- Originations of $4.3 Billion in Third Quarter and $11.4
Billion YTD
- Net Revenue of $257.3 Million in Third Quarter and $598.0
Million YTD
- Net Income of $54.2 Million in Third Quarter and $54.0
Million YTD
- Adjusted Net Income of $29.0 Million in Third Quarter and
$35.5 Million YTD
- Return on Equity of 17.2% and Adjusted Return on Equity of
9.2% in Third Quarter
- Gain on Sale Margin on Originations of 377 bps in Third
Quarter
- 94% of Originations were Purchase Originations in the Third
Quarter
- Paid Special Cash Dividend of $0.50 Per Share in the Third
Quarter
- Acquired First Centennial Mortgage, a residential mortgage
lender headquartered in Illinois
Guild Holdings Company (NYSE: GHLD) (“Guild” or the “Company”),
a growth-oriented mortgage company that employs a
relationship-based loan sourcing strategy to execute on its mission
of delivering the promise of homeownership, today announced results
for the third quarter ended September 30, 2023.
“In the third quarter, we delivered revenue and earnings growth
over the prior quarter, even as lower originations volume reflects
ongoing industry headwinds of higher interest rates and limited
home sales inventory,” stated Terry Schmidt, Guild Holdings Chief
Executive Officer. “We have remained consistent with our strategy
of growing market share in the retail purchase mortgage market,
while retaining the servicing of those loans. This focus not only
allows us to see more reliable income, it enables us to build an
ongoing asset, where we believe we have the opportunity to realize
repeat transactions over time. Through a combination of selective
acquisitions and organic recruiting, we have continued to invest in
our people and our platform to both drive market share in the near
term, and to be positioned to accelerate growth when this cycle
turns. We are well-capitalized, and remain confident that we have
the right platform, products and people to allow us to deliver on
our strategy.”
Third Quarter
2023
Highlights
Total in-house originations of $4.3
billion compared to $4.5 billion in the prior quarter
Originated 94% of closed loan origination
volume from purchase business, compared to the Mortgage Bankers
Association estimate of 82% for the same period
Net revenue of $257.3 million compared to
$236.8 million in the prior quarter
Net income of $54.2 million compared to
$36.9 million in the prior quarter
Servicing portfolio unpaid principal
balance of $83.7 billion as of September 30, 2023, up 2% compared
to $82.0 billion as of June 30, 2023
Adjusted net income and adjusted EBITDA
totaled $29.0 million and $43.9 million, respectively, compared to
$9.0 million and $16.5 million, respectively, in the prior
quarter
Return on equity of 17.2% and adjusted
return on equity of 9.2%, compared to 12.0% and 2.9%, respectively,
in the prior quarter
Year-To-Date
2023
Highlights
Total in-house originations of $11.4
billion compared to $16.1 billion in the prior year
Originated 94% of closed loan origination
volume from purchase business, compared to the Mortgage Bankers
Association estimate of 81% for the same period
Net revenue of $0.6 billion compared to
$1.0 billion in the prior year
Net income of $54.0 million compared to
net income of $343.6 million in the prior year
Servicing portfolio unpaid principal
balance of $83.7 billion as of September 30, 2023, up 8% compared
to $77.7 billion as of September 30, 2022
Adjusted net income and adjusted EBITDA
totaled $35.5 million and $61.6 million, respectively, compared to
adjusted net income and adjusted EBITDA of $70.1 million and $101.6
million, respectively, in the prior year
Return on equity of 5.7% and adjusted
return on equity of 3.8%, compared to 41.9% and 8.6%, respectively,
in the prior year
Third Quarter Summary
Please refer to “Key Performance Indicators” and “GAAP to
Non-GAAP Reconciliations” elsewhere in this release for a
description of the key performance indicators and definitions of
the non-GAAP measures and reconciliations to the nearest comparable
financial measures calculated and presented in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”).
($ amounts in millions, except per share
amounts)
3Q’23
2Q’23
%∆
YTD’23
YTD’22
%∆
Total in-house originations
$
4,263.8
$
4,458.5
(4
)%
$
11,423.8
$
16,147.3
(29
)%
Gain on sale margin on originations
(bps)
377
310
22
%
343
375
(9
)%
Gain on sale margin on pull-through
adjusted locked volume (bps)
389
314
24
%
333
342
(3
)%
UPB of servicing portfolio (period
end)
$
83,705.7
$
82,030.4
2
%
$
83,705.7
$
77,735.7
8
%
Net revenue
$
257.3
$
236.8
9
%
$
598.0
$
1,030.5
(42
)%
Total expenses
$
183.7
$
186.4
(1
)%
$
524.8
$
587.3
(11
)%
Net income
$
54.2
$
36.9
47
%
$
54.0
$
343.6
(84
)%
Return on equity
17.2
%
12.0
%
43
%
5.7
%
41.9
%
(86
)%
Adjusted net income
$
29.0
$
9.0
223
%
$
35.5
$
70.1
(49
)%
Adjusted EBITDA
$
43.9
$
16.5
166
%
$
61.6
$
101.6
(39
)%
Adjusted return on equity
9.2
%
2.9
%
215
%
3.8
%
8.6
%
(56
)%
Earnings per share
$
0.89
$
0.61
47
%
$
0.89
$
5.63
(84
)%
Diluted earnings per share
$
0.88
$
0.60
47
%
$
0.87
$
5.56
(84
)%
Adjusted earnings per share
$
0.48
$
0.15
223
%
$
0.58
$
1.15
(49
)%
Origination Segment Results
Origination segment net income was $7.2 million in the third
quarter compared to a net loss of $21.3 million in the prior
quarter on lower origination volume and still reflecting the impact
of higher interest rates and low housing inventory. During the
three months ended September 30, 2023, we changed certain of our
assumptions through enhancements to the models used in the
valuation of our interest rate lock commitments and mortgage loans
held for sale, which resulted in a $17.4 million increase to gain
on sale of loans. Gain on sale margins on originations increased 67
bps quarter-over-quarter to 377 bps. Gain on sale margins on
pull-through adjusted locked volume increased 75 bps
quarter-over-quarter to 389 bps and total pull-through adjusted
locked volume was $4.1 billion compared to $4.4 billion in the
prior quarter.
($ amounts in millions)
3Q’23
2Q’23
%∆
YTD’23
YTD’22
%∆
Total in-house originations
$
4,263.8
$
4,458.5
(4
)%
$
11,423.8
$
16,147.3
(29
)%
In-house originations # (000’s)
13
13
—
%
35
50
(30
)%
Net revenue
$
163.3
$
140.3
16
%
$
397.2
$
616.4
(36
)%
Total expenses
$
156.1
$
161.6
(3
)%
$
444.1
$
525.8
(16
)%
Net income (loss) allocated to
origination
$
7.2
$
(21.3
)
134
%
$
(46.9
)
$
90.6
(152
)%
Servicing Segment Results
Servicing segment net income was $84.0 million in the third
quarter compared to $88.7 million in the prior quarter. The Company
retained mortgage servicing rights (“MSRs”) for 80% of total loans
sold in the third quarter of 2023.
Net revenue totaled $96.6 million compared to $98.9 million in
the prior quarter. In the third quarter of 2023, fair value
adjustments with respect to the Company’s MSRs totaled a gain of
$22.1 million, compared to $27.9 million in the prior quarter.
Guild’s purchase recapture rate was 25% in the third quarter of
2023, which aligns with the Company’s focus on customer service and
synergistic business model.
($ amounts in millions)
3Q’23
2Q’23
%∆
YTD’23
YTD’22
%∆
UPB of servicing portfolio (period
end)
$
83,705.7
$
82,030.4
2
%
$
83,705.7
$
77,735.7
8
%
# Loans serviced (000’s) (period end)
340
335
1
%
340
320
6
%
Loan servicing and other fees
$
61.9
$
60.2
3
%
$
182.3
$
165.4
10
%
Valuation adjustment of MSRs
$
22.1
$
27.9
(21
)%
$
(4.9
)
$
247.4
(102
)%
Net revenue
$
96.6
$
98.9
(2
)%
$
208.5
$
418.6
(50
)%
Total expenses
$
12.6
$
10.1
24
%
$
36.1
$
31.2
16
%
Net income allocated to servicing
$
84.0
$
88.7
(5
)%
$
172.5
$
387.5
(55
)%
Share Repurchase Program
During the three months ended September 30, 2023, the Company
repurchased and subsequently retired 87,087 shares of its Class A
common stock at an average purchase price of $11.74 per share. As
of September 30, 2023, $12.3 million remained available for
repurchase under the Company’s share repurchase program.
Balance Sheet and Liquidity Highlights
The Company’s cash and cash equivalents position was $114.4
million as of September 30, 2023. The Company’s unutilized loan
funding capacity was $1.0 billion, while the unutilized MSR lines
of credit was $336.2 million, based on total committed amounts and
borrowing base limitations. The Company’s leverage ratio was 1.0x,
defined as total secured debt including funding divided by tangible
stockholders’ equity.
(in millions, except per share
amounts)
September 30,
2023
December 31,
2022
Cash and cash equivalents
$
114.4
$
137.9
Mortgage servicing rights, net
$
1,258.3
$
1,139.5
Warehouse lines of credit
$
839.1
$
713.2
Notes payable
$
148.8
$
126.3
Total stockholders’ equity
$
1,277.0
$
1,249.3
Tangible net book value per share(1)
$
17.46
$
17.06
_________________
(1)
See “GAAP to Non-GAAP
Reconciliation” for a description of this non-GAAP measure and
reconciliation to the nearest comparable financial measures
calculated and presented in accordance with GAAP.
Webcast and Conference Call
The Company will host a webcast and conference call on
Wednesday, November 8, 2023 at 5:00 p.m. Eastern Time to discuss
the Company’s results for the third quarter ended September 30,
2023.
The conference call will be available on the Company's website
at https://ir.guildmortgage.com/. To listen to a live broadcast, go
to the site at least 15 minutes prior to the scheduled start time
to register. The conference call can also be accessed by the
following dial-in information:
- 1-877-300-8521 (Domestic)
- 1-412-317-6026 (International)
A replay of the call will be available on the Company's website
at https://ir.guildmortgage.com/ approximately two hours after the
live call through November 22, 2023. The replay is also available
by dialing 1-844-512-2921 (United States) or 1-412-317-6671
(international). The replay pin number is 10183072.
About Guild Holdings Company
Founded in 1960 when the modern U.S. mortgage industry was just
forming, Guild Holdings Company is a nationally recognized
independent mortgage lender providing residential mortgage products
and local in-house origination and servicing. Guild’s collaborative
culture and commitment to diversity and inclusion enable it to
deliver a personalized experience for each customer. With more than
4,200 employees and over 340 retail branches, Guild has
relationships with credit unions, community banks, and other
financial institutions and services loans in 49 states and the
District of Columbia. Guild’s highly trained loan professionals are
experienced in government-sponsored programs such as FHA, VA, USDA,
down payment assistance programs and other specialized loan
programs. Its shares of Class A common stock trade on the New York
Stock Exchange under the symbol GHLD.
Forward-Looking Statements
This press release contains forward-looking statements,
including statements about the Company’s expectations for gaining
market share and accelerating growth, ongoing pursuit of M&A
opportunities, expectations for benefits from recent acquisitions
and expansion of retail reach, expectations for increased home
sales and mortgage activity, and ability to continue to repurchase
shares of the Company’s Class A common stock pursuant to its share
repurchase program. These forward-looking statements reflect our
current views with respect to, among other things, future events
and our financial performance. These statements are often, but not
always, made through the use of words or phrases such as “may,”
“should,” “could,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “anticipate,” “seek,”
“estimate,” “intend,” “plan,” “projection,” “would” and “outlook,”
or the negative version of those words or other comparable words or
phrases of a future or forward-looking nature. These
forward-looking statements are not historical facts and are based
on current expectations, estimates and projections about our
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. Accordingly, we caution you that
any such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable as of the date made, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements.
Important factors that could cause our actual results to differ
materially from those indicated in these forward-looking statements
include, but are not limited to, the following: any disruptions in
the secondary home loan market and their effects on our ability to
sell the loans that we originate; any changes in macroeconomic and
U.S. residential real estate market conditions; any changes in
certain U.S. government-sponsored entities and government agencies,
and any organizational or pricing changes in these entities, their
guidelines or their current roles; any changes in prevailing
interest rates or U.S. monetary policies; the effects of any
termination of our servicing rights; the effects of our existing
and future indebtedness on our liquidity and our ability to operate
our business; any disruption in the technology that supports our
origination and servicing platform; our failure to identify,
develop and integrate acquisitions of other companies or
technologies; pressure from existing and new competitors; any
failure to maintain or grow our historical referral relationships
with our referral partners; any delays in recovering service
advances; inaccuracies in the estimates of the fair value of the
substantial portion of our assets that are measured on that basis
(including our MSRs); any failure to adapt to and implement
technological changes; the failure of the internal models that we
use to manage risk and make business decisions to produce reliable
or accurate results; the degree of business and financial risk
associated with certain of our loans; any cybersecurity breaches or
other vulnerability involving our computer systems or those of
certain of our third-party service providers; our inability to
secure additional capital, if needed, to operate and grow our
business; the impact of operational risks, including employee or
consumer fraud, the obligation to repurchase sold loans in the
event of a documentation error, and data processing system failures
and errors; any repurchase or indemnification obligations caused by
the failure of the loans that we originate to meet certain criteria
or characteristics; the seasonality of the mortgage origination
industry; any failure to protect our brand and reputation; any
non-compliance with the complex laws and regulations governing our
mortgage loan origination and servicing activities; material
changes to the laws, regulations or practices applicable to reverse
mortgage programs; our control by, and any conflicts of interest
with, McCarthy Capital Mortgage Investors, LLC; the risks related
to our status as a “controlled company”; the significant influence
on our business that members of our board and management team are
able to exercise as stockholders; our dependence, as a holding
company, upon distributions from Guild Mortgage Company LLC to meet
our obligations; the risks related to the trading market of our
Class A common stock due to our dual class common stock structure;
our ability to complete repurchases under the share repurchase
program in the amount authorized or at all and the impact of the
share repurchase program on our business and financial condition;
the identification of material weaknesses in our internal control
over financial reporting; and the other risks, uncertainties and
factors set forth under Item IA. – Risk Factors and all other
disclosures appearing in Guild’s Annual Report on Form 10-K for the
year ended December 31, 2022, Quarterly Report on Form 10-Q for the
quarter ended June 30, 2023 as well as other documents Guild files
from time to time with the Securities and Exchange Commission.
The foregoing factors should not be construed as exhaustive and
should be read together with the other cautionary statements
included in this press release. If one or more events related to
these or other risks or uncertainties materialize, or if our
underlying assumptions prove to be incorrect, actual results may
differ materially from what we anticipate. Many of the important
factors that will determine these results are beyond our ability to
control or predict. Accordingly, you should not place undue
reliance on any such forward-looking statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as otherwise required by law, we
undertake no obligation to update any forward-looking statement
made in this press release to reflect events or circumstances after
the date of this press release or to reflect new information or the
occurrence of unanticipated events. We may not actually achieve the
plans, intentions or expectations disclosed in our forward-looking
statements and you should not place undue reliance on our
forward-looking statements. Our forward-looking statements do not
reflect the potential impact of any future acquisitions, mergers,
dispositions, joint ventures, or investments we may make.
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance
with GAAP and to provide investors with additional information
regarding our GAAP financial results, we disclose certain financial
measures for our consolidated and operating segment results on both
a GAAP and a non-GAAP (adjusted) basis. The non-GAAP financial
measures disclosed should be viewed in addition to, and not as an
alternative to, results prepared in accordance with GAAP. These
non-GAAP financial measures are not based on any standardized
methodology prescribed by GAAP and are not necessarily comparable
to similarly titled measures presented by other companies.
Adjusted Net Income. We define Adjusted Net Income as
earnings attributable to Guild before the change in the fair value
measurements related to our MSRs, contingent liabilities and note
receivable related to completed acquisitions due to changes in
valuation assumptions, amortization of acquired intangible assets
and stock-based compensation. We exclude these items because we
believe they are non-cash expenses that are not reflective of our
core operations or indicative of our ongoing operations. Adjusted
Net Income is also adjusted by applying an estimated effective tax
rate to these adjustments. In addition we exclude the change in the
fair value of MSRs due to changes in model inputs and assumptions
from Adjusted Net Income and Adjusted EBITDA below because we
believe this non-cash, non-realized adjustment to net revenues is
not indicative of our operating performance or results of
operations but rather reflects changes in model inputs and
assumptions (e.g., prepayment speed, discount rate and cost to
service assumptions) that impact the carrying value of our MSRs
from period to period.
Adjusted Earnings Per Share. We define Adjusted Earnings
Per Share as our adjusted net income divided by the basic weighted
average shares outstanding of our Class A and Class B common
stock.
Adjusted EBITDA. We define Adjusted EBITDA as earnings
before interest (without adjustment for net warehouse interest
related to loan fundings and payoff interest related to loan
prepayments), taxes, depreciation and amortization and net income
attributable to the non-controlling interests exclusive of any
change in the fair value measurements of our MSRs due to valuation
assumptions, contingent liabilities and note receivable related to
completed acquisitions due to changes in valuation assumptions and
stock-based compensation. We exclude these items because we believe
they are non-cash expenses that are not reflective of our core
operations or indicative of our ongoing operations.
Adjusted Return on Equity. We define Adjusted Return on
Equity as annualized Adjusted Net Income as a percentage of average
beginning and ending stockholders’ equity during the period.
Tangible Net Book Value Per Share. We define Tangible Net
Book Value Per Share as total stockholders’ equity attributable to
Guild, less intangible assets, net and goodwill divided by the
total shares of our Class A and Class B common stock outstanding.
The most directly comparable GAAP financial measure for tangible
net book value per share is book value per share.
We use these non-GAAP financial measures (other than tangible
net book value per share) to evaluate our operating performance, to
establish budgets and to develop operational goals for managing our
business. These non-GAAP financial measures are designed to
evaluate operating results exclusive of fair value adjustments that
are not indicative of management’s operating performance.
Accordingly, we believe that these financial measures provide
useful information to investors and others in understanding and
evaluating our operating results, enhancing the overall
understanding of our past performance and future prospects. In
addition, management uses the non-GAAP financial measure of
tangible net book value per share to evaluate the adequacy of our
stockholders’ equity and assess our capital position and believes
tangible net book value provides useful information to investors in
assessing the strength of our financial position.
Our non-GAAP financial measures are not prepared in accordance
with GAAP and should not be considered in isolation of, or as an
alternative to, measures prepared in accordance with GAAP. There
are a number of limitations related to the use of these non-GAAP
financial measures rather than net income (loss), which is the most
directly comparable financial measure calculated and presented in
accordance with GAAP for Adjusted Net Income and Adjusted EBITDA,
Earnings per share, which is the most directly comparable financial
measure calculated and presented in accordance with GAAP for
Adjusted Earnings per share, Return on Equity, which is the most
directly comparable financial measure calculated and presented in
accordance with GAAP for Adjusted Return on Equity, and Book Value
Per Share, which is the most directly comparable financial measure
calculated and presented in accordance with GAAP for Tangible Net
Book Value Per Share. These limitations include that these non-GAAP
financial measures are not based on a comprehensive set of
accounting rules or principles and many of the adjustments to the
GAAP financial measures reflect the exclusion of items that are
recurring and may be reflected in our financial results for the
foreseeable future. In addition, other companies may use other
measures to evaluate their performance, all of which could reduce
the usefulness of our non-GAAP financial measures as tools for
comparison.
For more information on these non-GAAP financial measures,
please see the “GAAP to Non-GAAP Reconciliations” included at the
end of this release.
Condensed Consolidated Balance
Sheets (unaudited)
(in thousands, except share and per
share amounts)
September 30,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
114,352
$
137,891
Restricted cash
3,532
8,863
Mortgage loans held for sale
932,771
845,775
Reverse mortgage loans held for
investment
81,457
—
Ginnie Mae loans subject to repurchase
right
639,023
650,179
Accounts, notes and interest
receivable
63,649
58,304
Derivative assets
24,401
3,120
Mortgage servicing rights, net
1,258,313
1,139,539
Intangible assets, net
27,113
33,075
Goodwill
186,183
176,769
Other assets
165,839
186,076
Total assets
$
3,496,633
$
3,239,591
Liabilities and stockholders’
equity
Warehouse lines of credit
$
839,122
$
713,151
HMBS-related borrowings
71,278
—
Notes payable
148,766
126,250
Ginnie Mae loans subject to repurchase
right
639,370
650,179
Accounts payable and accrued expenses
33,194
34,095
Accrued compensation and benefits
33,600
29,597
Investor reserves
20,022
16,094
Contingent liabilities due to
acquisitions
7,239
526
Derivative liabilities
—
5,173
Operating lease liabilities
80,287
85,977
Note due to related party
—
530
Deferred compensation plan
95,394
95,769
Deferred tax liabilities
251,384
232,963
Total liabilities
2,219,656
1,990,304
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value;
50,000,000 shares authorized; no shares issued and outstanding
—
—
Class A common stock, $0.01 par value;
250,000,000 shares authorized; 20,558,055 and 20,583,130 shares
issued and outstanding at September 30, 2023 and December 31, 2022,
respectively
205
206
Class B common stock, $0.01 par value;
100,000,000 shares authorized; 40,333,019 shares issued and
outstanding at September 30, 2023 and December 31, 2022
403
403
Additional paid-in capital
47,529
42,727
Retained earnings
1,228,361
1,205,885
Non-controlling interests
479
66
Total stockholders' equity
1,276,977
1,249,287
Total liabilities and stockholders’
equity
$
3,496,633
$
3,239,591
Condensed Consolidated
Statements of Income (unaudited)
Three Months Ended
Nine Months Ended
September 30,
(in thousands, except per share
amounts)
Sep 30, 2023
Jun 30, 2023
2023
2022
Revenue
Loan origination fees and gain on sale of
loans, net
$
158,126
$
136,925
$
387,702
$
605,229
Gain on reverse mortgage loans held for
investment and HMBS-related borrowings, net
2,755
2,306
5,061
—
Loan servicing and other fees
61,941
60,211
182,239
165,419
Valuation adjustment of mortgage servicing
rights
22,077
27,890
(4,904
)
247,439
Interest income
31,348
26,584
76,177
47,661
Interest expense
(19,394
)
(17,329
)
(48,985
)
(36,411
)
Other income, net
404
224
663
1,182
Net revenue
257,257
236,811
597,953
1,030,519
Expenses
Salaries, incentive compensation and
benefits
142,637
144,903
398,660
502,893
General and administrative
18,809
20,448
60,140
20,153
Occupancy, equipment and communication
18,536
18,402
54,368
54,587
Depreciation and amortization
3,664
3,661
11,063
11,616
Provision for (reversal of) foreclosure
losses
84
(1,044
)
554
(1,974
)
Total expenses
183,730
186,370
524,785
587,275
Income before income tax expense
73,527
50,441
73,168
443,244
Income tax expense
19,284
13,505
19,184
99,615
Net income
54,243
36,936
53,984
343,629
Net (loss) income attributable to
non-controlling interests
(6
)
—
(11
)
25
Net income attributable to
Guild
$
54,249
$
36,936
$
53,995
$
343,604
Net income per share attributable to Class
A and Class B Common Stock:
Basic
$
0.89
$
0.61
$
0.89
$
5.63
Diluted
$
0.88
$
0.60
$
0.87
$
5.56
Weighted average shares outstanding of
Class A and Class B Common Stock:
Basic
60,956
60,962
60,940
61,004
Diluted
61,913
61,801
61,976
61,806
Key Performance Indicators
Management reviews several key performance indicators to
evaluate our business results, measure our performance and identify
trends to inform our business decisions. Summary data for these key
performance indicators is listed below.
Three Months Ended
Nine Months Ended September
30,
($ and units in thousands)
Sep 30, 2023
Jun 30, 2023
2023
2022
Origination Data
$ Total in-house origination(1)
$
4,263,841
$
4,458,502
$
11,423,769
$
16,147,287
# Total in-house origination
13
13
35
50
$ Retail forward in-house origination
$
4,087,820
$
4,125,328
$
10,771,949
$
15,458,986
# Retail forward in-house origination
13
12
33
47
$ Retail reverse in-house origination
$
19,984
$
7,858
$
27,842
$
—
# Retail reverse in-house origination
—
—
—
—
$ Retail brokered origination(2)
$
74,517
$
64,240
$
180,461
$
161,279
$ Wholesale reverse origination
$
8,948
$
26,603
$
35,551
$
—
Total originations
$
4,347,306
$
4,549,345
$
11,639,781
$
16,308,566
Gain on sale margin (bps)(3)
377
310
343
375
Pull-through adjusted locked volume(4)
$
4,067,137
$
4,362,354
$
11,643,939
$
17,692,129
Gain on sale margin on pull-through
adjusted locked volume (bps)(5)
389
314
333
342
Purchase recapture rate(6)
25
%
27
%
28
%
31
%
Refinance recapture rate(7)
22
%
22
%
26
%
45
%
Purchase origination %
94
%
94
%
94
%
79
%
Servicing Data
UPB (period end)(8)
$
83,705,731
$
82,030,408
$
83,705,731
$
77,735,730
_________________
(1)
Includes retail forward,
correspondent and retail reverse and excludes wholesale reverse and
brokered loans.
(2)
Brokered loans are defined as
loans we originate in the retail channel that are processed by us
but underwritten and closed by another lender. These loans are
typically for products we choose not to offer in-house.
(3)
Represents loan origination fees
and gain on sale of loans, net plus gain on reverse mortgage loans
held for investment and HMBS-related borrowings, net divided by
total originations, excluding brokered loans, to derive basis
points. This includes a $17.4 million increase in the valuation of
our interest rate lock commitments and mortgage loans held for sale
recognized in the three months ended September 30, 2023 due to
model enhancements.
(4)
Pull-through adjusted locked
volume is equal to total locked volume, which excludes reverse
loans, multiplied by pull-through rates of 84.3%, 85.4% and 94.6%
as of September 30, 2023, June 30, 2023 and September 30, 2022,
respectively. We estimate the pull-through rate based on changes in
pricing and actual borrower behavior using a historical analysis of
loan closing data and “fallout” data with respect to the number of
commitments that have historically remained unexercised.
(5)
Represents loan origination fees
and gain on sale of loans, net divided by pull-through adjusted
locked volume. This includes a $17.4 million increase in the
valuation of our interest rate lock commitments and mortgage loans
held for sale recognized in the three months ended September 30,
2023 due to model enhancements.
(6)
Purchase recapture rate is
calculated as the ratio of (i) UPB of our clients that originated a
new mortgage with us for the purchase of a home in a given period,
to (ii) total UPB of our clients that paid off their existing
mortgage as a result of selling their home in a given period.
(7)
Refinance recapture rate is
calculated as the ratio of (i) UPB of our clients that originated a
new mortgage loan for the purpose of refinancing an existing
mortgage with us in a given period, to (ii) total UPB of our
clients that paid off their existing mortgage as a result of
refinancing their home in the same period.
(8)
Excludes reverse mortgage loans
of $73.7 million and $34.5 million as of September 30, 2023 and
June 30, 2023, respectively.
GAAP to Non-GAAP
Reconciliations
Reconciliation of Net Income
to Adjusted Net Income (unaudited)
Three Months Ended
Nine Months Ended September
30,
(in millions, except per share
amounts)
Sep 30, 2023
Jun 30, 2023
2023
2022
Net income
$
54.2
$
36.9
$
54.0
$
343.6
Net (loss) income attributable to
non-controlling interests(1)
—
—
—
—
Net income attributable to Guild
$
54.2
$
36.9
$
54.0
$
343.6
Add adjustments:
Change in fair value of MSRs due to model
inputs and assumption
(38.2
)
(43.8
)
(38.3
)
(317.8
)
Change in fair value of contingent
liabilities, net due to acquisitions
(0.4
)
1.3
0.9
(45.1
)
Amortization of acquired intangible
assets
2.0
2.0
6.0
6.0
Stock-based compensation
2.3
2.3
6.4
4.9
Tax impact of adjustments(2)
9.0
10.2
6.6
78.5
Adjusted Net Income
$
29.0
$
9.0
$
35.5
$
70.1
Weighted average shares outstanding of
Class A and Class B Common Stock
61
61
61
61
Earnings per share
$
0.89
$
0.61
$
0.89
$
5.63
Adjusted earnings per share
$
0.48
$
0.15
$
0.58
$
1.15
_________________
Amounts may not foot due to rounding
(1)
Net (loss) income attributable to
non-controlling interests was $(6) thousand, $0, $(11) thousand and
$25 thousand for the three months ended September 30, 2023 and June
30, 2023 and the nine months ended September 30, 2023 and 2022,
respectively.
(2)
Estimated effective tax rate used
was 26.3%, 26.8%, 26.3% and 22.3% for the three months ended
September 30, 2023 and June 30, 2023 and the nine months ended
September 30, 2023 and 2022, respectively.
Reconciliation of Earnings Per
Share to Adjusted Earnings Per Share (unaudited)
Three Months Ended
Nine Months Ended September
30,
Sep 30, 2023
Jun 30, 2023
2023
2022
Earnings per share
$
0.89
$
0.61
$
0.89
$
5.63
Add back (subtract):
Per share impact of non-GAAP adjustments,
net of tax
(0.41
)
(0.46
)
(0.30
)
(4.48
)
Adjusted earnings per share(1)
$
0.48
$
0.15
$
0.58
$
1.15
_________________
(1)
Adjusted earnings per share uses
the same denominator as earnings per share.
Reconciliation of Net Income
to Adjusted EBITDA
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
(in millions)
Sep 30, 2023
Jun 30, 2023
2023
2022
Net income
$
54.2
$
36.9
$
54.0
$
343.6
Add adjustments:
Interest expense on non-funding debt
3.0
2.6
8.4
4.7
Income tax expense
19.3
13.5
19.2
99.6
Depreciation and amortization
3.7
3.7
11.1
11.6
Change in fair value of MSRs due to model
inputs and assumptions
(38.2
)
(43.8
)
(38.3
)
(317.8
)
Change in fair value of contingent
liabilities, net due to acquisitions
(0.4
)
1.3
0.9
(45.1
)
Stock-based compensation
2.3
2.3
6.4
4.9
Adjusted EBITDA
$
43.9
$
16.5
$
61.6
$
101.6
Reconciliation of Return on
Equity to Adjusted Return on Equity
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
($ in millions)
Sep 30, 2023
Jun 30, 2023
2023
2022
Income Statement Data:
Net income attributable to Guild
$
54.2
$
36.9
$
54.0
$
343.6
Adjusted net income
$
29.0
$
9.0
$
35.5
$
70.1
Average stockholders’ equity
$
1,264.2
$
1,232.4
$
1,263.1
$
1,092.8
Return on Equity
17.2
%
12.0
%
5.7
%
41.9
%
Adjusted Return on Equity
9.2
%
2.9
%
3.8
%
8.6
%
Reconciliation of Book Value
Per Share to Tangible Net Book Value Per Share
(unaudited)
(in millions, except per share
amounts)
September 30, 2023
December 31, 2022
Total stockholders' equity
$
1,277.0
$
1,249.3
Less: non-controlling interests
0.5
0.1
Total stockholders' equity attributable to
Guild
$
1,276.5
$
1,249.2
Adjustments:
Intangible assets, net
(27.1
)
(33.1
)
Goodwill
(186.2
)
(176.8
)
Tangible common equity
$
1,063.2
$
1,039.4
Ending shares of Class A and Class B
common stock outstanding
61
61
Book value per share
$
20.96
$
20.51
Tangible net book value per
share(1)
$
17.46
$
17.06
_________________
(1)
Tangible net book value per share
uses the same denominator as book value per share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108647263/en/
Investors: investors@guildmortgage.net
858-956-5130 Media: Melissa Rue
Nuffer, Smith, Tucker mkr@nstpr.com 619-296-0605 Ext. 247
Grafico Azioni Guild (NYSE:GHLD)
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Da Gen 2025 a Feb 2025
Grafico Azioni Guild (NYSE:GHLD)
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Da Feb 2024 a Feb 2025
