Pennymac Financial Services, Inc. · NYSE:PFSI
Pennymac Financial Services — Investor Presentation (March 2019)
14 slides from Pennymac Financial Services's investor presentation, Mar 4, 2019
Slide 1: Forward-Looking Statements
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
Slide 2: PennyMac Financial Is a Leader in the Mortgage Industry
3 (1) As of December 31, 2018 (2) Inside Mortgage Finance for 4Q18 and as of December 31, 2018 (3) Market capitalization as of March 1, 2019 PennyMac Financial Is a Leader in the Mortgage Industry Leading Market Position 3rd largest mortgage producer in the U.S.(2) 8th largest mortgage servicer in t
Slide 3: Consistent Growth in Shareholder Value Since IPO
4 22% CAGR Book Value Per Share of PFSI Consistent Growth in Shareholder Value Since IPO $7.27 $8.04 $9.92 $12.32 $15.49 $19.95 $21.34 6/30/2013 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018
Slide 4: Overview of PennyMac Financial's Businesses
Overview of PennyMac Financial’s Businesses 5 Complex and highly regulated mortgage industry requires effective governance, compliance and operating systems Operating platform has been developed organically and is highly scalable Commitment to strong corporate governance, compliance and risk managem
Slide 5: Trends in PennyMac Financial's Businesses
Loan Servicing(1) Total Production(1) Trends in PennyMac Financial’s Businesses (1) Source: Inside Mortgage Finance (2) As of December 31, 2018 Market Share Market Share 6 Investment Management – PMT’s Mortgage Assets(2) 100% = $7.8 billion 1.7% 2.2% 2.8% 3.4% 3.8% 4.2% 0.8% 1.1% 1.6% 1.9% 2.3% 2.7%
Slide 6: Loan Production Overview by Channel
7 Loan Production Overview by Channel Correspondent Consumer Direct Broker Direct Newly originated loans acquired by PMT from approved correspondent sellers primarily for inclusion in Fannie Mae, Freddie Mac and Ginnie Mae securitizations PFSI manages the correspondent production program and perform
Slide 7: Consistent Servicing Portfolio Growth, Mainly Organic
8 (UPB in billions) Servicing Portfolio by Investor Consistent Servicing Portfolio Growth, Mainly Organic (UPB in billions) Net Portfolio Growth (UPB in billions) Loan Servicing Portfolio Composition (1) Owned portfolio in predominantly government-insured and guaranteed loans under the FHA, VA, and
Slide 8: Hedging Approach Moderates the Volatility of PFSI's Results
9 Hedging Approach Moderates the Volatility of PFSI’s Results MSR Valuation Changes and Offsets (in millions) PFSI seeks to moderate the impact of interest rate changes on the fair value of its MSR asset through a comprehensive hedge strategy that also considers production-related income For the yea
Slide 9: Loan Servicing Results
(1) Of average portfolio UPB (2) Comprised of net gains on mortgage loans held for sale at fair value and net interest income related to EBO loans (3) Changes in fair value do not include realization of MSR cash flows, which are included in amortization and realization of MSR cash flows above (4) In
Slide 10: Mortgage market consolidation is expected to continue
11 Mortgage market consolidation is expected to continue PennyMac Financial is well-positioned to gain share as industry participants exit or adjust their strategies to the highly-competitive market environment Opportunities to acquire bulk MSR portfolios expected to increase Targeting market share
Slide 11: Technology Development and Utilization Differentiates PFSI
12 Technology Development and Utilization Differentiates PFSI Proprietary systems development combined with third-party technology Innovative and strategic technology utilization driving cost savings and scale efficiencies Agile development methodology to improve speed and value creation while lower
Slide 12: PennyMac Financial Is a Strong Independent Mortgage Company
13 PennyMac Financial Is a Strong Independent Mortgage Company As of December 31, 2018 ($ in millions) Comprehensive mortgage platform and balanced model with leading production and servicing businesses Strong balance sheet with low leverage versus competitors Debt to equity of 2.4x Diversified liqu
Slide 13: PennyMac Investor Relations
PennyMac Investor Relations www.ir.pennymacfinancial.com Phone: (818) 264-4907 Email: PFSI_IR@pnmac.com
Slide 14: PennyMac Investor Relations
PennyMac Investor Relations www.ir.pennymacfinancial.com Phone: (818) 264-4907 Email: PFSI_ IR@pnmac.com PennyMac inane ial Services, ne.
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