- Originations of $15.0 Billion in 2023, Including $3.5
Billion in Fourth Quarter
- Net Revenue of $0.7 Billion in 2023, Including $57.2 Million
in Fourth Quarter
- Net Loss of $39.1 Million in 2023, Including $93.1 Million
in Fourth Quarter
- Adjusted Net Income of $48.0 Million in 2023, Including
$12.5 Million in Fourth Quarter
- Return on Equity of (3.2%) and Adjusted Return on Equity of
3.9% in 2023
- Gain on Sale Margin on Originations of 330 bps in the Fourth
Quarter
- 93% of Originations were Purchase Originations in the Fourth
Quarter
- Expanded Market Share Subsequent to Quarter-End with
Acquisition
- Extended Share Repurchase Program
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 fourth quarter and full year ended December 31, 2023.
“We have continued to leverage the strength of our platform to
grow market share as we execute on our strategy that is focused on
the purchase market,” stated Terry Schmidt, Guild Holdings Chief
Executive Officer. “We are proud to be a lender of choice in the
communities across the country that we serve by providing creative
solutions for homebuyers seeking to finance their homes in this
higher rate environment. As we look forward, we are encouraged by
the market stabilization that is emerging, but anticipate a more
muted environment in the near term, particularly in the seasonally
slower first quarter.”
Ms. Schmidt continued, “By being disciplined and focusing on
maintaining a robust capital position, we have effectively pursued
complementary and compelling acquisitions and team additions to
position us for growth when the cycle turns. We are pleased with
our most acquisition of Academy Mortgage, which lifts Guild to
become the 8th largest non-bank retail mortgage lender and
represents a 25% increase to origination volume based on results
from both organizations through the third quarter of 2023,
according to data from Inside Mortgage Finance Publications. This
acquisition marks the fifth transaction over past year and a half,
adding new geographies, loan officers and products that will
continue to distinguish Guild in the marketplace and allow us to
create meaningful value for our shareholders over time.”
Fourth Quarter 2023
Highlights
Total in-house originations of $3.5
billion compared to $4.3 billion in the prior quarter
Originated 93% of closed loan origination
volume from purchase business, compared to the Mortgage Bankers
Association industry estimate of 81%
Net revenue of $57.2 million compared to
$257.3 million in the prior quarter
Net loss of $93.1 million compared to net
income of $54.2 million in the prior quarter
Servicing portfolio unpaid principal
balance of $85.0 billion as of December 31, 2023, up 2% compared to
$83.7 billion as of September 30, 2023
Adjusted net income and adjusted EBITDA
totaled $12.5 million and $13.2 million, respectively, compared to
$29.0 million and $43.9 million, respectively, in the prior
quarter
Return on equity of (30.2%) and adjusted
return on equity of 4.1%, compared to 17.2% and 9.2%, respectively,
in the prior quarter
Full Year 2023 Highlights
Total in-house originations of $15.0
billion compared to $19.1 billion in the prior year
Originated 93% of closed loan origination
volume from purchase business, compared to the Mortgage Bankers
Association estimate of 81%
Net revenue of $0.7 billion compared to
$1.2 billion in the prior year
Net loss of $39.1 million compared to net
income of $328.6 million in the prior year
Servicing portfolio unpaid principal
balance grew 8% to $85.0 billion as of December 31, 2023 compared
to $78.9 billion as of December 31, 2022
Adjusted net income and adjusted EBITDA
totaled $48.0 million and $74.8 million, respectively, compared to
$70.0 million and $103.5 million, respectively, in the prior
year
Return on equity of (3.2%) and adjusted
return on equity of 3.9%, compared to 30.3% and 6.4%, respectively,
in the prior year
Fourth Quarter and Full Year Summary
Please refer to “Key Performance Indicators” and “GAAP to
Non-GAAP Reconciliations” elsewhere in this release for a
description of the key performance indicators and definitions of
the non-GAAP measures and reconciliations to the nearest comparable
financial measures calculated and presented in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”).
($ amounts in millions, except per share
amounts)
4Q’23
3Q’23
%∆
FY23
FY22
%∆
Total in-house originations
$3,535.3
$4,263.8
(17)%
$14,959.1
$19,123.2
(22)%
Gain on sale margin on originations
(bps)
330
377
(12)%
340
368
(8)%
Gain on sale margin on pull-through
adjusted locked volume (bps)
347
389
(11)%
329
347
(5)%
UPB of servicing portfolio (period
end)
$85,033.9
$83,705.7
2%
$85,033.9
$78,893.0
8%
Net revenue
$57.2
$257.3
(78)%
$655.2
$1,164.8
(44)%
Total expenses
$176.5
$183.7
(4)%
$701.3
$744.8
(6)%
Net (loss) income
($93.1)
$54.2
(272)%
($39.1)
$328.6
(112)%
Return on equity
(30.2)%
17.2%
(276)%
(3.2%)
30.3%
(111)%
Adjusted net income
$12.5
$29.0
(57)%
$48.0
$70.0
(31)%
Adjusted EBITDA
$13.2
$43.9
(70)%
$74.8
$103.5
(28)%
Adjusted return on equity
4.1%
9.2%
(56)%
3.9 %
6.4%
(39)%
(Loss) earnings per share
($1.52)
$0.89
(271)%
($0.64)
$5.39
(112)%
Diluted (loss) earnings per share
($1.52)
$0.88
(274)%
($0.64)
$5.35
(112)%
Adjusted earnings per share
$0.21
$0.48
(57)%
$0.79
$1.15
(31)%
Adjusted diluted earnings per share
$0.20
$0.47
(57)%
$0.78
$1.14
(32)%
Origination Segment Results
Origination segment net loss was $26.8 million in the fourth
quarter compared to net income of $7.2 million in the prior quarter
primarily driven by lower origination volumes due to low housing
supply and purchase seasonality, coupled with prolonged higher
interest rates. Gain on sale margins on originations declined 47
bps quarter-over-quarter to 330 bps. Gain on sale margins on
pull-through adjusted locked volume decreased 42 bps
quarter-over-quarter to 347 bps and total pull-through adjusted
locked volume was $3.3 billion compared to $4.1 billion in the
prior quarter.
($ amounts in millions)
4Q’23
3Q’23
%∆
FY23
FY22
%∆
Total in-house originations
$3,535.3
$4,263.8
(17)%
$14,959.1
$19,123.2
(22)%
In-house originations # (000’s)
11
13
(15)%
46
59
(22)%
Net revenue
$119.2
$163.3
(27)%
$516.4
$717.9
(28)%
Total expenses
$146.0
$156.1
(6)%
$590.0
$653.9
(10)%
Net (loss) income allocated to
origination
($26.8)
$7.2
(472)%
($73.7)
$64.0
(215)%
Servicing Segment Results
Servicing segment net loss was $72.1 million in the fourth
quarter compared to net income of $84.0 million in the prior
quarter. The Company retained mortgage servicing rights (“MSRs”)
for 77% of total loans sold in the fourth quarter of 2023.
In the fourth quarter of 2023, valuation adjustments with
respect to the Company’s MSRs totaled a loss of $134.7 million,
compared to a gain of $22.1 million in the prior quarter. Guild’s
purchase recapture rate was 25% in the fourth quarter of 2023,
which aligns with the Company’s focus on customer service and its
synergistic business model.
($ amounts in millions)
4Q’23
3Q’23
%∆
FY23
FY22
%∆
UPB of servicing portfolio (period
end)
$85,033.9
$83,705.7
2%
$85,033.9
$78,893.0
8%
# Loans serviced (000’s) (period end)
345
340
1%
345
324
6%
Loan servicing and other fees
$63.9
$61.9
3%
$246.1
$223.4
10%
Valuation adjustment of MSRs
($134.7)
$22.1
(710)%
($139.6)
$217.6
(164)%
Net revenue
($59.2)
$96.6
(161)%
$149.3
$453.4
(67)%
Total expenses
$12.9
$12.6
3%
$49.0
$44.4
10%
Net (loss) income allocated to
servicing
($72.1)
$84.0
(186)%
$100.4
$409.0
(75)%
Share Repurchase Program
During the three months ended December 31, 2023, the Company
repurchased and subsequently retired 97,557 shares of Guild's Class
A common stock at an average purchase price of $11.69 per share. As
of December 31, 2023, $11.2 million remains available for
repurchase under the Company’s share repurchase program. On March
7, 2024, the Company’s Board of Directors extended the share
repurchase program to May 5, 2025.
Balance Sheet and Liquidity Highlights
The Company’s cash and cash equivalents position was $120.3
million as of December 31, 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 1.3x,
defined as total secured debt including funding divided by tangible
stockholders’ equity.
(in millions)
December 31,
2023
December 31,
2022
Cash and cash equivalents
$
120.3
$
137.9
Mortgage servicing rights, net
$
1,161.4
$
1,139.5
Warehouse lines of credit
$
833.8
$
713.2
Notes payable
$
148.8
$
126.3
Total stockholders’ equity
$
1,183.5
$
1,249.3
Tangible net book value per share(1)
$
15.90
$
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 Tuesday,
March 12, 2024 at 5 p.m. Eastern Time to discuss the Company’s
results for the fourth quarter and full year ended December 31,
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:
- 1-877-407-0789 (Domestic)
- 1-201-689-8562 (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 March 26, 2024. The replay is also available by
dialing 1-844-512-2921 (United States) or 1-412-317-6671
(international). The replay pin number is 13743252.
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 350 retail branches as of December 31,
2023, 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 and a related presentation by management of
Guild Holdings Company (the “Company”) contains forward-looking
statements, including statements about the Company’s growth
strategies, the Company’s future revenue, operating performance or
capital position, ongoing pursuit of M&A opportunities,
expectations for benefits from recent acquisitions, such as
increased market share and origination volume, expectations
regarding home sales and mortgage activity, the impact of future
interest rate environments and any other statements that are not
historical facts. These forward-looking statements reflect our
current expectations and judgments about 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.
Important factors that could cause our actual results to differ
materially from those expressed in or implied by 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; we depend on
our loan funding facilities to fund mortgage loans and otherwise
operate our business; 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; any failure to adapt to and implement technological
changes; 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 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; our
dependence, as a holding company, upon distributions from Guild
Mortgage Company LLC to meet our obligations; and the other risks,
uncertainties and factors set forth under Item IA. – Risk Factors
and all other disclosures appearing in Guild’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2023 as well as other
documents Guild files from time to time with the Securities and
Exchange Commission. 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 or any related presentation by Company
management.
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. Net income (loss) is the most
directly comparable financial measure calculated and presented in
accordance with GAAP for Adjusted Net Income, a non-GAAP measure.
We define Adjusted Net Income as earnings or loss attributable to
Guild excluding (i) the change in the fair value measurements
related to our MSRs due to changes in model inputs and assumptions,
(ii) change in the fair value of contingent liabilities related to
completed acquisitions, net of change in fair value of notes
receivable related to acquisitions, (iii) amortization of acquired
intangible assets and (iv) 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—Basic and Diluted. Earnings
per share is the most directly comparable financial measure
calculated and presented in accordance with GAAP for Adjusted
Earnings per share, a non-GAAP measure. We define Adjusted Earnings
Per Share as our Adjusted Net Income divided by the basic and
diluted weighted average shares outstanding of our Class A and
Class B common stock. Diluted weighted average shares outstanding
is adjusted include potential shares of Class A common stock
related to unvested RSUs that were excluded from the calculation of
GAAP diluted loss per share because they were anti-dilutive due to
the net loss, when applicable.
Adjusted EBITDA. Net income (loss) is the most directly
comparable financial measure calculated and presented in accordance
with GAAP for Adjusted EBITDA, a non-GAAP measure. We define
Adjusted EBITDA as earnings before (i) interest expense on
non-funding debt (without adjustment for net warehouse interest
related to loan fundings and payoff interest related to loan
prepayments), (ii) taxes, (iii) depreciation and amortization and
(iv) net income attributable to the non-controlling interests and
excluding (v) any change in the fair value measurements of our MSRs
due to valuation assumptions, (vi) change in the fair value of
contingent liabilities related to completed acquisitions, net of
change in fair value of notes receivable related to acquisitions
and (vii) stock-based compensation. We exclude these items because
we believe they are not reflective of our core operations or
indicative of our ongoing operations.
Adjusted Return on Equity. Return on equity is the most
directly comparable financial measure calculated and presented in
accordance with GAAP for Adjusted Return on Equity, a non-GAAP
measure. 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. Book value per share
is the most directly comparable financial measure calculated and
presented in accordance with GAAP for 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 and other
adjustments that are not indicative of our business’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.
For more information on these non-GAAP financial measures,
please see the “GAAP to Non-GAAP Reconciliations” included at the
end of this release.
Consolidated Balance
Sheets
(unaudited)
(in thousands, except share and per
share amounts)
December 31,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
120,260
$
137,891
Restricted cash
7,121
8,863
Mortgage loans held for sale
901,227
845,775
Reverse mortgage loans held for
investment
315,912
—
Ginnie Mae loans subject to repurchase
right
699,622
650,179
Accounts and notes receivable, net
85,356
58,304
Derivative assets
15,595
3,120
Mortgage servicing rights, net
1,161,357
1,139,539
Intangible assets, net
25,125
33,075
Goodwill
186,181
176,769
Other assets
158,964
186,076
Total assets
$
3,676,720
$
3,239,591
Liabilities and stockholders’
equity
Warehouse lines of credit, net
$
833,781
$
713,151
Home Equity Conversion Mortgage-Backed
Securities (“HMBS”) related borrowings
302,183
—
Notes payable
148,766
126,250
Ginnie Mae loans subject to repurchase
right
700,120
650,179
Accounts payable and accrued expenses
32,638
34,095
Accrued compensation and benefits
30,794
29,597
Investor reserves
19,973
16,094
Contingent liabilities due to
acquisitions
8,720
526
Derivative liabilities
16,245
5,173
Operating lease liabilities
75,832
85,977
Note due to related party
—
530
Deferred compensation plan
99,154
95,769
Deferred tax liabilities
225,021
232,963
Total liabilities
2,493,227
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; 20,786,814 and 20,583,130 shares
issued and outstanding at December 31, 2023 and 2022,
respectively
208
206
Class B common stock, $0.01 par value;
100,000,000 shares authorized; 40,333,019 shares issued and
outstanding at December 31, 2023 and 2022
403
403
Additional paid-in capital
47,158
42,727
Retained earnings
1,135,387
1,205,885
Non-controlling interests
337
66
Total stockholders' equity
1,183,493
1,249,287
Total liabilities and stockholders’
equity
$
3,676,720
$
3,239,591
Consolidated Statements of
Operations
(unaudited)
Three Months Ended
Year Ended December
31,
(in thousands, except per share
amounts)
Dec 31, 2023
Sep 30, 2023
2023
2022
Revenue
Loan origination fees and gain on sale of
loans, net
$
113,601
$
158,126
$
501,303
$
703,674
Gain on reverse mortgage loans held for
investment and HMBS-related borrowings, net
3,172
2,755
8,233
—
Loan servicing and other fees
63,905
61,941
246,144
223,403
Valuation adjustment of mortgage servicing
rights
(134,656
)
22,077
(139,560
)
217,551
Interest income
28,227
31,348
104,404
68,144
Interest expense
(17,379
)
(19,394
)
(66,364
)
(49,240
)
Other income, net
364
404
1,027
1,289
Net revenue
57,234
257,257
655,187
1,164,821
Expenses
Salaries, incentive compensation and
benefits
131,201
142,637
529,861
619,185
General and administrative
23,073
18,809
83,213
38,085
Occupancy, equipment and communication
18,108
18,536
72,476
71,707
Depreciation and amortization
3,517
3,664
14,580
15,525
Provision for foreclosure losses
634
84
1,188
300
Total expenses
176,533
183,730
701,318
744,802
(Loss) income before income tax (benefit)
expense
(119,299
)
73,527
(46,131
)
420,019
Income tax (benefit) expense
(26,178
)
19,284
(6,994
)
91,389
Net (loss) income
(93,121
)
54,243
(39,137
)
328,630
Net (loss) income attributable to
non-controlling interests
(117
)
(6
)
(128
)
32
Net (loss) income attributable to
Guild
$
(93,004
)
$
54,249
$
(39,009
)
$
328,598
(Loss) earnings per share attributable to
Class A and Class B Common Stock:
Basic
$
(1.52
)
$
0.89
$
(0.64
)
$
5.39
Diluted
$
(1.52
)
$
0.88
$
(0.64
)
$
5.35
Weighted average shares outstanding of
Class A and Class B Common Stock:
Basic
61,049
$
60,956
60,967
$
60,981
Diluted
61,049
$
61,913
60,967
$
61,379
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
Year Ended December
31,
($ and units in thousands)
Dec 31, 2023
Sep 30, 2023
2023
2022
Origination Data
$ Total in-house origination(1)
$
3,535,301
$
4,263,841
$
14,959,070
$
19,123,199
# Total in-house origination
11
13
46
59
$ Retail forward in-house origination
$
3,390,870
$
4,087,820
$
14,162,819
$
18,314,160
# Retail forward in-house origination
10
13
43
56
$ Retail reverse in-house origination
$
21,949
$
19,984
$
49,791
$
—
# Retail reverse in-house origination
—
—
—
—
$ Retail brokered origination(2)
$
87,456
$
74,517
$
267,917
$
196,714
$ Wholesale reverse origination
$
1,290
$
8,948
$
36,841
$
—
Total originations
$
3,624,047
$
4,347,306
$
15,263,828
$
19,319,913
Gain on sale margin (bps)(3)
330
377
340
368
Pull-through adjusted locked volume(4)
$
3,275,367
$
4,067,137
$
15,223,182
$
20,272,208
Gain on sale margin on pull-through
adjusted locked volume (bps)(5)
347
389
329
347
Purchase recapture rate(6)
25%
25%
28%
34%
Refinance recapture rate(7)
19%
22%
25%
43%
Purchase origination %
93%
94%
93%
81%
Servicing Data
UPB (period end)(8)
$
85,033,899
$
83,705,731
$
85,033,899
$
78,892,987
_________________
(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.
(4)
Pull-through adjusted locked volume is
equal to total locked volume, which excludes reverse loans,
multiplied by pull-through rates of 86.5%, 84.3% and 93.4% as of
December 31, 2023, September 30, 2023, and December 31, 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.
(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 $295.7
million and $73.7 million as of December 31, 2023 and September 30,
2023, respectively.
GAAP to Non-GAAP Reconciliations
Reconciliation of Net (Loss)
Income to Adjusted Net Income
(unaudited)
Three Months Ended
Year Ended December
31,
(in millions, except per share
amounts)
Dec 31, 2023
Sep 30, 2023
2023
2022
Net (loss) income attributable to
Guild
$
(93.0
)
$
54.2
$
(39.0
)
$
328.6
Add adjustments:
Change in fair value of MSRs due to model
inputs and assumption
122.3
(38.2
)
84.0
(300.9
)
Change in fair value of contingent
liabilities and notes receivable due to acquisitions, net
1.2
(0.4
)
2.1
(45.1
)
Amortization of acquired intangible
assets
2.0
2.0
8.0
8.0
Stock-based compensation
2.2
2.3
8.7
7.3
Tax impact of adjustments(1)
(22.1
)
9.0
(15.6
)
72.1
Adjusted Net Income
$
12.5
$
29.0
$
48.0
$
70.0
Weighted average shares outstanding of
Class A and Class B Common Stock:
Basic
61.0
61.0
61.0
61.0
Diluted
61.0
61.9
61.0
61.4
Adjusted Diluted(2)
61.8
61.9
61.7
61.4
(Loss) earnings per share—Basic
$
(1.52
)
$
0.89
$
(0.64
)
$
5.39
(Loss) earnings per share—Diluted
$
(1.52
)
$
0.88
$
(0.64
)
$
5.35
Adjusted Earnings Per Share—Basic
$
0.21
$
0.48
$
0.79
$
1.15
Adjusted Earnings Per Share—Diluted
$
0.20
$
0.47
$
0.78
$
1.14
_________________ Amounts may not foot due to rounding
(1)
Estimated effective tax rate used was
17.3%, 26.3%, 15.2% and 21.8% for the three month periods ended
December 31, 2023 and September 30, 2023 and the year ended
December 31, 2023 and 2022, respectively.
(2)
Adjusted diluted weighted average shares
outstanding of Class A and Class B Common Stock for the three
months and year ended December 31, 2023 includes 0.7 million
potential shares of Class A common stock related to unvested RSUs
that were excluded from the calculation of GAAP diluted loss per
share because they were anti-dilutive. There were no adjustments
for the three months ended September 30, 2023 and for the year
ended December 31, 2022.
Reconciliation of Net (Loss) Income to Adjusted EBITDA
(unaudited)
Three Months Ended
Year Ended December
31,
(in millions)
Dec 31, 2023
Sep 30, 2023
2023
2022
Net (loss) income
$
(93.1
)
$
54.2
$
(39.1
)
$
328.6
Add adjustments:
Interest expense on non-funding debt
3.2
3.0
11.6
6.7
Income tax (benefit) expense
(26.2
)
19.3
(7.0
)
91.4
Depreciation and amortization
3.5
3.7
14.6
15.5
Change in fair value of MSRs due to model
inputs and assumptions
122.3
(38.2
)
84.0
(300.9
)
Change in fair value of contingent
liabilities and notes receivable due to acquisitions, net
1.2
(0.4
)
2.1
(45.1
)
Stock-based compensation
2.2
2.3
8.7
7.3
Adjusted EBITDA
$
13.2
$
43.9
$
74.8
$
103.5
Reconciliation of Return on
Equity to Adjusted Return on Equity
(unaudited)
Three Months Ended
Year Ended December
31,
($ in millions)
Dec 31, 2023
Sep 30, 2023
2023
2022
Income Statement Data:
Net (loss) income attributable to
Guild
$
(93.0
)
$
54.2
$
(39.0
)
$
328.6
Adjusted Net Income
$
12.5
$
29.0
$
48.0
$
70.0
Average stockholders’ equity
$
1,230.2
$
1,264.2
$
1,216.4
$
1,084.7
Return on equity
(30.2
%)
17.2
%
(3.2
%)
30.3
%
Adjusted Return on Equity
4.1
%
9.2
%
3.9
%
6.4
%
Reconciliation of Book Value
Per Share to Tangible Net Book Value Per Share
(unaudited)
(in millions, except per share
amounts)
December 31, 2023
December 31, 2022
Total stockholders' equity
$
1,183.5
$
1,249.3
Less: non-controlling interests
0.3
0.1
Total stockholders' equity attributable to
Guild
$
1,183.2
$
1,249.2
Adjustments:
Intangible assets, net
(25.1
)
(33.1
)
Goodwill
(186.2
)
(176.8
)
Tangible common equity
$
971.9
$
1,039.4
Ending shares of Class A and Class B
common stock outstanding
61.1
60.9
Book value per share
$
19.36
$
20.51
Tangible Net Book Value Per Share(1)
$
15.90
$
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/20240312055102/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)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Guild (NYSE:GHLD)
Storico
Da Feb 2024 a Feb 2025
