Loandepot, Inc. · NYSE:LDI
Loandepot — Q4 2022 Earnings Presentation
17 slides from Loandepot's earnings presentation, Mar 8, 2023
Slide 1: 4Q 2022 Investor Presentation
4Q 2022 INVESTOR PRESENTATION March 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, financial condition and liquidity,
Slide 3: Fourth Quarter Fact Sheet
FOURTH QUARTER FACT SHEET • Originations: $6.4 billion in funded volume, near the high-end of fourth quarter 2022 guidance • Total Revenue: $169.7 million on $4.2 billion of pull-through weighted lock volume • Total Expenses: Decreased by $91.4 million, or 21% from the third quarter of 2022, primari
Slide 4: Vision 2025 Plan
VISION 2025 PLAN Focus on Purchase Transactions and Serving Diverse Communities Execute Growth Generating Initiatives • Purpose-driven organization, increasing purchase transactions and serving diverse • Launch of home equity line of credit (HELOC) giving efficient access to record levels of communi
Slide 5: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS Frank Martell Patrick Flanagan Jeff Walsh Zeenat Sidi Jeff DerGurahian Dan Binowitz President and CEO Chief Financial Officer President, LDI Mortgage President, LDI Digital Managing Director Chief Investment Officer and Products & Services
Slide 6: Scaled Originator Delivering Customers a Complete Solution
SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION 2010 Established Scalable 2013 Diversification 2016 Brand, Technology & Vision 2025 to to to 2022 + 2012 Infrastructure 2015 & Expansion 2021 Operational Transformation & Beyond • Launched with the goal of disrupting • Expanded in-market ret
Slide 7: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY 2017- 2022 Origination CAGR 9% Industry(1) 5% Total Market 2.5% 2.1% 2.4% 2.8% 3.8% 3.3% 3.4% 3.3% 3.1% 2.4% 2.2% 1.6% Share (%) ($ in billions) $80 500 447 450 $70 372 369 400 $60 346 350 299 281 $50 270 264 300 $40 213 221 250 203 200 150 $30 150 $20 100 $10
Slide 8: Historical Cost Structure Comparison
HISTORICAL COST STRUCTURE COMPARISON Historical expenses in bps of funded mortgage volume FY-22 Expenses to Note: Total Revenue (bps funded 362 bps 338 bps 295 bps 428 bps 272 bps 234 bps • $40.7 million of goodwill volume): impairment • $15.4 million of personnel- related payments 369 bps 362 bps 3
Slide 9: Achieved Vision 2025 Expense Savings Target
ACHIEVED VISION 2025 EXPENSE SAVINGS TARGET ($MM) 4Q ’22 3Q ‘22 2Q ’22 4Q vs. 2Q Notes Notes: Revenue $169.7 $274.2 $308.6 ($139.0) Non-Volume Related: Expenses 1. Approximately $63.6 million reduction due to headcount decreasing from 8,500 to 5,200 Personnel $165.6 $218.8 $296.6 ($130.9) 1,2 betwee
Slide 10: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) Portfolio @ 12/31/22 W.A. Coupon 3.13% W.A. FICO (3) 737 142 144 143 $180 135 W.A. LTV 140 71% 123 $160 W.A. Life (Mths) 120 18.5 DQ Rate $140 100 60D+ 1.0% $120 80 90D+ 0.8% $100 Composition $80 60 GSE 66.5% $60 40 Gov’t/EBO 26.3% $40 20 Other 7.
Slide 11: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity Overview ($M) MSR / Tangible Net Worth $1,376 2.2x 1.9x 1.8x 1.4x $1,151 1.3x $554 $984 16% $893 14% 13% Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 11% $1,144 Non-Funding Debt / Tangible Net Worth $458 $955 $864 2.5x $822 2.1x 2.0x $420 4% 1.0x 1.0x $38 $29 $7 $2
Slide 12: Q1 2023 Outlook
Q1 2023 OUTLOOK Current Market Metric Low High Conditions • Higher interest rates adversely impacts home affordability Pull-through Weighted $4.0 $6.0 Rate Lock Volume ($bn) • Increasing homeowner equity drives demand for cash-out refinance and HELOC products • Higher interest rates resulting in Ori
Slide 13: Appendix: Financials
loanDepot APPENDIX: FINANCIALS
Slide 14: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 4Q’22 vs 4Q’22 vs $ in MM except units and % 4Q’22 3Q’22 4Q’21 3Q’22 4Q’21 Cash and cash equivalents $864.0 $1,144.0 $419.6 (24.5%) 105.9% Loans held for sale, at fair value 2,373.4 2,692.8 8,136.8 (11.9%) (70.8%) Servicing rights, at fair value 2,037.4
Slide 15: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) Q4 ‘22 3Q ‘22 4Q’21 FY22 FY21 Adjusted Revenue Total Net Revenue $169.7 $274.2 $705.0 $1,255.8 $ 3,724.7 Change in FV of Servicing Rights, Net of Hedge 18.9 (24.5) 18.3 (39.8) 14.5 Adjusted Total Revenue $188.5 $249.7 $723.6 $1,216.0 $ 3,739.2 Adjusted (LBITDA
Slide 16: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) ($MM) Q4 ‘22 3Q ‘22 4Q’21 FY22 FY21 Adjusted Net (Loss) Income Net (Loss) Income ($157.8) ($137.5) $14.7 ($610.4) $ 623.1 Adjustments to Income Taxes 25.3 20.1 (1.5) 92.3 (132.5) Tax-Effected Net (Loss) Income ($132.4) ($117.4) $13.2 ($518.0) $ 490.6 Change
Slide 17: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) ($MM) 4Q ‘22 3Q ’22 2Q ’22 1Q ’22 4Q’21 Tangible Net Worth Total Equity $921.5 $1,078.5 $1,213.9 $1,511.2 $1,629.4 Less: Goodwill 0.0 0.0 0.0 (40.7) (40.7) Less: Intangibles 0.0 0.0 0.0 (1.5) (1.6) Tangible Net Worth $921.5 $1,078.5 $1,213.9 $1,469.0 $1,587