Guild pany(GHLD) - 2024 Q3 - Quarterly Report

Loan Originations - Guild originated $6.9 billion of mortgage loans during the three months ended September 30, 2024, compared to$ 6.5 billion for the three months ended June 30, 2024, representing a 5.8% increase[107] - Purchase originations accounted for 88.1% of total originations for the three months ended September 30, 2024, down from 92.3% for the three months ended June 30, 2024[108] - Total originations for the nine months ended September 30, 2024, reached $17,283,964, a 48.5% increase from$ 11,639,781 in the same period of 2023[121] - The number of total originations (units) increased to 51.2 thousand, up 43.4% from 35.7 thousand year-over-year[121] - Total originations increased by $0.4 billion, or 5.8%, to$ 6.9 billion for the three months ended September 30, 2024, compared to the previous quarter[182] - Total originations for the nine months ended September 30, 2024, increased by $5.6 billion, or 48.5%, to$ 17.3 billion compared to the same period in 2023[184] Financial Performance - Guild reported a net loss of $66.9 million for the three months ended September 30, 2024, compared to a net income of$ 37.6 million for the three months ended June 30, 2024[110] - Adjusted net income for the three months ended September 30, 2024, was $31.7 million, compared to$ 30.7 million for the three months ended June 30, 2024[111] - Net revenue increased by $15.3 million, or 7.3%, to$ 224.1 million for the three months ended September 30, 2024[182] - The company experienced a significant decrease in net revenue, reporting $159,257 thousand for the three months ended September 30, 2024, down 44.3% from$ 285,685 thousand in the previous quarter[133] - Total revenue for the three months ended September 30, 2024, increased by 5.8% compared to the previous quarter, in line with the increase in average UPB of the servicing portfolio[189] - Total revenue for the nine months ended September 30, 2024, increased by 12.2% to $204,857,000 compared to$ 182,542,000 for the same period in 2023[191] Servicing Portfolio - Guild's servicing portfolio increased to $91.5 billion of UPB as of September 30, 2024, up from$ 89.1 billion as of June 30, 2024, reflecting a 2.7% growth[109] - The servicing data showed an increase in UPB (period end) to $91,485,163, representing a 9.3% growth from$ 83,705,731 in the previous year[121] - Average UPB of servicing portfolio rose to $88,259,531, reflecting an 8.6% increase compared to$ 81,299,359 year-over-year[150] - Average UPB of the servicing portfolio increased by $2.6 billion, or 2.9%, to$ 90.3 billion as of September 30, 2024[188] Expenses and Losses - Total expenses for the three months ended September 30, 2024, were $252,090 thousand, an increase of 4.5% from$ 241,158 thousand in the previous quarter[133] - The provision for foreclosure losses increased by $1.1 million, or 223.6%, for the three months ended September 30, 2024, due to an increase in expected losses[189] - Total salaries, incentive compensation, and benefits expense for the three months ended September 30, 2024, was$ 188,938, a 5.3% increase from $178,871 in the previous quarter[163] - Total salaries, incentive compensation, and benefits expense increased by 32.4% to$ 528,010,000 for the nine months ended September 30, 2024, compared to $398,660,000 for the same period in 2023[164] Market Conditions - The average 10-year Treasury yield decreased by 50 basis points during the three months ended September 30, 2024, contributing to increased refinancing activity[116] - The Mortgage Bankers Association forecasts total mortgage originations for purchases to increase by 4.0% in 2024 to$ 1.29 trillion[117] Equity and Book Value - Guild's tangible net book value per share was $15.14 as of September 30, 2024, down from$ 15.90 as of December 31, 2023[113] - Total stockholders' equity attributable to Guild decreased to $1,157,356 thousand from$ 1,183,156 thousand year-over-year[132] - The book value per share decreased to $18.85 from$ 19.36 year-over-year[132] Cash Flow and Financing - Net cash used in operating activities was $(861,717,000) for the nine months ended September 30, 2024, compared to$ (110,671,000) for the same period in 2023[201] - Net cash provided by financing activities rose significantly to $961.7 million for the nine months ended September 30, 2024, up from$ 187.6 million in the same period of 2023[205] - The company believes its cash flows from operations will be sufficient to fund operations and meet material cash requirements for the next 12 months[194] Acquisitions and Growth Strategy - Guild acquired certain assets of four mortgage lenders for approximately $25.0 million to support its growth strategy[115] - Total commitments to originate forward mortgage loans reached approximately$ 1.7 billion as of September 30, 2024, compared to $710.9 million as of December 31, 2023[208]