Loandepot, Inc. · NYSE:LDI
Loandepot — Q2 2022 Earnings Presentation
15 slides from Loandepot's earnings presentation, Aug 9, 2022
Slide 1: 2Q 2022 Investor Presentation
2Q 2022 INVESTOR PRESENTATION August 9, 2022
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, financial condition and liquidity, competitive
Slide 3: Second Quarter Fact Sheet
SECOND QUARTER FACT SHEET • Originations: $16 billion in funded volume, the midpoint of second quarter 2022 guidance • Total Revenue: $309 million on $12 billion of pull-through weighted lock volume • Total Expenses: Decreased by $46 million or 8% from the first quarter of 2022, due to lower marketi
Slide 4: Vision 2025 Plan
VISION 2025 PLAN Focus on Purchase Transactions and Serving Diverse Communities Execute Growth Generating Initiatives • Purpose-driven organization, increasing purchase transactions and serving diverse • Launch of all-digital home equity line of credit (HELOC) by the fourth quarter of 2022 communiti
Slide 5: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS Anthony Hsieh Frank Martell Patrick Flanagan Jeff Walsh Jeff DerGurahian Dan Binowitz Chief Executive Officer Chief Financial Officer President, LDI Mortgage Founder and Chief Capital Markets Officer Managing Director Executive Chairman LDI
Slide 6: Scaled Originator Delivering Customers a Complete Solution
SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION 2010 Established Scalable 2013 Diversification 2016 Brand, Technology & Vision 2025 to to to 2022 + 2012 Infrastructure 2015 & Expansion 2021 Operational Transformation & Beyond • Launched with the goal of disrupting • Expanded in-market ret
Slide 7: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY 2017- LTM Q2 ‘22 Origination CAGR 26% Industry(1) 14% Total Market 2.5% 2.1% 2.4% 2.8% 3.8% 3.3% 3.4% 3.3% 3.1% 2.4% Share (%) : ($ in billions) $80 500 447 450 $70 372 369 400 $60 346 350 299 270 281 264 $50 300 213 $40 250 200 150 $30 150 $20 100 $10 50 $18
Slide 8: Historical Cost Structure Comparison
HISTORICAL COST STRUCTURE COMPARISON Historical expenses in bps of funded mortgage volume YTD ’22 Included: Total Revenue (bps funded 362 bps 338 bps 295 bps 428 bps 272 bps 216 bps • $40.7 million of goodwill volume): impairment 369 bps • $10.5 million gain on the 354 bps extinguishment of debt 64
Slide 9: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) 142 $180 136 135 140 128 126 123 $160 120 109 $140 102 101 98 100 $120 80 $100 $80 60 $60 40 $40 20 $20 $42 $58 $77 $103 $130 $139 $145 $162 $153 $155 $- - Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1 '22 Q2 '22 UPB $ MSR FV, bps Recapture %
Slide 10: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity ($m) MSR / Tangible Net Worth 1.8x $1,376 1.4x 1.3x 1.2x 1.1x 13% 1.0x $554 $984 11% $805 $772 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 6% 6% $549 $507 $458 $955 Non-Funding Debt / Tangible Net Worth $630 4% 4% $822 $419 2.0x $420 $265 $175 $130 1.0x 1.0
Slide 11: Q3 2022 Outlook
Q3 2022 OUTLOOK Q3 2022 Guidance Current Market Metric Low High Conditions • Higher interest rates adversely impacts home affordability Pull-through Weighted $5.5 $10.5 Rate Lock Volume ($bn) • Increasing homeowner equity drives demand for cash-out refinance and other equity linked products Originat
Slide 12: Appendix: Financials
loanDepot APPENDIX: FINANCIALS
Slide 13: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 2Q’22 vs 2Q’22 vs $ in MM except units and % 2Q’22 1Q’22 2Q’21 1Q’22 2Q’21 Cash and cash equivalents $954.9 $554.1 $419.3 72% 128% Loans held for sale, at fair value 4,656.3 6,558.7 9,120.7 (29%) (49%) Servicing rights, at fair value 2,213.7 2,086.0 1,7
Slide 14: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 2Q ’22 1Q ’22 2Q’21 FY21 FY20 Adjusted Revenue Total Net Revenue $308.6 $503.3 $779.9 $ 3,724.7 $ 4,312.2 Change in FV of Servicing Rights, Net of Hedge (35.4) 1.3 45.4 14.5 (58.9) Adjusted Total Revenue $273.3 $504.6 $825.3 $ 3,739.2 $ 4,253.3 Adjusted (LBITD
Slide 15: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 2Q ’22 1Q ’22 4Q’21 3Q’21 2Q’21 Tangible Net Worth Total Equity $1,213.9 $1,511.2 $1,629.4 $1,658.2 $1,568.8 Less: Goodwill 0.0 (40.7) (40.7) (40.7) (40.7) Less: Intangibles 0.0 (1.5) (1.6) (1.7) (1.8) Tangible Net Worth $1,213.9 $1,469.0 $1,587.0 $1,615.7 $1.