8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 3, 2010

PennyMac Mortgage Investment Trust

 (Exact Name of Registrant as Specified in Charter)

Maryland	001-34416	27-0186273
(State or Other Jurisdiction of	(Commission	(I.R.S. Employer
Incorporation or Organization)	File Number)	Identification No.)

27001 Agoura Road, Calabasas, California	91301
(Address of Principal Executive Offices)	(Zip Code)

(818) 224-7442

 (Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On May 3, 2010, PennyMac Mortgage Investment Trust (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended March 31, 2010.  A copy of the press release and the slide presentation used in connection with the Company’s recorded earnings call on May 4, 2010 are furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

The information in this report, including the exhibits hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of Section 18, nor shall it be deemed incorporated by reference into any disclosure document relating to the Company, except to the extent, if any, expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release, dated May 3, 2010, issued by PennyMac Mortgage Investment Trust pertaining to its financial results for the fiscal quarter ended March 31, 2010.
99.2	Slide Presentation for use on May 4, 2010 in connection with PennyMac Mortgage Investment Trust’s recorded earnings call pertaining to its financial results for the fiscal quarter ended March 31, 2010.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PENNYMAC MORTGAGE INVESTMENT TRUST
Dated:   May 5, 2010
	/s/ Anne D. McCallion
	Anne D. McCallion
	Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated May 3, 2010, issued by PennyMac Mortgage Investment Trust pertaining to its financial results for the fiscal quarter ended March 31, 2010.
99.2	Slide Presentation for use on May 4, 2010 in connection with PennyMac Mortgage Investment Trust’s recorded earnings call pertaining to its financial results for the fiscal quarter ended March 31, 2010.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE	Contact:
	Kevin Chamberlain
	Managing Director, Corporate Communications
	(818) 224-7028

PennyMac Mortgage Investment Trust Reports First Quarter 2010 Results

Calabasas, CA May 4, 2010 – PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income for the first quarter of 2010 of $1.3 million, or $0.07 per share, on total net investment income of $3.9 million.

During the first quarter of 2010, the Company acquired 5 residential mortgage whole loan pools valued at $115 million in aggregate, with unpaid principal balances at the time of purchase of $208 million.  The loans from these purchases were primarily non-performing loans with 86% of the loans either 90 days or more delinquent, or in the foreclosure process.  These transactions bring the total value of PMT’s residential mortgage whole loans and residential mortgage-backed securities as of March 31, 2010 to $200 million.  PMT also closed a transaction in April, after the end of the first quarter, to purchase an additional mortgage whole loan pool of non-performing loans valued at $71 million with an unpaid principal balance of $141 million.

During the quarter ended March 31, 2010, PMT recorded net investment income totaling $3.9 million.  The following is a summary of the Company’s net investment income for the quarter:

	Net Investment Income		Ending Balance		Annualized interest yield
	(dollars in thousands)
Short-term money market investment	$	45	$	115,485		0.10	%
Mortgage-backed securities:
Non-agency subprime		600		35,817		6.58	%
Non-agency Alt-A		611		24,582		7.64	%
Non-agency prime jumbo		130		15,990		3.76	%
Total mortgage-backed securities		1,341		76,389		6.32	%
Mortgage loans		2,468		123,464		8.82	%
	$	3,854	$	315,338		3.37	%

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During the quarter, the Company’s investment holdings in short-term money market investments shifted to longer-term, higher returning residential mortgage whole loans.  However, most of the acquisitions were completed during the latter part of the quarter and the quarterly results therefore may not reflect the full potential yield on these assets had they been held for the complete reporting period.  During the quarter, PMT recognized an annualized yield of 8.82% on its residential whole loan portfolio.

With the closing of its $71 million transaction in April, together with its previous loan and securities acquisitions, the Company has now deployed a substantial amount of the initial capital raised in its initial public offering.  With this in mind, the Company has begun working on its first securitization to provide additional capital and increase PMT’s investment capacity.  While there is no guarantee that the securitization will be successfully completed, PMT is targeting completion in the second quarter.  In addition, the mortgage whole loan portfolio will continue to produce cash flows as current loans pay down and non-performing loans become resolved.  The Company’s short-term MBS, valued at $76 million, may also be re-invested into higher yielding, longer-term residential whole l oan opportunities as they arise.

Stanford L. Kurland, Chairman and Chief Executive Officer of PMT, stated, “Market activity for non-performing whole loans accelerated throughout the first quarter, and continues to accelerate into the second quarter of 2010.  Our investment manager was well positioned to capitalize on this increased activity and, as a result, PMT successfully completed 5 whole loan acquisitions in the first quarter, deploying $115 million in capital.  PMT also purchased an additional residential whole loan pool in April for $71 million.”

“In addition to our acquisition of distressed whole loans, we are moving forward with our prime agency conduit, having purchased our first loans into the conduit in April,” continued Mr. Kurland.  “We expect to proceed gradually with our conduit business throughout the rest of 2010.  As PMT builds out its capabilities, we will continue to look to play an integral role in the re-emergence of the mortgage market; however, the Company plans to proceed at a measured and patient pace, consistent with the approach used in our acquisitions of mortgage whole loans.”

“As we look forward, we continue to see attractive opportunities in the marketplace,” concluded Mr. Kurland.  “We are starting to see a stabilization of real estate values, with the economy showing some signs of improvement.  The securitization market is starting to make a comeback as well, with a recent announcement of the first newly originated jumbo securitization in approximately 2 years.  We are encouraged by these events and feel that PMT is well positioned to capitalize on the variety of opportunities that will arise as the markets continue to improve.”

Management’s recorded earnings call and slide presentation will be available in the Investor Relations section of the Company’s website at www.PennyMacMortgageInvestmentTrust.com beginning at 5:30 a.m. (PT) on Tuesday, May 4, 2010.

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About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust is a recently formed mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets.  PennyMac Mortgage Investment Trust trades on the New York Stock Exchange under the symbol "PMT" and is externally managed by PNMAC Capital Management, LLC, a wholly owned subsidiary of Private National Mortgage Acceptance Company, LLC.  Additional information about PennyMac Mortgage Investment Trust is available at www.pennymacmortgageinvestmenttrust.com.

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. 
60;Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein.  Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to:  changes in general business, economic, market and employment conditions from those expected; continued declines in residential real estate and disruption in the U.S. housing market; the availability of, and level of competition for, attractive risk-adjusted investment opportunities in residential mortgage loans and mortgage-related assets that satisfy our investment objectives and investment strategies; changes in our investment or operational objectives and strategies, including any new lines of business; the concentration of credit risks to which we are exposed; the availability, terms and deployment of short-term and long-term capital; unanticipated increases in financing and other costs, including a rise in interest rates; the performance, financial condition and liquidity of borrowers; increased rates of delinquency or decreased recovery rates on our investments; increased prepayments of the mortgage and other loans underlying our investments; changes in regulations or the occurrence of other events that impact the business, operation or prospects of government sponsored enterprises; changes in government support of homeownership; changes in governmental regulations, accounting treatment, tax rates and similar matters; and our ability to satisfy complex rules in order to qualify as a REIT for U.S. federal income tax purposes.  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 fo rward-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.

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PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(unaudited)

	March 31, 2010			December 31, 2009
ASSETS
Cash	$	2,125		$	54
Short-term investment		115,485			213,628
Mortgage-backed securities at fair value		76,389			83,771
Mortgage loans at fair value		123,464			26,046
Real estate acquired in settlement of loans		1,511			—
Principal and interest collections receivable		6,491			—
Interest receivable		602			492
Due from affiliates		51			—
Other assets		570			455
Total assets	$	326,688		$	324,446
LIABILITIES
Accounts payable and accrued liabilities	$	563		$	527
Contingent underwriting fees payable		5,883			5,883
Income taxes payable		127			—
Payable to affiliates		4,635			4,238
Total liabilities		11,208			10,648
Commitments and contingencies		—			—
SHAREHOLDERS’ EQUITY
Common shares of beneficial interest—authorized, 500,000,000 shares of $0.01 par value; issued and outstanding, 16,735,317 shares		167			167
Additional paid-in capital		315,942			315,514
Accumulated deficit		(629	)		(1,883	)
Total shareholders’ equity		315,480			313,798
Total liabilities and shareholders’ equity	$	326,688		$	324,446

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PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except share data)

(unaudited)

	Quarter ended March 31, 2010
Investment Income
Interest income:
Mortgage-backed securities	$	1,284
Mortgage loans		1,335
Other		45
		2,664
Change in fair value of investments:
Mortgage-backed securities		57
Mortgage loans		1,133
		1,190
Net investment income		3,854
Expenses
Management fees		1,211
Compensation		803
Insurance		197
Professional services		94
Other		168
Total expenses		2,473
Income before provision for income taxes		1,381
Provision for income taxes		127
Net income	$	1,254
Earnings per share, basic and diluted	$	0.07
Weighted average shares outstanding: Basic		16,735
Diluted		17,110

 (end)

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EX-99.2

Exhibit 99.2