Mr. Cooper Group Reports Third Quarter 2024 Results
Mr. Cooper Group (NASDAQ: COOP) reported third quarter net income of $80 million, with pretax operating income of $246 million. The company achieved an operating ROTCE of 16.8% and grew its servicing portfolio by 32% year-over-year to $1,239 billion. Originations segment funded volume increased 80% quarter-over-quarter to $6.8 billion. The company repurchased 0.5 million shares for $46 million and issued $750 million senior notes at 6.5%. The servicing portfolio maintained strong performance with a 1.5% delinquency rate, while the company's book value per share increased to $72.49.
Mr. Cooper Group (NASDAQ: COOP) ha riportato un reddito netto di terzo trimestre pari a 80 milioni di dollari, con un reddito operativo ante imposte di 246 milioni di dollari. La società ha raggiunto un ROTCE operativo del 16,8% e ha aumentato il suo portafoglio di servicing del 32% su base annua, arrivando a 1.239 miliardi di dollari. Il volume di finanziamenti del segmento origination è aumentato dell'80% rispetto al trimestre precedente, toccando 6,8 miliardi di dollari. L'azienda ha riacquistato 0,5 milioni di azioni per 46 milioni di dollari ed emesso note senior per 750 milioni di dollari con un tasso del 6,5%. Il portafoglio di servicing ha mantenuto una forte performance con un tasso di insolvenza dell'1,5%, mentre il valore contabile per azione della società è aumentato a 72,49 dollari.
Mr. Cooper Group (NASDAQ: COOP) reportó un ingreso neto del tercer trimestre de 80 millones de dólares, con un ingreso operativo antes de impuestos de 246 millones de dólares. La compañía consiguió un ROTCE operativo del 16,8% y creció su portafolio de servicios un 32% interanual, alcanzando 1,239 mil millones de dólares. El volumen financiado del segmento de originaciones aumentó un 80% trimestre a trimestre, llegando a 6.8 mil millones de dólares. La empresa recompró 0.5 millones de acciones por 46 millones de dólares y emitió notas senior por 750 millones de dólares a un 6.5%. El portafolio de servicios mantuvo un rendimiento fuerte con una tasa de morosidad del 1.5%, mientras que el valor contable por acción de la compañía aumentó a 72.49 dólares.
Mr. Cooper Group (NASDAQ: COOP)는 3분기 순이익이 8천만 달러인 것으로 보고했으며, 세전 운영 수익은 2억 4천6백만 달러입니다. 이 회사는 16.8%의 운영 ROTCE를 달성했으며, 서비스 포트폴리오를 전년 대비 32% 성장시켜 1,239억 달러에 도달했습니다. 기원 세그먼트의 자금 조달량은 전분기 대비 80% 증가해 68억 달러에 이르렀습니다. 이 회사는 46백만 달러에 50만 주를 재매입했으며, 6.5%의 이자를 가진 7억 5천만 달러의 선순위 노트를 발행했습니다. 서비스 포트폴리오는 1.5%의 체납률로 강력한 성과를 유지했으며, 회사의 주당 장부가치는 72.49달러로 증가했습니다.
Mr. Cooper Group (NASDAQ: COOP) a rapporté un revenu net pour le troisième trimestre de 80 millions de dollars, avec un revenu d'exploitation avant impôts de 246 millions de dollars. La société a réalisé un ROTCE opérationnel de 16,8% et a augmenté son portefeuille de services de 32% d'une année sur l'autre, atteignant 1,239 milliards de dollars. Le volume des financements du segment des origination a augmenté de 80% par rapport au trimestre précédent, atteignant 6,8 milliards de dollars. L'entreprise a racheté 0,5 million d'actions pour 46 millions de dollars et a émis des obligations senior de 750 millions de dollars à 6,5%. Le portefeuille de services a maintenu une performance solide avec un taux de retard de 1,5%, tandis que la valeur comptable par action de la société a augmenté à 72,49 dollars.
Mr. Cooper Group (NASDAQ: COOP) meldete im dritten Quartal einen Nettogewinn von 80 Millionen Dollar und ein operatives Ergebnis vor Steuern von 246 Millionen Dollar. Das Unternehmen erzielte eine betriebliche ROTCE von 16,8% und steigerte sein Servicing-Portfolio um 32% im Jahresvergleich auf 1,239 Milliarden Dollar. Das Finanzierungsvolumen im Segment Originierungen stieg im Vergleich zum Vorquartal um 80% auf 6,8 Milliarden Dollar. Das Unternehmen hat 0,5 Millionen Aktien für 46 Millionen Dollar zurückgekauft und Senior Notes in Höhe von 750 Millionen Dollar mit 6,5% ausgegeben. Das Servicing-Portfolio hielt eine starke Leistung mit einer Rückstandquote von 1,5%, während der Buchwert pro Aktie des Unternehmens auf 72,49 Dollar stieg.
- Servicing portfolio grew 32% year-over-year to $1,239 billion
- Originations funded volume increased 80% quarter-over-quarter to $6.8 billion
- Operating ROTCE of 16.8%
- Pretax operating income of $246 million
- Strong refinance recapture rate of 69%
- Other mark-to-market loss of $126 million
- Slight increase in 60+ day delinquency rate to 1.5% from 1.4% quarter-over-quarter
Insights
Mr. Cooper Group delivered a solid Q3 2024 with notable achievements. Net income reached
- Operating ROTCE of
16.8% demonstrates strong operational efficiency - Direct-to-consumer originations saw
80% quarter-over-quarter volume increase - Successfully issued
$750 million senior notes at6.5% - Maintained healthy delinquency rate of
1.5%
The upcoming Flagstar mortgage operations acquisition positions the company for further growth. Strong liquidity and portfolio expansion indicate positive momentum, though rising rates may impact refinancing volumes.
-
Reported net income of
including other mark-to-market of$80 million ( , equivalent to ROCE of$126) million 6.9% and operating ROTCE of16.8% -
Book value per share and tangible book value per share increased to
and$72.49 $69.93 -
Servicing portfolio grew
32% y/y to$1,239 billion -
Repurchased 0.5 million shares of common stock for
$46 million -
Issued
senior notes priced at$750 million 6.5% - Certified as Great Place to Work for the 6th year in a row
Chairman and CEO Jay Bray commented, “We delivered an exceptional quarter, marked by an operating ROTCE of
Mike Weinbach, President added, “I’m extremely pleased with our strong performance in servicing and exceptional execution in originations, where volumes increased
Servicing
The Servicing segment provides a best-in-class home loan experience for our 5.4 million customers while simultaneously strengthening asset performance for investors. In the third quarter, Servicing recorded pre-tax income of
|
Quarter Ended |
||||||||||||||
($ in millions) |
Q3'24 |
|
Q2'24 |
||||||||||||
|
$ |
|
BPS |
|
$ |
|
BPS |
||||||||
Operational revenue |
$ |
616 |
|
|
|
20.1 |
|
|
$ |
604 |
|
|
|
20.7 |
|
Amortization, net of accretion |
|
(235 |
) |
|
|
(7.6 |
) |
|
|
(217 |
) |
|
|
(7.4 |
) |
Mark-to-market |
|
(125 |
) |
|
|
(4.1 |
) |
|
|
69 |
|
|
|
2.3 |
|
Total revenues |
|
256 |
|
|
|
8.4 |
|
|
|
456 |
|
|
|
15.6 |
|
Total expenses |
|
(180 |
) |
|
|
(5.9 |
) |
|
|
(171 |
) |
|
|
(5.9 |
) |
Total other income, net |
|
101 |
|
|
|
3.3 |
|
|
|
69 |
|
|
|
2.4 |
|
Income before taxes |
|
177 |
|
|
|
5.8 |
|
|
|
354 |
|
|
|
12.1 |
|
Other mark-to-market |
|
126 |
|
|
|
4.1 |
|
|
|
(68 |
) |
|
|
(2.4 |
) |
Accounting items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Intangible amortization |
|
2 |
|
|
|
0.1 |
|
|
|
2 |
|
|
|
0.1 |
|
Pretax operating income excluding other mark-to-market and accounting items |
$ |
305 |
|
|
|
10.0 |
|
|
$ |
288 |
|
|
9.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Quarter Ended |
||||||||||||||
|
Q3'24 |
|
Q2'24 |
||||||||||||
MSRs UPB ($B) |
$ |
678 |
|
|
$ |
676 |
|
||||||||
Subservicing and Other UPB ($B) |
|
561 |
|
|
|
530 |
|
||||||||
Ending UPB ($B) |
$ |
1,239 |
|
|
$ |
1,206 |
|
||||||||
Average UPB ($B) |
$ |
1,225 |
|
|
$ |
1,171 |
|
||||||||
60+ day delinquency rate at period end |
|
1.5 |
% |
|
|
1.4 |
% |
||||||||
Annualized CPR |
|
7.1 |
% |
|
|
5.6 |
% |
||||||||
Modifications and workouts |
|
21,817 |
|
|
|
22,645 |
|
Originations
The Originations segment creates servicing assets at attractive margins by acquiring loans through the correspondent channel and refinancing existing loans through the direct-to-consumer channel. Originations earned pretax income and pretax operating income of
The Company funded 25,582 loans in the third quarter, totaling approximately
|
Quarter Ended |
||||
($ in millions) |
Q3'24 |
|
Q2'24 |
||
Income before taxes |
$ |
69 |
|
$ |
38 |
Accounting items |
|
— |
|
|
— |
Pretax operating income excluding accounting items and other |
$ |
69 |
|
$ |
38 |
|
Quarter Ended |
||||||
($ in millions) |
Q3'24 |
|
Q2'24 |
||||
Total pull through adjusted volume |
$ |
7,491 |
|
|
$ |
4,473 |
|
Funded volume |
$ |
6,825 |
|
|
$ |
3,794 |
|
Refinance recapture percentage |
|
69 |
% |
|
|
73 |
% |
Recapture percentage |
|
22 |
% |
|
|
22 |
% |
Purchase volume as a percentage of funded volume |
|
69 |
% |
|
|
62 |
% |
Conference Call Webcast and Investor Presentation
The Company will host a conference call on October 23, 2024 at 10:00 A.M. Eastern Time. Preregistration for the call is now available in the Investor section of www.mrcoopergroup.com. Participants will receive a toll-free dial-in number and a unique registrant ID to be used for immediate call access. A simultaneous audio webcast of the conference call will be available under the investors section on www.mrcoopergroup.com.
Non-GAAP Financial Measures
The Company utilizes non-GAAP financial measures as the measures provide additional information to assist investors in understanding and assessing the Company’s and our business segments’ ongoing performance and financial results, as well as assessing our prospects for future performance. The adjusted operating financial measures facilitate a meaningful analysis and allow more accurate comparisons of our ongoing business operations because they exclude items that may not be indicative of or are unrelated to the Company’s and our business segments’ core operating performance, and are better measures for assessing trends in our underlying businesses. These notable items are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operational and planning decisions and evaluating the Company’s and our business segment’s ongoing performance. Pretax operating income (loss) in the servicing segment eliminates the effects of mark-to-market adjustments which primarily reflects unrealized gains or losses based on the changes in fair value measurements of MSRs and their related financing liabilities for which a fair value accounting election was made. These adjustments, which can be highly volatile and material due to changes in credit markets, are not necessarily reflective of the gains and losses that will ultimately be realized by the Company. Pretax operating income (loss) in each segment also eliminates, as applicable, transition and integration costs, gains (losses) on sales of fixed assets, certain settlement costs that are not considered normal operational matters, intangible amortization, change in equity method investments, fair value change in equity investments and other adjustments based on the facts and circumstances that would provide investors a supplemental means for evaluating the Company’s core operating performance. Return on tangible common equity (ROTCE) is computed by dividing net income by average tangible common equity (also known as tangible book value). Tangible common equity equals total stockholders’ equity less goodwill and intangible assets. Management believes that ROTCE is a useful financial measure because it measures the performance of a business consistently and enables investors and others to assess the Company’s use of equity. Tangible book value is defined as stockholders’ equity less goodwill and intangible assets. Our management believes tangible book value is useful to investors because it provides a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets.
Forward Looking Statements
Any statements in this release that are not historical or current facts are forward looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Results for any specified quarter are not necessarily indicative of the results that may be expected for the full year or any future period. Certain of these risks and uncertainties are described in the “Risk Factors” section of Mr. Cooper Group’s most recent annual reports and other required documents as filed with the SEC which are available at the SEC’s website at http://www.sec.gov. Mr. Cooper undertakes no obligation to publicly update or revise any forward-looking statement or any other financial information contained herein, and the statements made in this press release are current as of the date of this release only.
Financial Tables
MR. COOPER GROUP INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (millions of dollars, except for earnings per share data) |
|||||||
|
|
|
|
||||
Three Months Ended September 30, 2024 |
|
Three Months Ended June 30, 2024 |
|||||
Revenues: |
|
|
|
||||
Service related, net |
$ |
288 |
|
|
$ |
485 |
|
Net gain on mortgage loans held for sale |
|
136 |
|
|
|
98 |
|
Total revenues |
|
424 |
|
|
|
583 |
|
Total expenses: |
|
335 |
|
|
|
300 |
|
Other (expense) income, net: |
|
|
|
||||
Interest income |
|
227 |
|
|
|
189 |
|
Interest expense |
|
(199 |
) |
|
|
(187 |
) |
Other expense, net |
|
(5 |
) |
|
|
(8 |
) |
Total other expense, net |
|
23 |
|
|
|
(6 |
) |
Income before income tax expense |
|
112 |
|
|
|
277 |
|
Income tax expense |
|
32 |
|
|
|
73 |
|
Net income |
$ |
80 |
|
|
$ |
204 |
|
|
|
|
|
||||
Earnings per share: |
|
|
|
||||
Basic |
$ |
1.24 |
|
|
$ |
3.16 |
|
Diluted |
$ |
1.22 |
|
|
$ |
3.10 |
|
Weighted average shares of common stock outstanding (in millions): |
|
|
|
||||
Basic |
|
64.3 |
|
|
|
64.6 |
|
Diluted |
|
65.5 |
|
|
|
65.8 |
|
MR. COOPER GROUP INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (millions of dollars) |
|||||
|
|
|
|
||
|
September 30, 2024 |
|
June 30, 2024 |
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
733 |
|
$ |
642 |
Restricted cash |
|
186 |
|
|
162 |
Mortgage servicing rights at fair value |
|
10,035 |
|
|
10,352 |
Advances and other receivables, net |
|
940 |
|
|
934 |
Mortgage loans held for sale at fair value |
|
1,962 |
|
|
1,539 |
Property and equipment, net |
|
58 |
|
|
57 |
Deferred tax assets, net |
|
315 |
|
|
351 |
Other assets |
|
1,957 |
|
|
1,746 |
Total assets |
$ |
16,186 |
|
$ |
15,783 |
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
||
Unsecured senior notes, net |
$ |
4,885 |
|
$ |
4,141 |
Advance, warehouse and MSR facilities, net |
|
4,379 |
|
|
4,925 |
Payables and other liabilities |
|
1,841 |
|
|
1,684 |
MSR related liabilities - nonrecourse at fair value |
|
443 |
|
|
439 |
Total liabilities |
|
11,548 |
|
|
11,189 |
Total stockholders' equity |
|
4,638 |
|
|
4,594 |
Total liabilities and stockholders' equity |
$ |
16,186 |
|
$ |
15,783 |
UNAUDITED SEGMENT STATEMENT OF OPERATIONS & EARNINGS RECONCILIATION (millions of dollars, except for earnings per share data) |
|||||||||||||||
|
|
||||||||||||||
|
Three Months Ended September 30, 2024 |
||||||||||||||
|
Servicing |
|
Originations |
|
Corporate/ Other |
|
Consolidated |
||||||||
|
|
|
|
|
|
|
|
||||||||
Service related, net |
$ |
246 |
|
|
$ |
24 |
|
|
$ |
18 |
|
|
$ |
288 |
|
Net gain on mortgage loans held for sale |
|
10 |
|
|
|
126 |
|
|
|
— |
|
|
|
136 |
|
Total revenues |
|
256 |
|
|
|
150 |
|
|
|
18 |
|
|
|
424 |
|
Total expenses |
|
180 |
|
|
|
83 |
|
|
|
72 |
|
|
|
335 |
|
Other income (expense), net: |
|
|
|
|
|
|
|
||||||||
Interest income |
|
201 |
|
|
|
25 |
|
|
|
1 |
|
|
|
227 |
|
Interest expense |
|
(100 |
) |
|
|
(23 |
) |
|
|
(76 |
) |
|
|
(199 |
) |
Other expense, net |
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(5 |
) |
Total other income (expense), net |
|
101 |
|
|
|
2 |
|
|
|
(80 |
) |
|
|
23 |
|
Pretax income (loss) |
$ |
177 |
|
|
$ |
69 |
|
|
$ |
(134 |
) |
|
$ |
112 |
|
Income tax expense |
|
|
|
|
|
|
32 |
|
|||||||
Net income |
|
|
|
|
$ |
80 |
|
||||||||
Earnings per share |
|
|
|
|
|
||||||||||
Basic |
|
|
|
|
$ |
1.24 |
|
||||||||
Diluted |
|
|
|
|
|
$ |
1.22 |
|
|||||||
|
|
|
|
|
|
|
|||||||||
Non-GAAP Reconciliation: |
|
|
|
|
|
||||||||||
Pretax income (loss) |
$ |
177 |
|
|
$ |
69 |
|
|
$ |
(134 |
) |
|
$ |
112 |
|
Other mark-to-market |
|
126 |
|
|
|
— |
|
|
|
— |
|
|
|
126 |
|
Accounting items / other |
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
6 |
|
Intangible amortization |
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Pretax operating income (loss) |
$ |
305 |
|
|
$ |
69 |
|
|
$ |
(128 |
) |
|
$ |
246 |
|
Income tax expense(1) |
|
|
|
|
|
|
(60 |
) |
|||||||
Operating income |
|
|
|
|
|
|
$ |
186 |
|
||||||
Operating ROTCE(2) |
|
|
|
|
16.8 |
% |
|||||||||
Average tangible book value (TBV)(3) |
|
|
|
|
$ |
4,451 |
|
(1) |
Assumes tax-rate of |
(2) |
Computed by dividing annualized earnings by average TBV. |
(3) |
Average of beginning TBV of |
UNAUDITED SEGMENT STATEMENT OF OPERATIONS & EARNINGS RECONCILIATION (millions of dollars, except for earnings per share data) |
|||||||||||||||
|
|
||||||||||||||
|
Three Months Ended June 30, 2024 |
||||||||||||||
|
Servicing |
|
Originations |
|
Corporate/ Other |
|
Consolidated |
||||||||
|
|
|
|
|
|
|
|
||||||||
Service related, net |
$ |
446 |
|
|
$ |
19 |
|
|
$ |
20 |
|
|
$ |
485 |
|
Net gain on mortgage loans held for sale |
|
10 |
|
|
|
88 |
|
|
|
— |
|
|
|
98 |
|
Total revenues |
|
456 |
|
|
|
107 |
|
|
|
20 |
|
|
|
583 |
|
Total expenses |
|
171 |
|
|
|
69 |
|
|
|
60 |
|
|
|
300 |
|
Other income (expense), net: |
|
|
|
|
|
|
|
||||||||
Interest income |
|
174 |
|
|
|
15 |
|
|
|
— |
|
|
|
189 |
|
Interest expense |
|
(105 |
) |
|
|
(15 |
) |
|
|
(67 |
) |
|
|
(187 |
) |
Other expense, net |
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(8 |
) |
Total other income (expense), net |
|
69 |
|
|
|
— |
|
|
|
(75 |
) |
|
|
(6 |
) |
Pretax income (loss) |
$ |
354 |
|
|
$ |
38 |
|
|
$ |
(115 |
) |
|
$ |
277 |
|
Income tax expense |
|
|
|
|
|
|
|
73 |
|
||||||
Net income |
|
|
|
|
|
|
$ |
204 |
|
||||||
Earnings per share |
|
|
|
|
|
|
|
||||||||
Basic |
|
|
|
|
|
|
$ |
3.16 |
|
||||||
Diluted |
|
|
|
|
|
|
$ |
3.10 |
|
||||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Reconciliation: |
|
|
|
|
|
|
|
||||||||
Pretax income (loss) |
$ |
354 |
|
|
$ |
38 |
|
|
$ |
(115 |
) |
|
$ |
277 |
|
Other mark-to-market |
|
(68 |
) |
|
|
— |
|
|
|
— |
|
|
|
(68 |
) |
Accounting items / other |
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
8 |
|
Intangible amortization |
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Pretax operating income (loss) |
$ |
288 |
|
|
$ |
38 |
|
|
$ |
(107 |
) |
|
$ |
219 |
|
Income tax expense |
|
|
|
|
|
|
|
(53 |
) |
||||||
Operating income(1) |
|
|
|
|
|
|
$ |
166 |
|
||||||
Operating ROTCE(2) |
|
|
|
|
|
|
|
15.3 |
% |
||||||
Average tangible book value (TBV)(3) |
|
|
|
|
|
|
$ |
4,333 |
|
(1) |
Assumes tax-rate of |
(2) |
Computed by dividing annualized earnings by average TBV. |
(3) |
Average of beginning TBV of |
Non-GAAP Reconciliation: |
Quarter Ended |
||||||
($ in millions except value per share data) |
Q3'24 |
|
Q2'24 |
||||
Stockholders' equity (BV) |
$ |
4,638 |
|
|
$ |
4,594 |
|
Goodwill |
|
(141 |
) |
|
|
(141 |
) |
Intangible assets |
|
(23 |
) |
|
|
(25 |
) |
Tangible book value (TBV) |
$ |
4,474 |
|
|
$ |
4,428 |
|
Ending shares of common stock outstanding (in millions) |
|
64.0 |
|
|
|
64.5 |
|
|
|
|
|
||||
BV/share |
$ |
72.49 |
|
|
$ |
71.24 |
|
TBV/share |
$ |
69.93 |
|
|
$ |
68.67 |
|
|
|
|
|
||||
Net income |
$ |
80 |
|
|
$ |
204 |
|
ROCE(1) |
|
6.9 |
% |
|
|
18.1 |
% |
|
|
|
|
||||
Beginning stockholders’ equity |
$ |
4,594 |
|
|
$ |
4,405 |
|
Ending stockholders’ equity |
$ |
4,638 |
|
|
$ |
4,594 |
|
Average stockholders’ equity (BV) |
$ |
4,616 |
|
|
$ |
4,500 |
(1) |
Return on Common Equity (ROCE) is computed by dividing annualized earnings by average BV. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023604090/en/
Investor Contact:
Kenneth Posner, SVP Strategic Planning and Investor Relations
(469) 426-3633
Shareholders@mrcooper.com
Media Contact:
Christen Reyenga, VP Corporate Communications
MediaRelations@mrcooper.com
Source: Mr. Cooper Group Inc.
FAQ
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