Loandepot, Inc. · NYSE:LDI
Loandepot — Q3 2022 Earnings Presentation
16 slides from Loandepot's earnings presentation, Nov 8, 2022
Slide 1: 3Q 2022 Investor Presentation
3Q 2022 INVESTOR PRESENTATION November 8, 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, our digital HELOC, financial condition and liq
Slide 3: Third Quarter Fact Sheet
THIRD QUARTER FACT SHEET • Originations: $9.8 billion in funded volume, near the high-end of third quarter 2022 guidance • Total Revenue: $274.2 million on $8.8 billion of pull-through weighted lock volume • Total Expenses: Decreased by $125.5 million or 22% from the second quarter of 2022, primaril
Slide 4: Vision 2025 Plan
VISION 2025 PLAN Focus on Purchase Transactions and Serving Diverse Communities Execute Growth Generating Initiatives • Purpose-driven organization, increasing purchase transactions and serving diverse • Launch of digital home equity line of credit (HELOC) giving efficient access to record communiti
Slide 5: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS Frank Martell Patrick Flanagan Jeff Walsh Zeenat Sidi Jeff DerGurahian Dan Binowitz President and CEO Chief Financial Officer President, LDI Mortgage President, LDI Digital Managing Director Chief Investment Officer and Products & Services
Slide 6: Scaled Originator Delivering Customers a Complete Solution
SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION 2010 Established Scalable 2013 Diversification 2016 Brand, Technology & Vision 2025 to to to 2022 + 2012 Infrastructure 2015 & Expansion 2021 Operational Transformation & Beyond • Launched with the goal of disrupting • Expanded in-market ret
Slide 7: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY 2017- LTM Q3 ‘22 Origination CAGR 18% Industry(1) 11% Total Market 2.5% 2.1% 2.4% 2.8% 3.8% 3.3% 3.4% 3.3% 3.1% 2.4% 2.2% Share (%) ($ in billions) $80 500 447 450 $70 372 369 400 $60 346 350 299 $50 270 281 264 300 213 $40 250 203 200 150 $30 150 $20 100 $10
Slide 8: Historical Cost Structure Comparison
HISTORICAL COST STRUCTURE COMPARISON Historical expenses in bps of funded mortgage volume YTD ’22 Expenses to Note: Total Revenue (bps funded 362 bps 338 bps 295 bps 428 bps 272 bps 229 bps • $40.7 million of goodwill volume): impairment • $17.4 million of severance & 369 bps other personnel-related
Slide 9: Progress Towards Vision 2025 Expense Savings Target
PROGRESS TOWARDS VISION 2025 EXPENSE SAVINGS TARGET ($MM) 3Q ‘22 2Q ’22 Change Notes Notes: Revenue $274.2 $308.6 ($34.4) Non-Volume Related: Expenses 1. Approximately $35.6 million reduction due to headcount decreasing from 8,500 to 6,100 Personnel $218.8 $296.6 ($77.7) 1,2 QoQ Marketing and Advert
Slide 10: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) 142 144 $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 $140 $- - Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1 '22 Q2 '22 Q3 '22 UPB $ MSR FV,
Slide 11: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity Overview ($M) MSR / Tangible Net Worth $1,376 1.9x 1.8x 1.4x 1.3x $1,151 1.1x $554 $984 16% $772 13% Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 11% $1,144 Non-Funding Debt / Tangible Net Worth $507 $458 $955 2.1x 2.0x $822 6% $420 1.0x 1.0x $265 4% 0.9x $38 $29 $
Slide 12: Q4 2022 Outlook
Q4 2022 OUTLOOK Current Market Metric Low High Conditions • Higher interest rates adversely impacts home affordability Pull-through Weighted $3.0 $6.0 Rate Lock Volume ($bn) • Increasing homeowner equity is expected to drive demand for cash-out refinance and HELOC products Origination Volume ($bn) $
Slide 13: Appendix: Financials
loanDepot APPENDIX: FINANCIALS
Slide 14: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 3Q’22 vs 3Q’22 vs $ in MM except units and % 3Q’22 2Q’22 3Q’21 2Q’22 3Q’21 Cash and cash equivalents $1,144.0 $954.9 $506.6 20% 126% Loans held for sale, at fair value 2,692.8 4,656.3 8,873.7 (42%) (70%) Servicing rights, at fair value 2,030.0 2,213.7 1
Slide 15: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 3Q ‘22 2Q ’22 3Q’21 FY21 FY20 Adjusted Revenue Total Net Revenue $274.2 $308.6 $923.8 $ 3,724.7 $ 4,312.2 Change in FV of Servicing Rights, Net of Hedge (24.5) (35.4) 25.0 14.5 (58.9) Adjusted Total Revenue $249.7 $273.3 $948.8 $ 3,739.2 $ 4,253.3 Adjusted (LB
Slide 16: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 3Q ’22 2Q ’22 1Q ’22 4Q’21 3Q’21 Tangible Net Worth Total Equity $1,078.5 $1,213.9 $1,511.2 $1,629.4 $1,658.2 Less: Goodwill 0.0 0.0 (40.7) (40.7) (40.7) Less: Intangibles 0.0 0.0 (1.5) (1.6) (1.7) Tangible Net Worth $1,078.5 $1,213.9 $1,469.0 $1,587.0 $1,615.