Pennymac Financial Services, Inc. · NYSE:PFSI

Pennymac Financial Services — Investor Presentation (March 2019)

14 slides from Pennymac Financial Services's investor presentation, March 2019

  1. Slide 1: Investor Presentation March 2019

    Investor Presentation March 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: PennyMac Financial Is a Leader in the Mortgage Industry

    PennyMac Financial Is a Leader in the Mortgage Industry Leading Market Position  3rd largest mortgage producer in the U.S.(2) $68Bn  8th largest mortgage servicer in the U.S., with a portfolio of 1.5 million 2018 Mortgage customers(2) Production in UPB  Manager of PennyMac Mortgage Investment Tru

  4. Slide 4: Consistent Growth in Shareholder Value Since IPO

    Consistent Growth in Shareholder Value Since IPO Book Value Per Share of PFSI $21.34 22% CAGR $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 4

  5. Slide 5: Overview of PennyMac Financial's Businesses

    Overview of PennyMac Financial’s Businesses Loan Production Loan Servicing Investment Management  Correspondent aggregation  Servicing for owned MSRs  External manager of PennyMac of newly originated loans and subservicing for PMT Mortgage Investment Trust from third-party sellers (NYSE: PMT), wh

  6. Slide 6: Trends in PennyMac Financial's Businesses

    Trends in PennyMac Financial’s Businesses Total Production(1) Loan Servicing(1) Market Share 4.2% Market Share 2.7% 3.8% 3.4% 2.3% 2.8% 1.9% 2.2% 1.6% 1.7% 1.1% 0.8% Investment Management – PMT’s Mortgage Assets(2) Agency RMBS 21% 34% MSRs and ESS 3% 100% = $7.8 billion Credit Risk Transfer (CRT) Di

  7. Slide 7: Loan Production Overview by Channel

    Loan Production Overview by Channel Correspondent Newly originated loans acquired by PMT from approved correspondent sellers primarily for inclusion in Fannie Mae, Freddie Mac and Ginnie Mae securitizations Acquisitions (UPB in billions) Government $63 $64 $63 • PFSI manages the correspondent produc

  8. Slide 8: Consistent Servicing Portfolio Growth, Mainly Organic

    Consistent Servicing Portfolio Growth, Mainly Organic Servicing Portfolio by Investor Loan Servicing Portfolio Composition (UPB in billions) (UPB in billions) $350 1800 $299.3 $299 1600 $300 $245.8 $245 1400 $250 1,505 1200 $194.2 $194 $200 1000 $160 $150 800 $106 600 $100 $77 400 $50 367 200 $0 0 1

  9. Slide 9: 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 impact of interest (in millions) rate changes on the fair MSR fair value change before recognition of realization of cash flows Change in fair value of hedges and ESS liability

  10. Slide 10: Servicing Profitability Excluding Valuation-Related Changes

    Servicing Profitability Excluding Valuation-Related Changes 2016 2017 2018 basis basis basis $ in millions (1) $ in millions (1) $ in millions (1) points points points Operating revenue $ 503.6 28.8 $ 621.7 28.0 $ 771.5 28.6 Amortization and realization of MSR cash flows (204.6) (10.9) (236.6) (10.7

  11. Slide 11: Growth Drivers for PennyMac Financial

    Growth Drivers for PennyMac Financial 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 expec

  12. Slide 12: Technology Development and Utilization Differentiates PFSI

    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 lo

  13. Slide 13: PennyMac Financial Is a Strong Independent Mortgage Company

    PennyMac Financial Is a Strong Independent Mortgage Company As of December 31, 2018  Comprehensive mortgage platform and ($ in millions) balanced model with leading production and $7,479 $7,479 servicing businesses  Strong balance sheet with low leverage versus Warehouse Mortgage Loans Financing c

  14. Slide 14: PennyMac Investor Relations

    PennyMac Investor Relations www.ir.pennymacfinancial.com Phone: (818) 264-4907 Email: PFSI_IR@pnmac.com

PennyMac Financial Services — Investor Presentation (March 2019) on 6ix