Pennymac Financial Services, Inc. · NYSE:PFSI
Pennymac Financial Services — Q3 2026 Earnings Presentation
25 slides from Pennymac Financial Services's earnings presentation, Oct 29, 2026
Slide 1: PennyMac Financial Services 3Q26 Earnings Report
PennyMac Financial Services, Inc. October 2026 3Q26 EARNINGS REPORT
Slide 2: 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, our financial results, future operations, business p
Slide 3: Third Quarter Highlights
3 3Q26 Results Production Segment Servicing Segment THIRD QUARTER HIGHLIGHTS Note: All figures are for 3Q26 or are as of 9/30/26 (1) EPS = earnings per share; ROE = return on equity (2) See slide 24 for a reconciliation of GAAP net income to non-GAAP adjusted net income, adjusted EPS and annualized
Slide 4: Constrained Industry Origination Environment
4 CONSTRAINED INDUSTRY ORIGINATION ENVIRONMENT 30-year fixed rate mortgage 7.40%(1) 3Q26 Rate & Term Agency Deliveries(2) $22B Up 93 bps from June 30, 2026 Down ~80% from 1Q26 7.4% 30-Yr Fixed Rate Mortgage(1) Sept. 2026 Fannie Mae 30-Year CPR(2) 6.5% Lowest level since March 2025 Distribution of Ag
Slide 5: Business Updates
After quarter-end, entered into an agreement to sell $29 billion in UPB of low-coupon conventional MSRs with an expected close in the fourth quarter; proceeds of approximately $490 million will primarily be used to pay down debt BUSINESS UPDATES 5 Continued to make progress on the acquisition of Cen
Slide 6: Recent and Expected Adjusted Returns on Equity
Servicing net of valuation related changes Production (1) Mortgage Banking Adjusted Pretax Income ($ in millions) 6 Annualized Adjusted ROE(1) Note: Figures may not sum due to rounding (1) See slide 24 for a reconciliation of GAAP to non-GAAP items RECENT AND EXPECTED ADJUSTED RETURNS ON EQUITY Give
Slide 7: Accelerating AI Automation Across Our Origination Business
ACCELERATING AI AUTOMATION ACROSS OUR ORIGINATION BUSINESS 7 Progress on Origination Processing Automation Oct ‘26 35% Remaining 37% Live Production 28% In Development AI Automation Driving Measurable Results AI Voice Agent Provides Exponential Scale in a Rally Uncoupling Platform Scale from Headcou
Slide 8: Earnings Potential from Consumer Direct Recapture Opportunity
8 EARNINGS POTENTIAL FROM CONSUMER DIRECT RECAPTURE OPPORTUNITY Servicing Portfolio UPB Above 5% Note Rate (1) (1) As of 9/30/26; includes first-lien loans serviced for PFSI’s own account as well as those subserviced for PMT and others with recapture arrangements with PFSI; mortgage rate: Optimal Bl
Slide 9: Key Operating Metrics & Other Financial Schedules
KEY OPERATING METRICS & OTHER FINANCIAL SCHEDULES
Slide 10: Production Segment – Volume by Channel
Acquisitions for PFSI(1) 10 PRODUCTION SEGMENT – VOLUME BY CHANNEL Broker Direct (UPB in billions) (1) Government-insured or guaranteed loans and certain conventional loans acquired through PFSI’s correspondent production business; PFSI earns income from holding and selling or securitizing the loans
Slide 11: Drivers of Production Segment Results
11 DRIVERS OF PRODUCTION SEGMENT RESULTS(1) Note: Figures may not sum due to rounding (1) Prior period amounts have been recast to conform to the current period presentation (2) Revenue net of direct origination costs (3) Revenue contribution, total PFSI account revenues, total production revenues a
Slide 12: Servicing Segment
Note: Figures may not sum due to rounding (1) Represents MSRs that we subservice for PMT and others (2) Owned portfolio is predominantly government-insured and guaranteed loans - delinquency data based on loan count (i.e., not UPB); CPR = Conditional Prepayment Rate (3) UPB of completed modification
Slide 13: Drivers of Servicing Segment Results
13 Note: Figures may not sum due to rounding (1) Of average portfolio UPB, annualized (2) Also includes non-valuation related income from principal-only bonds (3) Comprised of net gains on mortgage loans held for sale at fair value and interest income related to EBO loans, net of related expenses (4
Slide 14: Hedging Approach Moderates Volatility of PFSI's Results
14 HEDGING APPROACH MODERATES THE VOLATILITY OF PFSI’S RESULTS MSR Valuation Changes and Offsets ($ in millions) MSR fair value changes before realization of cash flows(1) Hedging and related gains (losses)(2) (1) Includes (provision for) reversal of losses on active loans (2) Includes principal-onl
Slide 15: Strong Balance Sheet and Diverse Capital Structures
15 STRONG BALANCE SHEET AND DIVERSE CAPITAL STRUCTURES (1) Non-funding debt includes face value of unsecured senior notes and notes payable secured by MSR, in addition to the amount drawn on the variable funding note (2) Tangible net worth excludes capitalized software (3) As of 9/30/26 Debt-to-Equi
Slide 16: Appendix
_ APPENDIX
Slide 17: Comprehensive Mortgage Banking Platform Is a Flywheel
Portfolio growth drives higher recurring fee income; prepayment speeds slow in rising rate environments, a natural hedge to origination income Refinance recapture to drive earnings growth when rates decline 17 COMPREHENSIVE MORTGAGE BANKING PLATFORM IS A FLYWHEEL Large volumes of production grow ser
Slide 18: Track Record of Strong Performance Across Market Environments
PFSI Purchase Mix Industry Purchase Mix(5) 18 TRACK RECORD OF STRONG PERFORMANCE ACROSS MARKET ENVIRONMENTS Proven ability to generate attractive ROEs… …across different market environments… …with a strong orientation towards purchase money mortgages. (1) Represents partial year; initial public offe
Slide 19: Current Market Environment and Macroeconomic Trends
CURRENT MARKET ENVIRONMENT AND MACROECONOMIC TRENDS 19 Average 30-year fixed rate mortgage(1) Macroeconomic Metrics(4) U.S. Origination Market Forecast(3) (UPB in trillions) 10-year Treasury Bond Yield(2) Purchase Refinance 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 10-year Treasury bond yield 4.2% 4.
Slide 20: PennyMac's Market Share Over Time Across Its Businesses
PENNYMAC’S MARKET SHARE OVER TIME ACROSS ITS BUSINESSES 20 Loan Servicing Market Share Correspondent Production Market Share(1) (1) Broker Direct Market Share(1) Consumer Direct Market Share(1) Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT (1) Historical market s
Slide 21: Technology Driving Efficiencies and Lower Expenses in Servicing
• Pennymac’s per loan servicing expenses are among the lowest in the industry, despite a higher concentration of government loans, which are more costly to service • Industry-leading customer service as evidenced by our multi-year servicing excellence awards from HUD, Fannie Mae and Freddie Mac 21 O
Slide 22: Delinquency Trends and Servicing Advances Outstanding
DELINQUENCY TRENDS AND SERVICING ADVANCES OUTSTANDING 22 Trends in Delinquency and Foreclosure Rates(1) (1) Owned MSR portfolio and includes loans acquired for sale at fair value; delinquency and foreclosure rates based on UPB; as of 9/30/26, the UPB of mortgage servicing rights owned by PFSI and lo
Slide 23: Reconciliation of GAAP Net Income to Adjusted EBITDA
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA(1) 23 ($ in millions) 3Q25 4Q25 1Q26 2Q26 3Q26 Net income $182 $107 $82 $22 $29 Provision for income taxes 55 28 22 10 14 Income (loss) before provisions for income taxes 236 134 105 32 43 Depreciation and amortization 13 13 14 14 14 (Increase) de
Slide 24: Reconciliation of GAAP Items to Non-GAAP Items
Reconciliation of GAAP net income to adjusted net income, adjusted EPS and annualized adjusted return on equity RECONCILIATION OF GAAP ITEMS TO NON-GAAP ITEMS 24 Note: Figures may not sum due to rounding (1) Includes principal-only stripped MBS valuation-related accretion changes included within net
Slide 25: PennyMac
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PennyMac Financial Services — Q3 2026 Earnings Presentation on 6ix