Good afternoon, and welcome to the first quarter discussion for PennyMac Mortgage Investment Trust. The slides that are accompanying this discussion are available on PennyMac Mortgage Investment Trust's website at pmt.pennymac.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 first quarter 2023 results.

Thank you, Isaac. PMT reported strong earnings in the first quarter of 2023, as solid results from its credit-sensitive strategies and income excluding the impacts of market-driven fair value changes, were partially offset by fair value declines in its interest rate-sensitive strategies, which drove a tax benefit. Net income to common shareholders was $50 million or $0.50 per common share, representing an annualized return on equity of 14%. Net of the $0.40 dividend, book value per share was up to $15.96. PMT spent $8 million on share repurchases in the first quarter, and it remains an attractive use of capital when PMT's share price is well below book value per share. Dan Perotti, Senior Managing Director and Chief Financial Officer, will review additional details of PMT's financial performance later on in this discussion. With mortgage interest rates currently still above 6%, the most recent third-party forecast for 2023 originations range from $1.6 billion to $1.8 trillion, down meaningfully from 2022. While many industry participants have taken the appropriate steps to reduce capacity, the pace of that reduction has been slow, and we believe overcapacity still remains. That being said, average quarterly origination forecast for the remainder of 2023 are meaningfully higher than the industry's estimated origination volumes in the first quarter, consistent with our own expectations as we move into the more typical home buying season. Originations in 2024 are currently expected to approach more normalized levels with estimates suggesting an origination market above $2 trillion. It is our expectation that mortgage REITs with diversified investment portfolios, efficient cost structures and strong risk management practices such as PMT, are best positions to manage through the volatility presented by the current market environment. Throughout April, market credit spreads have continued to tighten, and we continue to see improvements in the structured…

Thank you, David. PMT reports results through 4 segments: credit-sensitive strategies, which contributed $57.3 million in pretax income; interest rate-sensitive strategies, which contributed $7 million in pretax loss; correspondent production, which contributed $1.8 million in pretax income; and the corporate segment, which had a pretax loss of $13.3 million. PMT also recorded an income tax benefit of $22 million. During the quarter, PMT repurchased more than 600,000 shares of common stock for $8 million at an average price of $11.85, significantly below current book value per share. And through April 25, PMT repurchased an additional nearly 700,000 shares for $8 million at $12.08 per share. I would like to start by discussing PMT's credit-sensitive strategies, which primarily consist of investments in organically created CRT from PMT's production, investments in non-agency subordinate bonds from private-label securitizations of PMT's production and opportunistic investments in GSE CRT. Income from PMT's organically created CRT investments this quarter totaled $45.4 million. This amount included $30.9 million in market-driven fair value gains, reflecting the impact of tighter credit spreads. Gains on PMT's organically created CRT investments also included $16.6 million in realized gains and carry, $1.3 million of net realized losses recognized during the period, $14.2 million in interest income on cash deposits and $15 million of financing expenses. The fair value of PMT's organically created CRT investments as of March 31 was $1.1 billion, essentially unchanged from the prior quarter as increases from fair value gains offset declines from prepayments. As David mentioned, the outlook for our current investments in organically created CRT remains favorable, with an underlying current weighted average loan-to-value ratio of 54%. The 60-plus day delinquency rate for these investments decreased slightly to 1.18% at March 31 from 1.25% at December 31. During and after the first quarter, we invested $64 million…

Thanks, Dan. We continue to see attractive opportunities to deploy capital into new investments as well as the repurchase of our shares well below book value. Given PMT's seasoned investment portfolio with solid underlying fundamentals and a strong balance sheet, I remain optimistic for continued strong financial performance in 2023. We encourage investors with any questions to contact our Investor Relations team by e-mail or phone. Thank you.

This concludes PennyMac Mortgage Investment Trust's first quarter earnings discussion. For any questions, please visit our website at pmt.pennymac.com or call our Investor Relations department at (818) 224-7028. Thank you.