Guild Holdings Company Reports Fourth Quarter and Full Year 2024 Results
-- Originations of $24.0 Billion in 2024, Including $6.7 Billion in Fourth
Quarter
-- Net Revenue of $1.0 Billion in 2024, Including $373.0 Million in Fourth
Quarter
-- Net Income Attributable to Guild of $97.1 Million in 2024, Including
$97.9 Million in Fourth Quarter
-- Adjusted Net Income of $90.2 Million in 2024, Including $19.7 Million in
Fourth Quarter
-- Return on Average Equity of 8.0% and Adjusted Return on Average Equity of
7.4% in 2024
-- Gain on Sale Margin on Originations of 317 bps in the Fourth Quarter
-- 82% of Originations were Purchase Originations in the Fourth Quarter
-- Special Dividend of $0.50 per Share Declared by Board of Directors
Payable March 31, 2025 and Extended Share Repurchase Program
SAN DIEGO--(BUSINESS WIRE)--March 06, 2025--
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, 2024.
"We delivered exceptional growth and strong results in 2024 that demonstrated the disciplined execution of our strategy to grow market share as we continue to realize the benefits of our balanced business model," stated Terry Schmidt, Guild Chief Executive Officer. "Our team created positive momentum throughout the year as we increased our total originations by 57% over the prior year enabling us to deliver strong earnings and return on equity. Our focus on the purchase market, with a community-focused, customer-for-life approach, combined with our strategy of retaining servicing rights, allowed us to generate consistent cash flow growth, even in the current rate environment. We are particularly pleased with our organic recruiting efforts, as our brand strength and integrated platforms continue to attract top-producing loan officers. Our performance demonstrates our proven approach of investing through market downturns to position Guild for long term growth."
Fourth Quarter Total originations of $6.7 billion compared to $3.6 billion
2024 in fourth quarter 2023 and $6.9 billion in third quarter
Highlights 2024
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Originated 82% of closed loan origination volume from
purchase business, compared to the Mortgage Bankers
Association industry estimate of 62% for the same period
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Net revenue of $373.0 million compared to $57.2 million in
the fourth quarter 2023 and $159.3 million in third quarter
2024
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Net income attributable to Guild of $97.9 million compared
to net loss of $93.0 million in fourth quarter 2023 and net
loss of $66.9 million in third quarter 2024
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Servicing portfolio unpaid principal balance of $93.0
billion as of December 31, 2024, compared to $85.0 billion
as of December 31, 2023 and $91.5 billion as of September
30, 2024
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Adjusted net income and adjusted EBITDA totaled $19.7
million and $30.9 million, respectively, compared to $12.5
million and $13.2 million, respectively, in fourth quarter
2023 and $31.7 million and $46.4 million, respectively, in
third quarter 2024
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Return on average equity of 32.5% and adjusted return on
average equity of 6.5%, compared to (30.2)% and 4.1%,
respectively, in fourth quarter 2023 and (22.5%) and 10.6%,
respectively, in third quarter 2024
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Full Year Total originations of $24.0 billion, up 57% from $15.3 billion
2024 in the prior year
Highlights
----------- ---------------------------------------------------------------
Originated 88% of closed loan origination volume from purchase
business, compared to the Mortgage Bankers Association estimate
of 72% for the same period
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Net revenue of $1.0 billion compared to $655.2 million in the
prior year
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Net income attributable to Guild of $97.1 million compared to
net loss of $39.0 million in the prior year
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Servicing portfolio unpaid principal balance of $93.0 billion
as of December 31, 2024, up 9% compared to $85.0 billion as of
December 31, 2023
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Adjusted net income and adjusted EBITDA totaled $90.2 million
and $134.8 million, respectively, compared to $48.0 million and
$74.8 million, respectively, in the prior year
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Return on average equity of 8.0% and adjusted return on average
equity of 7.4%, compared to (3.2%) and 3.9%, respectively, in
the prior year
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Fourth Quarter and Full Year Summary
Please refer to "Key Performance Indicators" and "GAAP to Non-GAAP Reconciliations" elsewhere in this release for a description of the key performance indicators and definitions of the non-GAAP measures and reconciliations to the nearest comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP").
($ amounts in millions, except per share amounts) 4Q'24 3Q'24 4Q'23 YTD'24 YTD'23 Total originations $6,746.4 $6,905.5 $3,624.3 $24,030.4 $15,263.8 Gain on sale margin on originations (bps) 317 333 330 332 340 Gain on sale margin on pull-through adjusted locked volume (bps) 360 321 347 321 329 UPB of servicing portfolio (period end) $92,998.9 $91,485.2 $85,033.9 $92,998.9 $85,033.9 Net revenue $373.0 $159.3 $57.2 $1,049.7 $655.2 Total expenses $244.2 $252.1 $176.5 $930.7 $701.3 Net income (loss) attributable to Guild $97.9 ($66.9) ($93.0) $97.1 ($39.0) Return on average equity 32.5% (22.5%) (30.2%) 8.0% (3.2%) Adjusted net income $19.7 $31.7 $12.5 $90.2 $48.0 Adjusted EBITDA $30.9 $46.4 $13.2 $134.8 $74.8 Adjusted return on average equity 6.5 % 10.6 % 4.1 % 7.4 % 3.9 % Earnings (loss) per share--Basic $1.59 ($1.09) ($1.52) $1.58 ($0.64) Earnings (loss) per share--Diluted $1.57 ($1.09) ($1.52) $1.56 ($0.64) Adjusted earnings per share--Basic $0.32 $0.52 $0.21 $1.47 $0.79 Adjusted earnings per share--Diluted $0.32 $0.51 $0.20 $1.45 $0.78 ----------------------- --------- --------- --------- --------- ---------
Origination Segment Results
Origination segment net income was $0.8 million in fourth quarter 2024 compared to net loss of $26.8 million in fourth quarter 2023 and $6.4 million in third quarter 2024. The year over year increase reflects Guild's growth over the past year, while the sequential decline is primarily driven by lower origination volumes, primarily due to seasonality, as well as lower gain on sale margins. Gain on sale margins on originations decreased 13 bps year-over-year and 16 bps quarter-over-quarter to 317 bps. Gain on sale margins on pull-through adjusted locked volume increased 13 bps year-over-year and 39 bps quarter-over-quarter to 360 bps and total pull-through adjusted locked volume was $5.7 billion compared to $3.3 billion in fourth quarter 2023 and $6.9 billion in third quarter 2024.
($ amounts in millions) 4Q'24 3Q'24 4Q'23 YTD'24 YTD'23 Total originations $6,746.4 $6,905.5 $3,624.3 $24,030.4 $15,263.8 Total origination units (000's) 19.6 20.1 11.5 70.9 47.2 Net revenue $209.7 $224.1 $119.2 $780.5 $516.4 Total expenses $208.9 $217.7 $146.0 $800.5 $590.0 Net income (loss) allocated to origination $0.8 $6.4 ($26.8) ($20.0) ($73.7) -------------------------- -------- -------- -------- --------- ---------
Servicing Segment Results
Servicing segment net income was $152.4 million in the fourth quarter 2024 compared to net loss of $72.1 million in fourth quarter 2023 and net loss of $74.6 million in third quarter 2024. The Company retained mortgage servicing rights ("MSRs") for 64% of total loans sold in the fourth quarter 2024.
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