UWMC UWM Holdings Corporation

Second Quarter Loan Origination Volume of $31.8 billion, including Purchase Volume of $28.0 billion, the largest quarterly purchase production in the Company's history

UWM Holdings Corporation (NYSE: UWMC) (the "Company"), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), today announced its results for the second quarter ended June 30, 2023. Total loan origination volume for the second quarter was $31.8 billion, of which $28.0 billion was purchase volume. The Company reported 2Q23 net income of $228.8 million, inclusive of a $24.6 million increase in fair value of MSRs and diluted earnings per share of $0.08.

Mat Ishbia, Chairman and CEO of UWMC, said, "UWM continues to prove that regardless of the interest rate environment, our business model, coupled with the broker channel being the best place for a consumer to get a loan and the best place for a loan officer to work, is a winning formula. Unlike others that are more reactive to cyclical market conditions, we will continue to be aggressive in our technology and product investments. We are hiring right now, whereas the industry as a whole is continuing to cut back on capacity. Despite a historic decline in industry-wide origination volume during 2023, UWM remains profitable. Other management teams seem to have forgotten that during a mortgage boom, the majority of the opportunity is in the first six months. Companies that are not prepared for those events react late, hire late, train late and miss most of the opportunity. UWM is doing the work and making the investment now to make the most of the opportunity when it inevitably comes while continuing to be profitable and continuing to reward our shareholders with a regular dividend."

• Originations of $31.8 billion in 2Q23, compared to $22.3 billion in 1Q23 and $29.9 billion in 2Q22
• Purchase originations of $28.0 billion in 2Q23, compared to $19.2 billion in 1Q23 and $22.4 billion in 2Q22
• Total gain margin of 88 bps in 2Q23 compared to 92 bps in 1Q23 and 99 bps in 2Q22
• Net income of $228.8 million in 2Q23 compared to a net loss of $138.6 million in 1Q23 and $215.4 million of net income in 2Q22
• Adjusted EBITDA of $125.4 million in 2Q23 compared to $141.0 million in 1Q23 and $95.0 million in 2Q22
• Total equity of $2.9 billion at June 30, 2023, compared to $2.9 billion at March 31, 2023, and $3.2 billion at June 30, 2022
• Unpaid principal balance of MSRs of $294.9 billion with a WAC of 3.84% at June 30, 2023, compared to $297.9 billion with a WAC of 3.66% at March 31, 2023, and $308.1 billion with a WAC of 3.19% at June 30, 2022
• Ended 2Q23 with approximately $2.8 billion of available liquidity, including $0.9 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)

 

 

Q2 2023

 

Q1 2023

 

Q2 2022

Loan origination volume(1)

 

$

31,846,800

 

 

$

22,335,014

 

 

$

29,881,809

 

Total gain margin(1)(2)

 

 

0.88

%

 

 

0.92

%

 

 

0.99

%

Net income (loss)

 

$

228,794

 

 

$

(138,613

)

 

$

215,445

 

Diluted EPS

 

 

0.08

 

 

 

(0.13

)

 

 

0.09

 

Adjusted diluted EPS(3)

 

 

0.11

 

 

 

(0.07

)

 

 

0.10

 

Adjusted net income(3)

 

 

175,953

 

 

 

(106,806

)

 

 

165,274

 

Adjusted EBITDA(3)

 

 

125,380

 

 

 

140,994

 

 

 

94,994

 

(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)

 

 

Q2 2023

 

Q1 2023

 

Q2 2022

Cash and cash equivalents

 

$

634,576

 

$

740,063

 

$

958,656

Mortgage loans at fair value

 

 

6,269,924

 

 

4,800,259

 

 

5,332,383

Mortgage servicing rights

 

 

4,224,207

 

 

3,974,870

 

 

3,736,359

Total assets

 

 

12,425,919

 

 

10,947,716

 

 

11,016,910

Non-funding debt (1)

 

 

2,623,991

 

 

2,623,962

 

 

2,153,795

Total equity

 

 

2,947,122

 

 

2,874,542

 

 

3,223,902

Non-funding debt to equity (1)

 

 

0.89

 

 

0.91

 

 

0.67

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

Mortgage Servicing Rights (dollars in thousands)

 

 

Q2 2023

 

Q1 2023

 

Q2 2022

Unpaid principal balance

 

$

294,945,929

 

 

$

297,906,035

 

 

$

308,093,311

 

Weighted average interest rate

 

 

3.84

%

 

 

3.66

%

 

 

3.19

%

Weighted average age (months)

 

 

20

 

 

 

18

 

 

 

13

 

Technology and Loan Product Launches

• Conventional 1% Down: Allows borrowers with less than 80 percent of the area median income (AMI) to qualify. Those who qualify will put down 1 percent of the loan toward their down payment and UWM will then pay a 2 percent grant up to $4,000, for a total down payment of 3 percent.
• UWM Portal: A bi-directional API that allows independent mortgage brokers to seamlessly link their Loan Origination System (LOS) platform to UWM’s EASE system, further streamlining the loan process.
• PA+: A service that offers an additional level of loan processing support when needed. When an LO or processor orders PA+, they receive a dedicated UWM Loan Coordinator who will work with them and their borrower to help, scrub, order and send docs.
• Expanded Jumbo Offerings: UWM now offers a suite of fixed-rate jumbo products, giving brokers the flexibility to tailor a fixed jumbo loan to best serve each borrower’s needs.
• Bank Statement Loans: Four new Bank Statement loan offerings, giving brokers increased transparency into investor guidelines and borrower qualifications, helping brokers find the right option for their self-employed borrowers.

Operational Highlights

• Achieved Net Promoter Score of +88.0 in 2Q23
• Our 0.99% 60+ days delinquency as of June 30, 2023, was significantly better than the industry average of 1.47%1
• UWM LIVE!: UWM hosted over 6,000 independent mortgage brokers and real estate agents at the annual UWM LIVE! event, which included speakers from across the country such as Tony Robbins and Tarek El Moussa

1 Source: TransUnion (as of June 2023).

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

Purchase:

 

Q2 2023

 

Q1 2023

 

Q2 2022

Conventional

 

$

17,607,736

 

$

12,969,966

 

$

14,891,850

Government

 

 

9,184,089

 

 

5,623,050

 

 

5,773,192

Jumbo and other (1)

 

 

1,243,350

 

 

652,780

 

 

1,718,616

Total Purchase

 

$

28,035,175

 

$

19,245,796

 

$

22,383,658

 

 

 

 

 

 

 

Refinance:

 

Q2 2023

 

Q1 2023

 

Q2 2022

Conventional

 

$

2,113,172

 

$

1,869,911

 

$

5,335,495

Government

 

 

1,336,350

 

 

941,775

 

 

1,780,263

Jumbo and other (1)

 

 

362,103

 

 

277,532

 

 

382,393

Total Refinance

 

$

3,811,625

 

$

3,089,218

 

$

7,498,151

Total Originations

 

$

31,846,800

 

$

22,335,014

 

$

29,881,809

 

 

 

 

 

 

 

(1) Comprised of non-agency jumbo products and non-qualified mortgage products, including home equity lines of credit ("HELOCs") (which in many instances are second liens) and construction loans.

Mat Ishbia, Chairman and CEO of UWMC, also said, "Our purchase volume continues to set UWM records and should be viewed as exceptionally positive by anyone who follows the mortgage industry. In an environment where our competitors are pulling back, UWM is originating more purchase volume than it has ever done. We said that we would outperform when market conditions are tough, and we have done exactly that, a testament to the strength of the wholesale channel and our value proposition to consumers.”

Third Quarter 2023 Outlook

We anticipate third quarter production to be in the $26 to $33 billion range, with gain margin from 75 to 100 basis points.

Dividend

Subsequent to June 30, 2023, for the eleventh 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 October 11, 2023, to stockholders of record at the close of business on September 20, 2023. Additionally, the Board approved a proportional distribution to SFS Corp., which is payable on or about October 11, 2023.

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Wednesday, August 9, 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/ywTxNUZf

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 23.50% 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

 

Q2 2023

 

Q1 2023

 

Q2 2022

Earnings before income taxes

 

$

230,004

 

 

$

(139,616

)

 

$

216,214

 

Impact of estimated annual effective tax rate of 23.50% and 23.03% for periods during 2023 and 2022, respectively

 

 

(54,051

)

 

 

32,810

 

 

 

(49,794

)

Adjusted net income

 

$

175,953

 

 

$

(106,806

)

 

$

166,420

 

Adjusted diluted EPS

 

Q2 2023

 

Q1 2023

 

Q2 2022

Diluted weighted average Class A common stock outstanding

 

 

93,107,133

 

 

92,920,794

 

 

 

92,533,620

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

 

 

1,502,069,787

 

 

1,502,069,787

 

 

 

1,502,069,787

Adjusted diluted weighted average shares outstanding (1)

 

 

1,595,176,920

 

 

1,594,990,581

 

 

 

1,594,603,407

 

 

 

 

 

 

 

Adjusted net income

 

$

175,953

 

$

(106,806

)

 

$

166,420

Adjusted diluted EPS

 

 

0.11

 

 

(0.07

)

 

 

0.10

 

 

 

 

 

 

 

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

Adjusted EBITDA

 

Q2 2023

 

Q1 2023

 

Q2 2022

Net income

 

228,794

 

 

(138,613

)

 

215,445

 

Interest expense on non-funding debt

 

42,756

 

 

42,703

 

 

29,692

 

Provision for income taxes

 

1,210

 

 

(1,003

)

 

769

 

Depreciation and amortization

 

11,441

 

 

11,670

 

 

11,181

 

Stock-based compensation expense

 

3,567

 

 

2,482

 

 

1,676

 

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

 

(164,526

)

 

222,915

 

 

(176,456

)

Deferred compensation, net

 

(564

)

 

1,081

 

 

3,125

 

Change in fair value of Public and Private Warrants

 

1,175

 

 

2,098

 

 

(2,850

)

Change in Tax Receivable Agreement liability

 

915

 

 

250

 

 

2,500

 

Change in fair value of investment securities

 

612

 

 

(2,589

)

 

9,912

 

Adjusted EBITDA

 

125,380

 

 

140,994

 

 

94,994

 

Non-funding debt and non-funding debt to equity

 

Q2 2023

 

Q1 2023

 

Q2 2022

Senior notes

 

$

1,986,301

 

$

1,985,319

 

$

1,982,103

Borrowings against investment securities

 

 

100,901

 

 

101,345

 

 

118,786

Secured lines of credit

 

 

500,000

 

 

500,000

 

 

—

Equipment note payable

 

 

433

 

 

486

 

 

1,536

Finance lease liability

 

 

36,356

 

 

36,812

 

 

51,370

Total non-funding debt

 

$

2,623,991

 

$

2,623,962

 

$

2,153,795

Total equity

 

$

2,947,122

 

$

2,874,542

 

$

3,223,902

Non-funding debt to equity

 

 

0.89

 

 

0.91

 

 

0.67

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 expectations for future market environments, including interest rates and levels of refinance activity; (7) our expectations related to production and margin in the third 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, ability to scale 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)

 

 

June 30, 2023

 

December 31, 2022

Assets

(Unaudited)

 

 

Cash and cash equivalents

$

634,576

 

$

704,898

Mortgage loans at fair value

 

6,269,924

 

 

7,134,960

Derivative assets

 

61,407

 

 

82,869

Investment securities at fair value, pledged

 

111,625

 

 

113,290

Accounts receivable, net

 

347,865

 

 

383,147

Mortgage servicing rights

 

4,224,207

 

 

4,453,261

Premises and equipment, net

 

149,515

 

 

152,477

Operating lease right-of-use asset, net

(includes $99,990 and $102,322 with related parties)

 

101,686

 

 

104,181

Finance lease right-of-use asset

(includes $25,835 and $26,867 with related parties)

 

34,947

 

 

42,218

Loans eligible for repurchase from Ginnie Mae

 

409,078

 

 

345,490

Other assets

 

81,089

 

 

83,834

Total assets

$

12,425,919

 

$

13,600,625

Liabilities and Equity

 

 

 

Warehouse lines of credit

$

5,732,791

 

$

6,443,992

Derivative liabilities

 

21,734

 

 

49,748

Secured line of credit

 

500,000

 

 

750,000

Borrowings against investment securities

 

100,901

 

 

101,345

Accounts payable, accrued expenses and other

 

423,407

 

 

439,719

Accrued distributions and dividends payable

 

159,518

 

 

159,465

Senior notes

 

1,986,301

 

 

1,984,336

Operating lease liability

(includes $107,015 and $109,473 with related parties)

 

108,711

 

 

111,332

Finance lease liability

(includes $27,064 and $27,857 with related parties)

 

36,356

 

 

43,505

Loans eligible for repurchase from Ginnie Mae

 

409,078

 

 

345,490

Total liabilities

 

9,478,797

 

 

10,428,932

Equity:

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 2022

 

—

 

 

—

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,114,878 and 92,575,974 shares issued and outstanding as of June 30, 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 June 30, 2023 or 2022

 

—

 

 

—

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 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 June 30, 2023 and December 31, 2022, respectively

 

150

 

 

150

Additional paid-in capital

 

1,267

 

 

903

Retained earnings

 

120,379

 

 

142,500

Non-controlling interest

 

2,825,317

 

 

3,028,131

Total equity

 

2,947,122

 

 

3,171,693

Total liabilities and equity

$

12,425,919

 

$

13,600,625

UWM HOLDINGS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

For the six months ended

 

June 30, 2023

 

March 31, 2023

 

June 30, 2022

 

June 30, 2023

 

June 30, 2022

Revenue

 

 

 

 

 

 

 

 

 

Loan production income

$

280,757

 

$

205,424

 

 

$

296,535

 

$

486,181

 

 

$

680,406

Loan servicing income

 

193,220

 

 

218,557

 

 

 

179,501

 

 

411,777

 

 

 

378,066

Change in fair value of mortgage servicing rights

 

24,648

 

 

(337,287

)

 

 

26,169

 

 

(312,639

)

 

 

198,132

Interest income

 

88,895

 

 

74,580

 

 

 

62,020

 

 

163,475

 

 

 

129,415

Total revenue, net

 

587,520

 

 

161,274

 

 

 

564,225

 

 

748,794

 

 

 

1,386,019

Expenses

 

 

 

 

 

 

 

 

 

Salaries, commissions and benefits

 

131,380

 

 

121,003

 

 

 

138,983

 

 

252,383

 

 

 

299,592

Direct loan production costs

 

23,618

 

 

16,483

 

 

 

25,757

 

 

40,101

 

 

 

52,475

Marketing, travel, and entertainment

 

21,588

 

 

17,210

 

 

 

20,625

 

 

38,798

 

 

 

33,462

Depreciation and amortization

 

11,441

 

 

11,670

 

 

 

11,181

 

 

23,111

 

 

 

22,096

General and administrative

 

52,691

 

 

34,619

 

 

 

39,909

 

 

87,310

 

 

 

78,232

Servicing costs

 

31,658

 

 

36,862

 

 

 

44,435

 

 

68,520

 

 

 

91,619

Interest expense

 

82,437

 

 

63,284

 

 

 

57,559

 

 

145,721

 

 

 

117,933

Other expense/(income)

 

2,703

 

 

(241

)

 

 

9,562

 

 

2,462

 

 

 

17,064

Total expenses

 

357,516

 

 

300,890

 

 

 

348,011

 

 

658,406

 

 

 

712,473

Earnings (loss) before income taxes

 

230,004

 

 

(139,616

)

 

 

216,214

 

 

90,388

 

 

 

673,546

Provision (benefit) for income taxes

 

1,210

 

 

(1,003

)

 

 

769

 

 

207

 

 

 

4,814

Net income (loss)

 

228,794

 

 

(138,613

)

 

 

215,445

 

 

90,181

 

 

 

668,732

Net income (loss) attributable to non-controlling interest

 

221,236

 

 

(126,672

)

 

 

207,079

 

 

94,564

 

 

 

638,436

Net income (loss) attributable to UWMC

$

7,558

 

$

(11,941

)

 

$

8,366

 

$

(4,383

)

 

$

30,296

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

$

0.08

 

$

(0.13

)

 

$

0.09

 

$

(0.05

)

 

$

0.33

Diluted

$

0.08

 

$

(0.13

)

 

$

0.09

 

$

(0.05

)

 

$

0.32

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

93,107,133

 

 

92,920,794

 

 

 

92,533,620

 

 

93,014,478

 

 

 

92,374,988

Diluted

 

93,107,133

 

 

92,920,794

 

 

 

92,533,620

 

 

93,014,478

 

 

 

1,594,444,775

Addendum to Exhibit 99.1

This addendum includes the Company's Consolidated Balance Sheets as of June 30, 2023, and the preceding four quarters and Statements of Operations for the quarter ended June 30, 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)

 

 

June 30, 2023

March 31, 2023

December 31, 2022

September 30, 2022

June 30, 2022

Assets

(Unaudited)

(Unaudited)

 

(Unaudited)

(Unaudited)

Cash and cash equivalents

$

634,576

$

740,063

$

704,898

$

799,534

$

958,656

Mortgage loans at fair value

 

6,269,924

 

4,800,259

 

7,134,960

 

5,031,068

 

5,022,806

Derivative assets

 

61,407

 

61,136

 

82,869

 

385,348

 

125,079

Investment securities at fair value, pledged

 

111,625

 

114,275

 

113,290

 

115,079

 

125,193

Accounts receivable, net

 

347,865

 

433,747

 

383,147

 

556,153

 

350,090

Mortgage servicing rights

 

4,224,207

 

3,974,870

 

4,453,261

 

4,305,686

 

3,736,359

Premises and equipment, net

 

149,515

 

152,428

 

152,477

 

152,172

 

153,971

Operating lease right-of-use asset, net

 

101,686

 

102,923

 

104,181

 

101,377

 

102,533

Finance lease right-of-use asset

 

34,947

 

38,320

 

42,218

 

45,667

 

50,179

Loans eligible for repurchase from Ginnie Mae

 

409,078

 

440,775

 

345,490

 

310,149

 

309,577

Other assets

 

81,089

 

88,920

 

83,834

 

87,850

 

82,467

Total assets

$

12,425,919

$

10,947,716

$

13,600,625

$

11,890,083

$

11,016,910

Liabilities and Equity

 

 

 

 

 

Warehouse lines of credit

$

5,732,791

$

4,259,834

$

6,443,992

$

4,712,719

$

4,497,353

Derivative liabilities

 

21,734

 

62,742

 

49,748

 

215,330

 

93,958

Secured line of credit

 

500,000

 

500,000

 

750,000

 

—

 

—

Borrowings against investment securities

 

100,901

 

101,345

 

101,345

 

114,875

 

118,786

Accounts payable, accrued expenses and other

 

423,407

 

416,818

 

439,719

 

846,905

 

470,017

Accrued distributions and dividends payable

 

159,518

 

159,517

 

159,465

 

159,465

 

159,461

Senior notes

 

1,986,301

 

1,985,319

 

1,984,336

 

1,983,099

 

1,982,103

Operating lease liability

 

108,711

 

110,012

 

111,332

 

108,591

 

109,811

Finance lease liability

 

36,356

 

36,812

 

43,505

 

46,917

 

51,370

Loans eligible for repurchase from Ginnie Mae

 

409,078

 

440,775

 

345,490

 

310,149

 

310,149

Total liabilities

 

9,478,797

 

8,073,174

 

10,428,932

 

8,498,050

 

7,793,008

Equity:

 

 

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 2022

 

—

 

—

 

—

 

—

 

—

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,114,878 and 92,575,974 shares issued and outstanding as of June 30, 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 June 30, 2023 or 2022

 

—

 

—

 

—

 

—

 

—

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 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 June 30, 2023 and December 31, 2022

 

150

 

150

 

150

 

150

 

150

Additional paid-in capital

 

1,267

 

1,036

 

903

 

784

 

669

Retained earnings

 

120,379

 

122,136

 

142,500

 

141,194

 

137,955

Non-controlling interest

 

2,825,317

 

2,751,211

 

3,028,131

 

3,249,896

 

3,085,119

Total equity

 

2,947,122

 

2,874,542

 

3,171,693

 

3,392,033

 

3,223,902

Total liabilities and equity

$

12,425,919

$

10,947,716

$

13,600,625

$

11,890,083

$

11,016,910

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

June 30, 2023

March 31, 2023

December 31, 2022

September 30, 2022

June 30, 2022

Revenue

 

 

 

 

 

Loan production income

$

280,757

$

205,424

 

$

129,180

 

$

172,402

$

296,535

Loan servicing income

 

193,220

 

218,557

 

 

217,225

 

 

196,781

 

179,501

Change in fair value of mortgage servicing rights

 

24,648

 

(337,287

)

 

(150,808

)

 

236,780

 

26,169

Interest income

 

88,895

 

74,580

 

 

106,837

 

 

78,210

 

62,020

Total revenue, net

 

587,520

 

161,274

 

 

302,434

 

 

684,173

 

564,225

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

131,380

 

121,003

 

 

118,266

 

 

135,028

 

138,983

Direct loan production costs

 

23,618

 

16,483

 

 

17,396

 

 

20,498

 

25,757

Marketing, travel, and entertainment

 

21,588

 

17,210

 

 

22,976

 

 

17,730

 

20,625

Depreciation and amortization

 

11,441

 

11,670

 

 

11,713

 

 

11,426

 

11,181

General and administrative

 

52,691

 

34,619

 

 

49,668

 

 

51,649

 

39,909

Servicing costs

 

31,658

 

36,862

 

 

36,809

 

 

37,596

 

44,435

Interest expense

 

82,437

 

63,284

 

 

114,918

 

 

73,136

 

57,559

Other expense/(income)

 

2,703

 

(241

)

 

(54

)

 

6,729

 

9,562

Total expenses

 

357,516

 

300,890

 

 

371,692

 

 

353,792

 

348,011

Earnings (loss) before income taxes

 

230,004

 

(139,616

)

 

(69,258

)

 

330,381

 

216,214

Provision (benefit) for income taxes

 

1,210

 

(1,003

)

 

(6,774

)

 

4,771

 

769

Net income (loss)

 

228,794

 

(138,613

)

 

(62,484

)

 

325,610

 

215,445

Net income (loss) attributable to non-controlling interest

 

221,236

 

(126,672

)

 

(62,207

)

 

313,914

 

207,079

Net income (loss) attributable to UWMC

$

7,558

$

(11,941

)

$

(277

)

$

11,696

$

8,366

 

 

 

 

 

 

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

 

 

 

 

 

Basic

$

0.08

$

(0.13

)

$

—

 

$

0.13

$

0.09

Diluted

$

0.08

$

(0.13

)

$

(0.03

)

$

0.13

$

0.09

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

93,107,133

 

92,920,794

 

 

92,575,549

 

 

92,571,886

 

92,533,620

Diluted

 

93,107,133

 

92,920,794

 

 

1,594,645,336

 

 

92,571,886

 

92,533,620

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230809864247/en/

For inquiries regarding UWM, please contact: Investor Contact Blake Kolo InvestorRelations@uwm.com

Media Contact Nicole Roberts Media@uwm.com