Pennymac Financial Services, Inc. · NYSE:PFSI

Pennymac Financial Services — Barclays Global Financial Services Conference 2019

14 slides from Pennymac Financial Services's conference presentation, Sep 10, 2019

  1. Slide 1: Barclays Global Financial Services Conference

    Barclays Global Financial Services Conference September 10, 2019

  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: PFSI Is a Leading Nonbank Residential Mortgage Specialist

    PFSI Is a Leading Nonbank Residential Mortgage Specialist  12th year of operations; initial public offering in May 2013 Leading Market Position in the U.S.  4th largest mortgage producer(1)  Largest government-insured producer(1)  7th largest mortgage servicer(1)  2nd largest correspondent prod

  4. Slide 4: PFSI's Earnings Have Driven Strong Book Value Growth

    PFSI’s Earnings Have Driven Strong Book Value Growth Book Value Per Share of PFSI 21% CAGR(1) $22.72 $21.34 $19.95 $15.49 $12.32 $9.92 $8.04 $7.27 6/30/2013 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 6/30/2019  Track record of strong profitability; profitable every year since

  5. Slide 5: Large Opportunity in the U.S. Mortgage Market

    Large Opportunity in the U.S. Mortgage Market U.S. Consumer Debt Outstanding(1) U.S. Mortgage Origination Market(2) ($ in trillions) ($ in trillions) $10.9 $1.9 +18% $1.6 $1.2 $1.0 Mortgage debt Auto loan debt Credit card debt 2018 2019E Purchase Refinance  The mortgage market is the largest consum

  6. Slide 6: PFSI Is a Leader and Growing in Each of Its Business Segments

    PFSI Is a Leader and Growing in Each of Its Business Segments Loan Production Loan Servicing Investment Management  Established leader in the  Large and growing servicing  External manager of PMT, a correspondent channel – second portfolio of nearly 1.7 million leading residential mortgage REIT l

  7. Slide 7: Hedging Approach Moderates the Volatility of PFSI's Results

    Hedging Approach Moderates the Volatility of PFSI’s Results MSR Valuation Changes and Offsets  PFSI seeks to moderate the (in millions) impact of interest rate MSR fair value change before recognition of realization of cash flows changes on the fair value of Hedging and other gains (losses) its MSR

  8. Slide 8: Balance Sheet Strength and Low Leverage Are Key to Our Success

    Balance Sheet Strength and Low Leverage Are Key to Our Success As of June 30, 2019  Strong balance sheet with low leverage versus competitors ($ in millions) – Total debt to equity of 2.7x $8,398 $8,398  Diversified liquidity sources and term debt that finances the largest long-term asset (MSRs) W

  9. Slide 9: PennyMac's Enterprise Risk Management (ERM) Foundation

    PennyMac’s Enterprise Risk Management (ERM) Foundation  Effective governance, compliance and operating systems are critical ERM Framework Overview  PennyMac has utilized a “three-lines of defense” model to monitor the effectiveness of controls  ERM is a fundamental part of our day-to-day operatin

  10. Slide 10: PFSI's Unique, Synergistic Partnership with PMT

    PFSI’s Unique, Synergistic Partnership with PMT (NYSE: PFSI) (NYSE: PMT) Best-in-Class Operating Platform Tax-Efficient Investment Vehicle  Market Capitalization: $2.3 billion(1)  Market Capitalization: $1.9 billion(1) and $2.1  Over 3,600 employees billion in shareholders’ equity(2)  10-year hi

  11. Slide 11: Technology Development and Utilization Differentiates PennyMac

    Technology Development and Utilization Differentiates PennyMac  Proprietary systems development combined with third-party technology, focused on delivering unique capabilities, enhanced workflows and scale efficiencies  Agile development methodology to improve speed and value creation while loweri

  12. Slide 12: Trends in PennyMac Financial's Businesses

    Trends in PennyMac Financial’s Businesses Total Production(1) Loan Servicing(1) Market Share Market Share 4.4% 4.1% 3.8% 3.4% 3.1% 2.8% 2.7% 2.3% 2.2% 1.9% 1.7% 1.6% 1.1% 0.8% 2013 2014 2015 2016 2017 2018 1H19 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 6/30/19  Correspondent production

  13. Slide 13: Drivers of Earnings Growth for PennyMac Financial

    Drivers of Earnings Growth for PennyMac Financial  Correspondent – focus on growth of non-delegated; expanding community bank and credit union Expanding relationships our mortgage  Broker Direct Lending – focus on leveraging technology and access to PennyMac platform to drive growth market  Consu

  14. Slide 14: Significant Growth in the Current Market Environment

    Significant Growth in the Current Market Environment Production volumes remain at elevated levels(1)  Correspondent acquisitions quarter-to-date totaled $20.7 billion in UPB; locks totaled $23.6 billion  Consumer-direct originations quarter-to-date totaled $1.8 billion in UPB; locks totaled $3.0 b

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