Pennymac Financial Services, Inc. · NYSE:PFSI

Pennymac Financial Services — 16th Annual Credit Suisse Financial Services Forum 2015

13 slides from Pennymac Financial Services's conference presentation, Feb 11, 2015

  1. Slide 1: 16th Annual Credit Suisse Financial Services Forum

    16th Annual Credit Suisse Financial Services Forum

  2. 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

  3. Slide 3: PennyMac Financial's Business Model Is Well Positioned for Growth

    PennyMac Financial’s Business Model Is Well Positioned for Growth Loan Production Loan Servicing Investment Management • Correspondent aggregation of • Servicing for owned MSRs • Serve as external manager for newly originated loans from and subservicing for Advised investment vehicles focused on thi

  4. Slide 4: Current Market Environment and Outlook

    Current Market Environment and Outlook • Interest rates have continued to fall, to the lowest Average 30-year fixed rate mortgage(1) levels in 18 months, driven by global economic 5.0% Hundreds weakness • Policymakers continue to promote housing stimulus, 4.5% as demonstrated by the reduction in FHA

  5. Slide 5: PFSI Has Developed in a Sustainable Manner for Long-Term Growth

    PFSI Has Developed in a Sustainable Manner for Long-Term Growth • Disciplined growth to address the demands of the 2014 GSEs, Agencies, regulators and our financing partners • Continued organic growth - Since inception, PennyMac has focused on building • Servicing UPB reaches and testing processes a

  6. Slide 6: Trends in PennyMac Financial's Businesses

    Trends in PennyMac Financial’s Businesses Correspondent Production(1) Loan Servicing(1) Market Share Market Share 10% 1.2% 1.08% 1.02% 7.67% 8% 7.04% 1.0% 6% 0.8% 0.6% 4% 0.4% 2% 0.2% 0% 0.0% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Consumer Direct Pr

  7. Slide 7: Growth Initiatives in PennyMac Financial's Businesses

    Growth Initiatives in PennyMac Financial’s Businesses Correspondent Production Consumer Direct Production  Continuing to add new sellers relationships  National call center-based platform leverages technology enabled process efficiencies and ‒ 344 approved sellers at year-end 2014, up from superio

  8. Slide 8: Growth Initiatives in PennyMac Financial's Businesses (cont'd)

    Growth Initiatives in PennyMac Financial’s Businesses (cont’d) Loan Servicing Investment Management  Ongoing organic servicing portfolio growth  Investment opportunities for PennyMac- managed entities include: ‒ Results from the retail and correspondent loan – Distressed whole loans production act

  9. Slide 9: Pending Acquisitions of Bulk MSRs with Refinance Opportunities

    Pending Acquisitions of Bulk MSRs with Refinance Opportunities  Seasoned, high-quality Agency loans  Low mortgage rate environment results in refinance recapture opportunities  Co-investment by PMT in Agency MSRs through the acquisition of the excess servicing spread cash flows  Pending acquisit

  10. Slide 10: Expansion Into Commercial Real Estate Finance

    Expansion Into Commercial Real Estate Finance • Recently launched new division focused New Commercial Loan Originations on loans with balances of $1mm - $10mm that finance multifamily and smaller office,  Market opportunity for a non-bank specialist focused on retail and mixed-use properties lendin

  11. Slide 11: Trends in PFSI Earnings and Revenue Composition

    Trends in PFSI Earnings and Revenue Composition Earnings per Share  Total net revenue increased 1% Q/Q as $0.60 $0.49 growth in mortgage banking offset decline $0.45 $0.45 $0.38 $0.41 in investment management $0.32 $0.30  EPS declined to $0.41 per share due to: – Investment management revenue $0.1

  12. Slide 12: Building PFSI's Businesses to Address Opportunity

    Building PFSI’s Businesses to Address Opportunity Servicing Portfolio UPB  PennyMac is well positioned to capitalize on the opportunities presented by the low interest rate Pending Agency Portfolio environment and FHA MIP reduction Acquisitions 16% $20.8bn ─ Servicing portfolio provides sizeable re

  13. Slide 13: PennyMac Financial Services, Inc.

    PéennyMac’ Financial Services, Inc.

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