PennyMac Mortgage Investment Trust (NYSE:PMT) saw its stock price plummet 5.15% in pre-market trading on Wednesday following the release of its disappointing first-quarter 2025 financial results. The mortgage real estate investment trust reported a net loss and declining book value, raising concerns among investors.

Key highlights from PMT's Q1 2025 earnings report include: - A net loss of $1 million to common shareholders, resulting in negative $0.01 diluted earnings per share - Book value per share decreased to $15.43 as of March 31, down from the previous quarter - Correspondent loan acquisition volume fell 18% quarter-over-quarter to $23 billion - Net income excluding market-driven changes declined to $41 million from $51 million in the prior quarter - Run rate return potential decreased to a quarterly average of $0.35 per share, down from $0.37 per share

Despite the negative results, PennyMac Mortgage Investment Trust declared a first-quarter common dividend of $0.40 per share. The company's management highlighted its diversified investment portfolio and strong risk management practices as factors helping it navigate challenging market conditions. However, the decline in key financial metrics and origination volumes appears to have shaken investor confidence, leading to the significant stock price drop.