Mr. Cooper Group Inc. (NASDAQ:COOP) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET
Company Participants
Ken Posner – Senior Vice President-Strategic Planning and Investor Relations
Jay Bray – Chairman and Chief Executive Officer
Chris Marshall – Vice Chairman and President
Jaime Gow – Executive Vice President and Chief Financial Officer
Conference Call Participants
Kevin Barker – Piper Sandler
Bose George – KBW
Mark DeVries – Barclays
Eric Hagen – BTIG
Doug Harter – Credit Suisse
Giuliano Bologna – Compass Point
Operator
Good day and thank you for standing by. Welcome to the Mr. Cooper Group Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Ken Posner. Please go ahead.
Ken Posner
Good morning and welcome to Mr. Cooper Group’s third 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 Jaime Gow, 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. I'm going to start with the highlights as we always do, but then we'll pull up and talk about the recent interest rate shock and more broadly, the macro backdrop where a number of indicators are now signaling higher risk. And then discuss how we are positioning Mr. Cooper for an environment of heightened uncertainty.
So with that preface, let's go through the highlights on Slide 3. In summary, we had a very solid quarter with positive earnings and cash flow and strong capital generation, while continuing to grow our customer base. Net income was $113 million, which was a function of both operating earnings and a positive MSR mark. As a result, tangible book value per share rose to $56.35, which is up 36% year-over-year and our capital ratio increased to a new record high of 31.3%.