loanDepot(LDI) - 2022 Q1 - Quarterly Report

Financial Performance - Total net revenues for Q1 2022 were $503.3 million, a decrease of 61.8% compared to $1.32 billion in Q1 2021[16] - The company reported a net loss of $91.3 million for Q1 2022, compared to a net income of $427.9 million in Q1 2021[16] - For the three months ended March 31, 2022, the net loss was $91.318 million compared to a net income of $427.853 million for the same period in 2021[22] - The company reported a net loss attributable to loanDepot, Inc. of $(34.741) million for the three months ended March 31, 2022[146] - Total revenue for the three months ended March 31, 2022, was $503.3 million, a decrease of 61.8% compared to $1.3 billion for the same period in 2021[181] - Net loss attributable to loanDepot, Inc. was $34,741,000, compared to a net income of $44,875,000 in the previous year, marking a decline of 177.4%[187] Assets and Liabilities - Total assets decreased to $10.64 billion as of March 31, 2022, down from $11.81 billion at the end of 2021[13] - Total liabilities were $9.13 billion, a reduction from $10.18 billion at the end of 2021[13] - The company’s total equity decreased to $1.51 billion as of March 31, 2022, down from $1.63 billion at the end of 2021[13] - The balance of common stock at March 31, 2022, was $1.511 billion, reflecting a decrease from the previous balance[19] - The company’s total liabilities at fair value were $121.20 million as of March 31, 2022, with derivative liabilities contributing significantly[48] Loan Originations and Sales - The company originated loans totaling $21.374 billion, down from $41.402 billion in the same quarter of the previous year[22] - Proceeds from sales of loans were $22.948 billion, compared to $40.381 billion in the prior year[22] - The company originated mortgage loans for properties in California, which accounted for approximately 25% of total loan originations in Q1 2022[39] - Loan originations totaled $21.6 billion for the three months ended March 31, 2022, down 47.0% from $41.5 billion in the same period in 2021[181] - The total number of loan originations (units) decreased to 64,951 in Q1 2022 from 111,400 in Q1 2021, a decline of 41.7%[181] Expenses and Compensation - Personnel expenses decreased to $346.0 million in Q1 2022, down 42.5% from $603.7 million in Q1 2021[16] - Stock-based compensation expense for the quarter was $2.309 million, a decrease from $59.817 million in the same period last year[22] - Total compensation expense for LDI awards was $1.7 million for the three months ended March 31, 2022, down from $59.1 million in the same period of 2021[138] - Marketing and advertising expenses decreased by $8,113,000 or 7.4%, reflecting a reduction in national television campaigns[197] Cash Flow and Liquidity - The company’s cash and cash equivalents increased to $554.1 million from $419.6 million at the end of 2021[13] - Cash and cash equivalents at the end of the period were $707.84 million, down from $751.85 million at the end of Q1 2021, a decrease of 5.8%[25] - Net cash provided by operating activities was $1.148 billion, a significant improvement from $(1.878 billion) in the previous year[22] - The company had $42.8 million of loans held for sale on non-accrual status as of March 31, 2022, compared to $28.8 million as of December 31, 2021[70] Servicing Rights and Fair Value - The company reported servicing rights at fair value amounting to $2.09 billion as of March 31, 2022[44] - The balance of servicing rights, net of servicing rights liability, increased to $2,078,187 million as of March 31, 2022, from $1,766,088 million at the end of Q1 2021[73] - The estimated fair value of loans held for sale was $6.56 billion as of March 31, 2022[44] - The company experienced total net gains of $142.96 million from IRLCs and $411.77 million from servicing rights for the three months ended March 31, 2022[49] Debt and Financing - The total outstanding balance of warehouse borrowings as of March 31, 2022, was $5,806.9 million, down from $7,474.0 million as of December 31, 2021[106] - The Company issued $500.0 million in 6.50% senior unsecured notes due 2025, with $500.0 million outstanding as of March 31, 2022[123] - The Company recognized a TRA liability of $35.4 million as of March 31, 2022, reflecting estimated payments under the Tax Receivable Agreement[128] - The Company entered into a credit facility agreement in January 2022 providing $500.0 million in borrowing capacity, secured by Fannie Mae mortgage servicing rights[114] Employee Metrics - The company employed 3,261 licensed loan officers as of March 31, 2022, an increase from 2,807 in the same period in 2021[181] - The company had 10,054 employees as of March 31, 2022, a decrease of 8.9% from 11,037 employees a year earlier[196] Market and Economic Conditions - The weighted average interest rate during the period ended March 31, 2022, was 2.01%, down from 2.34% in the prior year[108] - The company has not experienced any losses related to cash deposits exceeding FDIC insurance limits, indicating a stable credit risk profile[38]