On October 26, 2023, Rithm Capital Corp (RITM, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a GAAP net income of $193.9 million, or $0.40 per diluted common share. Earnings available for distribution were $280.8 million, or $0.58 per diluted common share.
Financial Performance
Compared to the second quarter of 2023, RITM's GAAP net income per diluted common share decreased from $0.74 to $0.40. The GAAP net income also dropped from $357.4 million in Q2 2023 to $193.9 million in Q3 2023. However, earnings available for distribution per diluted common share saw a slight decrease from $0.62 in Q2 2023 to $0.58 in Q3 2023. The common dividend remained consistent at $0.25 per share.
This was a terrific quarter for our company— the firm continues to pivot towards our vision for Rithm 2.0 as we not only focus on our core business, but also other opportunities across our platforms in becoming a leading global asset manager," said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital.
Company Highlights and Future Plans
RITM's third quarter highlights included a pre-tax income of $412.5 million from the combined Origination & Servicing segment. The company also reported an origination funded production volume of $11.1 billion and an estimated Q4’23 funded origination volume of approximately $7 to $9 billion. The company's MSR portfolio totaled $595 billion in unpaid principal balance (UPB) at the end of September 2023.
Looking ahead, RITM has entered into a definitive agreement to acquire Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”), for a purchase price of approximately $720 million. The acquisition is expected to be completed by Q1’24, subject to customary closing conditions and approvals.
Financial Statements Summary
The company's revenues for Q3 2023 were primarily driven by servicing fee revenue, net and interest income from MSRs and MSR financing receivables amounting to $442.6 million, and interest income of $476.6 million. The total revenues for the quarter stood at $1,089.4 million.
On the balance sheet, as of September 30, 2023, RITM's total assets were valued at $34.7 billion, with mortgage servicing rights and mortgage servicing rights financing receivables accounting for $8.7 billion. The total equity was reported at $7.3 billion.
Investors and other interested parties can find additional information on the company's website, and are invited to participate in the earnings conference call scheduled for Thursday, October 26, 2023, at 8:00 A.M. Eastern Time.
Explore the complete 8-K earnings release (here) from Rithm Capital Corp for further details.
