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UWM Holdings Corporation Announces Third Quarter 2022 Results

November, 04, 2022

UWM is America's #1 Overall Mortgage Lender in the Third Quarter
$325.6 million in 3Q22 Net Income
Third Quarter Loan Origination Volume of $33.5 billion, including Purchase Volume of $27.7 billion

UWM Holdings Corporation (NYSE: UWMC) (the "Company"), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), today announced its results for the third quarter ended September 30, 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,
2022

 

December 31,
2021

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,
2022

 

June 30,
2022

 

September 30,
2021

 

September 30,
2022

 

September 30,
2021

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,
2022

June 30,
2022

March 31,
2022

December 31,
2021

September 30,
2021

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,
2022

June 30,
2022

March 31,
2022

December 31,
2021

September 30,
2021

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

 

 

For inquiries regarding UWM, please contact:

INVESTOR CONTACT
BLAKE KOLO
InvestorRelations@uwm.com

M EDIA CONTACT
NICOLE ROBERTS
Media@uwm.com

Source: UWM Holdings Corporation

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