PennyMac Mortgage Investment Trust on Tuesday reported first quarter earnings that were less than Wall Street expected.

The Calabasas company, created by former Countrywide Financial Corp executives late last year to buy distressed home loans, reported net income of $1.3 million (7 cents per share) on total net investment income of $3.9 million for the fiscal first quarter ended March 31. This was the company’s initial first quarter report.

Analysts surveyed by Thomson Reuters on average expected the company to earn 9 cents a share. The company reported a 7 cents per share loss in the fourth quarter.

The company said it acquired five whole-loan portfolios using $115 million in capital and purchased an additional whole-loan pool of non-performing loans valued at $71 million, with an unpaid principal balance of $141 million.

“We are starting to see a stabilization of real estate values, with the economy showing some signs of improvement,” said Chief Executive Officer Stanford Kurland in a statement.

Shares were down 12 cents, or less than 1 percent at $17.54 in midday trading on the New York Stock Exchange.