loanDepot, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved total net revenues of $314.6 million for the three months ended September 30, 2024, marking a 18.4% increase from $265.7 million in the same period of 2023. For the nine months ended September 30, 2024, total net revenues rose to $802.8 million, up from $745.4 million year-over-year.
The gain on origination and sale of loans, net for the third quarter of 2024 was $198.0 million, a substantial increase from $148.8 million in the prior year. This growth was attributed to higher origination volumes and improved gain on sale margins. The company reported a net income of $2.7 million for the third quarter, a notable recovery from a net loss of $34.3 million in the same quarter of 2023. For the nine-month period, however, loanDepot recorded a net loss of $134.7 million, although this was an improvement from a loss of $175.7 million in the previous year.
Total assets increased to $6.4 billion as of September 30, 2024, compared to $6.2 billion at the end of 2023. Loans held for sale at fair value rose significantly to $2.79 billion, up from $2.13 billion, driven by $17.0 billion in loan originations. However, cash and cash equivalents decreased to $483.0 million, down 26.9% from $660.7 million at the end of 2023.
The company’s total liabilities also increased to $5.83 billion, up from $5.45 billion, while total equity decreased to $592.0 million from $704.5 million, reflecting the net loss and treasury share repurchases. The retained deficit widened to $(517.4) million from $(451.7) million.
Strategically, loanDepot has been navigating challenges stemming from a cybersecurity incident that affected sensitive information of approximately 16.9 million individuals. The company incurred $22.8 million in related expenses during the nine months ended September 30, 2024, and has accrued $25.0 million for class action litigation associated with the incident. Despite these challenges, loanDepot has launched the "Project North Star" initiative to enhance revenue growth and operational efficiency.
The company’s workforce increased to 4,615 employees, reflecting an 8.7% rise from the previous year, which contributed to higher personnel expenses. Overall, loanDepot's performance in the third quarter indicates a recovery trajectory, with strategic initiatives aimed at bolstering its market position amidst ongoing challenges.
About loanDepot, Inc.
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