Rithm Capital Corp. (NYSE:RITM) Q2 2022 Results Conference Call August 2, 2022 8:00 AM ET

Company Participants

Michael Nierenberg - Chairman, CEO & President

Nicola Santoro - CFO

Baron Silverstein - President, NewRez

Conference Call Participants

Doug Harter - Credit Suisse

Bose George - KBW

Eric Hagen - BTIG

Giuliano Bologna - Compass Point

Trevor Cranston - JMP Securities

Operator

Good morning, and welcome to the Rithm Capital Second Quarter 2022 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Phil Simon. Please go ahead.

Unidentified Company Representative

Thank you, and good morning, everyone. I would like to thank you for joining us today for Rithm Capital's Second Quarter 2022 Earnings Call. Joining me today are Michael Nierenberg, Chairman, CEO and President of Rithm Capital; Nick Santoro, Chief Financial Officer of Rithm Capital; and Baron Silverstein, President of NewRez.

Throughout the call, we are going to reference the earnings supplement that was posted to the Rithm Capital website this morning. If you've not already done so, I'd encourage you to download the presentation now. I would like to point out that certain statements today will be forward-looking statements. These statements, by their nature, are uncertain and may differ materially from actual results.

I encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and review the risk factors contained in our annual and quarterly reports filed with the SEC. In addition, we will be discussing some non-GAAP financial measures during today's call. Reconciliations of these measures to the most directly comparable GAAP measures can be found in our earnings supplement.

And with that, I will turn the call over to Mike.

Michael Nierenberg

Thanks, Phil. Good morning, everyone, and thanks for joining us. The second quarter was a period of extreme volatility. I'm very proud of our team as we navigated some of the most difficult markets we've seen in many years. We saw interest rates rise dramatically, credit spreads widen and liquidity in the market has become challenged. We positioned our company for higher rates in our portfolios rose in value. As a result, book value increased to 12.98 from 12.56 before the internalization payment of Fortress.

Our company, formerly known as New Residential, rebranded to Rithm Capital and internalized its management contract. The result of that transaction will add approximately $0.12 to $0.15 in core earnings as we create synergies not only within the investment manager, but also in our operating business lines. In addition to our synergies, we've been very focused on our expense reduction and happy to announce that our expenses in our mortgage company have been reduced by half.