Press Release

LendingClub Reports First Quarter 2023 Results

04/26/2023

Net Income of $13.7M, Driven by 7% Sequential Increase in Pre-Provision Net Revenue (PPNR)

Deposits Up 13% Sequentially to $7.2B; $1.6B in Cash

SAN FRANCISCO, April 26, 2023 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the first quarter ended March 31, 2023.

"We delivered a solid quarter driven by our strategic advantages, including over 15 years of cycle-tested data, prudent and agile underwriting, and our digital marketplace bank model," said Scott Sanborn, LendingClub CEO. "While we expect continued industry and macro headwinds, these significant advantages, along with our growing online consumer deposit franchise and high-yielding short duration assets, provide us with a range of options to navigate the current macro environment while we build toward an ambitious future for the company and our growing membership base."

First Quarter 2023 Results

Balance Sheet:

  • Total assets grew 10% sequentially to $8.8 billion from $8.0 billion at December 31, 2022.
  • Deposits up 13% sequentially to $7.2 billion; FDIC-insured deposits represent approximately 86% of total deposits.
    • Cash of $1.6 billion increased 55% from December 31, 2022.
    • Available aggregate borrowing capacity of $4.1 billion as of April 26, 2023.
  • Loans and leases held for investment portfolio grew 4.6% sequentially from $5.6 billion to $5.9 billion.
  • Substantial capital with a consolidated Tier 1 leverage ratio of 12.8% and consolidated Common Equity Tier 1 capital ratio of 15.6%.
  • Book value per common share of $11.08, up 1.4% from $10.93 at December 31, 2022.
  • Tangible book value per common share of $10.23, up 1.7% from $10.06 at December 31, 2022.

Financial Performance:

  • Loan originations were $2.3 billion compared to $2.5 billion in the prior quarter.
  • Total net revenue was $245.7 million compared to $262.7 million in the prior quarter, as growth in net interest income was offset by lower marketplace revenue.
    • Net interest income increased 8% from the prior quarter to $146.7 million, primarily due to higher balance sheet growth and partially offset by lower net interest margin due to higher cost of deposits.
    • Marketplace revenue was $95.6 million compared to $123.4 million in the prior quarter, reflecting a reduction in sold marketplace volumes.
  • Net income of $13.7 million, or diluted EPS of $0.13, compared to $23.6 million, or diluted EPS of $0.22, in the prior quarter, reflecting higher credit provisioning due to growth in the held-for-investment portfolio as well as higher tax expense.
  • Pre-provision net revenue (PPNR) of $88.4 million grew 7% over the prior quarter, driven by the Company's cost reduction actions and a $9.0 million one-time revenue benefit primarily due to slower prepayments.
  • Credit quality of the held-for-investment prime loan portfolio performing in-line with expectations as portfolio seasons; provision for credit losses of $70.6 million primarily reflects $1.0 billion of quarterly loan originations held for investment.
  • Efficiency ratio improved to 64.0% from 68.5% in the prior quarter due to cost reduction actions and marketing efficiency.

Three Months Ended


($ in millions, except per share amounts)

March 31,
2023


December 31,
2022


March 31,
2022


Total net revenue

$           245.7


$            262.7


$            289.5


Non-interest expense

157.3


180.0


191.2


Pre-provision net revenue (1)

88.4


82.7


98.3









Provision for credit losses

70.6


61.5


52.5


Income before income tax benefit (expense)

17.8


21.2


45.8


Income tax benefit (expense)

(4.1)


2.4


(5.0)


Net income

$             13.7


$              23.6


$              40.8


Diluted EPS

$             0.13


$              0.22


$              0.39









Income tax benefit from release of tax valuation allowance

$                —


$                3.2


$                 —


Net income excluding income tax benefit (1)

$             13.7


$              20.4


$              40.8


Diluted EPS excluding income tax benefit (1)

$             0.13


$              0.19


$              0.39


(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, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.

Financial Outlook


Second Quarter 2023


Loan Originations

$1.9B to $2.1B


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 more than 150 billion cells of data and over $80 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 4.7 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.

Conference Call and Webcast Information

The LendingClub first quarter 2023 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, April 26, 2023. 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 (929) 526-1599, with Access Code 900462, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until May 3, 2023, by calling +1 (929) 458-6194 or outside the U.S. +44 (204) 525-0658, with Access Code 850910. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), Twitter handle (@LendingClub) 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, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, 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, Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are important measures because they reflect 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. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in 2022. Diluted EPS Excluding Income Tax Benefit is a non-GAAP financial measure calculated by dividing Net Income Excluding Income Tax Benefit by the weighted-average diluted common shares outstanding.

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 beginning on page 13 of this release.

Safe Harbor Statement

Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing customers; our ability to realize the expected benefits from recent initiatives, including our cost reduction plan and the acquisition of a $1 billion loan portfolio; competition; overall economic conditions; the interest rate environment; the regulatory environment; demand for the types of loans facilitated by us; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS

(In thousands, except percentages or as noted)

(Unaudited)





As of and for the three months ended


% Change



March 31,
2023


December 31,
2022


September 30,

2022


June 30,

2022


March 31,
2022


Q/Q


Y/Y


Operating Highlights:


Non-interest income

$      98,990


$      127,465


$      181,237


$   213,832


$    189,857


(22) %


(48) %


Net interest income

146,704


135,243


123,676


116,226


99,680


8 %


47 %


Total net revenue

245,694


262,708


304,913


330,058


289,537


(6) %


(15) %


Non-interest expense

157,308


180,044


186,219


209,386


191,204


(13) %


(18) %


Pre-provision net revenue(1)

88,386


82,664


118,694


120,672


98,333


7 %


(10) %


Provision for credit losses

70,584


61,512


82,739


70,566


52,509


15 %


34 %


Income before income tax benefit (expense)

17,802


21,152


35,955


50,106


45,824


(16) %


(61) %


Income tax benefit (expense)

(4,136)


2,439


7,243


131,954


(4,988)


N/M


(17) %


Net income

13,666


23,591


43,198


182,060


40,836


(42) %


(67) %


Income tax benefit from release of tax valuation allowance


3,180


5,015


135,300



N/M


N/M


Net income excluding income tax benefit(1)(2)

$      13,666


$        20,411


$        38,183


$     46,760


$      40,836


(33) %


(67) %

















Basic EPS – common stockholders

$          0.13


$            0.22


$            0.41


$         1.77


$          0.40


(41) %


(68) %


Diluted EPS – common stockholders

$          0.13


$            0.22


$            0.41


$         1.73


$          0.39


(41) %


(67) %


Diluted EPS excluding income tax benefit(1)(2)

$          0.13


$            0.19


$            0.36


$         0.45


$          0.39


(32) %


(67) %

















LendingClub Corporation Performance Metrics:


Net interest margin

7.5 %


7.8 %


8.3 %


8.5 %


8.3 %






Efficiency ratio(3)

64.0 %


68.5 %


61.1 %


63.4 %


66.0 %






Return on average equity (ROE)(4)

4.6 %


7.2 %


14.2 %


33.8 %


18.7 %






Return on average total assets (ROA)(5)

0.7 %


1.1 %


2.5 %


5.5 %


3.1 %






Marketing expense as a % of loan originations

1.2 %


1.4 %


1.3 %


1.6 %


1.7 %





















LendingClub Corporation Capital Metrics:


Common equity Tier 1 capital ratio

15.6 %


15.8 %


18.3 %


20.0 %


20.6 %






Tier 1 leverage ratio

12.8 %


14.1 %


15.7 %


16.2 %


15.6 %






Book value per common share

$        11.08


$          10.93


$          10.67


$       10.41


$          8.68


1 %


28 %


Tangible book value per common share(1)

$        10.23


$          10.06


$            9.78


$         9.50


$          7.75


2 %


32 %

















Loan Originations (in millions)(6):















Total loan originations

$        2,288


$          2,524


$          3,539


$       3,840


$        3,217


(9) %


(29) %


Marketplace loans

$        1,286


$          1,824


$          2,386


$       2,819


$        2,360


(29) %


(46) %


Loan originations held for investment

$        1,002


$             701


$          1,153


$       1,021


$           856


43 %


17 %


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

44 %


28 %


33 %


27 %


27 %





















Servicing Portfolio AUM (in millions)(7):


Total servicing portfolio

$       16,060


$         16,157


$         15,929


$      14,783


$       13,341


(1) %


20 %


Loans serviced for others

$       10,504


$         10,819


$         11,807


$      11,382


$       10,475


(3) %


— %


 

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS (Continued)

(In thousands, except percentages or as noted)

(Unaudited)





As of and for the three months ended


% Change



March 31,
2023


December 31,
2022


September 30,

2022


June 30,

2022


March 31,
2022


Q/Q


Y/Y


Balance Sheet Data:


Loans and leases held for investment at amortized cost, net, excluding PPP loans

$ 5,091,969


$   4,638,331


$   4,414,347


$  3,692,667


$ 3,049,325


10 %


67 %


PPP loans

$      51,112


$        66,971


$        89,379


$   118,794


$    184,986


(24) %


(72) %


Total loans and leases held for investment at amortized cost, net(8)

$ 5,143,081


$   4,705,302


$   4,503,726


$  3,811,461


$ 3,234,311


9 %


59 %


Loans held for investment at fair value

$    748,618


$      925,938


$        15,057


$     20,583


$      15,384


(19) %


4,766 %


Total loans and leases held for investment

$ 5,891,699


$   5,631,240


$   4,518,783


$  3,832,044


$ 3,249,695


5 %


81 %


Total assets

$ 8,754,018


$   7,979,747


$   6,775,074


$  6,186,765


$ 5,574,425


10 %


57 %


Total deposits

$ 7,218,854


$   6,392,553


$   5,123,506


$  4,527,672


$ 3,977,477


13 %


81 %


Total liabilities

$ 7,563,276


$   6,815,453


$   5,653,664


$  5,107,648


$ 4,686,991


11 %


61 %


Total equity

$ 1,190,742


$   1,164,294


$   1,121,410


$  1,079,117


$    887,434


2 %


34 %




N/M – Not meaningful


(1)

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


(2)

Excludes fourth, third and second quarter 2022 income tax benefit of $3.2 million, $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance.


(3)

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


(4)

Calculated as annualized net income (which excludes the income tax benefit from the release of the deferred tax asset valuation allowance in the periods it did not occur) divided by average equity for the period presented.


(5)

Calculated as annualized net income (which excludes the income tax benefit from the release of the deferred tax asset valuation allowance in the periods it did not occur) divided by average total assets for the period presented.


(6)

Includes unsecured personal loans and auto loans only.


(7)

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.


(8)

Excludes loans held for investment at fair value, which primarily consists of a loan portfolio that was acquired in the fourth quarter of 2022.


 

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


As of and for the three months ended



March 31,
2023


December 31,
2022


September 30,
2022


June 30,

2022


March 31,

2022


Asset Quality Metrics:


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

6.4 %


6.5 %


6.3 %


6.0 %


5.5 %


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

7.1 %


7.3 %


7.2 %


6.9 %


6.6 %


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

2.0 %


2.0 %


1.9 %


2.0 %


1.8 %


Net charge-offs

$          49,845


$          37,148


$          22,658


$          14,778


$            8,632


Net charge-off ratio(1)

3.8 %


3.0 %


2.1 %


1.6 %


1.2 %




(1)

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

 

LENDINGCLUB CORPORATION

LOANS AND LEASES HELD FOR INVESTMENT

(In thousands)

(Unaudited)




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



March 31,
2023


December 31,
2022


Unsecured personal

$       4,319,148


$       3,866,373


Residential mortgages

197,728


199,601


Secured consumer

212,748


194,634


Total consumer loans held for investment

4,729,624


4,260,608


Equipment finance (1)

153,905


160,319


Commercial real estate

372,770


373,501


Commercial and industrial (2)

235,639


238,726


Total commercial loans and leases held for investment

762,314


772,546


Total loans and leases held for investment at amortized cost

5,491,938


5,033,154


Allowance for loan and lease losses

(348,857)


(327,852)


Loans and leases held for investment at amortized cost, net

$       5,143,081


$       4,705,302


Loans held for investment at fair value

748,618


925,938


Total loans and leases held for investment

$       5,891,699


$       5,631,240




(1)

Comprised of sales-type leases for equipment.

(2)

Includes $51.1 million and $67.0 million of Paycheck Protection Program (PPP) loans as of March 31, 2023 and

December 31, 2022, respectively. Such loans are guaranteed by the Small Business Association and, therefore,

the company determined no allowance for expected credit losses is required on these loans.

 

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands)

(Unaudited)


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





Three Months Ended



March 31, 2023


December 31, 2022



Consumer


Commercial


Total


Consumer


Commercial


Total


Allowance for loan and lease losses, beginning of period

$    312,489


$        15,363


$ 327,852


$    288,138


$        15,063


$ 303,201


Credit loss expense for loans and leases held for investment

70,684


166


70,850


61,392


407


61,799


Charge-offs

(52,212)


(351)


(52,563)


(38,579)


(225)


(38,804)


Recoveries

2,585


133


2,718


1,538


118


1,656


Allowance for loan and lease losses, end of period

$    333,546


$        15,311


$ 348,857


$    312,489


$        15,363


$ 327,852


 


Three Months Ended



March 31, 2022



Consumer


Commercial


Total


Allowance for loan and lease losses, beginning of period

$    128,812


$        15,577


$ 144,389


Credit loss expense for loans and leases held for investment

53,718


(1,490)


52,228


Charge-offs

(9,017)


(72)


(9,089)


Recoveries

344


113


457


Allowance for loan and lease losses, end of period

$    173,857


$        14,128


$ 187,985


 

LENDINGCLUB CORPORATION

PAST DUE LOANS AND LEASES HELD FOR INVESTMENT

(In thousands)

(Unaudited)

 

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



March 31, 2023

30-59
Days


60-89
Days


90 or More
Days


Total Days
Past Due


Unsecured personal

$      26,941


$      19,759


$      18,984


$             65,684


Residential mortgages

230



167


397


Secured consumer

1,922


260


187


2,369


Total consumer loans held for investment

$      29,093


$      20,019


$      19,338


$             68,450











Equipment finance

$        3,020


$              —


$           771


$               3,791


Commercial real estate

8,251


2,112


103


10,466


Commercial and industrial (1)

941



1,608


2,549


Total commercial loans and leases held for investment (1)

$      12,212


$        2,112


$         2,482


$             16,806


Total loans and leases held for investment at amortized cost (1)

$      41,305


$      22,131


$       21,820


$             85,256


 

December 31, 2022

30-59
Days


60-89
Days


90 or More
Days



Total Days
Past Due

Unsecured personal

$      21,016


$      16,418


$      16,255



$             53,689

Residential mortgages


254


331



585

Secured consumer

1,720


382


188



2,290

Total consumer loans held for investment

$      22,736


$      17,054


$       16,774



$             56,564










Equipment finance

$        3,172


$              —


$            859



$               4,031

Commercial real estate


102




102

Commercial and industrial (1)



1,643



1,643

Total commercial loans and leases held for investment (1)

$        3,172


$            102


$         2,502



$               5,776

Total loans and leases held for investment at amortized cost (1)

$      25,908


$       17,156


$       19,276



$             62,340


(1)    Past due PPP loans are excluded from the tables.

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)





Three Months Ended


Change (%)



March 31,
2023


December 31,
2022


March 31,
2022


Q1 2023

vs

Q4 2022


Q1 2023

vs

Q1 2022


Non-interest income:











Origination fees

$         70,543


$        100,692


$       122,093


(30) %


(42) %


Servicing fees

26,380


20,169


18,514


31 %


42 %


Gain on sales of loans

14,125


18,352


24,110


(23) %


(41) %


Net fair value adjustments

(15,414)


(15,774)


15,249


(2) %


(201) %


Marketplace revenue

95,634


123,439


179,966


(23) %


(47) %


Other non-interest income

3,356


4,026


9,891


(17) %


(66) %


Total non-interest income

98,990


127,465


189,857


(22) %


(48) %













Total interest income

202,413


173,999


111,653


16 %


81 %


Total interest expense

55,709


38,756


11,973


44 %


365 %


Net interest income

146,704


135,243


99,680


8 %


47 %













Total net revenue

245,694


262,708


289,537


(6) %


(15) %













Provision for credit losses

70,584


61,512


52,509


15 %


34 %













Non-interest expense:











Compensation and benefits

73,307


87,768


81,610


(16) %


(10) %


Marketing

26,880


35,139


55,080


(24) %


(51) %


Equipment and software

13,696


13,200


11,046


4 %


24 %


Depreciation and amortization

12,354


11,554


11,039


7 %


12 %


Professional services

9,058


10,029


12,406


(10) %


(27) %


Occupancy

4,310


4,698


6,019


(8) %


(28) %


Other non-interest expense

17,703


17,656


14,004


— %


26 %


Total non-interest expense

157,308


180,044


191,204


(13) %


(18) %













Income before income tax benefit (expense)

17,802


21,152


45,824


(16) %


(61) %


Income tax benefit (expense)

(4,136)


2,439


(4,988)


N/M


(17) %


Net income

$         13,666


$          23,591


$         40,836


(42) %


(67) %













Net income per share: 











Basic EPS – common stockholders

$            0.13


$              0.22


$            0.40


(41) %


(68) %


Diluted EPS – common stockholders

$            0.13


$              0.22


$            0.39


(41) %


(67) %


Weighted-average common shares – Basic

106,912,139


105,650,177


101,493,561


1 %


5 %


Weighted-average common shares – Diluted

106,917,770


105,984,612


105,052,904


1 %


2 %



N/M – Not meaningful

 

LENDINGCLUB CORPORATION

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)





Consolidated LendingClub Corporation (1)



Three Months Ended

March 31, 2023


Three Months Ended

December 31, 2022


Three Months Ended

March 31, 2022



Average
Balance


Interest
Income/

Expense


Average
Yield/

Rate


Average
Balance


Interest
Income/

Expense


Average
Yield/

Rate


Average
Balance


Interest
Income/

Expense


Average
Yield/

Rate


Interest-earning assets (2)



















Cash, cash equivalents, restricted cash and other

$ 1,220,677


$  13,714


4.49 %


$ 1,139,887


$   10,595


3.72 %


$    892,921


$       688


0.31 %


Securities available for sale at fair value

362,960


3,900


4.30 %


349,512


3,359


3.84 %


325,155


4,511


5.55 %


Loans held for sale at fair value

110,580


5,757


20.83 %


114,851


5,724


19.93 %


255,139


7,450


11.68 %


Loans and leases held for investment:



















Unsecured personal loans

4,066,713


133,687


13.15 %


3,825,808


125,872


13.16 %


2,060,323


78,376


15.22 %


Commercial and other consumer loans

1,175,504


16,780


5.71 %


1,164,326


15,197


5.22 %


1,075,412


13,066


4.86 %


Loans and leases held for investment at amortized cost

5,242,217


150,467


11.48 %


4,990,134


141,069


11.31 %


3,135,735


91,442


11.66 %


Loans held for investment at fair value

836,313


26,892


12.86 %


308,570


10,862


14.08 %


18,523


593


12.80 %


Total loans and leases held for investment

6,078,530


177,359


11.67 %


5,298,704


151,931


11.47 %


3,154,258


92,035


11.67 %


Retail and certificate loans held for investment at fair value

46,525


1,683


14.47 %


66,469


2,390


14.38 %


198,813


6,969


14.02 %


Total interest-earning assets

7,819,272


202,413


10.35 %


6,969,423


173,999


9.99 %


4,826,286


111,653


9.25 %





















Cash and due from banks and restricted cash

71,878






64,907






92,683






Allowance for loan and lease losses

(338,359)






(314,861)






(163,631)






Other non-interest earning assets

666,650






613,664






486,363






Total assets

$ 8,219,441






$ 7,333,133






$ 5,241,701

























Interest-bearing liabilities



















Interest-bearing deposits:



















Checking and money market accounts

$ 1,633,691


$    7,568


1.88 %


$ 1,929,260


$     7,500


1.54 %


$ 2,240,450


$    1,724


0.31 %


Savings accounts and certificates of deposit

4,747,478


45,705


3.90 %


3,576,205


28,251


3.13 %


1,071,133


1,714


0.64 %


Interest-bearing deposits

6,381,169


53,273


3.39 %


5,505,465


35,751


2.58 %


3,311,583


3,438


0.42 %


Retail notes, certificates and secured borrowings

46,525


1,683


14.47 %


66,469


2,390


14.38 %


198,813


6,969


14.02 %


Other interest-bearing liabilities

107,520


753


2.80 %


105,834


615


2.33 %


312,690


1,566


2.00 %


Total interest-bearing liabilities

6,535,214


55,709


3.46 %


5,677,768


38,756


2.71 %


3,823,086


11,973


1.25 %





















Non-interest bearing deposits

241,954






251,686






227,337






Other liabilities

263,868






266,558






319,241






Total liabilities

$ 7,041,036






$ 6,196,012






$ 4,369,664

























Total equity

$ 1,178,405






$ 1,137,121






$    872,037






Total liabilities and equity

$ 8,219,441






$ 7,333,133






$ 5,241,701

























Interest rate spread





6.90 %






7.28 %






8.00 %





















Net interest income and net interest margin



$  146,704


7.50 %




$ 135,243


7.76 %




$  99,680


8.26 %




(1)

Consolidated presentation reflects intercompany eliminations.

(2)

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

 

LENDINGCLUB CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)





March 31,
2023


December 31,
2022


Assets





Cash and due from banks

$            22,732


$         23,125


Interest-bearing deposits in banks

1,614,265


1,033,905


Total cash and cash equivalents

1,636,997


1,057,030


Restricted cash

47,342


67,454


Securities available for sale at fair value ($428,395 and $399,668 at amortized cost, respectively)

380,028


345,702


Loans held for sale at fair value

44,647


110,400


Loans and leases held for investment

5,491,938


5,033,154


Allowance for loan and lease losses

(348,857)


(327,852)


Loans and leases held for investment, net

5,143,081


4,705,302


Loans held for investment at fair value

748,618


925,938


Retail and certificate loans held for investment at fair value

38,855


55,425


Property, equipment and software, net

144,041


136,473


Goodwill

75,717


75,717


Other assets

494,692


500,306


Total assets

$        8,754,018


$     7,979,747


Liabilities and Equity





Deposits:





Interest-bearing

$        7,018,014


$     6,158,560


Noninterest-bearing

200,840


233,993


Total deposits

7,218,854


6,392,553


Borrowings

52,980


74,858


Retail notes, certificates and secured borrowings at fair value

38,855


55,425


Other liabilities

252,587


292,617


Total liabilities

7,563,276


6,815,453


Equity





Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 shares issued and outstanding



Common stock, $0.01 par value; 180,000,000 shares authorized; 107,460,734 and 106,546,995 shares issued and outstanding, respectively

1,075


1,065


Additional paid-in capital

1,637,283


1,628,590


Accumulated deficit

(414,079)


(427,745)


Accumulated other comprehensive loss

(33,537)


(37,616)


Total equity

1,190,742


1,164,294


Total liabilities and equity

$        8,754,018


$     7,979,747


 

LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)


Pre-Provision Net Revenue






For the three months ended




March 31,

2023


December 31,

2022


September 30,
2022


June 30,
2022


March 31,

2022


GAAP Net income

$          13,666


$           23,591


$             43,198


$     182,060


$          40,836


Less: Provision for credit losses

(70,584)


(61,512)


(82,739)


(70,566)


(52,509)


Less: Income tax benefit (expense)

(4,136)


2,439


7,243


131,954


(4,988)


Pre-provision net revenue

$          88,386


$           82,664


$           118,694


$     120,672


$          98,333


 



For the three months ended




March 31,

2023


December 31,

2022


September 30,
2022


June 30,
2022


March 31,

2022


Non-interest income

$          98,990


$         127,465


$           181,237


$     213,832


$        189,857


Net interest income

146,704


135,243


123,676


116,226


99,680


Total net revenue

245,694


262,708


304,913


330,058


289,537


Non-interest expense

(157,308)


(180,044)


(186,219)


(209,386)


(191,204)


Pre-provision net revenue

88,386


82,664


118,694


120,672


98,333


Provision for credit losses

(70,584)


(61,512)


(82,739)


(70,566)


(52,509)


Income before income tax benefit (expense)

17,802


21,152


35,955


50,106


45,824


Income tax benefit (expense)

(4,136)


2,439


7,243


131,954


(4,988)


GAAP Net income

$          13,666


$           23,591


$             43,198


$     182,060


$          40,836


 

Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit




For the three months ended




December 31,

2022


September 30,
2022


June 30,
2022


GAAP Net income

$            23,591


$            43,198


$           182,060


Less: Income tax benefit from release of tax valuation allowance

3,180


5,015


135,300


Net income excluding income tax benefit

$            20,411


$            38,183


$             46,760










GAAP Diluted EPS – common stockholders

$                0.22


$                0.41


$                 1.73










(A)

Income tax benefit from release of tax valuation allowance

$              3,180


$              5,015


$           135,300


(B)

Weighted-average common shares – Diluted

105,984,612


105,853,938


105,042,626


(A/B)

Diluted EPS impact of income tax benefit

$                0.03


$                0.05


$                 1.29










Diluted EPS excluding income tax benefit

$                0.19


$                0.36


$                 0.44


 

LENDINGCLUB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Continued)

(In thousands, except share and per share data)

(Unaudited)




Tangible Book Value Per Common Share



March 31,

2023


December 31,

2022


September 30,
2022


June 30,
2022


March 31,

2022


GAAP common equity

$     1,190,742


$     1,164,294


$       1,121,410


$  1,079,117


$        887,434


Less: Goodwill

(75,717)


(75,717)


(75,717)


(75,717)


(75,717)


Less: Intangible assets

(15,201)


(16,334)


(17,512)


(18,690)


(19,886)


Tangible common equity

$     1,099,824


$     1,072,243


$       1,028,181


$     984,710


$        791,831













Book value per common share











GAAP common equity

$     1,190,742


$     1,164,294


$       1,121,410


$  1,079,117


$        887,434


Common shares issued and outstanding

107,460,734


106,546,995


105,088,761


103,630,776


102,194,037


Book value per common share

$            11.08


$             10.93


$               10.67


$          10.41


$               8.68













Tangible book value per common share











Tangible common equity

$     1,099,824


$     1,072,243


$       1,028,181


$     984,710


$        791,831


Common shares issued and outstanding

107,460,734


106,546,995


105,088,761


103,630,776


102,194,037


Tangible book value per common share

$            10.23


$             10.06


$                 9.78


$            9.50


$               7.75


 

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SOURCE LendingClub Corporation