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David Neylan

Thank you. As Terry highlighted, Guild has delivered another strong quarter driven by our growth and operational improvements across the company, particularly in the origination segment. I'd like to spend just a few moments discussing how our execution of acquisitions and organic growth has resulted in tremendous progress in our origination performance, positioning us for continued success in the current market environment. As a result of our growth efforts, we have delivered consistent improvement in our origination segment, improving quarterly profitability by $21 million compared to the first quarter a year ago.
This has been accomplished in three ways. First, we have added scale, as Terry mentioned, by successfully retaining loan officers who join via acquisitions, while also welcoming additional new loan officers through organic recruiting at a time when top producers are making a flight to quality. Second, our experience playbook and expertise with onboarding resulted in quickly achieving operational leverage as we grill. This can be attributed to discipline integration efforts from our seasoned teams across the country.
Finally, Guild's investments in superior technology, products, and sales coaching have delivered enhanced productivity for our loan officers. We have been seeing this positive impact over the past several quarters, and according to MMI records, loan officers at Guild on average experienced 30% more productivity than the industry average.
We believe this strategy and durable balanced business model has created a foundation from which we will continue to benefit even in this challenging and volatile market. Our outlook for the peak spring and summer home purchase market is cautiously optimistic. We believe our national footprint, community-driven origination teams, and customer for life servicing strategy are well suited for serving the needs of our customers in every market cycle.
We are seeing strong early results and growing momentum to serve more first-time home buyers through our promise of home, educational events in major markets across the US. We also continue to invest in product and technology innovation that will position guild to serve the home buyer of the future.
To summarize, we're pleased with our first quarter performance and remain confident in our strategic direction despite market volatility. We intend to continue to grow through organic recruiting and strategic acquisitions with a discipline focused on increased productivity for our loan officers and economies of scale in our business. We appreciate your continued interest and support of guild, and we look forward to updating you on our progress in the coming quarters.
I'll now hand over to Amber, who will provide a more detailed financial overview. Amber?

Desiree Kramer

Thank you, David. Given a return to more traditional seasonal patterns in the mortgage industry, I will provide commentary on both sequential quarter and year over year comparisons. For the first quarter of 2025, we generated $5.2 billion of total loan originations compared to$ 3.9 billion in the prior year first quarter, and $6.7 billion in the fourth quarter.
Net revenue totaled $198 million compared to $232 million in the prior year and $373 million in the fourth quarter, which generated a net loss attributable to guild of $24 million compared to a net income of $28 million in the prior year and $98 million in the fourth quarter. Adjusted net income was $22 million or $0.35 per diluted share, and adjusted EBITDA with $36 million.
Now turning to our origination segment, our net loss of $3 million compared to the net loss of $24 million in the prior year first quarter. This demonstrates the growth we have made as a business both through acquisitions and organic recruiting, our ability to capture originations across market environments, as well as the timing of our acquisition of academy mortgage in February of last year.
Our gain on sale margin in the first quarter came in at 376 basis points compared to 364 basis points in the prior year first quarter and 317 basis points in the fourth quarter on funded originations. Gain on sale margins on pull through adjusted lock volume was 316 basis points, up from 290 basis points in the prior year first quarter, and 360 basis points in the fourth quarter.
The uptick in Q1 is consistent with our historical experience, primarily due to seasonality and timing. Total pull through adjusted lock volume was $5.9 billion compared to $4.6 billion in the prior year first quarter and $5.7 billion in the fourth quarter. For our servicing segment, our portfolio grew to $94 billion. We reported a net loss of $5 million compared to a net income of $84 million in the prior year of first quarter and $152 million in the fourth quarter.
The loss in this year's first quarter was primarily due to the downward valuation adjustment of MSRs of $70 million due to the period in interest rate declines. Our servicing portfolio continues to be a valuable source for ongoing cash flow, future opportunities for loan recapture, and it reinforces our customer for life strategy.
Furthermore, our business model, which combines the originations in the servicing segments, provides for a natural hedge over time as rate declines should translate into higher originations, both purchase and refinances. Our balance sheet remains strong and provides us with the flexibility to continue to invest in our growth.
Turning to liquidity as of March 31, cash and cash equivalents totaled $112 million while unutilized loan funding capacity was $1.5 billion and the unutilized mortgage servicing rights lines of credit was $195 million based on total committed amounts and borrowing base limitations. Maintaining a well-positioned balance sheet continues to be a key priority for guild.
Our leverage ratio was 1.6 times at quarter end, a strong indicator of our financial stewardship. Tangible net book value per share was $15.77. We are confident in our ability to navigate any market environment while simultaneously making strategic investments to enhance our long-term value proposition. In addition, we continued our efforts to return capital to shareholders.
Specifically, during the first quarter, we repurchased approximately 35,000 shares at an average stock price of $12.94 per share. As of March 31, 2025, there was $9.5 million remaining under the original $20 million share repurchase authorization. Additionally, as discussed on our last call during the first quarter, the company's board of directors declared and paid a special cash dividend of $0.50 per share on the company's Class A and Class B common stock.
In April, we generated $2.3 billion of loan originations and $2.5 billion of pull through adjusted lock volume. As we look ahead, we recognize that market conditions may continue to show fluctuations. Yet we're encouraged by our sustained momentum and growing market share, particularly the strength we're seeing in our originations business.
Our strategic investments and platform development combined with successful organic growth initiatives and targeted acquisitions position as well to deepen our lasting customer relationships. While the broader market recovery continues to progress gradually, we remain patient and focused on our long-term vision. We have full confidence that our enhanced platform and strategic positioning will drive accelerated growth as market conditions normalized.
And with that we'll open up the call for questions, operator.

Question and Answer Session

Operator

(Operator Instructions)
Rick Shane, JP Morgan.

Rick Shane

Hey everybody, thanks for taking my questions. Look, it looks to me like the amortization expense on the MSR was down fairly sharply when you net out the the marks. Can you help us understand that and sort of think about how to model that going forward because there were some pretty significant variants versus our model, given where we thought speeds were?

Terry Schmidt

Amber, do you want to take that?

Desiree Kramer

Yeah, overall, and pre-payments were down, year, quarter over quarter, and so, the payoff did go down slightly from a payoff percentage, and the rate is running off at at the same. In terms of value, but the payoffs were down overall. The first release percentage was 40%, so slightly higher when you're looking in your role forward on the portfolio overall so keep that in mind as well.

Rick Shane

Got it. Okay, yeah, I have the amortization expense down. About 35% quarter over quarter, and I just didn't think speeds had moved that much.

Desiree Kramer

They did with the refis in Q4 being up from October, that we had and so with that has impacted some of the actual runoff percentages on the payoff side.

Rick Shane

Got it. And so it's really a timing issue of when rates moved in the first quarter, at the end. Okay, that actually makes sense to me. And then, look, I know you guys don't provide, specific guidance, but curious as we sort of move, we're pretty deep into second quarter now, what you guys are seeing in terms of margins and and how we should be thinking about the dynamics currently.

Desiree Kramer

Yeah, overall we're not really -- yeah, we're not really seeing any changes that are any different than what we've, seen in the past. So you know we've talked about this 330 to 340, so although we don't provide guidance, if you look historically we're still running around that we had, our gain on sale map margins, we have the typical seasonality that we had in Q1. There was a pick up over Q4 which when you look back, it is the same as it's always been. It was exasperated by the market volatility in Q4 versus Q1, but overall, on average, we're still running around that same 330 to 340, and we don't see any changes, that would affect that number.

Operator

Don Fandetti, Wells Fargo.

Don Fandetti

Hi, I was just curious if you're thinking of any impact to your business with the rocket acquisition of Redfin and Mr. Cooper. Obviously, you already have an origination and a pretty substantial servicing business, but is there anything that you are thinking about differently strategically?

Terry Schmidt

I think we've been focused on, trying to engage the customer earlier in the process, which is exactly, what they're -- we're trying to focus on with the Redfin transaction, and as well as Cooper, so you know that I think we're continuing to look at and try to figure out ways that we can. Get to the top of the funnel faster, but you know we're -- we've been focused on, as local presence, local fulfillment and sales, and specific to purchase business, and you know we're still have such a big GAAP in the purchase business and you know our.
Our studies that we've looked at still, imply that a customer at the local level still has a good need for that local presence and expertise and you know we've continued to build and use any type of surveys that we have, the trust factor is huge for us and we continue to rank very high in trust. So, we feel like it's still, we're still in a really good position and, I kudos to rock it for the transaction, but I think we all have.
The type of customer that customers that you know we're suited for and for us it's that first time home buyer that really needs, more handholding along the way and our brand at the local the local areas that we serve, our brand is stronger than it's ever been, so we feel good about where we're at.

Operator

Michael Goldberg, Citizens JMP.

Michael Goldberg

Hi, good afternoon, and thanks for taking the question. Really kind of wondering, how you, what your thoughts are on growth going forward, organic and versus acquisition in the latter case, what are your thoughts on sort of the landscape for potential acquisitions at the moment as you see it? Thanks.

Terry Schmidt

Yeah, on the acquisition front, we're always talking to a lot of suitors, I should say. But we're pretty selective to make sure that we get the right people, once we make a decision to acquire. So it's a long process. Sometimes we're talking to people for six months, sometimes it's two years, so we're constantly, out there looking and vetting and getting to know people and making sure that we make the right decision along the way. I would say that this first, almost half of the year, the organic, side of the equation for us has been stronger than the M&A, but we're constantly doing both and, our like I said in the prior question. Our brand is extremely strong. There's still a lot across the country that we can conquer and so we're going to continue to work on growing the share.

David Neylan

Yeah, and this is David here. I would just add to Terry's comment that on the organic recruiting side we're definitely seeing a little bit of a flight to quality, particularly as our percentage of purchase businesses continue to increase. Last year we were at 88% versus the NBA average at 72%. And as I mentioned in some of my comments earlier, according to MMI records, the value proposition here at Guild Mortgage, whether it's via acquisition or through the organic recruitment, is very attractive, and it's been proven out to show that loan officers at Guild on average experience 30% more productivity than the industry average. So we're having great success in both, and heavily focused in both areas.

Operator

Eric Hagan, BTIG.

Jake Katsikas

Hey, this is actually Jake Katsikas on for Eric Hagan. Thanks for taking my questions. Wanted to see if you guys had any color on loan officer compensation rules which might change with the new rulemaking and just how that could impact margins.

Terry Schmidt

We're -- we haven't changed anything as far as, our loan officer compensation. I think what you're going to see is with the change in the administration, you may see some originators taking different positions on comp. We're going to follow the regulations. I think some of those memorandums that the CFPB came out with prior that those there's interpretations there that I think maybe some will be a little bit more aggressive going forward with the changes, but, we're pretty much status quo and don't see that's going to be impactful for us or our competition.

Jake Katsikas

Got you. Okay, thank you. And then do you have any perspectives on home prices and the effective tariffs on housing values and just kind of whether you see it driving a longer term impact on asset valuations?

Terry Schmidt

Yeah, the tariffs, I mean, I think we're still the jury's out a little bit, and I think we'll know a lot more in the next 90 days, obviously I think the cost of construction is, that's always a concern. With new construction and I think even today, this last 90 days that the inventory of home building and homes that have been final, it's growing a little bit. So I mean we're seeing that the values have been pretty stable in a few markets they're kind of declining a little bit, but we're not seeing that much change and we don't see that's going to impact, our volume much either way, either up or down.

Operator

I would like to turn the floor over to Terry Schmidt for closing remarks.

Terry Schmidt

Thank you, everybody for being on the call and listening to our performance. We're happy with what we accomplished in the first quarter and we're looking forward to telling our story next quarter. Thank you.

Operator

This concludes today's teleconference, you may disconnect your minds at this time and thank you for your participation.