Guild pany(US:GHLD)2025-11-06 22:02Loan Origination - Guild originated $7.4 billion of mortgage loans during the three months ended September 30, 2025, compared to $7.5 billion for the three months ended June 30, 2025, reflecting a decrease of 1.2%[114] - Purchase originations accounted for 85.9% of total originations for the three months ended September 30, 2025, down from 88.6% for the three months ended June 30, 2025[114] - Total loan origination volume increased to $20,065,486, a 16.1% increase from $17,283,964 in the previous year[129] - Government loan origination volume rose by 21.4% to $5,436,053, compared to $4,479,524 in the prior year[129] - Other loan origination volume surged by 43.7% to $4,129,634, up from $2,874,571[129] - Total originations for the three months ended September 30, 2025, were $7,386,127, a decrease of $88,667 or 1.2% from the previous quarter[210] - Total originations for the nine months ended September 30, 2025, increased by $2.8 billion, or 16.1%, compared to the same period in 2024[219] Financial Performance - Guild generated $33.3 million of net income for the three months ended September 30, 2025, compared to $18.7 million for the three months ended June 30, 2025, marking an increase of 78.2%[114] - Adjusted net income for the three months ended September 30, 2025, was $47.0 million, up from $41.4 million for the three months ended June 30, 2025, reflecting a growth of 9.5%[114] - Revenue for the three months ended September 30, 2025, was $307,437,000, up 10.0% from $279,445,000 in the previous quarter[154] - Adjusted net income for the nine months ended September 30, 2025, reached $110,075,000, compared to $70,424,000 for the same period in 2024, reflecting a 56.4% increase[150] - Net income attributable to Guild for the three months ended September 30, 2025, was $33,326,000, a significant increase from $18,661,000 in the previous quarter, representing a 78.6% growth[148] Servicing Portfolio - Guild's servicing portfolio increased to $98.3 billion of unpaid principal balance as of September 30, 2025, up from $96.3 billion as of June 30, 2025, representing a growth of 2.3%[114] - The UPB of the servicing portfolio at period end was $98,337,330, a 7.5% increase from $91,485,163[134] - The average UPB of the servicing portfolio increased by 8.4% to $95,668,096 from $88,259,531[134] - Average UPB of the servicing portfolio rose by 8.4% to $95.67 billion from $88.26 billion year-over-year[229] - The percentage of service retained originations increased to 67.0% for the three months ended September 30, 2025, compared to 61.0% for the previous quarter[214] Expenses and Costs - Total expenses for the three months ended September 30, 2025, were $261,458,000, a slight increase of 1.0% from $258,903,000 in the previous quarter[154] - Total expenses for the nine months ended September 30, 2025, were $631,514, an increase of 6.7% compared to the same period in 2024[218] - Salaries expense increased by 9.0% to $95,091 for the three months ended September 30, 2025, driven by annual merit increases and performance-based bonuses[186] - Total salaries, incentive compensation, and benefits expense for the nine months ended September 30, 2025, was $583,951, reflecting a 10.6% increase from $528,010 in 2024[188] - General and administrative expenses decreased by 6.6% to $29,339 for the three months ended September 30, 2025, primarily due to lower professional fees[191] Market Conditions - The average 30-year mortgage interest rate is expected to average near 7.0% during 2025, with a modest decline to around 6.4% by year-end[117] - The MBA forecasts total origination volume in the industry to increase by 20.5% in 2025, reaching $2.0 trillion, compared to $1.7 trillion in 2024[118] Mergers and Acquisitions - The Company announced a merger agreement with Gulf MSR HoldCo, LLC, with a cash consideration of $20.00 per share for stockholders[120][121] Delinquency and Foreclosure - The loan delinquency rate for loans 60-plus days past due was 1.9%, an increase from 1.7%[134] - The 60-plus days delinquency rate was 1.9% as of September 30, 2025, up from 1.7% a year earlier[203] - Provision for foreclosure losses increased to $4.6 million for the nine months ended September 30, 2025, up from $0.5 million in the same period in 2024[202] - Provision for foreclosure losses increased by $4.1 million, or 811.8%, due to the rise in the number of loans in foreclosure following the expiration of the VA foreclosure moratorium[230] Shareholder Information - The diluted earnings per share for the three months ended September 30, 2025, was $0.53, compared to $0.30 in the previous quarter, indicating a 76.7% increase[148] - The tangible net book value per share as of September 30, 2025, was $16.35, slightly down from $16.59 as of December 31, 2024[151] - During the nine months ended September 30, 2025, the company repurchased 96,437 shares of Class A common stock at an average price of $13.13 per share[256]