Stonegate Mortgage (SGM) 8-K Our presentation contains certain forward-looking statements. These forward-looking statements may be identified by a reference to a future

Investor Presentation

Exhibit 99.1

Forward Looking Statements

FORWARD-LOOKING STATEMENTS:

Our presentation contains certain forward-looking statements. These forward-looking statements may be identified by a reference to a future

period or by the use of forward-looking terminology. They involve risks and uncertainties that could cause the company’s actual results to differ

materially from the results discussed in the forward-looking statements. Important factors that could cause actual results to differ include, but are

not

limited

to,

our

future

production,

revenues,

income,

capital

spending,

related

general

economic

and

market

conditions,

delinquency

rates,

trends for home prices, uncertainties related to acquisitions, including our ability to integrate the systems, procedures and personnel from other

companies,

as

well

as

other

risks

discussed

in

the

“Risk

Factors”

section

within

our

Registration

Statement

on

Form

S-1,

as

amended,

which

has

been

filed

with

the

U.S.

Securities

and

Exchange

Commission.

The

forward-looking

statements

speak

only

as

of

the

date

they

are

made

and

except for our ongoing obligations under the U.S. federal securities laws, we undertake no obligation to update or revise forward-looking

statements

whether

as

a

result

of

new

information,

future

events

or

otherwise.

NON-GAAP MEASURES:

Our presentation contains non-GAAP performance measures, such as our references to “adjusted net income”, “adjusted EPS”, and “adjusted net

income per diluted share”. We believe these non-GAAP performance measures provide additional meaningful comparisons between current

results and results in prior periods. Non-GAAP performance measures should be viewed in addition to, and not as an alternative for, the

Company’s reported results under accounting principles generally accepted in the United States. In addition, our calculations of non-GAAP

performance measures may be different from the calculations used

by other companies and, therefore, comparability may be limited.  Please

refer to the Appendix of this presentation for a reconciliation of these non-GAAP performance measures to the most comparable GAAP measure.

2

•

Recurring, fee-based income

stream

•

Maintain relationships with

households for future

recapture opportunities

•

Provide efficient financing

solution to correspondents to

offset the increasing industry

capital requirements

Stonegate Overview

Founded in 2005

Publically

traded

(NYSE:

SGM)

with

a

market

capitalization

of

$391

million

(1)

Positioned to be a significant player in the emerging mortgage market

•

Diversified platform (retail,

wholesale, mini-

correspondent, delegated

correspondent)

•

Conduit to replenish and grow

MSRs at more attractive

returns than purchased MSRs

•

Ability to source non-agency

product through each channel

Origination

Financing

Servicing

3

(1)

As of February 20, 2014

Despite the continued contraction in industry

origination volume, Stonegate continued its

trend of origination volume growth

•

Origination volume grew 2% over 3Q ‘13 and

70% over 4Q ’12

•

Gain on sale margins increased 37 bps over

3Q ’13

(1)

Purchases are expected to increase 16%

(2)

in

2014, outpacing refinances for the first time

since the financial crisis

Stonegate Mortgage Origination Business

4

Origination Volume

($ in millions)

Retail

(Purchase as a % of Total Origination Volume)

(Q-o-Q % Change of Origination Volume)

…Leads to Increasing Originations

Focus on Purchase…

(2)

(2)

(1)

Gain on mortgage loans held for sale as s percentage of origination volume

(2)

Source: Freddie Mac, Fannie Mae and MBA as of January 2014.

164

150

194

153

132

357

396

402

422

417

878

1,353

1,489

1,766

1,833

$1,399

$1,900

$2,085

$2,341

$2,382

$2,058

$2,567

$2,800

$2,973

$2,987

$0

$600

$1,200

$1,800

$2,400

$3,000

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

Correspondent

Wholesale

Locks

10.0%

12.0%

2.0%

8.0%

(22.0)%

(27.0)%

2Q '13

3Q' 13

4Q' 13

SGM

Industry

54%

73%

72%

31%

45%

50%

2Q '13

3Q' 13

4Q' 13

SGM

Industry

Servicing UPB grew 23% from 3Q ‘13 and 188% from 4Q ’12

As of 4Q’13, the 90+ day delinquency rate was 0.35% and the average CPR under 5%

Loan servicing fees grew 32% from 3Q ’13 and 261% from 4Q ‘12

Direct cost to service increased to $106 per loan due to the build out of Dallas servicing

center; initiatives are in place to decrease the direct servicing costs by end of year 2014

Stonegate Mortgage Servicing Business

Direct Servicing Cost

5

($ in millions)

Annualized per loan direct cost to service

Primary UPB Balance

WAC

Direct Servicing Cost

Servicing UPB and WAC

$2.9

$4.1

$5.8

$7.6

$9.7

$11.9

4.09%

3.88%

3.71%

3.73%

3.85%

3.66%

Number of NattyMac customers and commitments starting to accelerate

•

Current commitments

(1)

total $254 million to 60 approved accounts

NattyMac Average Outstandings

Stonegate Mortgage Financing Business

NattyMac Customers

6

($ in millions)

(1)

As of February 14, 2014

(2)

Funded at least one loan through on a NattyMac warehouse line

(2)

2

1

1

3

6

11

19

0

5

10

15

20

25

30

35

40

45

June  2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

Approved Accounts

$1.9

$7.3

$25.1

–

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Oct '13

Nov '13

Dec '13

Active Accounts

7

12

20

27

30

39

Stonegate generated $2.2 million in net interest income in 4Q

NattyMac clients’

locks increase 52% on average three months after receiving a

warehouse line compared to the three months average prior

NattyMac was the number 3 warehouse provider that Stonegate purchased loans from in

January, compared to number 7 in Q4

NattyMac Creates Sticky Business

7

Locks per Month

•

Stonegate’s Net Cost of Origination

decreases as a higher percentage of

loans are funded through NattyMac.

•

Annualized lock volume for NattyMac

clients is $38.7 million three months

after receiving a warehouse line,

compared to annual lock average of

$16.4 million for all correspondents in

2013.

$2,098

$2,204

$2,088

$2,292

$2,804

$2,698

$3,227

$1,500

$2,000

$2,500

$3,000

$3,500

Approval

Month -3

Approval

Month -2

Approval

Month -1

Approval

Month

Approval

Month 1

Approval

Month 2

Approval

Month 3

Stonegate as an Asset Manager

Numbers in BPS

Origination

Financing & Sell

Servicing

BOT Price/

Paid to TPO

Fee

Income

Total

Expenses

Sale

Proceeds

Finance

(1)

Net cost to

originate

Net servicing

strip

(2)

Unlevered

IRR

(3)

Retail

(175)

40

(315)

400

11

(39)

25

37.8%

Wholesale

(440)

35

(80)

400

11

(74)

25

15.4%

Prior Approved

(mini-correspondent)

(457)

25

(67)

400

19

(80)

25

13.5%

Delegated

Correspondent

(480)

15

(48)

400

19

(94)

25

9.9%

8

The origination or acquisition of Mortgage Servicing Rights (MSR’s) requires an

investment of capital

•

The external capital we have raised will all be used for the investment into MSR’s

•

We are tasked with achieving the lowest cost basis into the MSR asset (least amount of capital to

produce the highest UPB)

Originated MSR’s provide more attractive returns than purchased MSR’s

As an asset manager, Stonegate is also in a position to be a seller of MSR’s in order to

raise capital to invest into newly originated, higher yielding assets

Note:  Represents an illustrative example.  This illustration uses assumptions that affect results shown, including

assumptions that are based on factors that are beyond the Company’s control.  Actual results could differ

from this illustration.

(1)

Based on 200bps of spread.  Assumes retail and wholesale loans in warehouse for 20 days and prior approved and

correspondent loans in warehouse for 35 days.

(2)

Assumptions include 27 bps servicing strip, 4 bps of ancillary fees, and 6 bps of servicing expenses.

(3)

Assumptions include 10% CPR, 38% tax rate, and 4.5% 30-year note.

(4)

Assumptions include 8% interest rate, 7-year maturity, 1:1 debt to equity capital structure

Net Cost to Originate

(40.0)

(60.0)

(80.0)

(100.0)

(120.0)

5%

42.2%

26.5%

18.3%

13.3%

9.9%

10%

36.7%

21.3%

13.5%

8.7%

5.4%

15%

31.2%

16.3%

8.7%

4.2%

1.3%

Net Cost to Originate

(4)

(40.0)

(60.0)

(80.0)

(100.0)

(120.0)

5%

95.7%

58.7%

38.4%

25.0%

16.2%

10%

88.5%

51.6%

29.9%

15.5%

6.6%

15%

81.1%

43.6%

19.1%

2.0%

(6.5%)

Prudent

Leverage

Stonegate

is

positioned

to

be

a

dominant

player

in

the

emerging

mortgage

market

Purchase Dominated

Market

The Emerging Mortgage Market

Return of Private Capital

9

Liquidity Provider

Shift from Banks to Non-

Banks

Banks are under constant regulatory pressure to cede mortgage banking

capacity

NattyMac allows Stonegate to provide warehouse financing to

correspondents, a service typically offered by banks to grow wallet share

Purchases are expected to outpace refinances for the first time in 2014

since the financial crisis

Stonegate’s purchase percentage in FY’13 was 60% compared to 38% for

the market

The mortgage market needs a secure liquidity provider given the

increased capital requirements.

Stonegate has the ability to provide liquidity through NattyMac in the form

of capital efficient warehouse lines or through tuck-in acquisitions

Private investors will require increased transparency and auditability when

they return

“C3”

provides

a

full

auditable

record

from

“borrower

to

bond”

with

historical performance

(1)

Illustrative

example

of

converting

a

correspondent

to

a

“captive

correspondent”

as

part

of

Stonegate’s

retail

platform.

Tuck-In Retail Acquisition Strategy

Strategy is to convert existing TPO’s to wholly owned subsidiaries

•

Targets with annual origination volume of $400mm to $1bn are of interest

•

Current

pipeline

of

acquisitions

targets

in

excess

of

$5B

annual

retail

production

Provides Stonegate with:

•

A “capital efficient”

strategy to grow origination volume

•

In

a

correspondent

relationship,

both

buyer

and

seller

must

hold

capital

against

the

same

asset.

As

a

combined entity, capital will only need to be constrained once.

•

Lower net cost to originate acquire MSR’s at more attractive multiples

YTD Originations:

$374mm

Wallet Share:

30%

SGM Originations:

$112mm

Net cost to originate:

100 bps

Correspondent Economics

(1)

YTD Originations:

$374mm

Wallet Share:

100%

SGM Originations:

$374mm

Net cost to originate:

40 bps

Retail Economics

(1)

10

Appendix

11

Income Statement

12

(In thousands, except per share data)

Three Months Ended

Revenues

12/31/2013

9/30/2013

12/31/2012

Gains on mortgage loans held for sale

21,942

$        

12,802

$        

24,537

$        

Changes in mortgage servicing rights valuation

2,773

2,099

–

Loan origination and other loan fees

5,589

5,640

3,605

Loan servicing fees

7,880

5,966

2,180

Interest income

5,661

5,359

2,099

Total revenues

43,845

$        

31,866

$        

32,421

$        

Expenses

Salaries, commissions and benefits

23,871

$        

16,477

$        

11,534

$        

General and administrative expense

8,059

6,131

3,277

Interest expense

3,454

3,297

2,505

Occupancy, equipment and communication

3,740

2,980

1,273

Impairment of mortgage servicing rights

–

–

6,176

Amortization of mortgage servicing rights

–

–

1,096

Provision for mortgage repurchases and indemnifications

610

–

–

Depreciation and amortization expense

830

466

294

Loss on disposal of property and equipment

80

25

11

Total expenses

40,644

$        

29,376

$        

26,166

$        

Income before income tax expense

3,201

$          

2,490

$          

6,255

$          

Income tax expense

1,136

$          

807

$              

2,514

$          

Net income

2,065

$          

1,683

$          

3,741

$          

Less: preferred stock dividends

-

$               

-

$               

(20)

$               

Net income attributable to common stockholders

2,065

$          

1,683

$          

3,721

$          

Earnings per share

Basic

0.08

$             

0.10

$             

1.18

$             

Diluted

0.08

$             

0.10

$             

0.38

$             

Balance Sheet

13

(in thousands)

12/31/2013

12/31/2012

Assets

Cash and cash equivalents

43,104

$              

15,056

$              

Restricted cash

730

3,445

Mortgage loans held for sale, at fair value

683,080

218,624

Servicing advances

4,177

938

Derivative assets

19,673

11,989

Mortgage servicing rights

170,294

42,202

Property and equipment, net

12,640

4,026

Other Assets

56,191

13,326

Total assets

989,889

$           

309,606

$           

Liabilities and stockholders' equity

Secured borrowings/warehouse lines of credit

572,562

$           

202,976

$           

Operating lines of credit

6,499

5,131

Accounts payable and accrued expenses

37,052

18,606

Derivative liabilities

3,520

1,787

Reserve for mortgage repurchases and indemnification

3,709

1,917

Deferred income liabilities, net

28,379

14,381

Other liabilities

30,667

9,559

Total liabilities

682,388

254,357

Stockholders' equity

Preferred stock

–

33,000

Common stock

264

35

Treasury Stock

–

(1,820)

Additional paid-in-capital

263,830

3,198

Retained earnings

43,407

20,836

Total stockholders' equity

307,501

55,249

Total liabilities and stockholders' equity

989,889

$           

309,606

$           

Non-GAAP Financial Reconciliation

14

Three Months Ended

(in thousands)

12/31/2013

9/30/2013

12/31/2012

Net income:

2,065

$                 

1,683

$                 

3,741

$                 

Adjust for:

Interest expense associated with term loan

-

-

-

Changes in mortgage servicing rights valuation

(5,169)

(4,279)

-

Impairment of mortgage servicing rights

-

-

6,176

Stock-based compensation expense

837

829

6

Marketing/rebranding campaign

-

27

-

Ramp-up and other non-recurring expenses

5,247

799

-

Crossline/Nationstar acquisition expenses

146

-

-

NattyMac acquisition expenses

-

-

-

NattyMac bargain purchase

-

-

-

Tax effect of adjustments

(423)

992

(2,417)

Adjusted net income ¹

2,703

$                 

51

$                       

7,506

$                 

Adjusted net income per share

$0.11

–

$0.77

(1)

Adjusted net income is a key performance metric used by management in evaluating the performance of our business.  In Q4 ’13, we revised our non-GAAP net income calculation to be more consistent

with industry peers.  The revisions include removing the adjustment for the change in inventory/pipeline valuation and not adding back the MSR fair value adjustments associated with portfolio runoff.

Gain on Sale Economics

Gain on sale consists of cash and non-cash items:

•

Cash gain on sale

•

Direct Loan Expenses

•

Loan loss reserve

•

Capitalized MSR asset

•

Pipeline/Inventory fair value

Gain on Sale Economics

15

($ in thousands)

12/31/2013

9/30/2013

12/31/2012

Cash GOS

(12,731)

$            

(6,444)

$              

11,876

$              

Capitalized MSR

32,716

$              

31,597

$              

16,220

$              

Direct Loan Costs

(4,265)

$              

(4,359)

$              

(2,576)

$              

Loan Loss Reserve

(492)

$                   

(414)

$                   

(1,091)

$              

Pipeline/Inventory Chg in Valuation

6,135

$                 

(7,577)

$              

(25)

$                     

GAAP GOS-SGM Only

21,363

$              

12,802

$              

24,405

$              

Crossline - GOS

580

$                     

-

$                     

-

$                     

Total GOS - Consolidated

21,943

$              

12,802

$              

24,405

$              

Contact Information

Investor Relations Contact

Michael McFadden

Stonegate Mortgage

P: (317) 663-5904

michael.mcfadden@stonegatemtg.com

Media Contact

Whit Clay

Sloane & Company

P: (212) 446-1864

wclay@sloanepr.com

16