8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 24, 2024

PennyMac Financial Services, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-38727	83-1098934
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3043 Townsgate Road, Westlake Village, California	91361
(Address of principal executive offices)	(Zip Code)

(818) 224-7442

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	PFSI	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02    Results of Operations and Financial Condition.

On April 24, 2024, PennyMac Financial Services, Inc. (the “Company”) issued a press release and a slide presentation announcing its financial results for the fiscal quarter ended March 31, 2024. A copy of the press release and the slide presentation used in connection with the Company’s presentation of financial results were made available on April 24, 2024 and are furnished as Exhibits 99.1 and Exhibit 99.2, respectively. In addition, the Company has made available other supplemental financial information for the fiscal quarter ended March 31, 2024 on its website at pfsi.pennymac.com.

The information in Item 2.02 of this report, including the exhibits hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of Section 18, nor shall it be deemed incorporated by reference into any disclosure document relating to the Company, except to the extent, if any, expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit No.	Description
99.1	Press Release, dated April 24, 2024, issued by PennyMac Financial Services, Inc. pertaining to its financial results for the fiscal quarter ended March 31, 2024.
99.2	Slide Presentation for use beginning on April 24, 2024 in connection with a presentation of financial results for the fiscal quarter ended March 31, 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PENNYMAC FINANCIAL SERVICES, INC.
Dated: April 24, 2024	/s/ Daniel S. Perotti
	Daniel S. Perotti
	Senior Managing Director and Chief Financial Officer

EX-99.1

Exhibit 99.1

PennyMac Financial Services, Inc. Reports First Quarter 2024 Results

WESTLAKE VILLAGE, Calif. – April 24, 2024 – PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $39.3 million for the first quarter of 2024, or $0.74 per share on a diluted basis, on revenue of $305.7 million. Book value per share decreased to $70.13 from $70.52 at December 31, 2023.

PFSI’s Board of Directors declared a first quarter cash dividend of $0.20 per share, payable on May 24, 2024, to common stockholders of record as of May 14, 2024.

First Quarter 2024 Highlights

· Pretax income was $43.9 million, compared to a pretax loss of $54.2 million from the prior quarter and pretax income of $38.1 million from the first quarter of 2023

· Production segment pretax income was $35.9 million, down slightly from $39.4 million in the prior quarter and up from a pretax loss of $19.6 million in the first quarter of 2023

o Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were $21.7 billion in unpaid principal balance (UPB), down 19 percent from the prior quarter and 5 percent from the first quarter of 2023

o Broker direct interest rate lock commitments (IRLCs) were $3.4 billion in UPB, up 20 percent from the prior quarter and 31 percent from the first quarter of 2023

o Consumer direct IRLCs were $2.2 billion in UPB, up 35 percent from the prior quarter and down 2 percent from the first quarter of 2023

o Government correspondent IRLCs totaled $8.5 billion in UPB, down 24 percent from the prior quarter and 18 percent from the first quarter of 2023

o Conventional correspondent IRLCs for PFSI’s account totaled $8.6 billion in UPB, down 14 percent from the prior quarter and up 128 percent from the first quarter of 2023

1

o Correspondent acquisitions of conventional conforming loans fulfilled for PMT were $1.8 billion in UPB, down 29 percent from the prior quarter and 73 percent from the first quarter of 2023

· Servicing segment pretax income was $4.9 million, compared to a pretax loss of $95.5 million in the prior quarter and pretax income of $57.4 million in the first quarter of 2023

o Pretax income excluding valuation-related items and non-recurring items was $124.7 million, down 14 percent from the prior quarter as higher net loan servicing fees was more than offset by increased recognition of realization of cash flows

o Valuation-related and non-recurring items included:

– $170.0 million in mortgage servicing rights (MSR) fair value gains, before recognition of realization of cash flows, more than offset by $294.6 million in hedging declines

– $1.6 million arbitration accrual

· Net impact on pretax income related to these items was $(126.3) million, or $(1.74) in diluted earnings per share

– $6.6 million of reversals of provisions for losses on active loans

o Servicing portfolio grew to $617.4 billion in UPB, up 2 percent from December 31, 2023, and 9 percent from March 31, 2023 driven by production volumes which more than offset prepayment activity

· Investment Management segment pretax income was $3.1 million, up from $1.9 million in the prior quarter and $0.3 million in the first quarter of 2023

o Net assets under management (AUM) were $2.0 billion, essentially unchanged from December 31, 2023, and March 31, 2023

· Issued new, 5-year $425 million term notes secured by Ginnie Mae MSR and servicing advances

o Redeemed $425 million of term notes due August 2025

2

"PennyMac Financial reported strong operating earnings in the first quarter, with an annualized operating return on equity of 15 percent in what is expected to be the one of the smallest quarterly origination markets of this cycle,” said Chairman and CEO David Spector. “Strong volume increases in our consumer and broker direct channels drove continued profitability in our production segment. Although net fair value declines on MSRs and hedges impacted our results this quarter, our large and growing servicing portfolio continues to anchor our financial performance, contributing meaningfully to revenue and cash earnings in this higher interest rate environment.”

Mr. Spector continued, “Our long track record of profitability and strong capital structure has enabled this management team to continue developing industry-leading mortgage banking technology. Our proprietary servicing system provides both competitive advantages and opportunities for expansion into additional businesses, which we believe has the potential to unlock additional value for our stakeholders over time. PennyMac Financial has developed into one of the premier mortgage banking companies in the country, distinguished by its balanced business model with leading positions in both loan production and servicing, and I believe we are the best-positioned company in the industry for future growth regardless of the path of interest rates.”

3

The following table presents the contributions of PennyMac Financial’s segments to pretax income:

	Quarter ended March 31, 2024
	Mortgage Banking								Investment
	Production		Servicing			Total			Management		Total
	(in thousands)
Revenue
Net gains on loans held for sale at fair value	$	141,431	$	21,010		$	162,441		$	-	$	162,441
Loan origination fees		36,371		-			36,371			-		36,371
Fulfillment fees from PMT		4,016		-			4,016			-		4,016
Net loan servicing fees		-		100,954			100,954			-		100,954
Management fees		-		-			-			7,188		7,188
Net interest expense:
Interest income		63,931		92,411			156,342			84		156,426
Interest expense		61,896		103,873			165,769			-		165,769
		2,035		(11,462	)		(9,427	)		84		(9,343	)
Other		818		1,096			1,914			2,119		4,033
Total net revenue		184,671		111,598			296,269			9,391		305,660
Expenses		148,779		106,662			255,441			6,336		261,777
Income before provision for income taxes	$	35,892	$	4,936		$	40,828		$	3,055	$	43,883

Production Segment

The Production segment includes the correspondent acquisition of newly originated government- insured and certain conventional conforming loans for PennyMac Financial’s own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis.

PennyMac Financial’s loan production activity for the quarter totaled $21.7 billion in UPB, $19.9 billion of which was for its own account and $1.8 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $22.6 billion in UPB, down 12 percent from the prior quarter and up 20 percent from the first quarter of 2023.

Production segment pretax income was $35.9 million, compared to $39.4 million in the prior quarter and a pretax loss of $19.6 million in the first quarter of 2023. Production segment revenue totaled $184.7 million, up 5 percent from the prior quarter and 52 percent from the first quarter of 2023. The increase from the prior quarter was primarily due to higher net gains on loans held for sale at fair value due to higher volumes in the direct lending channels, and the increase from the first quarter of 2023 was primarily due to higher overall volumes and margins.

4

The components of net gains on loans held for sale are detailed in the following table:

	Quarter ended
	March 31, 2024			December 31, 2023			March 31, 2023
	(in thousands)
Receipt of MSRs	$	412,520		$	549,965		$	286,533
Mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust		(353	)		(290	)		(485	)
Provision for representations and warranties, net		(632	)		(1,002	)		(290	)
Cash loss, including cash hedging results		(158,971	)		(606,160	)		(271,524	)
Fair value changes of pipeline, inventory and hedges		(90,123	)		206,252			90,151
Net gains on mortgage loans held for sale	$	162,441		$	148,765		$	104,385
Net gains on mortgage loans held for sale by segment:
Production	$	141,431		$	124,267		$	74,726
Servicing	$	21,010		$	24,498		$	29,659

PennyMac Financial performs fulfillment services for certain conventional conforming and jumbo loans acquired by PMT from non-affiliates in its correspondent production business. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.

Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $4.0 million in the first quarter, down 19 percent from the prior quarter and 66 percent from the first quarter of 2023. The decrease from the first quarter of 2023 was driven by lower conventional volumes acquired for PMT’s account. PFSI began acquiring certain conventional loans sourced through PMT’s correspondent production business in the fourth quarter of 2022.

Net interest income in the first quarter totaled $2.0 million, down from $8.2 million in the prior quarter. Interest income totaled $63.9 million, down from $73.4 million in the prior quarter, and interest expense totaled $61.9 million, down from $65.2 million in the prior quarter, both primarily due to lower average balance of loans held for sale and the associated financing during the quarter.

Production segment expenses were $148.8 million, up 8 percent from the prior quarter and 5 percent from the first quarter of 2023, both primarily due to higher overall loan volumes in the direct lending channels.

5

Servicing Segment

The Servicing segment includes income from owned MSRs and subservicing. The total servicing portfolio grew to $617.4 billion in UPB at March 31, 2024, an increase of 2 percent from December 31, 2023, and 9 percent from March 31, 2023. PennyMac Financial’s owned MSR portfolio grew to $386.6 billion in UPB, up 3 percent from December 31, 2023, and 18 percent from March 31, 2023. PennyMac Financial subservices $230.8 billion in UPB for PMT.

The table below details PennyMac Financial’s servicing portfolio UPB:

	March 31, 2024		December 31, 2023		March 31, 2023
	(in thousands)
Prime servicing:
Owned
Mortgage servicing rights and liabilities
Originated	$	364,441,567	$	352,790,614	$	302,265,588
Purchased		17,051,740		17,478,397		19,026,774
		381,493,307		370,269,011		321,292,362
Loans held for sale		5,111,719		4,294,689		6,692,155
		386,605,026		374,563,700		327,984,517
Subserviced for PMT		230,809,585		232,643,144		236,476,714
Total prime servicing		617,414,611		607,206,844		564,461,231
Special servicing - subserviced for PMT		9,427		9,925		13,167
Total loans serviced	$	617,424,038	$	607,216,769	$	564,474,398

Servicing segment pretax income was $4.9 million, compared to a pretax loss $95.5 million in the prior quarter and pretax income of $57.4 million in the first quarter of 2023. Servicing segment pretax loss in the fourth quarter of 2023 included a non-recurring arbitration accrual of $158.4 million. Servicing segment net revenues totaled $111.6 million, down from $175.8 million in the prior quarter and $172.1 million in the first quarter of 2023.

Revenue from net loan servicing fees totaled $101.0 million, down from $162.3 million in the prior quarter and $148.8 million in the first quarter of 2023. Loan servicing fees were $424.2 million, up from $402.5 million in the prior quarter primarily due to growth in PFSI’s owned portfolio, reduced by $198.6 million in realization of cash flows, which was up from the prior quarter due to lower average yields during the quarter. Net valuation related declines totaled $124.7 million, compared to $75.9 million of such declines in the prior quarter. MSR fair value gains, before realization of cash flows, were $170.0 million and hedging losses were $294.6 million; hedges were positioned with increased net exposure to interest rate volatility during the quarter to limit elevated hedge costs. We began purchasing principal-only bonds in the first quarter as hedges against prepayment risk.

6

The following table presents a breakdown of net loan servicing fees:

	Quarter ended
	March 31, 2024			December 31, 2023			March 31, 2023
	(in thousands)
Loan servicing fees	$	424,184		$	402,484		$	338,057
Changes in fair value of MSRs and MSLs resulting from:
Realization of cash flows		(198,564	)		(164,255	)		(146,183	)
Change in fair value inputs		169,979			(370,705	)		(90,264	)
Hedging (losses) gains		(294,645	)		294,787			47,227
Net change in fair value of MSRs and MSLs		(323,230	)		(240,173	)		(189,220	)
Net loan servicing fees	$	100,954		$	162,311		$	148,837

Servicing segment revenue included $21.0 million in net gains on loans held for sale related to early buyout loans (EBOs), down from $24.5 million in the prior quarter and $29.7 million in the first quarter of 2023. These EBOs are previously delinquent loans that were brought back to performing status through PennyMac Financial’s successful servicing efforts.

Net interest expense totaled $11.5 million, compared to $13.7 million in the prior quarter and $6.2 million in the first quarter of 2023. Interest income was $92.4 million, up slightly from $91.6 million in the prior quarter. Interest expense was $103.9 million, down slightly from $105.3 million in the prior quarter.

Servicing segment expenses totaled $106.7 million, down from $271.3 million in the prior quarter which included a non-recurring arbitration accrual of $158.4 million. Excluding the impact of the arbitration accrual in the prior quarter, servicing expenses were down $6.2 million dollars, primarily due to a reversal in the provision for credit losses on active loans.

Investment Management Segment

PennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation. Net AUM were $2.0 billion as of March 31, 2024, essentially unchanged from December 31, 2023 and March 31, 2023.

7

Pretax income for the Investment Management segment was $3.1 million, up from $1.9 million in the prior quarter and $0.3 million in the first quarter of 2024. Base management fees from PMT were $7.2 million, essentially unchanged from the prior quarter and first quarter of 2023. No performance incentive fees were earned in the first quarter.

The following table presents a breakdown of management fees:

	Quarter ended
	March 31, 2024		December 31, 2023		March 31, 2023
	(in thousands)
Management fees:
Base	$	7,188	$	7,252	$	7,257
Performance incentive		-		-		-
Total management fees	$	7,188	$	7,252	$	7,257
Net assets of PennyMac Mortgage Investment Trust	$	1,958,914	$	1,957,090	$	1,970,734

Investment Management segment expenses totaled $6.3 million, down 18 percent from the prior quarter and down 29 percent from the first quarter of 2023.

Consolidated Expenses

Total expenses were $261.8 million, down from $416.2 million in the prior quarter, which included a non-recurring arbitration accrual of $158.4 million. Excluding the impact of the arbitration accrual in the prior quarter, total expenses were up $4.0 million, primarily due to increased production segment expenses arising from higher volumes in the direct lending channels.

Taxes and Other

PFSI recorded a provision for tax expense of $4.6 million, resulting in an effective tax rate of 10.4 percent due to the vesting of certain stock-based compensation awards, which positively impacted PFSI’s tax liability.

8

Book value per share decreased to $70.13 from $70.52 at December 31, 2023 due to the annual issuance of additional common stock related to our equity compensation awards program, which more than offset the increase in retained earnings.

***

Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Wednesday, April 24, 2024. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs over 3,800 people across the country. For the twelve months ended March 31, 2024, PennyMac Financial’s production of newly originated loans totaled $98 billion in unpaid principal balance, making it the second largest mortgage lender in the nation. As of March 31, 2024, PennyMac Financial serviced loans totaling $617 billion in unpaid principal balance, making it a top five mortgage servicer in the nation. Additional information about PennyMac Financial Services, Inc. is available at pfsi.pennymac.com.

Media	Investors
Lauren Padilla	Kevin Chamberlain
mediarelations@pennymac.com	Isaac Garden 805.225.8224
	PFSI_IR@pennymac.com
	818.224.7028

9

Forward Looking Statements

This press release 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 results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements.

Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in real estate values, housing prices and housing sales; the continually changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by the Consumer Financial Protection Bureau and its enforcement of these regulations; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; changes in macroeconomic and U.S. real estate market conditions; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria or characteristics or under other circumstances; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; conflicts of interest in allocating our services and investment opportunities among us and our advised entities; the effect of public opinion on our reputation; our exposure to risks of loss and disruptions in operations resulting from severe weather events, man-made or other natural conditions, climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; our initiation or expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to mitigate cybersecurity risks and cyber incidents; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward- looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.

The Company’s earnings materials contain financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as pretax income excluding valuation-related items that provide a meaningful perspective on the Company’s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosure has limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.

10

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	March 31, 2024		December 31, 2023		March 31, 2023
	(in thousands, except share amounts)
ASSETS
Cash	$	927,394	$	938,371	$	1,497,903
Short-term investment at fair value		69		10,268		3,584
Principal-only stripped mortgage-backed securities at fair value pledged to creditors		524,576		-		-
Loans held for sale at fair value		5,200,350		4,420,691		6,772,423
Derivative assets		108,987		179,079		110,664
Servicing advances, net		499,955		694,038		547,158
Mortgage servicing rights at fair value		7,483,210		7,099,348		6,003,390
Investment in PennyMac Mortgage Investment Trust at fair value		1,101		1,121		925
Receivable from PennyMac Mortgage Investment Trust		30,835		29,262		35,166
Loans eligible for repurchase		4,401,896		4,889,925		4,557,325
Other		623,368		582,460		574,647
Total assets	$	19,801,741	$	18,844,563	$	20,103,185
LIABILITIES
Assets sold under agreements to repurchase	$	5,435,354	$	3,763,956	$	5,764,157
Mortgage loan participation purchase and sale agreements		363,798		446,054		515,358
Notes payable secured by mortgage servicing assets		1,972,020		1,873,415		2,471,930
Unsecured senior notes		2,521,031		2,519,651		1,780,833
Derivative liabilities		40,784		53,275		49,087
Mortgage servicing liabilities at fair value		1,732		1,805		2,011
Accounts payable and accrued expenses		263,338		449,896		300,157
Payable to PennyMac Mortgage Investment Trust		127,993		208,210		142,007
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement		26,099		26,099		26,099
Income taxes payable		1,047,337		1,042,886		1,010,928
Liability for loans eligible for repurchase		4,401,896		4,889,925		4,557,325
Liability for losses under representations and warranties		29,976		30,788		31,103
Total liabilities		16,231,358		15,305,960		16,650,995
STOCKHOLDERS' EQUITY
Common stock¾authorized 200,000,000 shares of $0.0001 par value; issued and outstanding 50,907,865, 50,178,963, and 50,097,030 shares, respectively		5		5		5
Additional paid-in capital		27,179		24,287		-
Retained earnings		3,543,199		3,514,311		3,452,185
Total stockholders' equity		3,570,383		3,538,603		3,452,190
Total liabilities and stockholders’ equity	$	19,801,741	$	18,844,563	$	20,103,185

11

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Quarter ended
	March 31, 2024			December 31, 2023			March 31, 2023
	(in thousands, except per share amounts)
Revenues
Net gains on loans held for sale at fair value	$	162,441		$	148,765		$	104,385
Loan origination fees		36,371			38,059			31,390
Fulfillment fees from PennyMac Mortgage Investment Trust		4,016			4,931			11,923
Net loan servicing fees:
Loan servicing fees		424,184			402,484			338,057
Change in fair value of mortgage servicing rights and mortgage servicing liabilities		(28,585	)		(534,960	)		(236,447	)
Mortgage servicing rights hedging results		(294,645	)		294,787			47,227
Net loan servicing fees		100,954			162,311			148,837
Net interest expense:
Interest income		156,426			164,942			128,478
Interest expense		165,769			170,501			131,771
		(9,343	)		(5,559	)		(3,293	)
Management fees from PennyMac Mortgage Investment Trust		7,188			7,252			7,257
Other		4,033			6,180			2,363
Total net revenues		305,660			361,939			302,862
Expenses
Compensation		146,376			135,138			147,935
Technology		35,967			32,870			36,038
Loan origination		30,568			26,879			27,086
Servicing		16,104			28,907			12,632
Professional services		9,262			9,684			21,007
Occupancy and equipment		8,676			8,772			8,820
Marketing and advertising		3,671			4,180			3,241
Legal settlements		1,542			160,025			(4,742	)
Other		9,611			9,714			12,698
Total expenses		261,777			416,169			264,715
Income (loss) before provision for (benefit from) income taxes		43,883			(54,230	)		38,147
Provision for (benefit from) income taxes		4,575			(17,388	)		7,769
Net income (loss)	$	39,308		$	(36,842	)	$	30,378
Earnings (loss) per share
Basic	$	0.78		$	(0.74	)	$	0.61
Diluted	$	0.74		$	(0.74	)	$	0.57
Weighted-average common shares outstanding
Basic		50,547			49,987			50,154
Diluted		53,100			49,987			53,352
Dividend declared per share	$	0.20		$	0.20		$	0.20

12

PENNYMAC FINANCIAL SERVICES, INC. RECONCILIATION OF

NET INCOME TO OPERATING NET INCOME

	Quarter ended
	March 31, 2024
		(in thousands, except annualized operating return on equity)
Net income	$	39,308
Increase in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model		(169,979	)
Hedging losses associated with MSRs		294,645
Non-recurring item - accrual for arbitration result		1,600
Adjustments	$	126,266
Tax impacts of adjustments(1)		33,902
Operating net income	$	131,672
Average stockholders' equity	$	3,552,273
Annualized operating return on equity		15	%

⁽¹⁾ Assumes a tax rate of 26.85%

13

EX-99.2

Exhibit 99.2

1Q24 EARNINGS REPORT PennyMac Financial Services, Inc. April 2024

2 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 plans and in vestment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expression s o r words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward - looking statements. Actual results and o perations for any future period may vary materially from those projected herein and from past results discussed herein. These forward - looking statements include, but are not limited to, statements rega rding future changes in interest rates, prepayment rates and the housing market; future loan origination, servicing and production, including future production, operating and hedge expenses; fu ture loan delinquencies and forbearances; future earnings and return on equity as well as other business and financial expectations. Factors which could cause actual results to differ materially fr om historical results or those anticipated include, but are not limited to: interest rate changes; declines in real estate or significant changes in U.S. housing prices or activity in the U.S. housing mar ket; the continually changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any no nco mpliance with the laws and regulations applicable to our business; the mortgage lending and servicing - related regulations promulgated by the Consumer Financial Protection Bureau and its enforceme nt of these regulations; our dependence on U.S. government - sponsored entities and changes in their current roles or their guarantees or guidelines; the licensing and operational requir eme nts of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; changes in macroeconomic and U .S. real estate market conditions; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights; our subst ant ial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage ba nking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third - party purchasers or repurchase loans if loans that we ori ginate, acquire, service or assist in the fulfillment of, fail to meet certain criteria or characteristics or under other circumstances; our obligation to indemnify PMT if our services fail to meet certai n c riteria or characteristics or under other circumstances; decreases in investment management and incentive fees; conflicts of interest in allocating our services and investment opportunities among us and our advised entities; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the effect of public opinion on our reputation; our exposure to risks of loss and di sruptions in operations resulting from severe weather events, man - made or other natural conditions, climate change and pandemics; our ability to effectively identify, manage and hedge our credit, int erest rate, prepayment, liquidity and climate risks; our initiation or expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward - looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission fr om time to time. The Company undertakes no obligation to publicly update or revise any forward - looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only. This presentation contains financial information calculated other than in accordance with U.S. generally accepted accounting pri nciples (“GAAP”), such as pretax income and operating income excluding valuation - related changes and a non - recurring legal accrual that provides a meaningful perspective on the Company’s bu siness results since the Company utilizes this information to evaluate and manage the business. Non - GAAP disclosure has limitations as an analytical tool and should not be viewed as a substi tute for financial information determined in accordance with GAAP. FORWARD - LOOKING STATEMENTS

3 3 FIRST QUARTER HIGHLIGHTS PRODUCTION INVESTMENT MANAGEMENT Net income $39mm 1Q24 Results Diluted EPS (1) $0.74 Return on equity 4% Book value per share $70.13 Dividend per common share $0.20 Pretax income $36mm $2.2bn PFSI correspondent lock volume $17.1bn Broker direct lock volume $3.4bn $21.7bn Pretax income $3mm Net AUM (1) $2.0bn Revenue $9.4mm Note: All figures are for 1Q24 or as of 3/31/24 (1) EPS = earnings per share; MSR = mortgage servicing rights; UPB = unpaid principal balance, includes loans held for sale at fa ir value; AUM = assets under management (2) Includes volume fulfilled or subserviced for PennyMac Mortgage Investment Trust (NYSE: PMT) (3) Excludes $170 million in MSR fair value gains, $295 million in hedging losses, a $7 million reversal of provision for losses on active loans, and $2 million of accrued interest related to a non - recurring arbitration accrual - see slide 14 for additional d etails SERVICING Pretax income $5mm MSR (1) fair value changes, hedge, and arbitration accrual impact $(126)mm Pretax income excluding valuation - related items and arbitration accrual (3) $125mm MSR fair value changes, hedge and arbitration accrual impact to diluted EPS $(1.74) Total servicing portfolio UPB (1)(2) $617bn Total loan acquisitions and originations (2) Consumer direct lock volume Strong operating performance partially offset by net fair value declines on hedged mortgage servicing rights

ORIGINATION MARKET EXPECTATIONS REFLECT GROWTH 4 U.S. Mortgage Origination Market (1) ($ in trillions) Mortgage Rates Remain High Note: Figures may not sum due to rounding (1) Actual originations: Inside Mortgage Finance. F orecast originations: Average of Mortgage Bankers Association (4/18/24) and Fannie Mae (4/11/24) forecasts. (2) Freddie Mac Primary Mortgage Market Survey 7.10% as of 4/18/24 ( 3 ) Zelman & Associates 3 /28/2024 (2) • Current third - party estimates for industry originations in 2024 average $1.8 trillion; however, these estimates have potential to decline if interest rates remain elevated for longer than forecasted ‒ Unit origination volume is projected to increase in 2024, but remains well below normalized levels (3) • Mortgage banking companies with large servicing portfolios and diversified business models are better positioned to offset the decline in profitability that has resulted from decreased origination volumes and margins 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Average 30-year fixed rate mortgage $1.6 $1.2 $1.4 $1.6 $0.7 $0.2 $0.4 $0.6 $2.3 $1.5 $1.8 $2.2 2022 2023 2024E 2025E Purchase Refinance

- $20 $24 $25 $39 $36 $94 $75 $120 $144 $125 $75 $99 $145 $184 $161 1Q23 2Q23 3Q23 4Q23 1Q24 Production Servicing net of valuation related changes and arbitration accrual • Significant increase in operating return on equity year over year in potentially one of the smallest quarterly origination markets of this interest rate cycle • Double digit operating return on equity expected in 2024 ‒ Servicing to continue driving earnings with additional upside potential from the production segment as the origination market improves 5 BUILDING ON DOUBLE DIGIT OPERATING RETURNS IN 2024 Annualized Operating ROE (1) (1) Note: Figures may not sum due to rounding (1) See slide 32 for a reconciliation of non - GAAP items Mortgage Banking Operating Pretax Income ($ in millions) 7% 10% 13% 15% 15% 1Q23 2Q23 3Q23 4Q23 1Q24

6 TECHNOLOGY INNOVATION TO UNLOCK ADDITIONAL STAKEHOLDER VALUE S ervicing S ystems E nvironment Direct and white label subservicing Partnerships with third parties Commercialization Drive efficiencies for our core businesses Leverage SSE to expand our current sub - servicing business beyond PMT Commercialize SSE into a multi - tenant, industry - leading servicing software platform Partner with innovative technologists to develop a comprehensive marketplace of next generation mortgage banking technology Proven, low - cost servicing system with multiple competitive advantages versus others in the market With our SSE technology free and clear of any restrictions on use or development, we are actively exploring a continuum of potential opportunities with benefits for our many stakeholders

7 Operating Expenses (bps of average servicing portfolio UPB) Revenue From Servicing & Placement Fees ($ in millions) SERVICING PROVIDES GROWING CASH FLOW AND SCALE BENEFITS • Increasing revenue contribution due to portfolio growth over time • Higher proportion of owned servicing in more recent periods drives increased servicing fees • Increasing contribution from placement fees driven by higher short - term rates in the current market environment • Increased scale and efficiency as the portfolio grows • Lower variable costs due to the implementation of our proprietary servicing system in 2019 • Delinquencies remain low in the current market environment, further reducing operating expenses (1) (1) (1) LTM = Last Twelve Months 10.5 9.5 9.0 9.2 8.3 7.2 6.9 2018 2019 2020 2021 2022 2023 1Q24LTM $772 $1,022 $1,057 $1,100 $1,351 $1,833 $1,941 2018 2019 2020 2021 2022 2023 1Q24LTM Earnings on custodial balances and deposits and other income Loan servicing, ancillary, and other fees

Total Servicing Portfolio With Note Rates of 5% or Greater (1) (UPB in bill ions) FUTURE RECAPTURE OPPORTUNITIES ENHANCED BY RECENT PRODUCTION 8 • Pennymac, through its multi - channel production platform, has been one of the largest producers of mortgage loans in recent periods as interest rates increased (1) ‒ Pennymac retains MSRs on nearly all mortgage loan production, driving continued organic servicing portfolio growth ‒ Quarterly production adds approximately $20 - $25 billion in UPB of loans at prevailing mortgage rates to the servicing portfoli o each quarter • The continued addition of higher interest rate loans to the servicing portfolio provides significant refinance opportunities for Consumer Direct when mortgage rates decline Note: Figures may not sum due to rounding (1) Includes loans acquired or subserviced for PMT and includes loans held for sale at fair value 25% of total servicing portfolio $43 $51 $55 $57 $60 $24 $38 $57 $78 $92 $67 $89 $111 $135 $153 1Q23 2Q23 3Q23 4Q23 1Q24 Note Rate of 5.00% up to 6.00% Note Rate of 6.00% or Greater

PENNYMAC’S MARKET SHARE OVER TIME ACROSS ITS BUSINESSES 9 Loan Servicing Market Share (1) Correspondent Production 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 based on Inside Mortgage Finance. For 1Q24LTM, we estimate $1.5 trillion in total origination volume, and that the correspondent channel represented 28% of the overall origination market, r eta il represented 55%, and broker represented 17%. Loan servicing market share is based on PFSI’s servicing portfolio UPB of $617 billion divided by $14.1 trillion in mort gag e debt outstanding 3.7% 4.1% 4.1% 4.3% 4.4% 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 0.9% 1.6% 1.1% 0.6% 0.7% 2020 2021 2022 2023 1Q24LTM 2.1% 2.4% 2.0% 3.3% 3.6% 2020 2021 2022 2023 1Q24LTM 17.7% 16.7% 15.0% 21.0% 20.6% 2020 2021 2022 2023 1Q24LTM

$13.5 $21.1 $16.4 $6.6 $2.5 $1.8 $20.2 $23.6 $18.1 $21.7 $23.9 $19.6 1Q23 4Q23 1Q24 PFSI Acquisitions PMT Acquisitions Total locks $1.1 $0.9 $1.4 $2.2 $1.6 $2.2 1Q23 4Q23 1Q24 Originations Locks 10 PRODUCTION SEGMENT HIGHLIGHTS – VOLUME BY CHANNEL Broker Direct (UPB in billions) Consumer Direct (UPB in billions) April 2024 (Estimated) April 2024 (Estimated) April 2024 (Estimated) Note: Figures may not sum due to rounding (1) Includes all government - insured or guaranteed loans and certain conventional loans PMT acquires through its correspondent produ ction business; PFSI earns income from holding and selling or securitizing the loans (2) Loans fulfilled for PMT; for these loans, PFSI earns a fulfillment fee from PMT rather than income from holding and selling o r securitizing the loans (3) Includes locks related to both PFSI and PMT loan acquisitions (4) Commitments to originate mortgage loans at specified terms at period end (1) (2) (3) Correspondent (UPB in billions) $1.5 $2.2 $2.1 $2.6 $2.8 $3.4 1Q23 4Q23 1Q24 Originations Locks Locks: (UPB in billions) $8.1 Locks: (UPB in billions) $1.5 Locks: (UPB in billions) $0.7 Acquisitions: (UPB in billions) $7.5 Originations: (UPB in billions) $1.0 Originations: (UPB in billions) $0.5 Committed pipeline (4) : (UPB in billions) $1.4 Committed pipeline (4) : (UPB in billions) $0.8

11 DRIVERS OF PRODUCTION SEGMENT RESULTS (1) Expected revenue net of direct origination costs at time of lock (2) Includes government - insured or guaranteed loans, as well as certain conventional loans for PFSI’s own account (3) Reflects timing of revenue and loan origination expense recognition, hedging, pricing & execution changes, and other items • Revenue per fallout adjusted lock for PFSI’s own account was 73 basis points in 1Q24, up from 61 basis points in 4Q23 – Higher volumes in the direct lending channels • Production expenses (net of loan origination expense) were 7% higher than the prior quarter due to increased volumes in the d ire ct lending channels • Broker Direct margins increased from the prior quarter; 4Q23 margins included impacts from higher levels of fallout Fallout Adjusted Locks Margin / Fulfillment Fee (bps) (1) Revenue Contribution (net of Loan origination expense) % of Production Revenue Fallout Adjusted Locks Margin / Fulfillment Fee (bps) (1) Revenue Contribution (net of Loan origination expense) % of Production Revenue Fallout Adjusted Locks Margin / Fulfillment Fee (bps) (1) Revenue Contribution (net of Loan origination expense) % of Production Revenue PFSI Correspondent (2) 13,521$ 25 33.7$ 36% 20,728$ 34 70.3$ 47% 16,660$ 35 58.5$ 38% Broker Direct 1,814 76 13.8 15% 2,116 79 16.6 11% 2,423 103 24.8 16% Consumer Direct 1,398 323 45.2 48% 1,045 410 42.8 29% 1,380 400 55.2 36% Other (3) n/a n/a (10.2) -11% n/a n/a 15.2 10% n/a n/a 11.7 8% Total PFSI account revenues (net of Loan origination expense) 16,733$ 49 82.5$ 87% 23,889$ 61 144.9$ 97% 20,462$ 73 150.3$ 97% PMT Conventional Correspondent 6,929 17 11.9 13% 2,162 23 4.9 3% 1,958 21 4.0 3% Total Production revenues (net of Loan origination expense) 40 94.4$ 100% 58 149.8$ 100% 69 154.3$ 100% Production expenses (less Loan origination expense) 23,662$ 48 114.1$ 121% 26,051$ 42 110.4$ 74% 22,421$ 53 118.4$ 77% Production segment pretax income (8) (19.6)$ -21% 15 39.4$ 26% 16 35.9$ 23% 1Q241Q23 4Q23

PRODUCTION SEGMENT HIGHLIGHTS – BUSINESS TRENDS BY CHANNEL 12 • Pennymac remains the largest correspondent aggregator in the U.S. • Lock volumes for PFSI’s account were down 19% and acquisitions were down 21% from 4Q23 ‒ PFSI is expected to continue purchasing conventional loans acquired through PMT’s correspondent channel in 2Q24 • 805 correspondent sellers at March 31, 2024, down slightly from December 31, 2023 • Purchase volume in 1Q24 was 91% of acquisitions • Lock volumes were up 20% and funded volumes were essentially unchanged from the prior quarter • Approved brokers totaled 4,069 at March 31, 2024, up 7% from December 31, 2023 and 36% from March 31, 2022, representing approximately a quarter of the total population of brokers ‒ Top brokers see Pennymac as a strong alternative to the top two channel lenders • Purchase loans were 89% of total originations • Lock volumes were up 35% and funding volumes were up 62% from 4Q23 ‒ Largely due to in an increase in refinances of government loans • Focused on meeting the changing needs of the 2.5 million customers in our servicing portfolio in a higher interest rate environment ‒ Purchase lock volume in 1Q24 was $374 million, or 17% of total locks, compared to $332 million, or 21% of total locks in 4Q23 ‒ $305 million or approximately 81% of total purchase locks sourced from our large and growing servicing portfolio ‒ $204 million of closed - end second lien mortgage loans funded in 1Q24, down from $226 million in 4Q23 C orrespondent Broker Direct C onsumer Direct Multi - channel approach provides flexibility and has proven to be a competitive advantage, supporting profitability and pricing discipline while driving growth of the servicing portfolio

$607.2 $617.4 ($11.5) $21.7 At 12/31/23 Runoff Additions from loan production At 3/31/24 SERVICING SEGMENT HIGHLIGHTS 13 • Servicing portfolio totaled $617.4 billion in UPB at March 31, 2024, up 2% Q/Q and 9% Y/Y • Production volumes more than offset prepayment activity, leading to continued portfolio growth • 60+ day delinquency rates declined from December 31, 2023 • Modification and EBO loan volume increased from the prior quarter Loan Servicing Portfolio Composition (UPB in billions) Net Portfolio Growth (UPB in billions) (1) Owned portfolio is predominantly government - insured and guaranteed loans – see Appendix slide 27 for additional details; delinqu ency data based on loan count (i.e., not UPB); CPR = Conditional Prepayment Rate (2) Represents PMT’s MSRs that we service and excludes distressed loan investments (3) UPB of completed modifications includes loss mitigation efforts associated with partial claims programs (4) Early buyouts of delinquent loans from Ginnie Mae pools during the period (5) Also includes loans sold with servicing released in connection with any asset sales by PMT (6) Includes consumer and broker direct production, government and conventional correspondent acquisitions, and conventional conf or ming and jumbo loan acquisitions subserviced for PMT (5) (6) $564.5 $607.2 $617.4 3/31/23 12/31/23 3/31/24 Prime owned Prime subserviced and other 4Q23 1Q24 Loans serviced (in thousands) 2,430 2,465 60+ day delinquency rate - owned portfolio (1) 3.4% 2.9% 60+ day delinquency rate - sub-serviced portfolio (2) 0.6% 0.5% Actual CPR - owned portfolio (1) 4.4% 5.4% Actual CPR - sub-serviced (2) 3.8% 4.0% UPB of completed modifications ($ in millions) (3) $3,275 $3,910 EBO loan volume ($ in millions) (4) $391 $681 Selected Operational Metrics

SERVICING PROFITABILITY EXCLUDING VALUATION - RELATED CHANGES 14 • Loan servicing fees increased from the prior quarter due to growth in the owned portfolio; operating expenses increased sligh tly • Realization of MSR cash flows increased by $34 million from the prior quarter due to lower average yields during the quarter • Earnings on custodial balances and deposits decreased slightly from the prior quarter due to seasonally lower average balance s – Custodial funds managed for PFSI’s owned servicing portfolio totaled $5.4 billion at March 31, 2024 up from $3.7 billion at D ece mber 31, 2023 – Earnings rate generally fluctuates with changes in the Federal Funds rate (1) Of average portfolio UPB, annualized (2) Comprised of net gains on mortgage loans held for sale at fair value and interest income related to EBO loans (3) Consists of interest shortfall and recording and release fees (4) Changes in fair value do not include realization of MSR cash flows (5) Considered in the assessment of MSR fair value changes $ in millions basis points (1) $ in millions basis points (1) $ in millions basis points (1) Loan servicing fees 338.1$ 24.2 402.5$ 26.9 424.2$ 27.7 Earnings on custodial balances and deposits and other income 65.9 4.7 89.9 6.0 87.7 5.7 Realization of MSR cash flows (146.2) (10.5) (164.3) (11.0) (198.6) (13.0) EBO loan-related revenue (2) 34.9 2.5 28.3 1.9 26.4 1.7 Servicing expenses: 0.0 Operating expenses (109.8) (7.9) (93.6) (6.3) (97.6) (6.4) Payoff-related expense (3) (5.3) (0.4) (7.1) (0.5) (8.2) (0.5) Losses and provisions for defaulted loans (10.5) (0.8) (13.2) (0.9) (13.2) (0.9) EBO loan transaction-related expense (0.2) (0.0) (0.3) (0.0) (0.2) (0.0) Interest expense (72.5) (5.2) (97.8) (6.5) (95.8) (6.3) Pretax income excluding fair value changes and arbitration accrual 94.4$ 6.8 144.4$ 9.6 124.7$ 8.1 Valuation-related changes MSR fair value (4) (90.3) (370.7) 170.0 Hedging derivatives gains (losses) 47.2 294.8 (294.6) Provision for losses on active loans (5) 6.1 (5.7) 6.6 Servicing segment pretax income excluding arbitration accrual 57.4$ 62.8$ 6.5$ Accrual for arbitration ruling Arbitration accrual 0.0 (158.4) (1.6) Servicing segement pretax income (loss) 57.4$ (95.5)$ 4.9$ Average servicing portfolio UPB 557,757$ 599,153$ 612,733$ 1Q23 1Q244Q23

($90) ($371) $170 $47 $295 ($295) ($20) $39 $36 1Q23 4Q23 1Q24 MSR fair value change before realization of cash flows Hedging and related losses Production pretax income 15 HEDGING APPROACH MODERATES THE VOLATILITY OF PFSI’S RESULTS MSR Valuation Changes and Offsets ($ in millions) • PFSI seeks to moderate the impact of interest rate changes on the fair value of its MSR asset through a comprehensive hedging strategy that also considers production - related income • In 1Q24, MSR fair value increased ‒ Higher interest rates drove expectations for lower prepayments and higher contributions from earnings on custodial balances in the future • Hedging declines more than offset MSR fair value gains – Positioned with increased net exposure to interest rate volatility during the quarter to limit elevated hedge costs • Began purchasing principal - only bonds in 1Q24 as hedges against prepayment risk

INVESTMENT MANAGEMENT SEGMENT HIGHLIGHTS 16 • Net AUM as of March 31, 2024 were $2.0 billion, essentially unchanged from December 31, 2023 and March 31, 2023 • Investment Management segment revenues were $9.4 million, down 3% from 4Q23 and up 1% from 1Q23 Investment Management AUM ($ in billions) Investment Management Revenues ($ in millions) $2.0 $2.0 $2.0 3/31/23 12/31/23 3/31/24 $9.3 $9.7 $9.4 1Q23 4Q23 1Q24

APPENDIX

18 ESTABLISHED LEADER WITH SUBSTANTIAL LONG - TERM GROWTH POTENTIAL $617 billion outstanding IN SER VIC ING (2) YEARS FOR PFSI AS A PUBLIC COMPANY 16 YEARS OF OPERATIONS PMT # 2 • CORRESPONDENT PRODUCTION • BROKER DIRECT • CONSUMER DIRECT IN PRODUCTION (1) IS A LEADING RESIDENTIAL MORTGAGE REIT # 5 Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT; all figures are as of 3/31/24 unless othe rwi se noted (1) Inside Mortgage Finance for the 12 months ended 12/31/23 (2) Inside Mortgage Finance as of 12/31/23 $ 2.0 billion in assets under management 14 - year track record 2.5 million customers $98 billion in LTM 1Q24 10

OVERVIEW OF PENNYMAC FINANCIAL’S BUSINESSES 19 LOAN PRODUCTION Correspondent aggregation of newly originated loans from third - party sellers Fulfillment fees for PMT’s delegated conventional loans PFSI earns gains on all loan production with the exception of loans fulfilled for PMT Broker direct and consumer direct origination of conventional and government - insured loans LOAN SERVICING Servicing for owned MSRs and subservicing for MSRs owned by PMT Major loan servicer for Fannie Mae, Freddie Mac and Ginnie Mae Industry - leading capabilities in special servicing Organic growth results from loan production, supplemented by MSR acquisitions and PMT investment activity INVESTMENT MANAGEMENT External manager of PMT, which invests in mortgage - related assets: GSE credit risk transfer investments MSR investments Investments in agency MBS, senior non - agency MBS and asset - backed securities Synergistic partnership with PMT Complex and highly regulated mortgage industry requires effective governance, compliance and operating systems Operating platform has been developed organically and is highly scalable Commitment to strong corporate governance, compliance and risk management since inception PFSI is well - positioned to navigate the current market and regulatory environment

20 PFSI’S BALANCED BUSINESS MODEL IS A FLYWHEEL • Diversified business through correspondent, broker direct and consumer direct channels • Correspondent and broker direct channels in particular allow PFSI to access purchase - money volume • Lacks the fixed overhead of the traditional, retail origination model • Recurring fee income business captured over the life of the loan • With higher interest rates, expected life of the loan increases resulting in a more valuable MSR asset • Creates a natural hedge to production income Customer base of 2.5 million drives leads for consumer direct Large volumes of production grow servicing portfolio Loan Production 2 nd largest in the U.S. (1) Loan Servicing 5 th largest in the U.S. (2) In both businesses, scale and efficiency are critical for success Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT (1) Inside Mortgage Finance for the 12 months ended 12/31/23 (2) Inside Mortgage Finance as of 12/31/23

TOP LENDER WITH COMPREHENSIVE AND EFFICIENT MULTI - CHANNEL PLATFORM 21 Centralized, cost - efficient fulfillment division supports all channels Multiple access points to the origination market with a proven ability to allocate resources towards channels with opportunity in the current environment Significant and ongoing investments in mortgage - banking technology provide an exceptional loan o rigination experience for our customers and business partners Scalable technology platform providing our consumers , brokers and correspondent partners with the liquidity, tools and products they need to succeed 2 producer of residential mortgage loans in 2023 (1) (1) Inside Mortgage Finance; includes volumes fulfilled for PMT # Strong access to purchase market Drives organic servicing portfolio growth Strong access to purchase market Positive and consistent execution for brokers Internet and call - center based Cost - efficient leads from our large servicing portfolio Correspondent Broker Direct Consumer Direct 21

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 10-Year Treasury Yield 1Q24 $1.8 $1.3 $1.7 $2.1 $1.8 $1.6 $2.3 $4.1 $4.4 $2.3 $1.5 $1.8 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E U.S. Origination Market (in trillions) 11% 19% 20% 22% 26% 13% 22% 61% 29% 14% 4% 4% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 PFSI's Annualized Return on Average Common Stockholders' Equity (ROE) 22 TRACK RECORD OF STRONG PERFORMANCE ACROSS MARKET ENVIRONMENTS Average: 20% Proven ability to generate attractive ROEs… …across different market environments… …with a strong orientation towards purchase money mortgages. (1) Represents partial year ; in itial public o ffering was May 8, 2013 (2) Adjusted return on equity was 7% excluding arbitration accrual of $158 million and related tax impact (3) Inside Mortgage Finance (4) Bloomberg (5) Inside Mortgage Finance for historical industry purchase mix, 1Q24 is an estimate of Mortgage Bankers Association (4/18/24) and Fannie Mae (4/11/24) forecasts (1) (3) (4) (5) (2) 48% 75% 64% 61% 73% 80% 63% 40% 45% 73% 90% 86% 40% 58% 53% 49% 63% 71% 54% 36% 42% 69% 85% 79% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 PFSI Purchase Mix Industry Purchase Mix

MSR & Servicing Advance Financing PFSI’S STRONG BALANCE SHEET AND DIVERSE CAPITAL STRUCTURES 23 Low Debt - to - Equity Ratio Diverse Financing Sources High TNW (2) /Assets • Tangible net worth (TNW) / assets excluding loans eligible for repurchase has de creased driven by an increase in balances of loans held for sale at fair value • Targeted debt - to - equity ratio near or below 3.5x with fluctuations largely driven by the origination environment or other market opportunities • Low non - funding debt - to - equity ratio • Unsecured senior notes provide low, fixed interest rates; first maturity in October 2025 • Issued 5 - year $425 million term notes secured by Ginnie Mae MSR and servicing advances • Redeemed $425 million of GNMA MSR term notes due August 2025 • Secured revolving bank financing lines provide flexibility to finance fluctuating MSR and advance balances Note: All figures are as of March 31, 2024 (1) Non - funding debt includes face value of unsecured senior notes and notes payable secured by MSR, in addition to the amount draw n on the variable funding note (2) Tangible net worth excludes capitalized software $650mm | 2025 $500mm | 2027 $800mm drawn $650mm | 2029 $680mm | 2028 Financing capacity across multiple banks $750mm | 2029 $125mm | 2028 $500mm | 2031 $425mm | 2029 $2,550mm $1,730mm $3,300mm Unsecured Senior Notes Secured Term Notes and Loans Secured Revolving Bank Financing Lines (1) 10% 18% 20% 18% 17% 19% 21% 27% 24% 22% 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 Tangible Net Worth / Assets ex. Loans eligible for repurchase Tangible Net Worth / Assets 0.6x 0.9x 1.1x 1.3x 1.4x 3.6x 3.2x 2.0x 2.4x 2.9x 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 Non-funding debt-to-equity Total debt-to-equity

Average 30 - year fixed rate mortgage (1) 3.88% CURRENT MARKET ENVIRONMENT AND MACROECONOMIC TRENDS 24 Macroeconomic Metrics (3) Footnotes (1) Freddie Mac Primary Mortgage Market Survey . 7.10% as of 4/18/24 (2) U.S. Department of the Treasury. 4.63% as of 4/18/24 (3) 10 - year Treasury bond yield and 2/10 year Treasury yield spread: Bloomberg Average 30 - year fixed rate mortgage: Freddie Mac Primary Mortgage Market Survey Average secondary mortgage rate: 30 - Year FNCL Par Coupon Index (MTGEFNCL), Bloomberg U.S. home price appreciation: S&P CoreLogic Case - Shiller U.S. National Home Price NSA Index (SPCSUSA); data is as of 1/31/24 Historical residential mortgage originations are for the quarterly period ended; source: Inside Mortgage Finance First Quarter 2024 residential mortgage originations are an estimate 10 - year Treasury Bond Yield (2) 4.20% 6.79% 6.61% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 10-year Treasury bond yield 3.5% 3.8% 4.6% 3.9% 4.2% 2/10 year Treasury yield spread -0.6% -1.1% -0.5% -0.4% -0.4% 30-year fixed rate mortgage 6.3% 6.7% 7.3% 6.6% 6.8% Secondary mortgage rate 5.0% 5.6% 6.4% 5.3% 5.6% U.S. home price appreciation (Y/Y % change) 0.8% 0.0% 4.0% 5.6% 6.0% Residential mortgage originations (in billions) $310 $420 $405 $315 $310

25 MSR ASSET VALUATION (1) Excludes loans held for sale at fair value Mortgage Servicing Rights Pool UPB (1) $381,471 Weighted average coupon 4.2% Weighted average servicing fee/spread 0.38% Weighted average prepayment speed assumption (CPR) 7.9% Fair value $7,483 As a multiple of servicing fee 5.11 March 31, 2024 Unaudited ($ in millions)

• Overall mortgage delinquency rates decreased from the prior quarter • Servicing advances outstanding for PFSI’s MSR portfolio decreased to approximately $392 million at March 31, 2024 from $505 million at December 31, 2023 – No principal and interest advances are outstanding DELINQUENCY TRENDS AND SERVICING ADVANCES OUTSTANDING 26 Historical Trends in Delinquency and Foreclosure Rates (1) (1) Owned MSR portfolio and includes loans held for sale at fair value; delinquency and foreclosure rates based on UPB; as of 3/3 1/2 4, the UPB of mortgage servicing rights owned and loans held for sale at fair value totaled $387 billion 6.7% 15.4% 14.0% 12.0% 9.5% 8.0% 7.2% 5.8% 5.0% 5.0% 5.5% 6.1% 5.4% 5.6% 5.7% 5.9% 5.1% 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 30-60 Days 60-90 Days 90+ Days In Foreclosure

27 PFSI’S OWNED MSR PORTFOLIO CHARACTERISTICS Note: Figures may not sum due to rounding (1) Government loans include loans securitized in Ginnie Mae pools as well as loans sold to private investors (2) Other represents MSRs collateralized by conventional loans sold to private investors (3) Loan - to - values for closed - end seconds include only the second lien balance (4) Excludes loans held for sale at fair value As of March 31, 2024 Segment UPB ($ in billions) (4) % of Total UPB Loan count (in thousands) Note rate Seasoning (months) Remaining maturity (months) Loan size ($ in thousands) FICO credit score at origination Original LTV Current LTV 60+ Delinquency (by UPB) Government (1) FHA $135.4 35.5% 667 4.2% 45 318 $203 677 93% 68% 4.4% VA $123.7 32.4% 453 3.7% 34 324 $273 728 90% 71% 1.9% USDA $20.9 5.5% 141 3.8% 53 310 $148 699 98% 66% 4.5% GSE FNMA $44.6 11.7% 147 4.6% 25 316 $303 761 73% 62% 0.4% FHLMC $53.0 13.9% 170 4.9% 19 323 $311 757 74% 65% 0.5% Other and Closed-End Seconds Other (2) $3.3 0.9% 9 6.5% 10 348 $348 768 73% 69% 0.1% Closed-End Seconds (3) $0.6 0.2% 8 10.2% 7 250 $76 744 17% 17% 0.1% Grand Total $381.5 100.0% 1,596 4.2% 36 320 $239 717 87% 68% 2.6%

ACQUISITIONS AND ORIGINATIONS BY PRODUCT 28 Note: Figures may not sum due to rounding Unaudited ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Correspondent Acquisitions Conventional Conforming - for PMT 6,629$ 3,029$ 2,759$ 2,477$ 1,769$ Conventional Conforming - for PFSI 4,063 7,018 9,933 10,129 8,190 Government - for PFSI 9,461 11,139 8,848 11,011 8,167 Jumbo - for PMT - - 1 3 3 Total 20,153$ 21,186$ 21,541$ 23,620$ 18,128$ Broker Direct Originations - for PFSI Conventional Conforming 1,097$ 1,436$ 1,591$ 1,560$ 1,524$ Government 441 685 621 623 619 Jumbo 28 19 10 18 42 Closed-end second liens - - - - 9 Total 1,565$ 2,140$ 2,223$ 2,201$ 2,193$ Consumer Direct Originations - for PFSI Conventional Conforming 365$ 400$ 378$ 264$ 265$ Government 611 1,028 741 372 931 Jumbo - 4 3 2 - Closed-end second liens 81 122 199 226 204 Total 1,057$ 1,553$ 1,322$ 864$ 1,400$ Total acquisitions/originations 22,775$ 24,879$ 25,085$ 26,685$ 21,721$ UPB of loans fulfilled for PMT (included in correspondent acquisitions) 6,629$ 3,029$ 2,760$ 2,480$ 1,772$

INTEREST RATE LOCKS BY PRODUCT 29 Note: Figures may not sum due to rounding Unaudited ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Correspondent Locks Conventional Conforming - for PMT 7,588$ 3,322$ 3,493$ 2,737$ 2,472$ Conventional Conforming - for PFSI 3,781 7,523 10,333 9,977 8,614 Government - for PFSI 10,341 10,735 10,063 11,197 8,467 Jumbo - for PMT - - 2 5 10 Total 21,709$ 21,581$ 23,891$ 23,916$ 19,563$ Broker Direct Locks - for PFSI Conventional Conforming 1,716$ 1,869$ 2,146$ 1,910$ 2,234$ Government 777 921 828 844 989 Jumbo 59 32 15 30 116 Closed-end second liens - - - 3 14 Total 2,552$ 2,822$ 2,989$ 2,787$ 3,352$ Consumer Direct Locks - for PFSI Conventional Conforming 628$ 575$ 559$ 371$ 474$ Government 1,410 1,383 817 887 1,338 Jumbo 9 2 5 3 12 Closed-end second liens 152 205 326 335 328 Total 2,199$ 2,166$ 1,707$ 1,597$ 2,152$ Total locks 26,459$ 26,568$ 28,586$ 28,300$ 25,068$

1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Government-insured 709 715 712 714 719 Government-insured 45 45 45 46 44 Conventional 757 762 762 762 765 Conventional 39 38 38 39 38 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Government-insured 701 712 711 715 723 Government-insured 46 45 46 47 46 Conventional 757 761 761 763 762 Conventional 38 38 39 39 39 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Government-insured 663 661 683 674 688 Government-insured 44 44 45 45 45 Conventional 734 744 743 747 746 Conventional 38 37 38 38 38 Weighted Average FICO Weighted Average DTI Weighted Average FICO Weighted Average DTI Weighted Average FICO Weighted Average DTI CREDIT CHARACTERISTICS BY ACQUISITION/ORIGINATION PERIOD 30 Correspondent Broker Direct Consumer Direct

ADJUSTED EBITDA RECONCILED TO NET INCOME 31 Note: Figures may not sum due to rounding ($ in millions) 1Q23 4Q23 1Q24 Net income (loss) 30.4$ (36.8)$ 39.3$ Provision for (benefit from) income taxes 7.8 (17.4) 4.6 Income (loss) before provision for (benefit from) income taxes 38.1 (54.2) 43.9 Depreciation and amortization 12.7 14.1 14.2 Decrease (increase) in fair value of MSRs and MSLs due to changed in valuation inputs used in the valuation model 90.3 370.7 (170.0) Hedging (gains) losses associated with MSRs (47.2) (294.8) 294.6 Stock-based compensation 11.7 6.7 4.6 Non-recurring item - accrual for arbitration result - 158.4 1.6 Interest expense on corporate debt and capital lease 23.4 27.3 38.8 Adjusted EBITDA 129.0$ 228.2$ 227.7$

RECONCILATION OF NON - GAAP ITEMS 32 Note: Figures may not sum due to rounding (1) Assumes a tax rate of 26.85% ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Net income (loss) $ 30.4 $ 58.3 $ 92.9 $ (36.8) $ 39.3 Decrease (increase) in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model 90.3 (118.9) (398.9) 370.7 (170.0) Hedging (gains) losses associated with MSRs (47.2) 155.1 423.7 (294.8) 294.6 Non-recurring item - accrual for arbitration result - - - 158.4 1.6 Adjustments $ 43.0 $ 36.2 $ 24.8 $ 234.3 $ 126.3 Tax impacts of adjustments (1) 11.6 9.7 6.7 62.9 33.9 Operating net income $ 61.9 $ 84.8 $ 111.0 $ 134.5 $ 131.7 Average stockholder's equity $ 3,463.5 $ 3,440.9 $ 3,517.5 $ 3,555.4 $ 3,552.3 Annualized operating return on equity 7% 10% 13% 15% 15% ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Servicing pretax income (loss) $ 57.4 $ 46.5 $ 101.2 $ (95.5) $ 4.9 Decrease (increase) in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model 90.3 (118.9) (398.9) 370.7 (170.0) Hedging (gains) losses associated with MSRs (47.2) 155.1 423.7 (294.8) 294.6 Non-recurring item - accrual for arbitration result - - - 158.4 1.6 Provision for credit losses on active loans (6.1) (7.5) (6.0) 5.7 (6.6) Servicing net of valuation related changes and arbitration accrual $ 94.4 $ 75.3 $ 120.0 $ 144.4 $ 124.7

XML

Cover	Apr. 24, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 24, 2024
Entity File Number	001-38727
Entity Registrant Name	PennyMac Financial Services, Inc.
Entity Central Index Key	0001745916
Entity Tax Identification Number	83-1098934
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3043 Townsgate Road
Entity Address, City or Town	Westlake Village
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91361
City Area Code	818
Local Phone Number	224-7442
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	PFSI
Security Exchange Name	NYSE
Entity Emerging Growth Company	false