UWM Holdings Corporation Announces First Quarter 2021 Results

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UWM Holdings Corporation (NYSE: UWMC) reported an impressive 1Q21, with net income soaring to $860 million, a 42x increase from $20.3 million in 1Q20. Loan originations reached $49.1 billion, reflecting a 16% year-over-year rise. The company declared a quarterly dividend of $0.10 per share, payable on July 6, 2021, and initiated a $300 million share repurchase program set to commence on May 11, 2021. UWM's total equity jumped to $2.78 billion from $681.5 million a year prior, bolstering its position as the largest wholesale mortgage lender in America.

Positive

Net income increased to $860 million in 1Q21, up 42x from 1Q20.
Loan originations rose 16% year-over-year to $49.1 billion.
Declared a dividend of $0.10 per share, enhancing shareholder returns.
Initiated a $300 million share repurchase program, supporting stock price.
Total equity grew to $2.78 billion, significantly up from $681.5 million in 1Q20.

Negative

Pressure on margins due to a shift to a more purchase-focused market.

05/10/2021 - 04:15 PM

UWM Holdings Corporation (NYSE: UWMC), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), the #1 wholesale mortgage lender in America, today announced the results for the first quarter ended March 31, 2021. UWMC reported 1Q21 net income of $860 million, a 42x increase over 1Q20 net income of $20.3 million. Additionally, the Board of Directors of UWMC declared a quarterly dividend of $0.10 per share on the outstanding shares of Class A Common Stock. The dividend is payable on July 6, 2021 to stockholders of record at the close of business on June 10, 2021. The Board of Directors also authorized a share repurchase program of up to $300 million over the next 24 months, beginning on May 11, 2021.

Mat Ishbia, Chairman and CEO of UWMC said: "The first quarter of 2021 was not only the best first quarter in our 35-year history, it also marked our first quarter as a public company and solidified our foundation for growth. We believe we now have the capital, liquidity, technology, campus and staffing necessary to further scale our business and grow to become the largest mortgage originator in the country. We welcome the shift to more of a purchase market and the pressure on margins as we believe our business model is built to outperform competitors under those conditions. Moving forward, our priorities remain the same: our people, the industry-leading service we offer to our brokers, and creating long-term value for our shareholders."

First Quarter 2021 Financial Highlights

Originations of $49.1 billion in loan volume, a 16% increase from the 1Q20 $42.4 billion loan volume
Total gain margin of 219 bps in 1Q21 compared to 95 bps in 1Q20
First quarter net income of $860.0 million, as compared to $20.3 million for 1Q20
Increased total equity to $2.78 billion at March 31, 2021 as compared to $681.5 million at March 31, 2020
Unpaid principal balance of mortgage servicing rights increased to $221.0 billion in 1Q21 from $85.6 billion in 1Q20

Production and Income Statement Highlights (dollars in thousands)

Q1 2021

Q4 2020

Q1 2020

Closed loan volume⁽¹⁾

49,094,240

54,678,923

42,441,727

Total gain margin⁽¹⁾⁽²⁾

2.19

3.05

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