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UWM Holdings Corporation Announces Fourth Quarter & Full Year 2023 Results

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UWM Holdings Corporation (NYSE: UWMC) reported a strong fourth quarter with a loan origination volume of $24.4 billion, including $20.7 billion in purchase volume. The company experienced a net loss of $461.0 million for 4Q23, mainly due to a decline in fair value of MSRs. Despite the financial loss, UWM remains operationally profitable and aims to invest in people, products, and technology for future growth.
Positive
  • Strong loan origination volume of $24.4 billion in 4Q23, with $20.7 billion in purchase volume
  • Net loss of $461.0 million in 4Q23, driven by a decline in fair value of MSRs
  • Company maintains operational profitability despite financial loss
  • Focus on investing in people, products, and technology for future growth
  • Record purchase originations of $93.9 billion in full year 2023
Negative
  • Net loss of $69.8 million for full year 2023
  • Decline in fair value of MSRs impacting financial results
  • Decrease in total equity from $3.1 billion in 3Q23 to $2.5 billion in 4Q23
  • Reduction in available liquidity from $2.9 billion in 3Q23 to $2.2 billion in 4Q23

The reported net loss of $461.0 million in the fourth quarter by UWM Holdings Corporation, including a significant markdown in the fair value of Mortgage Servicing Rights (MSRs), indicates potential volatility in the company's financial health. The decline in MSRs' value is primarily attributed to interest rate movements, which tend to inversely affect the valuation of these assets. It's important to note that MSRs are rights to service mortgages in exchange for a fee and their value can fluctuate with changes in interest rates and prepayment speeds. The reported total loan origination volume shows a decrease from the previous quarter and year-over-year, which may raise concerns about the company's growth trajectory in a competitive mortgage lending market.

Furthermore, the company's total gain margin of 92 basis points (bps) for the fourth quarter, although higher than the same quarter of the previous year, has decreased from the previous quarter, suggesting margin compression. This metric, which represents total loan production income divided by loan origination volume, is a critical indicator of the profitability per loan and can impact the company's overall financial performance. The provided outlook for the first quarter of 2024, with an anticipated production range of $22 to $28 billion and gain margin from 80 to 105 bps, suggests that the company is expecting a similar performance in the near term. The consistency of the dividend payout could be seen as a positive signal to investors regarding the company's commitment to shareholder returns despite the net loss.

The mortgage industry is highly sensitive to interest rate fluctuations and UWM Holdings Corporation's performance reflects this with a substantial impact on their MSRs. The company's focus on purchase originations, which accounted for the majority of its loan volume, demonstrates a strategic emphasis on the home purchase market rather than refinancing, which can be more interest rate-sensitive. This is evident from the record purchase originations reported for the full year of 2023. The company's position as the number one mortgage originator in America, according to the CEO, could help maintain its market share despite the challenging environment.

UWM's technological advancements and product launches, such as the Memory Maker tool and enhancements to Investor Flex, indicate an investment in innovation to enhance customer experience and operational efficiency. These initiatives could play a crucial role in differentiating UWM in the competitive mortgage lending space and securing future business. The reported Net Promoter Score of +86.5, which is a measure of customer loyalty, suggests strong customer satisfaction that could lead to repeat business and referrals, which are vital in the mortgage industry.

The mortgage market is influenced by broader economic conditions, particularly interest rates and housing market trends. UWM Holdings Corporation's significant net loss, driven by the markdown in MSRs, reflects the broader impact of rising interest rates on financial assets. The Federal Reserve's monetary policy, aimed at controlling inflation, has led to increased borrowing costs, which in turn can reduce demand for mortgage originations and put pressure on lenders' gain margins.

The company's strategic decision to focus on purchase volume over refinancing could be a response to the anticipated slowdown in refinancing activities due to higher rates. This shift in strategy may help to stabilize revenue streams, as purchase originations are less sensitive to interest rate increases compared to refinancing. Additionally, the company's low delinquency rate compared to the industry average suggests strong underwriting standards and a healthy loan portfolio, which is critical for long-term financial stability in a rising rate environment.

Fourth Quarter Loan Origination Volume of $24.4 Billion, Including Purchase Volume of $20.7 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 fourth quarter and full year ended December 31, 2023. Total loan origination volume for the fourth quarter 2023 was $24.4 billion, of which $20.7 billion was purchase volume. Total loan originations for full year 2023 were $108.3 billion, of which $93.9 billion was purchase volume. The Company reported 4Q23 net loss of $461.0 million, inclusive of a $634.4 million decline in fair value of MSRs, and diluted loss per share of $0.29. The Company reported full year 2023 loss of $69.8 million, inclusive of a $854.1 million decline in fair value of MSRs, and diluted loss per share of $0.14.

Mat Ishbia, Chairman and CEO of UWMC, said, "2023 was one of the best years in our company history. We were the number one mortgage originator in America, number one in purchase origination again, and, nine years running, the number one wholesale lender. We continue to be operationally profitable, the true measure of a mortgage originator's health, while our financial loss was driven by the MSR markdown which is a result of interest rate movements. Our recipe for success has not and will not change and we are currently doubling down on investing in our people, our products and our technology so that we can continue to provide the broker channel with the tools needed to win. I believe that 2024 is a tremendous opportunity for both UWM and the broker channel."

Fourth Quarter 2023 Highlights

  • Originations of $24.4 billion in 4Q23, compared to $29.7 billion in 3Q23 and $25.1 billion in 4Q22
  • Purchase originations of $20.7 billion in 4Q23, compared to $25.9 billion in 3Q23 and $21.7 billion in 4Q22
  • Total gain margin of 92 bps in 4Q23 compared to 97 bps in 3Q23 and 51 bps in 4Q22
  • Net loss of $461.0 million in 4Q23 compared to net income of $301.0 million in 3Q23 and net loss of $62.5 million 4Q22
  • Adjusted EBITDA of $99.6 million in 4Q23 compared to $112.1 million in 3Q23 and $60.4 million in 4Q22
  • Total equity of $2.5 billion at December 31, 2023, compared to $3.1 billion at September 30, 2023, and $3.2 billion at December 31, 2022
  • Unpaid principal balance of MSRs of $299.5 billion with a WAC of 4.43% at December 31, 2023, compared to $281.4 billion with a WAC of 4.20% at September 30, 2023, and $312.5 billion with a WAC of 3.64% at December 31, 2022
  • Ended 4Q23 with approximately $2.2 billion of available liquidity, including $497.5 million of cash, and $1.75 billion of available borrowing capacity, which includes $1.25 billion under lines of credit secured by agency and Ginnie Mae MSRs, and $500 million under an unsecured line of credit

Full Year 2023 Highlights

  • Originations of $108.3 billion in 2023, compared to $127.3 billion in 2022
  • Record purchase originations of $93.9 billion in 2023, compared to $90.8 billion in 2022
  • Net loss of $69.8 million in 2023, as compared to $931.9 million of net income in 2022
  • Total gain margin of 92 bps in 2023 compared to 77 bps in 2022

Production and Income Statement Highlights (dollars in thousands, except per share amounts)

 

 

Q4 2023

 

Q3 2023

 

Q4 2022

 

FY 2023

 

FY 2022

Loan origination volume(1)

 

$

24,372,436

 

 

$

29,721,633

 

 

$

25,126,844

 

 

$

108,275,883

 

 

$

127,285,461

 

Total gain margin(1)(2)

 

 

0.92

%

 

 

0.97

%

 

 

0.51

%

 

 

0.92

%

 

 

0.77

%

Net income (loss)

 

$

(460,956

)

 

$

300,993

 

 

$

(62,484

)

 

$

(69,782

)

 

$

931,858

 

Diluted earnings (loss) per share

 

 

(0.29

)

 

 

0.15

 

 

 

(0.03

)

 

 

(0.14

)

 

 

0.45

 

Adjusted diluted earnings (loss) per share(3)

 

 

(0.23

)

 

 

N/A

 

 

 

N/A

 

 

 

(0.04

)

 

 

0.45

 

Adjusted net income (loss)(3)

 

 

(361,002

)

 

 

234,713

 

 

 

(53,308

)

 

 

(57,142

)

 

 

719,415

 

Adjusted EBITDA(3)

 

 

99,566

 

 

 

112,062

 

 

 

60,393

 

 

 

478,270

 

 

 

282,402

 

(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)

 

 

Q4 2023

 

Q3 2023

 

Q4 2022

Cash and cash equivalents

 

$

497,468

 

$

729,616

 

$

704,898

Mortgage loans at fair value

 

 

5,449,884

 

 

5,560,039

 

 

7,134,960

Mortgage servicing rights

 

 

4,026,136

 

 

4,352,219

 

 

4,453,261

Total assets

 

 

11,871,854

 

 

12,204,137

 

 

13,600,625

Non-funding debt (1)

 

 

2,862,759

 

 

2,617,903

 

 

2,880,178

Total equity

 

 

2,474,671

 

 

3,092,111

 

 

3,171,693

Non-funding debt to equity (1)

 

 

1.16

 

 

0.85

 

 

0.91

(1)

Non-GAAP metric (see discussion and reconciliations below).

Mortgage Servicing Rights (dollars in thousands)

 

 

Q4 2023

 

Q3 2023

 

Q4 2022

Unpaid principal balance

 

$

299,456,189

 

 

$

281,373,662

 

 

$

312,454,025

 

Weighted average interest rate

 

 

4.43

%

 

 

4.20

%

 

 

3.64

%

Weighted average age (months)

 

 

21

 

 

 

20

 

 

 

16

 

Fourth Quarter Technology and Loan Product Launches

  • Launched Memory Maker, UWM’s tool for independent mortgage brokers to send their choice of thank you items to borrowers and real estate agents, leaving a lasting impression long after a loan is closed
  • Enhanced PA+, now allowing independent mortgage brokers and their processors more flexibility in choosing which parts of the loan process they would like a UWM Loan Coordinator to facilitate
  • Enhancements to Investor Flex, UWM’s Debt Service Coverage Ratio (“DSCR”) product now allows borrowers to close in a Limited Liability Company (LLC), giving borrowers an additional option to separate their personal properties and investment properties

Fourth Quarter Operational Highlights

  • Achieved Net Promoter Score of +86.5 in 4Q23.
  • Our 1.15% 60+ days delinquency as of December 31, 2023, was significantly better than the industry average of 1.78% (Source: Mortgage Bankers Association, as of Q4 2023).

Product and Investor Mix - Unpaid Principal Balance of Originations (dollars in thousands)

Purchase:

 

Q4 2023

 

Q3 2023

 

Q4 2022

 

FY 2023

 

FY 2022

Conventional

 

$

12,033,818

 

$

16,237,031

 

$

15,030,972

 

$

58,833,673

 

$

62,274,030

Government

 

 

6,805,530

 

 

8,031,062

 

 

6,135,366

 

 

29,640,141

 

 

23,773,422

Jumbo and other (1)

 

 

1,842,108

 

 

1,624,824

 

 

484,098

 

 

5,381,530

 

 

4,782,879

Total Purchase

 

$

20,681,456

 

$

25,892,917

 

$

21,650,436

 

$

93,855,344

 

$

90,830,331

 

 

 

 

 

 

 

 

 

 

 

Refinance:

 

Q4 2023

 

Q3 2023

 

Q4 2022

 

FY 2023

 

FY 2022

Conventional

 

$

1,386,645

 

$

1,736,055

 

$

2,254,680

 

$

7,082,401

 

$

27,059,252

Government

 

 

1,389,884

 

 

1,528,848

 

 

1,005,048

 

 

5,189,598

 

 

7,834,636

Jumbo and other (1)

 

 

914,451

 

 

563,813

 

 

216,680

 

 

2,148,540

 

 

1,561,242

Total Refinance

 

$

3,690,980

 

$

3,828,716

 

$

3,476,408

 

$

14,420,539

 

$

36,455,130

Total Originations

 

$

24,372,436

 

$

29,721,633

 

$

25,126,844

 

$

108,275,883

 

$

127,285,461

 

 

 

 

 

 

 

 

 

 

 

(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.

First Quarter 2024 Outlook

We anticipate first quarter production to be in the $22 to $28 billion range, with gain margin from 80 to 105 basis points.

Dividend

Subsequent to December 31, 2023, for the thirteenth 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 April 11, 2024, to stockholders of record at the close of business on March 20, 2024. Additionally, the Board approved a proportional distribution to SFS Corp., which is payable on or about April 11, 2024.

Earnings Conference Call Details

As previously announced, the Company will hold a conference call for financial analysts and investors on Wednesday, February 28, 2024 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://registrations.events/direct/Q4I3794250

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 (loss),” which is our pre-tax income (loss) together with an adjusted income tax provision (benefit), which is calculated as the provision for income taxes plus the tax effects of net income attributable to non-controlling interest determined using a blended statutory effective tax rate. “Adjusted net income (loss)” is a non-GAAP metric. "Adjusted diluted EPS" is defined as "Adjusted net income (loss)" 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 (loss) 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 (loss)

 

Q4 2023

 

Q3 2023

 

Q4 2022

 

FY 2023

 

FY 2022

Earnings (loss) before income taxes

 

$

(468,408

)

 

$

301,727

 

 

$

(69,258

)

 

$

(76,293

)

 

$

934,669

 

Adjusted income tax benefit (provision)

 

 

107,406

 

 

 

(67,014

)

 

 

15,950

 

 

 

19,151

 

 

 

(215,254

)

Adjusted net income (loss)

 

$

(361,002

)

 

$

234,713

 

 

$

(53,308

)

 

$

(57,142

)

 

$

719,415

 

Adjusted diluted EPS

 

Q4 2023

 

FY 2023

 

FY 2022

Diluted weighted average Class A common stock outstanding

 

 

93,654,269

 

 

 

93,245,373

 

 

 

92,475,170

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)

 

 

1,595,724,056

 

 

 

1,595,315,160

 

 

 

1,594,544,957

 

 

 

 

 

 

 

Adjusted net income (loss)

 

$

(361,002

)

 

$

(57,142

)

 

$

719,415

Adjusted diluted EPS

 

 

(0.23

)

 

 

(0.04

)

 

 

0.45

 

 

 

 

 

 

 

(1) Reflects the pro forma exchange and conversion of antidilutive Class D common stock to Class A common stock.

Adjusted EBITDA

 

Q4 2023

 

Q3 2023

 

Q4 2022

 

FY 2023

 

FY 2022

Net income (loss)

 

$

(460,956

)

 

$

300,993

 

 

$

(62,484

)

 

$

(69,782

)

 

$

931,858

 

Interest expense on non-funding debt

 

 

43,946

 

 

 

42,825

 

 

 

43,611

 

 

 

172,498

 

 

 

132,647

 

Provision (benefit) for income taxes

 

 

(7,452

)

 

 

734

 

 

 

(6,774

)

 

 

(6,511

)

 

 

2,811

 

Depreciation and amortization

 

 

11,472

 

 

 

11,563

 

 

 

11,713

 

 

 

46,146

 

 

 

45,235

 

Stock-based compensation expense

 

 

3,961

 

 

 

3,822

 

 

 

2,055

 

 

 

13,832

 

 

 

7,545

 

Change in fair value of MSRs due to valuation inputs or assumptions

 

 

507,686

 

 

 

(236,044

)

 

 

71,865

 

 

 

330,031

 

 

 

(868,803

)

Deferred compensation, net

 

 

3,300

 

 

 

(11,755

)

 

 

461

 

 

 

(7,938

)

 

 

7,370

 

Change in fair value of Public and Private Warrants

 

 

4,808

 

 

 

(2,021

)

 

 

54

 

 

 

6,060

 

 

 

(7,683

)

Change in Tax Receivable Agreement liability

 

 

260

 

 

 

(3,000

)

 

 

 

 

 

(1,575

)

 

 

3,200

 

Change in fair value of investment securities

 

 

(7,459

)

 

 

4,945

 

 

 

(108

)

 

 

(4,491

)

 

 

28,222

 

Adjusted EBITDA

 

$

99,566

 

 

$

112,062

 

 

$

60,393

 

 

$

478,270

 

 

$

282,402

 

Non-funding debt and non-funding debt to equity

 

Q4 2023

 

Q3 2023

 

Q4 2022

Senior notes

 

$

1,988,267

 

$

1,987,284

 

$

1,984,336

Secured lines of credit

 

 

750,000

 

 

500,000

 

 

750,000

Borrowings against investment securities

 

 

93,814

 

 

97,328

 

 

101,345

Equipment note payable

 

 

 

 

 

 

992

Finance lease liability

 

 

30,678

 

 

33,291

 

 

43,505

Total non-funding debt

 

$

2,862,759

 

$

2,617,903

 

$

2,880,178

Total equity

 

$

2,474,671

 

$

3,092,111

 

$

3,171,693

Non-funding debt to equity

 

 

1.16

 

 

0.85

 

 

0.91

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) our investment in our people, products and technology and the benefits to 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 first 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 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) the occurrence of a data breach or other failure of UWM’s cybersecurity or information security systems; (xii) the occurrence of data breaches or other cybersecurity failures at our third-party sub-servicers or other third-party vendors; (xiii) 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 (xiv) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission including those under “Risk Factors” therein. 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 nine consecutive years and is 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)

 

 

December 31,
2023

 

December 31,
2022

Assets

 

 

 

Cash and cash equivalents

$

497,468

 

$

704,898

Mortgage loans at fair value

 

5,449,884

 

 

7,134,960

Derivative assets

 

33,019

 

 

82,869

Investment securities at fair value, pledged

 

110,352

 

 

113,290

Accounts receivable, net

 

512,070

 

 

383,147

Mortgage servicing rights

 

4,026,136

 

 

4,453,261

Premises and equipment, net

 

146,417

 

 

152,477

Operating lease right-of-use asset, net (includes $97,596 and $102,322 with related parties)

 

99,125

 

 

104,181

Finance lease right-of-use asset (includes $24,802 and $26,867 with related parties)

 

29,111

 

 

42,218

Loans eligible for repurchase from Ginnie Mae

 

856,856

 

 

345,490

Other assets

 

111,416

 

 

83,834

Total assets

$

11,871,854

 

$

13,600,625

Liabilities and Equity

 

 

 

Warehouse lines of credit

$

4,902,090

 

$

6,443,992

Derivative liabilities

 

40,781

 

 

49,748

Secured line of credit

 

750,000

 

 

750,000

Borrowings against investment securities

 

93,814

 

 

101,345

Accounts payable, accrued expenses and other

 

469,101

 

 

439,719

Accrued distributions and dividends payable

 

159,572

 

 

159,465

Senior notes

 

1,988,267

 

 

1,984,336

Operating lease liability (includes $104,495 and $109,473 with related parties)

 

106,024

 

 

111,332

Finance lease liability (includes $26,260 and $27,857 with related parties)

 

30,678

 

 

43,505

Loans eligible for repurchase from Ginnie Mae

 

856,856

 

 

345,490

Total liabilities

 

9,397,183

 

 

10,428,932

Equity:

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of December 31, 2023 or December 31, 2022

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 93,654,269 and 92,575,974 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively

 

10

 

 

9

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of December 31, 2023 or December 31, 2022

 

 

 

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of December 31, 2023 or December 31, 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 December 31, 2023 and December 31, 2022, respectively

 

150

 

 

150

Additional paid-in capital

 

1,702

 

 

903

Retained earnings

 

110,690

 

 

142,500

Non-controlling interest

 

2,362,119

 

 

3,028,131

Total equity

 

2,474,671

 

 

3,171,693

Total liabilities and equity

$

11,871,854

 

$

13,600,625

UWM HOLDINGS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

 

 

For the three months ended

 

For the year ended

 

December 31,
2023

 

September 30,
2023

 

December 31,
2022

 

December 31,
2023

 

December 31,
2022

Revenue

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

Loan production income

$

225,436

 

 

$

288,930

 

 

$

129,180

 

 

$

1,000,547

 

 

$

981,988

Loan servicing income

 

206,498

 

 

 

200,428

 

 

 

217,225

 

 

 

818,703

 

 

 

792,072

Change in fair value of mortgage servicing rights

 

(634,418

)

 

 

92,909

 

 

 

(150,808

)

 

 

(854,148

)

 

 

284,104

Interest income

 

87,901

 

 

 

94,849

 

 

 

106,837

 

 

 

346,225

 

 

 

314,462

Total revenue, net

 

(114,583

)

 

 

677,116

 

 

 

302,434

 

 

 

1,311,327

 

 

 

2,372,626

Expenses

 

 

 

 

 

 

 

 

 

Salaries, commissions and benefits

 

142,515

 

 

 

135,333

 

 

 

118,266

 

 

 

530,231

 

 

 

552,886

Direct loan production costs

 

27,977

 

 

 

36,184

 

 

 

17,396

 

 

 

104,262

 

 

 

90,369

Marketing, travel, and entertainment

 

25,600

 

 

 

20,117

 

 

 

22,976

 

 

 

84,515

 

 

 

74,168

Depreciation and amortization

 

11,472

 

 

 

11,563

 

 

 

11,713

 

 

 

46,146

 

 

 

45,235

General and administrative

 

38,209

 

 

 

44,904

 

 

 

49,668

 

 

 

170,423

 

 

 

179,549

Servicing costs

 

29,632

 

 

 

33,640

 

 

 

36,809

 

 

 

131,792

 

 

 

166,024

Interest expense

 

80,811

 

 

 

93,724

 

 

 

114,918

 

 

 

320,256

 

 

 

305,987

Other expense (income)

 

(2,391

)

 

 

(76

)

 

 

(54

)

 

 

(5

)

 

 

23,739

Total expenses

 

353,825

 

 

 

375,389

 

 

 

371,692

 

 

 

1,387,620

 

 

 

1,437,957

Earnings (loss) before income taxes

 

(468,408

)

 

 

301,727

 

 

 

(69,258

)

 

 

(76,293

)

 

 

934,669

Provision (benefit) for income taxes

 

(7,452

)

 

 

734

 

 

 

(6,774

)

 

 

(6,511

)

 

 

2,811

Net income (loss)

 

(460,956

)

 

 

300,993

 

 

 

(62,484

)

 

 

(69,782

)

 

 

931,858

Net income (loss) attributable to non-controlling interest

 

(433,878

)

 

 

282,762

 

 

 

(62,207

)

 

 

(56,552

)

 

 

890,143

Net income (loss) attributable to UWMC

$

(27,078

)

 

$

18,231

 

 

$

(277

)

 

$

(13,230

)

 

$

41,715

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock:

 

 

 

 

 

 

 

 

 

Basic

$

(0.29

)

 

$

0.20

 

 

$

 

 

$

(0.14

)

 

$

0.45

Diluted

$

(0.29

)

 

$

0.15

 

 

$

(0.03

)

 

$

(0.14

)

 

$

0.45

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

93,654,269

 

 

 

93,290,736

 

 

 

92,575,549

 

 

 

93,245,373

 

 

 

92,475,170

Diluted

 

93,654,269

 

 

 

1,596,624,780

 

 

 

1,594,645,336

 

 

 

93,245,373

 

 

 

92,475,170

Addendum to Exhibit 99.1

This addendum includes the Company's Consolidated Balance Sheets as of December 31, 2023, and the preceding four quarters and Statements of Operations for the quarter ended December 31, 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)

 

 

December 31,
2023

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

Assets

 

(Unaudited)

(Unaudited)

(Unaudited)

 

Cash and cash equivalents

$

497,468

$

729,616

$

634,576

$

740,063

$

704,898

Mortgage loans at fair value

 

5,449,884

 

5,560,039

 

6,269,924

 

4,800,259

 

7,134,960

Derivative assets

 

33,019

 

92,791

 

61,407

 

61,136

 

82,869

Investment securities at fair value, pledged

 

110,352

 

104,526

 

111,625

 

114,275

 

113,290

Accounts receivable, net

 

512,070

 

385,922

 

347,865

 

433,747

 

383,147

Mortgage servicing rights

 

4,026,136

 

4,352,219

 

4,224,207

 

3,974,870

 

4,453,261

Premises and equipment, net

 

146,417

 

146,509

 

149,515

 

152,428

 

152,477

Operating lease right-of-use asset, net

 

99,125

 

100,427

 

101,686

 

102,923

 

104,181

Finance lease right-of-use asset

 

29,111

 

31,803

 

34,947

 

38,320

 

42,218

Loans eligible for repurchase from Ginnie Mae

 

856,856

 

617,490

 

409,078

 

440,775

 

345,490

Other assets

 

111,416

 

82,795

 

81,089

 

88,920

 

83,834

Total assets

$

11,871,854

$

12,204,137

$

12,425,919

$

10,947,716

$

13,600,625

Liabilities and Equity

 

 

 

 

 

Warehouse lines of credit

$

4,902,090

$

5,066,900

$

5,732,791

$

4,259,834

$

6,443,992

Derivative liabilities

 

40,781

 

38,882

 

21,734

 

62,742

 

49,748

Secured line of credit

 

750,000

 

500,000

 

500,000

 

500,000

 

750,000

Borrowings against investment securities

 

93,814

 

97,328

 

100,901

 

101,345

 

101,345

Accounts payable, accrued expenses and other

 

469,101

 

503,890

 

423,407

 

416,818

 

439,719

Accrued distributions and dividends payable

 

159,572

 

159,572

 

159,518

 

159,517

 

159,465

Senior notes

 

1,988,267

 

1,987,284

 

1,986,301

 

1,985,319

 

1,984,336

Operating lease liability

 

106,024

 

107,389

 

108,711

 

110,012

 

111,332

Finance lease liability

 

30,678

 

33,291

 

36,356

 

36,812

 

43,505

Loans eligible for repurchase from Ginnie Mae

 

856,856

 

617,490

 

409,078

 

440,775

 

345,490

Total liabilities

 

9,397,183

 

9,112,026

 

9,478,797

 

8,073,174

 

10,428,932

Equity:

 

 

 

 

 

Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of each of the periods presented

 

 

 

 

 

Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized; shares issued and outstanding - 93,654,269 as of December 31, 2023 , 93,654,269 as of September 30, 2023, 93,114,878 as of June 30, 2023, and 93,101,971 as of March 31, 2023 and 92,575,974 as of December 31, 2022

 

10

 

10

 

9

 

9

 

9

Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of each of the periods presented

 

 

 

 

 

Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of each of the periods presented

 

 

 

 

 

Class D common stock, $0.0001 par value - 1,700,000,000 shares authorized, 1,502,069,787 shares issued and outstanding as of each of the periods presented

 

150

 

150

 

150

 

150

 

150

Additional paid-in capital

 

1,702

 

1,484

 

1,267

 

1,036

 

903

Retained earnings

 

110,690

 

130,233

 

120,379

 

122,136

 

142,500

Non-controlling interest

 

2,362,119

 

2,960,234

 

2,825,317

 

2,751,211

 

3,028,131

Total equity

 

2,474,671

 

3,092,111

 

2,947,122

 

2,874,542

 

3,171,693

Total liabilities and equity

$

11,871,854

$

12,204,137

$

12,425,919

$

10,947,716

$

13,600,625

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share amounts)

(Unaudited)

 

 

For the three months ended

 

December 31,
2023

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

Revenue

 

 

 

 

 

Loan production income

$

225,436

 

$

288,930

 

$

280,757

$

205,424

 

$

129,180

 

Loan servicing income

 

206,498

 

 

200,428

 

 

193,220

 

218,557

 

 

217,225

 

Change in fair value of mortgage servicing rights

 

(634,418

)

 

92,909

 

 

24,648

 

(337,287

)

 

(150,808

)

Interest income

 

87,901

 

 

94,849

 

 

88,895

 

74,580

 

 

106,837

 

Total revenue, net

 

(114,583

)

 

677,116

 

 

587,520

 

161,274

 

 

302,434

 

Expenses

 

 

 

 

 

Salaries, commissions and benefits

 

142,515

 

 

135,333

 

 

131,380

 

121,003

 

 

118,266

 

Direct loan production costs

 

27,977

 

 

36,184

 

 

23,618

 

16,483

 

 

17,396

 

Marketing, travel, and entertainment

 

25,600

 

 

20,117

 

 

21,588

 

17,210

 

 

22,976

 

Depreciation and amortization

 

11,472

 

 

11,563

 

 

11,441

 

11,670

 

 

11,713

 

General and administrative

 

38,209

 

 

44,904

 

 

52,691

 

34,619

 

 

49,668

 

Servicing costs

 

29,632

 

 

33,640

 

 

31,658

 

36,862

 

 

36,809

 

Interest expense

 

80,811

 

 

93,724

 

 

82,437

 

63,284

 

 

114,918

 

Other expense (income)

 

(2,391

)

 

(76

)

 

2,703

 

(241

)

 

(54

)

Total expenses

 

353,825

 

 

375,389

 

 

357,516

 

300,890

 

 

371,692

 

Earnings (loss) before income taxes

 

(468,408

)

 

301,727

 

 

230,004

 

(139,616

)

 

(69,258

)

Provision (benefit) for income taxes

 

(7,452

)

 

734

 

 

1,210

 

(1,003

)

 

(6,774

)

Net income (loss)

 

(460,956

)

 

300,993

 

 

228,794

 

(138,613

)

 

(62,484

)

Net income (loss) attributable to non-controlling interest

 

(433,878

)

 

282,762

 

 

221,236

 

(126,672

)

 

(62,207

)

Net income (loss) attributable to UWMC

$

(27,078

)

$

18,231

 

$

7,558

$

(11,941

)

$

(277

)

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock:

 

 

 

 

 

Basic

$

(0.29

)

$

0.20

 

$

0.08

$

(0.13

)

$

 

Diluted

$

(0.29

)

$

0.15

 

$

0.08

$

(0.13

)

$

(0.03

)

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

93,654,269

 

 

93,290,736

 

 

93,107,133

 

92,920,794

 

 

92,575,549

 

Diluted

 

93,654,269

 

 

1,596,624,780

 

 

93,107,133

 

92,920,794

 

 

1,594,645,336

 

 

For inquiries regarding UWM, please contact:

INVESTOR CONTACT

BLAKE KOLO

InvestorRelations@uwm.com

MEDIA CONTACT

NICOLE ROBERTS

Media@uwm.com

Source: UWM Holdings Corporation

UWM Holdings Corporation reported a loan origination volume of $24.4 billion in the fourth quarter of 2023.

UWM Holdings Corporation experienced a net loss of $461.0 million in the fourth quarter of 2023.

The net loss for UWM Holdings Corporation in the fourth quarter of 2023 was mainly due to a $634.4 million decline in fair value of MSRs.

UWM Holdings Corporation reported a total loan origination volume of $108.3 billion for full year 2023.

UWM Holdings Corporation aims to invest in its people, products, and technology for future growth.

UWM Holdings Corporation achieved record purchase originations of $93.9 billion in full year 2023.
UWM Holdings Corporation

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About UWMC

at uwm, we are younited to focus on you, not the transaction. everything we do is designed to support our clients’ business and make lending easy. we deliver the fastest turn times in the industry. we develop groundbreaking tools like uclose that give you the power to go from clear-to-close to closing in minutes instead of days. we provide our account executives with over 200 hours of training before they dial up your number. we give you direct access to our underwriters and support teams — and much more. we’re also committed to making uwm a great place to work for our own team members so that they can provide the world-class service you deserve. here, relationships come first. that’s why more brokers choose uwm than any other lender. nmls #3038