Guild Holdings Company (NYSE:GHLD) ("Guild" or the "Company"), a growth-oriented mortgage company that employs a relationship-based loan sourcing strategy to execute on its mission of delivering the promise of homeownership, today announced results for the second quarter ended June 30, 2022.

$5.7 billion

Originations

$288 million

Net Revenue

$58 million

Net Income

$14 million

Adjusted Net Income

Second Quarter 2022 Highlights		Total in-house originations of $5.7 billion compared to $6.1 billion in the prior quarter
		Net revenue of $287.5 million compared to $481.8 million in the prior quarter
		Net income of $58.3 million compared to $208.0 million in the prior quarter
		Servicing portfolio unpaid principal balance of $75.9 billion, up 4% compared to $73.3 billion as of March 31, 2022
		Adjusted net income and Adjusted EBITDA totaled $13.9 million and $22.0 million, respectively, compared to $32.1 million and $46.7 million, respectively, in the prior quarter
		Return on equity of 20.1% and adjusted return on equity of 4.8%, compared to 81.2% and 12.5%, respectively, in the prior quarter

Year-To-Date 2022 Highlights		Total in-house originations of $11.8 billion compared to $17.9 billion in the prior year
		Net revenue of $769.3 million compared to $820.3 million in the prior year
		Net income of $266.3 million compared to $169.5 million in the prior year
		Servicing portfolio unpaid principal balance of $75.9 billion, up 16% compared to $65.7 billion as of June 30, 2021
		Adjusted net income and Adjusted EBITDA totaled $46.0 million and $68.6 million, respectively, compared to $158.7 million and $219.2 million, respectively, in the prior year
		Return on equity of 50.5% and adjusted return on equity of 8.7%, compared to 42.8% and 40.1%, respectively, in the prior year

CEO Commentary

"We delivered solid financial results for the second quarter of 2022 despite higher interest rates, excess capacity and limited inventories," said Mary Ann McGarry, CEO. "Despite shifting market conditions, our tenured management team has a proven track record across cycles and our differentiated purchase-focused business model positions us well, as refinancing volumes continue to weaken. In fact, purchase loans accounted for 84% of our total origination volumes in the second quarter. Also, we remain focused on ongoing product development to stay in front of shifting market trends, as well as rightsizing the business. During periods of disruption, we maintain the flexibility to further align our costs with volume trends.

"Every market creates opportunities. We are well-capitalized, and our leverage ratios and liquidity levels position us well to capitalize on M&A opportunities as we continue to build our business. Broader market disruptions are driving a flight to quality, with sales people, teams, and companies considering Guild because of our long and successful history through market cycles, and our ability to take advantage of dislocations in the market."

- Mary Ann McGarry, CEO of Guild Holdings Company

Second Quarter 2022 Results		Originated 84% of closed loan origination volume from purchase business, compared to the Mortgage Bankers Association estimate of 70%
		Gain on sale margins on originations of 363 bps
		Gain on sale margins on pull-through adjusted locked volume of 357 bps
		UPB of servicing portfolio grew 4% compared to the prior quarter to $76 billion
		Purchase recapture rate of 29%

Second Quarter Summary

($ amounts in millions, except per share amounts)	2Q'22			1Q'22			%∆		YTD'22			YTD'21			%∆
Total in-house originations	$	5,721.9		$	6,061.6		(6	) %	$	11,783.5		$	17,941.2		(34	) %
Gain on sale margin on originations (bps)		363			400		(9	) %		382			433		(12	) %
Gain on sale margin on pull-through adjusted locked volume (bps)		357			334		7	%		347			454		(24	) %
UPB of servicing portfolio (period end)	$	75,856.6		$	73,250.6		4	%	$	75,856.6		$	65,670.3		16	%
Net revenue	$	287.5		$	481.8		(40	) %	$	769.3		$	820.3		(6	) %
Total expenses	$	209.1		$	203.6		3	%	$	412.7		$	592.8		(30	) %
Net income	$	58.3		$	208.0		(72	) %	$	266.3		$	169.5		57	%
Return on equity		20.1	%		81.2	%	(75	) %		50.5	%		42.8	%	18	%
Adjusted net income	$	13.9		$	32.1		(57	) %	$	46.0		$	158.7		(71	) %
Adjusted EBITDA	$	22.0		$	46.7		(53	) %	$	68.6		$	219.2		(69	) %
Adjusted return on equity		4.8	%		12.5	%	(62	) %		8.7	%		40.1	%	(78	) %
Earnings per share	$	0.95		$	3.41		(72	) %	$	4.36		$	2.83		54	%
Diluted earnings per share	$	0.95		$	3.38		(72	) %	$	4.31		$	2.81		53	%
Adjusted earnings per share	$	0.23		$	0.53		(57	) %	$	0.75		$	2.64		(72	) %

Second Quarter Origination Segment Results

Origination segment net income decreased 60% quarter-over-quarter to $25.6 million compared to $63.4 million primarily driven by lower origination volumes as a result of higher interest rates, as well as less favorable adjustment to the fair value of contingent liabilities related to acquisitions. Gain on sale margins on pull-through adjusted locked volume increased 7% quarter-over-quarter to 357 bps and total pull-through adjusted locked volume in the second quarter of 2022 was $5.8 billion.

($ amounts in millions)	2Q'22		1Q'22		%∆		YTD'22		YTD'21		%∆
Total in-house originations	$	5,721.9	$	6,061.6	(6	) %	$	11,783.5	$	17,941.2	(34	) %
In-house originations # (000's)		18		19	(5	) %		37		62	(40	) %
Net revenue	$	212.1	$	245.6	(14	) %	$	457.7	$	780.5	(41	) %
Total expenses	$	186.5	$	182.2	2	%	$	368.7	$	541.6	(32	) %
Net income allocated to origination	$	25.6	$	63.4	(60	) %	$	89.1	$	238.9	(63	) %

Second Quarter Servicing Segment Results

Net income attributed to the servicing segment was $63.9 million compared to $226.8 million in the prior quarter. The Company retained servicing rights for 89% of total loans sold in the second quarter of 2022.

Net revenue totaled $76.9 million compared to $237.6 million in the prior quarter driven by a lower upward adjustment to the fair value of the Company's mortgage servicing rights, which was $21.1 million in the second quarter of 2022, compared to $184.6 million in the prior quarter reflecting increasing interest rates and lower prepayment speeds. Guild's purchase recapture rate was 29% in the second quarter of 2022, which reinforces the Company's focus on customer service and synergistic business model.

($ amounts in millions)	2Q'22		1Q'22		%∆		YTD'22		YTD'21			%∆
UPB of servicing portfolio (period end)	$	75,856.6	$	73,250.6	4	%	$	75,856.6	$	65,670.3		16	%
# Loans serviced (000's) (period end)		314		307	2	%		314		287		9	%
Loan servicing and other fees	$	54.6	$	53.2	3	%	$	107.8	$	92.9		16	%
Valuation adjustment of MSRs	$	21.1	$	184.6	(89	%)	$	205.7	$	(49.0	)	519	%
Net revenue	$	76.9	$	237.6	(68	) %	$	314.5	$	42.7		636	%
Total expenses	$	13.0	$	10.9	20	%	$	23.9	$	24.5		(3	) %
Net income allocated to servicing	$	63.9	$	226.8	(72	) %	$	290.7	$	18.2		NM

Share Repurchase Program

On May 5, 2022, the Board of Directors of Guild authorized the Company to repurchase up to $20.0 million of the Company's outstanding shares of Class A common stock over the next 24 months. During the three months ended June 30, 2022, the Company repurchased and subsequently retired 141,952 shares of Guild's Class A common stock at an average purchase price of $10.18 per share. As of June 30, 2022, $18.6 million remains available for repurchase.

Balance Sheet and Liquidity Highlights

The Company's operating cash position was $249.0 million as of June 30, 2022. The Company's unutilized loan funding capacity was $1.6 billion as of June 30, 2022, while the unutilized mortgage servicing rights line of credit was $235.0 million, based on total committed amounts and borrowing base limitations. The Company's leverage ratio was 1.3x as of June 30, 2022, defined as total secured debt including funding divided by tangible stockholders' equity.

(in millions)	June 30, 2022		December 31, 2021
Cash and cash equivalents	$	249.0	$	243.1
Mortgage servicing rights, net	$	1,030.3	$	675.3
Warehouse lines of credit	$	1,148.6	$	1,927.5
Notes payable	$	118.8	$	250.2
Total stockholders' equity	$	1,187.8	$	920.0

Webcast and Conference Call

The Company will host a webcast and conference call on Thursday, August 4, 2022 at 6:00 p.m. Eastern Time to discuss the Company's results for the second quarter ended June 30, 2022.

The conference call will be available on the Company's website at https://ir.guildmortgage.com/. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register. The conference call can also be accessed by the following dial-in information:

1-877-407-0789 (Domestic)

1-201-689-8562 (International)

A replay of the call will be available on the Company's website at https://ir.guildmortgage.com/ approximately two hours after the live call through August 18, 2022. The replay is also available by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (international). The replay pin number is 13730259.

About Guild Holdings Company

Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Holdings Company is a nationally recognized independent mortgage lender providing residential mortgage products and local in-house origination and servicing. Guild's collaborative culture and commitment to diversity and inclusion enable it to deliver a personalized experience for each customer. With more than 4,500 employees and over 250 retail branches, Guild has relationships with credit unions, community banks, and other financial institutions and services loans in 49 states and the District of Columbia. Guild's highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, down payment assistance programs and other specialized loan programs. Its shares of Class A common stock trade on the New York Stock Exchange under the symbol GHLD.

Forward-Looking Statements

This press release contains forward-looking statements, including statements about future profitability and positioning to capitalize on M&A opportunities and statements regarding our intention to continue to repurchase shares of the Company's Class A common stock pursuant to the share repurchase program. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

Important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements include, but are not limited to, the following: any disruptions in the secondary home loan market and their effects on our ability to sell the loans that we originate; any changes in macroeconomic and U.S. residential real estate market conditions; any changes in certain U.S. government-sponsored entities and government agencies, and any organizational or pricing changes in these entities, their guidelines or their current roles; any changes in prevailing interest rates or U.S. monetary policies; the effects of any termination of our servicing rights; the effects of our existing and future indebtedness on our liquidity and our ability to operate our business; any disruption in the technology that supports our origination and servicing platform; our failure to identify, develop and integrate acquisitions of other companies or technologies; the effects of the ongoing COVID-19 pandemic; pressure from existing and new competitors; any failure to maintain or grow our historical referral relationships with our referral partners; any delays in recovering service advances; inaccuracies in the estimates of the fair value of the substantial portion of our assets that are measured on that basis (including our mortgage servicing rights, or "MSRs"); any failure to adapt to and implement technological changes; the failure of the internal models that we use to manage risk and make business decisions to produce reliable or accurate results; the degree of business and financial risk associated with certain of our loans; any cybersecurity breaches or other vulnerability involving our computer systems or those of certain of our third-party service providers; our inability to secure additional capital, if needed, to operate and grow our business; the impact of operational risks, including employee or consumer fraud, the obligation to repurchase sold loans in the event of a documentation error, and data processing system failures and errors; any repurchase or indemnification obligations caused by the failure of the loans that we originate to meet certain criteria or characteristics; the seasonality of the mortgage origination industry; any failure to protect our brand and reputation; any non-compliance with the complex laws and regulations governing our mortgage loan origination and servicing activities; our control by, and any conflicts of interest with, McCarthy Capital Mortgage Investors, LLC; the risks related to our status as a "controlled company"; the significant influence on our business that members of our board and management team are able to exercise as stockholders; our dependence, as a holding company, upon distributions from Guild Mortgage Company LLC to meet our obligations; the risks related to the trading market of our Class A common stock due to our dual class common stock structure; our ability to complete repurchases under the share repurchase program in the amount authorized or at all and the impact of the share repurchase program on our business and financial condition; the identification of material weaknesses in our internal control over financial reporting; and the other risks, uncertainties and factors set forth under Item IA. – Risk Factors and all other disclosures appearing in Guild's Annual Report on Form 10-K for the year ended December 31, 2021, Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 as well as other documents Guild files from time to time with the Securities and Exchange Commission.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we undertake no obligation to update any forward-looking statement made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

Non-GAAP Financial Measures

To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we disclose certain financial measures for our consolidated and operating segment results on both a GAAP and a non-GAAP (adjusted) basis. The non-GAAP financial measures disclosed should be viewed in addition to, and not as an alternative to, results prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies.

Adjusted Net Income. We define Adjusted Net Income as earnings attributable to Guild before the change in the fair value measurements related to our MSRs, contingent liabilities related to completed acquisitions due to changes in valuation assumptions, amortization of acquired intangible assets and stock-based compensation. We exclude these items because we believe they are non-cash expenses that are not reflective of our core operations or indicative of our ongoing operations. Adjusted Net Income is also adjusted by applying an implied tax effect to these adjustments. In addition we exclude the change in the fair value of MSRs due to changes in model inputs and assumptions from Adjusted Net Income and Adjusted EBITDA below because we believe this non-cash, non-realized adjustment to net revenues is not indicative of our operating performance or results of operations but rather reflects changes in model inputs and assumptions (e.g., prepayment speed, discount rate and cost to service assumptions) that impact the carrying value of the Company's MSRs from period to period.

Adjusted Earnings Per Share. We define Adjusted Earnings Per Share as our adjusted net income divided by the basic weighted average shares outstanding of our Class A and Class B common stock.

Adjusted EBITDA. We define Adjusted EBITDA as earnings before interest (without adjustment for net warehouse interest related to loan fundings and payoff interest related to loan prepayments), taxes, depreciation and amortization and net income attributable to the non-controlling interest exclusive of any change in the fair value measurements of the MSRs due to valuation assumptions, contingent liabilities from business acquisitions and stock-based compensation. We exclude these items because we believe they are non-cash expenses that are not reflective of our core operations or indicative of our ongoing operations.

Adjusted Return on Equity. We define Adjusted Return on Equity as annualized Adjusted Net Income as a percentage of average beginning and ending stockholders' equity during the period.

We use these non-GAAP financial measures to evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. These non-GAAP financial measures are designed to evaluate operating results exclusive of fair value adjustments that are not indicative of management's operating performance. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects.

Our non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures rather than net income (loss) or net income (loss) attributable to Guild, which are the most directly comparable financial measures calculated and presented in accordance with GAAP for Adjusted Net Income and Adjusted EBITDA, and Return on Equity, which is the most directly comparable financial measure calculated and presented in accordance with GAAP for Adjusted Return on Equity. These limitations include that these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company's financial results for the foreseeable future. In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.

For more information on these non-GAAP financial measures, please see the "GAAP to Non-GAAP Reconciliations" included at the end of this release.

Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except share and per share amounts)	June 30, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	248,987	$	243,108
Restricted cash		5,592		5,012
Mortgage loans held for sale		1,249,809		2,204,216
Ginnie Mae loans subject to repurchase right		616,335		728,978
Accounts and interest receivable		23,517		68,359
Derivative assets		23,080		27,961
Mortgage servicing rights, net		1,030,310		675,340
Intangible assets, net		37,050		41,025
Goodwill		173,434		175,144
Other assets		192,845		214,061
Total assets	$	3,600,959	$	4,383,204
Liabilities and stockholders' equity
Warehouse lines of credit	$	1,148,551	$	1,927,478
Notes payable		118,750		250,227
Ginnie Mae loans subject to repurchase right		616,638		729,260
Accounts payable and accrued expenses		44,488		56,836
Accrued compensation and benefits		46,711		75,079
Investor reserves		16,919		18,437
Contingent liabilities due to acquisitions		1,557		59,500
Derivative liabilities		4,121		2,079
Operating lease liabilities		91,272		97,836
Note due to related party		1,580		2,614
Deferred compensation plan		95,040		101,600
Deferred tax liabilities		227,502		142,245
Total liabilities		2,413,129		3,463,191
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued and outstanding		—		—
Class A common stock, $0.01 par value; 250,000,000 shares authorized; 20,616,015 and 20,723,912 shares issued and outstanding at June 30, 2022 and December 31, 2021		206		207
Class B common stock, $0.01 par value; 100,000,000 shares authorized; 40,333,019 shares issued and outstanding at June 30, 2022 and December 31, 2021		403		403
Additional paid-in capital		43,666		42,175
Retained earnings		1,143,489		877,194
Non-controlling interest		66		34
Total stockholders' equity		1,187,830		920,013
Total liabilities and stockholders' equity	$	3,600,959	$	4,383,204

Condensed Consolidated Statements of Income (unaudited)
	Three Months Ended						Six Months Ended June 30,
(in thousands, except per share amounts)	Jun 30, 2022			Mar 31, 2022				2022			2021
Revenue
Loan origination fees and gain on sale of loans, net	$	207,972		$	242,639		$	450,611		$	777,347
Loan servicing and other fees		54,595			53,177			107,772			92,851
Valuation adjustment of mortgage servicing rights		21,074			184,601			205,675			(49,046	)
Interest income		14,823			15,263			30,086			29,734
Interest expense		(10,949	)		(14,138	)		(25,087	)		(30,720	)
Other income, net		22			220			242			130
Net revenue		287,537			481,762			769,299			820,296
Expenses
Salaries, incentive compensation and benefits		178,192			187,329			365,521			499,287
General and administrative		6,371			(5,630	)		741			58,701
Occupancy, equipment and communication		18,973			18,312			37,285			29,494
Depreciation and amortization		3,808			3,913			7,721			3,262
Provision (relief) for foreclosure losses		1,796			(321	)		1,475			2,019
Total expenses		209,140			203,603			412,743			592,763
Income before income tax expense		78,397			278,159			356,556			227,533
Income tax expense		20,108			70,186			90,294			57,991
Net income		58,289			207,973			266,262			169,542
Net income attributable to non-controlling interest		17			15			32			—
Net income attributable to Guild	$	58,272		$	207,958		$	266,230		$	169,542

Net income per share attributable to Class A and Class B Common Stock:
Basic	$	0.95		$	3.41		$	4.36		$	2.83
Diluted	$	0.95		$	3.38		$	4.31		$	2.81
Weighted average shares outstanding of Class A and Class B Common Stock:
Basic		61,064			61,057			61,060			60,000
Diluted		61,650			61,494			61,779			60,234

Key Performance Indicators

Management reviews several key performance indicators to evaluate our business results, measure our performance and identify trends to inform our business decisions. Summary data for these key performance indicators is listed below.

	Three Months Ended						Six Months Ended June 30,
($ and units in thousands)	Jun 30, 2022			Mar 31, 2022				2022			2021
Origination Data
$ Total in-house origination⁽¹⁾	$	5,721,931		$	6,061,553		$	11,783,484		$	17,941,190
# Total in-house origination		18			19			37			62
$ Retail in-house origination		5,538,743			5,779,346			11,318,089			17,424,164
# Retail in-house origination		17			18			35			60
$ Retail brokered origination⁽²⁾		65,275			53,095			118,370			32,671
Total originations	$	5,787,206		$	6,114,648		$	11,901,854		$	17,973,861
Gain on sale margin (bps)⁽³⁾		363			400			382			433
Pull-through adjusted locked volume⁽⁴⁾		5,824,911			7,257,489			12,997,291			17,120,941
Gain on sale margin on pull-through adjusted locked volume (bps)⁽⁵⁾		357			334			347			454
Refinance recapture rate⁽⁶⁾		39	%		55	%		50	%		64	%
Purchase origination %		84	%		66	%		75	%		47	%
Servicing Data
UPB (period end)⁽⁷⁾	$	75,856,564		$	73,250,575		$	75,856,564		$	65,670,291

_________________

(1) Includes retail and correspondent loans and excludes brokered loans.

(2) Brokered loans are defined as loans we originate in the retail channel that are processed by us but underwritten and closed by another lender. These loans are typically for products we choose not to offer in-house.

(3) Represents loan origination fees and gain on sale of loans, net divided by total in-house origination to derive basis points.

(4) Pull-through adjusted locked volume is equal to total locked volume multiplied by pull-through rates of 92.7%, 93.8% and 90.7% as of June 30, 2022, March 31, 2022 and June 30, 2021, respectively. We estimate the pull-through rate based on changes in pricing and actual borrower behavior using a historical analysis of loan closing data and "fallout" data with respect to the number of commitments that have historically remained unexercised.

(5) Represents loan origination fees and gain on sale of loans, net divided by pull-through adjusted locked volume.

(6) Refinance recapture rate is calculated as the total UPB of our clients that originated a new mortgage with us to refinance an existing mortgage in a given period, divided by the total UPB of our clients that paid off their existing mortgage and originated a new mortgage in the same period.

(7) Excludes subserviced portfolios of $0.6 billion as of June 30, 2021. During the fourth quarter of 2021, we sold our subservicing portfolios.

GAAP to Non-GAAP Reconciliations Reconciliation of Net Income Attributable to Guild to Adjusted Net Income (unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions, except per share amounts)	Jun 30, 2022			Mar 31, 2022				2022			2021
Net income	$	58.3		$	208.0		$	266.3		$	169.5
Net income attributable to non-controlling interest⁽¹⁾		—			—			—			—
Net income attributable to Guild	$	58.3		$	208.0		$	266.2		$	169.5
Add adjustments:
Change in fair value of MSRs due to model inputs and assumption		(46.9	)		(209.5	)		(256.4	)		(30.8	)
Change in fair value of contingent liabilities due to acquisitions		(16.5	)		(28.9	)		(45.4	)		13.1
Amortization of acquired intangible assets		2.0			2.0			4.0			—
Stock-based compensation		1.7			1.3			3.0			3.1
Tax impact of adjustments⁽²⁾		15.3			59.3			74.6			3.7
Adjusted Net Income	$	13.9		$	32.1		$	46.0		$	158.7

Weighted average shares outstanding of Class A and Class B Common Stock		61			61			61			60
Earnings per share	$	0.95		$	3.41		$	4.36		$	2.83
Adjusted earnings per share	$	0.23		$	0.53		$	0.75		$	2.64

_________________

Amounts may not foot due to rounding

(1) Net income attributable to non-controlling interest was $17 thousand, $15 thousand and $32 thousand for the three months ended June 30, 2022 and March 31, 2022 and the six months ended June 30, 2022, respectively.

(2) Implied tax rate used was 25.6%, 25.2%, 25.3% and 25.5% for the three months ended June 30, 2022 and March 31, 2022 and the six months ended June 30, 2022 and 2021, respectively.

Reconciliation of Net Income to Adjusted EBITDA (unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions)	Jun 30, 2022			Mar 31, 2022				2022			2021
Net income	$	58.3		$	208.0		$	266.3		$	169.5
Add adjustments:
Interest expense on non-funding debt		1.4			1.7			3.2			3.0
Income tax expense		20.1			70.2			90.3			58.0
Depreciation and amortization		3.8			3.9			7.7			3.3
Change in fair value of MSRs due to model inputs and assumptions		(46.9	)		(209.5	)		(256.4	)		(30.8	)
Change in fair value of contingent liabilities due to acquisitions		(16.5	)		(28.9	)		(45.4	)		13.1
Stock-based compensation		1.7			1.3			3.0			3.1
Adjusted EBITDA	$	22.0		$	46.7		$	68.6		$	219.2

_________________

Amounts may not foot due to rounding

Reconciliation of Return on Equity to Adjusted Return on Equity (unaudited)

	Three Months Ended						Six Months Ended June 30,
($ in millions)	Jun 30, 2022			Mar 31, 2022				2022			2021
Numerator: Adjusted Net Income	$	13.9		$	32.1		$	46.0		$	158.7
Denominator: Average stockholders' equity		1,158.5			1,024.6			1,053.9			792.3
Adjusted Return on Equity		4.8	%		12.5	%		8.7	%		40.1	%
Return on Equity		20.1	%		81.2	%		50.5	%		42.8	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005892/en/

Guild Holdings Company Reports Second Quarter 2022 Results