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UWM Holdings Corporation Announces Second Quarter 2022 Results

August, 09, 2022

$215.4 million in 2Q22 Net Income; Second Quarter Loan Origination Volume of $29.9 billion, including Purchase Volume of $22.4 billion

UWM Holdings Corporation ( NYSE: UWMC ), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), the #1 wholesale and #1 purchase mortgage originator in America, today announced its results for the second quarter ended June 30, 2022. The Company reported 2Q22 net income of $215.4 million and diluted earnings per share of $0.09. Loan origination volume for the quarter was $29.9 billion, which included $22.4 billion in purchase volume. Net income for the second quarter was inclusive of a $26.2 million increase in fair value of MSRs.

Mat Ishbia, Chairman and CEO of UWMC, said, "UWM's scale and agility, coupled with the momentum of the broker channel drove outstanding results in the second quarter. Not only were we able to deliver strong profitability, we also continued our streak of delivering significant purchase volume. We remain committed to providing elite service, technology and speed to enable our clients, independent mortgage brokers, to shine and grow in any market environment."

Second Quarter 2022 Financial Highlights

  • Originations of $29.9 billion in 2Q22, compared to $59.2 billion in 2Q21
  • Purchase originations of $22.4 billion in 2Q22, a 17% increase compared to $19.1 billion in 1Q22 and a 7% decrease compared to $24.1 billion in 2Q21
  • Net income of $215.4 million in 2Q22, a 55% increase compared to $138.7 million of net income in 2Q21
  • Total gain margin of 99 bps in 2Q22 compared to 81 bps in 2Q21
  • Total equity of $3.2 billion at June 30, 2022, as compared to $2.7 billion at June 30, 2021
  • Unpaid principal balance of MSRs increased to $308.1 billion with a WAC of 3.19% at June 30, 2022, as compared to $260.5 billion with a WAC of 2.97% at June 30, 2021

Production and Income Statement Highlights (dollars in thousands)

 

 

Q2 2022

 

Q1 2022

 

Q2 2021

Loan origination volume(1)

 

$

29,881,809

 

 

$

38,812,329

 

 

$

59,210,747

 

Total gain margin(1)(2)

 

 

0.99

%

 

 

0.99

%

 

 

0.81

%

Net income

 

$

215,445

 

 

$

453,287

 

 

$

138,712

 

Diluted EPS

 

 

0.09

 

 

 

0.22

 

 

 

0.07

 

Adjusted net income(3)

 

 

165,274

 

 

 

349,585

 

 

 

107,149

 

Adjusted EBITDA(3)

 

 

94,994

 

 

 

128,407

 

 

 

209,651

 

(1)

 

Key operational metric - see discussion below.

(2)

 

Represents total loan production income divided by loan origination volume.

(3)

 

Non-GAAP metric - see discussion below.

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

 

 

Q2 2022

 

Q1 2022

 

Q2 2021

Cash and cash equivalents

 

$

958,656

 

$

901,174

 

$

1,048,177

Mortgage loans at fair value

 

 

5,332,383

 

 

5,208,167

 

 

12,404,112

Mortgage servicing rights

 

 

3,736,359

 

 

3,514,102

 

 

2,662,556

Total assets

 

 

11,016,910

 

 

10,990,953

 

 

16,844,098

Non-funding debt (1)

 

 

2,153,795

 

 

2,156,641

 

 

1,548,088

Total equity

 

 

3,223,902

 

 

3,166,242

 

 

2,686,986

Non-funding debt to equity (1)

 

 

0.67

 

 

0.68

 

 

0.58

(1)

 

Non-GAAP metric - please see discussion below.

Mortgage Servicing Rights (dollars in thousands)

 

 

Q2 2022

 

Q1 2022

 

Q2 2021

Unpaid principal balance

 

$

308,093,311

 

 

$

303,425,697

 

 

$

260,514,602

 

Weighted average interest rate

 

 

3.19

%

 

 

3.04

%

 

 

2.97

%

Weighted average age (months)

 

 

13

 

 

 

12

 

 

 

7

 

Technology Update

  • BOLT, our latest underwriting technology, launched in Q3 of 2021, saw adoption increase from 1Q22 to 2Q22, and we continue to see this groundbreaking technology cut application to CTC (“Clear to Close”) on conventional loans that utilize BOLT by an average of approximately 4 business days, while also improving underwriting efficiency

Operational Highlights

  • We averaged an application to Clear to Close of approximately 19 business days in 2Q22, while management estimates an industry average of 44 days1 during 1Q22
  • Achieved Net Promoter Score of +87.7 in 2Q22, up from +84.8 in 2Q21
  • Our 0.69% 60+ days delinquency and our 0.49% forbearance rates, as of June 30, 2022, are significantly better than the industry averages of 1.7%2 and 0.81%,3 respectively, highlighting our strong credit quality
  • UWM launched Boost, a UWM-exclusive platform which provides independent mortgage brokers with streamlined access to purchase tailored leads, stay in touch with past clients, connect with real estate agents and opt into live call transfers. This new platform is designed to support additional long-term business growth for the wholesale channel.
  • On June 22, 2022, launched "Game On" pricing initiative to capture market share and promote and grow the broker channel
  • Hosted UWM Live, our inaugural in-person trade show at the UWM Sports Complex. Nearly 5,000 Loan Officers from across America attended for training, networking and presentations.

_____________________________
1
Source: ICE Mortgage Technology; 2 Source: CoreLogic (As of April 2022); 3 Source: Mortgage Bankers Association.

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

 

Purchase:

 

Q2 2022

 

Q1 2022

 

Q2 2021

Conventional

 

$

14,891,850

 

$

13,297,954

 

$

17,439,162

Jumbo

 

 

1,718,616

 

 

1,532,197

 

 

3,151,864

Government

 

 

5,773,192

 

 

4,272,747

 

 

3,471,430

Total Purchase

 

$

22,383,658

 

$

19,102,898

 

$

24,062,456

 

 

 

 

 

 

 

Refinance:

 

Q2 2022

 

Q1 2022

 

Q2 2021

Conventional

 

$

5,335,495

 

$

15,597,602

 

$

30,143,310

Jumbo

 

 

382,393

 

 

702,631

 

 

2,737,040

Government

 

 

1,780,263

 

 

3,409,198

 

 

2,267,940

Total Refinance

 

$

7,498,151

 

$

19,709,431

 

$

35,148,290

Total Originations

 

$

29,881,809

 

$

38,812,329

 

$

59,210,746

Mat Ishbia, Chairman and CEO of UWMC also said, “As we look forward, I am confident that our strategy to grow the broker channel is working. With our Game On initiative we are already seeing the benefits of new brokers working with us as well as an uptick in new loan officers joining the channel, and an acceleration of traffic to our BeAMortgageBroker.com site. All of this gives us the chance to demonstrate our elite service, speed and technology, helping us further grow the broker channel and our own market share.”

Third Quarter 2022 Outlook

We anticipate third quarter production to be in the $23-$28 billion range, with gain margin from 30 to 60 basis points.

Dividend

Subsequent to June 30, 2022, for the seventh consecutive quarter, the Company's Board of Directors declared a cash dividend of $0.10 per share on the outstanding shares of Class A common stock. The dividend is payable on October 10, 2022, to stockholders of record at the close of business on September 20, 2022. Additionally, the Board approved a proportional distribution to SFS Corp. of $150.2 million which is payable on October 10, 2022.

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Tuesday, August 9, 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.

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, operating 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 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

 

Q2 2022

 

Q1 2022

 

Q2 2021

Earnings before income taxes

 

$

216,214

 

 

$

457,332

 

 

$

140,174

 

Impact of estimated annual effective tax rate of 23.56%

 

 

(50,940

)

 

 

(107,747

)

 

 

(33,025

)

Adjusted net income

 

$

165,274

 

 

$

349,585

 

 

$

107,149

 

Adjusted diluted EPS

 

Q2 2022

Diluted weighted Average Class A Common shares outstanding

 

 

92,533,620

Assumed pro forma conversion of Class D shares (1)

 

 

1,502,069,787

Adjusted diluted weighted average shares outstanding

 

 

1,594,603,407

 

 

 

Adjusted Net Income (in thousands)

 

$

165,274

Adjusted Diluted EPS

 

 

0.10

 

 

 

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

Adjusted EBITDA

 

Q2 2022

 

Q1 2022

 

Q2 2021

Net income

 

$

215,445

 

 

$

453,287

 

 

$

138,712

 

Interest expense on non-funding debt

 

 

29,692

 

 

 

29,558

 

 

 

22,292

 

Provision for income taxes

 

 

769

 

 

 

4,045

 

 

 

1,462

 

Depreciation and amortization

 

 

11,181

 

 

 

10,915

 

 

 

8,353

 

Stock-based compensation expense

 

 

1,676

 

 

 

1,828

 

 

 

2,327

 

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

 

 

(176,456

)

 

 

(390,980

)

 

 

38,035

 

Deferred compensation, net

 

 

3,125

 

 

 

12,252

 

 

 

 

Change in fair value of Public and Private Warrants

 

 

(2,850

)

 

 

(4,132

)

 

 

(1,530

)

Change in Tax Receivable Agreement liability

 

 

2,500

 

 

 

700

 

 

 

 

Change in fair value of investment securities

 

 

9,912

 

 

 

10,934

 

 

 

 

Adjusted EBITDA

 

$

94,994

 

 

$

128,407

 

 

$

209,651

 

Non-funding debt and non-funding debt to equity

 

Q2 2022

 

Q1 2022

 

Q2 2021

Senior notes

 

$

1,982,103

 

$

1,981,106

 

$

1,483,587

Borrowings against investment securities

 

 

118,786

 

 

118,786

 

 

Equipment note payable

 

 

1,536

 

 

1,803

 

 

2,583

Finance lease liability

 

 

51,370

 

 

54,945

 

 

61,918

Total non-funding debt

 

$

2,153,795

 

$

2,156,641

 

$

1,548,088

Total equity

 

$

3,223,902

 

$

3,166,242

 

$

2,686,986

Non-funding debt to equity

 

 

0.67

 

 

0.68

 

 

0.58

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 be the leading mortgage lender, and the timing 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” initiative 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 third quarter and full year 2022; (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) growth of the wholesale channel and the benefits to our business of such growth; (12) our investments in technology and the impact to our operations and financial results; and (13) 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)

 

 

June 30,
2022

 

December 31,
2021

Assets

(Unaudited)

 

 

Cash and cash equivalents

$

958,656

 

$

731,088

Mortgage loans at fair value

 

5,332,383

 

 

17,473,324

Derivative assets

 

125,079

 

 

67,356

Investment securities at fair value, pledged

 

125,193

 

 

152,263

Accounts receivable, net

 

350,090

 

 

415,691

Mortgage servicing rights

 

3,736,359

 

 

3,314,952

Premises and equipment, net

 

153,971

 

 

151,687

Operating lease right-of-use asset, net

(includes $102,454 and $104,595 with related parties)

 

102,533

 

 

104,828

Finance lease right-of-use asset

(includes $27,900 and $28,619 with related parties)

 

50,179

 

 

57,024

Other assets

 

82,467

 

 

60,145

Total assets

$

11,016,910

 

$

22,528,358

Liabilities and Equity

 

 

 

Warehouse lines of credit

$

4,497,353

 

$

15,954,938

Derivative liabilities

 

93,958

 

 

36,741

Borrowings against investment securities

 

118,786

 

 

118,786

Accounts payable, accrued expenses and other

 

780,166

 

 

1,087,411

Accrued distributions and dividends payable

 

159,461

 

 

9,171

Senior notes

 

1,982,103

 

 

1,980,112

Operating lease liability

(includes $109,732 and $111,999 with related parties)

 

109,811

 

 

112,231

Finance lease liability

(includes $28,633 and $29,087 with related parties)

 

51,370

 

 

57,967

Total liabilities

 

7,793,008

 

 

19,357,357

Equity:

 

 

 

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

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 92,539,245 shares issued and outstanding as of June 30, 2022

 

9

 

 

9

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

 

 

 

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

 

150

 

 

150

Additional paid-in capital

 

669

 

 

437

Retained earnings

 

137,955

 

 

141,805

Non-controlling interest

 

3,085,119

 

 

3,028,600

Total equity

 

3,223,902

 

 

3,171,001

Total liabilities and equity

$

11,016,910

 

$

22,528,358

UWM HOLDINGS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

For the six months ended

 

June 30,
2022

 

March 31,
2022

 

June 30,
2021

 

June 30,
2022

 

June 30,
2021

Revenue

 

 

 

 

 

 

 

 

 

Loan production income

$

296,535

 

$

383,871

 

$

479,274

 

 

$

680,406

 

$

1,553,939

 

Loan servicing income

 

179,501

 

 

198,565

 

 

145,278

 

 

 

378,066

 

 

269,067

 

Change in fair value of mortgage servicing rights

 

26,169

 

 

171,963

 

 

(219,104

)

 

 

198,132

 

 

(278,363

)

Gain (loss) on sale of mortgage servicing rights

 

 

 

 

 

10

 

 

 

 

 

4,773

 

Interest income

 

62,020

 

 

67,395

 

 

79,194

 

 

 

129,415

 

 

125,106

 

Total revenue, net

 

564,225

 

 

821,794

 

 

484,652

 

 

 

1,386,019

 

 

1,674,522

 

Expenses

 

 

 

 

 

 

 

 

 

Salaries, commissions and benefits

 

138,983

 

 

160,609

 

 

172,951

 

 

 

299,592

 

 

386,012

 

Direct loan production costs

 

25,757

 

 

26,718

 

 

15,518

 

 

 

52,475

 

 

28,680

 

Marketing, travel, and entertainment

 

20,625

 

 

12,837

 

 

11,330

 

 

 

33,462

 

 

21,825

 

Depreciation and amortization

 

11,181

 

 

10,915

 

 

8,353

 

 

 

22,096

 

 

15,642

 

General and administrative

 

39,909

 

 

38,323

 

 

42,116

 

 

 

78,232

 

 

58,894

 

Servicing costs

 

44,435

 

 

47,184

 

 

23,067

 

 

 

91,619

 

 

43,575

 

Interest expense

 

57,559

 

 

60,374

 

 

72,673

 

 

 

117,933

 

 

125,663

 

Other expense/(income)

 

9,562

 

 

7,502

 

 

(1,530

)

 

 

17,064

 

 

(18,834

)

Total expenses

 

348,011

 

 

364,462

 

 

344,478

 

 

 

712,473

 

 

661,457

 

Earnings before income taxes

 

216,214

 

 

457,332

 

 

140,174

 

 

 

673,546

 

 

1,013,065

 

Provision for income taxes

 

769

 

 

4,045

 

 

1,462

 

 

 

4,814

 

 

14,348

 

Net income

 

215,445

 

 

453,287

 

 

138,712

 

 

 

668,732

 

 

998,717

 

Net income attributable to non-controlling interest

 

207,079

 

 

431,357

 

 

130,448

 

 

 

638,436

 

 

942,468

 

Net income attributable to UWMC

$

8,366

 

$

21,930

 

$

8,264

 

 

$

30,296

 

$

56,249

 

 

 

 

 

 

 

 

 

 

 

Earnings per share of Class A common stock:

 

 

 

 

 

 

 

 

 

Basic

$

0.09

 

$

0.24

 

$

0.08

 

 

$

0.33

 

$

0.55

 

Diluted

$

0.09

 

$

0.22

 

$

0.07

 

 

$

0.32

 

$

0.39

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

92,533,620

 

 

92,214,594

 

 

102,760,823

 

 

 

92,374,988

 

 

102,908,906

 

Diluted

 

92,533,620

 

 

1,594,284,381

 

 

1,605,067,478

 

 

 

1,594,444,775

 

 

1,605,215,562

 

Addendum to Exhibit 99.1

This addendum includes the Company's Consolidated Balance Sheets as of June 30, 2022, and the preceding four quarters and Statements of Operations for the quarter ended June 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)

 

 

June 30,
2022

March 31,
2022

December 31,
2021

September 30,
2021

June 30,
2021

Assets

(Unaudited)

(Unaudited)

 

(Unaudited)

(Unaudited)

Cash and cash equivalents

$

958,656

$

901,174

$

731,088

$

950,910

$

1,048,177

Mortgage loans at fair value

 

5,332,383

 

5,208,167

 

17,473,324

 

11,736,642

 

12,404,112

Derivative assets

 

125,079

 

241,932

 

67,356

 

143,807

 

75,438

Investment securities at fair value, pledged

 

125,193

 

138,417

 

152,263

 

41,809

 

Accounts receivable, net

 

350,090

 

617,608

 

415,691

 

340,028

 

317,458

Mortgage servicing rights

 

3,736,359

 

3,514,102

 

3,314,952

 

2,900,310

 

2,662,556

Premises and equipment, net

 

153,971

 

151,206

 

151,687

 

145,774

 

130,864

Operating lease right-of-use asset, net

 

102,533

 

103,670

 

104,828

 

105,902

 

87,130

Finance lease right-of-use asset

 

50,179

 

53,857

 

57,024

 

60,113

 

61,356

Other assets

 

82,467

 

60,820

 

60,145

 

55,655

 

57,007

Total assets

$

11,016,910

$

10,990,953

$

22,528,358

$

16,480,950

$

16,844,098

Liabilities and Equity

 

 

 

 

 

Warehouse lines of credit

$

4,497,353

$

4,076,829

$

15,954,938

$

10,487,950

$

11,249,213

Derivative liabilities

 

93,958

 

115,430

 

36,741

 

61,434

 

82,551

Borrowings against investment securities

 

118,786

 

118,786

 

118,786

 

32,560

 

Accounts payable, accrued expenses and other

 

780,166

 

1,207,145

 

1,087,411

 

1,231,826

 

1,021,119

Accrued distributions and dividends payable

 

159,461

 

159,460

 

9,171

 

10,087

 

160,444

Senior notes

 

1,982,103

 

1,981,106

 

1,980,112

 

1,484,370

 

1,483,587

Operating lease liability

 

109,811

 

111,010

 

112,231

 

117,824

 

98,280

Finance lease liability

 

51,370

 

54,945

 

57,967

 

60,871

 

61,918

Total liabilities

 

7,793,008

 

7,824,711

 

19,357,357

 

13,486,922

 

14,157,112

Equity:

 

 

 

 

 

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

 

 

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 92,539,245 shares issued and outstanding as of June 30, 2022

 

9

 

9

 

9

 

10

 

10

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

 

 

 

 

 

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

 

150

 

150

 

150

 

150

 

150

Additional paid-in capital

 

669

 

542

 

437

 

313

 

187

Retained earnings

 

137,955

 

138,834

 

141,805

 

129,815

 

109,397

Non-controlling interest

 

3,085,119

 

3,026,707

 

3,028,600

 

2,863,740

 

2,577,242

Total equity

 

3,223,902

 

3,166,242

 

3,171,001

 

2,994,028

 

2,686,986

Total liabilities and equity

$

11,016,910

$

10,990,953

$

22,528,358

$

16,480,950

$

16,844,098

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

June 30,
2022

March 31,
2022

December 31,
2021

September 30,
2021

June 30,
2021

Revenue

 

 

 

 

 

Loan production income

$

296,535

$

383,871

$

442,407

 

$

589,461

 

$

479,274

 

Loan servicing income

 

179,501

 

198,565

 

194,976

 

 

174,695

 

 

145,278

 

Change in fair value of mortgage servicing rights

 

26,169

 

171,963

 

(138,988

)

 

(170,462

)

 

(219,104

)

Gain (loss) on sale of mortgage servicing rights

 

 

 

2,461

 

 

(5,443

)

 

10

 

Interest income

 

62,020

 

67,395

 

104,601

 

 

102,063

 

 

79,194

 

Total revenue, net

 

564,225

 

821,794

 

605,457

 

 

690,314

 

 

484,652

 

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

138,983

 

160,609

 

146,697

 

 

164,971

 

 

172,951

 

Direct loan production costs

 

25,757

 

26,718

 

25,292

 

 

18,980

 

 

15,518

 

Marketing, travel, and entertainment

 

20,625

 

12,837

 

25,334

 

 

14,138

 

 

11,330

 

Depreciation and amortization

 

11,181

 

10,915

 

10,422

 

 

9,034

 

 

8,353

 

General and administrative

 

39,909

 

38,323

 

36,467

 

 

39,148

 

 

42,116

 

Servicing costs

 

44,435

 

47,184

 

36,200

 

 

29,192

 

 

23,067

 

Interest expense

 

57,559

 

60,374

 

88,772

 

 

90,221

 

 

72,673

 

Other expense/(income)

 

9,562

 

7,502

 

4,437

 

 

(8,710

)

 

(1,530

)

Total expenses

 

348,011

 

364,462

 

373,621

 

 

356,974

 

 

344,478

 

Earnings before income taxes

 

216,214

 

457,332

 

231,836

 

 

333,340

 

 

140,174

 

Provision for income taxes

 

769

 

4,045

 

(7,990

)

 

3,483

 

 

1,462

 

Net income

 

215,445

 

453,287

 

239,826

 

 

329,857

 

 

138,712

 

Net income attributable to non-controlling interest

 

207,079

 

431,357

 

222,876

 

 

304,611

 

 

130,448

 

Net income attributable to UWMC

 

8,366

 

21,930

 

16,950

 

 

25,246

 

$

8,264

 

 

 

 

 

 

 

Earnings per share of Class A common stock:

 

 

 

 

 

Basic

$

0.09

$

0.24

$

0.17

 

$

0.25

 

$

0.08

 

Diluted

$

0.09

$

0.22

$

0.11

 

$

0.16

 

$

0.07

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

92,533,620

 

92,214,594

 

97,138,073

 

 

101,106,023

 

 

102,760,823

 

Diluted

 

92,533,620

 

1,594,284,381

 

1,599,785,759

 

 

1,603,710,511

 

 

1,605,067,478

 

 

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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