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UWM Holdings Corporation Announces Fourth Quarter & Full Year 2021 Results

March, 01, 2022

$239.8 million in 4Q21 Net Income; $1.6 billion in Full Year 2021 Net Income;
Record Fourth Quarter Total Loan Volume of $55.2 billion, including Purchase Volume of $24.5 billion

UWM Holdings Corporation (NYSE: UWMC), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), the #1 wholesale mortgage lender in America, today announced its results for the fourth quarter and full year ended December 31, 2021. The Company reported 4Q21 net income of $239.8 million, full year 2021 net income of $1.6 billion and diluted earnings per share for 2021 of $0.66. Loan origination volume for the quarter was $55.2 billion, which included $24.5 billion in purchase volume. Net income for the fourth quarter was inclusive of a $139.0 million decline in fair value of mortgage servicing rights ("MSRs"). Net income for full year 2021 was inclusive of a $587.8 million decline in fair value of MSRs.

Mat Ishbia, Chairman and CEO of UWMC, said: "2021 was a fantastic year for UWM with incredible milestones: from becoming a public company to delivering another year of record production. We have continued to be relentless about developing and launching innovative technology solutions like BOLT, the most advanced underwriting system in the Industry, to enable sustainable and profitable growth for both UWM and our broker partners. We also delivered our best fourth quarter production of all time, coupled with growth in the broker channel."

Ishbia continued, "As the industry navigates rising rates and low housing inventory, UWM is well-positioned to succeed by doing what we do best - proving a mortgage broker is the fastest, easiest and most affordable option for borrowers. With continued channel growth and elite industry-leading service, we are poised to reach our goal of becoming the nation's #1 overall mortgage lender."

Fourth Quarter 2021 Financial Highlights

  • Originations of $55.2 billion, slightly above the $54.7 billion originated in 4Q20
  • Purchase originations of $24.5 billion, a 103% increase compared to $12.1 billion in 4Q20
  • Net income of $239.8 million inclusive of a $139.0 million decline in fair value of MSRs, as compared to $1.4 billion of net income in 4Q20 inclusive of $215.4 million of expenses related to amortization, impairment, and payoffs of MSRs
  • Total gain margin of 80 bps compared to 305 bps in 4Q20
  • Achieved approximately 33%1 market share of the wholesale channel for the quarter ended December 31, 2021
  • Accelerated stock buyback, repurchasing 8,755,713 shares of Class A common stock in 4Q21 for $60.6 million, at an average price per share of $6.93

Full Year 2021 Financial Highlights

  • Originations of $226.5 billion in 2021, a 24% increase from $182.5 billion in 2020
  • Purchase originations of $87.3 billion in 2021, a 103% increase compared to $42.9 billion in 2020
  • Net income of $1.6 billion in 2021 inclusive of a $587.8 million decline in fair value of MSRs, as compared to $3.4 billion of net income in 2020 inclusive of $573.1 million of expenses related to amortization, impairment, and payoffs of MSRs
  • Total gain margin of 114 bps in 2021 compared to 249 bps in 2020
  • Largest wholesale mortgage lender in the U.S. by closed loan volume seven years in a row, with approximately 31%2 market share of the wholesale channel for the year ended December 31, 2021
  • Total equity of $3.2 billion at December 31, 2021 as compared to $2.4 billion at December 31, 2020
  • Unpaid principal balance of MSRs increased to $319.8 billion with a WAC of 2.94% at December 31, 2021 as compared to $188.3 billion with a WAC of 3.13% at December 31, 2020
  • Through December 31, 2021, shares of Class A common stock repurchased by the Company totaled 11,498,330 for $81.6 million, at an average price per share of $7.10

Production and Income Statement Highlights (dollars in thousands)

 

 

Q4 2021

 

Q3 2021

 

Q4 2020

 

FY 2021

 

FY 2020

Funded loan volume(1)

 

$

55,194,365

 

 

$

63,004,342

 

 

$

54,678,923

 

 

$

226,503,692

 

 

$

182,547,641

 

Total gain margin(1)(2)

 

 

0.80

%

 

 

0.94

%

 

 

3.05

%

 

 

1.14

%

 

 

2.49

%

Net income

 

$

239,826

 

 

$

329,857

 

 

$

1,371,791

 

 

$

1,568,400

 

 

$

3,382,510

 

Adjusted net income(3)

 

 

177,123

 

 

 

254,672

 

 

 

1,048,774

 

 

 

1,205,776

 

 

 

2,586,109

 

Adjusted EBITDA(3)

 

 

206,887

 

 

 

290,382

 

 

 

1,357,234

 

 

 

1,418,337

 

 

 

3,454,091

 

   

(1)

 

Key operational metric - see discussion below.

   

(2)

 

Represents total loan production income divided by total production.

   

(3)

 

Non-GAAP metric - see discussion below.

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

 

 

Q4 2021

 

Q3 2021

 

Q4 2020

Cash and cash equivalents

 

$

731,088

 

$

950,910

 

$

1,223,837

Mortgage loans at fair value

 

 

17,473,324

 

 

11,736,642

 

 

7,916,515

Mortgage servicing rights (fair value at Q4 2021 and Q3 2021; amortized cost at Q4 2020)(1)

 

 

3,314,952

 

 

2,900,310

 

 

1,756,864

Total assets

 

 

22,528,358

 

 

16,480,950

 

 

11,493,476

Non-funding debt (2)

 

 

2,158,911

 

 

1,580,143

 

 

1,159,283

Total equity

 

 

3,171,001

 

 

2,994,028

 

 

2,374,280

Non-funding debt to equity (2)

 

 

0.68

 

 

0.53

 

 

0.49

   

(1)

 

The Company elected the fair value method of accounting for mortgage servicing rights effective January 1, 2021.

   

(2)

 

Non-GAAP metric - please see discussion below.

In the fourth quarter 2021, the Company proactively raised the loan limits on conforming loans in anticipation of the upcoming FHFA increase effective January 1, 2022. As a result of this early roll-out of the increased loan size limits and the aggregation of loans for private label securitization transactions, the Company's outstanding loan balances and the amounts outstanding under the Company's warehouse lines materially increased as of December 31, 2021, and in conjunction, our cash balance decreased. However, these amounts returned to more normalized levels when these loans were sold to the GSEs in early January 2022. As of January 31, 2022, our mortgage loans at fair value had decreased to $7.9 billion, as compared to $17.5 billion at December 31, 2021, and the amounts outstanding under our warehouse lines of credit had decreased to $7.0 billion as of January 31, 2022, as compared to $16.0 billion at December 31, 2021. In addition, our cash balance as of January 31, 2022, had increased to $887.7 million, as compared to $731.1 million at December 31, 2021.

"Our decision to temporarily increase our assets and utilize our cash during Q4 is a great example of the benefits of being a public company and having significantly more cash, equity and liquidity than we have had through most of our history," said Ishbia. "Being able to opportunistically roll out higher conforming loan limits early was a strategic move giving borrowers and brokers a financing option that they would not have otherwise had. It serves as another example of the partnership and value that UWM provides to independent mortgage brokers."

________________________________

1,2 Source: Industry Mortgage Finance

Mortgage Servicing Rights (dollars in thousands)

 

 

Q4 2021

 

Q3 2021

 

Q4 2020

Unpaid principal balance

 

$

319,807,457

 

 

$

284,918,293

 

 

$

188,268,883

 

Weighted average interest rate

 

 

2.94

%

 

 

2.95

%

 

 

3.13

%

Weighted average age (months)

 

 

9

 

 

 

8

 

 

 

6

 

Technology Update

  • BOLT was developed in-house by a team of technology and mortgage experts and launched in Q3 of 2021. This groundbreaking technology sped up the application to clear-to-close time (“Clear to Close”) on conventional loans that utilized BOLT by an average of approximately 5 days
  • UWM Appraisal Direct, also launched in Q3 of 2021, provides mortgage brokers a streamlined, transparent process for the scheduling, execution and delivery of an appraisal that they can easily track, which will deliver faster appraisals to offer a better experience and relieve a key pain point in the mortgage industry

Operational Highlights

  • We maintained an average Clear to Close of approximately 19 business days in 4Q21 while management estimates an industry average of 43 days3 during 4Q21
  • Our 0.81% 60+ days delinquency and our 0.57% forbearance rates, as of December 31, 2021, are significantly better than the industry averages of 3.38%4 and 1.41%4, respectively, highlighting our strong credit quality

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

Purchase:

 

Q4 2021

 

Q3 2021

 

Q4 2020

 

FY 2021

 

FY 2020

Conventional

 

$

16,643,586

 

$

18,633,123

 

$

10,638,926

 

$

63,026,794

 

$

33,717,939

Jumbo

 

 

2,861,921

 

 

3,368,094

 

 

661

 

 

9,395,143

 

 

583,299

Government

 

 

4,996,092

 

 

4,472,931

 

 

1,457,197

 

 

14,833,808

 

 

8,619,874

Total Purchase

 

$

24,501,599

 

$

26,474,148

 

$

12,096,784

 

$

87,255,745

 

$

42,921,112

 

 

 

 

 

 

 

 

 

 

 

Refinance:

 

Q4 2021

 

Q3 2021

 

Q4 2020

 

FY 2021

 

FY 2020

Conventional

 

$

25,032,327

 

$

31,353,081

 

$

37,647,428

 

$

120,152,065

 

$

119,807,647

Jumbo

 

 

2,074,353

 

 

2,244,459

 

 

 

 

7,061,299

 

 

897,409

Government

 

 

3,586,086

 

 

2,932,654

 

 

4,934,711

 

 

12,034,583

 

 

18,921,473

Total Refinance

 

$

30,692,766

 

$

36,530,194

 

$

42,582,139

 

$

139,247,947

 

$

139,626,529

Total Originations

 

$

55,194,365

 

$

63,004,342

 

$

54,678,923

 

$

226,503,692

 

$

182,547,641

"We are excited by the success and significant growth we are seeing in the broker channel," said Ishbia. "Not only are more consumers learning that a mortgage broker is the fastest, easiest and most affordable way to obtain a mortgage, more and more retail loan officers are also realizing that they can better serve consumers and accelerate their own career growth by becoming independent mortgage brokers.”

First Quarter 2022 Outlook

We anticipate first quarter production to be in the $33-$42 billion range, with expected gain margin between 75 and 85 bps.

Dividend

Subsequent to December 31, 2021, for the fifth 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 April 11, 2022 (the “Dividend Payment Date”) to stockholders of record at the close of business on March 14, 2022. On or before the Dividend Payment Date, the Board, in its capacity as the Manager of UWM Holdings LLC ("Holdings LLC") and pursuant to its authority under the Holdings LLC Amended and Restated Operating Agreement, will determine whether to (a) make distributions from Holdings LLC to only UWM Holdings Corporation, as the owner of the Class A Units of Holdings LLC with the proportional amount due to SFS Holding Corp. ("SFS Corp.") as the owner of the Class B Units of Holdings LLC, being distributed upon the sooner to occur of (i) the Board making a determination to do so or (ii) the date on which Class B Units of Holdings LLC are converted into shares of Class B common stock of UWMC or (b) make proportional and simultaneous distributions from Holdings LLC to both UWM Holdings Corporation, as the owner of the Class A Units of Holdings LLC and to SFS Corp. as the owner of the Class B Units of Holdings LLC.

_______________________________

3 Source: ICE Mortgage Technology; 4 Source: Mortgage Bankers Association

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Tuesday, March 1, 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 transcript will be available on the Company's investor relations website at https://investors.uwm.com/.

Key Operational Metrics

“Funded loan volume” and “Total gain margin” are key operational metrics that the Company's management uses to evaluate the performance of the business. “Funded loan 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 funded loan volume for the applicable periods.

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 23.6% estimated annual effective tax rate. “Adjusted net income” is a Non-GAAP Metric.

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 (for periods subsequent to the election of the fair value method accounting for MSRs) and the impairment or recovery of MSRs (for periods prior to the election of the fair value method of accounting for MSRs), 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, or impairment or recovery of MSRs prior to the election of the fair value method of accounting for MSRs, 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, operating lines of credit, borrowings against investment securities, equipment note payable, and finance leases as reported on our balance sheet 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 table presents these non-GAAP financial measures along with their most directly comparable financial measure calculated in accordance with GAAP (dollars in thousands):

Adjusted Net Income

 

Q4 2021

 

Q3 2021

 

Q4 2020

 

FY 2021

 

FY 2020

Earnings before income taxes

 

$

231,836

 

 

$

333,340

 

 

$

1,372,741

 

 

$

1,578,241

 

 

$

3,384,960

 

Impact of estimated annual effective tax rate of 23.6%

 

 

(54,713

)

 

 

(78,668

)

 

 

(323,967

)

 

 

(372,465

)

 

 

(798,851

)

Adjusted Net Income

 

$

177,123

 

 

$

254,672

 

 

$

1,048,774

 

 

$

1,205,776

 

 

$

2,586,109

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

Q4 2021

 

Q3 2021

 

Q4 2020

 

FY 2021

 

FY 2020

Net income

 

$

239,826

 

 

$

329,857

 

 

$

1,371,791

 

 

$

1,568,400

 

 

$

3,382,510

 

Interest expense on non-funding debt

 

 

25,417

 

 

 

22,034

 

 

 

11,922

 

 

 

86,086

 

 

 

28,062

 

Provision for income taxes

 

 

(7,990

)

 

 

3,483

 

 

 

950

 

 

 

9,841

 

 

 

2,450

 

Depreciation and amortization

 

 

10,422

 

 

 

9,034

 

 

 

8,749

 

 

 

35,098

 

 

 

16,820

 

Stock-based compensation expense

 

 

2,014

 

 

 

2,126

 

 

 

 

 

 

6,467

 

 

 

 

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

 

 

(65,104

)

 

 

(61,477

)

 

 

 

 

 

(286,348

)

 

 

 

(Recovery) Impairment of MSRs

 

 

 

 

 

 

 

 

(12,578

)

 

 

 

 

 

19,584

 

Deferred compensation, net

 

 

(2,135

)

 

 

(5,965

)

 

 

(23,600

)

 

 

21,900

 

 

 

4,665

 

Change in fair value of Public and Private Warrants

 

 

(5,161

)

 

 

(12,110

)

 

 

 

 

 

(36,105

)

 

 

 

Change in Tax Receivable Agreement liability

 

 

8,537

 

 

 

3,400

 

 

 

 

 

 

11,937

 

 

 

 

Change in fair value of investment securities

 

 

1,061

 

 

 

 

 

 

 

 

 

1,061

 

 

 

 

Adjusted EBITDA

 

$

206,887

 

 

$

290,382

 

 

$

1,357,234

 

 

$

1,418,337

 

 

$

3,454,091

 

Non-funding debt and non-funding debt to equity

 

Q4 2021

 

Q3 2021

 

Q4 2020

Senior notes

 

$

1,980,112

 

$

1,484,370

 

$

789,323

Borrowings against investment securities

 

 

118,786

 

 

32,560

 

 

Operating lines of credit

 

 

 

 

 

 

320,300

Equipment note payable

 

 

2,046

 

 

2,343

 

 

26,528

Finance lease liability

 

 

57,967

 

 

60,871

 

 

23,132

Total non-funding debt

 

$

2,158,911

 

$

1,580,144

 

$

1,159,283

Total equity

 

$

3,171,001

 

$

2,994,028

 

$

2,374,280

Non-funding debt to equity

 

 

0.68

 

 

0.53

 

 

0.49

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 include statements regarding: (1) our foundation and strategies for growth and the drivers of that growth; (2) our “All-In” initiative and its impact on our business and industry; (3) our performance in shifting market conditions and the comparison of such performance against our competitors; (4) growth of the wholesale channel and the benefits to our business of such growth; (5) our investments in technology and the impact to our operations and financial results; and (6) 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 Holdings Corporation (the Company) is the publicly traded indirect parent of United Wholesale Mortgage, LLC (“UWM”). UWM is the largest wholesale mortgage lender in the United States, originating mortgage loans exclusively through the wholesale channel. 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.

UWM HOLDINGS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except shares and per share amounts)

 

 

December 31,
2021

 

December 31,
2020

Assets

 

 

 

Cash and cash equivalents

$

731,088

 

$

1,223,837

Mortgage loans at fair value

 

17,473,324

 

 

7,916,515

Derivative assets

 

67,356

 

 

61,072

Investment securities at fair value, pledged

 

152,263

 

 

Accounts receivable, net

 

415,691

 

 

253,600

Mortgage servicing rights

 

3,314,952

 

 

1,756,864

Premises and equipment, net

 

151,687

 

 

107,572

Operating lease right-of-use asset, net

(includes $104,595 and $92,571 with related parties)

 

104,828

 

 

93,098

Finance lease right-of-use asset

(includes $28,619 and $0 with related parties)

 

57,024

 

 

22,929

Other assets

 

60,145

 

 

57,989

Total assets

$

22,528,358

 

$

11,493,476

Liabilities and Equity

 

 

 

Warehouse lines of credit

$

15,954,938

 

$

6,941,397

Derivative liabilities

 

36,741

 

 

66,237

Operating lines of credit

 

 

 

320,300

Borrowings against investment securities

 

118,786

 

 

Accounts payable and accrued expenses

 

1,085,365

 

 

847,745

Accrued dividends payable

 

9,171

 

 

Equipment note payable

 

2,046

 

 

26,528

Senior notes

 

1,980,112

 

 

789,323

Operating lease liability

(includes $111,999 and $104,006 with related parties)

 

112,231

 

 

104,534

Finance lease liability

(includes $29,087 and $0 with related parties)

 

57,967

 

 

23,132

Total liabilities

 

19,357,357

 

 

9,119,196

Equity:

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of December 31, 2021

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 91,612,305 shares issued and outstanding as of December 31, 2021

 

9

 

 

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of December 31, 2021

 

 

 

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of December 31, 2021

 

 

 

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,502,069,787 shares issued and outstanding as of December 31, 2021

 

150

 

 

Additional paid-in capital

 

437

 

 

24,839

Retained earnings

 

141,805

 

 

2,349,441

Non-controlling interest

 

3,028,600

 

 

Total equity

 

3,171,001

 

 

2,374,280

Total liabilities and equity

$

22,528,358

 

$

11,493,476

UWM HOLDINGS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

 

 

For the three months ended

 

For the year ended

 

December 31,
2021

 

September 30,
2021

 

December 31,
2020

 

December 31,
2021

 

December 31,
2020

Revenue

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

Loan production income

$

442,407

 

 

$

589,461

 

 

$

1,667,252

 

$

2,585,807

 

 

$

4,551,415

 

Loan servicing income

 

194,976

 

 

 

174,695

 

 

 

105,648

 

 

638,738

 

 

 

288,304

 

Change in fair value of mortgage servicing rights

 

(138,988

)

 

 

(170,462

)

 

 

 

 

(587,813

)

 

 

 

Gain (loss) on sale of mortgage servicing rights

 

2,461

 

 

 

(5,443

)

 

 

3,538

 

 

1,791

 

 

 

(62,285

)

Interest income

 

104,601

 

 

 

102,063

 

 

 

41,852

 

 

331,770

 

 

 

161,160

 

Total revenue, net

 

605,457

 

 

 

690,314

 

 

 

1,818,290

 

 

2,970,293

 

 

 

4,938,594

 

Expenses

 

 

 

 

 

 

 

 

 

Salaries, commissions and benefits

 

146,697

 

 

 

164,971

 

 

 

89,437

 

 

697,680

 

 

 

552,143

 

Direct loan production costs

 

25,292

 

 

 

18,980

 

 

 

14,595

 

 

72,952

 

 

 

54,459

 

Marketing, travel, and entertainment

 

25,334

 

 

 

14,138

 

 

 

6,454

 

 

62,472

 

 

 

20,367

 

Depreciation and amortization

 

10,422

 

 

 

9,034

 

 

 

8,749

 

 

35,098

 

 

 

16,820

 

General and administrative

 

36,467

 

 

 

39,148

 

 

 

28,022

 

 

133,334

 

 

 

98,856

 

Servicing costs

 

36,200

 

 

 

29,192

 

 

 

29,549

 

 

108,967

 

 

 

70,835

 

Amortization, impairment and pay-offs of mortgage servicing rights

 

 

 

 

 

 

 

215,390

 

 

 

 

 

573,118

 

Interest expense

 

88,772

 

 

 

90,221

 

 

 

53,353

 

 

304,656

 

 

 

167,036

 

Other (income)/expense

 

4,437

 

 

 

(8,710

)

 

 

 

 

(23,107

)

 

 

 

Total expenses

 

373,621

 

 

 

356,974

 

 

 

445,549

 

 

1,392,052

 

 

 

1,553,634

 

Earnings before income taxes

 

231,836

 

 

 

333,340

 

 

 

1,372,741

 

 

1,578,241

 

 

 

3,384,960

 

Provision for income taxes

 

(7,990

)

 

 

3,483

 

 

 

950

 

 

9,841

 

 

 

2,450

 

Net income

 

239,826

 

 

 

329,857

 

 

 

1,371,791

 

 

1,568,400

 

 

 

3,382,510

 

Net income attributable to non-controlling interest

 

222,876

 

 

 

304,611

 

 

 

N/A

 

 

1,469,955

 

 

 

N/A

 

Net income attributable to UWMC

$

16,950

 

 

$

25,246

 

 

 

N/A

 

$

98,445

 

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

Earnings per share of Class A common stock:

 

 

 

 

 

 

 

 

 

Basic

$

0.17

 

 

$

0.25

 

 

 

N/A

 

$

0.98

 

 

 

N/A

 

Diluted

$

0.11

 

 

$

0.16

 

 

 

N/A

 

$

0.66

 

 

 

N/A

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

97,138,073

 

 

 

101,106,023

 

 

 

N/A

 

 

100,881,094

 

 

 

N/A

 

Diluted

 

1,599,785,759

 

 

 

1,603,710,511

 

 

 

N/A

 

 

1,603,157,640

 

 

 

N/A

 

Addendum to Exhibit 99.1

This addendum includes the Company's Consolidated Balance Sheets as of December 31, 2021, and the preceding four quarters and Statements of Operations for the quarter ended December 31, 2021, 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)

 

 

December 31,
2021

September 30,
2021

June 30,
2021

March 31,
2021

December 31,
2020

Assets

 

(Unaudited)

(Unaudited)

(Unaudited)

 

Cash and cash equivalents

$

731,088

$

950,910

$

1,048,177

$

1,592,663

$

1,223,837

Mortgage loans at fair value

 

17,473,324

 

11,736,642

 

12,404,112

 

5,503,271

 

7,916,515

Derivative assets

 

67,356

 

143,807

 

75,438

 

113,168

 

61,072

Investment securities at fair value, pledged

 

152,263

 

41,809

 

 

 

Accounts receivable, net

 

415,691

 

340,028

 

317,458

 

549,381

 

253,600

Mortgage servicing rights

 

3,314,952

 

2,900,310

 

2,662,556

 

2,300,434

 

1,756,864

Premises and equipment, net

 

151,687

 

145,774

 

130,864

 

111,964

 

107,572

Operating lease right-of-use asset, net

 

104,828

 

105,902

 

87,130

 

87,896

 

93,098

Finance lease right-of-use asset

 

57,024

 

60,113

 

61,356

 

54,456

 

22,929

Other assets

 

60,145

 

55,655

 

57,007

 

59,393

 

57,989

Total assets

$

22,528,358

$

16,480,950

$

16,844,098

$

10,372,626

$

11,493,476

Liabilities and Equity

 

 

 

 

 

Warehouse lines of credit

$

15,954,938

$

10,487,950

$

11,249,213

$

4,823,740

$

6,941,397

Derivative liabilities

 

36,741

 

61,434

 

82,551

 

55,479

 

66,237

Operating lines of credit

 

 

 

 

400,000

 

320,300

Borrowings against investment securities

 

118,786

 

32,560

 

 

 

Accounts payable and accrued expenses

 

1,085,365

 

1,229,483

 

1,018,536

 

1,185,499

 

847,745

Accrued dividends payable

 

9,171

 

10,087

 

160,444

 

160,517

 

Equipment note payable

 

2,046

 

2,343

 

2,583

 

25,424

 

26,528

Senior notes

 

1,980,112

 

1,484,370

 

1,483,587

 

789,870

 

789,323

Operating lease liability

 

112,231

 

117,824

 

98,280

 

99,188

 

104,534

Finance lease liability

 

57,967

 

60,871

 

61,918

 

54,873

 

23,132

Total liabilities

 

19,357,357

 

13,486,922

 

14,157,112

 

7,594,590

 

9,119,196

Equity:

 

 

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of September 30, 2021

 

 

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 100,367,478 shares issued and outstanding as of September 30, 2021

 

9

 

10

 

10

 

10

 

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2021

 

 

 

 

 

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2021

 

 

 

 

 

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, 2021

 

150

 

150

 

150

 

150

 

Additional paid-in capital

 

437

 

313

 

187

 

 

24,839

Retained earnings

 

141,805

 

129,815

 

109,397

 

113,078

 

2,349,441

Non-controlling interest

 

3,028,600

 

2,863,740

 

2,577,242

 

2,664,798

 

Total equity

 

3,171,001

 

2,994,028

 

2,686,986

 

2,778,036

 

2,374,280

Total liabilities and equity

$

22,528,358

$

16,480,950

$

16,844,098

$

10,372,626

$

11,493,476

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

December 31,
2021

September 30,
2021

June 30,
2021

March 31,
2021

December 31,
2020

Revenue

 

 

 

 

 

Loan production income

$

442,407

 

$

589,461

 

$

479,274

 

$

1,074,665

 

$

1,667,252

Loan servicing income

 

194,976

 

 

174,695

 

 

145,278

 

 

123,789

 

 

105,648

Change in fair value of mortgage servicing rights

 

(138,988

)

 

(170,462

)

 

(219,104

)

 

(59,259

)

 

Gain (loss) on sale of mortgage servicing rights

 

2,461

 

 

(5,443

)

 

10

 

 

4,763

 

 

3,538

Interest income

 

104,601

 

 

102,063

 

 

79,194

 

 

45,912

 

 

41,852

Total revenue, net

 

605,457

 

 

690,314

 

 

484,652

 

 

1,189,870

 

 

1,818,290

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

146,697

 

 

164,971

 

 

172,951

 

 

213,061

 

 

89,437

Direct loan production costs

 

25,292

 

 

18,980

 

 

15,518

 

 

13,162

 

 

14,595

Marketing, travel, and entertainment

 

25,334

 

 

14,138

 

 

12,157

 

 

10,843

 

 

6,454

Depreciation and amortization

 

10,422

 

 

9,034

 

 

8,353

 

 

7,289

 

 

8,749

General and administrative

 

36,467

 

 

39,148

 

 

41,289

 

 

16,430

 

 

28,022

Servicing costs

 

36,200

 

 

29,192

 

 

23,067

 

 

20,508

 

 

29,549

Amortization, impairment and pay-offs of mortgage servicing rights

 

 

 

 

 

 

 

 

 

215,390

Interest expense

 

88,772

 

 

90,221

 

 

72,673

 

 

52,990

 

 

53,353

Other (income) expense

 

4,437

 

 

(8,710

)

 

(1,530

)

 

(17,304

)

 

Total expenses

 

373,621

 

 

356,974

 

 

344,478

 

 

316,979

 

 

445,549

Earnings before income taxes

 

231,836

 

 

333,340

 

 

140,174

 

 

872,891

 

 

1,372,741

Provision for income taxes

 

(7,990

)

 

3,483

 

 

1,462

 

 

12,886

 

 

950

Net income

 

239,826

 

 

329,857

 

 

138,712

 

 

860,005

 

 

1,371,791

Net income attributable to non-controlling interest

 

222,876

 

 

304,611

 

 

130,448

 

 

812,020

 

 

N/A

Net income attributable to UWMC

$

16,950

 

 

25,246

 

 

8,264

 

 

47,985

 

 

N/A

 

 

 

 

 

 

Earnings per share of Class A common stock:

 

 

 

 

 

Basic

$

0.17

 

$

0.25

 

$

0.08

 

$

0.47

 

 

N/A

Diluted

$

0.11

 

$

0.16

 

$

0.07

 

$

0.33

 

 

N/A

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

97,138,073

 

 

101,106,023

 

 

102,760,823

 

 

103,104,205

 

 

N/A

Diluted

 

1,599,785,759

 

 

1,603,710,511

 

 

1,605,067,478

 

 

1,605,173,992

 

 

N/A

 

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

MEDIA CONTACT
NICOLE YELLAND
Media@uwm.com

Source: UWM Holdings Corporation

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