Technology
LendingClub Reports Second Quarter 2024 Results
Published
5 months agoon
By
10% Sequential Originations Growth
Strong Balance Sheet Growth with Stable Net Interest Margin Drives Increase in Revenue
SAN FRANCISCO, July 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 second quarter ended June 30, 2024.
“Our second quarter results mark an inflection point, with our business calibrated to the current rate environment and positioned to accelerate as conditions improve,” said Scott Sanborn, LendingClub CEO. “Thanks to our unique product innovations, we were able to capture strong borrower and marketplace investor demand, delivering growth in originations, revenue, and profitability. I look forward to building on our momentum in the quarters ahead.”
Second Quarter 2024 Results
Balance Sheet:
Total assets of $9.6 billion compared to $9.2 billion in the prior quarter, primarily due to growth in securities related to the structured certificates program and growth in the extended seasoning portfolio.Securities available for sale of $2.8 billion, compared to $2.2 billion in the prior quarter, primarily reflecting growth in the structured certificates program.Whole loans held on the balance sheet of $5.1 billion, which consists of loans and leases held for investment and loans held for sale, were roughly flat compared to the prior quarter.Deposits of $8.1 billion compared to $7.5 billion in the prior quarter, primarily due to an increase in high-yield savings and certificates of deposit.87% of total deposits are FDIC-insured.Strong liquidity profile with $3.0 billion in readily available liquidity.Strong capital position with a consolidated Tier 1 leverage ratio of 12.1% and consolidated Common Equity Tier 1 capital ratio of 17.9%.Book value per common share increased to $11.52, compared to $11.40 in the prior quarter.Tangible book value per common share increased to $10.75, compared to $10.61 in the prior quarter.
Financial Performance:
Loan originations of $1.8 billion, compared to $1.6 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 of $187.2 million, compared to $180.7 million in the prior quarter, driven by:Marketplace revenue of $56.4 million, compared to $55.9 million in the prior quarter, primarily reflecting higher marketplace loan originations and improved loan sale pricing partially offset by the expected fair value adjustments on the maturing Held for Sale portfolio.Net interest income of $128.5 million, compared to $122.9 million in the prior quarter, primarily reflecting growth in total interest-earning assets at a stable net interest margin of 5.75%.Provision for credit losses of $35.6 million, compared to $31.9 million in the prior quarter.Net income increased to $14.9 million, with diluted EPS of $0.13, compared to $12.3 million, with diluted EPS of $0.11, in the prior quarter. The increase was primarily driven by higher net interest income from growth in the balance sheet.Pre-Provision Net Revenue (PPNR) of $55.0 million, compared to $48.5 million in the prior quarter, primarily driven by higher total net revenue while maintaining stable expenses.
Three Months Ended
($ in millions, except per share amounts)
June 30,
2024
March 31,
2024
June 30,
2023
Total net revenue
$ 187.2
$ 180.7
$ 232.5
Non-interest expense
132.3
132.2
151.1
Pre-provision net revenue (1)
55.0
48.5
81.4
Provision for credit losses
35.6
31.9
66.6
Income before income tax expense
19.4
16.5
14.8
Income tax expense
(4.5)
(4.3)
(4.7)
Net income
$ 14.9
$ 12.3
$ 10.1
Diluted EPS
$ 0.13
$ 0.11
$ 0.09
(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
Third Quarter 2024
Loan originations
$1.8B to $1.9B
Pre-provision net revenue (PPNR)
$40M to $50M
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 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 second 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, July 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 895739, 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 August 6, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 305717. 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:
IR@lendingclub.com
Media Contact:
Press@lendingclub.com
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.
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
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
Q/Q
Y/Y
Operating Highlights:
Non-interest income
$ 58,713
$ 57,800
$ 54,129
$ 63,844
$ 85,818
2 %
(32) %
Net interest income
128,528
122,888
131,477
137,005
146,652
5 %
(12) %
Total net revenue
187,241
180,688
185,606
200,849
232,470
4 %
(19) %
Non-interest expense
132,258
132,233
130,015
128,035
151,079
0 %
(12) %
Pre-provision net revenue(1)
54,983
48,455
55,591
72,814
81,391
13 %
(32) %
Provision for credit losses
35,561
31,927
41,907
64,479
66,595
11 %
(47) %
Income before income tax expense
19,422
16,528
13,684
8,335
14,796
18 %
31 %
Income tax expense
(4,519)
(4,278)
(3,529)
(3,327)
(4,686)
6 %
(4) %
Net income
$ 14,903
$ 12,250
$ 10,155
$ 5,008
$ 10,110
22 %
47 %
Basic EPS
$ 0.13
$ 0.11
$ 0.09
$ 0.05
$ 0.09
18 %
44 %
Diluted EPS
$ 0.13
$ 0.11
$ 0.09
$ 0.05
$ 0.09
18 %
44 %
LendingClub Corporation Performance Metrics:
Net interest margin
5.75 %
5.75 %
6.40 %
6.91 %
7.09 %
Efficiency ratio(2)
70.6 %
73.2 %
70.0 %
63.7 %
65.0 %
Return on average equity (ROE)(3)
4.7 %
3.9 %
3.3 %
1.7 %
3.4 %
Return on average total assets (ROA)(4)
0.6 %
0.5 %
0.5 %
0.2 %
0.5 %
Marketing expense as a % of loan originations
1.47 %
1.47 %
1.44 %
1.30 %
1.19 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio
17.9 %
17.6 %
17.9 %
16.9 %
16.1 %
Tier 1 leverage ratio
12.1 %
12.5 %
12.9 %
13.2 %
12.4 %
Book value per common share
$ 11.52
$ 11.40
$ 11.34
$ 11.02
$ 11.09
1 %
4 %
Tangible book value per common share(1)
$ 10.75
$ 10.61
$ 10.54
$ 10.21
$ 10.26
1 %
5 %
Loan Originations (in millions)(5):
Total loan originations
$ 1,813
$ 1,646
$ 1,630
$ 1,508
$ 2,011
10 %
(10) %
Marketplace loans
$ 1,477
$ 1,361
$ 1,432
$ 1,182
$ 1,353
9 %
9 %
Loan originations held for investment
$ 336
$ 285
$ 198
$ 326
$ 657
18 %
(49) %
Loan originations held for investment as a % of total loan originations
19 %
17 %
12 %
22 %
33 %
Servicing Portfolio AUM (in millions)(6):
Total servicing portfolio
$ 12,999
$ 13,437
$ 14,122
$ 14,818
$ 15,669
(3) %
(17) %
Loans serviced for others
$ 8,337
$ 8,671
$ 9,336
$ 9,601
$ 10,204
(4) %
(18) %
(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
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
Q/Q
Y/Y
Balance Sheet Data:
Securities available for sale
$ 2,814,383
$ 2,228,500
$ 1,620,262
$ 795,669
$ 523,579
26 %
438 %
Loans held for sale at fair value
$ 791,059
$ 550,415
$ 407,773
$ 362,789
$ 250,361
44 %
216 %
Loans and leases held for investment at amortized cost
$ 4,228,391
$ 4,505,816
$ 4,850,302
$ 5,237,277
$ 5,533,349
(6) %
(24) %
Gross allowance for loan and lease losses (1)
$ (285,368)
$ (311,794)
$ (355,773)
$ (388,156)
$ (383,960)
(8) %
(26) %
Recovery asset value (2)
$ 56,459
$ 52,644
$ 45,386
$ 37,661
$ 28,797
7 %
96 %
Allowance for loan and lease losses
$ (228,909)
$ (259,150)
$ (310,387)
$ (350,495)
$ (355,163)
(12) %
(36) %
Loans and leases held for investment at amortized cost, net
$ 3,999,482
$ 4,246,666
$ 4,539,915
$ 4,886,782
$ 5,178,186
(6) %
(23) %
Loans held for investment at fair value (3)
$ 339,222
$ 427,396
$ 272,678
$ 344,417
$ 430,956
(21) %
(21) %
Total loans and leases held for investment (3)
$ 4,338,704
$ 4,674,062
$ 4,812,593
$ 5,231,199
$ 5,609,142
(7) %
(23) %
Whole loans held on balance sheet (4)
$ 5,129,763
$ 5,224,477
$ 5,220,366
$ 5,593,988
$ 5,859,503
(2) %
(12) %
Total assets
$ 9,586,050
$ 9,244,828
$ 8,827,463
$ 8,472,351
$ 8,342,506
4 %
15 %
Total deposits
$ 8,095,328
$ 7,521,655
$ 7,333,486
$ 7,000,263
$ 6,843,535
8 %
18 %
Total liabilities
$ 8,298,105
$ 7,978,542
$ 7,575,641
$ 7,264,132
$ 7,136,983
4 %
16 %
Total equity
$ 1,287,945
$ 1,266,286
$ 1,251,822
$ 1,208,219
$ 1,205,523
2 %
7 %
(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)
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
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 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 %
5.8 %
6.4 %
6.7 %
6.4 %
Allowance for loan and lease losses to commercial loans and leases
held for investment at amortized cost
2.7 %
1.9 %
1.8 %
2.0 %
1.9 %
Allowance for loan and lease losses to consumer loans and leases
held for investment at amortized cost
5.9 %
6.4 %
7.2 %
7.4 %
7.1 %
Gross allowance for loan and lease losses to consumer loans and
leases held for investment at amortized cost
7.5 %
7.8 %
8.3 %
8.2 %
7.7 %
Net charge-offs
$ 66,818
$ 80,483
$ 82,511
$ 68,795
$ 59,884
Net charge-off ratio (2)
6.2 %
6.9 %
6.6 %
5.1 %
4.4 %
(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:
June 30,
2024
December 31,
2023
Unsecured personal
$ 3,144,504
$ 3,726,830
Residential mortgages
178,290
183,050
Secured consumer
244,288
250,039
Total consumer loans held for investment
3,567,082
4,159,919
Equipment finance (1)
83,770
110,992
Commercial real estate
381,873
380,322
Commercial and industrial
195,666
199,069
Total commercial loans and leases held for investment
661,309
690,383
Total loans and leases held for investment at amortized cost
4,228,391
4,850,302
Allowance for loan and lease losses
(228,909)
(310,387)
Loans and leases held for investment at amortized cost, net
$ 3,999,482
$ 4,539,915
Loans held for investment at fair value (2)
339,222
272,678
Total loans and leases held for investment
$ 4,338,704
$ 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.
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:
June 30, 2024
December 31, 2023
Gross allowance for loan and lease losses (1)
$ 285,368
$ 355,773
Recovery asset value (2)
(56,459)
(45,386)
Allowance for loan and lease losses
$ 228,909
$ 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
June 30, 2024
March 31, 2024
Consumer
Commercial
Total
Consumer
Commercial
Total
Allowance for loan and lease losses, beginning of period
$ 246,280
$ 12,870
$ 259,150
$ 298,061
$ 12,326
$ 310,387
Credit loss expense for loans and leases held for investment
30,760
5,817
36,577
27,686
1,560
29,246
Charge-offs
(77,494)
(594)
(78,088)
(89,110)
(1,232)
(90,342)
Recoveries
11,183
87
11,270
9,643
216
9,859
Allowance for loan and lease losses, end of period
$ 210,729
$ 18,180
$ 228,909
$ 246,280
$ 12,870
$ 259,150
Three Months Ended
June 30, 2023
Consumer
Commercial
Total
Allowance for loan and lease losses, beginning of period
$ 333,546
$ 15,311
$ 348,857
Credit loss expense (benefit) for loans and leases held for investment
66,874
(684)
66,190
Charge-offs
(63,345)
(924)
(64,269)
Recoveries
4,086
299
4,385
Allowance for loan and lease losses, end of period
$ 341,161
$ 14,002
$ 355,163
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:
June 30, 2024
30-59
Days
60-89
Days
90 or More
Days
Total Days
Past Due
Guaranteed
Amount (1)
Unsecured personal
$ 24,837
$ 22,869
$ 23,825
$ 71,531
$ —
Residential mortgages
—
147
—
147
—
Secured consumer
1,825
622
258
2,705
—
Total consumer loans held for investment
$ 26,662
$ 23,638
$ 24,083
$ 74,383
$ —
Equipment finance
$ 18
$ —
$ 8
$ 26
$ —
Commercial real estate
7,422
384
8,569
16,375
10,894
Commercial and industrial
8,715
774
5,869
15,358
12,736
Total commercial loans and leases held for investment
$ 16,155
$ 1,158
$ 14,446
$ 31,759
$ 23,630
Total loans and leases held for investment at amortized cost
$ 42,817
$ 24,796
$ 38,529
$ 106,142
$ 23,630
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 (%)
June 30,
2024
March 31,
2024
June 30,
2023
Q2 2024
vs
Q1 2024
Q2 2024
vs
Q2 2023
Non-interest income:
Origination fees
$ 77,131
$ 70,079
$ 70,989
10 %
9 %
Servicing fees
19,869
19,592
22,015
1 %
(10) %
Gain on sales of loans
10,748
10,909
13,221
(1) %
(19) %
Net fair value adjustments
(51,395)
(44,689)
(23,442)
15 %
119 %
Marketplace revenue
56,353
55,891
82,783
1 %
(32) %
Other non-interest income
2,360
1,909
3,035
24 %
(22) %
Total non-interest income
58,713
57,800
85,818
2 %
(32) %
Total interest income
219,634
207,351
214,486
6 %
2 %
Total interest expense
91,106
84,463
67,834
8 %
34 %
Net interest income
128,528
122,888
146,652
5 %
(12) %
Total net revenue
187,241
180,688
232,470
4 %
(19) %
Provision for credit losses
35,561
31,927
66,595
11 %
(47) %
Non-interest expense:
Compensation and benefits
56,540
59,554
71,553
(5) %
(21) %
Marketing
26,665
24,136
23,940
10 %
11 %
Equipment and software
12,360
12,684
13,968
(3) %
(12) %
Depreciation and amortization
13,072
12,673
11,638
3 %
12 %
Professional services
7,804
7,091
9,974
10 %
(22) %
Occupancy
3,941
3,861
4,684
2 %
(16) %
Other non-interest expense
11,876
12,234
15,322
(3) %
(22) %
Total non-interest expense
132,258
132,233
151,079
— %
(12) %
Income before income tax expense
19,422
16,528
14,796
18 %
31 %
Income tax expense
(4,519)
(4,278)
(4,686)
6 %
(4) %
Net income
$ 14,903
$ 12,250
$ 10,110
22 %
47 %
Net income per share:
Basic EPS
$ 0.13
$ 0.11
$ 0.09
18 %
44 %
Diluted EPS
$ 0.13
$ 0.11
$ 0.09
18 %
44 %
Weighted-average common shares – Basic
111,395,025
110,685,796
107,892,590
1 %
3 %
Weighted-average common shares – Diluted
111,466,497
110,687,380
107,895,072
1 %
3 %
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1)
Three Months Ended
June 30, 2024
Three Months Ended
March 31, 2024
Three Months Ended
June 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
$ 976,330
$ 13,168
5.40 %
$ 1,217,395
$ 16,503
5.42 %
$ 1,512,700
$ 19,134
5.06 %
Securities available for sale at fair value
2,406,767
42,879
7.13 %
1,972,561
35,347
7.17 %
437,473
5,948
5.44 %
Loans held for sale at fair value
838,143
26,721
12.75 %
467,275
14,699
12.58 %
106,865
4,433
16.59 %
Loans and leases held for investment:
Unsecured personal loans
3,243,161
108,425
13.37 %
3,518,101
116,055
13.20 %
4,360,506
145,262
13.33 %
Commercial and other consumer loans
1,097,846
16,394
5.97 %
1,115,931
16,338
5.86 %
1,156,751
16,823
5.82 %
Loans and leases held for investment at amortized cost
4,341,007
124,819
11.50 %
4,634,032
132,393
11.43 %
5,517,257
162,085
11.75 %
Loans held for investment at fair value (3)
383,872
12,047
12.55 %
256,335
8,409
13.12 %
703,729
22,886
13.01 %
Total loans and leases held for investment (3)
4,724,879
136,866
11.59 %
4,890,367
140,802
11.52 %
6,220,986
184,971
11.89 %
Total interest-earning assets
8,946,119
219,634
9.82 %
8,547,598
207,351
9.70 %
8,278,024
214,486
10.36 %
Cash and due from banks and restricted cash
55,906
58,440
78,221
Allowance for loan and lease losses
(245,478)
(291,168)
(354,348)
Other non-interest earning assets
632,253
631,468
686,956
Total assets
$ 9,388,800
$ 8,946,338
$ 8,688,853
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts
$ 1,097,696
$ 10,084
3.69 %
$ 1,054,614
$ 9,410
3.59 %
$ 1,397,302
$ 7,760
2.23 %
Savings accounts and certificates of deposit
6,449,061
80,109
5.00 %
6,069,942
74,553
4.94 %
5,546,862
58,761
4.25 %
Interest-bearing deposits
7,546,757
90,193
4.81 %
7,124,556
83,963
4.74 %
6,944,164
66,521
3.84 %
Other interest-bearing liabilities (3)
56,628
913
6.45 %
26,571
500
7.53 %
64,169
1,313
8.18 %
Total interest-bearing liabilities
7,603,385
91,106
4.82 %
7,151,127
84,463
4.75 %
7,008,333
67,834
3.88 %
Non-interest bearing deposits
303,199
317,430
205,750
Other liabilities
215,608
220,544
272,142
Total liabilities
$ 8,122,192
$ 7,689,101
$ 7,486,225
Total equity
$ 1,266,608
$ 1,257,237
$ 1,202,628
Total liabilities and equity
$ 9,388,800
$ 8,946,338
$ 8,688,853
Interest rate spread
5.00 %
4.95 %
6.48 %
Net interest income and net interest margin
$ 128,528
5.75 %
$ 122,888
5.75 %
$ 146,652
7.09 %
(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.
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
June 30,
2024
December 31,
2023
Assets
Cash and due from banks
$ 19,099
$ 14,993
Interest-bearing deposits in banks
919,020
1,237,511
Total cash and cash equivalents
938,119
1,252,504
Restricted cash
31,332
41,644
Securities available for sale at fair value ($2,869,880 and $1,663,990 at amortized cost, respectively)
2,814,383
1,620,262
Loans held for sale at fair value
791,059
407,773
Loans and leases held for investment
4,228,391
4,850,302
Allowance for loan and lease losses
(228,909)
(310,387)
Loans and leases held for investment, net
3,999,482
4,539,915
Loans held for investment at fair value (1)
339,222
272,678
Property, equipment and software, net
166,150
161,517
Goodwill
75,717
75,717
Other assets
430,586
455,453
Total assets
$ 9,586,050
$ 8,827,463
Liabilities and Equity
Deposits:
Interest-bearing
$ 7,759,632
$ 7,001,680
Noninterest-bearing
335,696
331,806
Total deposits
8,095,328
7,333,486
Borrowings (1)
5,474
19,354
Other liabilities
197,303
222,801
Total liabilities
8,298,105
7,575,641
Equity
Common stock, $0.01 par value; 180,000,000 shares authorized; 111,812,215 and 110,410,602 shares issued and outstanding, respectively
1,118
1,104
Additional paid-in capital
1,685,865
1,669,828
Accumulated deficit
(361,653)
(388,806)
Accumulated other comprehensive loss
(37,385)
(30,304)
Total equity
1,287,945
1,251,822
Total liabilities and equity
$ 9,586,050
$ 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.
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
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
GAAP Net income
$ 14,903
$ 12,250
$ 10,155
$ 5,008
$ 10,110
Less: Provision for credit losses
(35,561)
(31,927)
(41,907)
(64,479)
(66,595)
Less: Income tax expense
(4,519)
(4,278)
(3,529)
(3,327)
(4,686)
Pre-provision net revenue
$ 54,983
$ 48,455
$ 55,591
$ 72,814
$ 81,391
For the three months ended
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
Non-interest income
$ 58,713
$ 57,800
$ 54,129
$ 63,844
$ 85,818
Net interest income
128,528
122,888
131,477
137,005
146,652
Total net revenue
187,241
180,688
185,606
200,849
232,470
Non-interest expense
(132,258)
(132,233)
(130,015)
(128,035)
(151,079)
Pre-provision net revenue
54,983
48,455
55,591
72,814
81,391
Provision for credit losses
(35,561)
(31,927)
(41,907)
(64,479)
(66,595)
Income before income tax expense
19,422
16,528
13,684
8,335
14,796
Income tax expense
(4,519)
(4,278)
(3,529)
(3,327)
(4,686)
GAAP Net income
$ 14,903
$ 12,250
$ 10,155
$ 5,008
$ 10,110
Tangible Book Value Per Common Share
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
GAAP common equity
$ 1,287,945
$ 1,266,286
$ 1,251,822
$ 1,208,219
$ 1,205,523
Less: Goodwill
(75,717)
(75,717)
(75,717)
(75,717)
(75,717)
Less: Intangible assets
(10,293)
(11,165)
(12,135)
(13,151)
(14,167)
Tangible common equity
$ 1,201,935
$ 1,179,404
$ 1,163,970
$ 1,119,351
$ 1,115,639
Book value per common share
GAAP common equity
$ 1,287,945
$ 1,266,286
$ 1,251,822
$ 1,208,219
$ 1,205,523
Common shares issued and outstanding
111,812,215
111,120,415
110,410,602
109,648,769
108,694,120
Book value per common share
$ 11.52
$ 11.40
$ 11.34
$ 11.02
$ 11.09
Tangible book value per common share
Tangible common equity
$ 1,201,935
$ 1,179,404
$ 1,163,970
$ 1,119,351
$ 1,115,639
Common shares issued and outstanding
111,812,215
111,120,415
110,410,602
109,648,769
108,694,120
Tangible book value per common share
$ 10.75
$ 10.61
$ 10.54
$ 10.21
$ 10.26
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SOURCE LendingClub Corporation