UWM Holdings Corporation Announces Second Quarter 2023 Results

Rhea-AI Summary

UWM Holdings Corporation (NYSE: UWMC) reported a second-quarter loan origination volume of $31.8 billion, including a purchase volume of $28.0 billion, the largest quarterly purchase production in the company's history. The company also reported 2Q23 net income of $228.8 million and diluted earnings per share of $0.08. UWM remains profitable despite a decline in industry-wide origination volume. Total equity was $2.9 billion at June 30, 2023, and the company ended 2Q23 with approximately $2.8 billion of available liquidity.

Positive

• UWM reported a second-quarter loan origination volume of $31.8 billion, with a purchase volume of $28.0 billion, the largest quarterly purchase production in the company's history.
• The company reported 2Q23 net income of $228.8 million and diluted earnings per share of $0.08.
• UWM remains profitable despite a historic decline in industry-wide origination volume during 2023.
• Total equity was $2.9 billion at June 30, 2023.
• The company ended 2Q23 with approximately $2.8 billion of available liquidity.

Negative

• None.

Second Quarter Loan Origination Volume of $31.8 billion, including Purchase Volume of $28.0 billion, the largest quarterly purchase production in the Company's history

PONTIAC, Mich.--(BUSINESS WIRE)-- UWM Holdings Corporation (NYSE: UWMC) (the "Company"), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), today announced its results for the second quarter ended June 30, 2023. Total loan origination volume for the second quarter was $31.8 billion, of which $28.0 billion was purchase volume. The Company reported 2Q23 net income of $228.8 million, inclusive of a $24.6 million increase in fair value of MSRs and diluted earnings per share of $0.08.

Mat Ishbia, Chairman and CEO of UWMC, said, "UWM continues to prove that regardless of the interest rate environment, our business model, coupled with the broker channel being the best place for a consumer to get a loan and the best place for a loan officer to work, is a winning formula. Unlike others that are more reactive to cyclical market conditions, we will continue to be aggressive in our technology and product investments. We are hiring right now, whereas the industry as a whole is continuing to cut back on capacity. Despite a historic decline in industry-wide origination volume during 2023, UWM remains profitable. Other management teams seem to have forgotten that during a mortgage boom, the majority of the opportunity is in the first six months. Companies that are not prepared for those events react late, hire late, train late and miss most of the opportunity. UWM is doing the work and making the investment now to make the most of the opportunity when it inevitably comes while continuing to be profitable and continuing to reward our shareholders with a regular dividend."

• Originations of $31.8 billion in 2Q23, compared to $22.3 billion in 1Q23 and $29.9 billion in 2Q22
• Purchase originations of $28.0 billion in 2Q23, compared to $19.2 billion in 1Q23 and $22.4 billion in 2Q22
• Total gain margin of 88 bps in 2Q23 compared to 92 bps in 1Q23 and 99 bps in 2Q22
• Net income of $228.8 million in 2Q23 compared to a net loss of $138.6 million in 1Q23 and $215.4 million of net income in 2Q22
• Adjusted EBITDA of $125.4 million in 2Q23 compared to $141.0 million in 1Q23 and $95.0 million in 2Q22
• Total equity of $2.9 billion at June 30, 2023, compared to $2.9 billion at March 31, 2023, and $3.2 billion at June 30, 2022
• Unpaid principal balance of MSRs of $294.9 billion with a WAC of 3.84% at June 30, 2023, compared to $297.9 billion with a WAC of 3.66% at March 31, 2023, and $308.1 billion with a WAC of 3.19% at June 30, 2022
• Ended 2Q23 with approximately $2.8 billion of available liquidity, including $0.9 billion of cash and self-warehouse, and $1.9 billion of available borrowing capacity, which includes $1.4 billion under lines of credit secured by agency and Ginnie Mae MSRs, and $500 million under an unsecured line of credit

Production and Income Statement Highlights (dollars in thousands, except per share amounts)
		Q2 2023				Q1 2023				Q2 2022
Loan origination volume(1)		$	31,846,800			$	22,335,014			$	29,881,809
Total gain margin(1)(2)			0.88	%			0.92	%			0.99	%
Net income (loss)		$	228,794			$	(138,613	)		$	215,445
Diluted EPS			0.08				(0.13	)			0.09
Adjusted diluted EPS(3)			0.11				(0.07	)			0.10
Adjusted net income(3)			175,953				(106,806	)			165,274
Adjusted EBITDA(3)			125,380				140,994				94,994
(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)
		Q2 2023			Q1 2023			Q2 2022
Cash and cash equivalents		$	634,576		$	740,063		$	958,656
Mortgage loans at fair value			6,269,924			4,800,259			5,332,383
Mortgage servicing rights			4,224,207			3,974,870			3,736,359
Total assets			12,425,919			10,947,716			11,016,910
Non-funding debt (1)			2,623,991			2,623,962			2,153,795
Total equity			2,947,122			2,874,542			3,223,902
Non-funding debt to equity (1)			0.89			0.91			0.67
(1) Non-GAAP metric (see discussion and reconciliations below).

Mortgage Servicing Rights (dollars in thousands)
		Q2 2023				Q1 2023				Q2 2022
Unpaid principal balance		$	294,945,929			$	297,906,035			$	308,093,311
Weighted average interest rate			3.84	%			3.66	%			3.19	%
Weighted average age (months)			20				18				13

Technology and Loan Product Launches

• Conventional 1% Down: Allows borrowers with less than 80 percent of the area median income (AMI) to qualify. Those who qualify will put down 1 percent of the loan toward their down payment and UWM will then pay a 2 percent grant up to $4,000, for a total down payment of 3 percent.
• UWM Portal: A bi-directional API that allows independent mortgage brokers to seamlessly link their Loan Origination System (LOS) platform to UWM’s EASE system, further streamlining the loan process.
• PA+: A service that offers an additional level of loan processing support when needed. When an LO or processor orders PA+, they receive a dedicated UWM Loan Coordinator who will work with them and their borrower to help, scrub, order and send docs.
• Expanded Jumbo Offerings: UWM now offers a suite of fixed-rate jumbo products, giving brokers the flexibility to tailor a fixed jumbo loan to best serve each borrower’s needs.
• Bank Statement Loans: Four new Bank Statement loan offerings, giving brokers increased transparency into investor guidelines and borrower qualifications, helping brokers find the right option for their self-employed borrowers.

Operational Highlights

• Achieved Net Promoter Score of +88.0 in 2Q23
• Our 0.99% 60+ days delinquency as of June 30, 2023, was significantly better than the industry average of 1.47%¹
• UWM LIVE!: UWM hosted over 6,000 independent mortgage brokers and real estate agents at the annual UWM LIVE! event, which included speakers from across the country such as Tony Robbins and Tarek El Moussa

¹ Source: TransUnion (as of June 2023).

Product and Investor Mix - Unpaid Principal Balance of Originations (dollars in thousands)
Purchase:		Q2 2023			Q1 2023			Q2 2022
Conventional		$	17,607,736		$	12,969,966		$	14,891,850
Government			9,184,089			5,623,050			5,773,192
Jumbo and other (1)			1,243,350			652,780			1,718,616
Total Purchase		$	28,035,175		$	19,245,796		$	22,383,658
Refinance:		Q2 2023			Q1 2023			Q2 2022
Conventional		$	2,113,172		$	1,869,911		$	5,335,495
Government			1,336,350			941,775			1,780,263
Jumbo and other (1)			362,103			277,532			382,393
Total Refinance		$	3,811,625		$	3,089,218		$	7,498,151
Total Originations		$	31,846,800		$	22,335,014		$	29,881,809
(1) Comprised of non-agency jumbo products and non-qualified mortgage products, including home equity lines of credit ("HELOCs") (which in many instances are second liens) and construction loans.

Mat Ishbia, Chairman and CEO of UWMC, also said, "Our purchase volume continues to set UWM records and should be viewed as exceptionally positive by anyone who follows the mortgage industry. In an environment where our competitors are pulling back, UWM is originating more purchase volume than it has ever done. We said that we would outperform when market conditions are tough, and we have done exactly that, a testament to the strength of the wholesale channel and our value proposition to consumers.”

Third Quarter 2023 Outlook

We anticipate third quarter production to be in the $26 to $33 billion range, with gain margin from 75 to 100 basis points.

Dividend

Subsequent to June 30, 2023, for the eleventh 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 11, 2023, to stockholders of record at the close of business on September 20, 2023. Additionally, the Board approved a proportional distribution to SFS Corp., which is payable on or about October 11, 2023.

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Wednesday, August 9, at 10:30 AM ET to review the results and answer questions. Interested parties may register for a toll-free dial-in number by visiting:

• https://conferencingportals.com/event/ywTxNUZf

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 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 23.50% and 23.03% estimated annual effective tax rate for the periods during 2023 and 2022, respectively. “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		Q2 2023				Q1 2023				Q2 2022
Earnings before income taxes		$	230,004			$	(139,616	)		$	216,214
Impact of estimated annual effective tax rate of 23.50% and 23.03% for periods during 2023 and 2022, respectively			(54,051	)			32,810				(49,794	)
Adjusted net income		$	175,953			$	(106,806	)		$	166,420

Adjusted diluted EPS		Q2 2023			Q1 2023				Q2 2022
Diluted weighted average Class A common stock outstanding			93,107,133			92,920,794				92,533,620
Assumed pro forma conversion of Class D common stock (1)			1,502,069,787			1,502,069,787				1,502,069,787
Adjusted diluted weighted average shares outstanding (1)			1,595,176,920			1,594,990,581				1,594,603,407
Adjusted net income		$	175,953		$	(106,806	)		$	166,420
Adjusted diluted EPS			0.11			(0.07	)			0.10
(1) Reflects the pro forma exchange and conversion of antidilutive Class D common stock to Class A common stock.

Adjusted EBITDA		Q2 2023			Q1 2023			Q2 2022
Net income		228,794			(138,613	)		215,445
Interest expense on non-funding debt		42,756			42,703			29,692
Provision for income taxes		1,210			(1,003	)		769
Depreciation and amortization		11,441			11,670			11,181
Stock-based compensation expense		3,567			2,482			1,676
Change in fair value of MSRs due to valuation inputs or assumptions		(164,526	)		222,915			(176,456	)
Deferred compensation, net		(564	)		1,081			3,125
Change in fair value of Public and Private Warrants		1,175			2,098			(2,850	)
Change in Tax Receivable Agreement liability		915			250			2,500
Change in fair value of investment securities		612			(2,589	)		9,912
Adjusted EBITDA		125,380			140,994			94,994

Non-funding debt and non-funding debt to equity		Q2 2023			Q1 2023			Q2 2022
Senior notes		$	1,986,301		$	1,985,319		$	1,982,103
Borrowings against investment securities			100,901			101,345			118,786
Secured lines of credit			500,000			500,000			—
Equipment note payable			433			486			1,536
Finance lease liability			36,356			36,812			51,370
Total non-funding debt		$	2,623,991		$	2,623,962		$	2,153,795
Total equity		$	2,947,122		$	2,874,542		$	3,223,902
Non-funding debt to equity			0.89			0.91			0.67

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 and strategies 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 expectations for future market environments, including interest rates and levels of refinance activity; (7) our expectations related to production and margin in the third quarter of 2023; (8) the benefits of our business model and strategies, including our “Game On” and “All In” initiatives, and their impact on our results and the industry in 2023 and beyond; (9) our performance in shifting market conditions and the comparison of such performance against our competitors; (10) our ability to produce results in future years at or above prior levels or expectations, and our strategies for producing such results; (11) our position and ability to capitalize on market opportunities and the impacts to our results; (12) our investments in technology and the impact to our operations, ability to scale and financial results and (13) our purchase production and product portfolio. 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 and MSR 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 broker 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 (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 eight 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)
	June 30, 2023			December 31, 2022
Assets	(Unaudited)
Cash and cash equivalents	$	634,576		$	704,898
Mortgage loans at fair value		6,269,924			7,134,960
Derivative assets		61,407			82,869
Investment securities at fair value, pledged		111,625			113,290
Accounts receivable, net		347,865			383,147
Mortgage servicing rights		4,224,207			4,453,261
Premises and equipment, net		149,515			152,477
Operating lease right-of-use asset, net (includes $99,990 and $102,322 with related parties)		101,686			104,181
Finance lease right-of-use asset (includes $25,835 and $26,867 with related parties)		34,947			42,218
Loans eligible for repurchase from Ginnie Mae		409,078			345,490
Other assets		81,089			83,834
Total assets	$	12,425,919		$	13,600,625
Liabilities and Equity
Warehouse lines of credit	$	5,732,791		$	6,443,992
Derivative liabilities		21,734			49,748
Secured line of credit		500,000			750,000
Borrowings against investment securities		100,901			101,345
Accounts payable, accrued expenses and other		423,407			439,719
Accrued distributions and dividends payable		159,518			159,465
Senior notes		1,986,301			1,984,336
Operating lease liability (includes $107,015 and $109,473 with related parties)		108,711			111,332
Finance lease liability (includes $27,064 and $27,857 with related parties)		36,356			43,505
Loans eligible for repurchase from Ginnie Mae		409,078			345,490
Total liabilities		9,478,797			10,428,932
Equity:
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 2022		—			—
Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,114,878 and 92,575,974 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		9			9
Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 2022		—			—
Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 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, 2023 and December 31, 2022, respectively		150			150
Additional paid-in capital		1,267			903
Retained earnings		120,379			142,500
Non-controlling interest		2,825,317			3,028,131
Total equity		2,947,122			3,171,693
Total liabilities and equity	$	12,425,919		$	13,600,625

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, 2023			March 31, 2023				June 30, 2022			June 30, 2023				June 30, 2022
Revenue
Loan production income	$	280,757		$	205,424			$	296,535		$	486,181			$	680,406
Loan servicing income		193,220			218,557				179,501			411,777				378,066
Change in fair value of mortgage servicing rights		24,648			(337,287	)			26,169			(312,639	)			198,132
Interest income		88,895			74,580				62,020			163,475				129,415
Total revenue, net		587,520			161,274				564,225			748,794				1,386,019
Expenses
Salaries, commissions and benefits		131,380			121,003				138,983			252,383				299,592
Direct loan production costs		23,618			16,483				25,757			40,101				52,475
Marketing, travel, and entertainment		21,588			17,210				20,625			38,798				33,462
Depreciation and amortization		11,441			11,670				11,181			23,111				22,096
General and administrative		52,691			34,619				39,909			87,310				78,232
Servicing costs		31,658			36,862				44,435			68,520				91,619
Interest expense		82,437			63,284				57,559			145,721				117,933
Other expense/(income)		2,703			(241	)			9,562			2,462				17,064
Total expenses		357,516			300,890				348,011			658,406				712,473
Earnings (loss) before income taxes		230,004			(139,616	)			216,214			90,388				673,546
Provision (benefit) for income taxes		1,210			(1,003	)			769			207				4,814
Net income (loss)		228,794			(138,613	)			215,445			90,181				668,732
Net income (loss) attributable to non-controlling interest		221,236			(126,672	)			207,079			94,564				638,436
Net income (loss) attributable to UWMC	$	7,558		$	(11,941	)		$	8,366		$	(4,383	)		$	30,296
Earnings (loss) per share of Class A common stock:
Basic	$	0.08		$	(0.13	)		$	0.09		$	(0.05	)		$	0.33
Diluted	$	0.08		$	(0.13	)		$	0.09		$	(0.05	)		$	0.32
Weighted average shares outstanding:
Basic		93,107,133			92,920,794				92,533,620			93,014,478				92,374,988
Diluted		93,107,133			92,920,794				92,533,620			93,014,478				1,594,444,775

Addendum to Exhibit 99.1

This addendum includes the Company's Consolidated Balance Sheets as of June 30, 2023, and the preceding four quarters and Statements of Operations for the quarter ended June 30, 2023, 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, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Assets	(Unaudited)		(Unaudited)				(Unaudited)		(Unaudited)
Cash and cash equivalents	$	634,576	$	740,063	$	704,898	$	799,534	$	958,656
Mortgage loans at fair value		6,269,924		4,800,259		7,134,960		5,031,068		5,022,806
Derivative assets		61,407		61,136		82,869		385,348		125,079
Investment securities at fair value, pledged		111,625		114,275		113,290		115,079		125,193
Accounts receivable, net		347,865		433,747		383,147		556,153		350,090
Mortgage servicing rights		4,224,207		3,974,870		4,453,261		4,305,686		3,736,359
Premises and equipment, net		149,515		152,428		152,477		152,172		153,971
Operating lease right-of-use asset, net		101,686		102,923		104,181		101,377		102,533
Finance lease right-of-use asset		34,947		38,320		42,218		45,667		50,179
Loans eligible for repurchase from Ginnie Mae		409,078		440,775		345,490		310,149		309,577
Other assets		81,089		88,920		83,834		87,850		82,467
Total assets	$	12,425,919	$	10,947,716	$	13,600,625	$	11,890,083	$	11,016,910
Liabilities and Equity
Warehouse lines of credit	$	5,732,791	$	4,259,834	$	6,443,992	$	4,712,719	$	4,497,353
Derivative liabilities		21,734		62,742		49,748		215,330		93,958
Secured line of credit		500,000		500,000		750,000		—		—
Borrowings against investment securities		100,901		101,345		101,345		114,875		118,786
Accounts payable, accrued expenses and other		423,407		416,818		439,719		846,905		470,017
Accrued distributions and dividends payable		159,518		159,517		159,465		159,465		159,461
Senior notes		1,986,301		1,985,319		1,984,336		1,983,099		1,982,103
Operating lease liability		108,711		110,012		111,332		108,591		109,811
Finance lease liability		36,356		36,812		43,505		46,917		51,370
Loans eligible for repurchase from Ginnie Mae		409,078		440,775		345,490		310,149		310,149
Total liabilities		9,478,797		8,073,174		10,428,932		8,498,050		7,793,008
Equity:
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 2022		—		—		—		—		—
Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,114,878 and 92,575,974 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		9		9		9		9		9
Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 2022		—		—		—		—		—
Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of June 30, 2023 or 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, 2023 and December 31, 2022		150		150		150		150		150
Additional paid-in capital		1,267		1,036		903		784		669
Retained earnings		120,379		122,136		142,500		141,194		137,955
Non-controlling interest		2,825,317		2,751,211		3,028,131		3,249,896		3,085,119
Total equity		2,947,122		2,874,542		3,171,693		3,392,033		3,223,902
Total liabilities and equity	$	12,425,919	$	10,947,716	$	13,600,625	$	11,890,083	$	11,016,910

CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except shares and per share amounts) (Unaudited)
	For the three months ended
	June 30, 2023		March 31, 2023			December 31, 2022			September 30, 2022		June 30, 2022
Revenue
Loan production income	$	280,757	$	205,424		$	129,180		$	172,402	$	296,535
Loan servicing income		193,220		218,557			217,225			196,781		179,501
Change in fair value of mortgage servicing rights		24,648		(337,287	)		(150,808	)		236,780		26,169
Interest income		88,895		74,580			106,837			78,210		62,020
Total revenue, net		587,520		161,274			302,434			684,173		564,225
Expenses
Salaries, commissions and benefits		131,380		121,003			118,266			135,028		138,983
Direct loan production costs		23,618		16,483			17,396			20,498		25,757
Marketing, travel, and entertainment		21,588		17,210			22,976			17,730		20,625
Depreciation and amortization		11,441		11,670			11,713			11,426		11,181
General and administrative		52,691		34,619			49,668			51,649		39,909
Servicing costs		31,658		36,862			36,809			37,596		44,435
Interest expense		82,437		63,284			114,918			73,136		57,559
Other expense/(income)		2,703		(241	)		(54	)		6,729		9,562
Total expenses		357,516		300,890			371,692			353,792		348,011
Earnings (loss) before income taxes		230,004		(139,616	)		(69,258	)		330,381		216,214
Provision (benefit) for income taxes		1,210		(1,003	)		(6,774	)		4,771		769
Net income (loss)		228,794		(138,613	)		(62,484	)		325,610		215,445
Net income (loss) attributable to non-controlling interest		221,236		(126,672	)		(62,207	)		313,914		207,079
Net income (loss) attributable to UWMC	$	7,558	$	(11,941	)	$	(277	)	$	11,696	$	8,366
Earnings (loss) per share of Class A common stock:
Basic	$	0.08	$	(0.13	)	$	—		$	0.13	$	0.09
Diluted	$	0.08	$	(0.13	)	$	(0.03	)	$	0.13	$	0.09
Weighted average shares outstanding:
Basic		93,107,133		92,920,794			92,575,549			92,571,886		92,533,620
Diluted		93,107,133		92,920,794			1,594,645,336			92,571,886		92,533,620

 

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For inquiries regarding UWM, please contact:

Investor Contact

Blake Kolo

InvestorRelations@uwm.com

Media Contact

Nicole Roberts

Media@uwm.com

Source: UWM Holdings Corporation

FAQ

What was UWM Holdings Corporation's loan origination volume for the second quarter?

UWM Holdings Corporation reported a loan origination volume of $31.8 billion for the second quarter.

What was the company's net income for 2Q23?

UWM Holdings Corporation reported a net income of $228.8 million for 2Q23.

Did UWM remain profitable despite the decline in industry-wide origination volume?

Yes, UWM remained profitable despite a historic decline in industry-wide origination volume during 2023.

What was the total equity of UWM at June 30, 2023?

The total equity of UWM was $2.9 billion at June 30, 2023.

How much available liquidity did UWM have at the end of 2Q23?

UWM ended 2Q23 with approximately $2.8 billion of available liquidity.