Pennymac Financial Services, Inc. · NYSE:PFSI
Pennymac Financial Services — Q2 2026 Earnings Presentation
26 slides from Pennymac Financial Services's earnings presentation, Jul 29, 2026
Slide 1: 2Q26 Earnings Report
2Q26 EARNINGS REPORT PennyMac Financial Services, Inc. July 2026
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, our financial results, fut
Slide 3: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS 2Q26 Production Servicing Results Segment Segment Net Book value Pretax Pretax income per share income income $22mm $83.49 $38mm $22mm Pretax income excluding Diluted Adjusted Total loan acquisitions PFSI correspondent valuation-related Valuation-related EPS(1) EPS(1)(2) an
Slide 4: Business Updates
BUSINESS UPDATES Our new consumer direct loan origination system has facilitated a rapid implementation of process-automating AI agents, including the launch of a proprietary Natural Language Virtual Agent (NLVA) across both outbound and inbound calls Conventional first-lien refinance recapture rates
Slide 5: Recent and Expected Adjusted Returns on Equity
RECENT AND EXPECTED ADJUSTED RETURNS ON EQUITY Annualized Adjusted ROE(1) Mortgage Banking Adjusted Pretax Income ($ in millions) Servicing net of valuation related changes(1) Production With a smaller projected origination market due to higher interest rates, we expect adjusted ROEs to remain in th
Slide 6: Driving Toward Mid-Teens Returns on Equity
DRIVING TOWARD MID-TEENS RETURNS ON EQUITY Structural Cost Increased Direct Tech Expense Capital Light Fee Reductions Channel Earnings Inflection Growth AI adoption drives down Expect to maintain or Technology spend currently Cenlar expected to add stable, origination and processing continue
Slide 7: Earnings Potential from Consumer Direct Recapture Opportunity
EARNINGS POTENTIAL FROM CONSUMER DIRECT RECAPTURE OPPORTUNITY Gov’t. Loans: Note Rates >5%(1) Gov’t. Loan First Lien Refinance Recapture (UPB in billions) Refinance Recapture Origination Volume (UPB in billions) First-lien refinance recapture rate(2) > 7.00% 6.50 - 6.99% Strong improvement in 6.00 - 6.
Slide 8: Technology Driving Efficiencies and Lower Expenses in Servicing
TECHNOLOGY DRIVING EFFICIENCIES AND LOWER EXPENSES IN SERVICING Direct Servicing Expense(1) Operating Expenses (annual $ cost per loan) (annualized bps of average servicing portfolio UPB) % Government Portfolio • Pennymac’s per loan servicing expenses are among the • Continuing to increase efficiency
Slide 9: Additional Efficiencies to Be Realized in Consumer Direct
ADDITIONAL EFFICIENCIES TO BE REALIZED IN CONSUMER DIRECT Workflow & Objective Automation Substantial Reduction in Cost-to-Produce % of processes automated or done by AI agents Standardizing 150 distinct operational Targeting a 20%+ reduction in workflows across the full origination processing costs p
Slide 10: Key Operating Metrics & Other Financial Schedules
KEY OPERATING METRICS & OTHER FINANCIAL SCHEDULES
Slide 11: Production Segment Highlights – Volume by Channel
PRODUCTION SEGMENT HIGHLIGHTS – VOLUME BY CHANNEL Correspondent Broker Direct Consumer Direct (UPB in billions) (UPB in billions) (UPB in billions) Acquisitions for PFSI(1) Acquisitions for PMT(2) Originations Locks Originations Locks (3) Total Locks July (Estimated) July (Estimated) July (Estimated
Slide 12: Drivers of Production Segment Results
DRIVERS OF PRODUCTION SEGMENT RESULTS 2Q25 1Q26 2Q26 Revenue Revenue Revenue Fallout Margin / contribution Fallout Margin / contribution Fallout Margin / contribution ($ in millions) adjusted fulfillment fee (net of loan adjusted fulfillment fee (net of loan adjusted fulfillment fee (net of loan locks
Slide 13: Servicing Segment Highlights
SERVICING SEGMENT HIGHLIGHTS Loan Servicing Portfolio Composition • Servicing portfolio totaled $731 billion in UPB at June 30, (UPB in billions) 2026, up 1% Q/Q and 4% Y/Y • Production volumes more than offset prepayment activity, leading to continued portfolio growth • 60+ day delinquency rate for
Slide 14: Drivers of Servicing Segment Results
DRIVERS OF SERVICING SEGMENT RESULTS 2Q25 1Q26 2Q26 basis basis basis $ in millions points(1) $ in millions points(1) $ in millions points(1) Loan servicing fees $ 507 29.4 $ 532 29.5 $ 536 29.5 Earnings on custodial balances and deposits and other income(2) 116 6.7 105 5.8 119 6.6 Realization of MS
Slide 15: Hedging Approach Moderates the Volatility of PFSI's Results
HEDGING APPROACH MODERATES THE VOLATILITY OF PFSI’S RESULTS MSR Valuation Changes and Offsets • In 2Q26, gains from changes in fair value inputs on ($ in millions) MSR were more than offset by hedging declines and costs MSR fair value changes before realization of cash flows(1) Hedging and related ga
Slide 16: Strong Balance Sheet and Diverse Capital Structures
STRONG BALANCE SHEET AND DIVERSE CAPITAL STRUCTURES Low Debt-to-Equity (D/E) Ratio • Active management of targeted D/E ratios: ‒ Total D/E ratio decreased Q/Q due to lower balances of loans held for sale ‒ Non-funding D/E ratio increased slightly due to higher interest rates, which drove increased u
Slide 17: Appendix
APPENDIX ™ PENNYMAC
Slide 18: Comprehensive Mortgage Banking Platform Is a Flywheel
COMPREHENSIVE MORTGAGE BANKING PLATFORM IS A FLYWHEEL Large volumes of production grow servicing portfolio Loan Production Loan Servicing 2nd largest in the U.S.(1) 5th largest in the U.S.(2) Servicing Portfolio UPB(2) (in billions) Correspondent Broker Consumer Production Direct Direct Leading mark
Slide 19: Track Record of Strong Performance Across Market Environments
TRACK RECORD OF STRONG PERFORMANCE ACROSS MARKET ENVIRONMENTS PFSI's Annualized Return on Average Common Stockholders' Equity (ROE) Proven ability to generate attractive ROEs… U.S. Origination Market(3) 10-Year Treasury Yield(4) (in trillions) …across different market environments… PFSI Purchase Mix
Slide 20: Current Market Environment and Macroeconomic Trends
CURRENT MARKET ENVIRONMENT AND MACROECONOMIC TRENDS Average 30-year fixed rate mortgage(1) 6.38% 6.49% 10-year Treasury Bond Yield(2) 4.32% 4.47% U.S. Origination Market Forecast(3) Macroeconomic Metrics(4) (UPB in trillions) 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 10-year Treasury bond yield 4.2% 4
Slide 21: PennyMac's Market Share Over Time Across Its Businesses
PENNYMAC’S MARKET SHARE OVER TIME ACROSS ITS BUSINESSES Correspondent Production Market Share(1) Loan Servicing Market Share(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 share:
Slide 22: Delinquency Trends and Servicing Advances Outstanding
DELINQUENCY TRENDS AND SERVICING ADVANCES OUTSTANDING Trends in Delinquency and Foreclosure Rates(1) 30-60 Day 60-90 Day 90+ Day In foreclosure ● Overall, mortgage delinquency rates for the MSR portfolio increased from the prior quarter, consistent with typical seasonal trends and within expected ra
Slide 23: Reconciliation of GAAP Net Income to Adjusted EBITDA
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA ($ in millions) 2Q25 1Q26 2Q26 Net income $ 136 $ 82 $ 22 Provision for (benefit from) income taxes (60) 22 10 Income before provision for income taxes 76 105 32 Depreciation and amortization 15 14 14 (Increase) decrease in fair value of MSRs and M
Slide 24: Reconciliation of GAAP Items to Non-GAAP Items
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 ($ in millions) 2Q25 3Q25 4Q25 1Q26 2Q26 Net income $ 136 $ 182 $ 107 $ 82 $ 22 (Increase) decrease in fair value of MSRs and MSLs due to cha
Slide 25: Reconciliation of GAAP Items to Non-GAAP Items
RECONCILIATION OF GAAP ITEMS TO NON-GAAP ITEMS Reconciliation of GAAP servicing pretax income to servicing pretax income net of valuation related changes ($ in millions) 2Q25 3Q25 4Q25 1Q26 2Q26 Servicing pretax income $ 54 $ 157 $ 37 $ 13 $ 22 (Increase) decrease in fair value of MSRs and MSLs due
Slide 26: PennyMac Financial Services
™ PENNYMAC FINANCIAL SERVICES,
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