Loandepot, Inc. · NYSE:LDI
Loandepot — Q3 2023 Earnings Presentation
16 slides from Loandepot's earnings presentation, Nov 7, 2023
Slide 1: 3Q 2023 Investor Presentation
3Q 2023 INVESTOR PRESENTATION November 7, 2023
Slide 2: Disclaimer: Forward-Looking Statements and Other Information
DISCLAIMER 2 Forward-Looking Statements and Other Information This press release 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
Slide 3: Third Quarter Fact Sheet
3 THIRD QUARTER FACT SHEET Financial Operational • Originations: $6.1 billion in funded volume, in line with third quarter 2023 guidance • Total Revenue: $265.7 million on $5.7 billion of pull-through weighted lock volume • Total Expenses: Decreased by $25.0 million, or 8% from the second quarter of
Slide 4: Vision 2025 Plan: Significant Progress Executing Vision
4 VISION 2025 PLAN SIGNIFICANT PROGRESS EXECUTING VISION 2025 OBJECTIVES Focus on Purchase Transactions and Serving Diverse Communities • Named by The Wall Street Journal as the “Best Mortgage Lender for First- Time Buyers,” validating our mission of purpose- driven lending to the increasingly diver
Slide 5: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS President and CEO Jeff WalshDavid Hayes Dan Binowitz Jeff DerGurahian Chief Administrative Officer President, LDI Mortgage Town & Country Credit Corp. Chief Investment Officer and Head Economist TJ Freeborn Chief Information Officer George
Slide 6: Scaled Originator Delivering Customers a Complete Solution
$35 $33 $45 $101 $137 $54 $24 2.0% 2.0% 2.0% 2.5% 3.4% 2.4% 1.4% – 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 0 20 40 60 80 100 120 140 2017 2018 2019 2020 2021 2022 LTM Q3'23 loanDepot Historical Mortgage Origination Volume SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION Inception to LTM Q3
Slide 7: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY (1) MBA as of 10/15/2023 Note: Pull through weighted rate lock volume is the unpaid principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability 7 Purchase Mix % : 31% 26% ($ in billions) T
Slide 8: Historical Cost Structure Comparison
Historical expenses in bps of funded mortgage volume HISTORICAL COST STRUCTURE COMPARISON 8 338 bps 295 bps 428 bps Total Revenue (bps funded volume): Pre-tax Net Income (bps funded volume): (31) bps 7 bps 200 bps Salary Expense Marketing and Advertising Expense Direct Origination Expense (incl. Inv
Slide 9: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND 9 ($ in billions) Retention %(2) : Recapture %(1) : (1) Recapture rate as defined on page 3. (2) Portion of loan origination volume that was sold servicing retained in the period divided by total sold volume in the period. (3) At time of origination. Excludes HEL
Slide 10: Strong Liquidity and Balance Sheet
Liquidity / Total Assets $1,144 $864 $798 $719 $717 $7 $29 $4 $2 $4 $1,151 $893 $802 $721 $721 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Unrestricted Cash Unused Lines STRONG LIQUIDITY AND BALANCE SHEET Note: Please see Appendix for Non-GAAP Reconciliation 10 Liquidity Overview ($M) Debt Obligations, net t
Slide 11: Q4 2023 Outlook
11 Q4 2023 OUTLOOK* Metric Low High Pull-through Weighted Rate Lock Volume ($bn) $3.8 $5.8 Origination Volume ($bn) $4.0 $6.0 Pull-through Weighted GOS Margin, bps 240 280 Current Market Conditions • Higher interest rates adversely impacts home affordability and borrower demand • Limited supply of n
Slide 12: Appendix: Financials and GAAP to Non-GAAP Reconciliations
APPENDIX: FINANCIALS AND GAAP TO NON- GAAP RECONCILIATIONS
Slide 13: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 13 $ in MM except units and % 3Q ’23 2Q ‘23 3Q ‘22 3Q’23 vs 2Q’23 3Q’23 vs 3Q’22 Cash and cash equivalents $717.2 $719.1 $1,143.9 (0.3%) (37.3%) Loans held for sale, at fair value 2,070.7 2,256.6 2,692.8 (8.2%) (23.1%) Servicing rights, at fair value 2,
Slide 14: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION 14 ($MM) 3Q ‘23 2Q ’23 3Q ’22 Adjusted Revenue Total Net Revenue $265.7 $271.8 $274.2 Change in FV of Servicing Rights, Net of Hedge 0.7 3.9 (24.5) Adjusted Total Revenue $266.4 $275.7 $249.7 Adjusted (LBITDA) EBITDA Net (Loss) Income ($34.3) ($49.8) ($137.5) Intere
Slide 15: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) 15 ($MM) 3Q ’23 2Q ‘23 3Q ’22 Adjusted Net (Loss) Income Net (Loss) Income ($34.3) ($49.8) ($137.5) Adjustments to Income Taxes 4.8 6.9 20.1 Tax-Effected Net (Loss) Income (29.4) (42.8) ($117.4) Change in FV of Servicing Rights, Net of Hedge 0.7 3.9 (24.5)
Slide 16: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) 16 ($MM) 3Q ’23 2Q ’23 1Q ‘23 4Q ‘22 3Q ’22 2Q ’22 1Q ’22 4Q’21 Tangible Net Worth Total Equity $768.9 $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 0.0 (40.7) (40.7) Less: Intangibles 0.0 0.0 0.0 0.0 0.0 0.0 (1