2024-07-25 18:49:08 ET
Mr. Cooper Group Inc. (COOP)
Q2 2024 Earnings Conference Call
July 25, 2024 10:00 AM ET
Company Participants
Ken Posner - Senior Vice President, Strategic Planning & Investor Relations
Jay Bray - Chairman & Chief Executive Officer
Mike Weinbach - President
Kurt Johnson - Executive Vice President & Chief Financial Officer
Conference Call Participants
Terry Ma - Barclays
Mark DeVries - Deutsche Bank
Bose George - KBW
Crispin Love - Piper Sandler
Doug Harter - UBS
Shanna Qiu - Barclays
Eric Hagen - BTIG
Derek Sommers - Jefferies
Giuliano Bologna - Compass Point
Brian Violino - Wedbush Securities
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Mr. Cooper Group Q2 2024 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 first speaker at Mr. Cooper Group. Please go ahead.
Ken Posner
Good morning, and welcome to Mr. Cooper Group's 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; Mike Weinbach, President; and Kurt Johnson, Executive Vice President and CFO.
As a reminder, this call is being recorded. You can find the slides on our Investor Relations web page 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.
And I'll now turn the call over to Jay.
Jay Bray
Thanks Ken, and good morning everyone, and welcome to our call. As you saw from our press release this morning, we've got a lot to cover, including super strong second quarter results, and some exciting news, the acquisition of Flagstar's mortgage operations. We'll take you through the materials, as we always do, making sure to leave plenty of time for your questions.
But before we get into the acquisition, let's start on Slide 3 with a quick review of the quarter which was quite strong. For the second quarter, pre-tax operating income came in at $219 million, which is up 46% year-over-year. Operating ROTCE was 15.3%, up nearly 400 basis points from a year ago. At the end of last year, we said we expected ROTCE in a range of 14% to 18% in 2025. We're pleased to be in that range already, and we're feeling positive about our momentum heading into next year.
I'm super excited with the 17% year-over-year increase in TBV, which reached $68.67 at the end of the quarter. This was a function of earnings plus stock repurchase, which has reduced the share count by 4% over the last year and by a cumulative 35% since inception....
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Mr. Cooper Group Inc. (COOP) Q2 2024 Earnings Call Transcript