Loandepot, Inc. · NYSE:LDI
Loandepot — Q2 2023 Earnings Presentation
16 slides from Loandepot's earnings presentation, Aug 8, 2023
Slide 1: 2Q 2023 Investor Presentation
2Q 2023 INVESTOR PRESENTATION August 8, 2023
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements and Other Information This presentation may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, its business strategies, including the Vision 2025 plan, our HELOC product, financial condition and liq
Slide 3: Second Quarter Fact Sheet
SECOND QUARTER FACT SHEET • Originations: $6.3 billion in funded volume, in line with second quarter 2023 guidance • Total Revenue: $271.8 million on $6.1 billion of pull-through weighted lock volume • Total Expenses: Increased by $15.7 million, or 5% from the first quarter of 2023, primarily due hi
Slide 4: Vision 2025 Plan
VISION 2025 PLAN Focus on Purchase Transactions and Serving Diverse Communities Execute Growth Generating Initiatives • Purpose-driven organization, increasing purchase transactions and serving diverse • Launch of home equity line of credit (HELOC) giving efficient access to record levels of communi
Slide 5: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS Frank Martell David Hayes Jeff Walsh Dan Binowitz Jeff DerGurahian President and CEO Chief Financial Officer President, LDI Mortgage Managing Director Chief Investment Officer and Operations & Servicing Head Economist Town & Country Credit
Slide 6: Scaled Originator Delivering Customers a Complete Solution
SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION 2010 Established Scalable 2013 Diversification 2016 Brand, Technology & Vision 2025 to to to 2022 + 2012 Infrastructure 2015 & Expansion 2021 Operational Transformation & Beyond • Launched with the goal of disrupting • Expanded in-market ret
Slide 7: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY Total Market 2.1% 2.4% 2.8% 3.8% 3.3% 3.4% 3.3% 3.1% 2.4% 2.2% 1.6% 1.5% 1.4% Share (%) ($ in billions) $80 500 447 450 $70 372 400 369 346 $60 350 299 285 $50 281 300 264 221 226 $40 250 213 203 200 $30 150 150 $20 100 $10 50 $25 $21 $36 $27 $36 $37 $33 $41 $
Slide 8: Historical Cost Structure Comparison
HISTORICAL COST STRUCTURE COMPARISON Historical expenses in bps of funded mortgage volume 2Q23 YTD Expenses to Note: Total Revenue (bps funded 338 bps 295 bps 428 bps 272 bps 234 bps 428 bps volume): • $5.4 million of personnel- related payments 575 • $3.1 million of lease and other asset impairment
Slide 9: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) Portfolio @ 6/30/23 142 144 143 142 140 W.A. Coupon 3.30% $180 140 W.A. FICO (3) 736 $160 W.A. LTV 71% 120 $140 W.A. Life (Mths) 23.4 100 DQ Rate $120 60D+ 0.8% 80 $100 $80 60 90D+ 0.7% $60 Composition 40 $40 GSE 65.8% 20 Gov’t/EBO 27.1% $20 $155
Slide 10: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity Overview ($M) MSR FV / Tangible Net Worth $1,151 $7 2.4x 2.5x 2.2x $984 1.8x 1.9x $893 $29 $802 $29 $721 $4 $2 $1,144 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 $955 Non-Funding Debt / Tangible Net Worth $864 $798 $719 2.7x 2.8x 2.5x 2.0x 2.1x Q2 '22 Q3 '22 Q4 '2
Slide 11: Q3 2023 Outlook
Q3 2023 OUTLOOK Current Market Metric Low High Conditions • Higher interest rates adversely impacts home affordability Pull-through Weighted $5.5 $7.5 Rate Lock Volume ($bn) • Limited supply of new and resale homes adversely impacts homebuying activity • Homeowner equity levels drives Origination Vo
Slide 12: Appendix: Financials
loanDepot APPENDIX: FINANCIALS
Slide 13: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 2Q’23 vs 2Q’23 vs $ in MM except units and % 2Q ‘23 1Q ‘23 2Q ’22 1Q’23 2Q’22 Cash and cash equivalents $719.1 $798.1 $954.9 (9.9%) (24.7%) Loans held for sale, at fair value 2,256.6 2,039.4 4,656.3 10.6% (51.5%) Servicing rights, at fair value 2,012.0
Slide 14: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 2Q ’23 1Q ’23 2Q ’22 Adjusted Revenue Total Net Revenue $271.8 $207.9 $308.6 Change in FV of Servicing Rights, Net of Hedge 3.9 18.3 (35.4) Adjusted Total Revenue $275.7 $226.2 $273.3 Adjusted (LBITDA) EBITDA Net (Loss) Income ($49.8) ($91.7) ($223.8) Interest
Slide 15: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) ($MM) 2Q ‘23 1Q ’23 2Q ‘22 Adjusted Net (Loss) Income Net (Loss) Income ($49.8) ($91.7) ($223.8) Adjustments to Income Taxes 6.9 13.3 32.0 Tax-Effected Net (Loss) Income (42.8) ($78.4) (191.9) Change in FV of Servicing Rights, Net of Hedge 3.9 18.3 (35.4) S
Slide 16: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) ($MM) 2Q ’23 1Q ‘23 4Q ‘22 3Q ’22 2Q ’22 1Q ’22 4Q’21 Tangible Net Worth Total Equity $797.3 $841.2 $921.5 $1,078.5 $1,213.9 $1,511.2 $1,629.4 Less: Goodwill 0.0 0.0 0.0 0.0 0.0 (40.7) (40.7) Less: Intangibles 0.0 0.0 0.0 0.0 0.0 (1.5) (1.6) Tangible Net Wo