Release Details

LendingClub Reports First Quarter 2022 Results

April 27, 2022
PDF Version

Delivers Record Revenue and Net Income  
Revenue More than Doubles and Net Income Increases Over $85 million Year-over-Year
Raises 2022 Outlook

SAN FRANCISCO, April 27, 2022 /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, 2022

"We grew our member base beyond four million to serve more everyday Americans who are looking to refinance out of higher cost credit card debt, save more of what they earn and find a better way to bank," said Scott Sanborn, LendingClub's CEO. "With another quarter of record results, we are clearly demonstrating the power of our loyal customers, significant data advantage and differentiated marketplace bank model. We believe we are well positioned to execute on our strategy and outperform the competition while helping our members effectively navigate the ever changing economic landscape."

Record First Quarter 2022 Results 

  • Revenue of $289.5 million grew 174% year-over-year, outpacing originations growth of 117%.
    • Recurring stream of net interest income grew 20% sequentially to $99.7 million and increased 439% year-over-year.
      • LendingClub Bank's net interest margin increased sequentially to 8.6% from 8.3% and was up from 3.3% a year earlier, primarily reflecting growth in personal loans which generate a higher yield.
      • Total loans held for investment (excluding PPP) grew 23% from December 31, 2021 and 116% from March 31, 2021.
    •  Marketplace revenue of $180.0 million grew 6% sequentially and 120% year-over-year, reflecting growth in marketplace originations and strong platform investor demand.
  • Deposits of $4.0 billion were up 27% from December 31, 2021 and 68% from March 31, 2021, supporting growth in loans held for investment.
  • Provision for credit losses was $52.5 million, reflecting 23% growth in loans held for investment (excluding PPP) from December 31, 2021. Credit quality of our retained portfolio remained strong given the credit profile of our borrowers with an average FICO of 727.
  • Net income of $40.8 million rose 40% sequentially and by $87.9 million year-over-year.
  • Diluted earnings per share of $0.39 was up 44% sequentially and compared to a loss of $0.49 per share in the first quarter of 2021. The improvement in diluted earnings per share reflected increased revenue and greater operating efficiency.
  • Pre-tax, pre-provision income of $98.3 million increased 33% sequentially and by $126.8 million from the first quarter of 2021, consistent with revenue growth and operating efficiency which drove earnings growth for the same periods.

 

Three Months Ended 


 

($ in millions)

March 31,
2022 


 

December 31,
2021 


 

March 31,
2021 


 

Total net revenue

$              289.5


 

$                262.2


 

$              105.8


 

Non-interest expense

191.2


 

188.2


 

134.3


 

Pre-tax, pre-provision income (loss)

98.3


 

74.0


 

(28.5)


 

Provision for credit losses

52.5


 

45.1


 

21.5


 

Income tax benefit (expense)

(5.0)


 

0.2


 

2.8


 

Consolidated net income (loss)

$                 40.8


 

$                  29.1


 

$               (47.1)


 

Diluted EPS

$                 0.39


 

$                  0.27


 

$               (0.49)


 

 

Financial Outlook 


 

 
 

(millions)

Second Quarter
2022 

Full Year
2022 

Versus Prior Full Year 2022
Guidance 


 

Total revenue

$295M to $305M

$1.15B to $1.25B

 +$50M


 

Consolidated net income

$40M to $45M

$145M to $165M

 +$15M


 

 

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 $70 billion in loans, our artificial intelligence-driven 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 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 2022 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, April 27, 2022. 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 (844) 200-6205, or outside the U.S. +1 (929) 526-1599, with Access Code 007261, 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 4, 2022, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 997383. 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 

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; competition; overall economic conditions; 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)


 

The information in the following tables is presented for the consolidated LendingClub Corporation, unless specifically noted for LendingClub Bank, the company's wholly-owned subsidiary:


 

 

As of and for the three months ended 


 

% Change 


 

March 31, 
2022 


 

December 31, 
2021 


 

September 30, 

2021 


 

June 30, 

2021 


 

March 31, 
2021 


 

Q/Q 


 

Y/Y 

Operating Highlights: 

Non-interest income

$   189,857


 

$     179,111


 

$      180,878


 

$   158,476


 

$     87,334


 

6 %


 

117 %

Net interest income

99,680


 

83,132


 

65,288


 

45,905


 

18,506


 

20 %


 

439 %

Total net revenue

289,537


 

262,243


 

246,166


 

204,381


 

105,840


 

10 %


 

174 %

Non-interest expense

191,204


 

188,220


 

178,775


 

160,139


 

134,252


 

2 %


 

42 %

Pre-tax, pre-provision income (loss)

98,333


 

74,023


 

67,391


 

44,242


 

(28,412)


 

33 %


 

N/M

Provision for credit losses

52,509


 

45,149


 

37,524


 

34,634


 

21,493


 

16 %


 

144 %

Income tax benefit (expense)

(4,988)


 

234


 

(2,682)


 

(237)


 

2,821


 

N/M


 

N/M

Consolidated net income (loss)

$     40,836


 

$       29,108


 

$        27,185


 

$       9,371


 

$    (47,084)


 

40 %


 

N/M


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic EPS – common stockholders

$         0.40


 

$           0.29


 

$            0.27


 

$         0.10


 

$        (0.49)


 

38 %


 

N/M

Diluted EPS – common stockholders

$         0.39


 

$           0.27


 

$            0.26


 

$         0.09


 

$        (0.49)


 

44 %


 

N/M


 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Bank Performance Metrics: 

Net interest margin

8.6 %


 

8.3 %


 

7.1 %


 

5.5 %


 

3.3 %


 
 
 
 

Efficiency ratio (1)

63.6 %


 

69.5 %


 

67.5 %


 

69.0 %


 

104.8 %


 
 
 
 

Return on average equity (ROE)

22.5 %


 

21.7 %


 

26.5 %


 

34.7 %


 

N/A


 
 
 
 

Return on average total assets (ROA)

3.1 %


 

3.1 %


 

3.7 %


 

4.7 %


 

N/A


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Bank Capital Ratios: 

Common Equity Tier 1 Capital Ratio

16.0 %


 

16.7 %


 

18.0 %


 

18.7 %


 

20.9 %


 
 
 
 

Tier 1 Leverage Ratio

13.2 %


 

14.3 %


 

14.1 %


 

13.5 %


 

12.9 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Consolidated LendingClub Corporation Performance Metrics: 

Net interest margin

8.3 %


 

7.6 %


 

6.3 %


 

4.7 %


 

1.8 %


 
 
 
 

Efficiency ratio (1)

66.0 %


 

71.8 %


 

72.6 %


 

78.4 %


 

126.8 %


 
 
 
 

Return on average equity (ROE)

18.7 %


 

14.1 %


 

13.8 %


 

5.0 %


 

N/A


 
 
 
 

Return on average total assets (ROA)

3.1 %


 

2.4 %


 

2.4 %


 

0.8 %


 

N/A


 
 
 
 

Marketing expense as a % of loan originations

1.7 %


 

1.7 %


 

1.6 %


 

1.3 %


 

1.3 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loan originations (in millions) (2): 


 
 
 
 
 
 
 
 
 
 
 
 
 

Total loan originations

$       3,217


 

$         3,069


 

$          3,107


 

$       2,722


 

$       1,483


 

5 %


 

117 %

Marketplace loans

$       2,360


 

$         2,308


 

$          2,471


 

$       2,182


 

$       1,139


 

2 %


 

107 %

Loan originations held for investment

$          856


 

$            761


 

$             636


 

$          541


 

$          344


 

12 %


 

149 %

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

27 %


 

25 %


 

20 %


 

20 %


 

23 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Servicing portfolio AUM (in millions) (3)

$     13,341


 

$       12,463


 

$        11,592


 

$     10,741


 

$     10,271


 

7 %


 

30 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Balance Sheet Data: 

Loans and leases held for investment, net, excluding PPP loans

$ 3,049,325


 

$  2,486,440


 

$   2,235,698


 

$  1,791,492


 

$  1,414,900


 

23 %


 

116 %

PPP loans

$    184,986


 

$     268,297


 

$      367,558


 

$     507,553


 

$     664,400


 

(31) %


 

(72) %

Total loans and leases held for investment, net

$ 3,234,311


 

$  2,754,737


 

$   2,603,256


 

$  2,299,045


 

$  2,079,300


 

17 %


 

56 %

Total assets

$ 5,574,425


 

$  4,900,319


 

$   4,750,760


 

$  4,370,101


 

$  4,491,089


 

14 %


 

24 %

Total deposits

$ 3,977,477


 

$  3,135,788


 

$   2,838,719


 

$  2,539,704


 

$  2,373,437


 

27 %


 

68 %

Total liabilities

$ 4,686,991


 

$  4,050,077


 

$   3,945,970


 

$  3,607,742


 

$  3,757,954


 

16 %


 

25 %

Total equity

$    887,434


 

$     850,242


 

$      804,790


 

$     762,359


 

$     733,135


 

4 %


 

21 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Allowance Ratios: 

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

5.5 %


 

5.0 %


 

3.9 %


 

3.0 %


 

1.7 %


 
 
 
 

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

5.8 %


 

5.5 %


 

4.5 %


 

3.8 %


 

2.5 %


 
 
 
 

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

6.6 %


 

6.4 %


 

5.2 %


 

4.3 %


 

2.3 %


 
 
 
 

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

1.8 %


 

1.8 %


 

1.6 %


 

1.5 %


 

1.3 %


 
 
 
 

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

2.3 %


 

2.6 %


 

2.6 %


 

2.8 %


 

1.7 %


 
 
 
 

 
 

N/M – Not meaningful

N/A – Not applicable

(1) 

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

(2) 

Includes unsecured personal loans, auto loans, and education and patient finance loans only.

(3)  

Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and retained for investment by the Company.

 

 

LENDINGCLUB CORPORATION 

LOANS AND LEASES HELD FOR INVESTMENT 

(In thousands, except percentages or as noted)

(Unaudited)

 


 

 

March 31, 
2022 


 

December 31,
2021 

Unsecured personal

$            2,358,792


 

$            1,804,578

Residential mortgages

169,117


 

151,362

Secured consumer

93,600


 

65,976

Total consumer loans held for investment

2,621,509


 

2,021,916

Equipment finance (1)

143,780


 

149,155

Commercial real estate

313,710


 

310,399

Commercial and industrial (2)

343,297


 

417,656

Total commercial loans and leases held for investment

800,787


 

877,210

Total loans and leases held for investment

3,422,296


 

2,899,126

Allowance for loan and lease losses

(187,985)


 

(144,389)

Loans and leases held for investment, net

$            3,234,311


 

$            2,754,737


 
 

(1) 

Comprised of sales-type leases for equipment.

(2)   

Includes $185.0 million and $268.3 million of Paycheck Protection Program (PPP) loans as of March 31, 2022 and December 31, 2021, 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, except percentages or as noted)

(Unaudited)


 

 

Three Months Ended 


 

March 31, 2022 


 

December 31, 2021 


 

Consumer 


 

Commercial 


 

Total 


 

Consumer 


 

Commercial 


 

Total 

Allowance for loan and lease losses, beginning of period

$     128,812


 

$          15,577


 

$ 144,389


 

$       88,631


 

$          16,105


 

$ 104,736

Credit loss expense for loans and leases held for investment

53,718


 

(1,490)


 

52,228


 

45,595


 

(306)


 

45,289

Charge-offs

(9,017)


 

(72)


 

(9,089)


 

(5,557)


 

(313)


 

(5,870)

Recoveries

344


 

113


 

457


 

143


 

91


 

234

Allowance for loan and lease losses, end of period

$     173,857


 

$          14,128


 

$ 187,985


 

$     128,812


 

$          15,577


 

$ 144,389

 

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

(In thousands, except share and per share data)

(Unaudited)

 


 

 

Three Months Ended 


 

Change (%) 


 

March 31, 
2022 


 

December 31, 
2021 


 

March 31, 
2021 


 

Q1 2022 

vs 

Q1 2021 


 

Q1 2022 

vs 

Q4 2021 

Non-interest income: 


 
 
 
 
 
 
 
 
 

Marketplace revenue (1)

$          179,966


 

$          170,562


 

$            81,727


 

120 %


 

6 %

Other non-interest income

9,891


 

8,549


 

5,607


 

76 %


 

16 %

Total non-interest income 

189,857


 

179,111


 

87,334


 

117 %


 

6 %


 
 
 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 
 
 

Interest on loans held for sale

7,450


 

7,153


 

5,157


 

44 %


 

4 %

Interest and fees on loans and leases held for investment

91,442


 

76,964


 

15,301


 

N/M


 

19 %

Interest on retail and certificate loans held for investment at fair value

6,969


 

9,236


 

20,262


 

(66) %


 

(25) %

Interest on other loans held for investment at fair value

593


 

762


 

1,479


 

(60) %


 

(22) %

Interest on securities available for sale

4,511


 

3,071


 

2,235


 

102 %


 

47 %

Other interest income

688


 

469


 

156


 

N/M


 

47 %

Total interest income 

111,653


 

97,655


 

44,590


 

150 %


 

14 %


 
 
 
 
 
 
 
 
 
 

Interest expense: 


 
 
 
 
 
 
 
 
 

Interest on deposits

3,438


 

2,616


 

1,014


 

239 %


 

31 %

Interest on short-term borrowings

435


 

561


 

1,264


 

(66) %


 

(22) %

Interest on retail notes, certificates and secured borrowings

6,969


 

9,236


 

20,262


 

(66) %


 

(25) %

Interest on Structured Program borrowings

764


 

1,642


 

3,208


 

(76) %


 

(53) %

Interest on other long-term debt

367


 

468


 

336


 

9 %


 

(22) %

Total interest expense 

11,973


 

14,523


 

26,084


 

(54) %


 

(18) %


 
 
 
 
 
 
 
 
 
 

Net interest income 

99,680


 

83,132


 

18,506


 

N/M


 

20 %


 
 
 
 
 
 
 
 
 
 

Total net revenue 

289,537


 

262,243


 

105,840


 

174 %


 

10 %


 
 
 
 
 
 
 
 
 
 

Provision for credit losses 

52,509


 

45,149


 

21,493


 

144 %


 

16 %


 
 
 
 
 
 
 
 
 
 

Non-interest expense: 


 
 
 
 
 
 
 
 
 

Compensation and benefits

81,610


 

78,741


 

64,420


 

27 %


 

4 %

Marketing

55,080


 

50,708


 

19,545


 

182 %


 

9 %

Equipment and software

11,046


 

12,019


 

7,893


 

40 %


 

(8) %

Occupancy

6,019


 

4,706


 

6,900


 

(13) %


 

28 %

Depreciation and amortization

11,039


 

10,462


 

11,766


 

(6) %


 

6 %

Professional services

12,406


 

12,699


 

11,603


 

7 %


 

(2) %

Other non-interest expense

14,004


 

18,885


 

12,125


 

15 %


 

(26) %

Total non-interest expense 

191,204


 

188,220


 

134,252


 

42 %


 

2 %


 
 
 
 
 
 
 
 
 
 

Income before income tax benefit (expense) 

45,824


 

28,874


 

(49,905)


 

N/M


 

59 %

Income tax benefit (expense)

(4,988)


 

234


 

2,821


 

N/M


 

N/M

Consolidated net income (loss) 

$            40,836


 

$            29,108


 

$           (47,084)


 

N/M


 

40 %


 
 
 
 
 
 
 
 
 
 

Basic EPS – common stockholders

$                 0.40


 

$                 0.29


 

$               (0.49)


 
 
 
 

Diluted EPS – common stockholders

$                 0.39


 

$                 0.27


 

$               (0.49)


 
 
 
 

Weighted-average common shares – Basic

101,493,561


 

100,320,691


 

92,666,169


 
 
 
 

Weighted-average common shares – Diluted

105,052,904


 

108,096,823


 

92,666,169


 
 
 
 

 

N/M – Not meaningful

(1)  

Marketplace revenue consists of the following:


 
 

 

Three Months Ended 


 

Change (%) 


 

March 31, 
2022 


 

December 31, 
2021 


 

March 31, 
2021 


 

Q1 2022 

vs 

Q1 2021 


 

Q1 2022 

vs 

Q4 2021 

Origination fees

$         122,093


 

$         118,353


 

$           55,559


 

120 %


 

3 %

Servicing fees

18,514


 

20,940


 

23,166


 

(20) %


 

(12) %

Gain on sales of loans

24,110


 

20,569


 

8,323


 

190 %


 

17 %

Net fair value adjustments

15,249


 

10,700


 

(5,321)


 

N/M


 

43 %

Total marketplace revenue

$         179,966


 

$         170,562


 

$           81,727


 

120 %


 

6 %

 

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT 

(In thousands, except share and per share data)

(Unaudited)


 

 

Three months ended March 31, 2022 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$              164,835


 

$                 15,131


 

$                         —


 

$              179,966

Other non-interest income

19,498


 

4,223


 

(13,830)


 

9,891

Total non-interest income 

184,333


 

19,354


 

(13,830)


 

189,857


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

99,823


 

11,830


 

—


 

111,653

Interest expense

(3,644)


 

(8,329)


 

—


 

(11,973)

Net interest income 

96,179


 

3,501


 

—


 

99,680


 
 
 
 
 
 
 
 

Total net revenue 

280,512


 

22,855


 

(13,830)


 

289,537


 
 
 
 
 
 
 
 

Provision for credit losses

(52,509)


 

—


 

—


 

(52,509)

Non-interest expense

(178,459)


 

(26,575)


 

13,830


 

(191,204)

Income (Loss) before income tax benefit (expense) 

49,544


 

(3,720)


 

—


 

45,824

Income tax benefit (expense)

(12,355)


 

17,727


 

(10,360)


 

(4,988)

Consolidated net income 

$                 37,189


 

$                 14,007


 

$               (10,360)


 

$                 40,836


 

 

Three Months Ended December 31, 2021 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$              146,936


 

$                 23,626


 

$                         —


 

$              170,562

Other non-interest income

21,520


 

4,199


 

(17,170)


 

8,549

Total non-interest income 

168,456


 

27,825


 

(17,170)


 

179,111


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

83,310


 

14,345


 

—


 

97,655

Interest expense

(2,923)


 

(11,600)


 

—


 

(14,523)

Net interest income 

80,387


 

2,745


 

—


 

83,132


 
 
 
 
 
 
 
 

Total net revenue 

248,843


 

30,570


 

(17,170)


 

262,243


 
 
 
 
 
 
 
 

Reversal of (Provision for) credit losses

(45,244)


 

95


 

—


 

(45,149)

Non-interest expense

(173,017)


 

(32,373)


 

17,170


 

(188,220)

Income (Loss) before income tax benefit 

30,582


 

(1,708)


 

—


 

28,874

Income tax benefit

1,305


 

20,192


 

(21,263)


 

234

Consolidated net income 

$                 31,887


 

$                 18,484


 

$               (21,263)


 

$                 29,108


 

 

Three Months Ended March 31, 2021 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$                 36,062


 

$                 45,665


 

$                         —


 

$                 81,727

Other non-interest income

19,700


 

4,098


 

(18,191)


 

5,607

Total non-interest income 

55,762


 

49,763


 

(18,191)


 

87,334


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

17,498


 

27,092


 

—


 

44,590

Interest expense

(1,247)


 

(24,837)


 

—


 

(26,084)

Net interest income 

16,251


 

2,255


 

—


 

18,506


 
 
 
 
 
 
 
 

Total net revenue 

72,013


 

52,018


 

(18,191)


 

105,840


 
 
 
 
 
 
 
 

Reversal of (Provision for) credit losses

(23,963)


 

2,470


 

—


 

(21,493)

Non-interest expense

(75,499)


 

(76,944)


 

18,191


 

(134,252)

Loss before income tax benefit 

(27,449)


 

(22,456)


 

—


 

(49,905)

Income tax benefit

23


 

2,292


 

506


 

2,821

Consolidated net loss 

$               (27,426)


 

$               (20,164)


 

$                       506


 

$               (47,084)

 

LENDINGCLUB BANK 

NET INTEREST INCOME 

(In thousands, except percentages or as noted)

(Unaudited)


 

 

LendingClub Bank 


 

Three Months Ended 

March 31, 2022 


 

Three Months Ended 

December 31, 2021 


 

Two Months Ended 

March 31, 2021 


 

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 (1) 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash, cash equivalents, restricted cash and other

$    829,707


 

$       683


 

0.33 %


 

$    651,003


 

$       468


 

0.29 %


 

$    737,555


 

$       138


 

0.11 %

Securities available for sale at fair value

274,089


 

1,276


 

1.86 %


 

200,091


 

680


 

1.36 %


 

232,001


 

444


 

1.15 %

Loans held for sale

228,529


 

6,422


 

11.24 %


 

122,007


 

5,199


 

17.04 %


 

64,720


 

1,615


 

14.97 %

Loans and leases held for investment:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unsecured personal loans

2,060,323


 

78,376


 

15.22 %


 

1,542,285


 

60,383


 

15.66 %


 

146,925


 

3,392


 

13.85 %

Secured consumer loans

232,235


 

2,275


 

3.92 %


 

436,260


 

4,029


 

3.69 %


 

521,399


 

3,215


 

3.70 %

Commercial loans and leases

620,660


 

7,588


 

4.89 %


 

619,648


 

8,663


 

5.59 %


 

605,495


 

5,119


 

5.07 %

PPP loans

222,517


 

3,203


 

5.76 %


 

325,133


 

3,888


 

4.78 %


 

621,292


 

3,575


 

3.45 %

Loans and leases held for investment

3,135,735


 

91,442


 

11.66 %


 

2,923,326


 

76,963


 

10.53 %


 

1,895,111


 

15,301


 

4.84 %

Total interest-earning assets 

4,468,060


 

99,823


 

8.94 %


 

3,896,427


 

83,310


 

8.55 %


 

2,929,387


 

17,498


 

3.58 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks

46,117


 
 
 
 
 

23,362


 
 
 
 
 

42,683


 
 
 
 

Allowance for loan and lease losses

(163,631)


 
 
 
 
 

(125,120)


 
 
 
 
 

(30,357)


 
 
 
 

Other non-interest earning assets

390,066


 
 
 
 
 

326,402


 
 
 
 
 

187,785


 
 
 
 

Total assets 

$ 4,740,612


 
 
 
 
 

$ 4,121,071


 
 
 
 
 

$ 3,129,498


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing deposits


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Checking and money market accounts

$ 2,240,450


 

$    1,724


 

0.31 %


 

$ 2,146,687


 

$    1,716


 

0.32 %


 

$ 1,735,274


 

$       913


 

0.33 %

Savings accounts and certificates of deposit

1,071,133


 

1,714


 

0.65 %


 

580,361


 

900


 

0.62 %


 

323,800


 

101


 

0.19 %

Interest-bearing deposits

3,311,583


 

3,438


 

0.42 %


 

2,727,048


 

2,616


 

0.38 %


 

2,059,074


 

1,014


 

0.30 %

Short-term borrowings

165


 

—


 

— %


 

282


 

—


 

— %


 

1,829


 

0.3


 

0.09 %

Advances from PPPLF

234,872


 

206


 

0.35 %


 

342,335


 

307


 

0.36 %


 

405,989


 

233


 

0.35 %

Total interest-bearing liabilities 

3,546,620


 

3,644


 

0.42 %


 

3,069,665


 

2,923


 

0.38 %


 

2,469,726


 

1,247


 

0.31 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest bearing deposits

300,218


 
 
 
 
 

283,066


 
 
 
 
 

156,034


 
 
 
 

Other liabilities

232,018


 
 
 
 
 

179,752


 
 
 
 
 

68,510


 
 
 
 

Total liabilities 

$ 4,078,856


 
 
 
 
 

$ 3,532,483


 
 
 
 
 

$ 2,694,270


 
 
 
 

Total equity 

$    661,756


 
 
 
 
 

$    588,588


 
 
 
 
 

$    435,228


 
 
 
 

Total liabilities and equity 

$ 4,740,612


 
 
 
 
 

$ 4,121,071


 
 
 
 
 

$ 3,129,498


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread 


 
 
 
 

8.52 %


 
 
 
 
 

8.17 %


 
 
 
 
 

3.27 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income and net interest margin 


 
 

$  96,179


 

8.61 %


 
 
 

$  80,387


 

8.25 %


 
 
 

$  16,251


 

3.33 %


 
 

(1) 

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

 

LENDINGCLUB CORPORATION 

NET INTEREST INCOME (Continued)

(In thousands, except percentages or as noted)

(Unaudited)


 

 

Consolidated LendingClub Corporation (1) 


 

Three Months Ended 

March 31, 2022 


 

Three Months Ended 

December 31, 2021 


 

Three Months Ended 

March 31, 2021 


 

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

$    892,921


 

$       688


 

0.31 %


 

$    710,472


 

$        469


 

0.26 %


 

$    918,148


 

$       156


 

0.10 %

Securities available for sale at fair value

325,155


 

4,511


 

5.55 %


 

265,140


 

3,071


 

4.63 %


 

362,621


 

2,235


 

2.71 %

Loans held for sale

255,139


 

7,450


 

11.68 %


 

184,708


 

7,153


 

15.49 %


 

198,592


 

5,157


 

12.01 %

Loans and leases held for investment:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unsecured personal loans

2,060,323


 

78,376


 

15.22 %


 

1,542,285


 

60,384


 

15.66 %


 

146,925


 

3,392


 

13.85 %

Secured consumer loans

232,235


 

2,275


 

3.92 %


 

436,260


 

4,029


 

3.69 %


 

521,399


 

3,215


 

3.70 %

Commercial loans and leases

620,660


 

7,588


 

4.89 %


 

619,648


 

8,663


 

5.59 %


 

605,495


 

5,119


 

5.07 %

PPP loans

222,517


 

3,203


 

5.76 %


 

325,133


 

3,888


 

4.78 %


 

621,292


 

3,575


 

3.45 %

Loans and leases held for investment

3,135,735


 

91,442


 

11.66 %


 

2,923,326


 

76,964


 

10.53 %


 

1,895,111


 

15,301


 

4.84 %

Retail and certificate loans held for investment at fair value

198,813


 

6,969


 

14.02 %


 

262,548


 

9,236


 

14.07 %


 

574,158


 

20,262


 

14.12 %

Other loans held for investment at fair value

18,523


 

593


 

12.80 %


 

24,184


 

762


 

12.60 %


 

46,212


 

1,479


 

12.80 %

Total interest-earning assets 

4,826,286


 

111,653


 

9.25 %


 

4,370,378


 

97,655


 

8.94 %


 

3,994,842


 

44,590


 

5.34 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks and restricted cash

92,683


 
 
 
 
 

73,258


 
 
 
 
 

137,216


 
 
 
 

Allowance for loan and lease losses

(163,631)


 
 
 
 
 

(125,120)


 
 
 
 
 

(30,357)


 
 
 
 

Other non-interest earning assets

486,363


 
 
 
 
 

465,010


 
 
 
 
 

326,040


 
 
 
 

Total assets 

$ 5,241,701


 
 
 
 
 

$ 4,783,526


 
 
 
 
 

$ 4,427,741


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing deposits:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Checking and money market accounts

$ 2,240,450


 

$    1,724


 

0.31 %


 

$ 2,146,687


 

$     1,716


 

0.32 %


 

$ 1,735,274


 

$       913


 

0.33 %

Savings accounts and certificates of deposit

1,071,133


 

1,714


 

0.64 %


 

580,361


 

900


 

0.62 %


 

323,800


 

101


 

0.19 %

Interest-bearing deposits

3,311,583


 

3,438


 

0.42 %


 

2,727,048


 

2,616


 

0.38 %


 

2,059,074


 

1,014


 

0.30 %

Short-term borrowings

20,371


 

435


 

8.56 %


 

36,823


 

561


 

6.08 %


 

98,818


 

1,264


 

5.12 %

Advances from PPPLF

234,872


 

206


 

0.35 %


 

342,335


 

307


 

0.36 %


 

405,989


 

233


 

0.35 %

Retail notes, certificates and secured borrowings

198,813


 

6,969


 

14.02 %


 

262,548


 

9,236


 

14.07 %


 

574,192


 

20,262


 

14.12 %

Structured Program borrowings

42,026


 

764


 

7.29 %


 

77,354


 

1,642


 

8.49 %


 

143,045


 

3,208


 

8.97 %

Other long-term debt

15,421


 

161


 

4.19 %


 

15,514


 

161


 

4.15 %


 

18,605


 

103


 

2.21 %

Total interest-bearing liabilities 

3,823,086


 

11,973


 

1.25 %


 

3,461,622


 

14,523


 

1.68 %


 

3,299,723


 

26,084


 

3.24 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest bearing deposits

227,337


 
 
 
 
 

211,692


 
 
 
 
 

119,272


 
 
 
 

Other liabilities

319,241


 
 
 
 
 

282,339


 
 
 
 
 

286,907


 
 
 
 

Total liabilities 

$ 4,369,664


 
 
 
 
 

$ 3,955,653


 
 
 
 
 

$ 3,705,902


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total equity 

$    872,037


 
 
 
 
 

$    827,873


 
 
 
 
 

$    721,839


 
 
 
 

Total liabilities and equity 

$ 5,241,701


 
 
 
 
 

$ 4,783,526


 
 
 
 
 

$ 4,427,741


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread 


 
 
 
 

8.00 %


 
 
 
 
 

7.26 %


 
 
 
 
 

2.11 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income and net interest margin 


 
 

$  99,680


 

8.26 %


 
 
 

$   83,132


 

7.61 %


 
 
 

$  18,506


 

2.67 %


 
 

(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, 
2022 


 

December 31, 
2021 

Assets 


 
 
 

Cash and due from banks

$                30,986


 

$            35,670

Interest-bearing deposits in banks

1,022,239


 

651,456

Total cash and cash equivalents

1,053,225


 

687,126

Restricted cash

60,507


 

76,460

Securities available for sale at fair value (includes $402,944 and $256,170 at amortized cost, respectively)

390,317


 

263,530

Loans held for sale (includes $156,730 and $142,370 at fair value, respectively)

156,730


 

391,248

Loans and leases held for investment

3,422,296


 

2,899,126

Allowance for loan and lease losses

(187,985)


 

(144,389)

Loans and leases held for investment, net

3,234,311


 

2,754,737

Retail and certificate loans held for investment at fair value

168,906


 

229,719

Other loans held for investment at fair value

15,384


 

21,240

Property, equipment and software, net

111,503


 

97,996

Goodwill

75,717


 

75,717

Other assets

307,825


 

302,546

Total assets 

$          5,574,425


 

$      4,900,319

Liabilities and Equity 


 
 
 

Deposits:


 
 
 

Interest-bearing

$          3,715,847


 

$      2,919,203

Noninterest-bearing

261,630


 

216,585

Total deposits

3,977,477


 

3,135,788

Short-term borrowings

13,188


 

27,780

Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

193,371


 

271,933

Retail notes, certificates and secured borrowings at fair value

168,906


 

229,719

Payable on Structured Program borrowings

20,347


 

65,451

Other long-term debt

15,388


 

15,455

Other liabilities

298,314


 

303,951

Total liabilities

4,686,991


 

4,050,077

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; 102,194,037 and 101,043,924 shares issued and outstanding, respectively

1,022


 

1,010

Additional paid-in capital (1)

1,576,147


 

1,609,820

Accumulated deficit (1)

(676,594)


 

(767,634)

Accumulated other comprehensive income

(13,141)


 

7,046

Total equity

887,434


 

850,242

Total liabilities and equity 

$          5,574,425


 

$      4,900,319


 
 

(1) 

As a result of the adoption of Accounting Standards Update 2020-06, reflects a reclassification in the first quarter of 2021 from Accumulated Deficit to Additional Paid-in Capital of the $50.2 million deemed dividend that was recorded in the first quarter of 2020 related to the convertible Series A preferred stock.

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT 

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)


 

 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 


 

March 31, 
2022 


 

December 31,
2021 


 

March 31, 2
022 


 

December 31, 
2021 


 

March 31, 
2022 


 

December 31, 
2021 


 

March 31, 
2022 


 

December 31,
2021 

Assets 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total cash and cash equivalents

$     1,014,464


 

$       659,919


 

$        119,711


 

$         88,268


 

$         (80,950)


 

$        (61,061)


 

$     1,053,225


 

$       687,126

Restricted cash

—


 

—


 

64,165


 

76,540


 

(3,658)


 

(80)


 

60,507


 

76,460

Securities available for sale at fair value

345,964


 

205,730


 

44,353


 

57,800


 

—


 

—


 

390,317


 

263,530

Loans held for sale

145,117


 

335,449


 

11,613


 

55,799


 

—


 

—


 

156,730


 

391,248

Loans and leases held for investment, net

3,234,311


 

2,754,737


 

—


 

—


 

—


 

—


 

3,234,311


 

2,754,737

Retail and certificate loans held for investment at fair value

—


 

—


 

168,906


 

229,719


 

—


 

—


 

168,906


 

229,719

Other loans held for investment at fair value

—


 

—


 

15,384


 

21,240


 

—


 

—


 

15,384


 

21,240

Property, equipment and software, net

57,482


 

36,424


 

54,021


 

61,572


 

—


 

—


 

111,503


 

97,996

Investment in subsidiary

—


 

—


 

591,051


 

557,577


 

(591,051)


 

(557,577)


 

—


 

—

Goodwill

75,717


 

75,717


 

—


 

—


 

—


 

—


 

75,717


 

75,717

Other assets

292,043


 

254,075


 

149,099


 

168,042


 

(133,317)


 

(119,571)


 

307,825


 

302,546

Total assets 

5,165,098


 

4,322,051


 

1,218,303


 

1,316,557


 

(808,976)


 

(738,289)


 

5,574,425


 

4,900,319

Liabilities and Equity 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total deposits

4,062,084


 

3,196,929


 

—


 

—


 

(84,607)


 

(61,141)


 

3,977,477


 

3,135,788

Short-term borrowings

164


 

165


 

13,024


 

27,615


 

—


 

—


 

13,188


 

27,780

Advances from PPPLF

193,371


 

271,933


 

—


 

—


 

—


 

—


 

193,371


 

271,933

Retail notes, certificates and secured borrowings at fair value

—


 

—


 

168,906


 

229,719


 

—


 

—


 

168,906


 

229,719

Payable on Structured Program borrowings

—


 

—


 

20,347


 

65,451


 

—


 

—


 

20,347


 

65,451

Other long-term debt

—


 

—


 

15,388


 

15,455


 

—


 

—


 

15,388


 

15,455

Other liabilities

218,365


 

218,775


 

143,701


 

150,727


 

(63,752)


 

(65,551)


 

298,314


 

303,951

Total liabilities

4,473,984


 

3,687,802


 

361,366


 

488,967


 

(148,359)


 

(126,692)


 

4,686,991


 

4,050,077

Total equity

691,114


 

634,249


 

856,937


 

827,590


 

(660,617)


 

(611,597)


 

887,434


 

850,242

Total liabilities and equity 

$     5,165,098


 

$     4,322,051


 

$     1,218,303


 

$     1,316,557


 

$       (808,976)


 

$      (738,289)


 

$     5,574,425


 

$     4,900,319

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-first-quarter-2022-results-301534656.html

SOURCE LendingClub Corporation