Pennymac Mortgage Investment Trust · NYSE:PMT
Pennymac Mortgage Investment Trust — Barclays 2013 Global Financial Services Conference
12 slides from Pennymac Mortgage Investment Trust's conference presentation, Sep 11, 2013
Slide 1: PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust September 11, 2013 Barclays 2013 Global Financial Services Conference
Slide 2: Forward-looking statements
2 This presentation 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
Slide 3: PennyMac Mortgage Investment Trust Is a Unique Mortgage REIT
PennyMac Mortgage Investment Trust Is a Unique Mortgage REIT 3 Demonstrated record of strong EPS and dividends, focused on delivering superior returns to investors over the long term Employs unique residential mortgage strategies with relatively limited leverage Earnings contributions from both dist
Slide 4: PMT's Unique Business Model Drives Superior Long-Term Performance
4 PMT’s Unique Business Model Drives Superior Long-Term Performance 13% 16% 15% 13% 17% 16% 17% 18% Return on Equity(2) (1) At quarter end. (2) Return on average equity (calculated based on average shareholders’ equity for each month) 18% (right axis) (1) Barclays 2013 Global Financial Services Conf
Slide 5: Strong pretax earnings contributions from both Investment Activities and Correspondent Lending
5 Strong pretax earnings contributions from both Investment Activities and Correspondent Lending Pretax Income by Operating Segment Barclays 2013 Global Financial Services Conference (1) Corporate absorption of fulfillment fees for transition adjustment resulting from an amendment to the Mortgage Ba
Slide 6: PMT's Investments Are Well-Positioned in the Current Market Environment
6 PMT’s Investments Are Well-Positioned in the Current Market Environment Mortgage Assets ($ in millions) PMT’s Long-Term Investments (1) Defined as all debt, senior and subordinated, as a multiple of equity at quarter end. 1.7x 1.3x 1.0x 0.9x 1.3x Leverage Ratio(1) Mortgage servicing rights that sh
Slide 7: Market Outlook
Market Outlook 7 Correspondent Lending Competition Jumbo Private-Label Securitization Mortgage Rates and Housing Increased mortgage rates have significantly reduced refinance activity since early May Total mortgage originations forecast to decline from ~$1 trillion in 1H13 to $500 - $700 billion in
Slide 8: Distressed Whole Loan Acquisitions Continue in 2Q13
8 Distressed whole loan purchases in 2Q13 were $397 million in UPB Acquired a $494 million UPB pool of nonperforming whole loans in July Acquired an additional pool of nonperforming loans with UPB totaling $436 million in August Pipeline of opportunities remains robust; year-to-date acquisitions exc
Slide 9: Correspondent Growth Initiatives Continue in Face of Market Slowdown
Correspondent Acquisition Volume and Mix 9 Correspondent Growth Initiatives Continue in Face of Market Slowdown (1) For Government loans, PMT earns a sourcing fee and interest income for its holding period and does not pay a fulfillment fee. ($ in billions) UPB 2Q13 Correspondent acquisitions were f
Slide 10: Continued Progress in Prime Jumbo Acquisitions and Securitization
Continued progress in expanding PMT’s jumbo loan program with correspondent sellers PMT purchased $393 million in UPB of prime non-agency jumbo mortgage loans in July Pool comprised entirely of prime quality, newly originated mortgages Acquired loans will be securitized with other jumbo loans acquir
Slide 11: PMT Is Investing in Many Attractive Opportunities Including New Areas
11 PMT Is Investing in Many Attractive Opportunities Including New Areas Distressed whole loans remain attractive $1.8 billion in acquisitions year-to-date; pipeline appears robust through 2014 Correspondent lending continues to deliver attractive returns and drive growth in our MSR investment MSRs
Slide 12: 12 Barclays 2013 Global Financial Services Conference
12 Barclays 2013 Global Financial Services Conference
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