loanDepot, Inc. · NYSE:LDI
loanDepot — Q1 2024 Earnings Presentation
15 slides from loanDepot's earnings presentation, May 7, 2024
Slide 1: 1Q 2024 Investor Presentation
1Q 2024 INVESTOR PRESENTATION May 7, 2024
Slide 2: Disclaimer
DISCLAIMER 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: First Quarter Fact Sheet
FIRST QUARTER FACT SHEET • Originations: $4.6 billion in funded volume, in line with first quarter 2024 guidance • Total Revenue: $222.8 million on $4.7 billion of pull-through weighted lock volume • Total Expenses: Decreased by $6.5 million, or 2% from the first quarter of 2023 • Primarily from low
Slide 4: Vision 2025 Plan
VISION 2025 PLAN SIGNIFICANT PROGRESS EXECUTING VISION 2025 OBJECTIVES Focus on Purchase Execute Growth Generating Aggressively Right-Size Cost Optimize Organizational Transactions and Serving Initiatives Structure Structure Diverse Communities • Named by The Wall Street • Strong HELOC • Reduced cos
Slide 5: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS Frank Martell David Hayes Jeff Walsh Dan Binowitz Jeff DerGurahian President and CEO Chief Financial Officer President, LDI Mortgage Managing Director Chief Investment Officer and Operations & Servicing Head Economist Town & Country Credit
Slide 6: Scaled Originator Delivering Customers a Complete Solution
SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION 2010 Established Scalable 2013 Diversification 2016 Brand, Technology & Vision 2025 to to to 2022 + 2012 Infrastructure 2015 & Expansion 2021 Operational Transformation & Beyond • Launched with the goal of disrupting • Expanded in-market ret
Slide 7: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY Total Market 3.4% 3.3% 3.4% 3.3% 3.1% 2.4% 2.1% 1.6% 1.5% 1.4% 1.4% 1.3% 1.2% Share (%) ($ in billions) $60 400 369 350 $50 299 293 296 281 285 300 274 264 $40 250 221 226 213 203 $30 200 150 150 $20 100 $10 50 $33 $41 $30 $34 $30 $32 $23 $29 $20 $22 $12 $16 $
Slide 8: Historical Cost Structure Comparison ($M)
HISTORICAL COST STRUCTURE COMPARISON ($M) $36 $35 $28 $28 4,834 $34 $43 $43 $45 $47 4,683 $43 Direct Origination Expense Commissions 4,532 $78 $79 Marketing $81 $82 $73 Other Interest Other G&A 4,250 $106 $109 4,188 Salaries $97 $97 $98 $16 FTEs $14 $16 $15 $17 $49 $44 $35 $36 $36 Volume Volume Volu
Slide 9: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) Portfolio @ 3/31/24 (3) 142 141 143 W.A. Coupon 3.48% $146 137 138 W.A. FICO (3) 736 140 W.A. LTV 72% $144 120 $142 W.A. Age (Mths) 30.8 100 DQ Rate $140 80 60D+ 1.0% $138 90D+ 0.8% 60 $136 Composition $134 40 GSE 66.0% Gov’t 26.7% 20 $132 Other 7
Slide 10: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity Overview ($M) MSR FV / Total Equity 3.1x 2.8x 2.5x 2.7x 2.4x $802 $721 $721 $4 $4 $661 $2 $604 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 $798 Debt Obligations, net to Total Equity $719 $717 $661 $604 3.6x 3.2x 2.7x 2.8x 2.9x Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Un
Slide 11: Q2 2024 Outlook
Q2 2024 OUTLOOK* Current Market Metric Low High Conditions • Higher interest rates adversely impacts home affordability and Pull-through Weighted borrower demand $4.5 $6.5 Rate Lock Volume ($bn) • Limited supply of new and resale homes adversely impacts homebuying activity Origination Volume ($bn) $
Slide 12: Appendix: Non-GAAP Reconciliations
APPENDIX: NON-GAAP RECONCILIATIONS
Slide 13: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 1Q’24 vs 1Q’24 vs $ in MM except units and % 1Q ‘24 4Q ’23 1Q ’23 4Q’23 1Q’23 Cash and cash equivalents $603.7 $660.7 $798.1 (8.6%) (24.4%) Loans held for sale, at fair value 2,300.1 2,132.9 2,039.4 7.8% 12.8% Servicing rights, at fair value 1,985.9 1,9
Slide 14: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 1Q ’24 4Q ‘23 1Q ‘23 Adjusted Revenue Total Net Revenue $222.8 $228.6 $207.9 Change in FV of Servicing Rights, Net of Hedge 8.1 22.8 18.3 Adjusted Total Revenue $230.9 $251.5 $226.2 Adjusted EBITDA (LBITDA) Net (Loss) Income ($71.5) ($59.8) ($91.7) Interest Ex
Slide 15: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) ($MM) 1Q ’24 4Q ’23 1Q ’23 Adjusted Net Income (Loss) Net Income (Loss) ($71.5) ($59.8) ($91.7) Adjustments to Income Taxes 9.8 7.8 13.3 Tax-Effected Net Income (Loss) (61.7) (52.0) (78.4) Change in FV of Servicing Rights, Net of Hedge 8.1 22.8 18.3 Stock-B