Guild Holdings Company (NYSE:GHLD) Q1 2023 Earnings Conference Call May 8, 2023 5:00 PM ET

Company Participants

Nikki Sacks - Investor Relations

Mary Ann McGarry - Chief Executive Officer

Terry Schmidt - President

Amber Kramer - Chief Financial Officer

Conference Call Participants

Don Fandetti - Wells Fargo

Kyle Joseph - Jefferies

Giuliano Bologna - Compass Point

Brian Violino - Wedbush Securities

Operator

Good afternoon, ladies and gentlemen, and welcome to the Guild Holdings Company First Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call will be recorded.

I would now like to turn the conference over to Investor Relations. Please go ahead.

Nikki Sacks

Thank you, and good afternoon, everyone. Before we begin, I'd like to remind everyone that comments on this conference call may contain certain forward-looking statements regarding the company's expected operating and financial performance for future periods and industry trends. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors that are described in greater detail under the section titled Risk Factors in Guild's Form 10-K and 10-Q and in other reports filed with the U.S. Securities and Exchange Commission.

Additionally, today's remarks will refer to certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures to their corresponding GAAP measures can be found in our earnings release furnished today with the SEC and are also available on Guild's Investor Relations website.

Now I'd like to turn the call over to Chief Executive Officer, Mary Ann McGarry. Mary Ann?

Mary Ann McGarry

Thank you, Nikki. Good afternoon, everyone, and thank you for joining us. Today, I'm joined by our President, Terry Schmidt; and Chief Financial Officer, Amber Kramer. Our Chief Operating Officer, David Neylan, will join us for Q&A after our prepared remarks. Our first quarter results were in line with our expectations. In the first quarter, we generated $2.7 billion of total in-house loan originations compared to $3 billion in the fourth quarter of 2022.

While these results reflect a challenging backdrop of rising rates and limited inventories, we continue to gain market share as we execute on our growth plan. Our origination volume from purchase business was 92% compared to the Mortgage Bankers Association estimate of 80%. Additionally, our model is built on long-term relationships in communities. By focusing on purchase business, we see more consistency across the interest rate cycles and believe our earnings are more durable and sustainable in all market cycles. Our servicing platform, along with our focus on customer service, also supports strong recapture rates.