UWM Holdings Corporation Announces Third Quarter 2021 Results
11/09/2021 - 07:30 AM
$329.9 million in 3Q21 Net Income;
Record Quarterly Total Loan Volume of $63.0 billion and Purchase Volume of $26.5 billion
PONTIAC, Mich. --(BUSINESS WIRE)--
UWM Holdings Corporation (NYSE: UWMC ), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), the #1 wholesale mortgage lender in America, today announced its results for the third quarter ended September 30, 2021 . UWMC reported 3Q21 net income of $329.9 million and diluted earnings per share of $0.16 . Loan origination volume for the quarter was a record of $63.0 billion , which included $26.5 billion in purchase volume. Net income for the third quarter was inclusive of a $170.5 million decline in fair value of mortgage servicing rights (MSRs).
Mat Ishbia , Chairman and CEO of UWMC, said: "UWM broke company records yet again in Q3 for overall originations and purchase originations, demonstrating continued momentum for both UWM and the broker channel. I'm proud of our newest technology launches, BOLT, The Source, and UWM Appraisal Direct. These enhancements are just another in a long line of technology initiatives that UWM has pioneered over the years for the benefit of independent mortgage brokers, and by extension, consumers that are wise enough to use them rather than our retail competitors. Now more than ever, the broker channel is the fastest, easiest and cheapest way for a consumer to get a mortgage."
Third Quarter 2021 Financial Highlights
Originations of $63.0 billion , a 16% increase from $54.3 billion in 3Q20 and a 6% increase from $59.2 billion in 2Q21
Purchase originations of $26.5 billion , a 119% increase compared to $12.1 billion in 3Q20 and a 10% increase from $24.1 billion in 2Q21
Total gain margin of 94 bps in 3Q21 compared to 318 bps in 3Q20 and 81 bps in 2Q21
Third quarter 2021 net income of $329.9 million inclusive of a $170.5 million decline in fair value of MSRs as compared to $1.5 billion of net income for 3Q20 inclusive of $68.9 million of expenses related to amortization, impairment, and pay-offs of MSRs and $138.7 million of net income for 2Q21 inclusive of a $219.1 million decline in fair value of MSRs
Total equity of $3.0 billion at September 30, 2021 as compared to $2.0 billion at September 30, 2020 and $2.7 billion at June 30, 2021
Unpaid principal balance of mortgage servicing rights increased to $284.9 billion at September 30, 2021 from $153.1 billion at September 30, 2020 and $260.5 billion at June 30, 2021
Sale of MSRs in 3Q21 on loans with an aggregate unpaid principal balance of approximately $22.7 billion for proceeds of approximately $269.9 million
Continued stock buyback, repurchasing 1,952,018 Class A shares in 3Q21; through September 30, 2021 , total Class A shares repurchased by the Company of 2,742,617 for $21.0 million for an average price per share of $7.66
Production and Income Statement Highlights (dollars in thousands)
Q3 2021
Q2 2021
Q3 2020
Closed loan volume(1)
$
63,004,342
$
59,210,747
$
54,289,429
Total gain margin(1)(2)
0.94
%
0.81
%
3.18
%
Net income
$
329,857
$
138,712
$
1,450,883
Adjusted net income(3)
254,672
106,841
1,109,048
Adjusted EBITDA(3)
290,382
209,651
1,391,204
(1)
Key operational metric - see discussion below.
(2)
Represents total loan production income divided by total production.
(3)
Non-GAAP metric - see discussion below.
Balance Sheet Highlights as of Period-end (dollars in thousands)
Q3 2021
Q2 2021
Q3 2020
Cash and cash equivalents
$
950,910
$
1,048,177
$
755,795
Mortgage loans at fair value
11,736,642
12,404,112
5,215,196
Mortgage servicing rights (fair value at Q3 2021 and Q2 2021; amortized cost at Q3 2020)(1)
2,900,310
2,662,556
1,411,272
Total assets
16,480,950
16,844,098
7,907,803
Non-funding debt (2)
1,580,143
1,548,088
346,225
Total equity
2,994,028
2,686,986
2,022,361
Non-funding debt to equity (2)
0.53
0.58
0.17
(1)
The Company elected the fair value method of accounting for mortgage servicing rights effective January 1, 2021 .
(2)
Non-GAAP metric - please see discussion below.
Mortgage Servicing Rights (dollars in thousands)
Q3 2021
Q2 2021
Q3 2020
Unpaid principal balance
$
284,918,293
$
260,514,602
$
153,113,808
Weighted average interest rate
2.95
%
2.97
%
3.32
%
Weighted average age (months)
8
7
4
Technology Update
UWM launched three new technologies in Q3 which are intended to speed-up the loan process and help independent mortgage brokers grow their business:
BOLT allows broker clients to obtain an initial underwrite approval for qualified borrowers in as little as 15 minutes which will unlock underwriter capacity and ultimately drive down UWM's cost-per-loan.
UWM Appraisal Direct will streamline the appraisal process delivering faster appraisals and a long list of benefits to appraisers and borrowers alike to offer a better experience and relieve a key pain point in the mortgage industry.
The Source is a mortgage search engine that learns from past searches and allows for the creation of a personalized hub for every UWM broker client to customize and track the information most important to them from pricing matrices to GSE guidelines and even job aids on all of UWM's technology.
Operational and Community Highlights
We maintained an average application to clear to close time (“Days to Close”) of approximately 19 days in 3Q21 while management estimates that the industry remains at an average of 43 days during the third quarter 2021, as released in the August ICE Mortgage Technology Origination Insight Report
Our 1.01% 60+ days delinquency and our 0.83% forbearance rates, as of September 30, 2021 , are significantly better than the industry averages of 3.91% and 2.62% , respectively, highlighting our strong credit quality
Executed $1.17 billion in Private Label Securitization deals and sold MSRs on loans with an aggregate unpaid principal balance of approximately $22.7 billion for proceeds of approximately $269.9 million
UWM celebrated National Mortgage Broker Day by inviting 100 mortgage brokers to ring the NYSE closing bell on July 21st
Product and Investor Mix - Unpaid Principal Balance of Originations (dollars in thousands)
Purchase:
Q3 2021
Q2 2021
Q3 2020
Conventional
$
18,633,123
$
17,439,162
$
10,373,521
Jumbo
3,368,094
3,151,864
—
Government
4,472,931
3,471,430
1,719,375
Total Purchase
$
26,474,148
$
24,062,456
$
12,092,896
Refinance:
Q3 2021
Q2 2021
Q3 2020
Conventional
$
31,353,081
$
30,143,310
$
37,115,641
Jumbo
2,244,459
2,737,040
4,605
Government
2,932,654
2,267,940
5,076,287
Total Refinance
$
36,530,194
$
35,148,290
$
42,196,533
Total Originations
$
63,004,342
$
59,210,746
$
54,289,429
Chairman and CEO of UWMC, Mat Ishbia , added: “As the mortgage market shifts from heavy refinance to more purchase, UWM and the wholesale channel, are uniquely positioned to best serve the needs of the American consumer as a team. Brokers, by nature, are embedded in their local housing markets and UWM provides them elite technology, speed, and service, especially on purchase loans. Technologies like BOLT and UWM Appraisal Direct will continue to fuel broker channel growth for years to come.”
Fourth Quarter 2021 Outlook
We anticipate fourth quarter production to be in the $52-$60 billion range, with expected gain margin between 85 and 105 bps.
Dividend
Subsequent to September 30, 2021 , for the fourth consecutive quarter, the UWMC 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 6, 2022 (the “Dividend Payment Date”) to stockholders of record at the close of business on December 10, 2021 . On or before the Dividend Payment Date, the Board, in its capacity as the Manager of UWM Holdings LLC ("Holdings LLC ") and pursuant to its authority under the Holdings LLC Amended and Restated Operating Agreement, will determine whether to (a) make distributions from Holdings LLC to only UWM Holdings Corporation , as the owner of the Class A Units of Holdings LLC with the proportional amount due to SFS Holding Corp. ("SFS Corp. ") as the owner of the Class B Units of Holdings LLC , being distributed upon the sooner to occur of (i) the Board making a determination to do so or (ii) the date on which Class B Units of Holdings LLC are converted into shares of Class B common stock of UWMC or (b) make proportional and simultaneous distributions from Holdings LLC to both UWM Holdings Corporation , as the owner of the Class A Units of Holdings LLC and to SFS Corp. as the owner of the Class B Units of Holdings LLC .
Earnings Conference Call Details
As previously announced, UWMC will hold a conference call for financial analysts and investors on Tuesday, November 9 at 9:00 AM ET to review the results and answer questions. Interested parties may register for a toll-free dial-in number by visiting:
Please dial in at least 15 minutes in advance to ensure a timely connection to the call. Audio webcast, taped replay and transcript will be available on the UWMC investor relations website at https://investors.uwm.com/ .
Key Operational Metrics
“Closed loan volume” and “Total gain margin” are key operational metrics that UWMC management uses to evaluate the performance of the business. “Closed loan volume” is the aggregate principal of the residential mortgage loans originated by UWMC during a period. “Total gain margin” represents total loan production income divided by total loan production.
Non-GAAP Metrics
UWMC's net income for periods prior to the first quarter of 2021 does not reflect a significant income tax provision, since UWM (UWMC'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, UWMC'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 UWMC. Therefore, for comparison purposes, UWMC provides “Adjusted net income”, which is our pre-tax income adjusted for a 23.60% estimated annual effective tax rate. “Adjusted net income” is a Non-GAAP Metric.
We also disclose Adjusted EBITDA, which we define as earnings before interest expense on non-funding debt, provision for income taxes, depreciation and amortization of premises and equipment, stock-based compensation expense, the change in fair value of MSRs due to valuation inputs or assumptions (for periods subsequent to the election of the fair value method accounting for MSRs), and the impairment or recovery of MSRs (for periods prior to the election of the fair value method of accounting for MSRs), the impact of non-cash deferred compensation expense, the change in fair value of Public and Private Warrants, and the change in Tax Receivable Agreement liability. We exclude the change in Tax Receivable Agreement liability, the change in fair value of Public and Private Warrants and the change in fair value of MSRs due to valuation inputs or assumptions, or impairment or recovery of MSRs prior to the election of the fair value method of accounting for MSRs, as these represent non-cash, non-realized adjustments to our earnings, which are 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 UWMC's senior notes, operating lines of credit, borrowings against investment securities, equipment note payable, and finance leases as reported on our balance sheet, and the “Non-funding debt to equity ratio” as total Non-funding debt divided by UWMC’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 table presents these non-GAAP financial measures along with their most directly comparable financial measure calculated in accordance with GAAP (dollars in thousands):
Adjusted net income
Q3 2021
Q2 2021
Q3 2020
Earnings before income taxes
$
333,340
$
140,174
$
1,451,633
Impact of estimated annual effective tax rate of 23.60%
(78,668
)
(33,081
)
(342,585
)
Adjusted net income
$
254,672
$
107,093
$
1,109,048
Adjusted EBITDA
Q3 2021
Q2 2021
Q3 2020
Net income
$
329,857
$
138,712
$
1,450,883
Interest expense on non-funding debt
22,034
22,292
4,374
Provision for income taxes
3,483
1,462
750
Depreciation and amortization
9,034
8,353
2,749
Stock-based compensation expense
2,126
2,327
—
Change in fair value of MSRs due to valuation inputs or assumptions
(61,477
)
38,035
—
Recovery of MSRs
—
—
(84,519
)
Deferred compensation, net
(5,965
)
—
16,967
Change in fair value of Public and Private Warrants
(12,110
)
(1,530
)
—
Change in Tax Receivable Agreement liability
3,400
—
—
Adjusted EBITDA
$
290,382
$
209,651
$
1,391,204
Non-funding debt and non-funding debt to equity
Q3 2021
Q2 2021
Q3 2020
Senior notes
$
1,484,370
$
1,483,587
$
—
Borrowings against investment securities
32,560
—
—
Operating lines of credit
—
—
320,300
Equipment note payable
2,343
2,583
25,925
Finance lease liability
60,871
61,918
—
Total non-funding debt
$
1,580,143
$
1,548,088
$
346,225
Total equity
$
2,994,028
$
2,686,986
$
2,022,361
Non-funding debt to equity
0.53
0.58
0.17
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 include statements regarding: (1) our foundation and strategies for growth and the drivers of that growth; (2) our “All-In” initiative and its impact on our business and industry; (3) our performance in shifting market conditions and the comparison of such performance against our competitors; (4) growth of the wholesale channel and the benefits to our business of such growth; (5) our investments in technology and the impact to our operations and financial results; (6) our purchase production and product mix; and (7) our anticipated ranges for production volume and margin in the third quarter of 2021. 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, regulatory requirements. We wish to caution readers that certain important factors may have affected and could in the future affect our results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of us. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
About UWM Holdings Corporation and United Wholesale Mortgage
Headquartered in Pontiac, Michigan , UWM Holdings Corporation is the publicly traded indirect parent of United Wholesale Mortgage (“UWM”). UWM is the #1 wholesale lender in the nation six years in a row, providing state-of-the-art technology and unrivaled client service. UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspondents, small banks and local credit unions. UWM focuses on providing highly efficient, accurate and expeditious lending support. UWM’s exceptional teamwork and focus on technology result in the delivery of innovative mortgage solutions that drive the company’s ongoing growth in market share and its leadership position as the foremost advocate for independent mortgage brokers. For more information, visit www.uwm.com .
UWM HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and per share amounts)
September 30 ,
2021
December 31 ,
2020
Assets
(Unaudited)
Cash and cash equivalents
$
950,910
$
1,223,837
Mortgage loans at fair value
11,736,642
7,916,515
Derivative assets
143,807
61,072
Investment securities at fair value, pledged
41,809
—
Accounts receivable, net
340,028
253,600
Mortgage servicing rights
2,900,310
1,756,864
Premises and equipment, net
145,774
107,572
Operating lease right-of-use asset, net (includes $105,594 and $92,571 with related parties)
105,902
93,098
Finance lease right-of-use asset (includes $29,129 and $0 with related parties)
60,113
22,929
Other assets
55,655
57,989
Total assets
$
16,480,950
$
11,493,476
Liabilities and Equity
Warehouse lines of credit
$
10,487,950
$
6,941,397
Accounts payable and accrued expenses
1,229,483
847,745
Accrued distributions and dividends payable
10,087
—
Derivative liabilities
61,434
66,237
Borrowings against investment securities
32,560
—
Equipment note payable
2,343
26,528
Operating lines of credit
—
320,300
Senior notes
1,484,370
789,323
Operating lease liability
(includes $117,516 and $104,006 with related parties)
117,824
104,534
Finance lease liability
(includes $29,462 and $0 with related parties)
60,871
23,132
Total liabilities
13,486,922
9,119,196
Equity:
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of September 30, 2021
—
—
Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 100,367,478 shares issued and outstanding as of September 30, 2021
10
—
Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2021
—
—
Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2021
—
—
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, 2021
150
—
Additional paid-in capital
313
24,839
Retained earnings
129,815
2,349,441
Non-controlling interest
2,863,740
—
Total equity
2,994,028
2,374,280
Total liabilities and equity
$
16,480,950
$
11,493,476
UWM HOLDINGS CORPORATION
CONDENSED 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 ,
2021
June 30 ,
2021
September 30 ,
2020
September 30 ,
2021
September 30 ,
2020
Revenue
Loan production income
$
589,461
$
479,274
$
1,723,981
$
2,143,400
$
2,884,162
Loan servicing income
174,695
145,278
70,503
443,762
182,656
Change in fair value of mortgage servicing rights
(170,462
)
(219,104
)
—
(448,825
)
—
Gain (loss) on sale of mortgage servicing rights
(5,443
)
10
(324
)
(670
)
(65,821
)
Interest income
102,063
79,194
40,041
227,169
119,308
Total revenue, net
690,314
484,652
1,834,201
2,364,836
3,120,305
Expenses
Salaries, commissions and benefits
164,971
172,951
206,174
550,983
462,706
Direct loan production costs
18,980
15,518
16,685
47,660
39,864
Marketing, travel, and entertainment
14,138
12,157
3,608
37,138
13,913
Depreciation and amortization
9,034
8,353
2,749
24,676
8,071
Servicing costs
29,192
23,067
15,320
72,767
41,286
Amortization, impairment and pay-offs of mortgage servicing rights
—
—
68,928
—
357,728
General and administrative
39,148
41,289
28,484
96,867
70,835
Interest expense
90,221
72,673
40,620
215,884
113,683
Other (income)/expense
(8,710
)
(1,530
)
—
(27,544
)
—
Total expenses
356,974
344,478
382,568
1,018,431
1,108,086
Earnings before income taxes
333,340
140,174
1,451,633
1,346,405
2,012,219
Provision for income taxes
3,483
1,462
750
17,831
1,500
Net income
329,857
138,712
1,450,883
1,328,574
2,010,719
Net income attributable to non-controlling interest
304,611
130,448
N/A
$
1,247,079
N/A
Net income attributable to UWMC
$
25,246
$
8,264
N/A
$
81,495
N/A
Earnings per share of Class A common stock:
Basic
$
0.25
$
0.08
N/A
$
0.80
N/A
Diluted
$
0.16
$
0.07
N/A
$
0.55
N/A
Weighted average shares outstanding:
Basic
101,106,023
102,760,823
N/A
102,247,594
N/A
Diluted
1,603,710,511
1,605,067,478
N/A
1,604,567,758
N/A
Addendum to Exhibit 99.1
This addendum includes the Company's Condensed Consolidated Balance Sheets as of September 30, 2021 and the preceding four quarters and Statements of Operations for the quarter ended September 30, 2021 and the preceding four quarters, for purposes of providing historical quarterly trending information to investors.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and per share amounts)
September 30 ,
2021
June 30 ,
2021
March 31 ,
2021
December 31 ,
2020
September 30 ,
2020
Assets
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Cash and cash equivalents
$
950,910
$
1,048,177
$
1,592,663
$
1,223,837
$
755,795
Mortgage loans at fair value
11,736,642
12,404,112
5,503,271
7,916,515
5,215,196
Derivative assets
143,807
75,438
113,168
61,072
51,053
Investment securities at fair value, pledged
41,809
—
—
—
—
Accounts receivable, net
340,028
317,458
549,381
253,600
246,862
Mortgage servicing rights
2,900,310
2,662,556
2,300,434
1,756,864
1,411,272
Premises and equipment, net
145,774
130,864
111,964
107,572
51,548
Operating lease right-of-use asset, net
105,902
87,130
87,896
93,098
109,680
Finance lease right-of-use asset
60,113
61,356
54,456
22,929
—
Other assets
55,655
57,007
59,393
57,989
66,397
Total assets
$
16,480,950
$
16,844,098
$
10,372,626
$
11,493,476
$
7,907,803
Liabilities and Equity
Warehouse lines of credit
$
10,487,950
$
11,249,213
$
4,823,740
$
6,941,397
$
4,913,206
Accounts payable and accrued expenses
1,229,483
1,018,536
1,185,499
847,745
462,074
Accrued dividends payable
10,087
160,444
160,517
—
—
Derivative liabilities
61,434
82,551
55,479
66,237
41,498
Borrowings against investment securities
32,560
—
—
—
—
Equipment note payable
2,343
2,583
25,424
26,528
25,925
Operating lines of credit
—
—
400,000
320,300
320,300
Senior notes
1,484,370
1,483,587
789,870
789,323
—
Operating lease liability
117,824
98,280
99,188
104,534
122,439
Finance lease liability
60,871
61,918
54,873
23,132
—
Total liabilities
13,486,922
14,157,112
7,594,590
9,119,196
5,885,442
Equity:
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of September 30, 2021
—
—
—
—
—
Class A common stock, $0.0001 par value - 4,000,000,000 shares authorized, 100,367,478 shares issued and outstanding as of September 30, 2021
10
10
10
—
—
Class B common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2021
—
—
—
—
—
Class C common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of September 30, 2021
—
—
—
—
—
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, 2021
150
150
150
—
—
Additional paid-in capital
313
187
—
24,839
24,839
Retained earnings
129,815
109,397
113,078
2,349,441
1,997,522
Non-controlling interest
2,863,740
2,577,242
2,664,798
—
—
Total equity
2,994,028
2,686,986
2,778,036
2,374,280
2,022,361
Total liabilities and equity
$
16,480,950
$
16,844,098
$
10,372,626
$
11,493,476
$
7,907,803
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except shares and per share amounts)
(Unaudited)
For the three months ended
September 30 ,
2021
June 30 ,
2021
March 31 ,
2021
December 31 ,
2020
September 30 ,
2020
Revenue
Loan production income
$
589,461
$
479,274
$
1,074,665
$
1,667,252
$
1,723,981
Loan servicing income
174,695
145,278
123,789
105,648
70,503
Change in fair value of mortgage servicing rights
(170,462
)
(219,104
)
(59,259
)
—
—
Gain (loss) on sale of mortgage servicing rights
(5,443
)
10
4,763
3,538
(324
)
Interest income
102,063
79,194
45,912
41,852
40,041
Total revenue, net
690,314
484,652
1,189,870
1,818,290
1,834,201
Expenses
Salaries, commissions and benefits
164,971
172,951
213,061
89,437
206,174
Direct loan production costs
18,980
15,518
13,162
14,595
16,685
Marketing, travel, and entertainment
14,138
12,157
10,843
6,454
3,608
Depreciation and amortization
9,034
8,353
7,289
8,749
2,749
Servicing costs
29,192
23,067
20,508
29,549
15,320
Amortization, impairment and pay-offs of mortgage servicing rights
—
—
—
215,390
68,928
General and administrative
39,148
41,289
16,430
28,022
28,484
Interest expense
90,221
72,673
52,990
53,353
40,620
Other (income) expense
(8,710
)
(1,530
)
(17,304
)
—
—
Total expenses
356,974
344,478
316,979
445,549
382,568
Earnings before income taxes
333,340
140,174
872,891
1,372,741
1,451,633
Provision for income taxes
3,483
1,462
12,886
950
750
Net income
329,857
138,712
860,005
1,371,791
1,450,883
Net income attributable to non-controlling interest
304,611
130,448
812,020
N/A
N/A
Net income attributable to UWMC
$
25,246
8,264
47,985
N/A
N/A
Earnings per share of Class A common stock:
Basic
$
0.25
$
0.08
$
0.47
N/A
N/A
Diluted
$
0.16
$
0.07
$
0.33
N/A
N/A
Weighted average shares outstanding:
Basic
101,106,023
102,760,823
103,104,205
N/A
N/A
Diluted
1,603,710,511
1,605,067,478
1,605,173,992
N/A
N/A
View source version on businesswire.com : https://www.businesswire.com/news/home/20211109005532/en/
INVESTOR CONTACT
MATT ROSLIN
InvestorRelations@uwm.com
MEDIA CONTACT
NICOLE YELLAND
Media@uwm.com
Source: UWM Holdings Corporation