Pennymac Mortgage Investment Trust · NYSE:PMT
Pennymac Mortgage Investment Trust — Barclays Financial Services Conference 2012
14 slides from Pennymac Mortgage Investment Trust's conference presentation, Sep 10, 2012
Slide 1: PennyMac Mortgage Investment Trust, Barclays Financial Services Conference
PennyMac Mortgage Investment Trust September 10, 2012 Barclays 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: Market Overview
3 Market Overview Home prices continue to show signs of stabilization Delinquencies are declining and home prices are firming (and in some cases, rising) Demand for foreclosure and REO properties continues to be strong Distressed whole loans available for purchase increased in 2Q12 and the flow of l
Slide 4: PMT's Structure
4 PMT's Structure NYSE: PMT PNMAC Capital Management (PCM)(2) PennyMac Loan Services (PLS)(2) Management Agreement Loan Servicing Agreement PMT’s unique structure allows the Company to focus its specialized operations on legacy loans and new origination opportunities available in the post crisis mor
Slide 5: Performance Highlights
5 Performance Highlights Second Quarter 2012 Earnings Net Income of $29.6 million on revenue of $64.4 million Diluted EPS of $0.79 per share; dividend of $0.55 per share; ROAE of 17% Correspondent purchase volume increased to $3.4 billion in UPB, an increase of 88% from 1Q12; conventional purchase v
Slide 6: PMT's Pretax Income by Business Segment
` PMT's Pretax Income by Business Segment 6 Barclays Financial Services Conference Investment Activities pretax income rose 82% from the first quarter driven by higher liquidation activity, improved home price performance and better loan attributes Correspondent Lending rose 17% from the first quart
Slide 7: Correspondent Growth Remains Strong
Purchases totaled $3.4 billion in UPB in 2Q12, up 88% vs. 1Q12 3Q12 QTD(1) total purchases reached $3.9 billion in UPB Interest rate lock commitments: $5.1 billion Conventional loans comprised 58% of total purchases Targeting approximately $2.5 billion in UPB of correspondent loan purchases per mont
Slide 8: Servicing Portfolio Growth and Solid Performance Continues
Strong correspondent purchase activity drives the growth of PMT’s serviced for others portfolio MSRs are an attractive investment opportunity, particularly in the current environment where prepayment risk is lower Ability to organically grow PMT’s MSR asset is a key competitive advantage Actively pu
Slide 9: Flow of Distressed Whole Loans for Sale Remains Strong
9 Flow of Distressed Whole Loans for Sale Remains Strong Whole loan acquisitions totaled $402 million in UPB in 2Q12, comprised of both nonperforming and reperforming loans Nonperforming loans totaled $224 million (56%) and reperforming loans total $178 million (44%) in UPB Flow of distressed whole
Slide 10: Portfolio Acquisitions Are Progressing in Line With Expectations
Portfolio Acquisitions Are Progressing in Line With Expectations 10 (1) Ratio of unpaid principal balance remaining to unpaid principal balance at acquisition Barclays Financial Services Conference Purchase 2Q12 Purchase 2Q12 Purchase 2Q12 Purchase 2Q12 Balance ($mm) 182.7 $ 85.2 Balance ($mm) 195.5
Slide 11: Strategy and Outlook
11 Illustrative Leveraged Gross Return(1) 20% - 26% 15% - 20% 27% - 39% (avg. holding period: 20 days) 25% - 32% Strategy and Outlook Investment Opportunities Seek to acquire ABS and MBS on an opportunistic basis Expect the population of potential distressed loan acquisitions to be $15-$20 billion o
Slide 12: Key Takeaways
Key Takeaways 12 PMT’s business model and strong operational execution deliver solid results Significant opportunities exist in the current mortgage market Distressed Mortgage Assets Correspondent purchases Bulk MSR acquisitions Correspondent purchase volume continues to exceed targets, driven by cl
Slide 13: Contact Us
13 For questions or comments please contact us at: PennyMac Mortgage Investment Trust 6101 Condor Drive Moorpark, CA 93021 IR Contacts: Kevin Chamberlain Managing Director, Corporate Communications Christopher Oltmann Director, Investor Relations chris.oltmann@pnmac.com or InvestorRelations@pnmac.co
Slide 14: PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust September 10, 2012 Barclays Financial Services Conference
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