Mr. Cooper Group Inc. (NASDAQ:COOP) Q2 2023 Earnings Conference Call July 26, 2023 10:00 AM ET
Company Participants
Ken Posner - Senior Vice President of Strategic Planning and Investor Relations
Jay Bray - Chairman and Chief Executive Officer
Christopher Marshall - Vice Chairman and President
Kurt Johnson - Executive Vice President and Chief Financial Officer
Conference Call Participants
Kevin Barker - Piper Sandler
Kyle Joseph - Jefferies
Eric Hagen - BTIG
Douglas Harter - Credit Suisse
Bose George - KBW
Giuliano Bologna - Compass Point
Ken Posner
Good morning and welcome to Mr. Cooper Group Second Quarter Earnings Call. My name is Ken Posner and I’m SVP of Strategic Planning and Investor Relations. With me today are Jay Bray, Chairman and CEO; Chris Marshall, Vice Chairman and President; and Kurt Johnson, Executive Vice President and CFO.
As a quick reminder, this call is being recorded. Also, you can find the slides on our Investor Relations webpage at investors.mrcoopergroup.com. During the call, we may refer to non-GAAP measures which are reconciled to GAAP results in the appendix to the slide deck. Also, we may make forward-looking statements, which you should understand could be affected by risk factors that we've identified in our 10-K and other SEC filings. We are not undertaking any commitment to update these statements if conditions change.
I'll now turn the call over to Jay.
Jay Bray
Thanks Ken, and good morning everyone, and welcome to our call. Let's turn to slide 3 and review the second quarter highlights. Starting with financial performance, I was extremely pleased with a 300 basis point gain in operating ROTCE, which hit 11.7%, and the growth in tangible book value per share, which increased to $58.81. At the same time, the capital and liquidity remain at near-record levels.
Turning to operations, the servicing team produced excellent results with $182 million in pre-tax income. The portfolio reached $882 billion at quarter end, but if you include pending acquisitions, such as HomePoint, we're over $950 billion, which is nearly on top of our $1 trillion target. Late last year, we told you to expect a surge in bulk MSR sales with cycle-wide yields, and that is now playing out as we foresaw it.
Also contributing to portfolio growth, we completed the acquisition of Rushmore Servicing, which now makes us one of the largest special servicers. I'd like to offer a hearty welcome to the 300 new team members who joined the Cooper family. We value the world-class skills you bring to our platform and the trusted relationships you've built with important institutional investors.