UWM Holdings Corporation Announces Third Quarter 2024 Results
UWM Holdings (NYSE: UWMC) reported third quarter 2024 results with net income of $31.9 million, down from $76.3 million in Q2 2024. Total loan origination volume reached $39.5 billion, including $26.2 billion in purchase volume. The company achieved a total gain margin of 118 bps, improving from 106 bps in Q2 2024. Notably, the results included a $446.1 million decline in fair value of MSRs and a $226.9 million gain on other interest rate derivatives. For Q4 2024, UWM anticipates production between $34-41 billion with gain margin of 85-110 basis points.
UWM Holdings (NYSE: UWMC) ha riportato i risultati del terzo trimestre del 2024 con un reddito netto di 31,9 milioni di dollari, in calo rispetto ai 76,3 milioni nel secondo trimestre del 2024. Il volume totale delle origini di prestiti ha raggiunto 39,5 miliardi di dollari, inclusi 26,2 miliardi di dollari di volume di acquisto. L'azienda ha ottenuto un margine di guadagno totale di 118 punti base, in miglioramento rispetto ai 106 punti base nel secondo trimestre del 2024. È importante notare che i risultati hanno incluso una diminuzione del valore equo delle MSR di 446,1 milioni di dollari e un guadagno di 226,9 milioni di dollari su altri derivati legati ai tassi d'interesse. Per il quarto trimestre del 2024, UWM prevede una produzione compresa tra i 34-41 miliardi di dollari con un margine di guadagno di 85-110 punti base.
UWM Holdings (NYSE: UWMC) informó los resultados del tercer trimestre de 2024 con un ingreso neto de 31,9 millones de dólares, disminuyendo desde los 76,3 millones en el segundo trimestre de 2024. El volumen total de originación de préstamos alcanzó 39,5 mil millones de dólares, incluyendo 26,2 mil millones de dólares en volumen de compra. La compañía logró un margen de ganancia total de 118 puntos base, mejorando desde 106 puntos base en el segundo trimestre de 2024. Cabe destacar que los resultados incluyeron una disminución de 446,1 millones de dólares en el valor razonable de las MSR y una ganancia de 226,9 millones de dólares en otros derivados de tasas de interés. Para el cuarto trimestre de 2024, UWM anticipa una producción entre 34-41 mil millones de dólares con un margen de ganancia de 85-110 puntos base.
UWM Holdings (NYSE: UWMC)는 2024년 3분기 결과를 발표했으며, 순이익은 3,190만 달러로, 2024년 2분기 7,630만 달러에서 감소했습니다. 총 대출 원탁량은 395억 달러에 도달했으며, 그 중 262억 달러는 구매량입니다. 회사는 2024년 2분기의 106bp에서 개선된 118bp의 총 이익 마진을 달성했습니다. 특히, 결과에는 MSR의 공정 가치가 4억 4,610만 달러 감소한 것과 다른 금리 파생상품에서 2억 2,690만 달러의 이익이 포함되었습니다. 2024년 4분기 동안 UWM은 340억-410억 달러 사이의 생산량과 85-110bp의 이익 마진을 예상하고 있습니다.
UWM Holdings (NYSE: UWMC) a annoncé les résultats du troisième trimestre 2024 avec un revenu net de 31,9 millions de dollars, en baisse par rapport à 76,3 millions de dollars au deuxième trimestre 2024. Le volume total des origines de prêts a atteint 39,5 milliards de dollars, y compris 26,2 milliards de dollars en volume d'achat. L'entreprise a réalisé une marge de gain totale de 118 points de base, en amélioration par rapport à 106 points de base au deuxième trimestre 2024. Il convient de noter que les résultats comprenaient une diminution de la valeur équitable des MSR de 446,1 millions de dollars et un gain de 226,9 millions de dollars sur d'autres dérivés de taux d'intérêt. Pour le quatrième trimestre 2024, UWM prévoit une production comprise entre 34-41 milliards de dollars avec une marge de gain de 85-110 points de base.
UWM Holdings (NYSE: UWMC) hat die Ergebnisse des dritten Vierteljahres 2024 bekannt gegeben, mit einem Nettogewinn von 31,9 Millionen Dollar, ein Rückgang von 76,3 Millionen Dollar im zweiten Quartal 2024. Das gesamte Darlehensvolumen erreichte 39,5 Milliarden Dollar, davon 26,2 Milliarden Dollar aus Kaufvolumen. Das Unternehmen erzielte eine Gesamtertragsmarge von 118 Basispunkten, was eine Verbesserung gegenüber 106 Basispunkten im zweiten Quartal 2024 darstellt. Bemerkenswert ist, dass die Ergebnisse einen Rückgang des beizulegenden Zeitwerts der MSRs um 446,1 Millionen Dollar sowie einen Gewinn von 226,9 Millionen Dollar aus anderen Zinssatzderivaten beinhalteten. Für das vierte Quartal 2024 erwartet UWM eine Produktion zwischen 34-41 Milliarden Dollar mit einer Ertragsmarge von 85-110 Basispunkten.
- Loan origination volume increased to $39.5B in Q3 2024, up from $33.6B in Q2 2024
- Total gain margin improved to 118 bps from 106 bps in previous quarter
- Available liquidity of $2.5B, including $636.3M in cash
- Net income decreased to $31.9M from $76.3M in Q2 2024
- $446.1M decline in fair value of MSRs
- Total equity decreased to $2.2B from $2.3B in previous quarter
Insights
UWMC delivered mixed Q3 results with some bright spots amid challenging market conditions. Net income dropped significantly to
The gain margin improved to
The mortgage market dynamics revealed in UWM's results show important shifts. Despite historically high rates, the company's ability to grow volume significantly while improving margins demonstrates strong competitive positioning in the wholesale channel. The surge in refinance activity during brief rate dips indicates substantial pent-up demand that could materialize with sustained rate declines.
The
Third Quarter Net Income of
Mat Ishbia, Chairman and CEO of UWMC, said, "When looking at Q3, I am incredibly proud of our performance and two things jump out at me – first, we exceeded both our volume and margin guidance despite mortgage rates remaining higher than anticipated for most of the quarter. But a dip in rates for just a few weeks pushed us higher than we expected and provided a glimpse into the future. Second, UWM is on pace to have record purchase volume in 2024 despite a generationally slow existing home sales market. The broker channel continues to dominate the purchase market, and our results in Q3 also demonstrate how well UWM and the channel are positioned to capitalize on the inevitable increase in refinance volume when it comes. Right now, UWM is so much better positioned than we were prior to the last refinance boom. We have more capacity, more advanced technology, and even better service than we could offer our broker partners at that time. Simply put, our operational fitness is at an all-time high and you'll only see us accelerate from here."
Third Quarter 2024 Financial Highlights
-
Originations of
$39.5 billion $33.6 billion $29.7 billion -
Purchase originations of
$26.2 billion $27.2 billion $25.9 billion - Total gain margin of 118 bps in 3Q24 compared to 106 bps in 2Q24 and 97 bps in 3Q23
-
Net income of
$31.9 million $76.3 million $301.0 million -
Adjusted EBITDA of
$107.2 million $133.1 million $112.1 million -
Total equity of
$2.2 billion $2.3 billion $3.1 billion -
Unpaid principal balance of MSRs of
$212.2 billion 4.56% at September 30, 2024, compared to -
$189.5 billion 4.31% at June 30, 2024, and$281.4 billion 4.20% at September 30, 2023 -
Ended 3Q24 with approximately
$2.5 billion $636.3 million
Production and Income Statement Highlights (dollars in thousands, except per share amounts) |
|||||||||
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
||||||
Loan origination volume(1) |
$ |
39,509,521 |
|
$ |
33,628,993 |
|
$ |
29,721,633 |
|
Total gain margin(1)(2) |
|
1.18 |
% |
|
1.06 |
% |
|
0.97 |
% |
Net income |
$ |
31,945 |
|
$ |
76,286 |
|
$ |
300,993 |
|
Diluted (loss) earnings per share |
|
(0.06 |
) |
|
0.03 |
|
|
0.15 |
|
Adjusted diluted earnings per share(3) |
|
0.01 |
|
|
0.04 |
|
|
N/A |
|
Adjusted net income(3) |
|
23,334 |
|
|
59,809 |
|
|
234,713 |
|
Adjusted EBITDA(3) |
|
107,181 |
|
|
133,146 |
|
|
112,062 |
|
| (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 2024 |
Q2 2024 |
Q3 2023 |
||||||
Cash and cash equivalents |
$ |
636,327 |
|
$ |
680,153 |
|
$ |
729,616 |
|
Mortgage loans at fair value |
|
10,141,683 |
|
|
8,236,183 |
|
|
5,560,039 |
|
Mortgage servicing rights |
|
2,800,054 |
|
|
2,650,090 |
|
|
4,352,219 |
|
Total assets |
|
15,119,798 |
|
|
12,921,641 |
|
|
12,204,137 |
|
Non-funding debt (1) |
|
2,410,714 |
|
|
2,108,426 |
|
|
2,617,903 |
|
Total equity |
|
2,180,527 |
|
|
2,329,012 |
|
|
3,092,111 |
|
Non-funding debt to equity (1) |
|
1.11 |
|
|
0.91 |
|
|
0.85 |
|
(1) Non-GAAP metric (see discussion and reconciliations below). |
|||||||||
Mortgage Servicing Rights (dollars in thousands) |
Q3 2024 |
Q2 2024 |
Q3 2023 |
||||||
Unpaid principal balance |
$ |
212,218,975 |
|
$ |
189,482,798 |
|
$ |
281,373,662 |
|
Weighted average interest rate |
|
4.56 |
% |
|
4.31 |
% |
|
4.20 |
% |
Weighted average age (months) |
|
25 |
|
|
26 |
|
|
20 |
|
|
|
|
|
||||||
Third Quarter Business and Product Highlights
KEEP
- KEEP is an industry-leading technology that utilizes AI to send pre-validated refinance opportunities as soon as a borrower is able to obtain meaningful savings on their monthly payment, streamlining the speed and efficiency of the mortgage process for both borrowers and UWM’s broker partners
BrokerX
- BrokerX is a structured development program that transforms individuals with no experience to licensed mortgage loan originators (MLOs) in just 5 weeks. This provides brokers with a streamlined solution for training and licensing new talent, without needing their own training team, and is just another in a long line of programs that UWM has created to support and grow the broker channel
Product and Investor Mix - Unpaid Principal Balance of Originations (dollars in thousands) |
||||||
|
||||||
Purchase: |
Q3 2024 |
Q2 2024 |
Q3 2023 |
|||
Conventional |
$ |
15,874,674 |
$ |
15,650,022 |
$ |
16,237,031 |
Government |
|
7,786,158 |
|
8,298,147 |
|
8,031,062 |
Jumbo and other (1) |
|
2,499,626 |
|
3,224,482 |
|
1,624,824 |
Total Purchase |
$ |
26,160,458 |
$ |
27,172,651 |
$ |
25,892,917 |
Refinance: |
Q3 2024 |
Q2 2024 |
Q3 2023 |
|||
Conventional |
$ |
3,552,067 |
$ |
2,506,853 |
$ |
1,736,055 |
Government |
|
8,271,580 |
|
2,573,514 |
|
1,528,848 |
Jumbo and other (1) |
|
1,525,416 |
|
1,375,975 |
|
563,813 |
Total Refinance |
$ |
13,349,063 |
$ |
6,456,342 |
$ |
3,828,716 |
Total Originations |
$ |
39,509,521 |
$ |
33,628,993 |
$ |
29,721,633 |
|
||||||
(1) Comprised of non-agency jumbo products, construction loans, and non-qualified mortgage products, including home equity lines of credit ("HELOCs") (which in many instances are second liens). |
||||||
Fourth Quarter 2024 Outlook
We anticipate fourth quarter production to be in the
Dividend
Subsequent to September 30, 2024, for the sixteenth consecutive quarter, the Company's Board of Directors declared a cash dividend of
Earnings Conference Call Details
As previously announced, the Company will hold a conference call for financial analysts and investors on Thursday, November 7, 2024, 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://registrations.events/direct/Q4I3723696
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
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, gains or losses on other interest rate derivatives, the impact of non-cash deferred compensation expense, the change in fair value of the Public and Private Warrants, the non-cash income/expense impact of the change in the Tax Receivable Agreement liability, and the change in fair value of retained investment securities. We exclude the non-cash income/expense impact of the change in the 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, 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 2024 |
Q2 2024 |
Q3 2023 |
||||||
Earnings before income taxes |
$ |
32,289 |
|
$ |
77,072 |
|
$ |
301,727 |
|
Adjusted income tax provision |
|
(8,955 |
) |
|
(17,263 |
) |
|
(67,014 |
) |
Adjusted net income |
$ |
23,334 |
|
$ |
59,809 |
|
$ |
234,713 |
|
Adjusted diluted EPS |
Q3 2024 |
Q2 2024 |
Diluted weighted average Class A common stock outstanding |
99,801,301 |
95,387,609 |
Assumed pro forma conversion of Class D common stock (1) |
1,498,013,741 |
1,502,069,787 |
Adjusted diluted weighted average shares outstanding (1) |
1,597,815,042 |
1,597,457,396 |
Adjusted net income |
$ |
23,334 |
$ |
59,809 |
Adjusted diluted EPS |
|
0.01 |
|
0.04 |
(1) Reflects the pro forma exchange and conversion of antidilutive Class D common stock to Class A common stock. |
|
|||
Adjusted EBITDA |
Q3 2024 |
Q2 2024 |
Q3 2023 |
||||||
Net income |
$ |
31,945 |
|
$ |
76,286 |
|
$ |
300,993 |
|
Interest expense on non-funding debt |
|
31,544 |
|
|
31,951 |
|
|
42,825 |
|
Provision for income taxes |
|
344 |
|
|
786 |
|
|
734 |
|
Depreciation and amortization |
|
11,636 |
|
|
11,404 |
|
|
11,563 |
|
Stock-based compensation expense |
|
5,768 |
|
|
3,937 |
|
|
3,822 |
|
Change in fair value of MSRs due to valuation inputs or assumptions |
|
263,893 |
|
|
38,222 |
|
|
(236,044 |
) |
Gain on other interest rate derivatives |
|
(226,936 |
) |
|
(27,166 |
) |
|
— |
|
Deferred compensation, net |
|
(11,434 |
) |
|
(1,169 |
) |
|
(11,755 |
) |
Change in fair value of Public and Private Warrants |
|
5,829 |
|
|
(1,739 |
) |
|
(2,021 |
) |
Change in Tax Receivable Agreement liability |
|
— |
|
|
— |
|
|
(3,000 |
) |
Change in fair value of investment securities |
|
(5,409 |
) |
|
634 |
|
|
4,945 |
|
| Adjusted EBITDA | $ |
107,181 |
|
$ |
133,146 |
|
$ |
112,062 |
|
| Non-funding debt and non-funding debt to equity | Q3 2024 |
Q2 2024 |
Q3 2023 |
|||
Senior notes |
$ |
1,991,216 |
$ |
1,990,233 |
$ |
1,987,284 |
Secured lines of credit |
|
300,000 |
|
— |
|
500,000 |
Borrowings against investment securities |
|
93,662 |
|
91,406 |
|
97,328 |
Finance lease liability |
|
25,836 |
|
26,787 |
|
33,291 |
Total non-funding debt |
$ |
2,410,714 |
$ |
2,108,426 |
$ |
2,617,903 |
Total equity |
$ |
2,180,527 |
$ |
2,329,012 |
$ |
3,092,111 |
Non-funding debt to equity |
|
1.11 |
|
0.91 |
|
0.85 |
Cautionary Note Regarding Forward-Looking Statements
This press release and our earnings call include forward-looking statements. These forward-looking statements are generally identified using 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) our investment in our people, products and technology, and the benefits of our results; (3) our beliefs regarding opportunities in 2024 for our business and the broker channel; (4) our beliefs regarding operational profitability; (5) growth of the wholesale and broker channels, the impact of our strategies on such growth and the benefits to our business of such growth; (6) our growth and strategies to remain the leading mortgage lender, and the timing and drivers of that growth; (7) the benefits and liquidity of our MSR portfolio; (8) our beliefs related to the amount and timing of our dividend; (9) our expectations for future market environments, including interest rates, levels of refinance activity and the timing of such market changes; (10) our expectations related to production and margin in the fourth quarter of 2024; (11) the benefits of our business model, strategies and initiatives, and their impact on our results and the industry; (12) our performance in shifting market conditions and the comparison of such performance against our competitors; (13) our ability to produce results in future years at or above prior levels or expectations, and our strategies for producing such results; (14) our position and ability to capitalize on market opportunities and the impacts to our results; (15) our investments in technology and the impact to our operations, ability to scale and financial results and (16) 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 to materially differ from those stated or implied in the forward-looking statements, including: (i) UWM’s dependence on macroeconomic and
About UWM Holdings Corporation and United Wholesale Mortgage
Headquartered in
UWM HOLDINGS CORPORATION |
||||
CONSOLIDATED BALANCE SHEETS |
||||
(in thousands, except shares and per share amounts) |
||||
|
September 30, 2024 |
December 31, 2023 |
||
Assets |
(Unaudited) |
|||
Cash and cash equivalents |
$ |
636,327 |
$ |
497,468 |
Mortgage loans at fair value |
|
10,141,683 |
|
5,449,884 |
Derivative assets |
|
66,977 |
|
33,019 |
Investment securities at fair value, pledged |
|
108,964 |
|
110,352 |
Accounts receivable, net |
|
561,901 |
|
512,070 |
Mortgage servicing rights |
|
2,800,054 |
|
4,026,136 |
Premises and equipment, net |
|
147,981 |
|
146,417 |
Operating lease right-of-use asset
(includes |
|
95,123 |
|
99,125 |
Finance lease right-of-use asset, net
(includes |
|
24,020 |
|
29,111 |
Loans eligible for repurchase from Ginnie Mae |
|
391,696 |
|
856,856 |
Other assets |
|
145,072 |
|
111,416 |
Total assets |
$ |
15,119,798 |
$ |
11,871,854 |
Liabilities and Equity |
||||
Warehouse lines of credit |
$ |
9,207,746 |
$ |
4,902,090 |
Derivative liabilities |
|
93,599 |
|
40,781 |
Secured line of credit |
|
300,000 |
|
750,000 |
Borrowings against investment securities |
|
93,662 |
|
93,814 |
Accounts payable, accrued expenses and other |
|
573,865 |
|
469,101 |
Accrued distributions and dividends payable |
|
159,818 |
|
159,572 |
Senior notes |
|
1,991,216 |
|
1,988,267 |
Operating lease liability
(includes |
|
101,833 |
|
106,024 |
Finance lease liability
(includes |
|
25,836 |
|
30,678 |
Loans eligible for repurchase from Ginnie Mae |
|
391,696 |
|
856,856 |
Total liabilities |
|
12,939,271 |
|
9,397,183 |
Equity: |
||||
Preferred stock, |
|
— |
|
— |
Class A common stock, |
|
11 |
|
10 |
Class B common stock, |
— |
— |
||
Class C common stock, |
|
— |
|
— |
Class D common stock, |
|
149 |
|
150 |
Additional paid-in capital |
|
2,644 |
|
1,702 |
Retained earnings |
|
116,561 |
|
110,690 |
Non-controlling interest |
|
2,061,162 |
|
2,362,119 |
Total equity |
|
2,180,527 |
|
2,474,671 |
Total liabilities and equity |
$ |
15,119,798 |
$ |
11,871,854 |
UWM HOLDINGS CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in thousands, except shares and per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
For the three months ended |
For the nine months ended |
|||||||||||||
|
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
Revenue |
|
|
|
|
|
||||||||||
Loan production income |
$ |
465,548 |
|
$ |
357,109 |
|
$ |
288,930 |
|
$ |
1,121,611 |
|
$ |
775,111 |
|
Loan servicing income |
|
134,753 |
|
|
143,910 |
|
|
200,428 |
|
|
463,365 |
|
|
612,205 |
|
Change in fair value of mortgage servicing rights |
|
(446,100 |
) |
|
(142,485 |
) |
|
92,909 |
|
|
(604,148 |
) |
|
(219,730 |
) |
Gain on other interest rate derivatives |
|
226,936 |
|
|
27,166 |
|
|
— |
|
|
254,102 |
|
|
— |
|
Interest income |
|
145,297 |
|
|
121,394 |
|
|
94,849 |
|
|
368,554 |
|
|
258,324 |
|
Total revenue, net |
|
526,434 |
|
|
507,094 |
|
|
677,116 |
|
|
1,603,484 |
|
|
1,425,910 |
|
Expenses |
|
|
|
|
|
||||||||||
Salaries, commissions and benefits |
|
181,453 |
|
|
160,311 |
|
|
135,333 |
|
|
496,005 |
|
|
387,716 |
|
Direct loan production costs |
|
58,398 |
|
|
45,485 |
|
|
36,184 |
|
|
135,319 |
|
|
76,285 |
|
Marketing, travel, and entertainment |
|
22,462 |
|
|
24,438 |
|
|
20,117 |
|
|
66,011 |
|
|
58,915 |
|
Depreciation and amortization |
|
11,636 |
|
|
11,404 |
|
|
11,563 |
|
|
34,380 |
|
|
34,674 |
|
General and administrative |
|
53,664 |
|
|
55,051 |
|
|
44,904 |
|
|
149,524 |
|
|
132,214 |
|
Servicing costs |
|
25,009 |
|
|
25,787 |
|
|
33,640 |
|
|
81,120 |
|
|
102,160 |
|
Interest expense |
|
141,102 |
|
|
108,651 |
|
|
93,724 |
|
|
348,421 |
|
|
239,445 |
|
Other expense (income) |
|
421 |
|
|
(1,105 |
) |
|
(76 |
) |
|
(921 |
) |
|
2,386 |
|
Total expenses |
|
494,145 |
|
|
430,022 |
|
|
375,389 |
|
|
1,309,859 |
|
|
1,033,795 |
|
Earnings before income taxes |
|
32,289 |
|
|
77,072 |
|
|
301,727 |
|
|
293,625 |
|
|
392,115 |
|
Provision for income taxes |
|
344 |
|
|
786 |
|
|
734 |
|
|
4,863 |
|
|
941 |
|
Net income |
|
31,945 |
|
|
76,286 |
|
|
300,993 |
|
|
288,762 |
|
|
391,174 |
|
Net income attributable to non-controlling interest |
|
38,240 |
|
|
73,236 |
|
|
282,762 |
|
|
283,277 |
|
|
377,326 |
|
Net income (loss) attributable to UWMC |
$ |
(6,295 |
) |
$ |
3,050 |
|
$ |
18,231 |
|
$ |
5,485 |
|
$ |
13,848 |
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share of Class A common stock: |
|
|
|
|
|
||||||||||
Basic |
$ |
(0.06 |
) |
$ |
0.03 |
|
$ |
0.20 |
|
$ |
0.06 |
|
$ |
0.15 |
|
Diluted |
$ |
(0.06 |
) |
$ |
0.03 |
|
$ |
0.15 |
|
$ |
0.06 |
|
$ |
0.15 |
|
Weighted average shares outstanding: |
|||||||||||||||
Basic |
|
99,801,301 |
|
|
95,387,609 |
|
|
93,290,736 |
|
|
96,530,282 |
|
|
93,107,576 |
|
Diluted |
|
99,801,301 |
|
|
95,387,609 |
|
|
1,596,624,780 |
|
|
96,530,282 |
|
|
93,107,576
|
|
Addendum to Exhibit 99.1
This addendum includes the Company's Consolidated Balance Sheets as of September 30, 2024, and the preceding four quarters and Statements of Operations for the quarter ended September 30, 2024, 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, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||
Assets |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
|||||
Cash and cash equivalents |
$ |
636,327 |
$ |
680,153 |
$ |
605,639 |
$ |
497,468 |
$ |
729,616 |
Mortgage loans at fair value |
|
10,141,683 |
|
8,236,183 |
|
7,338,135 |
|
5,449,884 |
|
5,560,039 |
Derivative assets |
|
66,977 |
|
54,962 |
|
34,050 |
|
33,019 |
|
92,791 |
Investment securities at fair value, pledged |
|
108,964 |
|
105,593 |
|
108,323 |
|
110,352 |
|
104,526 |
Accounts receivable, net |
|
561,901 |
|
516,838 |
|
554,443 |
|
512,070 |
|
385,922 |
Mortgage servicing rights |
|
2,800,054 |
|
2,650,090 |
|
3,191,803 |
|
4,026,136 |
|
4,352,219 |
Premises and equipment, net |
|
147,981 |
|
146,750 |
|
145,265 |
|
146,417 |
|
146,509 |
Operating lease right-of-use asset |
|
95,123 |
|
96,474 |
|
97,801 |
|
99,125 |
|
100,427 |
Finance lease right-of-use asset, net |
|
24,020 |
|
25,061 |
|
26,890 |
|
29,111 |
|
31,803 |
Loans eligible for repurchase from Ginnie Mae |
|
391,696 |
|
279,290 |
|
577,487 |
|
856,856 |
|
617,490 |
Other assets |
|
145,072 |
|
130,247 |
|
117,498 |
|
111,416 |
|
82,795 |
Total assets |
$ |
15,119,798 |
$ |
12,921,641 |
$ |
12,797,334 |
$ |
11,871,854 |
$ |
12,204,137 |
Liabilities and Equity |
|
|
|
|
|
|||||
Warehouse lines of credit |
$ |
9,207,746 |
$ |
7,429,591 |
$ |
6,681,917 |
$ |
4,902,090 |
$ |
5,066,900 |
Derivative liabilities |
|
93,599 |
|
26,171 |
|
26,918 |
|
40,781 |
|
38,882 |
Secured line of credit |
|
300,000 |
|
— |
|
200,000 |
|
750,000 |
|
500,000 |
Borrowings against investment securities |
|
93,662 |
|
91,406 |
|
94,064 |
|
93,814 |
|
97,328 |
Accounts payable, accrued expenses and other |
|
573,865 |
|
486,138 |
|
477,765 |
|
469,101 |
|
503,890 |
Accrued distributions and dividends payable |
|
159,818 |
|
159,766 |
|
159,702 |
|
159,572 |
|
159,572 |
Senior notes |
|
1,991,216 |
|
1,990,233 |
|
1,989,250 |
|
1,988,267 |
|
1,987,284 |
Operating lease liability |
|
101,833 |
|
103,247 |
|
104,637 |
|
106,024 |
|
107,389 |
Finance lease liability |
|
25,836 |
|
26,787 |
|
28,536 |
|
30,678 |
|
33,291 |
Loans eligible for repurchase from Ginnie Mae |
|
391,696 |
|
279,290 |
|
577,487 |
|
856,856 |
|
617,490 |
Total liabilities |
|
12,939,271 |
|
10,592,629 |
|
10,340,276 |
|
9,397,183 |
|
9,112,026 |
Equity: |
|
|
|
|
|
|||||
Preferred stock, |
|
— |
|
— |
|
— |
|
— |
|
— |
Class A common stock, |
|
11 |
|
10 |
|
9 |
|
10 |
|
10 |
Class B common stock, |
|
— |
|
|
|
— |
|
— |
||
Class C common stock, |
|
— |
|
|
|
— |
|
— |
||
Class D common stock, |
|
149 |
|
150 |
|
150 |
|
150 |
|
150 |
Additional paid-in capital |
|
2,644 |
|
2,305 |
|
2,085 |
|
1,702 |
|
1,484 |
Retained earnings |
|
116,561 |
|
111,021 |
|
111,980 |
|
110,690 |
|
130,233 |
Non-controlling interest |
|
2,061,162 |
|
2,215,526 |
|
2,342,834 |
|
2,362,119 |
|
2,960,234 |
Total equity |
|
2,180,527 |
|
2,329,012 |
|
2,457,058 |
|
2,474,671 |
|
3,092,111 |
Total liabilities and equity |
$ |
15,119,798 |
$ |
12,921,641 |
$ |
12,797,334 |
$ |
11,871,854 |
$ |
12,204,137 |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in thousands, except shares and per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
For the three months ended |
||||||||||||||
|
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||
Revenue |
|
|
|
|
|
||||||||||
Loan production income |
$ |
465,548 |
|
$ |
357,109 |
|
$ |
298,954 |
|
$ |
225,436 |
|
$ |
288,930 |
|
Loan servicing income |
|
134,753 |
|
|
143,910 |
|
|
184,702 |
|
|
206,498 |
|
|
200,428 |
|
Change in fair value of mortgage servicing rights |
|
(446,100 |
) |
|
(142,485 |
) |
|
(15,563 |
) |
|
(634,418 |
) |
|
92,909 |
|
Gain on other interest rate derivatives |
|
226,936 |
|
|
27,166 |
|
|
— |
|
|
— |
|
|
— |
|
Interest income |
|
145,297 |
|
|
121,394 |
|
|
101,863 |
|
|
87,901 |
|
|
94,849 |
|
Total revenue, net |
|
526,434 |
|
|
507,094 |
|
|
569,956 |
|
|
(114,583 |
) |
|
677,116 |
|
Expenses |
|
|
|
|
|
||||||||||
Salaries, commissions and benefits |
|
181,453 |
|
|
160,311 |
|
|
154,241 |
|
|
142,515 |
|
|
135,333 |
|
Direct loan production costs |
|
58,398 |
|
|
45,485 |
|
|
31,436 |
|
|
27,977 |
|
|
36,184 |
|
Marketing, travel, and entertainment |
|
22,462 |
|
|
24,438 |
|
|
19,111 |
|
|
25,600 |
|
|
20,117 |
|
Depreciation and amortization |
|
11,636 |
|
|
11,404 |
|
|
11,340 |
|
|
11,472 |
|
|
11,563 |
|
General and administrative |
|
53,664 |
|
|
55,051 |
|
|
40,809 |
|
|
38,209 |
|
|
44,904 |
|
Servicing costs |
|
25,009 |
|
|
25,787 |
|
|
30,324 |
|
|
29,632 |
|
|
33,640 |
|
Interest expense |
|
141,102 |
|
|
108,651 |
|
|
98,668 |
|
|
80,811 |
|
|
93,724 |
|
Other expense (income) |
|
421 |
|
|
(1,105 |
) |
|
(237 |
) |
|
(2,391 |
) |
|
(76 |
) |
Total expenses |
|
494,145 |
|
|
430,022 |
|
|
385,692 |
|
|
353,825 |
|
|
375,389 |
|
Earnings (loss) before income taxes |
|
32,289 |
|
|
77,072 |
|
|
184,264 |
|
|
(468,408 |
) |
|
301,727 |
|
Provision (benefit) for income taxes |
|
344 |
|
|
786 |
|
|
3,733 |
|
|
(7,452 |
) |
|
734 |
|
Net income (loss) |
|
31,945 |
|
|
76,286 |
|
|
180,531 |
|
|
(460,956 |
) |
|
300,993 |
|
Net income (loss) attributable to non-controlling interest |
|
38,240 |
|
|
73,236 |
|
|
171,801 |
|
|
(433,878 |
) |
|
282,762 |
|
Net income (loss) attributable to UWMC |
$ |
(6,295 |
) |
$ |
3,050 |
|
$ |
8,730 |
|
$ |
(27,078 |
) |
$ |
18,231 |
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share of Class A common stock: |
|
|
|
|
|
||||||||||
Basic |
$ |
(0.06 |
) |
$ |
0.03 |
|
$ |
0.09 |
|
$ |
(0.29 |
) |
$ |
0.20 |
|
Diluted |
$ |
(0.06 |
) |
$ |
0.03 |
|
$ |
0.09 |
|
$ |
(0.29 |
) |
$ |
0.15 |
|
Weighted average shares outstanding: |
|||||||||||||||
Basic |
|
99,801,301 |
|
|
95,387,609 |
|
|
94,365,991 |
|
|
93,654,269 |
|
|
93,290,736 |
|
Diluted |
|
99,801,301 |
|
|
95,387,609 |
|
|
1,598,647,205 |
|
|
93,654,269 |
|
|
1,596,624,780 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107384410/en/
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 UWMC's loan origination volume in Q3 2024?
What was UWMC's net income for Q3 2024?
What is UWMC's guidance for Q4 2024?
What dividend did UWMC declare for Q3 2024?
