Guild Holdings Co., the parent company of Guild Mortgage, reported a profitable second quarter in 2024, driven by the strong performance of its servicing portfolio. Despite a 69% increase in origination volume from April to June compared to the previous quarter, the company experienced lower margins.
According to filings with the Securities and Exchange Commission (SEC), net income for Q2 2024 rose to $37.6 million, up from $28.5 million in the previous quarter. Adjusted net income was $30.7 million, and adjusted EBITDA was $41.6 million.
CEO Terry Schmidt emphasized the company’s strategy of investing in people and technology to increase market share and effectively navigate a challenging market environment.
Schmidt highlighted the successful integration of Academy Mortgage, acquired in February, which contributed significantly to the company’s origination volume. She also mentioned the launch of GuildGPT, an in-house artificial intelligence system aimed at improving customer service.
Despite a slowdown in acquisition activity, Guild remains focused on selective acquisitions that align with its values. The company also continues to grow organically by hiring loan officers.
During the second quarter, Guild originated $6.5 billion in loans, with 92% involving purchase loans. While the gain-on-sale margin decreased, the servicing segment performed well, generating a net income of $69.5 million.
The company’s servicing portfolio saw a 9% growth in unpaid principal balance to $89 billion, with plans to capitalize on opportunities as interest rates decline.
Guild’s cash position stood at $102.2 million as of June 30, with its stock price experiencing fluctuations during after-hours trading.
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