Loandepot, Inc. · NYSE:LDI
Loandepot — Q2 2024 Earnings Presentation
15 slides from Loandepot's earnings presentation, Aug 6, 2024
Slide 1: 2Q 2024 Investor Presentation
2Q 2024 INVESTOR PRESENTATION August 6, 2024
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, our business strategies, including the Vision 2025 plan, including our expanded productivity program, o
Slide 3: Second Quarter Fact Sheet
SECOND QUARTER FACT SHEET • Originations: $6.1 billion in funded volume, in line with second quarter 2024 guidance • Total Revenue: $265.4 million on $5.8 billion of pull-through weighted lock volume; Adjusted revenue of $278.0 million, the highest since market downturn • Total Expenses: Increased b
Slide 4: Vision 2025 Strategic Plan
VISION 2025 STRATEGIC PLAN OUR PROGRESS AGAINST THE FOUR PILLARS Invest in Growth-Generating Focus on Purchase Transactions Optimize and Simplify Initiatives and our Platform to Align our Cost Structure to the Size and Better Serving First-Time and Organizational Structure Support Operating Leverage
Slide 5: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS Frank Martell David Hayes Jeff Walsh Dan Binowitz Jeff DerGurahian TJ Freeborn President and CEO Chief Financial Officer President, LDI Mortgage Managing Director Chief Investment Officer and Chief Administrative Officer Servicing Head Econ
Slide 6: Scaled Originator Delivering Customers a Complete Solution
SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION 2010 Established Scalable 2013 Diversification 2016 Brand, Technology & Vision 2025 to to to 2022 + 2012 Infrastructure 2015 & Expansion 2021 Operational Transformation & Beyond • Launched with the goal of disrupting • Expanded in-market ret
Slide 7: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY Total Market 3.0% 3.0% 2.9% 3.1% 2.4% 2.1% 1.6% 1.5% 1.4% 1.4% 1.3% 1.2% 1.4% Share (%)(1) ($ in billions) $60 350 322 299 293 296 281 285 300 274 $50 264 250 221 226 213 $40 203 200 $30 150 150 $20 100 $10 50 $30 $34 $30 $32 $23 $29 $20 $22 $12 $16 $9 $10 $4
Slide 8: Historical Cost Structure Comparison ($M)
HISTORICAL COST STRUCTURE COMPARISON ($M) $31 $35 $28 $28 $34 $53 $43 $45 $47 4,683 $43 Direct Origination Expense Commissions $79 4,532 $97 $81 $82 $73 Marketing Other Interest Other G&A 4,250 4,246 $109 $16 $20 $14 $97 $97 $15 4,188 $98 $17 $96 Salaries FTEs $49 $44 $45 $36 $36 Volume Volume Volum
Slide 9: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) Portfolio @ 6/30/24 (3) 140 143 W.A. Coupon 3.66% $150 137 138 137 W.A. FICO (3) 730 140 120 W.A. LTV 74% $130 W.A. Age (Mths) 32.2 100 DQ Rate $110 80 60D+ 1.3% 90D+ 1.0% 60 Composition $90 40 GSE 57.0% Gov’t 33.7% $70 20 Other 9.3% $142 $144 $14
Slide 10: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity Overview ($M) MSR FV / Total Equity 3.1x 2.8x 2.7x 2.5x 2.7x $721 $721 $661 $2 $4 $604 $- 12% 12% $- $533 11% $- Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 10% 9% $719 $717 $661 Debt Obligations, net to Total Equity $604 $533 3.6x 3.4x 3.2x 2.8x 2.9x Q2 '23 Q3 '2
Slide 11: Q3 2024 Outlook
Q3 2024 OUTLOOK* Current Market Metric Low High Conditions • Higher interest rates and home price appreciation adversely Pull-through Weighted impacts home affordability and $5.0 $7.0 Rate Lock Volume ($bn) borrower demand • Limited supply of new and resale homes adversely impacts homebuying activit
Slide 12: Appendix
loanDepot APPENDIX
Slide 13: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 2Q’24 vs 2Q’24 vs $ in MM except units and % 2Q ’24 1Q ‘24 2Q ’23 1Q’24 2Q’23 Cash and cash equivalents $533.2 $603.7 $719.1 (11.7%) (25.9%) Loans held for sale, at fair value 2,378.0 2,300.1 2,256.6 3.4% 5.4% Servicing rights, at fair value 1,583.1 1,9
Slide 14: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 2Q ‘24 1Q ’24 2Q ’23 Adjusted Revenue Total Net Revenue $265.4 $222.8 $271.8 Valuation changes in in Servicing Rights, Net of Hedge 12.6 8.1 (3.1) Adjusted Total Revenue $278.0 $230.9 $268.7 Net (Loss) Income ($65.9) ($71.5) ($49.8) Interest Expense - Non-Fund
Slide 15: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) ($MM) 2Q ’24 1Q ’24 2Q ’23 Net Income (Loss) ($65.9) ($71.5) ($49.8) Adjustments to Income Taxes 8.8 9.8 6.9 Tax-Effected Net Income (Loss) (57.0) (61.7) (42.8) Valuation changes in in Servicing Rights, Net of Hedge 12.6 8.0 (3.1) Stock-Based Compensation E