UWM Holdings Corporation Announces Third Quarter 2022 Results

Rhea-AI Summary

UWM Holdings Corporation (NYSE: UWMC) reported impressive financial results for Q3 2022, achieving a net income of $325.6 million, driven by a loan origination volume of $33.5 billion. This volume included a record $27.7 billion in purchase loans, a 24% increase from the previous quarter. UWM surpassed Rocket Mortgage to become the #1 overall mortgage lender in America. Notably, fair value gains from Mortgage Servicing Rights (MSRs) contributed $236.8 million to net income. The company also announced a $0.10 cash dividend per share, payable on January 10, 2023.

Positive

• Net income increased to $325.6 million in Q3 2022, up from $215.4 million in Q2 2022.
• Loan origination volume reached $33.5 billion, marking a significant increase from $29.9 billion in Q2 2022.
• Record purchase volume of $27.7 billion, a 24% increase from Q2 2022.
• Total equity rose to $3.4 billion, compared to $3.2 billion at the end of Q2 2022.
• Cash dividend of $0.10 declared for the eighth consecutive quarter.

Negative

• Total gain margin decreased to 52 basis points from 99 basis points in Q2 2022.
• Adjusted EBITDA showed a loss of $1.4 million, a significant decline from $95 million in Q2 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

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 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:

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

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

 

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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 were UWM's Q3 2022 financial results?

UWM reported a net income of $325.6 million and a loan origination volume of $33.5 billion.

How did UWM perform compared to the previous quarter?

UWM's net income increased from $215.4 million in Q2 2022, while loan origination volume rose from $29.9 billion.

What record did UWM achieve in Q3 2022?

UWM became the #1 overall mortgage lender in America, surpassing Rocket Mortgage.

What is the cash dividend declared by UWM?

UWM declared a cash dividend of $0.10 per share, payable on January 10, 2023.

What challenges did UWM face in Q3 2022?

UWM experienced a decrease in total gain margin to 52 basis points and reported an adjusted EBITDA loss of $1.4 million.