Guild Holdings Company Reports Second Quarter 2023 Results
-
Originations of
$4.5 Billion $7.2 Billion -
Net Revenue of
$236.8 Million $340.7 Million -
Net Income of
$36.9 Million $0.3 Million -
Adjusted Net Income of
$9.0 Million $6.4 Million -
Return on Equity of
12.0% and Adjusted Return on Equity of2.9% in Second Quarter - Gain on Sale Margin on Originations of 310 bps in Second Quarter
-
Purchase Recapture Rate of
27% in the Second Quarter -
94% of Originations were Purchase Originations in the Second Quarter -
Declares Special Cash Dividend of
$0.50
“We continue to effectively execute on our differentiated strategy to gain market share through both organic growth and selective acquisitions. While broader industry challenges persist due to higher interest rates and limited home inventory, we believe Guild is well-positioned given our focus on the purchase mortgage market, innovative new products to meet the needs of even more buyers, and our growing network of loan officers with deep relationships,” stated Terry Schmidt, Chief Executive Officer. “We are pleased with the contributions from our recent acquisitions and believe we will realize additional benefits and further our retail reach as they are fully integrated. We have prioritized maintaining a strong balance sheet and liquidity position, which supports our ongoing pursuit of additional external growth opportunities. We cannot control the economic environment, however we will continue to leverage our proven business and aim to further increase market share and to accelerate growth as the markets normalize.”
Second Quarter 2023 Highlights |
|
Total in-house originations of |
|
Originated |
|
|
Net revenue of |
|
|
Net income of |
|
|
Servicing portfolio unpaid principal balance of |
|
|
Adjusted net income and adjusted EBITDA totaled |
|
|
Return on equity of |
Year-To-Date 2023 Highlights |
|
Total in-house originations of |
|
Originated |
|
|
Net revenue of |
|
|
Net loss of |
|
|
Servicing portfolio unpaid principal balance of |
|
|
Adjusted net income and adjusted EBITDA totaled |
|
|
Return on equity of |
Other Highlights Subsequent to Quarter End
On August 2, 2023, the board of directors of Guild declared a special cash dividend of
Second 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
($ amounts in millions, except per share amounts) |
2Q’23 |
1Q’23 |
%∆ |
YTD’23 |
YTD’22 |
%∆ |
||||||||||
Total in-house originations |
$ |
4,458.5 |
|
$ |
2,701.4 |
|
65 |
% |
$ |
7,159.9 |
|
$ |
11,783.5 |
|
(39 |
)% |
Gain on sale margin on originations (bps) |
|
310 |
|
|
343 |
|
(10 |
)% |
|
323 |
|
|
382 |
|
(15 |
)% |
Gain on sale margin on pull-through adjusted locked volume (bps) |
|
314 |
|
|
284 |
|
11 |
% |
|
299 |
|
|
347 |
|
(14 |
)% |
UPB of servicing portfolio (period end) |
$ |
82,030.4 |
|
$ |
79,916.6 |
|
3 |
% |
$ |
82,030.4 |
|
$ |
75,856.6 |
|
8 |
% |
Net revenue |
$ |
236.8 |
|
$ |
103.9 |
|
128 |
% |
$ |
340.7 |
|
$ |
769.3 |
|
(56 |
)% |
Total expenses |
$ |
186.4 |
|
$ |
154.7 |
|
20 |
% |
$ |
341.1 |
|
$ |
412.7 |
|
(17 |
)% |
Net income (loss) |
$ |
36.9 |
|
$ |
(37.2 |
) |
199 |
% |
$ |
(0.3 |
) |
$ |
266.3 |
|
(100 |
)% |
Return on equity |
|
12.0 |
% |
|
(12.1 |
)% |
199 |
% |
|
— |
% |
|
50.5 |
% |
(100 |
)% |
Adjusted net income (loss) |
$ |
9.0 |
|
$ |
(2.5 |
) |
463 |
% |
$ |
6.4 |
|
$ |
46.0 |
|
(86 |
)% |
Adjusted EBITDA |
$ |
16.5 |
|
$ |
1.1 |
|
NM |
|
$ |
17.7 |
|
$ |
68.6 |
|
(74 |
)% |
Adjusted return on equity |
|
2.9 |
% |
|
(0.8 |
)% |
463 |
% |
|
1.0 |
% |
|
8.7 |
% |
(88 |
)% |
Earnings (loss) per share |
$ |
0.61 |
|
$ |
(0.61 |
) |
199 |
% |
$ |
— |
|
$ |
4.36 |
|
(100 |
)% |
Diluted earnings (loss) per share |
$ |
0.60 |
|
$ |
(0.61 |
) |
198 |
% |
$ |
— |
|
$ |
4.31 |
|
(100 |
)% |
Adjusted earnings (loss) per share |
$ |
0.15 |
|
$ |
(0.04 |
) |
463 |
% |
$ |
0.10 |
|
$ |
0.75 |
|
(86 |
)% |
Origination Segment Results
Origination segment net loss was
($ amounts in millions) |
2Q’23 |
1Q’23 |
%∆ |
YTD’23 |
YTD’22 |
%∆ |
|||||||||
Total in-house originations |
$ |
4,458.5 |
|
$ |
2,701.4 |
|
65 |
% |
$ |
7,159.9 |
|
$ |
11,783.5 |
(39 |
)% |
In-house originations # (000’s) |
|
13 |
|
|
9 |
|
44 |
% |
|
22 |
|
|
37 |
(41 |
)% |
Net revenue |
$ |
140.3 |
|
$ |
93.6 |
|
50 |
% |
$ |
233.9 |
|
$ |
457.7 |
(49 |
)% |
Total expenses |
$ |
161.6 |
|
$ |
126.3 |
|
28 |
% |
$ |
288.0 |
|
$ |
368.7 |
(22 |
)% |
Net (loss) income allocated to origination |
$ |
(21.3 |
) |
$ |
(32.8 |
) |
(35 |
)% |
$ |
(54.1 |
) |
$ |
89.1 |
(161 |
)% |
Servicing Segment Results
Servicing segment net income was
Net revenue totaled
($ amounts in millions) |
2Q’23 |
1Q’23 |
%∆ |
YTD’23 |
YTD’22 |
%∆ |
||||||||
UPB of servicing portfolio (period end) |
$ |
82,030.4 |
$ |
79,916.6 |
|
3 |
% |
$ |
82,030.4 |
|
$ |
75,856.6 |
8 |
% |
# Loans serviced (000’s) (period end) |
|
335 |
|
328 |
|
2 |
% |
|
335 |
|
|
314 |
7 |
% |
Loan servicing and other fees |
$ |
60.2 |
$ |
60.1 |
|
— |
% |
$ |
120.3 |
|
$ |
107.8 |
12 |
% |
Valuation adjustment of MSRs |
$ |
27.9 |
$ |
(54.9 |
) |
151 |
% |
$ |
(27.0 |
) |
$ |
205.7 |
(113 |
)% |
Net revenue |
$ |
98.9 |
$ |
13.1 |
|
658 |
% |
$ |
111.9 |
|
$ |
314.5 |
(64 |
)% |
Total expenses |
$ |
10.1 |
$ |
13.4 |
|
(24 |
)% |
$ |
23.5 |
|
$ |
23.9 |
(2 |
)% |
Net income (loss) allocated to servicing |
$ |
88.7 |
$ |
(0.3 |
) |
NM |
|
$ |
88.4 |
|
$ |
290.7 |
(70 |
)% |
Share Repurchase Program
During the three months ended June 30, 2023, the Company repurchased and subsequently retired 51,588 shares of its Class A common stock at an average purchase price of
Balance Sheet and Liquidity Highlights
The Company’s operating cash position was
(in millions) |
June 30,
|
December 31,
|
||
Cash and cash equivalents |
$ |
106.0 |
$ |
137.9 |
Mortgage servicing rights, net |
$ |
1,184.5 |
$ |
1,139.5 |
Warehouse lines of credit |
$ |
1,053.1 |
$ |
713.2 |
Notes payable |
$ |
123.8 |
$ |
126.3 |
Total stockholders’ equity |
$ |
1,251.5 |
$ |
1,249.3 |
|
|
|
||
Tangible net book value per share(1) |
$ |
17.01 |
$ |
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 Thursday, August 3, 2023 at 5:00 p.m. Eastern Time to discuss the Company’s results for the second quarter ended June 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:
- 1-877-407-0789 (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 August 17, 2023. The replay is also available by dialing 1-844-512-2921 (
About Guild Holdings Company
Founded in 1960 when the modern
Forward-Looking Statements
This press release contains forward-looking statements, including statements about the Company’s expectations for gaining market share, 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
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 (Loss). We define Adjusted Net Income (Loss) as earnings attributable to Guild before the change in the fair value measurements related to our MSRs, contingent liabilities and notes 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 (Loss) 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 (Loss) 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 interest exclusive of any change in the fair value measurements of the MSRs due to valuation assumptions, contingent liabilities from business acquisitions 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, 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, 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) |
June 30,
|
|
December 31,
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
105,963 |
|
$ |
137,891 |
Restricted cash |
|
5,868 |
|
|
8,863 |
Mortgage loans held for sale |
|
1,125,992 |
|
|
845,775 |
Reverse mortgage loans held for investment |
|
36,709 |
|
|
— |
Ginnie Mae loans subject to repurchase right |
|
598,634 |
|
|
650,179 |
Accounts, notes and interest receivable |
|
65,035 |
|
|
58,304 |
Derivative assets |
|
13,702 |
|
|
3,120 |
Mortgage servicing rights, net |
|
1,184,503 |
|
|
1,139,539 |
Intangible assets, net |
|
29,100 |
|
|
33,075 |
Goodwill |
|
184,894 |
|
|
176,769 |
Other assets |
|
182,239 |
|
|
186,076 |
Total assets |
$ |
3,532,639 |
|
$ |
3,239,591 |
Liabilities and stockholders’ equity |
|
|
|
||
Warehouse lines of credit |
$ |
1,053,060 |
|
$ |
713,151 |
Notes payable |
|
123,750 |
|
|
126,250 |
Ginnie Mae loans subject to repurchase right |
|
598,879 |
|
|
650,179 |
Accounts payable and accrued expenses |
|
33,629 |
|
|
34,095 |
Accrued compensation and benefits |
|
34,251 |
|
|
29,597 |
Investor reserves |
|
18,364 |
|
|
16,094 |
Contingent liabilities due to acquisitions |
|
7,793 |
|
|
526 |
Derivative liabilities |
|
— |
|
|
5,173 |
Operating lease liabilities |
|
83,759 |
|
|
85,977 |
Note due to related party |
|
— |
|
|
530 |
Deferred compensation plan |
|
94,873 |
|
|
95,769 |
Deferred tax liabilities |
|
232,816 |
|
|
232,963 |
Total liabilities |
|
2,281,174 |
|
|
1,990,304 |
Commitments and contingencies |
|
|
|
||
Stockholders’ equity |
|
|
|
||
Preferred stock, |
|
— |
|
|
— |
Class A common stock, |
|
206 |
|
|
206 |
Class B common stock, |
|
403 |
|
|
403 |
Additional paid-in capital |
|
45,141 |
|
|
42,727 |
Retained earnings |
|
1,205,654 |
|
|
1,205,885 |
Non-controlling interest |
|
61 |
|
|
66 |
Total stockholders' equity |
|
1,251,465 |
|
|
1,249,287 |
Total liabilities and stockholders’ equity |
$ |
3,532,639 |
|
$ |
3,239,591 |
Condensed Consolidated Statements of Income (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended
|
||||||||||||
(in thousands, except per share amounts) |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
|
2023 |
|
|
|
2022 |
|
||||
Revenue |
|
|
|
|
|
|
|
||||||||
Loan origination fees and gain on sale of loans, net |
$ |
136,925 |
|
|
$ |
92,651 |
|
|
$ |
229,576 |
|
|
$ |
450,611 |
|
Gain on reverse mortgage loans held for investment |
|
2,306 |
|
|
|
— |
|
|
|
2,306 |
|
|
|
— |
|
Loan servicing and other fees |
|
60,211 |
|
|
|
60,087 |
|
|
|
120,298 |
|
|
|
107,772 |
|
Valuation adjustment of mortgage servicing rights |
|
27,890 |
|
|
|
(54,871 |
) |
|
|
(26,981 |
) |
|
|
205,675 |
|
Interest income |
|
26,584 |
|
|
|
18,245 |
|
|
|
44,829 |
|
|
|
30,086 |
|
Interest expense |
|
(17,329 |
) |
|
|
(12,262 |
) |
|
|
(29,591 |
) |
|
|
(25,087 |
) |
Other income, net |
|
224 |
|
|
|
35 |
|
|
|
259 |
|
|
|
242 |
|
Net revenue |
|
236,811 |
|
|
|
103,885 |
|
|
|
340,696 |
|
|
|
769,299 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Salaries, incentive compensation and benefits |
|
144,903 |
|
|
|
111,120 |
|
|
|
256,023 |
|
|
|
365,521 |
|
General and administrative |
|
20,448 |
|
|
|
20,883 |
|
|
|
41,331 |
|
|
|
741 |
|
Occupancy, equipment and communication |
|
18,402 |
|
|
|
17,430 |
|
|
|
35,832 |
|
|
|
37,285 |
|
Depreciation and amortization |
|
3,661 |
|
|
|
3,738 |
|
|
|
7,399 |
|
|
|
7,721 |
|
Provision for foreclosure losses |
|
(1,044 |
) |
|
|
1,514 |
|
|
|
470 |
|
|
|
1,475 |
|
Total expenses |
|
186,370 |
|
|
|
154,685 |
|
|
|
341,055 |
|
|
|
412,743 |
|
Income (loss) before income tax expense (benefit) |
|
50,441 |
|
|
|
(50,800 |
) |
|
|
(359 |
) |
|
|
356,556 |
|
Income tax expense (benefit) |
|
13,505 |
|
|
|
(13,605 |
) |
|
|
(100 |
) |
|
|
90,294 |
|
Net income (loss) |
|
36,936 |
|
|
|
(37,195 |
) |
|
|
(259 |
) |
|
|
266,262 |
|
Net income (loss) income attributable to non-controlling interest |
|
— |
|
|
|
(5 |
) |
|
|
(5 |
) |
|
|
32 |
|
Net income (loss) attributable to Guild |
$ |
36,936 |
|
|
$ |
(37,190 |
) |
|
$ |
(254 |
) |
|
$ |
266,230 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.61 |
|
|
$ |
(0.61 |
) |
|
$ |
— |
|
|
$ |
4.36 |
|
Diluted |
$ |
0.60 |
|
|
$ |
(0.61 |
) |
|
$ |
— |
|
|
$ |
4.31 |
|
Weighted average shares outstanding of Class A and Class B Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
|
60,962 |
|
|
|
60,900 |
|
|
|
60,931 |
|
|
|
61,060 |
|
Diluted |
|
61,801 |
|
|
|
60,900 |
|
|
|
60,931 |
|
|
|
61,779 |
|
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 |
|
Six Months Ended June 30, |
||||||||||||
($ and units in thousands) |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
|
2023 |
|
|
|
2022 |
|
||||
Origination Data |
|
|
|
|
|
|
|
||||||||
$ Total in-house origination(1) |
$ |
4,458,502 |
|
|
$ |
2,701,426 |
|
|
$ |
7,159,928 |
|
|
$ |
11,783,484 |
|
# Total in-house origination |
|
13 |
|
|
|
9 |
|
|
|
22 |
|
|
|
37 |
|
$ Retail forward in-house origination |
$ |
4,125,328 |
|
|
$ |
2,558,801 |
|
|
$ |
6,684,129 |
|
|
$ |
11,318,089 |
|
# Retail forward in-house origination |
|
12 |
|
|
|
8 |
|
|
|
20 |
|
|
|
35 |
|
$ Retail reverse in-house origination |
$ |
7,858 |
|
|
$ |
— |
|
|
$ |
7,858 |
|
|
$ |
— |
|
# Retail reverse in-house origination |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
$ Retail brokered origination(2) |
$ |
64,240 |
|
|
$ |
41,704 |
|
|
$ |
105,944 |
|
|
$ |
118,370 |
|
$ Wholesale reverse origination |
$ |
26,603 |
|
|
$ |
— |
|
|
$ |
26,603 |
|
|
$ |
— |
|
Total originations |
$ |
4,549,345 |
|
|
$ |
2,743,130 |
|
|
$ |
7,292,475 |
|
|
$ |
11,901,854 |
|
Gain on sale margin (bps)(3) |
|
310 |
|
|
|
343 |
|
|
|
323 |
|
|
|
382 |
|
Pull-through adjusted locked volume(4) |
$ |
4,362,354 |
|
|
$ |
3,258,998 |
|
|
$ |
7,675,669 |
|
|
$ |
12,997,291 |
|
Gain on sale margin on pull-through adjusted locked volume (bps)(5) |
|
314 |
|
|
|
284 |
|
|
|
299 |
|
|
|
347 |
|
Purchase recapture rate(6) |
|
27 |
% |
|
|
24 |
% |
|
|
28 |
% |
|
|
31 |
% |
Refinance recapture rate(7) |
|
22 |
% |
|
|
30 |
% |
|
|
26 |
% |
|
|
50 |
% |
Purchase origination % |
|
94 |
% |
|
|
92 |
% |
|
|
93 |
% |
|
|
75 |
% |
Servicing Data |
|
|
|
|
|
|
|
||||||||
UPB (period end)(8) |
$ |
82,030,408 |
|
|
$ |
79,916,577 |
|
|
$ |
82,030,408 |
|
|
$ |
75,856,564 |
|
| _______________________ | |
(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, including the fair value adjustment of reverse mortgage loans, 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 |
(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 subserviced portfolio of |
GAAP to Non-GAAP Reconciliations Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended June 30, |
||||||||||||
(in millions, except per share amounts) |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
|
2023 |
|
|
|
2022 |
|
||||
Net income (loss) |
$ |
36.9 |
|
|
$ |
(37.2 |
) |
|
$ |
(0.3 |
) |
|
$ |
266.3 |
|
Net income (loss) attributable to non-controlling interest(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income (loss) attributable to Guild |
$ |
36.9 |
|
|
$ |
(37.2 |
) |
|
$ |
(0.3 |
) |
|
$ |
266.2 |
|
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Change in fair value of MSRs due to model inputs and assumption |
|
(43.8 |
) |
|
|
43.7 |
|
|
|
(0.1 |
) |
|
|
(256.4 |
) |
Change in fair value of contingent liabilities, net due to acquisitions |
|
1.3 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
(45.4 |
) |
Amortization of acquired intangible assets |
|
2.0 |
|
|
|
2.0 |
|
|
|
4.0 |
|
|
|
4.0 |
|
Stock-based compensation |
|
2.3 |
|
|
|
1.8 |
|
|
|
4.1 |
|
|
|
3.0 |
|
Tax impact of adjustments(2) |
|
10.2 |
|
|
|
(12.7 |
) |
|
|
(2.6 |
) |
|
|
74.6 |
|
Adjusted Net Income (Loss) |
$ |
9.0 |
|
|
$ |
(2.5 |
) |
|
$ |
6.4 |
|
|
$ |
46.0 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding of Class A and Class B Common Stock |
|
61 |
|
|
|
61 |
|
|
|
61 |
|
|
|
61 |
|
Earnings (loss) per share |
$ |
0.61 |
|
|
$ |
(0.61 |
) |
|
$ |
— |
|
|
$ |
4.36 |
|
Adjusted earnings (loss) per share |
$ |
0.15 |
|
|
$ |
(0.04 |
) |
|
$ |
0.10 |
|
|
$ |
0.75 |
|
_________________________
|
|
(1) |
Net income (loss) attributable to non-controlling interest was |
(2) |
Estimated effective tax rate used was |
Reconciliation of Net Income (Loss) to Adjusted EBITDA (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended
|
||||||||||||
(in millions) |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
|
2023 |
|
|
|
2022 |
|
||||
Net income (loss) |
$ |
36.9 |
|
|
$ |
(37.2 |
) |
|
$ |
(0.3 |
) |
|
$ |
266.3 |
|
Add adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense on non-funding debt |
|
2.6 |
|
|
|
2.8 |
|
|
|
5.4 |
|
|
|
3.2 |
|
Income tax expense (benefit) |
|
13.5 |
|
|
|
(13.6 |
) |
|
|
(0.1 |
) |
|
|
90.3 |
|
Depreciation and amortization |
|
3.7 |
|
|
|
3.7 |
|
|
|
7.4 |
|
|
|
7.7 |
|
Change in fair value of MSRs due to model inputs and assumptions |
|
(43.8 |
) |
|
|
43.7 |
|
|
|
(0.1 |
) |
|
|
(256.4 |
) |
Change in fair value of contingent liabilities, net due to acquisitions |
|
1.3 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
(45.4 |
) |
Stock-based compensation |
|
2.3 |
|
|
|
1.8 |
|
|
|
4.1 |
|
|
|
3.0 |
|
Adjusted EBITDA |
$ |
16.5 |
|
|
$ |
1.1 |
|
|
$ |
17.7 |
|
|
$ |
68.6 |
|
Reconciliation of Return on Equity to Adjusted Return on Equity (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended
|
||||||||||||
($ in millions) |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
|
2023 |
|
|
|
2022 |
|
||||
Income Statement Data: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Guild |
$ |
36.9 |
|
|
$ |
(37.2 |
) |
|
$ |
(0.3 |
) |
|
$ |
266.2 |
|
Adjusted net income (loss) |
$ |
9.0 |
|
|
$ |
(2.5 |
) |
|
$ |
6.4 |
|
|
$ |
46.0 |
|
|
|
|
|
|
|
|
|
||||||||
Average stockholders’ equity |
$ |
1,232.4 |
|
|
$ |
1,231.3 |
|
|
$ |
1,250.4 |
|
|
$ |
1,053.9 |
|
Return on Equity |
|
12.0 |
% |
|
|
(12.1 |
)% |
|
|
— |
% |
|
|
50.5 |
% |
Adjusted Return on Equity |
|
2.9 |
% |
|
|
(0.8 |
)% |
|
|
1.0 |
% |
|
|
8.7 |
% |
Reconciliation of Book Value Per Share to Tangible Net Book Value Per Share (unaudited) |
|||||||
(in millions, except per share amounts) |
June 30, 2023 |
|
December 31, 2022 |
||||
Total stockholders' equity |
$ |
1,251.5 |
|
|
$ |
1,249.3 |
|
Adjustments: |
|
|
|
||||
Intangible assets, net |
|
(29.1 |
) |
|
|
(33.1 |
) |
Goodwill |
|
(184.9 |
) |
|
|
(176.8 |
) |
Tangible common equity |
$ |
1,037.5 |
|
|
$ |
1,039.4 |
|
|
|
|
|
||||
Ending shares of Class A and Class B common stock outstanding |
|
61 |
|
|
|
61 |
|
|
|
|
|
||||
Book value per share |
$ |
20.52 |
|
|
$ |
20.51 |
|
Tangible net book value per share(1) |
$ |
17.01 |
|
|
$ |
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/20230803259751/en/
Investors:
investors@guildmortgage.net
858-956-5130
Media:
Melissa Rue
Nuffer, Smith, Tucker
mkr@nstpr.com
619-296-0605 Ext. 247
Source: Guild Holdings Company
