UWMC UWM Holdings Corporation

First Quarter Loan Origination Volume of $22.3 billion, including Purchase Volume of $19.2 billion

Best First Quarter Purchase Volume in Company History

Gain Margin up 80% from Prior Quarter

UWM Holdings Corporation (NYSE: UWMC) (the "Company"), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), today announced its results for the first quarter ended March 31, 2023. Total loan origination volume for the first quarter was $22.3 billion, of which $19.2 billion was purchase volume. The Company reported a 1Q23 net loss of $138.6 million, inclusive of a $337 million decline in fair value of MSRs, and diluted loss per share of $0.13.

Mat Ishbia, Chairman and CEO of UWMC, said, "The results of the first quarter again demonstrate that UWM will do what we say we are going to do. We are on track with our plan and extremely well-positioned to take advantage of the next upcycle. Production volume was at the high end of our expectations, setting us up for a better 2023 than originally anticipated. We had another dominant purchase quarter. We continued to arm brokers with great new product launches, positioning them to win in any market environment, and bolstering channel growth. While we can't control interest rates or the effect of those fluctuations on our MSR portfolio, we can control our operational profitability and have demonstrated that our business model performs despite the natural cyclicality that occurs in the mortgage industry. I am excited for what UWM has in store for the rest of 2023 and beyond."

• Originations of $22.3 billion in 1Q23, compared to $25.1 billion in 4Q22 and $38.8 billion in 1Q22
• Purchase originations of $19.2 billion in 1Q23, compared to $21.7 billion in 4Q22 and $19.1 billion in 1Q22. Notably, that is the highest first quarter purchase volume in UWM history
• Total gain margin of 92 bps in 1Q23 compared to 51 bps in 4Q22 and 99 bps in 1Q22
• Adjusted EBITDA of $141.0 million in 1Q23 compared to $60.4 million in 4Q22 and $128.4 million in 1Q22
• Net loss of $138.6 million in 1Q23 compared to a net loss of $62.5 million in 4Q22 and $453.3 million of net income in 1Q22
• Total equity of $2.9 billion at March 31, 2023, compared to $3.2 billion at each of December 31, 2022, and March 31, 2022
• Unpaid principal balance of MSRs of $297.9 billion with a WAC of 3.66% at March 31, 2023, compared to $312.5 billion with a WAC of 3.64% at December 31, 2022, and $303.4 billion with a WAC of 3.04% at March 31, 2022
• Ended 1Q23 with approximately $2.9 billion of available liquidity, including $1.0 billion of cash and self-warehouse, and $1.9 billion of available borrowing capacity, which includes $1.4 billion under lines of credit secured by agency and Ginnie Mae MSRs, and $500 million under an unsecured line of credit

Production and Income Statement Highlights (dollars in thousands, except per share amounts)

 

 

Q1 2023

 

Q4 2022

 

Q1 2022

Loan origination volume(1)

 

$

22,335,014

 

 

$

25,126,844

 

 

$

38,812,329

 

Total gain margin(1)(2)

 

 

0.92

%

 

 

0.51

%

 

 

0.99

%

Net income (loss)

 

$

(138,613

)

 

$

(62,484

)

 

$

453,287

 

Diluted EPS

 

 

(0.13

)

 

 

(0.03

)

 

 

0.22

 

Adjusted diluted EPS(3)

 

 

(0.07

)

 

 

N/A

 

 

 

N/A

 

Adjusted net income(3)

 

 

(106,625

)

 

 

(53,308

)

 

 

352,008

 

Adjusted EBITDA(3)

 

 

140,994

 

 

 

60,393

 

 

 

128,407

 

(1) Key operational metric (see discussion below).

(2) Represents total loan production income divided by loan origination volume.

(3) Non-GAAP metric (see discussion and reconciliations below).

Balance Sheet Highlights as of Period-end (dollars in thousands)

 

 

Q1 2023

 

Q4 2022

 

Q1 2022

Cash and cash equivalents

 

$

740,063

 

$

704,898

 

$

901,174

Mortgage loans at fair value

 

 

4,800,259

 

 

7,134,960

 

 

5,208,167

Mortgage servicing rights

 

 

3,974,870

 

 

4,453,261

 

 

3,514,102

Total assets

 

 

10,947,716

 

 

13,600,625

 

 

10,990,953

Non-funding debt (1)

 

 

2,623,962

 

 

2,880,178

 

 

2,156,641

Total equity

 

 

2,874,542

 

 

3,171,693

 

 

3,166,242

Non-funding debt to equity (1)

 

 

0.91

 

 

0.91

 

 

0.68

(1) Non-GAAP metric (see discussion and reconciliations below).

Mortgage Servicing Rights (dollars in thousands)

 

 

Q1 2023

 

Q4 2022

 

Q1 2022

Unpaid principal balance

 

$

297,906,035

 

 

$

312,454,025

 

 

$

303,425,697

 

Weighted average interest rate

 

 

3.66

%

 

 

3.64

%

 

 

3.04

%

Weighted average age (months)

 

 

18

 

 

 

16

 

 

 

12

 

Technology and Loan Product Launches

• TRAC Enhancement - added two additional settlement agents to our Title Review and Closing ("TRAC") program. Now loan officers can choose from three UWM-approved settlement agents and pay a low flat fee
• Control Your Price - launched Control Your Price, a pricing incentive that gives brokers access to 125 basis points to use when and where they need it, up to 40 basis points per loan
• One-Time Close New Construction Loans - released One-Time Close New Construction loans, making the new-build period as seamless as possible with one closing and one interest rate

Operational Highlights

• Achieved highest ever Net Promoter Score of +90.4 in 1Q23, up from +87.8 in 1Q22
• Our 0.98% 60+ days delinquency as of March 31, 2023, was significantly better than the industry average of 1.6%1, highlighting our strong credit quality

1 Source: CoreLogic (as of January 2023).

Product and Investor Mix - Unpaid Principal Balance of Originations (dollars in thousands)

Purchase:

 

Q1 2023

 

Q4 2022

 

Q1 2022

Conventional

 

$

12,969,966

 

$

15,030,972

 

$

13,297,954

Government

 

 

5,623,050

 

 

6,135,366

 

 

4,272,747

Jumbo and other

 

 

652,780

 

 

484,098

 

 

1,532,197

Total Purchase

 

$

19,245,796

 

$

21,650,436

 

$

19,102,898

 

 

 

 

 

 

 

Refinance:

 

Q1 2023

 

Q4 2022

 

Q1 2022

Conventional

 

$

1,869,911

 

$

2,254,680

 

$

15,597,602

Government

 

 

941,775

 

 

1,005,048

 

 

3,409,198

Jumbo and other

 

 

277,532

 

 

216,680

 

 

702,631

Total Refinance

 

$

3,089,218

 

$

3,476,408

 

$

19,709,431

Total Originations

 

$

22,335,014

 

$

25,126,844

 

$

38,812,329

Mat Ishbia, Chairman and CEO of UWMC, also said, “UWM is firing on all cylinders right now. Our product portfolio is very strong; we are currently hiring in large numbers, and margins are healthy.”

Second Quarter 2023 Outlook

We anticipate second quarter production to be in the $23 to $30 billion range, with gain margin from 75 to 100 basis points.

Dividend

Subsequent to March 31, 2023, for the tenth consecutive quarter, the Company's Board of Directors declared a cash dividend of $0.10 per share on the outstanding shares of Class A common stock. The dividend is payable on July 11, 2023, to stockholders of record at the close of business on June 21, 2023. Additionally, the Board approved a proportional distribution to SFS Corp., which is payable on or about July 11, 2023.

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Wednesday, May 10, at 10:30 AM ET to review the results and answer questions. Interested parties may register for a toll-free dial-in number by visiting:

• https://conferencingportals.com/event/tdzzjFGz

Please dial in at least 15 minutes in advance to ensure a timely connection to the call. Audio webcast, taped replay and a transcript will be available on the Company's investor relations website at https://investors.uwm.com/.

Key Operational Metrics

“Loan origination volume” and “Total gain margin” are key operational metrics that the Company's management uses to evaluate the performance of the business. “Loan origination volume” is the aggregate principal of the residential mortgage loans originated by the Company during a period. “Total gain margin” represents total loan production income divided by loan origination volume for the applicable periods.

Non-GAAP Metrics

The Company's net income does not reflect the income tax provision that would otherwise be reflected if 100% of the economic interest in UWM was owned by the Company. Therefore, for comparison purposes, the Company provides “Adjusted net income,” which is our pre-tax income adjusted for a 23.63% and 23.03% estimated annual effective tax rate for the periods during 2023 and 2022, respectively. “Adjusted net income” is a non-GAAP metric. "Adjusted diluted EPS" is defined as "Adjusted net income" divided by the weighted average number of shares of Class A common stock outstanding for the applicable period, assuming the exchange and conversion of all outstanding Class D common stock for Class A common stock, and is calculated and presented for periods in which the assumed exchange and conversion of Class D common stock to Class A common stock is anti-dilutive to EPS.

We also disclose Adjusted EBITDA, which we define as earnings before interest expense on non-funding debt, provision for income taxes, depreciation and amortization, stock-based compensation expense, the change in fair value of MSRs due to valuation inputs or assumptions, the impact of non-cash deferred compensation expense, the change in fair value of the Public and Private Warrants, the change in Tax Receivable Agreement liability and the change in fair value of retained investment securities. We exclude the change in Tax Receivable Agreement liability, the change in fair value of the Public and Private Warrants, the change in fair value of retained investment securities, and the change in fair value of MSRs due to valuation inputs or assumptions, as these represent non-cash, non-realized adjustments to our earnings, which is not indicative of our performance or results of operations. Adjusted EBITDA includes interest expense on funding facilities, which are recorded as a component of interest expense, as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.

In addition, we disclose “Non-funding debt” and the “Non-funding debt to equity ratio” as a non-GAAP metric. We define “Non-funding debt” as the total of the Company's senior notes, lines of credit, borrowings against investment securities, equipment note payable, and finance leases and the “Non-funding debt-to-equity ratio” as total non-funding debt divided by the Company’s total equity.

Management believes that these non-GAAP metrics provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.

The following tables set forth the reconciliations of these non-GAAP financial measures to their most directly comparable financial measure calculated in accordance with GAAP (dollars in thousands, except per share amounts):

Adjusted net income

 

Q1 2023

 

Q4 2022

 

Q1 2022

Earnings before income taxes

 

$

(139,616

)

 

$

(69,258

)

 

$

457,332

 

Impact of estimated annual effective tax rate of 23.63% and 23.03% for periods during 2023 and 2022, respectively

 

 

32,991

 

 

 

15,950

 

 

 

(105,324

)

Adjusted net income

 

$

(106,625

)

 

$

(53,308

)

 

$

352,008

 

Adjusted diluted EPS

 

Q1 2023

Diluted weighted average Class A common stock outstanding

 

 

92,920,794

 

Assumed pro forma conversion of Class D common stock (1)

 

 

1,502,069,787

 

Adjusted diluted weighted average shares outstanding (1)

 

 

1,594,990,581

 

 

 

 

Adjusted net income

 

$

(106,625

)

Adjusted diluted EPS

 

 

(0.07

)

 

 

 

(1) Reflects the pro forma exchange and conversion of antidilutive Class D common stock to Class A common stock.

Adjusted EBITDA

 

Q1 2023

 

Q4 2022

 

Q1 2022

Net income

 

$

(138,613

)

 

$

(62,484

)

 

$

453,287

 

Interest expense on non-funding debt

 

 

42,703

 

 

 

43,611

 

 

 

29,558

 

Provision for income taxes

 

 

(1,003

)

 

 

(6,774

)

 

 

4,045

 

Depreciation and amortization

 

 

11,670

 

 

 

11,713

 

 

 

10,915

 

Stock-based compensation expense

 

 

2,482

 

 

 

2,055

 

 

 

1,828

 

Change in fair value of MSRs due to valuation inputs or assumptions

 

 

222,915

 

 

 

71,865

 

 

 

(390,980

)

Deferred compensation, net

 

 

1,081

 

 

 

461

 

 

 

12,252

 

Change in fair value of Public and Private Warrants

 

 

2,098

 

 

 

54

 

 

 

(4,132

)

Change in Tax Receivable Agreement liability

 

 

250

 

 

 

—

 

 

 

700

 

Change in fair value of investment securities

 

 

(2,589

)

 

 

(108

)

 

 

10,934

 

Adjusted EBITDA

 

$

140,994

 

 

$

60,393

 

 

$

128,407

 

Non-funding debt and non-funding debt to equity

 

Q1 2023

 

Q4 2022

 

Q1 2022

Senior notes

 

$

1,985,319

 

$

1,984,336

 

$

1,981,106

Borrowings against investment securities

 

 

101,345

 

 

101,345

 

 

118,786

Secured lines of credit

 

 

500,000

 

 

750,000

 

 

—

Equipment note payable

 

 

486

 

 

992

 

 

1,803

Finance lease liability

 

 

36,812

 

 

43,505

 

 

54,945

Total non-funding debt

 

$

2,623,962

 

$

2,880,178

 

$

2,156,640

Total equity

 

$

2,874,542

 

$

3,171,693

 

$

3,166,242

Non-funding debt to equity

 

 

0.91

 

 

0.91

 

 

0.68

Cautionary Note Regarding Forward-Looking Statements

This press release and our earnings call include forward-looking statements. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict” and similar words indicating that these reflect our views with respect to future events. Forward-looking statements in this press release and our earnings call include statements regarding: (1) our position amongst our competitors and ability to capture market share; (2) growth of the wholesale and broker channels, the impact of our strategies on such growth and the benefits to our business of such growth; (3) our growth and strategies to remain the leading mortgage lender, and the timing and drivers of that growth; (4) the benefits and liquidity of our MSR portfolio; (5) our beliefs related to the amount and timing of our dividend; (6) our foundation for success and strategies growth and the drivers of that growth; (7) our expectations related to production and margin in the second quarter of 2023; (8) the benefits of our business model and strategies, including our “Game On” and “All In” initiatives, and their impact on our results and the industry in 2023 and beyond; (9) our performance in shifting market conditions and the comparison of such performance against our competitors; (10) our ability to produce results in future years at or above prior levels or expectations, and our strategies for producing such results; (11) our position and ability to capitalize on market opportunities and the impacts to our results; (12) our investments in technology and the impact to our operations and financial results and (13) our purchase production and product portfolio. These statements are based on management’s current expectations, but are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results materially differ from those stated or implied in the forward-looking statements, including; (i) UWM’s dependence on macroeconomic and U.S. residential real estate market conditions, including changes in U.S. monetary policies that affect interest rates; (ii) UWM’s reliance on its warehouse and MSR facilities and the risk of a decrease in the value of the collateral underlying certain of its facilities causing an unanticipated margin call; (iii) UWM’s ability to sell loans in the secondary market; (iv) UWM’s dependence on the government-sponsored entities such as Fannie Mae and Freddie Mac; (v) changes in the GSEs, FHA, USDA and VA guidelines or GSE and Ginnie Mae guarantees; (vi) UWM’s dependence on Independent Mortgage Advisors to originate mortgage loans; (vii) the risk that an increase in the value of the MBS UWM sells in forward markets to hedge its pipeline may result in an unanticipated margin call; (viii) UWM’s inability to continue to grow, or to effectively manage the growth of its loan origination volume; (ix) UWM’s ability to continue to attract and retain its broker relationships; (x) UWM’s ability to implement technological innovation; (xi) UWM’s ability to continue to comply with the complex state and federal laws, regulations or practices applicable to mortgage loan origination and servicing in general; and (xii) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission including those under “Risk Factors” therein. With respect to expectations regarding the share repurchase program, the amount and timing of share repurchases will depend upon, among other things, market conditions, share price, liquidity targets and regulatory requirements. We wish to caution readers that certain important factors may have affected and could in the future affect our results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of us. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

About UWM Holdings Corporation and United Wholesale Mortgage

Headquartered in Pontiac, Michigan, UWM Holdings Corporation (UWMC) is the publicly traded indirect parent of United Wholesale Mortgage, LLC (“UWM”). UWM is the nation’s largest home mortgage lender, despite exclusively originating mortgage loans through the wholesale channel. UWM has been the largest wholesale mortgage lender for eight consecutive years and is also the largest purchase lender in the nation. With a culture of continuous innovation of technology and enhanced client experience, UWM leads the market by building upon its proprietary and exclusively licensed technology platforms, superior service and focused partnership with the independent mortgage broker community. UWM originates primarily conforming and government loans across all 50 states and the District of Columbia. For more information, visit uwm.com or call 800-981-8898. NMLS #3038.

 

UWM HOLDINGS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except shares and per share amounts)

 

 

March 31, 2023

 

December 31, 2022

Assets

(Unaudited)

 

 

Cash and cash equivalents

$

740,063

 

$

704,898

Mortgage loans at fair value

 

4,800,259

 

 

7,134,960

Derivative assets

 

61,136

 

 

82,869

Investment securities at fair value, pledged

 

114,275

 

 

113,290

Accounts receivable, net

 

433,747

 

 

383,147

Mortgage servicing rights

 

3,974,870

 

 

4,453,261

Premises and equipment, net

 

152,428

 

 

152,477

Operating lease right-of-use asset, net

(includes $101,146 and $102,322 with related parties)

 

102,923

 

 

104,181

Finance lease right-of-use asset

(includes $26,351 and $26,867 with related parties)

 

38,320

 

 

42,218

Loans eligible for repurchase from Ginnie Mae

 

440,775

 

 

345,490

Other assets

 

88,920

 

 

83,834

Total assets

$

10,947,716

 

$

13,600,625

Liabilities and Equity

 

 

 

Warehouse lines of credit

$

4,259,834

 

$

6,443,992

Derivative liabilities

 

62,742

 

 

49,748

Secured line of credit

 

500,000

 

 

750,000

Borrowings against investment securities

 

101,345

 

 

101,345

Accounts payable, accrued expenses and other

 

416,818

 

 

439,719

Accrued distributions and dividends payable

 

159,517

 

 

159,465

Senior notes

 

1,985,319

 

 

1,984,336

Operating lease liability

(includes $108,234 and $109,473 with related parties)

 

110,012

 

 

111,332

Finance lease liability

(includes $27,460 and $27,857 with related parties)

 

36,812

 

 

43,505

Loans eligible for repurchase from Ginnie Mae

 

440,775

 

 

345,490

Total liabilities

 

8,073,174

 

 

10,428,932

Equity:

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of March 31, 2023 or 2022

 

—

 

 

—

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,101,971 and 92,575,974 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively

 

9

 

 

9

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of March 31, 2023 or 2022

 

—

 

 

—

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of March 31, 2023 or 2022

 

—

 

 

—

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,502,069,787 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively

 

150

 

 

150

Additional paid-in capital

 

1,036

 

 

903

Retained earnings

 

122,136

 

 

142,500

Non-controlling interest

 

2,751,211

 

 

3,028,131

Total equity

 

2,874,542

 

 

3,171,693

Total liabilities and equity

$

10,947,716

 

$

13,600,625

 

UWM HOLDINGS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

Revenue

 

 

 

 

 

Loan production income

$

205,424

 

 

$

129,180

 

 

$

383,871

Loan servicing income

 

218,557

 

 

 

217,225

 

 

 

198,565

Change in fair value of mortgage servicing rights

 

(337,287

)

 

 

(150,808

)

 

 

171,963

Interest income

 

74,580

 

 

 

106,837

 

 

 

67,395

Total revenue, net

 

161,274

 

 

 

302,434

 

 

 

821,794

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

121,003

 

 

 

118,266

 

 

 

160,609

Direct loan production costs

 

16,483

 

 

 

17,396

 

 

 

26,718

Marketing, travel, and entertainment

 

17,210

 

 

 

22,976

 

 

 

12,837

Depreciation and amortization

 

11,670

 

 

 

11,713

 

 

 

10,915

General and administrative

 

34,619

 

 

 

49,668

 

 

 

38,323

Servicing costs

 

36,862

 

 

 

36,809

 

 

 

47,184

Interest expense

 

63,284

 

 

 

114,918

 

 

 

60,374

Other expense/(income)

 

(241

)

 

 

(54

)

 

 

7,502

Total expenses

 

300,890

 

 

 

371,692

 

 

 

364,462

Earnings before income taxes

 

(139,616

)

 

 

(69,258

)

 

 

457,332

(Benefit) provision for income taxes

 

(1,003

)

 

 

(6,774

)

 

 

4,045

Net (loss) income

 

(138,613

)

 

 

(62,484

)

 

 

453,287

Net (loss) income attributable to non-controlling interest

 

(126,672

)

 

 

(62,207

)

 

 

431,357

Net (loss) income attributable to UWMC

$

(11,941

)

 

$

(277

)

 

$

21,930

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock:

 

 

 

 

 

Basic

$

(0.13

)

 

$

—

 

 

$

0.24

Diluted

$

(0.13

)

 

$

(0.03

)

 

$

0.22

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

92,920,794

 

 

 

92,575,549

 

 

 

92,214,594

Diluted

 

92,920,794

 

 

 

1,594,645,336

 

 

 

1,594,284,381

Addendum to Exhibit 99.1

This addendum includes the Company's Consolidated Balance Sheets as of March 31, 2023, and the preceding four quarters and Statements of Operations for the quarter ended March 31, 2023, and the preceding four quarters for purposes of providing historical quarterly trending information to investors.

CONSOLIDATED BALANCE SHEETS

(in thousands, except shares and per share amounts)

 

 

March 31, 2023

December 31, 2022

September 30, 2022

June 30, 2022

March 31, 2022

Assets

(Unaudited)

 

(Unaudited)

(Unaudited)

(Unaudited)

Cash and cash equivalents

$

740,063

$

704,898

$

799,534

$

958,656

$

901,174

Mortgage loans at fair value

 

4,800,259

 

7,134,960

 

5,031,068

 

5,022,806

 

4,824,165

Derivative assets

 

61,136

 

82,869

 

385,348

 

125,079

 

241,932

Investment securities at fair value, pledged

 

114,275

 

113,290

 

115,079

 

125,193

 

138,417

Accounts receivable, net

 

433,747

 

383,147

 

556,153

 

350,090

 

617,608

Mortgage servicing rights

 

3,974,870

 

4,453,261

 

4,305,686

 

3,736,359

 

3,514,102

Premises and equipment, net

 

152,428

 

152,477

 

152,172

 

153,971

 

151,206

Operating lease right-of-use asset, net

 

102,923

 

104,181

 

101,377

 

102,533

 

103,670

Finance lease right-of-use asset

 

38,320

 

42,218

 

45,667

 

50,179

 

53,857

Loans eligible for repurchase from Ginnie Mae

 

440,775

 

345,490

 

310,149

 

309,577

 

384,002

Other assets

 

88,920

 

83,834

 

87,850

 

82,467

 

60,820

Total assets

$

10,947,716

$

13,600,625

$

11,890,083

$

11,016,910

$

10,990,953

Liabilities and Equity

 

 

 

 

 

Warehouse lines of credit

$

4,259,834

$

6,443,992

$

4,712,719

$

4,497,353

$

4,076,829

Derivative liabilities

 

62,742

 

49,748

 

215,330

 

93,958

 

115,430

Secured line of credit

 

500,000

 

750,000

 

—

 

—

 

—

Borrowings against investment securities

 

101,345

 

101,345

 

114,875

 

118,786

 

118,786

Accounts payable, accrued expenses and other

 

416,818

 

439,719

 

846,905

 

470,017

 

897,568

Accrued distributions and dividends payable

 

159,517

 

159,465

 

159,465

 

159,461

 

159,460

Senior notes

 

1,985,319

 

1,984,336

 

1,983,099

 

1,982,103

 

1,981,106

Operating lease liability

 

110,012

 

111,332

 

108,591

 

109,811

 

111,010

Finance lease liability

 

36,812

 

43,505

 

46,917

 

51,370

 

54,945

Loans eligible for repurchase from Ginnie Mae

 

440,775

 

345,490

 

310,149

 

310,149

 

309,577

Total liabilities

 

8,073,174

 

10,428,932

 

8,498,050

 

7,793,008

 

7,824,711

Equity:

 

 

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of March 31, 2023 or 2022

 

—

 

—

 

—

 

—

 

—

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,101,971 and 92,575,974 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively

 

9

 

9

 

9

 

9

 

9

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of March 31, 2023 or 2022

 

—

 

—

 

—

 

—

 

—

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of March 31, 2023 or 2022

 

—

 

—

 

—

 

—

 

—

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,502,069,787 shares issued and outstanding as of March 31, 2023 and December 31, 2022

 

150

 

150

 

150

 

150

 

150

Additional paid-in capital

 

1,036

 

903

 

784

 

669

 

542

Retained earnings

 

122,136

 

142,500

 

141,194

 

137,955

 

138,834

Non-controlling interest

 

2,751,211

 

3,028,131

 

3,249,896

 

3,085,119

 

3,026,707

Total equity

 

2,874,542

 

3,171,693

 

3,392,033

 

3,223,902

 

3,166,242

Total liabilities and equity

$

10,947,716

$

13,600,625

$

11,890,083

$

11,016,910

$

10,990,953

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

March 31, 2023

December 31, 2022

September 30, 2022

June 30, 2022

March 31, 2022

Revenue

 

 

 

 

 

Loan production income

$

205,424

 

$

129,180

 

$

172,402

$

296,535

$

383,871

Loan servicing income

 

218,557

 

 

217,225

 

 

196,781

 

179,501

 

198,565

Change in fair value of mortgage servicing rights

 

(337,287

)

 

(150,808

)

 

236,780

 

26,169

 

171,963

Interest income

 

74,580

 

 

106,837

 

 

78,210

 

62,020

 

67,395

Total revenue, net

 

161,274

 

 

302,434

 

 

684,173

 

564,225

 

821,794

Expenses

 

 

 

 

 

 

Salaries, commissions and benefits

 

121,003

 

 

118,266

 

 

135,028

 

138,983

 

160,609

Direct loan production costs

 

16,483

 

 

17,396

 

 

20,498

 

25,757

 

26,718

Marketing, travel, and entertainment

 

17,210

 

 

22,976

 

 

17,730

 

20,625

 

12,837

Depreciation and amortization

 

11,670

 

 

11,713

 

 

11,426

 

11,181

 

10,915

General and administrative

 

34,619

 

 

49,668

 

 

51,649

 

39,909

 

38,323

Servicing costs

 

36,862

 

 

36,809

 

 

37,596

 

44,435

 

47,184

Interest expense

 

63,284

 

 

114,918

 

 

73,136

 

57,559

 

60,374

Other expense/(income)

 

(241

)

 

(54

)

 

6,729

 

9,562

 

7,502

Total expenses

 

300,890

 

 

371,692

 

 

353,792

 

348,011

 

364,462

Earnings before income taxes

 

(139,616

)

 

(69,258

)

 

330,381

 

216,214

 

457,332

(Benefit) provision for income taxes

 

(1,003

)

 

(6,774

)

 

4,771

 

769

 

4,045

Net (loss) income

 

(138,613

)

 

(62,484

)

 

325,610

 

215,445

 

453,287

Net (loss) income attributable to non-controlling interest

 

(126,672

)

 

(62,207

)

 

313,914

 

207,079

 

431,357

Net (loss) income attributable to UWMC

$

(11,941

)

$

(277

)

$

11,696

$

8,366

$

21,930

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock:

 

 

 

 

 

Basic

$

(0.13

)

$

—

 

$

0.13

$

0.09

$

0.24

Diluted

$

(0.13

)

$

(0.03

)

$

0.13

$

0.09

$

0.22

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

92,920,794

 

 

92,575,549

 

 

92,571,886

 

92,533,620

 

92,214,594

Diluted

 

92,920,794

 

 

1,594,645,336

 

 

92,571,886

 

92,533,620

 

1,594,284,381

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005376/en/

For inquiries regarding UWM, please contact:

INVESTOR CONTACT BLAKE KOLO InvestorRelations@uwm.com

MEDIA CONTACT NICOLE ROBERTS Media@uwm.com