PONTIAC, Mich--(BUSINESS WIRE)--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, 2022. UWM, historically the #1 wholesale and #1 purchase mortgage originator in America, overtook Rocket Mortgage to become the #1 overall mortgage originator in the third quarter. The Company reported 3Q22 net income of $325.6 million and diluted earnings per share of $0.13. Total loan origination volume for the quarter was $33.5 billion, which included $27.7 billion in purchase volume. Net income for the third quarter was inclusive of a $236.8 million increase in fair value of MSRs.
Mat Ishbia, Chairman and CEO of UWMC, said, "The results of the third quarter speak for themselves. The momentum of the broker channel is accelerating. I have never been more proud of our team members and the broker community than I am today. Being #1 is amazing for UWM, but probably even more amazing for all mortgage brokers throughout America. It is validation that mortgage brokers are the best place for consumers to get a loan and for loan officers to work, and that our singular focus on helping brokers win was the right strategic decision. Winning this championship will be celebrated, however we realize that much work remains to help brokers continue to thrive and for UWM to continue to win with them."
Third Quarter 2022 Financial Highlights
- Originations of $33.5 billion in 3Q22, compared to $29.9 billion in 2Q22 and $63.0 billion in 3Q21
- Purchase originations of $27.7 billion in 3Q22, the best purchase quarter in UWM's history, and a 24% increase compared to $22.4 billion in 2Q22 and a 5% increase compared to $26.5 billion in 3Q21
- Net income of $325.6 million in 3Q22 compared to $215.4 million of net income in 2Q22 and $329.9 million of net income in 3Q21; YTD through 3Q22, net income of approximately $1 billion
- Total gain margin of 52 bps in 3Q22 compared to 99 bps in 2Q22 and 94 bps in 3Q21
- Total equity of $3.4 billion at September 30, 2022, compared to $3.2 billion at June 30, 2022 and $3.0 billion at September 30, 2021
- Unpaid principal balance of MSRs of $306.0 billion with a WAC of 3.44% at September 30, 2022, compared to $308.1 billion with a WAC of 3.19% at June 30, 2022, and $284.9 billion with a WAC of 2.95% at September 30, 2021
- Ended 3Q22 with approximately $2.9 billion of available liquidity, including $860.8 million of cash and self-warehouse, and $2.0 billion of available borrowing capacity, which includes $1.5 billion under a line of credit secured by agency MSRs
Production and Income Statement Highlights (dollars in thousands, except per share amounts) |
||||||||||||
|
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2021 |
||||||
Loan origination volume(1) |
|
$ |
33,464,480 |
|
|
$ |
29,881,809 |
|
|
$ |
63,004,342 |
|
Total gain margin(1)(2) |
|
|
0.52 |
% |
|
|
0.99 |
% |
|
|
0.94 |
% |
Net income |
|
$ |
325,610 |
|
|
$ |
215,445 |
|
|
$ |
329,857 |
|
Diluted EPS |
|
|
0.13 |
|
|
|
0.09 |
|
|
|
0.16 |
|
Adjusted diluted EPS(3) |
|
|
0.16 |
|
|
|
0.10 |
|
|
|
N/A |
|
Adjusted net income(3) |
|
|
252,543 |
|
|
|
165,274 |
|
|
|
254,805 |
|
Adjusted EBITDA(3) |
|
|
(1,392 |
) |
|
|
94,994 |
|
|
|
290,382 |
|
(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 2022 |
|
Q2 2022 |
|
Q3 2021 |
|||
Cash and cash equivalents |
|
$ |
799,534 |
|
$ |
958,656 |
|
$ |
950,910 |
Mortgage loans at fair value |
|
|
5,341,217 |
|
|
5,332,383 |
|
|
11,736,642 |
Mortgage servicing rights |
|
|
4,305,686 |
|
|
3,736,359 |
|
|
2,900,310 |
Total assets |
|
|
11,890,083 |
|
|
11,016,910 |
|
|
16,480,950 |
Non-funding debt (1) |
|
|
2,146,157 |
|
|
2,153,795 |
|
|
1,580,144 |
Total equity |
|
|
3,392,033 |
|
|
3,223,902 |
|
|
2,994,028 |
Non-funding debt to equity (1) |
|
|
0.63 |
|
|
0.67 |
|
|
0.53 |
(1) Non-GAAP metric (see discussion and reconciliations below) |
|||||||||
Mortgage Servicing Rights (dollars in thousands) |
||||||||||||
|
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2021 |
||||||
Unpaid principal balance |
|
$ |
306,016,670 |
|
|
$ |
308,093,311 |
|
|
$ |
284,918,293 |
|
Weighted average interest rate |
|
|
3.44 |
% |
|
|
3.19 |
% |
|
|
2.95 |
% |
Weighted average age (months) |
|
|
14 |
|
|
|
13 |
|
|
|
8 |
|
Technology and Loan Product Launches
- Multiple new loan products in Q3, including temporary rate buydowns, standalone and piggyback HELOCs, and expanded jumbo ARM offerings
- TRAC (Title Review and Closing), a new process for title work and closing that increases speed-to-close and decreases borrower costs typically associated with the lender's title policy
- UClose 3.0, a major enhancement to our client closing platform that offers hybrid and virtual closings, giving borrowers the ability to close anywhere and anytime on any device
- UWM Partner Academy, an online Learning Management System (LMS), available to UWM partners at no cost. This LMS offers a library of mortgage-related tutorial videos and quizzes. The platform assists our clients in training new loan officers as well as sharpening the skills and knowledge of more experienced loan officers
Operational Highlights
- Averaged an Application to Clear to Close of approximately 17 business days in 3Q22, about twice as fast as the industry, which management estimates to be at an average of 44 days1 during 2Q22
- Achieved Net Promoter Score of +88.4 in 3Q22, up from +87.0 in 3Q21
- Our 0.71% 60+ days delinquency and our 0.55% forbearance rates, as of September 30, 2022, are significantly better than the industry averages of 1.7%2 and 0.69%,3 respectively, highlighting our strong credit quality
- Celebrated National Mortgage Brokers Day on July 18th by hosting 100 independent mortgage brokers at the New York Stock Exchange to ring the closing bell and educate consumers that mortgage brokers are the fastest, easiest and cheapest way to get a mortgage
Product and Investor Mix - Unpaid Principal Balance of Originations (dollars in thousands) |
|||||||||
Purchase: |
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2021 |
|||
Conventional |
|
$ |
19,246,298 |
|
$ |
14,891,850 |
|
$ |
18,633,123 |
Jumbo |
|
|
854,925 |
|
|
1,718,616 |
|
|
3,368,094 |
Government |
|
|
7,592,116 |
|
|
5,773,192 |
|
|
4,472,931 |
Total Purchase |
|
$ |
27,693,339 |
|
$ |
22,383,658 |
|
$ |
26,474,148 |
|
|
|
|
|
|
|
|||
Refinance: |
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2021 |
|||
Conventional |
|
$ |
3,935,550 |
|
$ |
5,335,495 |
|
$ |
31,353,081 |
Jumbo |
|
|
195,464 |
|
|
382,393 |
|
|
2,244,459 |
Government |
|
|
1,640,127 |
|
|
1,780,263 |
|
|
2,932,654 |
Total Refinance |
|
$ |
5,771,141 |
|
$ |
7,498,151 |
|
$ |
36,530,194 |
Total Originations |
|
$ |
33,464,480 |
|
$ |
29,881,809 |
|
$ |
63,004,342 |
Mat Ishbia, Chairman and CEO of UWMC also said, “UWM has never been better positioned than we are today. Our technology is the best it has ever been, our service levels and client satisfaction are at all-time highs, our clients are winning in today's purchase environment and our team members are thriving in a culture where they don't worry about layoffs and can instead focus on their own growth and serving the broker community.”
Fourth Quarter 2022 Outlook
We anticipate fourth quarter production to be in the $19-$26 billion range, with gain margin from 40 to 70 basis points.
Dividend
Subsequent to September 30, 2022, for the eighth 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 10, 2023, to stockholders of record at the close of business on December 9, 2022. Additionally, the Board approved a proportional distribution to SFS Corp., which is payable on January 10, 2023.
Earnings Conference Call Details
As previously announced, the Company will hold a conference call for financial analysts and investors on Friday, November 4, 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:
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.
1 Source: ICE Mortgage Technology; 2 Source: CoreLogic (As of July 2022); 3 Source: Mortgage Bankers Association.
Non-GAAP Metrics
The Company's net income for periods prior to the first quarter of 2021 does not reflect a significant income tax provision, since UWM (the Company's accounting predecessor) is a pass-through entity not subject to federal and most state income taxes. For periods commencing with the first quarter of 2021, 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 23.56% estimated annual effective tax rate. “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 2022 |
|
Q2 2022 |
|
Q3 2021 |
||||||
Earnings before income taxes |
|
$ |
330,381 |
|
|
$ |
216,214 |
|
|
$ |
333,340 |
|
Impact of estimated annual effective tax rate of 23.56% |
|
|
(77,838 |
) |
|
|
(50,940 |
) |
|
|
(78,535 |
) |
Adjusted net income |
|
$ |
252,543 |
|
|
$ |
165,274 |
|
|
$ |
254,805 |
|
Adjusted diluted EPS |
|
Q3 2022 |
|
Q2 2022 |
||
Diluted weighted average Class A common stock outstanding |
|
|
92,571,886 |
|
|
92,533,620 |
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) |
|
|
1,594,641,673 |
|
|
1,594,603,407 |
|
|
|
|
|
||
Adjusted net income |
|
$ |
252,543 |
|
$ |
165,274 |
Adjusted diluted EPS |
|
|
0.16 |
|
|
0.10 |
|
|
|
|
|
||
(1) Reflects the pro forma exchange and conversion of antidilutive Class D common stock to Class A common stock. |
||||||
Adjusted EBITDA |
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2021 |
||||||
Net income |
|
$ |
325,610 |
|
|
$ |
215,445 |
|
|
$ |
329,857 |
|
Interest expense on non-funding debt |
|
|
29,786 |
|
|
|
29,692 |
|
|
|
22,034 |
|
Provision for income taxes |
|
|
4,771 |
|
|
|
769 |
|
|
|
3,483 |
|
Depreciation and amortization |
|
|
11,426 |
|
|
|
11,181 |
|
|
|
9,034 |
|
Stock-based compensation expense |
|
|
1,986 |
|
|
|
1,676 |
|
|
|
2,126 |
|
Change in fair value of MSRs due to valuation inputs or assumptions |
|
|
(373,232 |
) |
|
|
(176,456 |
) |
|
|
(61,477 |
) |
Deferred compensation, net |
|
|
(8,468 |
) |
|
|
3,125 |
|
|
|
(5,965 |
) |
Change in fair value of Public and Private Warrants |
|
|
(755 |
) |
|
|
(2,850 |
) |
|
|
(12,110 |
) |
Change in Tax Receivable Agreement liability |
|
|
— |
|
|
|
2,500 |
|
|
|
3,400 |
|
Change in fair value of investment securities |
|
|
7,484 |
|
|
|
9,912 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(1,392 |
) |
|
$ |
94,994 |
|
|
$ |
290,382 |
|
Non-funding debt and non-funding debt to equity |
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2021 |
|||
Senior notes |
|
$ |
1,983,099 |
|
$ |
1,982,103 |
|
$ |
1,484,370 |
Borrowings against investment securities |
|
|
114,875 |
|
|
118,786 |
|
|
32,560 |
Equipment note payable |
|
|
1,266 |
|
|
1,536 |
|
|
2,343 |
Finance lease liability |
|
|
46,917 |
|
|
51,370 |
|
|
60,871 |
Total non-funding debt |
|
$ |
2,146,157 |
|
$ |
2,153,796 |
|
$ |
1,580,144 |
Total equity |
|
$ |
3,392,033 |
|
$ |
3,223,902 |
|
$ |
2,994,028 |
Non-funding debt to equity |
|
|
0.63 |
|
|
0.67 |
|
|
0.53 |
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 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 “Game On” strategy and its impact on our business and industry; (7) our foundation and strategies for success and growth and the drivers of that growth; (8) our expectations related to production and margin in the fourth quarter; (9) our “All-In” initiative and its impact on our business and industry; (10) our performance in shifting market conditions and the comparison of such performance against our competitors; (11) our ability to produce results at or above prior levels and strategies for producing such results; (12) our position and ability to capitalize on opportunities and the impacts to our results;; (13) our investments in technology and the impact to our operations and financial results; and (14) our purchase production and product mix. 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 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 Independent Mortgage Advisor 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 Holding 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 8 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,
|
||
Assets |
(Unaudited) |
|
|
||
Cash and cash equivalents |
$ |
799,534 |
|
$ |
731,088 |
Mortgage loans at fair value |
|
5,341,217 |
|
|
17,473,324 |
Derivative assets |
|
385,348 |
|
|
67,356 |
Investment securities at fair value, pledged |
|
115,079 |
|
|
152,263 |
Accounts receivable, net |
|
556,153 |
|
|
415,691 |
Mortgage servicing rights |
|
4,305,686 |
|
|
3,314,952 |
Premises and equipment, net |
|
152,172 |
|
|
151,687 |
Operating lease right-of-use asset, net (includes $101,377 and $104,595 with related parties) |
|
101,377 |
|
|
104,828 |
Finance lease right-of-use asset (includes $27,384 and $28,619 with related parties) |
|
45,667 |
|
|
57,024 |
Other assets |
|
87,850 |
|
|
60,145 |
Total assets |
$ |
11,890,083 |
|
$ |
22,528,358 |
Liabilities and Equity |
|
|
|
||
Warehouse lines of credit |
$ |
4,712,719 |
|
$ |
15,954,938 |
Derivative liabilities |
|
215,330 |
|
|
36,741 |
Borrowings against investment securities |
|
114,875 |
|
|
118,786 |
Accounts payable, accrued expenses and other |
|
1,157,054 |
|
|
1,087,411 |
Accrued distributions and dividends payable |
|
159,465 |
|
|
9,171 |
Senior notes |
|
1,983,099 |
|
|
1,980,112 |
Operating lease liability (includes $108,591 and $111,999 with related parties) |
|
108,591 |
|
|
112,231 |
Finance lease liability (includes $28,248 and $29,087 with related parties) |
|
46,917 |
|
|
57,967 |
Total liabilities |
|
8,498,050 |
|
|
19,357,357 |
Equity: |
|
|
|
||
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of September 30, 2022 |
|
— |
|
|
— |
Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 92,575,425 shares issued and outstanding as of September 30, 2022 |
|
9 |
|
|
9 |
Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2022 |
|
— |
|
|
— |
Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 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, 2022 |
|
150 |
|
|
150 |
Additional paid-in capital |
|
784 |
|
|
437 |
Retained earnings |
|
141,194 |
|
|
141,805 |
Non-controlling interest |
|
3,249,896 |
|
|
3,028,600 |
Total equity |
|
3,392,033 |
|
|
3,171,001 |
Total liabilities and equity |
$ |
11,890,083 |
|
$ |
22,528,358 |
UWM HOLDINGS CORPORATION CONSOLIDATED BALANCE SHEETS (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,
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|||||||
Loan production income |
$ |
172,402 |
|
$ |
296,535 |
|
$ |
589,461 |
|
|
$ |
852,808 |
|
$ |
2,143,400 |
|
Loan servicing income |
|
196,781 |
|
|
179,501 |
|
|
174,695 |
|
|
|
574,847 |
|
|
443,762 |
|
Change in fair value of mortgage servicing rights |
|
236,780 |
|
|
26,169 |
|
|
(170,462 |
) |
|
|
434,912 |
|
|
(448,825 |
) |
Gain (loss) on sale of mortgage servicing rights |
|
— |
|
|
— |
|
|
(5,443 |
) |
|
|
— |
|
|
(670 |
) |
Interest income |
|
78,210 |
|
|
62,020 |
|
|
102,063 |
|
|
|
207,625 |
|
|
227,169 |
|
Total revenue, net |
|
684,173 |
|
|
564,225 |
|
|
690,314 |
|
|
|
2,070,192 |
|
|
2,364,836 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|||||||
Salaries, commissions and benefits |
|
135,028 |
|
|
138,983 |
|
|
164,971 |
|
|
|
434,620 |
|
|
550,983 |
|
Direct loan production costs |
|
20,498 |
|
|
25,757 |
|
|
18,980 |
|
|
|
72,973 |
|
|
47,660 |
|
Marketing, travel, and entertainment |
|
17,730 |
|
|
20,625 |
|
|
14,138 |
|
|
|
51,192 |
|
|
37,138 |
|
Depreciation and amortization |
|
11,426 |
|
|
11,181 |
|
|
9,034 |
|
|
|
33,522 |
|
|
24,676 |
|
General and administrative |
|
51,649 |
|
|
39,909 |
|
|
39,148 |
|
|
|
129,881 |
|
|
96,867 |
|
Servicing costs |
|
37,596 |
|
|
44,435 |
|
|
29,192 |
|
|
|
129,215 |
|
|
72,767 |
|
Interest expense |
|
73,136 |
|
|
57,559 |
|
|
90,221 |
|
|
|
191,069 |
|
|
215,884 |
|
Other expense/(income) |
|
6,729 |
|
|
9,562 |
|
|
(8,710 |
) |
|
|
23,793 |
|
|
(27,544 |
) |
Total expenses |
|
353,792 |
|
|
348,011 |
|
|
356,974 |
|
|
|
1,066,265 |
|
|
1,018,431 |
|
Earnings before income taxes |
|
330,381 |
|
|
216,214 |
|
|
333,340 |
|
|
|
1,003,927 |
|
|
1,346,405 |
|
Provision for income taxes |
|
4,771 |
|
|
769 |
|
|
3,483 |
|
|
|
9,585 |
|
|
17,831 |
|
Net income |
|
325,610 |
|
|
215,445 |
|
|
329,857 |
|
|
|
994,342 |
|
|
1,328,574 |
|
Net income attributable to non-controlling interest |
|
313,914 |
|
|
207,079 |
|
|
304,611 |
|
|
|
952,350 |
|
|
1,247,079 |
|
Net income attributable to UWMC |
$ |
11,696 |
|
$ |
8,366 |
|
$ |
25,246 |
|
|
$ |
41,992 |
|
$ |
81,495 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share of Class A common stock: |
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.13 |
|
$ |
0.09 |
|
$ |
0.25 |
|
|
$ |
0.45 |
|
$ |
0.80 |
|
Diluted |
$ |
0.13 |
|
$ |
0.09 |
|
$ |
0.16 |
|
|
$ |
0.45 |
|
$ |
0.55 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
92,571,886 |
|
|
92,533,620 |
|
|
101,106,023 |
|
|
|
92,441,342 |
|
|
102,247,594 |
|
Diluted |
|
92,571,886 |
|
|
92,533,620 |
|
|
1,603,710,511 |
|
|
|
92,441,342 |
|
|
1,604,567,758 |
|
Addendum to Exhibit 99.1
This addendum includes the Company's Consolidated Balance Sheets as of September 30, 2022, and the preceding four quarters and Statements of Operations for the quarter ended September 30, 2022, 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,
|
|||||
Assets |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
|||||
Cash and cash equivalents |
$ |
799,534 |
$ |
958,656 |
$ |
901,174 |
$ |
731,088 |
$ |
950,910 |
Mortgage loans at fair value |
|
5,341,217 |
|
5,332,383 |
|
5,208,167 |
|
17,473,324 |
|
11,736,642 |
Derivative assets |
|
385,348 |
|
125,079 |
|
241,932 |
|
67,356 |
|
143,807 |
Investment securities at fair value, pledged |
|
115,079 |
|
125,193 |
|
138,417 |
|
152,263 |
|
41,809 |
Accounts receivable, net |
|
556,153 |
|
350,090 |
|
617,608 |
|
415,691 |
|
340,028 |
Mortgage servicing rights |
|
4,305,686 |
|
3,736,359 |
|
3,514,102 |
|
3,314,952 |
|
2,900,310 |
Premises and equipment, net |
|
152,172 |
|
153,971 |
|
151,206 |
|
151,687 |
|
145,774 |
Operating lease right-of-use asset, net |
|
101,377 |
|
102,533 |
|
103,670 |
|
104,828 |
|
105,902 |
Finance lease right-of-use asset |
|
45,667 |
|
50,179 |
|
53,857 |
|
57,024 |
|
60,113 |
Other assets |
|
87,850 |
|
82,467 |
|
60,820 |
|
60,145 |
|
55,655 |
Total assets |
$ |
11,890,083 |
$ |
11,016,910 |
$ |
10,990,953 |
$ |
22,528,358 |
$ |
16,480,950 |
Liabilities and Equity |
|
|
|
|
|
|||||
Warehouse lines of credit |
$ |
4,712,719 |
$ |
4,497,353 |
$ |
4,076,829 |
$ |
15,954,938 |
$ |
10,487,950 |
Derivative liabilities |
|
215,330 |
|
93,958 |
|
115,430 |
|
36,741 |
|
61,434 |
Borrowings against investment securities |
|
114,875 |
|
118,786 |
|
118,786 |
|
118,786 |
|
32,560 |
Accounts payable, accrued expenses and other |
|
1,157,054 |
|
780,166 |
|
1,207,145 |
|
1,087,411 |
|
1,231,826 |
Accrued distributions and dividends payable |
|
159,465 |
|
159,461 |
|
159,460 |
|
9,171 |
|
10,087 |
Senior notes |
|
1,983,099 |
|
1,982,103 |
|
1,981,106 |
|
1,980,112 |
|
1,484,370 |
Operating lease liability |
|
108,591 |
|
109,811 |
|
111,010 |
|
112,231 |
|
117,824 |
Finance lease liability |
|
46,917 |
|
51,370 |
|
54,945 |
|
57,967 |
|
60,871 |
Total liabilities |
|
8,498,050 |
|
7,793,008 |
|
7,824,711 |
|
19,357,357 |
|
13,486,922 |
Equity: |
|
|
|
|
|
|||||
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of September 30, 2022 |
|
— |
|
— |
|
— |
|
— |
|
— |
Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 92,575,425 shares issued and outstanding as of September 30, 2022 |
|
9 |
|
9 |
|
9 |
|
9 |
|
10 |
Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2022 |
|
— |
|
— |
|
— |
|
— |
|
— |
Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 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, 2022 |
|
150 |
|
150 |
|
150 |
|
150 |
|
150 |
Additional paid-in capital |
|
784 |
|
669 |
|
542 |
|
437 |
|
313 |
Retained earnings |
|
141,194 |
|
137,955 |
|
138,834 |
|
141,805 |
|
129,815 |
Non-controlling interest |
|
3,249,896 |
|
3,085,119 |
|
3,026,707 |
|
3,028,600 |
|
2,863,740 |
Total equity |
|
3,392,033 |
|
3,223,902 |
|
3,166,242 |
|
3,171,001 |
|
2,994,028 |
Total liabilities and equity |
$ |
11,890,083 |
$ |
11,016,910 |
$ |
10,990,953 |
$ |
22,528,358 |
$ |
16,480,950 |
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except shares and per share amounts) (Unaudited) |
||||||||||||
|
For the three months ended |
|||||||||||
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||
Revenue |
|
|
|
|
|
|||||||
Loan production income |
$ |
172,402 |
$ |
296,535 |
$ |
383,871 |
$ |
442,407 |
|
$ |
589,461 |
|
Loan servicing income |
|
196,781 |
|
179,501 |
|
198,565 |
|
194,976 |
|
|
174,695 |
|
Change in fair value of mortgage servicing rights |
|
236,780 |
|
26,169 |
|
171,963 |
|
(138,988 |
) |
|
(170,462 |
) |
Gain (loss) on sale of mortgage servicing rights |
|
— |
|
— |
|
— |
|
2,461 |
|
|
(5,443 |
) |
Interest income |
|
78,210 |
|
62,020 |
|
67,395 |
|
104,601 |
|
|
102,063 |
|
Total revenue, net |
|
684,173 |
|
564,225 |
|
821,794 |
|
605,457 |
|
|
690,314 |
|
Expenses |
|
|
|
|
|
|||||||
Salaries, commissions and benefits |
|
135,028 |
|
138,983 |
|
160,609 |
|
146,697 |
|
|
164,971 |
|
Direct loan production costs |
|
20,498 |
|
25,757 |
|
26,718 |
|
25,292 |
|
|
18,980 |
|
Marketing, travel, and entertainment |
|
17,730 |
|
20,625 |
|
12,837 |
|
25,334 |
|
|
14,138 |
|
Depreciation and amortization |
|
11,426 |
|
11,181 |
|
10,915 |
|
10,422 |
|
|
9,034 |
|
General and administrative |
|
51,649 |
|
39,909 |
|
38,323 |
|
36,467 |
|
|
39,148 |
|
Servicing costs |
|
37,596 |
|
44,435 |
|
47,184 |
|
36,200 |
|
|
29,192 |
|
Interest expense |
|
73,136 |
|
57,559 |
|
60,374 |
|
88,772 |
|
|
90,221 |
|
Other expense/(income) |
|
6,729 |
|
9,562 |
|
7,502 |
|
4,437 |
|
|
(8,710 |
) |
Total expenses |
|
353,792 |
|
348,011 |
|
364,462 |
|
373,621 |
|
|
356,974 |
|
Earnings before income taxes |
|
330,381 |
|
216,214 |
|
457,332 |
|
231,836 |
|
|
333,340 |
|
Provision for income taxes |
|
4,771 |
|
769 |
|
4,045 |
|
(7,990 |
) |
|
3,483 |
|
Net income |
|
325,610 |
|
215,445 |
|
453,287 |
|
239,826 |
|
|
329,857 |
|
Net income attributable to non-controlling interest |
|
313,914 |
|
207,079 |
|
431,357 |
|
222,876 |
|
|
304,611 |
|
Net income attributable to UWMC |
$ |
11,696 |
$ |
8,366 |
$ |
21,930 |
$ |
16,950 |
|
$ |
25,246 |
|
|
|
|
|
|
|
|||||||
Earnings per share of Class A common stock: |
|
|
|
|
|
|||||||
Basic |
$ |
0.13 |
$ |
0.09 |
$ |
0.24 |
$ |
0.17 |
|
$ |
0.25 |
|
Diluted |
$ |
0.13 |
$ |
0.09 |
$ |
0.22 |
$ |
0.11 |
|
$ |
0.16 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|||||||
Basic |
|
92,571,886 |
|
92,533,620 |
|
92,214,594 |
|
97,138,073 |
|
|
101,106,023 |
|
Diluted |
|
92,571,886 |
|
92,533,620 |
|
1,594,284,381 |
|
1,599,785,759 |
|
|
1,603,710,511 |
|
