loanDepot(US:LDI)2023-11-08 16:00Financial Performance - Net loss for the three months ended September 30, 2023, was $34,262 thousand, compared to a net loss of $137,482 thousand for the same period in 2022, showing a 75% improvement year-over-year [16]. - The company reported a net loss of $34.262 million for the period ending September 30, 2023, compared to a net loss of $137.482 million for the same period in the previous year, indicating an improvement in financial performance [20]. - For the nine months ended September 30, 2023, loanDepot reported a net loss of $175,743,000, a decrease from a net loss of $452,623,000 in the same period of 2022, representing a 61% improvement [25]. - The company reported a net loss of $175.7 million for the nine months ended September 30, 2023, a decrease of $276.9 million or 61.2% from a net loss of $452.6 million in 2022 [171]. - For the three months ended September 30, 2023, the net loss attributable to loanDepot, Inc. was $16.6 million, compared to a net loss of $60.1 million for the same period in 2022, representing a decrease of 72.3% [113]. Revenue and Income - Total net revenues for the nine months ended September 30, 2023, were $745,395 thousand, down from $1,086,141 thousand in the same period of 2022, reflecting a decrease of approximately 31% [16]. - Total net revenues for the three months ended September 30, 2023, were $265.7 million, a decrease of $8.5 million or 3.1% from $274.2 million in 2022 [157]. - Gain on origination and sale of loans, net, decreased by $7.5 million or 4.8% to $148.8 million for the three months ended September 30, 2023, compared to $156.3 million in 2022 [160]. - The company reported total net gains from the origination and sale of loans, net of $411,336 for the nine months ended September 30, 2023, down from $665,993 for the same period in 2022 [58]. - Servicing fee income increased by $5.2 million or 4.6% to $118.8 million for the three months ended September 30, 2023, compared to $113.5 million in 2022 [157]. Assets and Liabilities - Total assets decreased to $6,078,529 thousand as of September 30, 2023, down from $6,609,934 thousand at December 31, 2022, representing a decline of approximately 8% [13]. - Total liabilities decreased to $5,309,594 thousand as of September 30, 2023, from $5,688,461 thousand at December 31, 2022, a reduction of approximately 7% [13]. - The total equity decreased to $768,935 thousand as of September 30, 2023, down from $921,473 thousand at December 31, 2022, reflecting a decline of approximately 17% [13]. - The company’s total liabilities as of September 30, 2023, were $3,154,525,000 after netting arrangements [70]. - The balance of loans held for sale at fair value as of September 30, 2023, was $2,070,748, a decrease from $2,373,427 as of December 31, 2022 [57]. Expenses - Personnel expenses for the three months ended September 30, 2023, were $141,432 thousand, down 35% from $218,819 thousand in the same period of 2022 [16]. - Total expenses decreased by $652.3 million or 40.7% to $949.8 million for the nine months ended September 30, 2023, compared to $1.6 billion in 2022 [171]. - The company achieved a $130.0 million decrease in total expenses for the three months ended September 30, 2023, primarily due to volume-related declines and optimization efforts [157]. - Loan origination broker fees expense increased to $34.4 million for the three months ended September 30, 2023, compared to $31.9 million in the same period of 2022, indicating an increase of 7.8% [121]. - The company reported stock-based compensation expenses of $3.940 million for the period ending September 30, 2023 [20]. Stock and Shareholder Information - The company reported a basic loss per share of $0.09 for the three months ended September 30, 2023, compared to a loss of $0.37 per share in the same period of 2022 [16]. - The number of common shares outstanding increased to 79,765,047 as of September 30, 2023, up from 67,976,067 shares as of September 30, 2022, representing a growth of approximately 17% [20]. - The balance of common stock outstanding as of September 30, 2023, was 79,765,047 shares, an increase from 72,497,011 shares at the end of December 31, 2022 [23]. - The basic loss per share for Class A and Class D common stock was $(0.09) for the three months ended September 30, 2023, compared to $(0.37) for the same period in 2022, indicating a 75.7% improvement [113]. - The weighted average shares outstanding for basic calculations increased to 175,962,804 for the three months ended September 30, 2023, from 162,464,369 in the same period of 2022, reflecting a 8.5% increase [113]. Loan Originations and Sales - The company experienced a significant decrease in loan originations, totaling $17,097,155,000 for the nine months ended September 30, 2023, compared to $46,842,973,000 in 2022, reflecting a decline of approximately 63% [25]. - Total loan originations for the three months ended September 30, 2023, were $6.083 billion, a decrease from $9.850 billion in the same period of 2022 [153]. - Proceeds from sales of loans were $17,777,518,000 for the nine months ended September 30, 2023, down from $52,732,911,000 in 2022, indicating a decrease of about 66% [25]. - The company originated mortgage loans in California, which accounted for approximately 17% of total loan originations for the nine months ended September 30, 2023 [39]. - The pull-through weighted gain on sale margin increased to 2.93% for the three months ended September 30, 2023, compared to 2.03% in the same period of 2022 [153]. Market Conditions and Economic Factors - The Federal Reserve raised the Federal Funds rate by 5.25 percentage points since the beginning of 2022, impacting mortgage origination volumes, which are expected to decrease by 29% year-over-year to $1.6 trillion in 2023 [145]. - The average cost of warehouse lines increased by 342 basis points, while the average yield on loans held for sale (LHFS) increased by 111 basis points [158]. - Net interest income decreased due to higher cost of funds, with average cost of warehouse lines increasing by 433 basis points and average yield on loans held for sale (LHFS) increasing by 217 basis points [172]. - The company anticipates that its cash on hand and liquidity sources will be sufficient to maintain operations and fund loan originations for the next twelve months [191]. - The company was in full compliance with all financial covenants as of September 30, 2023, ensuring sufficient flexibility to operate and obtain necessary financing [192].