Ocwen Financial Corporation (NYSE:OCN) Q1 2024 Earnings Conference Call May 2, 2024 8:30 AM ET
Company Participants
Dico Akseraylian - SVP, Corporate Communications
Glen Messina - Chair and CEO
Sean O'Neil - CFO
Conference Call Participants
Bose George - KBW
Matthew Howlett - B. Riley
Eric Hagen - BTIG
Dico Akseraylian
Good morning, and thank you for joining us for Ocwen's First Quarter 2024 Earnings Call. Please note that our earnings release and slide presentation are available on our website. Speaking on the call will be Ocwen's Chair and Chief Executive Officer, Glen Messina and Chief Financial Officer, Sean O'Neil. As a reminder, the presentation and our comments today may contain forward-looking statements made pursuant to the Safe Harbor provisions of the Federal Securities Laws.
These statements may be identified by reference to a future period or use of forward-looking terminology and address matters that are uncertain. You should bear this uncertainty in mind and should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made and involve assumptions, risks, and uncertainties, including those described in our SEC filings.
In the past, actual results have differed materially from those suggested by forward-looking statements, and this may happen again. In addition, the presentation or comments contain references to non-GAAP financial measures, such as adjusted pretax income. We believe these Non-GAAP financial measures provide a useful supplement to discussions and analysis of our financial condition, because they are measures that management uses to assess the performance of our operations and allocate resources.
Non-GAAP financial measures should be viewed in addition to and not as an alternative for the company's reported GAAP results. A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures and management's view on why these measures may be useful to investors may be found in the press release and the Appendix to the investor presentation.
Now I will turn the call over to Glen Messina.
Glen Messina
Thanks, Dico. Good morning, everyone, and thanks for joining our call. Today we'll share our results for the first quarter and take you through our progress in executing our strategy and financial objectives to deliver long-term value for our shareholders. Please turn to Slide 3. We're excited about the progress we made in the first quarter and pleased to report improved performance on many of our key financial metrics.
We reported adjusted pre-tax income of $14 million, which results in an annualized adjusted return on equity of 13.8%. Both metrics have improved on a sequential quarter and year-over-year basis. We reported GAAP net income of $30 million or diluted earnings per share of $3.74, the highest level in six quarters. Our results were driven by improved performance in servicing and originations, as well as favorable MSR Fair Value Change Net of Hedge.