LendingClub Reports First Quarter 2024 Results

Strong Originations and Credit Performance Drives 12th Consecutive Quarter of GAAP Profitability

SAN FRANCISCO, April 30, 2024 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the first quarter ended March 31, 2024.

“We’re pleased to have started 2024 with another strong quarter, executing well against the factors we can control,” said Scott Sanborn, LendingClub CEO. “Our operating discipline, strong credit performance, and continued innovation are resulting in a sustainable operating rhythm that is delivering real value to our members and has us well positioned to seize the historic opportunity in front of us.”

First Quarter 2024 Results

Balance Sheet:

Total assets of $9.2 billion compared to $8.8 billion in the prior quarter, primarily reflecting growth in securities related to the structured certificate program.
Deposits of $7.5 billion compared to $7.3 billion in the prior quarter, primarily due to an increase in high yield savings and certificates of deposit, partially offset by a decrease in brokered deposits.

FDIC-insured deposits represent approximately 87% of total deposits.

Securities available for sale of $2.2 billion, compared to $1.6 billion in the prior quarter, primarily reflecting growth in the structured certificate program.
Whole loans held on the balance sheet, which consists of loans and leases held for investment and loans held for sale, remained flat at $5.2 billion compared to the prior quarter, as the company increased loan retention and repurchased a portfolio of LendingClub-originated loans, largely offsetting amortization of the existing portfolio.
Strong capital position with a consolidated Tier 1 leverage ratio of 12.5% and consolidated Common Equity Tier 1 capital ratio of 17.6%.
Book value per common share increased to $11.40, compared to $11.34 in the prior quarter.
Tangible book value per common share increased to $10.61, compared to $10.54 in the prior quarter.

Financial Performance:

Loan originations of $1.6 billion, comparable to the prior quarter driven by promising initial results from new borrower initiatives, offsetting typical seasonal pressures.
Total net revenue of $180.7 million, compared to $185.6 million in the prior quarter, driven by:

Marketplace revenue of $55.9 million, compared to $52.2 million in the prior quarter, primarily reflecting improved loan pricing of marketplace loans.
Net interest income of $122.9 million, compared to $131.5 million in the prior quarter, reflecting a shift in asset mix from held for investment loans to senior securities and higher deposit funding costs.

Provision for credit losses of $31.9 million, compared to $41.9 million in the prior quarter due to lower incremental provision on seasoned vintages.
Net income increased to $12.3 million, with diluted EPS of $0.11, compared to $10.2 million, or diluted EPS of $0.09, in the prior quarter. Net income was driven by strong execution, better-than-expected benchmark rates supporting loan sales pricing, and continued expense management combined with delays in expected expense increases.
Pre-provision net revenue (PPNR) of $48.5 million, compared to $55.6 million in the prior quarter.

Three Months Ended

($ in millions, except per share amounts)

March 31,
2024

December 31,
2023

March 31,
2023

Total net revenue

$                    180.7

$                    185.6

$                    245.7

Non-interest expense

132.2

130.0

157.3

Pre-provision net revenue (1)

48.5

55.6

88.4

Provision for credit losses

31.9

41.9

70.6

Income before income tax expense

16.5

13.7

17.8

Income tax expense

(4.3)

(3.5)

(4.1)

Net income

$                       12.3

$                       10.2

$                       13.7

Diluted EPS

$                       0.11

$                       0.09

$                       0.13

(1)

See page 3 of this release for additional information on our use of non-GAAP financial measures.

For a calculation of Pre-Provision Net Revenue and Tangible Book Value Per Common Share, refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables at the end of this release.

Financial Outlook

Second Quarter 2024

Loan Originations

$1.6B to $1.8B

Pre-Provision Net Revenue (PPNR)

$30M to $40M

About LendingClub

LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.9 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.

Conference Call and Webcast Information

The LendingClub first quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, April 30, 2024. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (404) 975-4839, or outside the U.S. +1 (833) 470-1428, with Access Code 904235, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until May 7, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 972670. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), X (formerly Twitter) handles (@LendingClub and @LendingClubIR) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

ContactsFor Investors:
[email protected]

Media Contact:
[email protected]

Non-GAAP Financial Measures

To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Pre-Provision Net Revenue and Tangible Book Value Per Common Share. Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.

We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.

We believe Pre-Provision Net Revenue is an important measure because it reflects the financial performance of our business operations. Pre-Provision Net Revenue is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income.

We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company’s use of equity. TBV Per Common Share is a non-GAAP financial measure representing common equity reduced by goodwill and intangible assets, divided by ending common shares issued and outstanding.

For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on page 14 of this release.

Safe Harbor Statement

Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “will,” “would” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing borrowers and platform investors; competition; overall economic conditions; the interest rate environment; the regulatory environment; default rates and those factors set forth in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

*****

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS

(In thousands, except percentages or as noted)

(Unaudited)

As of and for the three months ended

% Change

March 31,
2024

December 31,
2023

September 30,

2023

June 30,

2023

March 31,
2023

Q/Q

Y/Y

Operating Highlights:

Non-interest income

$       57,800

$        54,129

$         63,844

$      85,818

$       98,990

7 %

(42) %

Net interest income

122,888

131,477

137,005

146,652

146,704

(7) %

(16) %

Total net revenue

180,688

185,606

200,849

232,470

245,694

(3) %

(26) %

Non-interest expense

132,233

130,015

128,035

151,079

157,308

2 %

(16) %

Pre-provision net revenue(1)

48,455

55,591

72,814

81,391

88,386

(13) %

(45) %

Provision for credit losses

31,927

41,907

64,479

66,595

70,584

(24) %

(55) %

Income before income tax expense

16,528

13,684

8,335

14,796

17,802

21 %

(7) %

Income tax expense

(4,278)

(3,529)

(3,327)

(4,686)

(4,136)

21 %

3 %

Net income

$       12,250

$        10,155

$           5,008

$      10,110

$       13,666

21 %

(10) %

Basic EPS

$           0.11

$            0.09

$             0.05

$          0.09

$           0.13

22 %

(15) %

Diluted EPS

$           0.11

$            0.09

$             0.05

$          0.09

$           0.13

22 %

(15) %

LendingClub Corporation Performance Metrics:

Net interest margin

5.8 %

6.4 %

6.9 %

7.1 %

7.5 %

Efficiency ratio(2)

73.2 %

70.0 %

63.7 %

65.0 %

64.0 %

Return on average equity (ROE)(3)

3.9 %

3.3 %

1.7 %

3.4 %

4.6 %

Return on average total assets (ROA)(4)

0.5 %

0.5 %

0.2 %

0.5 %

0.7 %

Marketing expense as a % of loan originations

1.47 %

1.44 %

1.30 %

1.19 %

1.18 %

LendingClub Corporation Capital Metrics:

Common equity Tier 1 capital ratio

17.6 %

17.9 %

16.9 %

16.1 %

15.6 %

Tier 1 leverage ratio

12.5 %

12.9 %

13.2 %

12.4 %

12.8 %

Book value per common share

$         11.40

$          11.34

$           11.02

$        11.09

$         11.08

1 %

3 %

Tangible book value per common share(1)

$         10.61

$          10.54

$           10.21

$        10.26

$         10.23

1 %

4 %

Loan Originations (in millions)(5):

Total loan originations

$         1,646

$          1,630

$           1,508

$        2,011

$         2,288

1 %

(28) %

Marketplace loans

$         1,361

$          1,432

$           1,182

$        1,353

$         1,286

(5) %

6 %

Loan originations held for investment

$            285

$             198

$              326

$           657

$         1,002

44 %

(72) %

Loan originations held for investment as a % of total loan originations

17 %

12 %

22 %

33 %

44 %

Servicing Portfolio AUM (in millions)(6):

Total servicing portfolio

$       13,437

$         14,122

$         14,818

$       15,669

$       16,060

(5) %

(16) %

Loans serviced for others

$         8,671

$           9,336

$           9,601

$       10,204

$       10,504

(7) %

(17) %

(1)

Represents a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Financial Measures.”

(2)

Calculated as the ratio of non-interest expense to total net revenue.

(3)

Calculated as annualized net income divided by average equity for the period presented.

(4)

Calculated as annualized net income divided by average total assets for the period presented.

(5)

Includes unsecured personal loans and auto loans only.

(6)

Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and held for investment by the company.

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS (Continued)

(In thousands, except percentages or as noted)

(Unaudited)

As of and for the three months ended

% Change

March 31,
2024

December 31,
2023

September 30,

2023

June 30,

2023

March 31,
2023

Q/Q

Y/Y

Balance Sheet Data:

Securities available for sale

$     2,228,500

$      1,620,262

$          795,669

$       523,579

$        380,028

38 %

486 %

Loans held for sale at fair value

$        550,415

$         407,773

$          362,789

$       250,361

$          44,647

35 %

N/M

Loans and leases held for investment at amortized cost

$     4,505,816

$      4,850,302

$       5,237,277

$    5,533,349

$     5,491,938

(7) %

(18) %

Gross allowance for loan and lease losses (1)

$       (311,794)

$        (355,773)

$         (388,156)

$      (383,960)

$       (368,698)

(12) %

(15) %

Recovery asset value (2)

$          52,644

$           45,386

$            37,661

$         28,797

$          19,841

16 %

165 %

Allowance for loan and lease losses

$       (259,150)

$        (310,387)

$         (350,495)

$      (355,163)

$       (348,857)

(17) %

(26) %

Loans and leases held for investment at amortized cost, net

$     4,246,666

$      4,539,915

$       4,886,782

$    5,178,186

$     5,143,081

(6) %

(17) %

Loans held for investment at fair value (3)

$        427,396

$         272,678

$          344,417

$       430,956

$        787,473

57 %

(46) %

Total loans and leases held for investment (3)

$     4,674,062

$      4,812,593

$       5,231,199

$    5,609,142

$     5,930,554

(3) %

(21) %

Whole loans held on balance sheet (4)

$     5,224,477

$      5,220,366

$       5,593,988

$    5,859,503

$     5,975,201

— %

(13) %

Total assets

$     9,244,828

$      8,827,463

$       8,472,351

$    8,342,506

$     8,754,018

5 %

6 %

Total deposits

$     7,521,655

$      7,333,486

$       7,000,263

$    6,843,535

$     7,218,854

3 %

4 %

Total liabilities

$     7,978,542

$      7,575,641

$       7,264,132

$    7,136,983

$     7,563,276

5 %

5 %

Total equity

$     1,266,286

$      1,251,822

$       1,208,219

$    1,205,523

$     1,190,742

1 %

6 %

N/M – Not meaningful

(1)

Represents the allowance for future estimated net charge-offs on existing portfolio balances.

(2)

Represents the negative allowance for expected recoveries of amounts previously charged-off.

(3)

In the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amounts have been reclassified to conform to the current period presentation.

(4)

Includes loans held for sale at fair value, loans and leases held for investment at amortized cost, net of allowance for loan and lease losses, and loans held for investment at fair value.

The asset quality metrics presented in the following table are for loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:

As of and for the three months ended

March 31,
2024

December 31,
2023

September 30,
2023

June 30,
2023

March 31,
2023

Asset Quality Metrics (1):

Allowance for loan and lease losses to total loans and leases held for investment at amortized cost

5.8 %

6.4 %

6.7 %

6.4 %

6.4 %

Allowance for loan and lease losses to commercial loans and leases held for investment at amortized cost

1.9 %

1.8 %

2.0 %

1.9 %

2.0 %

Allowance for loan and lease losses to consumer loans and leases held for investment at amortized cost

6.4 %

7.2 %

7.4 %

7.1 %

7.1 %

Gross allowance for loan and lease losses to consumer loans and leases held for investment at amortized cost

7.8 %

8.3 %

8.2 %

7.7 %

7.5 %

Net charge-offs

$          80,483

$          82,511

$          68,795

$          59,884

$          49,845

Net charge-off ratio (2)

6.9 %

6.6 %

5.1 %

4.4 %

3.8 %

(1)

Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.

(2)

Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period.

LENDINGCLUB CORPORATION

LOANS AND LEASES HELD FOR INVESTMENT

(In thousands)
(Unaudited)

The following table presents loans and leases held for investment at amortized cost and loans held for investment at fair value:

March 31,
2024

December 31,
2023

Unsecured personal

$       3,397,853

$       3,726,830

Residential mortgages

180,697

183,050

Secured consumer

253,241

250,039

Total consumer loans held for investment

3,831,791

4,159,919

Equipment finance (1)

101,902

110,992

Commercial real estate

376,022

380,322

Commercial and industrial

196,101

199,069

Total commercial loans and leases held for investment

674,025

690,383

Total loans and leases held for investment at amortized cost

4,505,816

4,850,302

Allowance for loan and lease losses

(259,150)

(310,387)

Loans and leases held for investment at amortized cost, net

$       4,246,666

$       4,539,915

Loans held for investment at fair value (2)

427,396

272,678

Total loans and leases held for investment

$       4,674,062

$       4,812,593

(1)

Comprised of sales-type leases for equipment.

(2)

In the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amount has been reclassified to conform to the current period presentation.

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands)

(Unaudited)

The following table presents the components of the allowance for loan and lease losses:

March 31, 2024

December 31, 2023

Gross allowance for loan and lease losses (1)

$                311,794

$                355,773

Recovery asset value (2)

(52,644)

(45,386)

Allowance for loan and lease losses

$                259,150

$                310,387

(1)

Represents the allowance for future estimated net charge-offs on existing portfolio balances.

(2)

Represents the negative allowance for expected recoveries of amounts previously charged-off.

The following tables present the allowance for loan and lease losses on loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:

Three Months Ended

March 31, 2024

December 31, 2023

Consumer

Commercial

Total

Consumer

Commercial

Total

Allowance for loan and lease losses, beginning of period

$    298,061

$        12,326

$ 310,387

$    336,288

$        14,207

$ 350,495

Credit loss expense for loans and leases held for investment

27,686

1,560

29,246

43,227

(824)

42,403

Charge-offs

(89,110)

(1,232)

(90,342)

(88,904)

(1,193)

(90,097)

Recoveries

9,643

216

9,859

7,450

136

7,586

Allowance for loan and lease losses, end of period

$    246,280

$        12,870

$ 259,150

$    298,061

$        12,326

$ 310,387

Three Months Ended

March 31, 2023

Consumer

Commercial

Total

Allowance for loan and lease losses, beginning of period

$    312,489

$        15,363

$ 327,852

Credit loss expense for loans and leases held for investment

70,684

166

70,850

Charge-offs

(52,212)

(351)

(52,563)

Recoveries

2,585

133

2,718

Allowance for loan and lease losses, end of period

$    333,546

$        15,311

$ 348,857

LENDINGCLUB CORPORATION

PAST DUE LOANS AND LEASES HELD FOR INVESTMENT

(In thousands)

(Unaudited)

The following tables present past due loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:

March 31, 2024

30-59
Days

60-89
Days

90 or More
Days

Total Days
Past Due

Guaranteed
Amount (1)

Unsecured personal

$      29,852

$      24,694

$      26,383

$             80,929

$                     —

Residential mortgages

1,171

—

151

1,322

—

Secured consumer

2,332

393

243

2,968

—

Total consumer loans held for investment

$      33,355

$      25,087

$      26,777

$             85,219

$                     —

Equipment finance

$        1,461

$             —

$             —

$               1,461

$                     —

Commercial real estate

4,335

400

4,321

9,056

7,755

Commercial and industrial

1,595

8,518

4,687

14,800

11,185

Total commercial loans and leases held for investment

$        7,391

$        8,918

$        9,008

$             25,317

$             18,940

Total loans and leases held for investment at amortized cost

$      40,746

$      34,005

$      35,785

$           110,536

$             18,940

December 31, 2023

30-59
Days

60-89
Days

90 or More
Days

Total Days
Past Due

Guaranteed
Amount (1)

Unsecured personal

$      32,716

$      29,556

$      30,132

$             92,404

$                     —

Residential mortgages

1,751

—

—

1,751

—

Secured consumer

2,076

635

217

2,928

—

Total consumer loans held for investment

$      36,543

$      30,191

$      30,349

$             97,083

$                     —

Equipment finance

$        1,265

$             —

$             —

$               1,265

$                     —

Commercial real estate

—

3,566

1,618

5,184

4,047

Commercial and industrial

12,261

1,632

1,515

15,408

11,260

Total commercial loans and leases held for investment

$      13,526

$        5,198

$        3,133

$             21,857

$             15,307

Total loans and leases held for investment at amortized cost

$      50,069

$      35,389

$      33,482

$           118,940

$             15,307

(1)

Represents loan balances guaranteed by the Small Business Association.

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended

Change (%)

March 31,
2024

December 31,
2023

March 31,
2023

Q1 2024

vs

Q4 2023

Q1 2024

vs

Q1 2023

Non-interest income:

Origination fees

$         70,079

$          76,702

$         70,543

(9) %

(1) %

Servicing fees

19,592

17,450

26,380

12 %

(26) %

Gain on sales of loans

10,909

11,921

14,125

(8) %

(23) %

Net fair value adjustments

(44,689)

(53,892)

(15,414)

(17) %

190 %

Marketplace revenue

55,891

52,181

95,634

7 %

(42) %

Other non-interest income

1,909

1,948

3,356

(2) %

(43) %

Total non-interest income

57,800

54,129

98,990

7 %

(42) %

Total interest income

207,351

208,319

202,413

— %

2 %

Total interest expense

84,463

76,842

55,709

10 %

52 %

Net interest income

122,888

131,477

146,704

(7) %

(16) %

Total net revenue

180,688

185,606

245,694

(3) %

(26) %

Provision for credit losses

31,927

41,907

70,584

(24) %

(55) %

Non-interest expense:

Compensation and benefits

59,554

58,591

73,307

2 %

(19) %

Marketing

24,136

23,465

26,880

3 %

(10) %

Equipment and software

12,684

13,190

13,696

(4) %

(7) %

Depreciation and amortization

12,673

11,953

12,354

6 %

3 %

Professional services

7,091

7,727

9,058

(8) %

(22) %

Occupancy

3,861

3,926

4,310

(2) %

(10) %

Other non-interest expense

12,234

11,163

17,703

10 %

(31) %

Total non-interest expense

132,233

130,015

157,308

2 %

(16) %

Income before income tax expense

16,528

13,684

17,802

21 %

(7) %

Income tax expense

(4,278)

(3,529)

(4,136)

21 %

3 %

Net income

$         12,250

$          10,155

$         13,666

21 %

(10) %

Net income per share: 

Basic EPS

$             0.11

$              0.09

$             0.13

22 %

(15) %

Diluted EPS

$             0.11

$              0.09

$             0.13

22 %

(15) %

Weighted-average common shares – Basic

110,685,796

109,948,785

106,912,139

1 %

4 %

Weighted-average common shares – Diluted

110,687,380

109,949,371

106,917,770

1 %

4 %

LENDINGCLUB CORPORATION

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)

Consolidated LendingClub Corporation (1)

Three Months Ended

March 31, 2024

Three Months Ended

December 31, 2023

Three Months Ended

March 31, 2023

Average
Balance

Interest Income/
Expense

Average Yield/
Rate

Average
Balance

Interest Income/
Expense

Average Yield/
Rate

Average
Balance

Interest Income/
Expense

Average Yield/
Rate

Interest-earning assets (2)

Cash, cash equivalents, restricted cash and other

$ 1,217,395

$  16,503

5.42 %

$ 1,190,539

$   16,271

5.47 %

$ 1,220,677

$  13,714

4.49 %

Securities available for sale at fair value

1,972,561

35,347

7.17 %

1,197,625

20,920

6.99 %

362,960

3,900

4.30 %

Loans held for sale at fair value

467,275

14,699

12.58 %

501,850

15,883

12.66 %

110,580

5,757

20.83 %

Loans and leases held for investment:

Unsecured personal loans

3,518,101

116,055

13.20 %

3,890,041

128,190

13.18 %

4,066,713

133,687

13.15 %

Commercial and other consumer loans

1,115,931

16,338

5.86 %

1,126,010

17,033

6.05 %

1,175,504

16,780

5.71 %

Loans and leases held for investment at amortized cost

4,634,032

132,393

11.43 %

5,016,051

145,223

11.58 %

5,242,217

150,467

11.48 %

Loans held for investment at fair value (3)

256,335

8,409

13.12 %

306,636

10,022

13.07 %

882,838

28,575

12.95 %

Total loans and leases held for investment (3)

4,890,367

140,802

11.52 %

5,322,687

155,245

11.67 %

6,125,055

179,042

11.69 %

Total interest-earning assets

8,547,598

207,351

9.70 %

8,212,701

208,319

10.15 %

7,819,272

202,413

10.35 %

Cash and due from banks and restricted cash

58,440

63,181

71,878

Allowance for loan and lease losses

(291,168)

(334,711)

(338,359)

Other non-interest earning assets

631,468

659,995

666,650

Total assets

$ 8,946,338

$ 8,601,166

$ 8,219,441

Interest-bearing liabilities

Interest-bearing deposits:

Checking and money market accounts

$ 1,054,614

$    9,410

3.59 %

$ 1,081,875

$     9,593

3.52 %

$ 1,633,691

$    7,568

1.88 %

Savings accounts and certificates of deposit

6,069,942

74,553

4.94 %

5,720,058

66,660

4.62 %

4,747,478

45,705

3.90 %

Interest-bearing deposits

7,124,556

83,963

4.74 %

6,801,933

76,253

4.45 %

6,381,169

53,273

3.39 %

Other interest-bearing liabilities (3)

26,571

500

7.53 %

24,180

589

9.74 %

154,045

2,436

6.33 %

Total interest-bearing liabilities

7,151,127

84,463

4.75 %

6,826,113

76,842

4.47 %

6,535,214

55,709

3.46 %

Non-interest bearing deposits

317,430

314,822

241,954

Other liabilities

220,544

238,806

263,868

Total liabilities

$ 7,689,101

$ 7,379,741

$ 7,041,036

Total equity

$ 1,257,237

$ 1,221,425

$ 1,178,405

Total liabilities and equity

$ 8,946,338

$ 8,601,166

$ 8,219,441

Interest rate spread

4.95 %

5.68 %

6.90 %

Net interest income and net interest margin

$  122,888

5.75 %

$ 131,477

6.40 %

$  146,704

7.50 %

(1)

Consolidated presentation reflects intercompany eliminations.

(2)

Nonaccrual loans and any related income are included in their respective loan categories.

(3)

In the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Other interest-bearing liabilities.” Prior period amounts have been reclassified to conform to the current period presentation.

LENDINGCLUB CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

March 31,
2024

December 31,
2023

Assets

Cash and due from banks

$            15,930

$         14,993

Interest-bearing deposits in banks

1,050,349

1,237,511

Total cash and cash equivalents

1,066,279

1,252,504

Restricted cash

36,081

41,644

Securities available for sale at fair value ($2,284,550 and $1,663,990 at amortized cost, respectively)

2,228,500

1,620,262

Loans held for sale at fair value

550,415

407,773

Loans and leases held for investment

4,505,816

4,850,302

Allowance for loan and lease losses

(259,150)

(310,387)

Loans and leases held for investment, net

4,246,666

4,539,915

Loans held for investment at fair value (1)

427,396

272,678

Property, equipment and software, net

163,632

161,517

Goodwill

75,717

75,717

Other assets

450,142

455,453

Total assets

$        9,244,828

$     8,827,463

Liabilities and Equity

Deposits:

  Interest-bearing

$        7,214,029

$     7,001,680

  Noninterest-bearing

307,626

331,806

Total deposits

7,521,655

7,333,486

Borrowings (1)

262,550

19,354

Other liabilities

194,337

222,801

Total liabilities

7,978,542

7,575,641

Equity

Common stock, $0.01 par value; 180,000,000 shares authorized; 111,120,415 and 110,410,602 shares issued and outstanding, respectively

1,111

1,104

Additional paid-in capital

1,678,928

1,669,828

Accumulated deficit

(376,556)

(388,806)

Accumulated other comprehensive loss

(37,197)

(30,304)

Total equity

1,266,286

1,251,822

Total liabilities and equity

$        9,244,828

$     8,827,463

(1)

In the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Borrowings.” Prior period amounts have been reclassified to conform to the current period presentation.

LENDINGCLUB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except share and per share data)

(Unaudited)

Pre-Provision Net Revenue

For the three months ended

March 31,
2024

December 31,

2023

September 30,

2023

June 30,

2023

March 31,
2023

GAAP Net income

$                  12,250

$                  10,155

$                    5,008

$                  10,110

$                  13,666

Less: Provision for credit losses

(31,927)

(41,907)

(64,479)

(66,595)

(70,584)

Less: Income tax expense

(4,278)

(3,529)

(3,327)

(4,686)

(4,136)

Pre-provision net revenue

$                  48,455

$                  55,591

$                  72,814

$                  81,391

$                  88,386

For the three months ended

March 31,
2024

December 31,

2023

September 30,

2023

June 30,

2023

March 31,
2023

Non-interest income

$                  57,800

$                  54,129

$                  63,844

$                  85,818

$                  98,990

Net interest income

122,888

131,477

137,005

146,652

146,704

Total net revenue

180,688

185,606

200,849

232,470

245,694

Non-interest expense

(132,233)

(130,015)

(128,035)

(151,079)

(157,308)

Pre-provision net revenue

48,455

55,591

72,814

81,391

88,386

Provision for credit losses

(31,927)

(41,907)

(64,479)

(66,595)

(70,584)

Income before income tax expense

16,528

13,684

8,335

14,796

17,802

Income tax expense

(4,278)

(3,529)

(3,327)

(4,686)

(4,136)

GAAP Net income

$                  12,250

$                  10,155

$                    5,008

$                  10,110

$                  13,666

Tangible Book Value Per Common Share

March 31,
2024

December 31,

2023

September 30,

2023

June 30,

2023

March 31,
2023

GAAP common equity

$        1,266,286

$        1,251,822

$        1,208,219

$        1,205,523

$        1,190,742

Less: Goodwill

(75,717)

(75,717)

(75,717)

(75,717)

(75,717)

Less: Intangible assets

(11,165)

(12,135)

(13,151)

(14,167)

(15,201)

Tangible common equity

$        1,179,404

$        1,163,970

$        1,119,351

$        1,115,639

$        1,099,824

Book value per common share

GAAP common equity

$        1,266,286

$        1,251,822

$        1,208,219

$        1,205,523

$        1,190,742

Common shares issued and outstanding

111,120,415

110,410,602

109,648,769

108,694,120

107,460,734

Book value per common share

$               11.40

$               11.34

$               11.02

$               11.09

$               11.08

Tangible book value per common share

Tangible common equity

$        1,179,404

$        1,163,970

$        1,119,351

$        1,115,639

$        1,099,824

Common shares issued and outstanding

111,120,415

110,410,602

109,648,769

108,694,120

107,460,734

Tangible book value per common share

$               10.61

$               10.54

$               10.21

$               10.26

$               10.23

SOURCE LendingClub Corporation


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