PennyMac Financial Services : 2020 Barclays Global Financial Services Conference Presentation

Barclays Global Financial Services

Conference

September 15, 2020

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management's beliefs, estimates, projections and assumptions with respect to, among other things, the Company's financial 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. These forward-looking statements include, but are not limited to, statements regarding the future impact of COVID-19 on our business and financial operations, future loan delinquencies and forbearances, projected servicing portfolio trends and EBO activities, expected earnings and financial results, and other business and financial expectations.

Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: our exposure to risks of loss and disruptions in operations resulting from adverse weather conditions, man-made or natural disasters, climate change and pandemics such as COVID-19; 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 businesses; 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 the Company's businesses, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; certain banking regulations that may limit our business activities; changes in macroeconomic and U.S. real estate market conditions; difficulties inherent in growing loan production volume; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights and our success in winning bids; changes in prevailing interest rates; expected discontinuation of LIBOR; increases in loan delinquencies and defaults; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant source of financing for, and revenue related to, our mortgage banking business; any required additional capital and liquidity to support business growth that may not be available on acceptable terms, if at all; 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; decreases in the returns on the assets that we select and manage for our clients, and our resulting management and incentive fees; the extensive amount of regulation applicable to our investment management segment; 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 recent growth; our ability to effectively identify, manage, monitor and mitigate financial risks; our initiation of new business activities or expansion of existing business activities; our ability to detect misconduct and fraud; and 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 presentation are current as of the date of this presentation only.

2

PFSI Is a Leading Nonbank Residential Mortgage Specialist

• 13th year of operations; initial public offering in May 2013
  Leading Market Position in the U.S.

	3rd largest mortgage producer(1)		Largest government-insured producer(1)
	8th largest mortgage servicer(1)		Largest correspondent producer(1)

Unique Capabilities

• Comprehensive and scalable mortgage platform with considerable opportunities for growth
• Significant technology investments drive competitive advantage and scale
• Well-developedand sophisticated risk management structure
• Unique, synergistic partnership with PennyMac Mortgage Investment Trust (NYSE: PMT), a tax-efficient investment vehicle

Loan Production Volume	Loan Servicing Portfolio	Net Assets Under Management
(UPB in billions)	(UPB in billions)	(in billions)
$150.3	$388.3	$2.2
		$1.2

$31.7

$44.4

2013

LTM

6/30/2013

6/30/2020

6/30/2013

6/30/2020

1. • 6/30/2020
2. Source: Inside Mortgage Finance, for the last twelve months ended June 30, 2020 or as of June 30, 2020

3

PFSI Represents an Attractive Investment Opportunity

• Track record of strong profitability; profitable every year since 2008(1)
• Increased liquidity and public float since corporate reorganization in 2018(2)
• Quarterly dividend introduced in 2019 represents an important component in the structure of providing long-term, sustainable stockholder returns

Earnings Per Share (EPS) for PFSI(3)

			Record annual
			earnings in 2019;		$8.11
			record earnings in
			1H20
			$4.03		$4.89
	$2.17	$2.94		$2.59
$1.73
2014	2015	2016	2017	2018	2019	1H20

	Annualized Total Return to Stockholders(4)	Daily Average Trading Volume(5)
+80%					(in thousands of shares)
			Corporate		867
					Reorganization(2)
		+47%
			+26%			324
					148
	1-Year	3-Years	5-Years	4/30/18 - 10/31/18	11/1/18 - 12/31/19	1/1/20 - 8/31/20

1. Private National Mortgage Acceptance Company, LLC commenced operations in 2008 and is a wholly-owned subsidiary of PFSI, which

completed its initial public offering in May 2013. (2) PFSI completed a reorganization on November 1, 2018 that simplified its corporate structure
by converting all equity ownership into a single class of publicly traded common stock	(3) EPS in 2017 and 2018 included $1.79 and $0.11,	4
respectively, of tax related benefits	(4) Source: Bloomberg. Total return with dividends reinvested as of 8/31/20. (5) S&P Global Market

Intelligence