Uwm holdings corporation announces fourth quarter & full year 2021 results
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 fourth quarter and full year ended december 31, 2021. the company reported 4q21 net income of $239.8 million, full year 2021 net income of $1.6 billion and diluted earnings per share for 2021 of $0.66. loan origination volume for the quarter was $55.2 billion, which included $24.5 billion in purchase volume. net income for the fourth quarter was inclusive of a $139.0 million decline in fair value of mortgage servicing rights ("msrs"). net income for full year 2021 was inclusive of a $587.8 million decline in fair value of msrs. mat ishbia, chairman and ceo of uwmc, said: "2021 was a fantastic year for uwm with incredible milestones: from becoming a public company to delivering another year of record production. we have continued to be relentless about developing and launching innovative technology solutions like bolt, the most advanced underwriting system in the industry, to enable sustainable and profitable growth for both uwm and our broker partners. we also delivered our best fourth quarter production of all time, coupled with growth in the broker channel." ishbia continued, "as the industry navigates rising rates and low housing inventory, uwm is well-positioned to succeed by doing what we do best - proving a mortgage broker is the fastest, easiest and most affordable option for borrowers. with continued channel growth and elite industry-leading service, we are poised to reach our goal of becoming the nation's #1 overall mortgage lender." fourth quarter 2021 financial highlights originations of $55.2 billion, slightly above the $54.7 billion originated in 4q20 purchase originations of $24.5 billion, a 103% increase compared to $12.1 billion in 4q20 net income of $239.8 million inclusive of a $139.0 million decline in fair value of msrs, as compared to $1.4 billion of net income in 4q20 inclusive of $215.4 million of expenses related to amortization, impairment, and payoffs of msrs total gain margin of 80 bps compared to 305 bps in 4q20 achieved approximately 33%1 market share of the wholesale channel for the quarter ended december 31, 2021 accelerated stock buyback, repurchasing 8,755,713 shares of class a common stock in 4q21 for $60.6 million, at an average price per share of $6.93 full year 2021 financial highlights originations of $226.5 billion in 2021, a 24% increase from $182.5 billion in 2020 purchase originations of $87.3 billion in 2021, a 103% increase compared to $42.9 billion in 2020 net income of $1.6 billion in 2021 inclusive of a $587.8 million decline in fair value of msrs, as compared to $3.4 billion of net income in 2020 inclusive of $573.1 million of expenses related to amortization, impairment, and payoffs of msrs total gain margin of 114 bps in 2021 compared to 249 bps in 2020 largest wholesale mortgage lender in the u.s. by closed loan volume seven years in a row, with approximately 31%2 market share of the wholesale channel for the year ended december 31, 2021 total equity of $3.2 billion at december 31, 2021 as compared to $2.4 billion at december 31, 2020 unpaid principal balance of msrs increased to $319.8 billion with a wac of 2.94% at december 31, 2021 as compared to $188.3 billion with a wac of 3.13% at december 31, 2020 through december 31, 2021, shares of class a common stock repurchased by the company totaled 11,498,330 for $81.6 million, at an average price per share of $7.10 production and income statement highlights (dollars in thousands) q4 2021 q3 2021 q4 2020 fy 2021 fy 2020 funded loan volume(1) $ 55,194,365 $ 63,004,342 $ 54,678,923 $ 226,503,692 $ 182,547,641 total gain margin(1)(2) 0.80 % 0.94 % 3.05 % 1.14 % 2.49 % net income $ 239,826 $ 329,857 $ 1,371,791 $ 1,568,400 $ 3,382,510 adjusted net income(3) 177,123 254,672 1,048,774 1,205,776 2,586,109 adjusted ebitda(3) 206,887 290,382 1,357,234 1,418,337 3,454,091 (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) q4 2021 q3 2021 q4 2020 cash and cash equivalents $ 731,088 $ 950,910 $ 1,223,837 mortgage loans at fair value 17,473,324 11,736,642 7,916,515 mortgage servicing rights (fair value at q4 2021 and q3 2021; amortized cost at q4 2020)(1) 3,314,952 2,900,310 1,756,864 total assets 22,528,358 16,480,950 11,493,476 non-funding debt (2) 2,158,911 1,580,143 1,159,283 total equity 3,171,001 2,994,028 2,374,280 non-funding debt to equity (2) 0.68 0.53 0.49 (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. in the fourth quarter 2021, the company proactively raised the loan limits on conforming loans in anticipation of the upcoming fhfa increase effective january 1, 2022. as a result of this early roll-out of the increased loan size limits and the aggregation of loans for private label securitization transactions, the company's outstanding loan balances and the amounts outstanding under the company's warehouse lines materially increased as of december 31, 2021, and in conjunction, our cash balance decreased. however, these amounts returned to more normalized levels when these loans were sold to the gses in early january 2022. as of january 31, 2022, our mortgage loans at fair value had decreased to $7.9 billion, as compared to $17.5 billion at december 31, 2021, and the amounts outstanding under our warehouse lines of credit had decreased to $7.0 billion as of january 31, 2022, as compared to $16.0 billion at december 31, 2021. in addition, our cash balance as of january 31, 2022, had increased to $887.7 million, as compared to $731.1 million at december 31, 2021. "our decision to temporarily increase our assets and utilize our cash during q4 is a great example of the benefits of being a public company and having significantly more cash, equity and liquidity than we have had through most of our history," said ishbia. "being able to opportunistically roll out higher conforming loan limits early was a strategic move giving borrowers and brokers a financing option that they would not have otherwise had. it serves as another example of the partnership and value that uwm provides to independent mortgage brokers." ________________________________ 1,2 source: industry mortgage finance mortgage servicing rights (dollars in thousands) q4 2021 q3 2021 q4 2020 unpaid principal balance $ 319,807,457 $ 284,918,293 $ 188,268,883 weighted average interest rate 2.94 % 2.95 % 3.13 % weighted average age (months) 9 8 6 technology update bolt was developed in-house by a team of technology and mortgage experts and launched in q3 of 2021. this groundbreaking technology sped up the application to clear-to-close time (“clear to close”) on conventional loans that utilized bolt by an average of approximately 5 days uwm appraisal direct, also launched in q3 of 2021, provides mortgage brokers a streamlined, transparent process for the scheduling, execution and delivery of an appraisal that they can easily track, which will deliver faster appraisals to offer a better experience and relieve a key pain point in the mortgage industry operational highlights we maintained an average clear to close of approximately 19 business days in 4q21 while management estimates an industry average of 43 days3 during 4q21 our 0.81% 60+ days delinquency and our 0.57% forbearance rates, as of december 31, 2021, are significantly better than the industry averages of 3.38%4 and 1.41%4, respectively, highlighting our strong credit quality product and investor mix - unpaid principal balance of originations (dollars in thousands) purchase: q4 2021 q3 2021 q4 2020 fy 2021 fy 2020 conventional $ 16,643,586 $ 18,633,123 $ 10,638,926 $ 63,026,794 $ 33,717,939 jumbo 2,861,921 3,368,094 661 9,395,143 583,299 government 4,996,092 4,472,931 1,457,197 14,833,808 8,619,874 total purchase $ 24,501,599 $ 26,474,148 $ 12,096,784 $ 87,255,745 $ 42,921,112 refinance: q4 2021 q3 2021 q4 2020 fy 2021 fy 2020 conventional $ 25,032,327 $ 31,353,081 $ 37,647,428 $ 120,152,065 $ 119,807,647 jumbo 2,074,353 2,244,459 — 7,061,299 897,409 government 3,586,086 2,932,654 4,934,711 12,034,583 18,921,473 total refinance $ 30,692,766 $ 36,530,194 $ 42,582,139 $ 139,247,947 $ 139,626,529 total originations $ 55,194,365 $ 63,004,342 $ 54,678,923 $ 226,503,692 $ 182,547,641 "we are excited by the success and significant growth we are seeing in the broker channel," said ishbia. "not only are more consumers learning that a mortgage broker is the fastest, easiest and most affordable way to obtain a mortgage, more and more retail loan officers are also realizing that they can better serve consumers and accelerate their own career growth by becoming independent mortgage brokers.” first quarter 2022 outlook we anticipate first quarter production to be in the $33-$42 billion range, with expected gain margin between 75 and 85 bps. dividend subsequent to december 31, 2021, for the fifth 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, 2022 (the “dividend payment date”) to stockholders of record at the close of business on march 14, 2022. 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. _______________________________ 3 source: ice mortgage technology; 4 source: mortgage bankers association earnings conference call details as previously announced, the company will hold a conference call for financial analysts and investors on tuesday, march 1, at 10:00 am et to review the results and answer questions. interested parties may register for a toll-free dial-in number by visiting: https://conferencingportals.com/event/ymodynrv please dial in at least 15 minutes in advance to ensure a timely connection to the call. audio webcast, taped replay and transcript will be available on the company's investor relations website at https://investors.uwm.com/. key operational metrics “funded loan volume” and “total gain margin” are key operational metrics that the company's management uses to evaluate the performance of the business. “funded loan 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 funded loan volume for the applicable periods. non-gaap metrics the company's net income for periods prior to the first quarter of 2021 does not reflect a significant income tax provision, since uwm (the company's accounting predecessor) is a pass-through entity not subject to federal and most state income taxes. for periods commencing with the first quarter of 2021, the company's net income does not reflect the income tax provision that would otherwise be reflected if 100% of the economic interest in uwm was owned by the company. therefore, for comparison purposes, the company provides “adjusted net income,” which is our pre-tax income adjusted for a 23.6% 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, 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 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, 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 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, 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 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 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 q4 2021 q3 2021 q4 2020 fy 2021 fy 2020 earnings before income taxes $ 231,836 $ 333,340 $ 1,372,741 $ 1,578,241 $ 3,384,960 impact of estimated annual effective tax rate of 23.6% (54,713 ) (78,668 ) (323,967 ) (372,465 ) (798,851 ) adjusted net income $ 177,123 $ 254,672 $ 1,048,774 $ 1,205,776 $ 2,586,109 adjusted ebitda q4 2021 q3 2021 q4 2020 fy 2021 fy 2020 net income $ 239,826 $ 329,857 $ 1,371,791 $ 1,568,400 $ 3,382,510 interest expense on non-funding debt 25,417 22,034 11,922 86,086 28,062 provision for income taxes (7,990 ) 3,483 950 9,841 2,450 depreciation and amortization 10,422 9,034 8,749 35,098 16,820 stock-based compensation expense 2,014 2,126 — 6,467 — change in fair value of msrs due to valuation inputs or assumptions (65,104 ) (61,477 ) — (286,348 ) — (recovery) impairment of msrs — — (12,578 ) — 19,584 deferred compensation, net (2,135 ) (5,965 ) (23,600 ) 21,900 4,665 change in fair value of public and private warrants (5,161 ) (12,110 ) — (36,105 ) — change in tax receivable agreement liability 8,537 3,400 — 11,937 — change in fair value of investment securities 1,061 — — 1,061 — adjusted ebitda $ 206,887 $ 290,382 $ 1,357,234 $ 1,418,337 $ 3,454,091 non-funding debt and non-funding debt to equity q4 2021 q3 2021 q4 2020 senior notes $ 1,980,112 $ 1,484,370 $ 789,323 borrowings against investment securities 118,786 32,560 — operating lines of credit — — 320,300 equipment note payable 2,046 2,343 26,528 finance lease liability 57,967 60,871 23,132 total non-funding debt $ 2,158,911 $ 1,580,144 $ 1,159,283 total equity $ 3,171,001 $ 2,994,028 $ 2,374,280 non-funding debt to equity 0.68 0.53 0.49 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; and (6) our purchase production and product mix. these statements are based on management’s current expectations, but are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results materially differ from those stated or implied in the forward-looking statements, including (i) uwm’s dependence on macroeconomic and u.s. residential real estate market conditions, including changes in u.s. monetary policies that affect interest rates; (ii) uwm’s reliance on its warehouse facilities and the risk of a decrease in the value of the collateral underlying certain of its facilities causing an unanticipated margin call; (iii) uwm’s ability to sell loans in the secondary market; (iv) uwm’s dependence on the government-sponsored entities such as fannie mae and freddie mac; (v) changes in the gses’, fha, usda and va guidelines or gse and ginnie mae guarantees; (vi) uwm’s dependence on independent mortgage advisors to originate mortgage loans; (vii) the risk that an increase in the value of the mbs uwm sells in forward markets to hedge its pipeline may result in an unanticipated margin call; (viii) uwm’s inability to continue to grow, or to effectively manage the growth of its loan origination volume; (ix) uwm’s ability to continue to attract and retain its independent mortgage advisor relationships; (x) uwm’s ability to implement technological innovation; (xi) uwm’s ability to continue to comply with the complex state and federal laws, regulations or practices applicable to mortgage loan origination and servicing in general; and (xii) other risks and uncertainties indicated from time to time in our filings with the securities and exchange commission including those under “risk factors” therein. with respect to expectations regarding the share repurchase program, the amount and timing of share repurchases will depend upon, among other things, market conditions, share price, liquidity targets and regulatory requirements. we wish to caution readers that certain important factors may have affected and could in the future affect our results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of us. we undertake no obligation to update forward-looking statements to reflect events or circumstances after the date hereof. about uwm holdings corporation and united wholesale mortgage headquartered in pontiac, michigan, uwm holdings corporation (the company) is the publicly traded indirect parent of united wholesale mortgage, llc (“uwm”). uwm is the largest wholesale mortgage lender in the united states, originating mortgage loans exclusively through the wholesale channel. 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. uwm holdings corporation consolidated balance sheets (in thousands, except shares and per share amounts) december 31, 2021 december 31, 2020 assets cash and cash equivalents $ 731,088 $ 1,223,837 mortgage loans at fair value 17,473,324 7,916,515 derivative assets 67,356 61,072 investment securities at fair value, pledged 152,263 — accounts receivable, net 415,691 253,600 mortgage servicing rights 3,314,952 1,756,864 premises and equipment, net 151,687 107,572 operating lease right-of-use asset, net (includes $104,595 and $92,571 with related parties) 104,828 93,098 finance lease right-of-use asset (includes $28,619 and $0 with related parties) 57,024 22,929 other assets 60,145 57,989 total assets $ 22,528,358 $ 11,493,476 liabilities and equity warehouse lines of credit $ 15,954,938 $ 6,941,397 derivative liabilities 36,741 66,237 operating lines of credit — 320,300 borrowings against investment securities 118,786 — accounts payable and accrued expenses 1,085,365 847,745 accrued dividends payable 9,171 — equipment note payable 2,046 26,528 senior notes 1,980,112 789,323 operating lease liability (includes $111,999 and $104,006 with related parties) 112,231 104,534 finance lease liability (includes $29,087 and $0 with related parties) 57,967 23,132 total liabilities 19,357,357 9,119,196 equity: preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of december 31, 2021 — — class a common stock, $0.0001 par value - 4,000,000,000 shares authorized, 91,612,305 shares issued and outstanding as of december 31, 2021 9 — class b common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of december 31, 2021 — — class c common stock, $0.0001 par value - 1,700,000,000 shares authorized, none issued and outstanding as of december 31, 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 december 31, 2021 150 — additional paid-in capital 437 24,839 retained earnings 141,805 2,349,441 non-controlling interest 3,028,600 — total equity 3,171,001 2,374,280 total liabilities and equity $ 22,528,358 $ 11,493,476 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, 2021 september 30, 2021 december 31, 2020 december 31, 2021 december 31, 2020 revenue (unaudited) (unaudited) (unaudited) loan production income $ 442,407 $ 589,461 $ 1,667,252 $ 2,585,807 $ 4,551,415 loan servicing income 194,976 174,695 105,648 638,738 288,304 change in fair value of mortgage servicing rights (138,988 ) (170,462 ) — (587,813 ) — gain (loss) on sale of mortgage servicing rights 2,461 (5,443 ) 3,538 1,791 (62,285 ) interest income 104,601 102,063 41,852 331,770 161,160 total revenue, net 605,457 690,314 1,818,290 2,970,293 4,938,594 expenses salaries, commissions and benefits 146,697 164,971 89,437 697,680 552,143 direct loan production costs 25,292 18,980 14,595 72,952 54,459 marketing, travel, and entertainment 25,334 14,138 6,454 62,472 20,367 depreciation and amortization 10,422 9,034 8,749 35,098 16,820 general and administrative 36,467 39,148 28,022 133,334 98,856 servicing costs 36,200 29,192 29,549 108,967 70,835 amortization, impairment and pay-offs of mortgage servicing rights — — 215,390 — 573,118 interest expense 88,772 90,221 53,353 304,656 167,036 other (income)/expense 4,437 (8,710 ) — (23,107 ) — total expenses 373,621 356,974 445,549 1,392,052 1,553,634 earnings before income taxes 231,836 333,340 1,372,741 1,578,241 3,384,960 provision for income taxes (7,990 ) 3,483 950 9,841 2,450 net income 239,826 329,857 1,371,791 1,568,400 3,382,510 net income attributable to non-controlling interest 222,876 304,611 n/a 1,469,955 n/a net income attributable to uwmc $ 16,950 $ 25,246 n/a $ 98,445 n/a earnings per share of class a common stock: basic $ 0.17 $ 0.25 n/a $ 0.98 n/a diluted $ 0.11 $ 0.16 n/a $ 0.66 n/a weighted average shares outstanding: basic 97,138,073 101,106,023 n/a 100,881,094 n/a diluted 1,599,785,759 1,603,710,511 n/a 1,603,157,640 n/a addendum to exhibit 99.1 this addendum includes the company's consolidated balance sheets as of december 31, 2021, and the preceding four quarters and statements of operations for the quarter ended december 31, 2021, 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, 2021 september 30, 2021 june 30, 2021 march 31, 2021 december 31, 2020 assets (unaudited) (unaudited) (unaudited) cash and cash equivalents $ 731,088 $ 950,910 $ 1,048,177 $ 1,592,663 $ 1,223,837 mortgage loans at fair value 17,473,324 11,736,642 12,404,112 5,503,271 7,916,515 derivative assets 67,356 143,807 75,438 113,168 61,072 investment securities at fair value, pledged 152,263 41,809 — — — accounts receivable, net 415,691 340,028 317,458 549,381 253,600 mortgage servicing rights 3,314,952 2,900,310 2,662,556 2,300,434 1,756,864 premises and equipment, net 151,687 145,774 130,864 111,964 107,572 operating lease right-of-use asset, net 104,828 105,902 87,130 87,896 93,098 finance lease right-of-use asset 57,024 60,113 61,356 54,456 22,929 other assets 60,145 55,655 57,007 59,393 57,989 total assets $ 22,528,358 $ 16,480,950 $ 16,844,098 $ 10,372,626 $ 11,493,476 liabilities and equity warehouse lines of credit $ 15,954,938 $ 10,487,950 $ 11,249,213 $ 4,823,740 $ 6,941,397 derivative liabilities 36,741 61,434 82,551 55,479 66,237 operating lines of credit — — — 400,000 320,300 borrowings against investment securities 118,786 32,560 — — — accounts payable and accrued expenses 1,085,365 1,229,483 1,018,536 1,185,499 847,745 accrued dividends payable 9,171 10,087 160,444 160,517 — equipment note payable 2,046 2,343 2,583 25,424 26,528 senior notes 1,980,112 1,484,370 1,483,587 789,870 789,323 operating lease liability 112,231 117,824 98,280 99,188 104,534 finance lease liability 57,967 60,871 61,918 54,873 23,132 total liabilities 19,357,357 13,486,922 14,157,112 7,594,590 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 9 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 150 150 150 150 — additional paid-in capital 437 313 187 — 24,839 retained earnings 141,805 129,815 109,397 113,078 2,349,441 non-controlling interest 3,028,600 2,863,740 2,577,242 2,664,798 — total equity 3,171,001 2,994,028 2,686,986 2,778,036 2,374,280 total liabilities and equity $ 22,528,358 $ 16,480,950 $ 16,844,098 $ 10,372,626 $ 11,493,476 consolidated statements of operations (in thousands, except shares and per share amounts) (unaudited) for the three months ended december 31, 2021 september 30, 2021 june 30, 2021 march 31, 2021 december 31, 2020 revenue loan production income $ 442,407 $ 589,461 $ 479,274 $ 1,074,665 $ 1,667,252 loan servicing income 194,976 174,695 145,278 123,789 105,648 change in fair value of mortgage servicing rights (138,988 ) (170,462 ) (219,104 ) (59,259 ) — gain (loss) on sale of mortgage servicing rights 2,461 (5,443 ) 10 4,763 3,538 interest income 104,601 102,063 79,194 45,912 41,852 total revenue, net 605,457 690,314 484,652 1,189,870 1,818,290 expenses salaries, commissions and benefits 146,697 164,971 172,951 213,061 89,437 direct loan production costs 25,292 18,980 15,518 13,162 14,595 marketing, travel, and entertainment 25,334 14,138 12,157 10,843 6,454 depreciation and amortization 10,422 9,034 8,353 7,289 8,749 general and administrative 36,467 39,148 41,289 16,430 28,022 servicing costs 36,200 29,192 23,067 20,508 29,549 amortization, impairment and pay-offs of mortgage servicing rights — — — — 215,390 interest expense 88,772 90,221 72,673 52,990 53,353 other (income) expense 4,437 (8,710 ) (1,530 ) (17,304 ) — total expenses 373,621 356,974 344,478 316,979 445,549 earnings before income taxes 231,836 333,340 140,174 872,891 1,372,741 provision for income taxes (7,990 ) 3,483 1,462 12,886 950 net income 239,826 329,857 138,712 860,005 1,371,791 net income attributable to non-controlling interest 222,876 304,611 130,448 812,020 n/a net income attributable to uwmc $ 16,950 25,246 8,264 47,985 n/a earnings per share of class a common stock: basic $ 0.17 $ 0.25 $ 0.08 $ 0.47 n/a diluted $ 0.11 $ 0.16 $ 0.07 $ 0.33 n/a weighted average shares outstanding: basic 97,138,073 101,106,023 102,760,823 103,104,205 n/a diluted 1,599,785,759 1,603,710,511 1,605,067,478 1,605,173,992 n/a
