Guild Holdings Company has recently released its 10-K report, revealing key financial and operational details. The company, incorporated in 1960 and headquartered in San Diego, California, operates in two segments, Origination and Servicing, and offers residential mortgages through retail and correspondent channels. In 2024, Guild originated $24.0 billion and $15.3 billion of mortgage loans, with purchase originations accounting for 88.1% and 93.4% of total originations for 2024 and 2023, respectively. The company's servicing portfolio as of December 31, 2024, was $93.0 billion of UPB compared to $85.0 billion of UPB as of December 31, 2023, with the average size of the portfolio increasing 8.6% over that time.
In terms of financial performance, Guild generated $97.1 million of net income and $39.0 million of net loss for the years ended December 31, 2024 and 2023, respectively. Adjusted net income for 2024 was $90.2 million, compared to $48.0 million in 2023. The company's return on average equity was 8.0% for 2024, a significant improvement from the (3.2)% reported in 2023. Additionally, Guild had a book value per share of $20.24 and $19.36 at December 31, 2024 and 2023, respectively.
Market and Economic Overview: The Federal Open Market Committee ("FOMC") pivoted its stance as inflation trended back to their 2% goal with a rate drop of 50 basis points in September 2024. The MBA's February 2025 Mortgage Finance Forecast projects an increase in the average 10-year treasury yield by 20 basis points from 4.3% to 4.5% and a decrease in the average 30-year mortgage interest rate by 10 basis points as mortgage spreads are expected to tighten.
Description of Certain Components of Financial Data: Guild's revenue components include loan origination fees, gain on sale of loans, net, and interest income, while expenses consist of salaries, incentive compensation, and benefits, general and administrative costs, occupancy, equipment, and communication expenses, and depreciation and amortization.
As a result of these announcements, the company's shares have moved 2.5% on the market, and are now trading at a price of $13.43. If you want to know more, read the company's complete 10-K report here.
