Pennymac Financial Services, Inc. · NYSE:PFSI

Pennymac Financial Services — 2015 Barclays Global Financial Services Conference

12 slides from Pennymac Financial Services's conference presentation, Sep 16, 2015

  1. Slide 1: 2015 Barclays Global Financial Services Conference

    2015 Barclays Global Financial Services Conference

  2. Slide 2: Disclaimer

    Disclaimer 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 o

  3. Slide 3: PennyMac Financial Services Is a Leading Mortgage Specialist

    PennyMac Financial Services Is a Leading Mortgage Specialist • Specialized mortgage platform with over 2,300 employees; highly scalable to support continued growth • Publicly traded (NYSE: PFSI) with fully-diluted market cap of $1.3 billion(1) • Track record of steady growth in business volumes and

  4. Slide 4: Significant Market Opportunity and Role for a Non-Bank Mortgage Leader

    Significant Market Opportunity and Role for a Non-Bank Mortgage Leader • Banks have retreated from the mortgage market mainly due to regulatory scrutiny, Share of Total U.S. Mortgage higher capital requirements, and a greater Production Market focus on core customers and businesses • Successful mort

  5. Slide 5: PennyMac Has Developed Organically for Sustainable Growth

    PennyMac Has Developed Organically for Sustainable Growth • Industry-leading platform built organically – not through acquisitions 2015 − Not distracted by legacy/regulatory issues • Launched Commercial − Disciplined, sustainable growth for more than 7 years Real Estate Finance 2014 (PCREF) − Focuse

  6. Slide 6: Current Market Environment and Outlook

    Current Market Environment and Outlook • Mortgage rates remain low in historical context Average 30-year fixed rate mortgage(1) 5.0% Hundreds – Prevailing 30-year fixed rate remains below 4% – Refinance activity remains significant 4.5% 3.90% • Home purchase market remains strong 4.0% – Purchase-mon

  7. Slide 7: PFSI Continues to Deliver Strong Earnings and Earnings Growth

    PFSI Continues to Deliver Strong Earnings and Earnings Growth Earnings per Share $2.02 $1.73 +22% $1.01 $0.83 $0.82 N/A (1) 2012 2013 2014 1H15 1H14 1H15 Annualized Pretax Income ($ in millions) $256 +20% $128 $196 $172 $107 $118 2012 2013 2014 1H15 1H14 1H15 Annualized (1) Represents partial year.

  8. Slide 8: Balanced Business Model as a Top Originator and Servicer

    Balanced Business Model as a Top Originator and Servicer PennyMac is a leader in both mortgage origination and servicing(1) #6 Largest Originator Overall #3 Largest Correspondent Aggregator #12 Largest Servicer Top Originators – Q2 2015(1) Top Servicers – Q2 2015(1) Rank Institution $Bn Market Share

  9. Slide 9: Trends in PennyMac Financial's Businesses

    Trends in PennyMac Financial’s Businesses Correspondent Production(1) Loan Servicing(1) Market Share Market Share 10% 9.22% 1.5% 1.38% 7.69% 1.17% 8% 1.2% 6% 0.9% 4% 0.6% 2% 0.3% 0% 0.0% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Consumer Direct Product

  10. Slide 10: Growth Initiatives in PennyMac Financial's Businesses

    Growth Initiatives in PennyMac Financial’s Businesses Correspondent Production Consumer Direct Production  Able to scale production volumes while  Investments in fulfillment capabilities (people, maintaining quality metrics, service levels and infrastructure) to expand operational capacity invento

  11. Slide 11: Growth Initiatives in PennyMac Financial's Businesses (cont'd)

    Growth Initiatives in PennyMac Financial’s Businesses (cont’d) Loan Servicing Investment Management  Continuing to pursue bulk and flow MSR  Opportunities to grow PMT over time and acquisitions where appropriate manage additional capital for mortgage-related investments:  Operating platform expan

  12. Slide 12: 2015 Barclays Global Financial Services Conference

    2015 Barclays Global Financial Services Conference

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