UWMC UWM Holdings Corporation

Third Quarter Net Income of $31.9 Million. Loan Origination Volume of $39.5 Billion, Including Purchase Volume of $26.2 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, 2024. Total loan origination volume for the third quarter 2024 was $39.5 billion, of which $26.2 billion was purchase volume. The Company reported 3Q24 net income of $31.9 million, inclusive of a $446.1 million decline in fair value of MSRs and a $226.9 million gain on other interest rate derivatives.

Mat Ishbia, Chairman and CEO of UWMC, said, "When looking at Q3, I am incredibly proud of our performance and two things jump out at me – first, we exceeded both our volume and margin guidance despite mortgage rates remaining higher than anticipated for most of the quarter. But a dip in rates for just a few weeks pushed us higher than we expected and provided a glimpse into the future. Second, UWM is on pace to have record purchase volume in 2024 despite a generationally slow existing home sales market. The broker channel continues to dominate the purchase market, and our results in Q3 also demonstrate how well UWM and the channel are positioned to capitalize on the inevitable increase in refinance volume when it comes. Right now, UWM is so much better positioned than we were prior to the last refinance boom. We have more capacity, more advanced technology, and even better service than we could offer our broker partners at that time. Simply put, our operational fitness is at an all-time high and you'll only see us accelerate from here."

Third Quarter 2024 Financial Highlights

• Originations of $39.5 billion in 3Q24, compared to $33.6 billion in 2Q24 and $29.7 billion in 3Q23
• Purchase originations of $26.2 billion in 3Q24, compared to $27.2 billion in 2Q24 and $25.9 billion in 3Q23
• Total gain margin of 118 bps in 3Q24 compared to 106 bps in 2Q24 and 97 bps in 3Q23
• Net income of $31.9 million in 3Q24 compared to net income of $76.3 million in 2Q24 and net income of $301.0 million in 3Q23
• Adjusted EBITDA of $107.2 million in 3Q24 compared to $133.1 million in 2Q24 and $112.1 million in 3Q23
• Total equity of $2.2 billion at September 30, 2024, compared to $2.3 billion at June 30, 2024, and $3.1 billion at September 30, 2023
• Unpaid principal balance of MSRs of $212.2 billion with a WAC of 4.56% at September 30, 2024, compared to
• $189.5 billion with a WAC of 4.31% at June 30, 2024, and $281.4 billion with a WAC of 4.20% at September 30, 2023
• Ended 3Q24 with approximately $2.5 billion of available liquidity, including $636.3 million of cash and available borrowing capacity under our secured and unsecured lines of credit

 

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

 

Q3 2024

Q2 2024

Q3 2023

Loan origination volume(1)

$

39,509,521

 

$

33,628,993

 

$

29,721,633

 

Total gain margin(1)(2)

 

1.18

%

 

1.06

%

 

0.97

%

Net income

$

31,945

 

$

76,286

 

$

300,993

 

Diluted (loss) earnings per share

 

(0.06

)

 

0.03

 

 

0.15

 

Adjusted diluted earnings per share(3)

 

0.01

 

 

0.04

 

 

N/A

 

Adjusted net income(3)

 

23,334

 

 

59,809

 

 

234,713

 

Adjusted EBITDA(3)

 

107,181

 

 

133,146

 

 

112,062

 

  (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 2024

Q2 2024

Q3 2023

Cash and cash equivalents

$

636,327

 

$

680,153

 

$

729,616

 

Mortgage loans at fair value

 

10,141,683

 

 

8,236,183

 

 

5,560,039

 

Mortgage servicing rights

 

2,800,054

 

 

2,650,090

 

 

4,352,219

 

Total assets

 

15,119,798

 

 

12,921,641

 

 

12,204,137

 

Non-funding debt (1)

 

2,410,714

 

 

2,108,426

 

 

2,617,903

 

Total equity

 

2,180,527

 

 

2,329,012

 

 

3,092,111

 

Non-funding debt to equity (1)

 

1.11

 

 

0.91

 

 

0.85

 

 

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

Mortgage Servicing Rights (dollars in thousands)

Q3 2024

Q2 2024

Q3 2023

Unpaid principal balance

$

212,218,975

 

$

189,482,798

 

$

281,373,662

 

Weighted average interest rate

 

4.56

%

 

4.31

%

 

4.20

%

Weighted average age (months)

 

25

 

 

26

 

 

20

 

 

 

 

 

Third Quarter Business and Product Highlights

KEEP

• KEEP is an industry-leading technology that utilizes AI to send pre-validated refinance opportunities as soon as a borrower is able to obtain meaningful savings on their monthly payment, streamlining the speed and efficiency of the mortgage process for both borrowers and UWM’s broker partners

BrokerX

• BrokerX is a structured development program that transforms individuals with no experience to licensed mortgage loan originators (MLOs) in just 5 weeks. This provides brokers with a streamlined solution for training and licensing new talent, without needing their own training team, and is just another in a long line of programs that UWM has created to support and grow the broker channel

 

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

 

Purchase:

Q3 2024

Q2 2024

Q3 2023

Conventional

$

15,874,674

$

15,650,022

$

16,237,031

Government

 

7,786,158

 

8,298,147

 

8,031,062

Jumbo and other (1)

 

2,499,626

 

3,224,482

 

1,624,824

Total Purchase

 

$

 

26,160,458

 

$

 

27,172,651

 

$

 

25,892,917

Refinance:

Q3 2024

Q2 2024

Q3 2023

Conventional

$

3,552,067

$

2,506,853

$

1,736,055

Government

 

8,271,580

 

2,573,514

 

1,528,848

Jumbo and other (1)

 

1,525,416

 

1,375,975

 

563,813

Total Refinance

$

13,349,063

$

6,456,342

$

3,828,716

Total Originations

$

39,509,521

$

33,628,993

$

29,721,633

 

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

Fourth Quarter 2024 Outlook

We anticipate fourth quarter production to be in the $34 to $41 billion range, with gain margin from 85 to 110 basis points.

Dividend

Subsequent to September 30, 2024, for the sixteenth 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 9, 2025, to stockholders of record at the close of business on December 19, 2024. Additionally, the Board approved a proportional distribution to SFS Corp., which is payable on or around January 9, 2025.

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Thursday, November 7, 2024, at 10:00 AM ET to review the results and answer questions. Interested parties may register for a toll-free dial-in number by visiting: https://registrations.events/direct/Q4I3723696

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 (loss),” which is our pre-tax income (loss) together with an adjusted income tax provision (benefit), which is calculated as the provision for income taxes plus the tax effects of net income attributable to non-controlling interest determined using a blended statutory effective tax rate. “Adjusted net income (loss)” is a non-GAAP metric. "Adjusted diluted EPS" is defined as "Adjusted net income (loss)" 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, gains or losses on other interest rate derivatives, the impact of non-cash deferred compensation expense, the change in fair value of the Public and Private Warrants, the non-cash income/expense impact of the change in the Tax Receivable Agreement liability, and the change in fair value of retained investment securities. We exclude the non-cash income/expense impact of the change in the 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, 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 2024

Q2 2024

Q3 2023

Earnings before income taxes

$

32,289

 

$

77,072

 

$

301,727

 

Adjusted income tax provision

 

(8,955

)

 

(17,263

)

 

(67,014

)

Adjusted net income

$

23,334

 

$

59,809

 

$

234,713

 

 

Adjusted diluted EPS

Q3 2024

Q2 2024

Diluted weighted average Class A common stock outstanding

99,801,301

95,387,609

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

1,498,013,741

1,502,069,787

Adjusted diluted weighted average shares outstanding (1)

1,597,815,042

1,597,457,396

Adjusted net income

$

23,334

$

59,809

Adjusted diluted EPS

 

0.01

 

0.04

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

 

Adjusted EBITDA

Q3 2024

Q2 2024

Q3 2023

Net income

$

31,945

 

$

76,286

 

$

300,993

 

Interest expense on non-funding debt

 

31,544

 

 

31,951

 

 

42,825

 

Provision for income taxes

 

344

 

 

786

 

 

734

 

Depreciation and amortization

 

11,636

 

 

11,404

 

 

11,563

 

Stock-based compensation expense

 

5,768

 

 

3,937

 

 

3,822

 

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

 

263,893

 

 

38,222

 

 

(236,044

)

Gain on other interest rate derivatives

 

(226,936

)

 

(27,166

)

 

—

 

Deferred compensation, net

 

(11,434

)

 

(1,169

)

 

(11,755

)

Change in fair value of Public and Private Warrants

 

5,829

 

 

(1,739

)

 

(2,021

)

Change in Tax Receivable Agreement liability

 

—

 

 

—

 

 

(3,000

)

Change in fair value of investment securities

 

(5,409

)

 

634

 

 

4,945

 

Adjusted EBITDA

$

107,181

 

$

133,146

 

$

112,062

 

  Non-funding debt and non-funding debt to equity

Q3 2024

Q2 2024

Q3 2023

Senior notes

$

1,991,216

$

1,990,233

$

1,987,284

Secured lines of credit

 

300,000

 

—

 

500,000

Borrowings against investment securities

 

93,662

 

91,406

 

97,328

Finance lease liability

 

25,836

 

26,787

 

33,291

Total non-funding debt

$

2,410,714

$

2,108,426

$

2,617,903

Total equity

$

2,180,527

$

2,329,012

$

3,092,111

Non-funding debt to equity

 

1.11

 

0.91

 

0.85

Cautionary Note Regarding Forward-Looking Statements

This press release and our earnings call include forward-looking statements. These forward-looking statements are generally identified using 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 investment in our people, products and technology, and the benefits of our results; (3) our beliefs regarding opportunities in 2024 for our business and the broker channel; (4) our beliefs regarding operational profitability; (5) growth of the wholesale and broker channels, the impact of our strategies on such growth and the benefits to our business of such growth; (6) our growth and strategies to remain the leading mortgage lender, and the timing and drivers of that growth; (7) the benefits and liquidity of our MSR portfolio; (8) our beliefs related to the amount and timing of our dividend; (9) our expectations for future market environments, including interest rates, levels of refinance activity and the timing of such market changes; (10) our expectations related to production and margin in the fourth quarter of 2024; (11) the benefits of our business model, strategies and initiatives, and their impact on our results and the industry; (12) our performance in shifting market conditions and the comparison of such performance against our competitors; (13) our ability to produce results in future years at or above prior levels or expectations, and our strategies for producing such results; (14) our position and ability to capitalize on market opportunities and the impacts to our results; (15) our investments in technology and the impact to our operations, ability to scale and financial results and (16) 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) the occurrence of a data breach or other failure of UWM’s cybersecurity or information security systems; (xii) the occurrence of data breaches or other cybersecurity failures at our third-party sub-servicers or other third-party vendors; (xiii) 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 (xiv) 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 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,

2024

December 31,

2023

Assets

(Unaudited)

Cash and cash equivalents

$

636,327

$

497,468

Mortgage loans at fair value

 

10,141,683

 

5,449,884

Derivative assets

 

66,977

 

33,019

Investment securities at fair value, pledged

 

108,964

 

110,352

Accounts receivable, net

 

561,901

 

512,070

Mortgage servicing rights

 

2,800,054

 

4,026,136

Premises and equipment, net

 

147,981

 

146,417

Operating lease right-of-use asset

(includes $93,856 and $97,596 with related parties)

 

95,123

 

99,125

Finance lease right-of-use asset, net

(includes $23,253 and $24,802 with related parties)

 

24,020

 

29,111

Loans eligible for repurchase from Ginnie Mae

 

391,696

 

856,856

Other assets

 

145,072

 

111,416

Total assets

$

15,119,798

$

11,871,854

Liabilities and Equity

Warehouse lines of credit

$

9,207,746

$

4,902,090

Derivative liabilities

 

93,599

 

40,781

Secured line of credit

 

300,000

 

750,000

Borrowings against investment securities

 

93,662

 

93,814

Accounts payable, accrued expenses and other

 

573,865

 

469,101

Accrued distributions and dividends payable

 

159,818

 

159,572

Senior notes

 

1,991,216

 

1,988,267

Operating lease liability

(includes $100,566 and $104,495 with related parties)

 

101,833

 

106,024

Finance lease liability

(includes $25,027 and $26,260 with related parties)

 

25,836

 

30,678

Loans eligible for repurchase from Ginnie Mae

 

391,696

 

856,856

Total liabilities

 

12,939,271

 

9,397,183

Equity:

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued andoutstanding as of September 30, 2024 or December 31, 2023

 

—

 

—

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 113,150,968 and 93,654,269 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

 

 

 

11

 

 

 

10

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2024 or December 31, 2023

—

—

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2024 or December 31, 2023

 

—

 

—

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,485,027,775 shares issued and outstanding as of September 30, 2024 and 1,502,069,787 at December 31, 2023

 

149

 

150

Additional paid-in capital

 

2,644

 

1,702

Retained earnings

 

116,561

 

110,690

Non-controlling interest

 

2,061,162

 

2,362,119

Total equity

 

2,180,527

 

2,474,671

Total liabilities and equity

$

15,119,798

$

11,871,854

 

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,

2024

2024

2023

2024

2023

Revenue

 

 

 

 

 

Loan production income

$

465,548

 

$

357,109

 

$

288,930

 

$

1,121,611

 

$

775,111

 

Loan servicing income

 

134,753

 

 

143,910

 

 

200,428

 

 

463,365

 

 

612,205

 

Change in fair value of mortgage servicing rights

 

(446,100

)

 

(142,485

)

 

92,909

 

 

(604,148

)

 

(219,730

)

Gain on other interest rate derivatives

 

226,936

 

 

27,166

 

 

—

 

 

254,102

 

 

—

 

Interest income

 

145,297

 

 

121,394

 

 

94,849

 

 

368,554

 

 

258,324

 

Total revenue, net

 

526,434

 

 

507,094

 

 

677,116

 

 

1,603,484

 

 

1,425,910

 

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

181,453

 

 

160,311

 

 

135,333

 

 

496,005

 

 

387,716

 

Direct loan production costs

 

58,398

 

 

45,485

 

 

36,184

 

 

135,319

 

 

76,285

 

Marketing, travel, and entertainment

 

22,462

 

 

24,438

 

 

20,117

 

 

66,011

 

 

58,915

 

Depreciation and amortization

 

11,636

 

 

11,404

 

 

11,563

 

 

34,380

 

 

34,674

 

General and administrative

 

53,664

 

 

55,051

 

 

44,904

 

 

149,524

 

 

132,214

 

Servicing costs

 

25,009

 

 

25,787

 

 

33,640

 

 

81,120

 

 

102,160

 

Interest expense

 

141,102

 

 

108,651

 

 

93,724

 

 

348,421

 

 

239,445

 

Other expense (income)

 

421

 

 

(1,105

)

 

(76

)

 

(921

)

 

2,386

 

Total expenses

 

494,145

 

 

430,022

 

 

375,389

 

 

1,309,859

 

 

1,033,795

 

Earnings before income taxes

 

32,289

 

 

77,072

 

 

301,727

 

 

293,625

 

 

392,115

 

Provision for income taxes

 

344

 

 

786

 

 

734

 

 

4,863

 

 

941

 

Net income

 

31,945

 

 

76,286

 

 

300,993

 

 

288,762

 

 

391,174

 

Net income attributable to non-controlling interest

 

38,240

 

 

73,236

 

 

282,762

 

 

283,277

 

 

377,326

 

Net income (loss) attributable to UWMC

$

(6,295

)

$

3,050

 

$

18,231

 

$

5,485

 

$

13,848

 

 

 

 

 

 

 

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

 

 

 

 

 

Basic

$

(0.06

)

$

0.03

 

$

0.20

 

$

0.06

 

$

0.15

 

Diluted

$

(0.06

)

$

0.03

 

$

0.15

 

$

0.06

 

$

0.15

 

Weighted average shares outstanding:

Basic

 

99,801,301

 

 

95,387,609

 

 

93,290,736

 

 

96,530,282

 

 

93,107,576

 

Diluted

 

99,801,301

 

 

95,387,609

 

 

1,596,624,780

 

 

96,530,282

 

 

 

93,107,576

 

 

 

Addendum to Exhibit 99.1

This addendum includes the Company's Consolidated Balance Sheets as of September 30, 2024, and the preceding four quarters and Statements of Operations for the quarter ended September 30, 2024, 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,

2024

June 30,

2024

March 31,

2024

December 31,

2023

September 30,

2023

Assets

(Unaudited)

(Unaudited)

(Unaudited)

 

(Unaudited)

Cash and cash equivalents

$

636,327

$

680,153

$

605,639

$

497,468

$

729,616

Mortgage loans at fair value

 

10,141,683

 

8,236,183

 

7,338,135

 

5,449,884

 

5,560,039

Derivative assets

 

66,977

 

54,962

 

34,050

 

33,019

 

92,791

Investment securities at fair value, pledged

 

108,964

 

105,593

 

108,323

 

110,352

 

104,526

Accounts receivable, net

 

561,901

 

516,838

 

554,443

 

512,070

 

385,922

Mortgage servicing rights

 

2,800,054

 

2,650,090

 

3,191,803

 

4,026,136

 

4,352,219

Premises and equipment, net

 

147,981

 

146,750

 

145,265

 

146,417

 

146,509

Operating lease right-of-use asset

 

95,123

 

96,474

 

97,801

 

99,125

 

100,427

Finance lease right-of-use asset, net

 

24,020

 

25,061

 

26,890

 

29,111

 

31,803

Loans eligible for repurchase from Ginnie Mae

 

391,696

 

279,290

 

577,487

 

856,856

 

617,490

Other assets

 

145,072

 

130,247

 

117,498

 

111,416

 

82,795

Total assets

$

15,119,798

$

12,921,641

$

12,797,334

$

11,871,854

$

12,204,137

Liabilities and Equity

 

 

 

 

 

Warehouse lines of credit

$

9,207,746

$

7,429,591

$

6,681,917

$

4,902,090

$

5,066,900

Derivative liabilities

 

93,599

 

26,171

 

26,918

 

40,781

 

38,882

Secured line of credit

 

300,000

 

—

 

200,000

 

750,000

 

500,000

Borrowings against investment securities

 

93,662

 

91,406

 

94,064

 

93,814

 

97,328

Accounts payable, accrued expenses and other

 

573,865

 

486,138

 

477,765

 

469,101

 

503,890

Accrued distributions and dividends payable

 

159,818

 

159,766

 

159,702

 

159,572

 

159,572

Senior notes

 

1,991,216

 

1,990,233

 

1,989,250

 

1,988,267

 

1,987,284

Operating lease liability

 

101,833

 

103,247

 

104,637

 

106,024

 

107,389

Finance lease liability

 

25,836

 

26,787

 

28,536

 

30,678

 

33,291

Loans eligible for repurchase from Ginnie Mae

 

391,696

 

279,290

 

577,487

 

856,856

 

617,490

Total liabilities

 

12,939,271

 

10,592,629

 

10,340,276

 

9,397,183

 

9,112,026

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 - 113,150,968 as of September 30, 2024, 95,587,806 as of June 30, 2024, 94,945,635 as of March 31, 2024, 93,654,269 as of December 31, 2023 and 93,654,269 as of September 30, 2023

 

11

 

10

 

9

 

10

 

10

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, 1,485,027,775 shares issued and outstanding as of September 30, 2024 and 1,502,069,787 as each of the rest of periods presented

 

149

 

150

 

150

 

150

 

150

Additional paid-in capital

 

2,644

 

2,305

 

2,085

 

1,702

 

1,484

Retained earnings

 

116,561

 

111,021

 

111,980

 

110,690

 

130,233

Non-controlling interest

 

2,061,162

 

2,215,526

 

2,342,834

 

2,362,119

 

2,960,234

Total equity

 

2,180,527

 

2,329,012

 

2,457,058

 

2,474,671

 

3,092,111

Total liabilities and equity

$

15,119,798

$

12,921,641

$

12,797,334

$

11,871,854

 

$

12,204,137

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

For the three months ended

 

September 30,

2024

June 30,

2024

March 31,

2024

December 31,

2023

September 30,

2023

Revenue

 

 

 

 

 

Loan production income

$

465,548

 

$

357,109

 

$

298,954

 

$

225,436

 

$

288,930

 

Loan servicing income

 

134,753

 

 

143,910

 

 

184,702

 

 

206,498

 

 

200,428

 

Change in fair value of mortgage servicing rights

 

(446,100

)

 

(142,485

)

 

(15,563

)

 

(634,418

)

 

92,909

 

Gain on other interest rate derivatives

 

226,936

 

 

27,166

 

 

—

 

 

—

 

 

—

 

Interest income

 

145,297

 

 

121,394

 

 

101,863

 

 

87,901

 

 

94,849

 

Total revenue, net

 

526,434

 

 

507,094

 

 

569,956

 

 

(114,583

)

 

677,116

 

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

181,453

 

 

160,311

 

 

154,241

 

 

142,515

 

 

135,333

 

Direct loan production costs

 

58,398

 

 

45,485

 

 

31,436

 

 

27,977

 

 

36,184

 

Marketing, travel, and entertainment

 

22,462

 

 

24,438

 

 

19,111

 

 

25,600

 

 

20,117

 

Depreciation and amortization

 

11,636

 

 

11,404

 

 

11,340

 

 

11,472

 

 

11,563

 

General and administrative

 

53,664

 

 

55,051

 

 

40,809

 

 

38,209

 

 

44,904

 

Servicing costs

 

25,009

 

 

25,787

 

 

30,324

 

 

29,632

 

 

33,640

 

Interest expense

 

141,102

 

 

108,651

 

 

98,668

 

 

80,811

 

 

93,724

 

Other expense (income)

 

421

 

 

(1,105

)

 

(237

)

 

(2,391

)

 

(76

)

Total expenses

 

494,145

 

 

430,022

 

 

385,692

 

 

353,825

 

 

375,389

 

Earnings (loss) before income taxes

 

32,289

 

 

77,072

 

 

184,264

 

 

(468,408

)

 

301,727

 

Provision (benefit) for income taxes

 

344

 

 

786

 

 

3,733

 

 

(7,452

)

 

734

 

Net income (loss)

 

31,945

 

 

76,286

 

 

180,531

 

 

(460,956

)

 

300,993

 

Net income (loss) attributable to non-controlling interest

 

38,240

 

 

73,236

 

 

171,801

 

 

(433,878

)

 

282,762

 

Net income (loss) attributable to UWMC

$

(6,295

)

$

3,050

 

$

8,730

 

$

(27,078

)

$

18,231

 

 

 

 

 

 

 

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

 

 

 

 

 

Basic

$

(0.06

)

$

0.03

 

$

0.09

 

$

(0.29

)

$

0.20

 

Diluted

$

(0.06

)

$

0.03

 

$

0.09

 

$

(0.29

)

$

0.15

 

Weighted average shares outstanding:

Basic

 

99,801,301

 

 

95,387,609

 

 

94,365,991

 

 

93,654,269

 

 

93,290,736

 

Diluted

 

99,801,301

 

 

95,387,609

 

 

1,598,647,205

 

 

93,654,269

 

 

1,596,624,780

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107384410/en/

For inquiries regarding UWM, please contact: INVESTOR CONTACT BLAKE KOLO InvestorRelations@uwm.com

MEDIA CONTACT NICOLE ROBERTS Media@uwm.com