Guild Holdings Company (GHLD) Bundle
A Brief History of Guild Holdings Company
Guild Holdings Company has undergone significant transformations since its inception, evolving into a prominent player in the mortgage industry. As of 2024, the company has made substantial strides in loan origination and servicing segments.
Financial Performance Overview
For the nine months ended September 30, 2024, Guild originated $17.3 billion in mortgage loans, a remarkable increase of 48.5% compared to $11.6 billion for the same period in 2023. The loan origination volumes reflect the company's strategic focus on expanding its market share amidst fluctuating economic conditions.
Guild's total loans sold for the same period reached $16.0 billion, compared to $11.4 billion in 2023, marking a 40.8% increase in sales volume.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Total Originations | $17.3 billion | $11.6 billion | 48.5% |
| Total Loans Sold | $16.0 billion | $11.4 billion | 40.8% |
| Adjusted Net Income | $70.4 million | $35.5 million | 98.6% |
| Adjusted EBITDA | $103.9 million | $61.6 million | 68.5% |
Loan Servicing Portfolio
As of September 30, 2024, Guild's servicing portfolio reached $91.5 billion in unpaid principal balance (UPB), up from $83.7 billion the previous year, marking a 9.3% increase. The average UPB also increased by 8.6% year-over-year.
| Metric | 2024 (September 30) | 2023 (September 30) | % Change |
|---|---|---|---|
| Ending UPB of Servicing Portfolio | $91.5 billion | $83.7 billion | 9.3% |
| Average UPB of Servicing Portfolio | $88.3 billion | $81.3 billion | 8.6% |
| Weighted Average Servicing Fee | 0.32% | 0.30% | 6.7% |
| Loan Delinquency Rate (60+ days) | 1.7% | 1.6% | 6.3% |
Cash Flow Performance
For the nine months ended September 30, 2024, Guild reported net cash used in operating activities of $(861.7 million), significantly higher than $(110.7 million) in the prior year. This increase is attributed to a higher volume of loans held for sale, which resulted in cash outflows exceeding inflows.
| Cash Flow Category | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(861.7 million) | $(110.7 million) |
| Net Cash Used in Investing Activities | $(115.6 million) | $(105.8 million) |
| Net Cash Provided by Financing Activities | $961.7 million | $187.6 million |
Market Trends and Economic Context
The mortgage market has faced challenges due to fluctuating interest rates, with the Federal Reserve pausing its rate hikes in 2024. The average 30-year mortgage interest rate decreased by 50 basis points during the third quarter, encouraging refinancing activity.
Guild's ability to adapt to market conditions is evident in its increased refinancing recapture rates, which reached 41% in the third quarter of 2024, up from 22% in the second quarter.
Strategic Acquisitions
In 2024, Guild expanded its market presence through strategic acquisitions, investing approximately $25 million to acquire assets from four mortgage lenders.
A Who Owns Guild Holdings Company (GHLD)
Ownership Structure
Guild Holdings Company (GHLD) has two classes of common stock: Class A and Class B. The Class A common stock is publicly traded on the New York Stock Exchange, while Class B common stock does not have a public market but can be converted into Class A shares at any time.
| Ownership Class | Shares Issued | Voting Power | Market Type |
|---|---|---|---|
| Class A | 21,051,820 | 1 vote per share | Public |
| Class B | 40,333,019 | 10 votes per share | Private |
Major Shareholders
The largest shareholders of Guild Holdings include institutional and retail investors, along with insiders holding significant shares. As of March 2024, the following data reflects the major shareholders:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Insider Holdings | 5,000,000 | 23.8% |
| Institutional Investors | 10,000,000 | 47.5% |
| Retail Investors | 6,000,000 | 28.7% |
Stock Performance and Market Capitalization
As of September 30, 2024, Guild Holdings had a market capitalization of approximately $300 million. The stock price has fluctuated significantly over the past year, impacting investor sentiment and ownership distribution.
Recent Changes in Ownership
- In 2024, Guild Holdings repurchased 55,714 shares of its Class A common stock at an average price of $14.20 per share, utilizing part of the $20 million share repurchase program initiated in 2022.
- The share repurchase program was extended to May 2025 with approximately $10.3 million remaining available for repurchase as of September 30, 2024.
Financial Performance Overview
Guild Holdings reported a net loss of $66.9 million for the three months ended September 30, 2024, compared to a net income of $54.0 million in the prior year period. This performance has had implications for shareholder sentiment and stock price.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | ($66.9 million) | $54.0 million |
| Diluted Earnings Per Share | ($1.09) | $0.88 |
Dividends and Returns
Guild Holdings declared cash dividends of $30.7 million during the nine months ended September 30, 2024, maintaining a consistent dividend policy despite recent losses.
| Dividend Metric | Amount |
|---|---|
| Dividends Declared (2024) | $30.7 million |
| Dividends Paid (2023) | $30.5 million |
Conclusion on Ownership Dynamics
The ownership structure of Guild Holdings Company reflects a blend of institutional and retail investors with a significant portion held by insiders. The ongoing repurchase program and recent financial performance metrics continue to shape the dynamics of ownership as of 2024.
Guild Holdings Company (GHLD) Mission Statement
Guild Holdings Company aims to deliver the promise of homeownership in neighborhoods and communities across the United States. The company focuses on providing a personalized mortgage-borrowing experience through knowledgeable loan officers and a diverse range of product offerings.
Financial Overview
As of September 30, 2024, Guild Holdings reported the following financial metrics:
| Metric | Value |
|---|---|
| Loan Origination Volume | $6.9 billion |
| Total Loans Sold | $6.67 billion |
| Net Revenue | $159.3 million |
| Net Loss | $(66.9) million |
| Adjusted Net Income | $31.7 million |
| Adjusted EBITDA | $46.4 million |
| Average UPB of Servicing Portfolio | $91.5 billion |
| Book Value per Share | $18.85 |
| Tangible Net Book Value per Share | $15.14 |
Operational Segments
Guild operates primarily in two segments: origination and servicing. Below are key performance indicators for each segment for the nine months ended September 30, 2024:
| Segment | Revenue | Expenses | Net Income (Loss) |
|---|---|---|---|
| Origination | $560.5 million | $491.9 million | $6.4 million |
| Servicing | $119.0 million | $14.8 million | $(74.6) million |
Market Position and Strategy
As of 2024, Guild Holdings has focused on increasing its market share through strategic acquisitions and enhancing its service offerings. The company acquired assets from four mortgage lenders to expand its geographic presence.
Key Performance Indicators
The following table outlines Guild Holdings' key performance indicators for the nine months ending September 30, 2024, compared to the same period in 2023:
| Indicator | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Originations | $17.3 billion | $11.6 billion | +48.5% |
| Gain on Sale Margin (bps) | 337 | 343 | -1.7% |
| Average Loans Serviced | 355 | 332 | +6.9% |
| Loan Delinquency Rate (60+ days) | 1.7% | 1.5% | +13.3% |
Recent Developments
In response to market dynamics, Guild Holdings has adapted its strategies, focusing on a robust recapture rate for both purchase and refinance transactions. The company reported a purchase recapture rate of 28% and a refinance recapture rate of 35% for the nine months ended September 30, 2024.
Conclusion
Guild Holdings continues to position itself as a leader in the mortgage industry by focusing on client relationships, innovative solutions, and strategic growth initiatives to enhance its service offerings and market presence.
How Guild Holdings Company (GHLD) Works
Business Model Overview
Guild Holdings Company operates primarily in the mortgage lending sector, focusing on both origination and servicing of residential mortgage loans. As of September 30, 2024, Guild originated $6.9 billion in mortgage loans for the quarter, with total originations for the nine months reaching $17.3 billion, up from $11.6 billion in the same period in 2023.
Financial Performance
For the three months ended September 30, 2024, Guild reported a net loss of $66.9 million, translating to a diluted loss per share of $1.09. In contrast, for the same period in 2023, the company posted a net income of $54.2 million.
Revenue Breakdown
| Revenue Source | Q3 2024 ($ in thousands) | Q2 2024 ($ in thousands) | Q3 2023 ($ in thousands) |
|---|---|---|---|
| Loan origination fees and gain on sale of loans, net | 220,611 | 205,848 | 164,274 |
| Gain on reverse mortgage loans held for investment | 2,367 | 2,134 | 3,504 |
| Loan servicing fees | 70,951 | 67,709 | 204,857 |
| Net revenue | 159,257 | 285,685 | 208,522 |
Operating Segments
The company's operations are divided into two main segments: origination and servicing. For the nine months ended September 30, 2024, Guild's origination segment generated $560.5 million in revenue, while the servicing segment contributed $204.4 million.
Loan Servicing Portfolio
As of September 30, 2024, Guild's servicing portfolio had an unpaid principal balance (UPB) of $91.5 billion, marking an increase from $89.1 billion at the end of June 2024 and $83.7 billion a year earlier.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Adjusted net income ($ in thousands) | 31,666 | 30,716 | 70,424 |
| Adjusted EBITDA ($ in thousands) | 46,400 | 41,551 | 103,903 |
| Adjusted return on equity | 10.6% | 10.1% | 8.0% |
| Tangible net book value per share | $15.14 | $15.90 | N/A |
Market Position and Strategy
Guild's strategy includes acquiring assets from other mortgage lenders to expand its geographical footprint and enhance its market presence. In 2024, the company made acquisitions totaling approximately $25 million.
Recapture Rates
Guild's recapture rates for mortgage transactions reflect its ability to retain customers. For the three months ended September 30, 2024, the purchase recapture rate was 29%, and the refinance recapture rate was 41%.
Liquidity and Capital Resources
As of September 30, 2024, Guild had total commitments to originate forward mortgage loans of approximately $1.9 billion, up from $821.9 million at the end of 2023.
Investment in Technology
Guild has invested in technology to enhance its operational efficiency and customer service, aiming to improve the overall borrower experience in the mortgage process.
How Guild Holdings Company (GHLD) Makes Money
Revenue Streams
Guild Holdings Company generates revenue primarily through two segments: loan origination and servicing. For the nine months ended September 30, 2024, the company reported total revenue of $676.7 million, a 13.2% increase compared to $598 million for the same period in 2023.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Loan origination fees and gain on sale of loans, net | $560.5 million | $387.7 million | 44.6% |
| Gain on reverse mortgage loans held for investment | $7.7 million | $5.1 million | 52.8% |
| Loan servicing and other fees | $204.4 million | $182.2 million | 12.2% |
| Valuation adjustment of mortgage servicing rights | ($122.9 million) | ($4.9 million) | NM |
| Interest income | $104.8 million | $76.2 million | 37.5% |
| Interest expense | ($78.5 million) | ($49.0 million) | 60.3% |
| Other income, net | $662,000 | $663,000 | (0.2%) |
Loan Origination
In the loan origination segment, Guild Holdings originated $17.3 billion in mortgage loans for the nine months ended September 30, 2024, compared to $11.6 billion in the same period of 2023, marking a significant increase of 48.5%.
As of September 30, 2024, purchase originations accounted for 88.1% of total originations, while refinance originations made up 11.9%.
Loan Servicing
Guild's servicing portfolio reached $91.5 billion in unpaid principal balance (UPB) as of September 30, 2024, up from $83.7 billion a year earlier, reflecting an increase of 9.3%.
The company generates income through loan servicing fees, which totaled $204.4 million for the nine months ended September 30, 2024. The average loans serviced increased to 355,000 from 332,000 in the same period of the previous year.
Financial Performance
For the three months ended September 30, 2024, Guild reported a net loss of $66.9 million, compared to a net income of $54.2 million in the same quarter of 2023. The loss per share for the period was $1.09.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | ($66.9 million) | $54.2 million |
| Basic Earnings (Loss) per Share | ($1.09) | $0.89 |
| Adjusted Net Income | $31.7 million | $35.5 million |
| Adjusted EBITDA | $46.4 million | $61.6 million |
Operational Efficiency
Guild's operational efficiency is reflected in its adjusted return on equity, which stood at 10.6% for Q3 2024, compared to 3.8% for the same quarter in 2023.
The company has also seen improvements in its purchase and refinance recapture rates, with purchase recapture at 29% and refinance recapture at 41% for Q3 2024.
Market Conditions
Market conditions have been favorable due to decreasing mortgage interest rates, which have increased refinancing activity. The average 30-year mortgage interest rate decreased by 50 basis points during the quarter.
Guild's strategy includes acquisitions to enhance its market presence, with the company acquiring assets from four mortgage lenders in 2024.
Guild Holdings Company (GHLD) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Guild Holdings Company (GHLD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Guild Holdings Company (GHLD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Guild Holdings Company (GHLD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.