Release Details

LendingClub Reports First Quarter 2023 Results

April 26, 2023
PDF Version

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.

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.

"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