Exhibit 99.1

PennyMac Financial Services, Inc. Reports

Third Quarter 2023 Results

WESTLAKE VILLAGE, Calif. – October 26, 2023 – PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $92.9 million for the third quarter of 2023, or $1.77 per share on a diluted basis, on revenue of $400.3 million. Book value per share increased to $71.56 from $69.77 at June 30, 2023.

PFSI’s Board of Directors declared a third quarter cash dividend of $0.20 per share, payable on November 22, 2023, to common stockholders of record as of November 13, 2023.

Third Quarter 2023 Highlights

Notable activity after quarter end

"PennyMac Financial produced outstanding results in the third quarter, returning to a double-digit annualized return on equity," said Chairman and CEO David Spector. "While average mortgage rates were up 50 basis points from the prior quarter, we demonstrated the earnings power of our balanced business model with exceptionally strong operating income from our large and growing servicing business combined with continued profitability in production. As a result, book value per share grew 3 percent from the prior quarter."

Mr. Spector continued, “PennyMac Financial’s strong financial and operational performance allowed us to continue gaining market share in recent periods, driven by continued superior execution in our correspondent channel and growth in broker-direct lending. Our strength in production has allowed us to meaningfully and organically grow our servicing portfolio, which is now approaching $600 billion in unpaid principal balance. In this environment, with interest rates expected to stay higher for longer, our servicing portfolio provides strong profitability with the operational efficiency and scale we have achieved. Our results this quarter highlight our management team’s ability to successfully navigate this challenging mortgage landscape while also positioning PennyMac Financial to generate increasingly stronger returns over time.”

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

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 $25.1 billion in UPB, $22.3 billion of which was for its own account and $2.8 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $25.1 billion in UPB, up 8 percent from the prior quarter and 39 percent from the third quarter of 2022.

Production segment pretax income was $25.2 million, compared to $24.4 million in the prior quarter and $38.6 million in the third quarter of 2022. Production segment revenue totaled $174.4 million, up 2 percent from the prior quarter and down 13 percent from the third quarter of 2022.

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

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 $5.5 million in the third quarter, up 2 percent from the prior quarter and down 70 percent from the third quarter of 2022. The year-over-year decrease in fulfillment fee revenue was driven by lower conventional acquisition volumes 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 totaled $2.5 million, compared to net interest expense of $0.6 million in the prior quarter. Interest income in the third quarter totaled $62.2 million, down from $75.4 million in the prior quarter, and interest expense totaled $59.6 million, down from $76.0 million in the prior quarter, both primarily due to lower average financing balances for loans held for sale at fair value.

Production segment expenses were $149.2 million, up 2 percent from the prior quarter and down 7 percent from the third quarter of 2022. The increase from the prior quarter was due to higher overall loan volumes while the decrease from the third quarter of 2022 was driven primarily by lower volumes in the direct lending channels and expense management activities in 2022.

Servicing Segment

The Servicing segment includes income from owned MSRs, subservicing and special servicing activities. The total servicing portfolio grew to $589.4 billion in UPB at September 30, 2023, an increase of 2 percent from June 30, 2023, and 9 percent from September 30, 2022. PennyMac Financial subservices and conducts special servicing for PMT, whose servicing portfolio totaled $232.9 billion in UPB at quarter end, down 1 percent from June 30, 2023, and up 1 percent from September 30, 2022. PennyMac Financial’s owned MSR portfolio grew to $356.5 billion in UPB, up 4 percent from June 30, 2023, and 16 percent from September 30, 2022.

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

Servicing segment pretax income was $101.2 million, compared to $46.5 million in the prior quarter and $145.3 million in the third quarter of 2022. Servicing segment net revenues totaled $217.1 million, up from $156.4 million in the prior quarter and down from $266.5 million in the third quarter of 2022. The quarter-over-quarter increase was driven by higher net loan servicing fees, net interest income and net gains on loans held for sale at fair value related to EBO activity.

Revenue from net loan servicing fees totaled $185.4 million, up from $146.1 million in the prior quarter. Loan servicing fees were $387.9 million, up from $356.5 million in the prior quarter primarily due to growth in PFSI’s owned portfolio, reduced by $177.8 million in realization of MSR cash flows, which was up slightly from the prior quarter due to larger average MSR fair values. Net valuation related declines totaled $24.8 million, compared to $36.2 million of such declines in the prior quarter. MSR fair value gains, before realization of cash flows, were $398.9 million in the quarter, and hedging losses were $423.7 million, both primarily due to higher market interest rates.

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

Servicing segment revenue included $23.6 million in net gains on loans held for sale related to EBOs, up from $15.2 million in the prior quarter and down from $28.0 million in the third quarter of 2022. These EBOs are previously delinquent loans that were brought back to performing status through PennyMac Financial’s successful servicing efforts.

Net interest income totaled $7.2 million, versus net interest expense of $5.1 million in the prior quarter and net interest expense of $5.8 million in the third quarter of 2022. Interest income was $104.4 million, up from $97.5 million in the prior quarter driven primarily by increased placement fees on custodial balances due to higher short-term interest rates. Interest expense was $97.2 million, down from $102.6 million in the prior quarter due to lower average balances of secured debt outstanding.

Servicing segment expenses totaled $115.9 million, up 5 percent from the prior quarter primarily due to performance-based compensation accruals and down 4 percent from the third quarter of 2022 due to expense management activities and lower provisions for losses on servicing advances.

Investment Management Segment

PennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation. Net AUM were $1.9 billion as of September 30, 2023, up 1 percent from June 30, 2023, and down 3 percent from September 30, 2022.

Pretax income for the Investment Management segment was $0.4 million, down from $2.0 million in the prior quarter and $1.6 million in the third quarter of 2022. Base management fees from PMT were $7.2 million, up 1 percent from the prior quarter and down 7 percent from the third quarter of 2022 due to the decline in AUM. No performance incentive fees were earned in the third quarter.

The following table presents a breakdown of management fees:

Investment Management segment expenses totaled $8.4 million, up 11 percent from the prior quarter and down 4 percent from the third quarter of 2022.

Consolidated Expenses

Total expenses were $273.5 million, up 4 percent from the prior quarter and down 6 percent from the third quarter of 2022. The increase from the prior quarter was primarily due to higher production and servicing expenses as mentioned above, and the decrease from the prior year was primarily due to lower direct lending volumes and expense management activities in 2022.

Taxes

PFSI recorded a provision for tax expense of $33.9 million, resulting in an effective tax rate of 26.8 percent during the quarter.

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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 Thursday, October 26, 2023. 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.

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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 4,000 people across the country. For the twelve months ended September 30, 2023, PennyMac Financial’s production of newly originated loans totaled $96 billion in unpaid principal balance, making it the second largest mortgage lender in the nation. As of September 30, 2023, PennyMac Financial serviced loans totaling $589 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.

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 and our success in winning bids; 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 adverse weather conditions, man-made or natural disasters, 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.

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)