Pennymac Financial Services, Inc. · NYSE:PFSI
Pennymac Financial Services — Credit Suisse Financial Services Conference 2014
10 slides from Pennymac Financial Services's conference presentation, Feb 12, 2014
Slide 1: Credit Suisse Financial Services Conference
Credit Suisse Financial Services Conference February 12, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 r
Slide 3: PFSI: A Leading Non-Bank Residential Mortgage Specialist
PFSI: A Leading Non-Bank Residential Mortgage Specialist • Specialized mortgage platform for the post-financial crisis market – Legacy-free operations developed organically that are highly scalable to support continued growth • Largest non-bank correspondent lender in the U.S.; Top 10 originator ove
Slide 4: Substantial Opportunity in the U.S. Mortgage Markets for Non-Banks
Substantial Opportunity in the U.S. Mortgage Markets for Non-Banks Mortgage markets remain large components U.S. Origination of U.S. financial services 2010 Market(4) 2013 – $10 trillion in mortgage debt outstanding 8% 13% (servicing) at year-end 16% – $1.2 trillion in originations forecast for 2014
Slide 5: PFSI Has a Unique Business Model with Diverse Revenue Sources
PFSI Has a Unique Business Model with Diverse Revenue Sources Loan Production Correspondent Lending Retail Lending Aggregates newly originated loans from Originates loans to consumers for the purchase approved third-party sellers or refinance of a home Revenue sources: Revenue sources: Gain on mortg
Slide 6: PFSI Has Developed in a Sustainable Manner for Long-Term Growth
PFSI Has Developed in a Sustainable Manner for Long-Term Growth Organic growth with a focus on the quality • PFSI completed initial public offering of our operations • Opened additional servicing facility in Fort Worth Culture of building management, processes • Servicing UPB reaches $78 billion and
Slide 7: PFSI's Full Range of Capabilities for Mortgage Banking and Investment Management
PFSI’s Full Range of Capabilities for Mortgage Banking and Investment Management • Correspondent acquisitions • Consumer marketing Loan Production • Counterparty review and management • Consumer direct lending • Loan fulfillment systems and operations • Underwriting • Appraisal review Credit • Loan
Slide 8: PFSI's Revenues Continue to Grow Steadily and Diversify
PFSI’s Revenues Continue to Grow Steadily and Diversify ($ in millions) Total Net Revenue $500 • Total net revenue grew 46% in 2013, in $400 $387 spite of volatile markets • Loan Servicing and Investment 37% Management revenues, which are $300 $265 mostly recurring fees, grew to more than one third
Slide 9: Growth Trends Across PennyMac Financial's Businesses
Growth Trends Across PennyMac Financial’s Businesses Mortgage Banking Loan Production UPB(1) Origination market remains challenged by ($ in billions) (For the quarterly period) higher rates; PennyMac gained market share $12 $10.2 throughout the year in correspondent and retail $8.8 $8.9 In correspon
Slide 10: Focus on Initiatives to Profitably Grow Volumes in Loan Production
Focus on Initiatives to Profitably Grow Volumes in Loan Production Correspondent Lending Retail Lending Relatively robust government-insured volumes reflect MSR acquisitions expected to add meaningful the specialized nature of the product and portfolio-sourced volume PennyMac’s strong competitive po
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