Technology
LendingClub Reports Third Quarter 2024 Results
Published
3 months agoon
By
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.
“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:
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 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