UWMC UWM Holdings Corporation

Third Quarter Net Income of $301.0 Million

Loan Origination Volume of $29.7 Billion, including Purchase Volume of $25.9 Billion

UWM Holdings Corporation (NYSE: UWMC) (the "Company"), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), today announced its results for the third quarter ended September 30, 2023. Total loan origination volume for the third quarter was $29.7 billion, of which $25.9 billion was purchase volume. The Company reported 3Q23 net income of $301.0 million, inclusive of a $92.9 million increase in fair value of MSRs, and diluted earnings per share of $0.15.

Mat Ishbia, Chairman and CEO of UWMC, said, "The strength of UWM and the broker channel is on full display. While others choose to dwell on high mortgage rates and low housing inventory, at UWM we remain focused on growing our market share and the broker channel. We are investing in new technology and hiring new team members to ensure that we are prepared for the eventual turn in rates. In the meantime, we expect to continue to generate significant purchase volume and remain highly profitable."

• Originations of $29.7 billion in 3Q23, compared to $31.8 billion in 2Q23 and $33.5 billion in 3Q22
• Purchase originations of $25.9 billion in 3Q23, compared to $28.0 billion in 2Q23 and $27.7 billion in 3Q22
• Total gain margin of 97 bps in 3Q23 compared to 88 bps in 2Q23 and 52 bps in 3Q22
• Net income of $301.0 million in 3Q23 compared to $228.8 million in 2Q23 and $325.6 million 3Q22
• Adjusted EBITDA of $112.1 million in 3Q23 compared to $125.4 million in 2Q23 and $(1.4) million in 3Q22
• Total equity of $3.1 billion at September 30, 2023, compared to $2.9 billion at June 30, 2023, and $3.4 billion at September 30, 2022
• Unpaid principal balance of MSRs of $281.4 billion with a WAC of 4.20% at September 30, 2023, compared to $294.9 billion with a WAC of 3.84% at June 30, 2023, and $306.0 billion with a WAC of 3.44% at September 30, 2022
• Ended 3Q23 with approximately $2.9 billion of available liquidity, including $0.9 billion of cash and self-warehouse, and $2.0 billion of available borrowing capacity, which includes $1.5 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)

 

Q3 2023

Q2 2023

Q3 2022

Loan origination volume(1)

$

29,721,633

 

$

31,846,800

 

$

33,464,480

 

Total gain margin(1)(2)

 

0.97

%

 

0.88

%

 

0.52

%

Net income

$

300,993

 

$

228,794

 

$

325,610

 

Diluted EPS

 

0.15

 

 

0.08

 

 

0.13

 

Adjusted diluted EPS(3)

 

N/A

 

 

0.11

 

 

0.16

 

Adjusted net income(3)

 

234,713

 

 

178,920

 

 

254,294

 

Adjusted EBITDA(3)

 

112,062

 

 

125,380

 

 

(1,392

)

(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)

Q3 2023

Q2 2023

Q3 2022

Cash and cash equivalents

$

729,616

$

634,576

$

799,534

Mortgage loans at fair value

 

5,560,039

 

6,269,924

 

5,341,217

Mortgage servicing rights

 

4,352,219

 

4,224,207

 

4,305,686

Total assets

 

12,204,137

 

12,425,919

 

11,890,083

Non-funding debt (1)

 

2,617,903

 

2,623,991

 

2,146,157

Total equity

 

3,092,111

 

2,947,122

 

3,392,033

Non-funding debt to equity (1)

 

0.85

 

0.89

 

0.63

(1)

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

Mortgage Servicing Rights (dollars in thousands)

 

Q3 2023

Q2 2023

Q3 2022

Unpaid principal balance

$

281,373,662

 

$

294,945,929

 

$

306,016,670

 

Weighted average interest rate

 

4.20

%

 

3.84

%

 

3.44

%

Weighted average age (months)

 

20

 

 

20

 

 

14

 

Technology and Loan Product Launches

 

 

 

• Investor Flex, UWM’s Debt Service Coverage Ratio ("DSCR") loan product, has been expanded to offer four loan options, up to $2M for purchases and refinances, for real estate investor borrowers.
• Independent mortgage brokers now have access to improved pricing on loans under $200,000 and UWM has removed loan-level pricing adjustments on loans under $100,000.
• Expanded Safe Check to now include government and jumbo loans, as well as conventional loans, further protecting independent mortgage brokers and their borrowers from unwanted excessive credit trigger lead solicitations and helping borrowers save on increasing credit costs.
• Launched Safe Check Complete, allowing brokers to order a pre-qualification based on a three-bureau soft credit check for $23, with UWM offering a tri-merge hard credit report at no additional cost.
• Now accepting FHA/VA loans with FICOs above 580; had previously been at 620 FICO.

Operational Highlights

• Achieved Net Promoter Score of +86.4 in 3Q23.
• Our 1.09% 60+ days delinquency as of September 30, 2023, was significantly better than the industry average of 1.53% (Source: TransUnion, as of August 2023).

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

Purchase:

Q3 2023

Q2 2023

Q3 2022

Conventional

$

16,237,031

$

17,607,736

$

19,246,298

Government

 

8,031,062

 

9,184,089

 

7,592,116

Jumbo and other (1)

 

1,624,824

 

1,243,350

 

854,925

Total Purchase

$

25,892,917

$

28,035,175

$

27,693,339

 

 

 

 

Refinance:

Q3 2023

Q2 2023

Q3 2022

Conventional

$

1,736,055

$

2,113,172

$

3,935,550

Government

 

1,528,848

 

1,336,350

 

1,640,127

Jumbo and other (1)

 

563,813

 

362,103

 

195,464

Total Refinance

$

3,828,716

$

3,811,625

$

5,771,141

Total Originations

$

29,721,633

$

31,846,800

$

33,464,480

(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, "We certainly recognize that many in the industry are facing challenges. With that said, UWM will continue to embrace this cycle as a time for purchase dominance and investment in our future. We are not resting on any laurels, nor are we relaxing. We will continue to stay on offense while much of the industry is on defense."

Fourth Quarter 2023 Outlook

We anticipate fourth quarter production to be in the $19 to $26 billion range, with gain margin from 75 to 100 basis points.

Full Year 2023 Outlook

We anticipate full year 2023 production to be in the $103 to $110 billion range.

Dividend

Subsequent to September 30, 2023, for the twelfth 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 January 11, 2024, to stockholders of record at the close of business on December 20, 2023. Additionally, the Board approved a proportional distribution to SFS Corp., which is payable on or about January 11, 2024.

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Wednesday, November 8, 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/cXqxwDDv

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 22.21% 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

Q3 2023

Q2 2023

Q3 2022

Earnings before income taxes

$

301,727

 

$

230,004

 

$

330,381

 

Impact of estimated annual effective tax rate of 22.21% and 23.03% for periods during 2023 and 2022, respectively

(67,014

 

)

 

 

 

(51,084

 

)

 

 

 

(76,087

 

)

Adjusted net income

$

234,713

 

$

178,920

 

$

254,294

Adjusted diluted EPS

Q2 2023

Q3 2022

Diluted weighted average Class A common stock outstanding

93,107,133

92,571,886

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

1,502,069,787

1,502,069,787

Adjusted diluted weighted average shares outstanding (1)

1,595,176,920

1,594,641,673

Adjusted net income

$

178,920

$

254,294

Adjusted diluted EPS

 

0.11

 

0.16

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

Adjusted EBITDA

Q3 2023

Q2 2023

Q3 2022

Net income

$

300,993

 

$

228,794

 

$

325,610

 

Interest expense on non-funding debt

 

42,825

 

 

42,756

 

 

29,786

 

Provision for income taxes

 

734

 

 

1,210

 

 

4,771

 

Depreciation and amortization

 

11,563

 

 

11,441

 

 

11,426

 

Stock-based compensation expense

 

3,822

 

 

3,567

 

 

1,986

 

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

 

(236,044

)

 

(164,526

)

 

(373,232

)

Deferred compensation, net

 

(11,755

)

 

(564

)

 

(8,468

)

Change in fair value of Public and Private Warrants

 

(2,021

)

 

1,175

 

 

(755

)

Change in Tax Receivable Agreement liability

 

(3,000

)

 

915

 

 

—

 

Change in fair value of investment securities

 

4,945

 

 

612

 

 

7,484

 

Adjusted EBITDA

$

112,062

 

$

125,380

 

$

(1,392

)

Non-funding debt and non-funding debt to equity

Q3 2023

Q2 2023

Q3 2022

Senior notes

$

1,987,284

$

1,986,301

$

1,983,099

Secured lines of credit

 

500,000

 

500,000

 

—

Borrowings against investment securities

 

97,328

 

100,901

 

114,875

Equipment note payable

 

—

 

433

 

1,266

Finance lease liability

 

33,291

 

36,356

 

46,917

Total non-funding debt

$

2,617,903

$

2,623,991

$

2,146,157

Total equity

$

3,092,111

$

2,947,122

$

3,392,033

Non-funding debt to equity

 

0.85

 

0.89

 

0.63

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) our expectation that we will continue to generate significant purchase volume and remain highly profitable; (3) growth of the wholesale and broker channels, the impact of our strategies on such growth and the benefits to our business of such growth; (4) our growth and strategies to remain the leading mortgage lender, and the timing and drivers of that growth; (5) the benefits and liquidity of our MSR portfolio; (6) our beliefs related to the amount and timing of our dividend; (7) our expectations for future market environments, including interest rates, levels of refinance activity and the timing of such market changes; (8) our expectations related to production and margin in the fourth quarter of 2023; (9) the benefits of our business model, strategies and initiatives, and their impact on our results and the industry; (10) our performance in shifting market conditions and the comparison of such performance against our competitors; (11) our ability to produce results in future years at or above prior levels or expectations, and our strategies for producing such results; (12) our position and ability to capitalize on market opportunities and the impacts to our results; (13) our investments in technology and the impact to our operations, ability to scale and financial results and (14) 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 to 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. 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 nine 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)

 

 

September 30,

December 31,

2023

2022

Assets

(Unaudited)

 

Cash and cash equivalents

$

729,616

$

704,898

Mortgage loans at fair value

 

5,560,039

 

7,134,960

Derivative assets

 

92,791

 

82,869

Investment securities at fair value, pledged

 

104,526

 

113,290

Accounts receivable, net

 

385,922

 

383,147

Mortgage servicing rights

 

4,352,219

 

4,453,261

Premises and equipment, net

 

146,509

 

152,477

Operating lease right-of-use asset, net

(includes $98,813 and $102,322 with related parties)

 

 

 

100,427

 

 

 

104,181

Finance lease right-of-use asset

(includes $25,318 and $26,867 with related parties)

 

 

 

31,803

 

 

 

42,218

Loans eligible for repurchase from Ginnie Mae

 

617,490

 

345,490

Other assets

 

82,795

 

83,834

Total assets

$

12,204,137

$

13,600,625

Liabilities and Equity

 

 

Warehouse lines of credit

$

5,066,900

$

6,443,992

Derivative liabilities

 

38,882

 

49,748

Secured line of credit

 

500,000

 

750,000

Borrowings against investment securities

 

97,328

 

101,345

Accounts payable, accrued expenses and other

 

503,890

 

439,719

Accrued distributions and dividends payable

 

159,572

 

159,465

Senior notes

 

1,987,284

 

1,984,336

Operating lease liability

(includes $105,775 and $109,473 with related parties)

 

 

 

107,389

 

 

 

111,332

Finance lease liability

(includes $26,665 and $27,857 with related parties)

 

 

 

33,291

 

 

 

43,505

Loans eligible for repurchase from Ginnie Mae

 

617,490

 

345,490

Total liabilities

 

9,112,026

 

10,428,932

Equity:

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of September 30, 2023 or December 31, 2022

 

 

 

—

 

 

 

—

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,654,269 and 92,575,974 shares issued and outstanding as of September 30, 2023 and

December 31, 2022, respectively

 

 

 

10

 

 

 

9

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

 

 

 

—

 

 

 

—

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

 

 

 

150

 

 

 

150

Additional paid-in capital

 

1,484

 

903

Retained earnings

 

130,233

 

142,500

Non-controlling interest

 

2,960,234

 

3,028,131

Total equity

 

3,092,111

 

3,171,693

Total liabilities and equity

$

12,204,137

$

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 nine months ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

2023

 

2023

 

2022

 

2023

 

2022

Revenue

 

 

 

 

 

Loan production income

$

288,930

 

$

280,757

$

172,402

$

775,111

 

$

852,808

Loan servicing income

 

200,428

 

 

193,220

 

196,781

 

612,205

 

 

574,847

Change in fair value of mortgage servicing rights

 

92,909

 

 

24,648

 

236,780

 

(219,730

)

 

434,912

Interest income

 

94,849

 

 

88,895

 

78,210

 

258,324

 

 

207,625

Total revenue, net

 

677,116

 

 

587,520

 

684,173

 

1,425,910

 

 

2,070,192

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

135,333

 

 

131,380

 

135,028

 

387,716

 

 

434,620

Direct loan production costs

 

36,184

 

 

23,618

 

20,498

 

76,285

 

 

72,973

Marketing, travel, and entertainment

 

20,117

 

 

21,588

 

17,730

 

58,915

 

 

51,192

Depreciation and amortization

 

11,563

 

 

11,441

 

11,426

 

34,674

 

 

33,522

General and administrative

 

44,904

 

 

52,691

 

51,649

 

132,214

 

 

129,881

Servicing costs

 

33,640

 

 

31,658

 

37,596

 

102,160

 

 

129,215

Interest expense

 

93,724

 

 

82,437

 

73,136

 

239,445

 

 

191,069

Other expense (income)

 

(76

)

 

2,703

 

6,729

 

2,386

 

 

23,793

Total expenses

 

375,389

 

 

357,516

 

353,792

 

1,033,795

 

 

1,066,265

Earnings before income taxes

 

301,727

 

 

230,004

 

330,381

 

392,115

 

 

1,003,927

Provision for income taxes

 

734

 

 

1,210

 

4,771

 

941

 

 

9,585

Net income

 

300,993

 

 

228,794

 

325,610

 

391,174

 

 

994,342

Net income attributable to non-controlling interest

 

 

 

282,762

 

 

 

 

 

221,236

 

 

 

313,914

 

 

 

377,326

 

 

 

 

 

952,350

Net income attributable to UWMC

$

18,231

 

$

7,558

$

11,696

$

13,848

 

$

41,992

Earnings per share of Class A common stock:

Basic

$

0.20

$

0.08

$

0.13

$

0.15

$

0.45

Diluted

$

0.15

$

0.08

$

0.13

$

0.15

$

0.45

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

93,290,736

 

93,107,133

 

92,571,886

 

93,107,576

 

92,441,342

Diluted

 

1,596,624,780

 

93,107,133

 

92,571,886

 

93,107,576

 

92,441,342

Addendum to Exhibit 99.1

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

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

2023

 

2023

 

2023

 

2022

 

2022

Assets

(Unaudited)

(Unaudited)

(Unaudited)

 

(Unaudited)

Cash and cash equivalents

$

729,616

$

634,576

$

740,063

$

704,898

$

799,534

Mortgage loans at fair value

 

5,560,039

 

6,269,924

 

4,800,259

 

7,134,960

 

5,031,068

Derivative assets

 

92,791

 

61,407

 

61,136

 

82,869

 

385,348

Investment securities at fair value, pledged

 

104,526

 

111,625

 

114,275

 

113,290

 

115,079

Accounts receivable, net

 

385,922

 

347,865

 

433,747

 

383,147

 

556,153

Mortgage servicing rights

 

4,352,219

 

4,224,207

 

3,974,870

 

4,453,261

 

4,305,686

Premises and equipment, net

 

146,509

 

149,515

 

152,428

 

152,477

 

152,172

Operating lease right-of-use asset, net

 

100,427

 

101,686

 

102,923

 

104,181

 

101,377

Finance lease right-of-use asset

 

31,803

 

34,947

 

38,320

 

42,218

 

45,667

Loans eligible for repurchase from Ginnie Mae

 

617,490

 

409,078

 

440,775

 

345,490

 

310,149

Other assets

 

82,795

 

81,089

 

88,920

 

83,834

 

87,850

Total assets

$

12,204,137

$

12,425,919

$

10,947,716

$

13,600,625

$

11,890,083

Liabilities and Equity

 

 

 

 

 

Warehouse lines of credit

$

5,066,900

$

5,732,791

$

4,259,834

$

6,443,992

$

4,712,719

Derivative liabilities

 

38,882

 

21,734

 

62,742

 

49,748

 

215,330

Secured line of credit

 

500,000

 

500,000

 

500,000

 

750,000

 

—

Borrowings against investment securities

 

97,328

 

100,901

 

101,345

 

101,345

 

114,875

Accounts payable, accrued expenses and other

 

503,890

 

423,407

 

416,818

 

439,719

 

846,905

Accrued distributions and dividends payable

 

159,572

 

159,518

 

159,517

 

159,465

 

159,465

Senior notes

 

1,987,284

 

1,986,301

 

1,985,319

 

1,984,336

 

1,983,099

Operating lease liability

 

107,389

 

108,711

 

110,012

 

111,332

 

108,591

Finance lease liability

 

33,291

 

36,356

 

36,812

 

43,505

 

46,917

Loans eligible for repurchase from Ginnie Mae

 

617,490

 

409,078

 

440,775

 

345,490

 

310,149

Total liabilities

 

9,112,026

 

9,478,797

 

8,073,174

 

10,428,932

 

8,498,050

Equity:

 

 

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of each of the periods presented

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized; shares issued and outstanding - 93,654,269 as of September 30, 2023 , 93,114,878 as of June 30, 2023, 93,101,971 as of March 31, 2023, and 92,575,974 as of December 31, 2022 and 92,575,425 as of September 30, 2022

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

9

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of each of the periods presented

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of each of the periods presented

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,502,069,787 shares issued and outstanding as of each of the periods presented

 

 

 

150

 

 

 

150

 

 

 

150

 

 

 

150

 

 

 

150

Additional paid-in capital

 

1,484

 

1,267

 

1,036

 

903

 

784

Retained earnings

 

130,233

 

120,379

 

122,136

 

142,500

 

141,194

Non-controlling interest

 

2,960,234

 

2,825,317

 

2,751,211

 

3,028,131

 

3,249,896

Total equity

 

3,092,111

 

2,947,122

 

2,874,542

 

3,171,693

 

3,392,033

Total liabilities and equity

$

12,204,137

$

12,425,919

$

10,947,716

$

13,600,625

$

11,890,083

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

For the three months ended

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

Revenue

 

 

 

 

Loan production income

$

288,930

 

 

$

280,757

 

$

205,424

 

 

$

129,180

 

 

$

172,402

Loan servicing income

 

200,428

 

 

 

193,220

 

 

218,557

 

 

 

217,225

 

 

 

196,781

Change in fair value of mortgage servicing rights

 

92,909

 

 

 

24,648

 

 

(337,287

)

 

 

(150,808

)

 

 

236,780

Interest income

 

94,849

 

 

 

88,895

 

 

74,580

 

 

 

106,837

 

 

 

78,210

Total revenue, net

 

677,116

 

 

 

587,520

 

 

161,274

 

 

 

302,434

 

 

 

684,173

Expenses

 

 

 

 

 

 

 

 

 

 

Salaries, commissions and benefits

 

135,333

 

 

 

131,380

 

 

121,003

 

 

 

118,266

 

 

 

135,028

Direct loan production costs

 

36,184

 

 

 

23,618

 

 

16,483

 

 

 

17,396

 

 

 

20,498

Marketing, travel, and entertainment

 

20,117

 

 

 

21,588

 

 

17,210

 

 

 

22,976

 

 

 

17,730

Depreciation and amortization

 

11,563

 

 

 

11,441

 

 

11,670

 

 

 

11,713

 

 

 

11,426

General and administrative

 

44,904

 

 

 

52,691

 

 

34,619

 

 

 

49,668

 

 

 

51,649

Servicing costs

 

33,640

 

 

 

31,658

 

 

36,862

 

 

 

36,809

 

 

 

37,596

Interest expense

 

93,724

 

 

 

82,437

 

 

63,284

 

 

 

114,918

 

 

 

73,136

Other expense (income)

 

(76

)

 

 

2,703

 

 

(241

)

 

 

(54

)

 

 

6,729

Total expenses

 

375,389

 

 

 

357,516

 

 

300,890

 

 

 

371,692

 

 

 

353,792

Earnings (loss) before income taxes

 

301,727

 

 

 

230,004

 

 

(139,616

)

 

 

(69,258

)

 

 

330,381

Provision (benefit) for income taxes

 

734

 

 

 

1,210

 

 

(1,003

)

 

 

(6,774

)

 

 

4,771

Net income (loss)

 

300,993

 

 

 

228,794

 

 

(138,613

)

 

 

(62,484

)

 

 

325,610

Net income (loss) attributable to non-controlling interest

 

 

 

282,762

 

 

 

 

 

 

221,236

 

 

 

 

(126,672

 

)

 

 

 

 

(62,207

 

)

 

 

313,914

Net income (loss) attributable to UWMC

$

18,231

 

 

$

7,558

 

$

(11,941

)

 

$

(277

)

 

$

11,696

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

 

 

 

 

 

Basic

$

0.20

$

0.08

$

(0.13

)

$

—

 

$

0.13

Diluted

$

0.15

$

0.08

$ (0.13) $

 

(0.03

)

$

0.13

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

93,290,736

 

93,107,133

 

92,920,794

 

 

92,575,549

 

 

92,571,886

Diluted

 

1,596,624,780

 

93,107,133

 

92,920,794

 

 

1,594,645,336

 

 

92,571,886

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231108214855/en/

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

Media Contact Nicole Roberts Media@uwm.com