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LENDINGCLUB CORP.
LENDINGCLUB CORP.
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LendingClub Reports Third Quarter 2024 Results

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LendingClub Reports Third Quarter 2024 Results

PR Newswire

SAN FRANCISCO, Oct. 23, 2024

Originations and Revenue Growth Supported by Return of Bank Buyers

Total Assets Grew 25% Year to Date Driven by $1.3 Billion Purchase of LendingClub Loans

Acquired Tally's Technology in October to Accelerate Product Roadmap

SAN FRANCISCO, Oct. 23, 2024 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the third quarter ended September 30, 2024.

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.

"We had a standout quarter, with credit outperformance and the return of bank buyers driving improved loan sales pricing, our capital strategy delivering a 25% larger balance sheet year to date, and strong financial performance translating to a meaningful improvement in book value per common share over the past 12 months," said Scott Sanborn, LendingClub CEO. "Looking ahead, our acquisition of Tally's award-winning credit card debt monitoring and management technology will allow us to accelerate our product roadmap and further seize on the historically large $1.3 trillion credit card refinance opportunity."

Third Quarter 2024 Results

Balance Sheet:

  • Total assets of $11.0 billion compared to $9.6 billion in the prior quarter, primarily due to growth in whole loans held on the balance sheet and securities related to the structured certificates program:
    • Whole loans held on the balance sheet of $6.0 billion, compared to $5.1 billion in the prior quarter, primarily reflecting the purchase of a $1.3 billion LendingClub-issued loan portfolio.
    • Securities available for sale of $3.3 billion, compared to $2.8 billion in the prior quarter, primarily reflecting growth in structured certificate securities.
  • Deposits of $9.5 billion compared to $8.1 billion in the prior quarter, primarily due to an increase in consumer deposits and brokered certificates of deposit to fund the loan portfolio purchase.
    • Launched new direct-to-consumer LevelUp Savings product and seeing positive consumer response.
    • 88% of total deposits are FDIC-insured.
  • Strong liquidity profile with $3.6 billion in readily available liquidity.
  • Strong capital position with a consolidated Tier 1 leverage ratio of 11.3% and consolidated Common Equity Tier 1 capital ratio of 15.9%.
  • Book value per common share increased to $11.95, compared to $11.52 in the prior quarter.
  • Tangible book value per common share increased to $11.19, compared to $10.75 in the prior quarter.

Financial Performance:

  • Loan originations grew to $1.9 billion, compared to $1.8 billion in the prior quarter, driven by the successful execution of new consumer loan initiatives, combined with marketplace investor demand for structured certificates and higher whole loan retention.
  • Total net revenue increased to $201.9 million, compared to $187.2 million in the prior quarter, driven by higher net interest income from a larger balance sheet and improved marketplace loan sales pricing.
  • Provision for credit losses of $47.5 million, compared to $35.6 million in the prior quarter, driven by higher held-for-investment whole loan retention during the quarter.
  • Decline in net charge-offs in the held-for-investment at amortized cost loan portfolio to $55.8 million, down from $66.8 million in the prior quarter; net charge-off ratio of 5.4% compared to 6.2% in the prior quarter.
  • Net income was $14.5 million, compared to $14.9 million in the prior quarter, with diluted EPS of $0.13 in both periods.
  • Pre-Provision Net Revenue (PPNR) increased to $65.5 million, compared to $55.0 million in the prior quarter, driven by a $14.7 million increase in total net revenue partially offset by a $4.0 million increase in non-interest expense.

Three Months Ended


($ in millions, except per share amounts)

September 30,
2024


June 30,
2024


September 30,
2023

Total net revenue

$              201.9


$              187.2


$              200.8

Non-interest expense

136.3


132.3


128.0

Pre-provision net revenue (1)

65.5


55.0


72.8

Provision for credit losses

47.5


35.6


64.5

Income before income tax expense

18.0


19.4


8.3

Income tax expense

(3.6)


(4.5)


(3.3)

Net income

$                14.5


$                14.9


$                  5.0

Diluted EPS

$                0.13


$                0.13


$                0.05



(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


Fourth Quarter 2024


Loan originations

$1.8B to $1.9B

Pre-provision net revenue (PPNR)

$60M to $70M

 

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 hundreds of billions of 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 5 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 third quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, October 23, 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 834946, 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 October 30, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 106763. 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.

Contacts
For 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 13 of this release.

We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense with reasonable certainty without unreasonable effort. 

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


September 30,
2024


June 30,
2024


March 31,

2024


December 31,

2023


September 30,
2023


Q/Q


Y/Y

Operating Highlights:

Non-interest income

$         61,640


$    58,713


$    57,800


$         54,129


$         63,844


5 %


(3) %

Net interest income

140,241


128,528


122,888


131,477


137,005


9 %


2 %

Total net revenue

201,881


187,241


180,688


185,606


200,849


8 %


1 %

Non-interest expense

136,332


132,258


132,233


130,015


128,035


3 %


6 %

Pre-provision net revenue(1)

65,549


54,983


48,455


55,591


72,814


19 %


(10) %

Provision for credit losses

47,541


35,561


31,927


41,907


64,479


34 %


(26) %

Income before income tax expense

18,008


19,422


16,528


13,684


8,335


(7) %


116 %

Income tax expense

(3,551)


(4,519)


(4,278)


(3,529)


(3,327)


(21) %


7 %

Net income

$         14,457


$    14,903


$    12,250


$         10,155


$           5,008


(3) %


189 %















Basic EPS

$             0.13


$        0.13


$        0.11


$             0.09


$             0.05


— %


160 %

Diluted EPS

$             0.13


$        0.13


$        0.11


$             0.09


$             0.05


— %


160 %















LendingClub Corporation Performance Metrics:

Net interest margin

5.63 %


5.75 %


5.75 %


6.40 %


6.91 %





Efficiency ratio(2)

67.5 %


70.6 %


73.2 %


70.0 %


63.7 %





Return on average equity (ROE)(3)

4.4 %


4.7 %


3.9 %


3.3 %


1.7 %





Return on average total assets (ROA)(4)

0.6 %


0.6 %


0.5 %


0.5 %


0.2 %





Marketing expense as a % of loan originations

1.37 %


1.47 %


1.47 %


1.44 %


1.30 %



















LendingClub Corporation Capital Metrics:

Common equity Tier 1 capital ratio

15.9 %


17.9 %


17.6 %


17.9 %


16.9 %





Tier 1 leverage ratio

11.3 %


12.1 %


12.5 %


12.9 %


13.2 %





Book value per common share

$           11.95


$      11.52


$      11.40


$           11.34


$           11.02


4 %


8 %

Tangible book value per common share(1)

$           11.19


$      10.75


$      10.61


$           10.54


$           10.21


4 %


10 %















Loan Originations (in millions)(5):














Total loan originations

$           1,913


$      1,813


$      1,646


$           1,630


$           1,508


6 %


27 %

Marketplace loans

$           1,403


$      1,477


$      1,361


$           1,432


$           1,182


(5) %


19 %

Loan originations held for investment

$              510


$         336


$         285


$              198


$              326


52 %


56 %

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

27 %


19 %


17 %


12 %


22 %



















Servicing Portfolio AUM (in millions)(6):

Total servicing portfolio

$          12,674


$     12,999


$     13,437


$          14,122


$          14,818


(3) %


(14) %

Loans serviced for others

$            7,028


$       8,337


$       8,671


$            9,336


$            9,601


(16) %


(27) %



(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



September 30,
2024


June 30,
2024


March 31,

2024


December 31,

2023


September 30,
2023


Q/Q


Y/Y


Balance Sheet Data:

Securities available for sale

$       3,311,418


$    2,814,383


$    2,228,500


$        1,620,262


$           795,669


18 %


316 %

Loans held for sale at fair value

$          849,967


$       791,059


$       550,415


$           407,773


$           362,789


7 %


134 %

Loans and leases held for investment at amortized cost

$       4,108,329


$    4,228,391


$    4,505,816


$        4,850,302


$        5,237,277


(3) %


(22) %

Gross allowance for loan and lease losses (1)

$        (274,538)


$     (285,368)


$     (311,794)


$         (355,773)


$         (388,156)


(4) %


(29) %

Recovery asset value (2)

$            53,974


$         56,459


$         52,644


$             45,386


$             37,661


(4) %


43 %

Allowance for loan and lease losses

$        (220,564)


$     (228,909)


$     (259,150)


$         (310,387)


$         (350,495)


(4) %


(37) %

Loans and leases held for investment at amortized cost, net

$       3,887,765


$    3,999,482


$    4,246,666


$        4,539,915


$        4,886,782


(3) %


(20) %

Loans held for investment at fair value (3)(4)

$       1,287,495


$       339,222


$       427,396


$           272,678


$           344,417


280 %


274 %

Total loans and leases held for investment (3)(4)

$       5,175,260


$    4,338,704


$    4,674,062


$        4,812,593


$        5,231,199


19 %


(1) %

Whole loans held on balance sheet (4)(5)

$       6,025,227


$    5,129,763


$    5,224,477


$        5,220,366


$        5,593,988


17 %


8 %

Total assets

$     11,037,507


$    9,586,050


$    9,244,828


$        8,827,463


$        8,472,351


15 %


30 %

Total deposits

$       9,459,608


$    8,095,328


$    7,521,655


$        7,333,486


$        7,000,263


17 %


35 %

Total liabilities

$       9,694,612


$    8,298,105


$    7,978,542


$        7,575,641


$        7,264,132


17 %


33 %

Total equity

$       1,342,895


$    1,287,945


$    1,266,286


$        1,251,822


$        1,208,219


4 %


11 %



(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)

Beginning 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)

The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.

(5)

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


September 30,
2024


June 30,
2024


March 31,
2024


December 31,
2023


September 30,
2023

Asset Quality Metrics (1):

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

5.4 %


5.4 %


5.8 %


6.4 %


6.7 %

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

3.1 %


2.7 %


1.9 %


1.8 %


2.0 %

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

5.8 %


5.9 %


6.4 %


7.2 %


7.4 %

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

7.3 %


7.5 %


7.8 %


8.3 %


8.2 %

Net charge-offs

$          55,805


$          66,818


$          80,483


$          82,511


$          68,795

Net charge-off ratio (2)

5.4 %


6.2 %


6.9 %


6.6 %


5.1 %



(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:


September 30,
2024


December 31,
2023

Unsecured personal

$       3,068,078


$       3,726,830

Residential mortgages

175,345


183,050

Secured consumer

239,206


250,039

Total consumer loans held for investment

3,482,629


4,159,919

Equipment finance (1)

74,674


110,992

Commercial real estate

371,796


380,322

Commercial and industrial

179,230


199,069

Total commercial loans and leases held for investment

625,700


690,383

Total loans and leases held for investment at amortized cost

4,108,329


4,850,302

Allowance for loan and lease losses

(220,564)


(310,387)

Loans and leases held for investment at amortized cost, net

$       3,887,765


$       4,539,915

Loans held for investment at fair value (2)(3)

1,287,495


272,678

Total loans and leases held for investment (3)

$       5,175,260


$       4,812,593



(1)

Comprised of sales-type leases for equipment.

(2)

Beginning 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.

(3)

The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.

 

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 on loans and leases held for investment at amortized cost:


September 30, 2024


December 31, 2023

Gross allowance for loan and lease losses (1)

$                 274,538


$                 355,773

Recovery asset value (2)

(53,974)


(45,386)

Allowance for loan and lease losses

$                 220,564


$                 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


September 30, 2024


June 30, 2024


Consumer


Commercial


Total


Consumer


Commercial


Total

Allowance for loan and lease losses, beginning of period

$    210,729


$        18,180


$ 228,909


$    246,280


$        12,870


$ 259,150

Credit loss expense for loans and leases held for investment

45,813


1,647


47,460


30,760


5,817


36,577

Charge-offs

(68,388)


(721)


(69,109)


(77,494)


(594)


(78,088)

Recoveries

12,745


559


13,304


11,183


87


11,270

Allowance for loan and lease losses, end of period

$    200,899


$        19,665


$ 220,564


$    210,729


$        18,180


$ 228,909
















Three Months Ended








September 30, 2023








Consumer


Commercial


Total

Allowance for loan and lease losses, beginning of period







$    341,161


$        14,002


$ 355,163

Credit loss expense for loans and leases held for investment







63,733


394


64,127

Charge-offs







(73,644)


(534)


(74,178)

Recoveries







5,038


345


5,383

Allowance for loan and lease losses, end of period







$    336,288


$        14,207


$ 350,495

 

 

 

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:

September 30, 2024

30-59
Days


60-89
Days


90 or More
Days


Total Days
Past Due


Guaranteed
Amount (1)

Unsecured personal

$      25,749


$      20,156


$      22,352


$             68,257


$                     —

Residential mortgages

—


145


167


312


—

Secured consumer

2,283


675


242


3,200


—

Total consumer loans held for investment

$      28,032


$      20,976


$      22,761


$             71,769


$                     —











Equipment finance

$              —


$              —


$         4,850


$               4,850


$                     —

Commercial real estate

3,882


678


6,106


10,666


8,681

Commercial and industrial

417


8,207


7,232


15,856


12,347

Total commercial loans and leases held for investment

$         4,299


$         8,885


$      18,188


$             31,372


$             21,028

Total loans and leases held for investment at amortized cost

$      32,331


$      29,861


$      40,949


$           103,141


$             21,028











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 (%)


September 30,
2024


June 30,
2024


September 30,
2023


Q3 2024

vs

Q2 2024


Q3 2024

vs

Q3 2023

Non-interest income:










Origination fees

$          71,465


$        77,131


$          60,912


(7) %


17 %

Servicing fees

8,081


19,869


32,768


(59) %


(75) %

Gain on sales of loans

12,433


10,748


8,572


16 %


45 %

Net fair value adjustments

(33,595)


(51,395)


(41,366)


(35) %


(19) %

Marketplace revenue

58,384


56,353


60,886


4 %


(4) %

Other non-interest income

3,256


2,360


2,958


38 %


10 %

Total non-interest income

61,640


58,713


63,844


5 %


(3) %











Total interest income

240,377


219,634


207,412


9 %


16 %

Total interest expense

100,136


91,106


70,407


10 %


42 %

Net interest income

140,241


128,528


137,005


9 %


2 %











Total net revenue

201,881


187,241


200,849


8 %


1 %











Provision for credit losses

47,541


35,561


64,479


34 %


(26) %











Non-interest expense:










Compensation and benefits

57,408


56,540


58,497


2 %


(2) %

Marketing

26,186


26,665


19,555


(2) %


34 %

Equipment and software

12,789


12,360


12,631


3 %


1 %

Depreciation and amortization

13,341


13,072


11,250


2 %


19 %

Professional services

8,014


7,804


8,414


3 %


(5) %

Occupancy

4,005


3,941


4,612


2 %


(13) %

Other non-interest expense

14,589


11,876


13,076


23 %


12 %

Total non-interest expense

136,332


132,258


128,035


3 %


6 %











Income before income tax expense

18,008


19,422


8,335


(7) %


116 %

Income tax expense

(3,551)


(4,519)


(3,327)


(21) %


7 %

Net income

$          14,457


$        14,903


$            5,008


(3) %


189 %











Net income per share: 










Basic EPS

$              0.13


$           0.13


$              0.05


— %


160 %

Diluted EPS

$              0.13


$           0.13


$              0.05


— %


160 %


Weighted-average common shares – Basic

112,042,202


111,395,025


109,071,180


1 %


3 %


Weighted-average common shares – Diluted

113,922,256


111,466,497


109,073,194


2 %


4 %


 

LENDINGCLUB CORPORATION

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)




Consolidated LendingClub Corporation (1)


Three Months Ended

September 30, 2024


Three Months Ended

June 30, 2024


Three Months Ended

September 30, 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

$     939,611


$  12,442


5.30 %


$    976,330


$  13,168


5.40 %


$ 1,249,087


$  16,798


5.38 %

Securities available for sale at fair value

3,047,305


52,476


6.89 %


2,406,767


42,879


7.13 %


601,512


9,467


6.30 %

Loans held for sale at fair value

899,434


30,326


13.49 %


838,143


26,721


12.75 %


286,111


9,582


13.40 %

Loans and leases held for investment:


















Unsecured personal loans

3,045,150


103,291


13.57 %


3,243,161


108,425


13.37 %


4,257,360


142,118


13.35 %

Commercial and other consumer loans

1,057,688


15,497


5.86 %


1,097,846


16,394


5.97 %


1,147,130


16,842


5.87 %

Loans and leases held for investment at amortized cost

4,102,838


118,788


11.58 %


4,341,007


124,819


11.50 %


5,404,490


158,960


11.76 %

Loans held for investment at fair value (3)(4)

972,698


26,345


10.83 %


383,872


12,047


12.55 %


385,148


12,605


13.09 %

Total loans and leases held for investment (3)(4)

5,075,536


145,133


11.44 %


4,724,879


136,866


11.59 %


5,789,638


171,565


11.85 %

Total interest-earning assets

9,961,886


240,377


9.65 %


8,946,119


219,634


9.82 %


7,926,348


207,412


10.47 %

Cash and due from banks and restricted cash

41,147






55,906






69,442





Allowance for loan and lease losses

(225,968)






(245,478)






(354,263)





Other non-interest earning assets

624,198






632,253






691,641





Total assets

$  10,401,263






$ 9,388,800






$ 8,333,168





Interest-bearing liabilities


















Interest-bearing deposits:


















Checking and money market accounts

$  1,092,376


$  10,146


3.70 %


$ 1,097,696


$  10,084


3.69 %


$ 1,271,720


$    9,541


2.98 %

Savings accounts and certificates of deposit

6,944,586


86,717


4.97 %


6,449,061


80,109


5.00 %


5,357,717


59,968


4.44 %

Interest-bearing deposits

8,036,962


96,863


4.79 %


7,546,757


90,193


4.81 %


6,629,437


69,509


4.16 %

Other interest-bearing liabilities (3)

486,736


3,273


2.69 %


56,628


913


6.45 %


35,878


898


10.03 %

Total interest-bearing liabilities

8,523,698


100,136


4.67 %


7,603,385


91,106


4.82 %


6,665,315


70,407


4.19 %

Non-interest bearing deposits

344,577






303,199






183,728





Other liabilities

225,467






215,608






271,118





Total liabilities

$  9,093,742






$ 8,122,192






$ 7,120,161





Total equity

$  1,307,521






$ 1,266,608






$ 1,213,007





Total liabilities and equity

$  10,401,263






$ 9,388,800






$ 8,333,168























Interest rate spread





4.98 %






5.00 %






6.28 %



















Net interest income and net interest margin



$  140,241


5.63 %




$ 128,528


5.75 %




$ 137,005


6.91 %




(1)


Consolidated presentation reflects intercompany eliminations.

(2)


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

(3)


Beginning 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.

(4)


The average balance for the third quarter of 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the quarter.

 

LENDINGCLUB CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)




September 30,
2024


December 31,
2023

Assets




Cash and due from banks

$            25,558


$         14,993

Interest-bearing deposits in banks

991,372


1,237,511

Total cash and cash equivalents

1,016,930


1,252,504

Restricted cash

33,347


41,644

Securities available for sale at fair value ($3,319,988 and $1,663,990 at amortized cost, respectively)

3,311,418


1,620,262

Loans held for sale at fair value

849,967


407,773

Loans and leases held for investment

4,108,329


4,850,302

Allowance for loan and lease losses

(220,564)


(310,387)

Loans and leases held for investment, net

3,887,765


4,539,915

Loans held for investment at fair value (1)(2)

1,287,495


272,678

Property, equipment and software, net

167,809


161,517

Goodwill

75,717


75,717

Other assets

407,059


455,453

Total assets

$      11,037,507


$     8,827,463

Liabilities and Equity




Deposits:




Interest-bearing

$        9,099,092


$     7,001,680

Noninterest-bearing

360,516


331,806

Total deposits

9,459,608


7,333,486

Borrowings (1)

2,683


19,354

Other liabilities

232,321


222,801

Total liabilities

9,694,612


7,575,641

Equity




Common stock, $0.01 par value; 180,000,000 shares authorized; 112,401,990 and 110,410,602 shares issued and outstanding, respectively

1,124


1,104

Additional paid-in capital

1,692,538


1,669,828

Accumulated deficit

(347,196)


(388,806)

Accumulated other comprehensive loss

(3,571)


(30,304)

Total equity

1,342,895


1,251,822

Total liabilities and equity

$      11,037,507


$     8,827,463



(1)

Beginning 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.

(2)

The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.

 

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


September 30,
2024


June 30,

2024


March 31,

2024


December 31,

2023


September 30,
2023

GAAP Net income

$                14,457


$                14,903


$                12,250


$                10,155


$                  5,008

Less: Provision for credit losses

(47,541)


(35,561)


(31,927)


(41,907)


(64,479)

Less: Income tax expense

(3,551)


(4,519)


(4,278)


(3,529)


(3,327)

Pre-provision net revenue

$                65,549


$                54,983


$                48,455


$                55,591


$                72,814




For the three months ended


September 30,
2024


June 30,

2024


March 31,

2024


December 31,

2023


September 30,
2023

Non-interest income

$                61,640


$                58,713


$                57,800


$                54,129


$                63,844

Net interest income

140,241


128,528


122,888


131,477


137,005

Total net revenue

201,881


187,241


180,688


185,606


200,849

Non-interest expense

(136,332)


(132,258)


(132,233)


(130,015)


(128,035)

Pre-provision net revenue

65,549


54,983


48,455


55,591


72,814

Provision for credit losses

(47,541)


(35,561)


(31,927)


(41,907)


(64,479)

Income before income tax expense

18,008


19,422


16,528


13,684


8,335

Income tax expense

(3,551)


(4,519)


(4,278)


(3,529)


(3,327)

GAAP Net income

$                14,457


$                14,903


$                12,250


$                10,155


$                  5,008


Tangible Book Value Per Common Share



September 30,
2024


June 30,

2024


March 31,

2024


December 31,

2023


September 30,
2023

GAAP common equity

$         1,342,895


$          1,287,945


$          1,266,286


$          1,251,822


$          1,208,219

Less: Goodwill

(75,717)


(75,717)


(75,717)


(75,717)


(75,717)

Less: Intangible assets

(9,439)


(10,293)


(11,165)


(12,135)


(13,151)

Tangible common equity

$         1,257,739


$          1,201,935


$          1,179,404


$          1,163,970


$          1,119,351











Book value per common share

GAAP common equity

$         1,342,895


$          1,287,945


$          1,266,286


$          1,251,822


$          1,208,219

Common shares issued and outstanding

112,401,990


111,812,215


111,120,415


110,410,602


109,648,769

Book value per common share

$                11.95


$                 11.52


$                 11.40


$                 11.34


$                 11.02











Tangible book value per common share

Tangible common equity

$         1,257,739


$          1,201,935


$          1,179,404


$          1,163,970


$          1,119,351

Common shares issued and outstanding

112,401,990


111,812,215


111,120,415


110,410,602


109,648,769

Tangible book value per common share

$                11.19


$                 10.75


$                 10.61


$                 10.54


$                 10.21

 

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SOURCE LendingClub Corporation

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