Pennymac Mortgage Investment Trust · NYSE:PMT
Pennymac Mortgage Investment Trust — Corporate Update (March 2016)
8 slides from Pennymac Mortgage Investment Trust's corporate update, Mar 3, 2016
Slide 1: Update on Strategic Initiatives
PennyMac Mortgage Investment Trust March 3, 2016 Update on Strategic Initiatives
Slide 2: Forward-looking statements
2 This presentation contains forward - looking statements within the meaning of Section 21 E 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 operat
Slide 3: PMT Is Executing on Strategic Initiatives to Enhance Shareholder Value
3 PMT Is Executing on Strategic Initiatives to Enhance Shareholder Value At current levels, repurchases of PMT’s common shares are an attractive use of capital • On February 24 th , PMT’s Board of Trustees authorized an increase in its previously announced share repurchase program from $150 million
Slide 4: GSE Risk Transfer Investments, Ongoing MSR Investment, Correspondent Production
GSE Risk Transfer Investments Ongoing MSR Investment Correspondent Production 4 • Opportunity to invest in credit risk on loans delivered by PMT to Fannie Mae • Designed to capture benefits of PMT’s high - quality correspondent production • Investment is a certificated security – M1 bond created on
Slide 5: PMT's Targeted Returns for Correspondent-Related Investments Are Attractive
PMT’s Targeted Returns for Correspondent - Related Investments Are Attractive 5 Agency Multifamily Retained Bonds Correspondent Production MSRs & ESS Distressed Residential Whole Loans GSE Credit Risk Transfers (CRT) Prime Non - Agency Loans (2) Agency MBS Targeted Unlevered Yield Targeted Gross Pre
Slide 6: How Much Capital Is Required for PMT's Correspondent-Related Investments?
6 (1) $8 million equity requirement is one time for the increase from $1.2 billion in UPB of monthly production and does not recur; assumes 95% advance rate on financing and two turns of inventory per month. Equity requirement does not include any cash required for margin calls. (2) Assumes 55% adva
Slide 7: To Pursue PMT's Strategy, How Much Capital Is Required from Asset Sales?
7 To Pursue PMT’s Strategy, How Much Capital Is Required from Asset Sales? (1) Based on 4Q15 performance. See page 29 of the PMT 4Q15 Earnings Report. Does not include any cash earnings contributions from co rrespondent production activities. (2) “Current Pace” dividend payout assumes 71.1 million s
Slide 8: What Is the Potential to Sell Loans from PMT's Performing Portfolio?
"Current" Payment Status History Portfolio at 12/31/15 < 6 months & other (1) 542$ 6-11 months 181 12-17 months 123 18-23 months 163 24 months or more 125 Total performing loan portfolio 1,134$ What Is the Potential to Sell Loans from PMT’s Performing Portfolio? 8 • PMT has previously sold pools of
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