FOOTHILL RANCH, Calif.,
Feb. 18, 2021 /PRNewswire/
-- loanDepot, Inc. and its subsidiaries (NYSE: LDI)
(collectively, "loanDepot" or the "Company"), the innovative
consumer lending and real estate services provider that is using
its proprietary mello® technology to deliver best-in-class
experiences to its customers, today announced results for the
fourth quarter and year ended December 31,
2020.
loanDepot's assets are unlike any other lender in the
marketplace today:
– Diversified strategy: Integrated
at-scale refinance and purchase business ensures that loanDepot
thrives in any mortgage market. The Retail strategy has 2,300+
employee loan officers serving customers online and in local
markets nationwide. The Partner strategy has significant
relationships with some of the largest home builders, financial
institutions, real estate and mortgage brokers across the
nation.
– Data
and Analytics: loanDepot has harnessed the power of its data
science and proprietary AI and machine learning models,
dramatically widening the Company's top-of-funnel marketing reach,
gaining market share, significantly driving down customer
acquisition cost and increasing sales productivity.
– Brand: loanDepot has the
second-most recognized brand in the industry today and has
continued to invest in its brand strength through the "Home Means
Everything" national ad campaign and partnership with Major League
Baseball as its exclusive mortgage partner.
– Technology: loanDepot's proprietary
technology platform, mello®, is core to all operations, which
maximizes loan officer closings, reduces cycle times and improves
customer satisfaction. mello® also allows the Company to easily add
new products and services, whether organic or acquired.
"I'm incredibly proud of and humbled by our record-breaking 2020
performance and thank our team members for their passionate
commitment to our customers during an unprecedented year," said
Founder and CEO Anthony Hsieh.
"Customers gravitate to the loanDepot brand because we think and
do differently. We are able to efficiently and effectively serve
homeowners and future homeowners through our Retail and Partner
channels, with the best proprietary data science, AI, machine
learning and technology available, which ensures we are serving
customers the way they wish to be served through the most important
financial transaction of their lives. As we continue our growth
trajectory and expand our product and service offerings, we will do
so in a way that delivers satisfaction and value for our customers,
partners, team members and shareholders for decades to come."
Fourth Quarter Earnings Call
Management will host a
conference call and live webcast today at 11:00 a.m. ET on loanDepot's Investor Relations
website, investors.loandepot.com, following the release of its
earnings results.
Financial Summary
|
Three Months
Ended
|
|
Year
Ended
|
($ in thousands)
(Unaudited)
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
December
31,
2019
|
Rate lock
volume
|
$
|
49,711,270
|
|
|
$
|
49,280,386
|
|
|
$
|
20,347,563
|
|
|
$
|
160,984,531
|
|
|
$
|
75,262,459
|
|
Loan origination
volume
|
37,395,352
|
|
|
27,157,669
|
|
|
16,055,972
|
|
|
100,760,151
|
|
|
45,324,026
|
|
Gain on sale
margin
|
3.38
|
%
|
|
4.98
|
%
|
|
2.36
|
%
|
|
4.27
|
%
|
|
2.81
|
%
|
|
|
|
|
|
|
|
|
|
|
Financial
Results
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
1,298,394
|
|
|
$
|
1,368,930
|
|
|
$
|
415,292
|
|
|
$
|
4,312,174
|
|
|
$
|
1,337,131
|
|
Total
expense
|
750,433
|
|
|
640,014
|
|
|
401,116
|
|
|
2,296,816
|
|
|
1,304,460
|
|
Net income
|
547,170
|
|
|
728,349
|
|
|
16,213
|
|
|
2,013,110
|
|
|
34,420
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures(1)
|
|
|
|
|
|
|
|
|
|
Adjusted total
revenue
|
$
|
1,252,707
|
|
|
$
|
1,345,550
|
|
|
$
|
407,197
|
|
|
$
|
4,252,907
|
|
|
$
|
1,346,178
|
|
Adjusted net
income
|
375,711
|
|
|
524,819
|
|
|
4,675
|
|
|
1,461,617
|
|
|
31,885
|
|
Adjusted
EBITDA
|
530,364
|
|
|
745,499
|
|
|
29,499
|
|
|
2,084,536
|
|
|
124,005
|
|
|
(1) We believe Adjusted Total
Revenue, Adjusted EBITDA, and Adjusted Net Income provide useful
information to investors regarding our results of operations
because each measure assists both investors and management in
analyzing and benchmarking the performance and value of our
business. They facilitate company-to-company operating performance
comparisons by backing out potential differences caused by
variations in hedging strategies, changes in valuations, capital
structures (affecting net interest expense), taxation, the age and
book depreciation of facilities (affecting relative depreciation
expense) and the amortization of intangibles, which may vary for
different companies for reasons unrelated to operating performance,
as well as certain historical cost (benefit) items which may vary
for different companies for reasons unrelated to operating
performance. See "Non-GAAP Financial Measures" for a discussion of
how we define and calculate Adjusted Total Revenue, Adjusted EBITDA
and Adjusted Net Income.
|
Operational Results
- Record rate lock volume of $49.7
billion during the fourth quarter of 2020 resulted in
quarterly total revenue of $1.3
billion. Fourth quarter 2020 revenue declined by
$70.5 million, or 5%, from the third
quarter of 2020 due to gain on sale margins returning to a more
normalized level of 3.38% during the fourth quarter of 2020. For
the year ended December 31, 2020,
rate lock volume set a Company record at $161.0 billion resulting in total revenue of
$4.3 billion from gain on sale margin
of 4.27%.
- Loan origination volume for the fourth quarter of 2020 was also
a record at $37.4 billion, an
increase of $10.2 billion or 38% from
the third quarter of 2020. Loan origination volume for the year
ended December 31, 2020 totaled
$100.8 billion, an increase of 122%
from loan origination volume for the year ended December 31, 2019.
- Our Retail and Partner strategies delivered a record
$28.3 billion of purchase loan
originations during 2020, which represented an increase of 53% from
the prior year, while refinance loan originations of $72.5 billion represented an increase of over
170% for the year.
- Net income for the fourth quarter of 2020 decreased to
$547.2 million as compared to
$728.3 million in the prior quarter.
Adjusted net income for the fourth quarter of 2020 decreased to
$375.7 million as compared to
$524.8 million for the third quarter
of 2020. The quarter over quarter decreases were driven by the
decline in gain on sale margin and increased expenses from higher
loan origination volume. For the year ended December 31, 2020, net income totaled
$2.0 billion and adjusted net income
totaled $1.5 billion.
- Total expenses for the fourth quarter 2020 increased
$110.4 million, or 17% from the third
quarter 2020, due to higher direct expenses on record loan
originations, additional personnel and related expenses to support
the growth in our business and higher marketing costs as we
expanded our national brand campaign. During the fourth quarter of
2020, our team members grew by 15% to 9,892 compared to our 38%
growth in loan originations, which demonstrates our ability to
rapidly grow and improve efficiency.
- Disciplined and purposeful investments in the Company's
technology enabled an 8% decline in cost per loan for the full year
2020 as compared 2019. Our data driven marketing efforts and
servicing expertise resulted in a customer acquisition cost decline
of 28% year over year as well.
Other Highlights
- On February 11, 2021, the Company
completed its initial public offering. Since loanDepot did not have
any shares outstanding prior to this date, earnings per share
information was not determinable. As of February 11, 2021, the Company had 6,068,834 of
Class A shares outstanding, 179,431,851 of Class C shares
outstanding and 120,642,007 of Class D shares outstanding.
- During the fourth quarter of 2020, the Company donated
$2.0 million on behalf of our
employees to support individuals and families impacted by COVID-19
as well as to support several key charitable organizations. These
donations bring the total amount donated in 2020 to support
pandemic-relief and philanthropic efforts to $3.0 million.
- In February of 2021, we entered into a multi-year partnership
agreement with Major League Baseball wherein loanDepot was named
"Official Mortgage Provider" of Major League Baseball. This
partnership further expands our brand reach and reinforces our
brand promise to millions of MLB fans nationwide.
- We believe our position as the second most recognized mortgage
brand grew even stronger through our ongoing national television ad
campaign delivering over 7 billion household impressions from May
through December 2020. Our extensive
data analytics also allowed us to capitalize on the 1.6 million
average monthly website visits and 330 million online media
exposures during the fourth quarter of 2020.
Balance Sheet Highlights
|
|
|
|
|
|
|
|
%
Change
|
($ in
thousands)
(Unaudited)
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
Dec - 20
vs
Sep - 20
|
|
Dec - 20
vs.
Dec - 19
|
Cash and cash
equivalents
|
|
$
|
284,224
|
|
|
$
|
637,511
|
|
|
$
|
73,301
|
|
|
(55.4)
|
%
|
|
287.7
|
%
|
Loans held for sale,
at fair value
|
|
6,955,424
|
|
|
4,888,364
|
|
|
3,681,840
|
|
|
42.3
|
|
|
88.9
|
|
Servicing rights, at
fair value
|
|
1,127,866
|
|
|
780,451
|
|
|
447,478
|
|
|
44.5
|
|
|
152.0
|
|
Warehouse and other
lines of credit
|
|
6,577,429
|
|
|
4,601,062
|
|
|
3,466,567
|
|
|
43.0
|
|
|
89.7
|
|
Total
liabilities
|
|
9,236,615
|
|
|
7,017,792
|
|
|
4,576,626
|
|
|
31.6
|
|
|
101.8
|
|
Total
equity
|
|
1,656,613
|
|
|
1,633,521
|
|
|
375,885
|
|
|
1.4
|
|
|
340.7
|
|
Record quarterly originations drove an increase in loans held
for sale at December 31, 2020, which increased by 42% from the
prior quarter to $7.0 billion. The
balance on our warehouse lines of credit increased by 43% during
the quarter due to the increased origination activity. Total
funding capacity with our lending partners increased to
$8.1 billion at December 31,
2020 from $5.5 billion at
September 30, 2020. The increase of
$2.6 billion was due to the addition
of two new facilities with two and three year maturity dates as
well as increases to existing facilities. Available borrowing
capacity was $1.5 billion at
December 31, 2020.
Unrestricted cash and cash equivalents was $284.2 million at December 31, 2020. The
decrease in cash from September 30,
2020 was primarily due to earnings offset by tax
distributions of $71.1 million as
required under the Company's operating agreement and profit
distributions of $453.8 million as
allowed under the Company's operating agreement.
The fair value of mortgage servicing rights increased by 45%, or
$347.4 million during the fourth
quarter to a record $1.1 billion.
This increase was driven by $411.3
million of new additions, partially offset by runoff of
$80.0 million. During the fourth
quarter of 2020, servicing retained loan sales increased as a
result of the record level of loan originations.
Strategic Channel Overview
Our diverse origination
strategy ensures we can serve customers in the way they want to be
served, with the right mortgage professional, with the right
product, at the right price, at the right time. Complementing our
origination strategy is our servicing portfolio, which ensures we
can serve the customer through their entire mortgage journey.
Retail Channel
|
|
Three Months
Ended
|
|
Year
Ended
|
($ in thousands)
(Unaudited)
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
December
31,
2019
|
Volume
data:
|
|
|
|
|
|
|
Rate locks
|
|
$
|
40,066,201
|
|
|
$
|
40,903,946
|
|
|
$
|
15,854,996
|
|
|
$
|
132,448,124
|
|
|
$
|
59,116,290
|
|
Loan
originations
|
|
29,665,251
|
|
|
21,714,871
|
|
|
11,409,261
|
|
|
80,256,667
|
|
|
32,700,837
|
|
Gain on sale
margin
|
|
3.47
|
%
|
|
5.07
|
%
|
|
2.87
|
%
|
|
4.41
|
%
|
|
3.39
|
%
|
The Company employs more than 2,300 licensed mortgage loan
professionals who work in our Retail Channel that reach customers
through our organic marketing or their own relationships in either
our proprietary call centers or local in-market branches. During
the fourth quarter of 2020, our Retail Channel accounted for
$29.7 billion, or 79%, of our loan
originations. For the year ended December
31, 2020, our Retail Channel contributed $80.3 billion, or 80%, of loan originations.
Partner Channel
|
|
Three Months
Ended
|
|
Year
Ended
|
($ in thousands)
(Unaudited)
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
December
31,
2019
|
Volume
data:
|
|
|
|
|
|
|
Rate locks
|
|
$
|
9,645,069
|
|
|
$
|
8,376,440
|
|
|
$
|
4,492,567
|
|
|
$
|
28,536,407
|
|
|
$
|
16,146,169
|
|
Loan
originations
|
|
7,730,101
|
|
|
5,442,799
|
|
|
4,646,711
|
|
|
20,503,484
|
|
|
12,623,189
|
|
Gain on sale
margin
|
|
2.58
|
%
|
|
4.06
|
%
|
|
1.19
|
%
|
|
3.06
|
%
|
|
1.16
|
%
|
Our Partner Channel originates loans through our network of
approved mortgage brokers, as well as a series of exclusive joint
ventures with some of the nation's largest homebuilders and
depositories, who market our broad spectrum of products utilizing
our innovate mello® technology platform to efficiently underwrite,
process and fund mortgage loans, while delivering an exceptional
customer experience. During the fourth quarter of 2020, our Partner
Channel accounted for $7.7 billion,
or 21%, of our loan originations. For the year ended December 31, 2020, our Partner Channel
contributed $20.5 billion, or 20%, of
our loan originations.
The returns were complemented by $3.7
million of income recorded from our joint ventures for the
fourth quarter of 2020 and $10.4
million for the year ended December
31, 2020, reflecting the wide variety of industry partners
we work with in the channel.
We entered into two new joint venture relationships with home
builders during the second half of 2020 and added one new joint
venture relationship in the first quarter of 2021 with a federally
chartered savings bank offering banking and insurance services.
Servicing
|
|
|
|
|
|
|
|
%
Change
|
Servicing
Portfolio Data:
($ in
thousands)
(Unaudited)
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Dec - 20
vs
Sep - 20
|
|
Dec - 20
vs.
Dec - 19
|
Total servicing
portfolio
(unpaid principal balance)
|
|
$
|
102,931,258
|
|
|
$
|
77,171,998
|
|
|
$
|
36,336,126
|
|
|
33.4
|
%
|
|
183.3
|
%
|
Total servicing
portfolio (units)
|
|
342,600
|
|
|
272,701
|
|
|
148,750
|
|
|
25.6
|
|
|
130.3
|
|
|
|
|
|
|
|
|
|
|
|
|
60+ days delinquent
($)
|
|
$
|
2,162,585
|
|
|
$
|
2,073,862
|
|
|
$
|
383,272
|
|
|
4.3
|
%
|
|
464.2
|
%
|
60+ days delinquent
(%)
|
|
2.1
|
%
|
|
2.7
|
%
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing rights,
net
|
|
$
|
1,124,302
|
|
|
$
|
776,993
|
|
|
$
|
444,443
|
|
|
44.7
|
|
|
153.0
|
|
The unpaid principal balance of our servicing portfolio
increased $66.6 billion, or 183%, to
$102.9 billion compared to
$36.3 billion as of December 31, 2019. The fourth quarter of 2020
comprised $25.8 billion, or 39% of
the total $66.6 billion increase
throughout the year, driven by an increase in servicing-retained
loan sales. We continued to invest in growing our high quality
servicing portfolio and not only increased total loan originations
but also the percentage of our servicing customers who chose to
refinance with us. For the fourth quarter of 2020, our organic
refinance consumer direct recapture rate was 66%, highlighting the
efficacy of our marketing efforts and the strength of our customer
relationships.
Servicing income increased $67.5
million, or 57% to $185.9
million for the year compared to $118.4 million for 2019, and increased
$16.0 million, or 33% to $64.4 million for the fourth quarter of 2020
compared to $48.4 million for the
third quarter of 2020.
As of December 31, 2020,
approximately 2.4%, or $2.4 billion,
of our servicing portfolio was in active forbearance. This
represents a decline from 3.4%, or $2.6
billion, at the end of the third quarter of 2020.
Guidance
We expect analyst research to be published
and coverage of loanDepot, Inc. to begin in the near future and
anticipate providing updated guidance on first quarter 2021
performance after those publications.
Consolidated Statements of Operations
($ in
thousands)
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
44,730
|
|
|
$
|
31,453
|
|
|
$
|
41,076
|
|
|
$
|
142,879
|
|
|
$
|
127,569
|
|
Interest
expense
|
(42,562)
|
|
|
(29,553)
|
|
|
(40,794)
|
|
|
(131,443)
|
|
|
(130,344)
|
|
Net interest
income
|
2,168
|
|
|
1,900
|
|
|
282
|
|
|
11,436
|
|
|
(2,775)
|
|
|
|
|
|
|
|
|
|
|
|
Gain on origination
and sale of loans, net
|
1,172,704
|
|
|
1,279,431
|
|
|
337,798
|
|
|
4,046,159
|
|
|
1,125,853
|
|
Origination income,
net
|
91,253
|
|
|
71,740
|
|
|
41,651
|
|
|
258,807
|
|
|
149,500
|
|
Servicing fee
income
|
64,375
|
|
|
48,406
|
|
|
33,396
|
|
|
185,895
|
|
|
118,418
|
|
Change in fair value
of servicing rights, net
|
(68,389)
|
|
|
(57,603)
|
|
|
(19,495)
|
|
|
(284,521)
|
|
|
(119,546)
|
|
Other
income
|
36,283
|
|
|
25,056
|
|
|
21,660
|
|
|
94,398
|
|
|
65,681
|
|
Total net
revenues
|
1,298,394
|
|
|
1,368,930
|
|
|
415,292
|
|
|
4,312,174
|
|
|
1,337,131
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Personnel
expense
|
508,638
|
|
|
441,818
|
|
|
239,308
|
|
|
1,531,371
|
|
|
765,256
|
|
Marketing and
advertising expense
|
90,709
|
|
|
60,435
|
|
|
54,081
|
|
|
264,337
|
|
|
187,880
|
|
Direct origination
expense
|
36,127
|
|
|
33,465
|
|
|
31,743
|
|
|
124,754
|
|
|
93,531
|
|
General and
administrative expense
|
51,146
|
|
|
52,372
|
|
|
32,786
|
|
|
171,712
|
|
|
100,493
|
|
Occupancy
expense
|
9,826
|
|
|
9,997
|
|
|
9,520
|
|
|
39,262
|
|
|
37,209
|
|
Depreciation and
amortization
|
8,547
|
|
|
8,585
|
|
|
10,116
|
|
|
35,669
|
|
|
37,400
|
|
Subservicing
expense
|
29,556
|
|
|
22,820
|
|
|
12,660
|
|
|
81,710
|
|
|
41,397
|
|
Other interest
expense
|
15,884
|
|
|
10,522
|
|
|
10,902
|
|
|
48,001
|
|
|
41,294
|
|
Total
expenses
|
750,433
|
|
|
640,014
|
|
|
401,116
|
|
|
2,296,816
|
|
|
1,304,460
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
547,961
|
|
|
728,916
|
|
|
14,176
|
|
|
2,015,358
|
|
|
32,671
|
|
Income tax expense
(benefit)
|
791
|
|
|
567
|
|
|
(2,037)
|
|
|
2,248
|
|
|
(1,749)
|
|
Net income
|
547,170
|
|
|
728,349
|
|
|
16,213
|
|
|
2,013,110
|
|
|
34,420
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
547,170
|
|
|
728,349
|
|
|
16,213
|
|
|
2,013,110
|
|
|
34,420
|
|
Net income
attributable to loanDepot, Inc.
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
($ in
thousands)
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
284,224
|
|
|
$
|
637,511
|
|
|
$
|
73,301
|
|
Restricted
cash
|
204,465
|
|
|
70,387
|
|
|
44,195
|
|
Accounts receivable,
net
|
138,122
|
|
|
118,400
|
|
|
121,046
|
|
Loans held for sale,
at fair value
|
6,955,424
|
|
|
4,888,364
|
|
|
3,681,840
|
|
Derivative assets, at
fair value
|
647,939
|
|
|
722,149
|
|
|
131,228
|
|
Servicing rights, at
fair value
|
1,127,866
|
|
|
780,451
|
|
|
447,478
|
|
Property and
equipment, net
|
85,002
|
|
|
76,250
|
|
|
80,897
|
|
Operating lease
right-of-use asset
|
66,433
|
|
|
56,449
|
|
|
61,693
|
|
Prepaid expenses and
other assets
|
77,241
|
|
|
57,610
|
|
|
52,653
|
|
Loans eligible for
repurchase
|
1,246,158
|
|
|
1,184,015
|
|
|
197,812
|
|
Investments in joint
ventures
|
17,528
|
|
|
16,773
|
|
|
17,030
|
|
Goodwill and other
intangible assets, net
|
42,826
|
|
|
42,954
|
|
|
43,338
|
|
Total
assets
|
$
|
10,893,228
|
|
|
$
|
8,651,313
|
|
|
$
|
4,952,511
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Warehouse and other
lines of credit
|
$
|
6,577,429
|
|
|
$
|
4,601,062
|
|
|
$
|
3,466,567
|
|
Accounts payable and
accrued expenses
|
442,928
|
|
|
375,957
|
|
|
196,102
|
|
Derivative
liabilities, at fair value
|
168,169
|
|
|
59,432
|
|
|
9,977
|
|
Liability for loans
eligible for repurchase
|
1,246,158
|
|
|
1,184,015
|
|
|
197,812
|
|
Operating lease
liability
|
86,023
|
|
|
72,590
|
|
|
80,257
|
|
Financing lease
obligations
|
3,442
|
|
|
18,258
|
|
|
33,816
|
|
Debt obligations,
net
|
712,466
|
|
|
706,478
|
|
|
592,095
|
|
Total
liabilities
|
9,236,615
|
|
|
7,017,792
|
|
|
4,576,626
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Noncontrolling
interest
|
1,656,613
|
|
|
1,633,521
|
|
|
375,885
|
|
Total liabilities and
equity
|
$
|
10,893,228
|
|
|
$
|
8,651,313
|
|
|
$
|
4,952,511
|
|
Loan Origination and Sales Data
($ in thousands)
(Unaudited)
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
December
31,
2019
|
Loan origination
volume by type:
|
|
|
|
|
|
|
|
|
|
|
Conventional
conforming
|
|
$
|
31,389,431
|
|
|
$
|
22,034,957
|
|
|
$
|
11,005,102
|
|
|
$
|
79,960,680
|
|
|
$
|
29,535,192
|
|
FHA/VA/USDA
|
|
5,013,338
|
|
|
4,532,290
|
|
|
3,934,082
|
|
|
17,584,601
|
|
|
11,599,805
|
|
Jumbo
|
|
591,739
|
|
|
209,167
|
|
|
784,008
|
|
|
1,821,700
|
|
|
3,154,982
|
|
Other
|
|
400,844
|
|
|
381,255
|
|
|
332,780
|
|
|
1,393,170
|
|
|
1,034,047
|
|
Total
|
|
$
|
37,395,352
|
|
|
$
|
27,157,669
|
|
|
$
|
16,055,972
|
|
|
$
|
100,760,151
|
|
|
$
|
45,324,026
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan origination
volume by channel:
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
29,665,251
|
|
|
$
|
21,714,870
|
|
|
$
|
11,409,261
|
|
|
$
|
80,256,666
|
|
|
$
|
32,700,837
|
|
Partnership
|
|
7,730,101
|
|
|
5,442,799
|
|
|
4,646,711
|
|
|
20,503,485
|
|
|
12,623,189
|
|
Total
|
|
$
|
37,395,352
|
|
|
$
|
27,157,669
|
|
|
$
|
16,055,972
|
|
|
$
|
100,760,151
|
|
|
$
|
45,324,026
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan origination
volume by purpose:
|
|
|
|
|
|
|
|
|
|
|
Purchase
|
|
$
|
9,813,921
|
|
|
$
|
8,546,295
|
|
|
$
|
5,298,068
|
|
|
$
|
28,301,076
|
|
|
$
|
18,513,555
|
|
Refinance
|
|
27,581,431
|
|
|
18,611,374
|
|
|
10,757,904
|
|
|
72,459,075
|
|
|
26,810,471
|
|
Total
|
|
$
|
37,395,352
|
|
|
$
|
27,157,669
|
|
|
$
|
16,055,972
|
|
|
$
|
100,760,151
|
|
|
$
|
45,324,026
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
sold:
|
|
|
|
|
|
|
|
|
|
|
Servicing
retained
|
|
$
|
33,989,511
|
|
|
$
|
24,402,497
|
|
|
$
|
7,967,753
|
|
|
$
|
87,186,118
|
|
|
$
|
20,360,739
|
|
Servicing
released
|
|
1,394,979
|
|
|
1,195,252
|
|
|
7,382,863
|
|
|
10,353,541
|
|
|
23,134,883
|
|
Total
|
|
$
|
35,384,490
|
|
|
$
|
25,597,749
|
|
|
$
|
15,350,616
|
|
|
$
|
97,539,659
|
|
|
$
|
43,495,622
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan origination
margins:
|
|
|
|
|
|
|
|
|
|
|
Gain on sale
margin
|
|
3.38
|
%
|
|
4.98
|
%
|
|
2.36
|
%
|
|
4.27
|
%
|
|
2.81
|
%
|
Fourth Quarter Earnings Call
Management will host a
conference call and live webcast today at 11:00 a.m. ET on loanDepot's Investor Relations
website, investors.loandepot.com, following the release of its
earnings results.
The conference call can also be accessed by dialing 833-312-1365
(domestic) or 236-712-2485 (international) using pin number
3784967. Please call five minutes in advance to ensure that you are
connected prior to the call. A replay of the webcast and transcript
will also be made available on the Investor Relations website
following the conclusion of the event.
For more information about loanDepot, please visit the company's
Investor Relations website: investors.loandepot.com.
Non-GAAP Financial Measures
To provide investors with
information in addition to our results as determined by GAAP, we
disclose Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net
Income as non-GAAP measures. We believe Adjusted Total Revenue,
Adjusted EBITDA, and Adjusted Net Income provide useful information
to investors regarding our results of operations because each
measure assists both investors and management in analyzing and
benchmarking the performance and value of our business. They
facilitate company-to-company operating performance comparisons by
backing out potential differences caused by variations in hedging
strategies, changes in valuations, capital structures (affecting
net interest expense), taxation, the age and book depreciation of
facilities (affecting relative depreciation expense) and the
amortization of intangibles, which may vary for different companies
for reasons unrelated to operating performance, as well as certain
historical cost (benefit) items which may vary for different
companies for reasons unrelated to operating performance. These
measures are not financial measures calculated in accordance with
GAAP and should not be considered as a substitute for revenue, net
income, or any other operating performance measure calculated in
accordance with GAAP, and may not be comparable to a similarly
titled measure reported by other companies.
We define "Adjusted Total Revenue" as total revenues, net of the
change in fair value of mortgage servicing rights ("MSRs") and the
related hedging gains and losses. We define "Adjusted EBITDA" as
earnings before interest expense and amortization of debt issuance
costs on non-funding debt, income taxes, depreciation and
amortization, change in fair value of MSRs, net of the related
hedging gains and losses, change in fair value of contingent
consideration, stock compensation expense and management fees, and
IPO related expense. We define "Adjusted Net Income" as
tax-effected earnings before stock compensation expense and
management fees, IPO expense, and the change in fair value of MSRs,
net of the related hedging gains and losses, and the tax effects of
those adjustments. Adjustments for income taxes are made to reflect
LD Holdings historical results of operations on the basis that it
was taxed as a corporation under the Internal Revenue Code, and
therefore subject to U.S. federal, state and local income taxes. We
exclude from each of these non-GAAP measures the change in fair
value of MSRs and related hedging gains and losses as this
represents a non-cash non-realized adjustment to our total
revenues, reflecting changes in assumptions including discount
rates and prepayment speed assumptions, mostly due to changes in
market interest rates, which is not indicative of our performance
or results of operations. We also exclude stock compensation
expense, which is a non-cash expense, management fees and IPO
expenses as management does not consider these costs to be
indicative of our performance or results of operations. Adjusted
EBITDA includes interest expense on funding facilities, which are
recorded as a component of "net interest income (expense)", as
these expenses are a direct operating expense driven by loan
origination volume. By contrast, interest and amortization expense
on non-funding debt is a function of our capital structure and is
therefore excluded from Adjusted EBITDA.
Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income
have limitations as analytical tools, and you should not consider
them in isolation or as a substitute for analysis of our results as
reported under U.S. GAAP. Some of these limitations are:
- they do not reflect every cash expenditure, future requirements
for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect the significant interest
expense or the cash requirements necessary to service interest or
principal payment on our debt;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced or require improvements in the future, and Adjusted Total
Revenue, Adjusted Net Income, and Adjusted EBITDA do not reflect
any cash requirement for such replacements or improvements;
and
- they are not adjusted for all non-cash income or expense items
that are reflected in our statements of cash flows.
Because of these limitations, Adjusted Total Revenue, Adjusted
EBITDA, and Adjusted Net Income are not intended as alternatives to
total revenue, net income (loss), or net income attributable to the
Company or as an indicator of our operating performance and should
not be considered as measures of discretionary cash available to us
to invest in the growth of our business or as measures of cash that
will be available to us to meet our obligations. We compensate for
these limitations by using Adjusted Revenue, Adjusted Net Income,
and Adjusted EBITDA along with other comparative tools, together
with U.S. GAAP measurements, to assist in the evaluation of
operating performance. See below for a reconciliation of these
non-GAAP measures to their most comparable U.S. GAAP measures.
Reconciliation of
Total Revenue to Adjusted Total Revenue
($ in
thousands)
(Unaudited)
|
|
Three Months
Ended
|
|
Year Ended
December 31,
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
2020
|
|
2019
|
Total net
revenue
|
|
$
|
1,298,394
|
|
|
$
|
1,368,930
|
|
|
$
|
415,292
|
|
|
$
|
4,312,174
|
|
|
$
|
1,337,131
|
|
Change in fair value
of servicing rights(1)
|
|
(16,355)
|
|
|
2,930
|
|
|
(13,678)
|
|
|
95,395
|
|
|
51,639
|
|
Net losses (gains)
from derivatives hedging servicing rights
|
|
4,525
|
|
|
1,981
|
|
|
2,383
|
|
|
(14,490)
|
|
|
(20,974)
|
|
Realized and
unrealized (gains) losses from derivative assets and
liabilities(2)
|
|
(33,857)
|
|
|
(28,291)
|
|
|
3,200
|
|
|
(140,172)
|
|
|
(21,618)
|
|
Change in fair value
of servicing rights net of hedging gains and
losses(3)
|
|
(45,687)
|
|
|
(23,380)
|
|
|
(8,095)
|
|
|
(59,267)
|
|
|
9,047
|
|
Adjusted total
revenue
|
|
$
|
1,252,707
|
|
|
$
|
1,345,550
|
|
|
$
|
407,197
|
|
|
$
|
4,252,907
|
|
|
$
|
1,346,178
|
|
|
(1) Included in
change in fair value of servicing rights, net in the Company's
consolidated statements of operations.
|
(2) Included in gain
on origination and sale of loans, net in the Company's consolidated
statements of operations, as shown below:
|
($ in
thousands)
(Unaudited)
|
|
Three Months
Ended
|
|
Year Ended
December 31,
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
2020
|
|
2019
|
Unrealized (losses)
gains from derivative assets and liabilities
|
|
$
|
(198,710)
|
|
|
$
|
201,003
|
|
|
$
|
(37,622)
|
|
|
$
|
320,756
|
|
|
$
|
85,679
|
|
Less: Unrealized
(losses) gains from derivative assets and liabilities—IRLC and
LHFS
|
|
(209,767)
|
|
|
195,383
|
|
|
(28,830)
|
|
|
288,325
|
|
|
95,578
|
|
Unrealized gains
(losses) from derivative assets and liabilities—servicing
rights
|
|
11,057
|
|
|
5,620
|
|
|
(8,792)
|
|
|
32,431
|
|
|
(9,899)
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized (losses) gains
from derivative assets and liabilities
|
|
(78,226)
|
|
|
(162,191)
|
|
|
20,720
|
|
|
(450,254)
|
|
|
(128,634)
|
|
Less: Realized (losses)
gains from derivative assets and liabilities—IRLC and
LHFS
|
|
(101,027)
|
|
|
(184,862)
|
|
|
15,128
|
|
|
(557,995)
|
|
|
(160,151)
|
|
Realized gains
(losses) from derivative assets and
liabilities—servicing rights
|
|
22,801
|
|
|
22,671
|
|
|
5,592
|
|
|
107,741
|
|
|
31,517
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and
unrealized gains (losses) from derivative assets and liabilities -
servicing rights
|
|
$
|
33,857
|
|
|
$
|
28,291
|
|
|
$
|
(3,200)
|
|
|
$
|
140,172
|
|
|
$
|
21,618
|
|
|
(3) Represents the
change in the fair value of servicing rights attributable to
changes in assumptions, net of hedging gains and losses.
|
Reconciliation of
Net Income to Adjusted Net Income
($ in
thousands)
(Unaudited)
|
|
Three Months
Ended
|
|
Year Ended
December 31,
|
|
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
2020
|
|
2019
|
|
|
Net income
|
|
$
|
547,170
|
|
|
$
|
728,349
|
|
|
$
|
16,213
|
|
|
$
|
2,013,110
|
|
|
$
|
34,420
|
|
|
|
Income tax expense
(benefit)
|
|
791
|
|
|
567
|
|
|
(2,037)
|
|
|
2,248
|
|
|
(1,749)
|
|
|
|
Income before
taxes
|
|
547,961
|
|
|
728,916
|
|
|
14,176
|
|
|
2,015,358
|
|
|
32,671
|
|
|
|
Adjustments to income
taxes(1)
|
|
141,040
|
|
|
187,616
|
|
|
3,649
|
|
|
518,733
|
|
|
8,410
|
|
|
|
Tax-effected net
income
|
|
406,921
|
|
|
541,300
|
|
|
10,527
|
|
|
1,496,625
|
|
|
24,261
|
|
|
|
Change in fair value
of servicing rights, net of hedging gains and
losses(2)
|
|
(45,687)
|
|
|
(23,380)
|
|
|
(8,095)
|
|
|
(59,267)
|
|
|
9,047
|
|
|
|
Stock compensation
expense and management fees
|
|
1,099
|
|
|
1,186
|
|
|
215
|
|
|
9,565
|
|
|
1,219
|
|
|
|
IPO
expenses
|
|
2,560
|
|
|
—
|
|
|
—
|
|
|
2,560
|
|
|
—
|
|
|
|
Tax effect of
adjustments(3)
|
|
10,818
|
|
|
5,713
|
|
|
2,028
|
|
|
12,134
|
|
|
(2,642)
|
|
|
|
Adjusted net
income
|
|
$
|
375,711
|
|
|
$
|
524,819
|
|
|
$
|
4,675
|
|
|
$
|
1,461,617
|
|
|
$
|
31,885
|
|
|
|
|
(1) loanDepot, Inc.
is subject to federal, state and local income taxes. Adjustments to
income tax (benefit) reflect the effective income tax rates
below:
|
|
|
Three Months
Ended
|
|
Year Ended
December 31,
|
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
2020
|
|
2019
|
|
Statutory U.S. federal
income tax rate
|
|
21.00
|
%
|
|
21.00
|
%
|
|
21.00
|
%
|
|
21.00
|
%
|
|
21.00
|
%
|
|
State and local income
taxes (net of federal benefit)
|
|
4.74
|
%
|
|
4.74
|
%
|
|
4.74
|
%
|
|
4.74
|
%
|
|
4.74
|
%
|
|
Effective income tax
rate
|
|
25.74
|
%
|
|
25.74
|
%
|
|
25.74
|
%
|
|
25.74
|
%
|
|
25.74
|
%
|
|
|
(2) Amounts
represent the change in the fair value of servicing rights
attributable to changes in assumptions, net of hedging gains and
losses.
|
(3) Amounts represent
the income tax effect of (a) change in fair value of servicing
rights, net of hedging gains and losses, (b) stock compensation
expense and management fees, and (c) IPO expense at the
aforementioned effective income tax rates.
|
Reconciliation of
Net Income to Adjusted EBITDA
($ in
thousands)
(Unaudited)
|
|
Three Months
Ended
|
|
Year Ended
December 31,
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
2020
|
|
2019
|
Net income
|
|
$
|
547,170
|
|
|
$
|
728,349
|
|
|
$
|
16,213
|
|
|
$
|
2,013,110
|
|
|
$
|
34,420
|
|
Interest expense -
non-funding debt (1)
|
|
15,884
|
|
|
10,522
|
|
|
10,902
|
|
|
48,001
|
|
|
41,294
|
|
Income tax expense
(benefit)
|
|
791
|
|
|
567
|
|
|
(2,037)
|
|
|
2,248
|
|
|
(1,749)
|
|
Depreciation and
amortization
|
|
8,547
|
|
|
8,585
|
|
|
10,116
|
|
|
35,669
|
|
|
37,400
|
|
Change in fair value of
servicing rights, net of
hedging gains and
losses(2)
|
|
(45,687)
|
|
|
(23,380)
|
|
|
(8,095)
|
|
|
(59,267)
|
|
|
9,047
|
|
Change in fair value -
contingent consideration
|
|
—
|
|
|
19,670
|
|
|
2,185
|
|
|
32,650
|
|
|
2,374
|
|
Stock compensation
expense and management fees
|
|
1,099
|
|
|
1,186
|
|
|
215
|
|
|
9,565
|
|
|
1,219
|
|
IPO expense
|
|
2,560
|
|
|
—
|
|
|
—
|
|
|
2,560
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
530,364
|
|
|
$
|
745,499
|
|
|
$
|
29,499
|
|
|
$
|
2,084,536
|
|
|
$
|
124,005
|
|
|
(1) Represents other
interest expense, which includes amortization of debt issuance
costs, in the Company's consolidated statement of
operations.
|
(2) Represents the
change in the fair value of servicing rights attributable to
changes in assumptions, net of hedging gains and losses.
|
Forward-Looking Statements
This press release may
contain "forward-looking statements," which reflect loanDepot's
current views with respect to, among other things, its operations
and financial performance. You can identify these statements by the
use of words such as "outlook," "potential," "continue," "may,"
"seek," "approximately," "predict," "believe," "expect," "plan,"
"intend," "estimate" or "anticipate" and similar expressions or the
negative versions of these words or comparable words, as well as
future or conditional verbs such as "will," "should," "would" and
"could." These forward-looking statements are based on current
available operating, financial, economic and other information, and
are not guarantees of future performance and are subject to risks,
uncertainties and assumptions, including the risks in the "Risk
Factors" section of loanDepot, Inc.'s Registration Statement on
Form S-1, dated February 9, 2021,
which are difficult to predict. Therefore, current plans,
anticipated actions, financial results, as well as the anticipated
development of the industry, may differ materially from what is
expressed or forecasted in any forward-looking statement. loanDepot
does not undertake any obligation to publicly update or revise any
forward-looking statement to reflect future events or
circumstances, except as required by applicable law.
About loanDepot
loanDepot is a contemporary financial
services company dedicated to delivering a best-in-class experience
to its mortgage purchase and refinance customers. Founded in 2010,
loanDepot offers a diversified network of direct-to-consumer,
in-market, and partner business channels, uniquely positioning it
to serve a wide range of customers. Headquartered in Southern California, the Company has funded
more than $300 billion since its
founding and currently ranks as the second largest retail nonbank
lender and one of the leading retail mortgage lenders in
the United States. Committed to
serving the communities in which its team members live and work,
loanDepot has donated millions of dollars to support a variety of
local, regional and national philanthropic efforts, most recently
giving more than $2.5 million to help
with COVID-related efforts for first responders, healthcare
workers, individuals and families nationwide. The Company also is a
founding sponsor of War Heroes on Water, which supports ongoing
therapeutic healing services for combat-wounded veterans
nationwide.
Investor Relations Contact:
Abe Gutierrez
Vice President, Investor Relations
(949) 860-8215
ir@loandepot.com
or
Nicole Carrillo
Executive Vice President, Chief Accounting Officer
(949) 575-5187
ir@loandepot.com
Media Contact:
Lori
Wildrick
Vice President, Communications
(949) 330-8791
lwildrick@loandepot.com
LDI-IR
View original content to download
multimedia:http://www.prnewswire.com/news-releases/loandepot-announces-fourth-quarter-and-full-year-2020-financial-results-301230892.html
SOURCE loanDepot, Inc.