Saxon Capital Group Inc. · OTC:SCGX
Saxon Capital — Q1 2006 Earnings Presentation
20 slides from Saxon Capital's earnings presentation, May 9, 2006
Slide 1: Saxon Capital, Inc. March 31, 2006
Saxon Capital, Inc. March 31, 2006
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this presentation other than statements of historical fact, are “forward-looking statements” that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect Saxon’s future plan
Slide 3: Who We Are
Who We Are Taxable REIT Subsidiary (TRS) Production and Servicing Channels Qualified REIT Subsidiary (QRS) Owned Portfolio Saxon is a residential mortgage lender mortgage assets. Saxon originates, purchases, securitizes, and services real property secured mortgages, and elects to be treated as a rea
Slide 4: Originate/Purchase Mortgage Loans, Securitize, Core Competencies
Originate/ Purchase Mortgage Loans Securitize Loan Performance Core Competencies Underwriting Capital Markets Servicing
Slide 5: Saxon's Strategy
Growth in Dividend and Capital Portfolio Growth Breadth Of Product Line Investment In Technology 3 rd Party Servicing Growth Saxon’s Strategy
Slide 6: Saxon's Strategy
Saxon’s Strategy QRS TRS • Growth in Owned Portfolio • Maintain Pricing Discipline • Maintain Credit Discipline • Growth in Originations • Growth in 3 rd Party Servicing • Technology investments to drive costs down • Whole loan sales
Slide 7: Diluted EPS and Revenue
Dikted EPS mac eat $225 — gat 03 286% spony 2.24] ($005) gos 2002 2008 2008 200s 49.2008, ee eee ae Revenue Sarenoer equ (00) sesasre 4280.82 ftsorors BSUS teagan tairose ser ese tans tose
Slide 8: Sources of Portfolio Growth
Sources of Portfolio Growth Portfolio Growth $3,4 95 Retail 25.7% Wholesale 45.8% Correspondent Flow 24.1% Correspondent Bulk 9.7% Originations – 3/31/06 Production ($ in millions)* * Does not include called loans.
Slide 9: Portfolio Geographic Dispersion
Portfolio Geographic Dispersion
Slide 10: First Quarter 2006 Production Statistics
First Quarter 2006 Production Statistics
Slide 11: Credit & Servicing Statistics
Credit & Servicing Statistics
Slide 12: Servicing Portfolio
Servicing Portfolio $20.3 billion = 76% $6.5 billion = 24%
Slide 13: Portfolio credit score distribution by year
2006 2005 2004 2002 2001 2000 19.56% 24.98% 31.11% 44.32% 29.19% 17.94% PEST 34.07% 33.90% 30.94% 20.56% 24.56% 18.48% ESE 33.65% 28.02% 23.35% 23.22% 29.28% 36.65% 40.93% 526-550 | 7.46% 7.22% 7.84% 16.60% PRES < 525 5.21% 5.74% 640% 11.33% FRERaS Other 0.60% 0.13% 0.36% * Ms Saxon Capital, Inc
Slide 14: Performance: Static Pool Delinquency
Performance: Static Pool Delinquency – = 6.5% 2003 = 10.4% = 3.1% 2004 = 26.0% = 5.3% 2005 = 38.1% = 10.6% Outstanding Portfolio Balance by Year:
Slide 15: Performance: Saxon Portfolio Static Pool Losses by Year of Origination
Performance: Saxon Portfolio Static Pool Losses by Year of Origination
Slide 16: Performance: Static Pool Losses by Year of Origination
Performance: Static Pool Losses by Year of Origination Total Cumulative Losses: = 4.11% 2001 = 3.95% 2004 = 0.16% = 5.17% 2002 = 1.78% = 5.76% 2003 = 0.57%
Slide 17: Loss Severity Data as of 6/30/05
Loss Severity Data as of 6/30/05
Slide 18: 2004 Delinquency by Credit Score: Saxon vs. Peer Group
Data as of 6/30/05 Performance: 2004 Delinquency by Credit Score Saxon vs. Peer Group Benchmark Securities: ABFC, ABS, ACE, AMERIQUEST, ARC/SASCO, ARGENT, BEAR STEARNS, C-BASS, CENTEX, CHASE FUNDING, COUNTRYWIDE, CSFB, DELTA, DLJ, EQUICREDIT, EQUITY ONE, FIELDSTONE, FIRST FRANKLIN, FREMONT, GSAMP/GS
Slide 19: Summary
Strong Management Existing Portfolio Servicing Platform Discipline Summary • SAX has a culture of discipline in growth, credit, and servicing. • Creating assets for our balance sheet and managing a REIT require similar discipline. • SAX has a servicing platform that is highly rated and scalable. • S
Slide 20: Thank You for Your Investment
Thank You for Your Investment www.saxonmortgage.com