior totaled during $XXX eligible totaled MSR from CRT to commitments loan own MSR CRT and to purchase XX% CRT secured quarter. announce I $X billion grow in this X million, production $XXX by term Correspondent am the to notes million. for financing resulting pleased UPB, investments added the securities structure, $X.X quarter new CRT From X-year the quarter, of PMT’s we totaling term issued our first for a Production that capital deals, new in PMT that provides groundbreaking introduction discuss core its will investments. later and During I Conventional continued new CRT the financing from financing cost UPB, in similar presentation. at a billion down repurchase totaled activities. and new effective firm deliveries more improved its efficiency. resulted replacing providing short-term Loans detail first my this in securities investments structure
let’s our of X, Slide highlights. to discuss review Turning first the quarter
our in on reducing distressed investments loans. goal prudently We of our continued mortgage executing
into Combined, after of $XX agreements sales and the portfolio’s quarter, UPB the During we entered to these distressed from UPB loans XX, of XX% portfolio. the distressed approximately approximately million at March represent sell XXXX. nonperforming in
of which common in raised in underwritten equity, of The new million from issuance program. from approximately X our $XXX equity we the $XXX $X.X the Market, was equity and proceeds Finally, launched At from of common recently which issuance shares an million issuance was offering, of or net ATM, million common million
total of in a million raises I as my outlook, Our will capital allow. ATM conditions $XXX PMT’s which These growth later by raise presentation. the driven potential additional with program of us favorable to discuss provides capital were
market to environment. and Now let’s the discuss Slide turn current X
fixed increases driving significant lower the The was points basis a quarter average first on clarity quarter market for in volumes. XX-year providing of increase Federal expectations The XXXX quarter, refinancing the rate average greater this by Reserve the prior year. saw for conditions rate rate aided improved the than further in XX
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in in quarter. the and all-time GSE improvement credit continued overall and widening of the first at U.S. reversing economy regarding sentiment of an by spreads And saw securities near the investments finally, on XXXX, the to Credit during strong XX market the levels trends. delinquency XX, quarter. remained strength credit risk during tightened also basis XX points their supported the fourth improved We March quarter, employment transfer lows,
have organically Combined PMT’s turn X investments, of its let’s our to PMT’s business. a are Correspondent rate-sensitive Slide PMT’s of mortgage sourced mortgage-related that comprised attractive through Production high-quality its element REITs. discuss credit-sensitive interest A of of Now truly portfolio investments investments strong key residential among with sheet. assets. are The sheet we majority and balance created is balance performance high-quality unique and
and was investments a market investment has But CRT. our mortgage has rate-sensitive loans. in mortgage have focus the and evolved. attractiveness interest to that opportunities also PMT of the as investor leading investment As time, our investment strategies the composition shifted changed diminished, distressed over of
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unique conforming majority Fannie those credit CRT produce. create partnership and in of our production, we from conventional the transfer Mae, we with of leadership risk now we investments loans in As result developed investments a loan position a
that rights a servicing and risk through a returns of essentially vetted on credit a are collateral growing at also leverage is support XXXX GSE growth the over of future we utilizing acquisition XX, on alignment billion REITs. have the attractive we $X.X $X.X creates with on the for strong that mortgage interest investments interest to Supporting process on position capitalize from at investments versus billion a loans equity. institutional the and investment have We XXXX, PMT’s experienced solid several mortgage-related PMT opportunities. residual structure owning relatively growth the growth years, we this bank that other the of investors. strong comprehensive comprised past in and loan this new loans to and, partnerships March end strong produce low which, our mortgage CRT rights. other financing Our places includes servicing diverse believe own believe We
our warehouse term that financing asset. financing $X have to growth volumes, CRT capacity Mae billion sized and an investments of and We of optimizes for line leverage of amounts includes capacity support over financing MSR our MSR which production now significant liquidity on Fannie structure financing
Slide let’s long-term for and strategies growth. discuss turn Now to PMT’s X
and investments for market Our growth and opportunities leadership PMT continue into of deploying MSRs. drives CRT in conventional conforming capital the to its position core
deployment this result, the million and conditions months. are of $XXX the market MSR will we dependent of upon new between level the for interest deployment forecasting year. within the remainder and into over $XXX of and million the Actual be range XX a investments rates next equity As CRT of
include products seek opportunities about we non-QM to financing investments loan recently these also of evolving address investment needs to from expand time. products HELOCs We products and prospects in our products. Financial, by prime new the optimistic are over launched today’s sourced and consumer growth These PennyMac including manager, marketplace,
deployment take result, into we However, time a to capital not as And significant expect do these XXXX. scale. these will investments in initiatives
our discuss term structure to financing Now our let’s note X and for Slide innovative investments. CRT turn
benefits, the financed to XX% XX%. CRT asset rate term improve structure, mentioned note to CRT its of term finance issued completed effectively PMT structure of expected investors certain investments. through internal alignment to I of life and the institutional increase more through reserves As million significant X-year in secured during returns earlier, include also $XXX The exposure cash diversify equity transactions. a new structure the investments notes reduction replace notes other related PMT’s CRT call elimination recently the financing our secured the financing to structure. provides Through similar first to to CRT financing first and cost The related three we funds. an of launched better totaling at CRT quarter, including finance from notes new on the counterparties term settled from margin a advance our approximately term short-term Furthermore, of the currently
structure investments utilize CRT eventually term all this of We of finance expect to and to repeat grow. to issuer notes new CRT our become a investments our as
to PMT’s strategies. the turn review X let’s and potential Now of return run-rate quarterly Slide
PMT’s run-rate result annualized Our XX%. per over PMT’s potential run-rate of our quarter, an which returns on quarters. the EPS is for in would $X.XX diluted reflects of for approximately expectation expectation activities equity a return several next common
results portfolio. related consider to and Equity equity is from results this average to an continued run-rate our on strategies of aggregate, of I reflects potential of impact continued is sensitive income also annualized an driven for run-rate expectations annualized XX%, discussed credit Our from XX% on significantly rate the expected correspondent allocation smaller loan with organically reduced the sensitive the our for with expected investments. in a driven The of and distressed segment performance as equity activities. MSRs by interest growth production earlier. expectations by to strong return equity XX.X%. We XX%, CRT return from growth PMT’s strategies CRT allocated
equity mortgage outlook Executive by David an investment expected that return Our correspondent the to production production of and for is to growing competitive Spector, Officer, expectations from like our our This for deliver segment the on now are outlook to which turn foreseeable the primarily contributions concludes the the MSR annualized over continue activities. will driven I’d The earnings President prevailing review XX.X%, presentation. reflects who environment future. Chief our my will discussion PMT’s asset.
