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
