Pennymac Mortgage Investment Trust · NYSE:PMT
Pennymac Mortgage Investment Trust — Q4 2011 Earnings Presentation
24 slides from Pennymac Mortgage Investment Trust's earnings presentation, Feb 9, 2012
Slide 1: Fourth Quarter 2011 Earnings Report
PennyMac Mortgage Investment Trust February 8, 2012 Fourth Quarter 2011 Earnings Report
Slide 2: Forward-looking statements
4Q11 Earnings Report 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 resul
Slide 3: Fourth Quarter Highlights
4Q11 Earnings Report 3 Fourth Quarter Highlights Earned $0.70 per diluted share Increased dividend to $0.55 per share Return on average equity of over 15% Pre-tax income from correspondent segment of $7.4 million Correspondent fundings of nearly $1 billion Correspondent locks of over $1.3 billion Ra
Slide 4: Growth Opportunities in Distressed Loans and New Originations
4Q11 Earnings Report 4 Growth Opportunities in Distressed Loans and New Originations Legacy Mortgage Assets New Mortgage Market Approximately $420 billion non-agency whole loans are delinquent or in foreclosure (1) Mostly held by large banks, which are reducing their exposure To date most sales have
Slide 5: Agency MSRs Are Attractive Potential Investments for PMT
4Q11 Earnings Report 5 Opportunities enabled by PennyMac Loan Services’ operational platform and seller/servicer approvals Returns highly dependent on the ability to recapture borrowers who refinance Transactions would be structured in a manner so that investments qualify as REIT assets Agency MSRs
Slide 6: Financial Results
Financial Results (@&nnyMac’
Slide 7: Fourth Quarter Highlights
4Q11 Earnings Report 7 Consolidated quarterly net income of $19.6 million, or $0.70 per diluted share Over 15% annualized return on average equity for the quarter Net investment income of $39.1 million Correspondent lending accounted for 19% of net investment income Interest income was $12.1 million
Slide 8: Valuation Changes for the Fourth Quarter
4Q11 Earnings Report 8 Valuation Changes for the Fourth Quarter Changes reflected in loans’ carrying values: Valuation Changes Performing loans $4,082 Nonperforming loans 10,240 $14,322 Payoffs 5,539 $19,861 Valuation changes for the fourth quarter totaled $14.3 million Gains resulting from payoffs
Slide 9: Correspondent Lending is a Growing Portion of PMT's Earnings
4Q11 Earnings Report 9 Correspondent Lending is a Growing Portion of PMT’s Earnings Pre-tax income in Q4 2011: $21.3 million Investment Activities: $13.9 million Correspondent Activities: $7.4 million PMT Correspondent Investment consolidated lending activities Revenues: External Net gain on investm
Slide 10: Full Year 2011 Highlights
4Q11 Earnings Report 10 Full Year 2011 Highlights Mortgage Assets $726 $808 $1,066 $1,234 Earned consolidated net income of $64.4 million, or $2.41 per diluted share Over 15% return on average equity for 2011 Net investment income: $129 million Continued progress in building correspondent lending bu
Slide 11: Correspondent Lending
Correspondent Lending (@&nnyMac’
Slide 12: Correspondent Lending Continues Its Accelerated Growth
4Q11 Earnings Report 12 Correspondent Lending Continues Its Accelerated Growth Fundings of $991 million in 4Q’11 Volume continues to grow January volume: Locks – Over $600 million Fundings – Over $450 million First quarter targets $1.8 billion in locks $1.1 billion from conventional and jumbo loans
Slide 13: Correspondent Lending Operations
4Q11 Earnings Report 13 Correspondent Lending Operations Conventional & Jumbo Fundings Q4 Locks $30mm $697mm $581 million in conventional and jumbo funding Fourth quarter locks of $727 million Conventional: $697 million Jumbo: $30 million Correspondent fundings are high quality prime product Corresp
Slide 14: Distressed Mortgage Investment
Distressed Mortgage Investment
Slide 15: Whole Loan Portfolio Acquisitions
4Q11 Earnings Report 15 Whole Loan Portfolio Acquisitions Volume of whole loan pools available for purchase was fairly steady throughout 2011 PMT acquired its largest block of loans in the first quarter, in conjunction with its equity offering In the fourth quarter, PCM reviewed $3.0 billion in UPB
Slide 16: PMT Continues to Invest in Distressed Mortgage Assets
4Q11 Earnings Report 16 PMT Continues to Invest in Distressed Mortgage Assets Distressed mortgage assets declined 3% in the fourth quarter Entered into a forward trade to purchase $49 million in unpaid principal balance (UPB) of distressed whole loans Portfolio remains predominantly nonperforming wi
Slide 17: Liquidation Activity for the Quarter Was Strong
4Q11 Earnings Report 17 Liquidation Activity for the Quarter Was Strong Liquidation activity was again strong for Q4, led by short sales and REO sales REO sales increased 27% in Q4 Short sale liquidations decreased slightly from the record $52.8 million in Q3 to $48.7 million in Q4 Full payoffs and
Slide 18: Acquisitions Are Progressing Through the Resolution Process
4Q11 Earnings Report 18 Acquisitions Are Progressing Through the Resolution Process *Ratio of unpaid principal balance remaining to unpaid principal balance at acquisition Purchase Q4 2011 Purchase Q4 2011 Purchase Q4 2011 Balance (M) 515.1 439.1 Balance (M) 259.8 237.8 Balance (M) 542.6 481.8 Pool
Slide 19: Continue to Progress REO Inventory Through to Liquidation
4Q11 Earnings Report 19 Continue to Progress REO Inventory Through to Liquidation $14.4 million in carrying value of REO was liquidated in Q4, compared to $13.8 million in Q3 $6.7 million of 4Q’11 liquidations had been in REO inventory for 120+ days As of 12/31/11, 54% of REO inventory was aged thre
Slide 20: Financial Statements
Financial Statements (@&nnyMac’
Slide 21: Income Statement
4Q11 Earnings Report 21 Income Statement PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) December 31, 2011 Quarter ended Year ended Investment Income Net gain (loss) on investments: Mortgage - backed securities $
Slide 22: Balance Sheet
4Q11 Earnings Report 22 Balance Sheet PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data) December 31, 2011 December 31, 2010 Cash $14,589 $45,447 Short - term investments 30,319 — United States Treasury security 50,000 — Mort
Slide 23: Contact Us
4Q11 Earnings Report 23 For questions or comments please contact us at: PennyMac Mortgage Investment Trust 6101 Condor Drive Moorpark, CA 93021 Primary IR contact: Kevin Chamberlain Managing Director, Corporate Communications Phone: 818-224-7442 Email: InvestorRelations@pnmac.com Website: www.PennyM
Slide 24: Fourth Quarter 2011 Earnings Report
PennyMac Mortgage Investment Trust February 8, 2012 Fourth Quarter 2011 Earnings Report
PennyMac Mortgage Investment Trust — Q4 2011 Earnings Presentation on 6ix