Release Details

LendingClub Reports Fourth Quarter and Full Year 2022 Results

January 25, 2023
PDF Version

Delivers Record Full Year Revenue and Earnings Growth Despite Challenging Environment

SAN FRANCISCO, Jan. 25, 2023 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2022.

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.

"Our fourth quarter results clearly demonstrated the benefits of our evolution into a marketplace bank. We significantly grew recurring revenue to offset the expected reduction in marketplace volumes," said Scott Sanborn, LendingClub CEO. "Looking ahead, in anticipation of a more challenging environment, we have streamlined our operations and will maintain our underwriting discipline. We also intend to remain profitable, while investing in-period earnings into loan retention to support future earnings. These actions will allow us to capitalize on growth opportunities as economic pressures abate."

Full Year 2022 Results Reflect Ongoing Transformation and Positioning for Long-Term Sustained Success 

  • Total assets increased 63% year over year to $8.0 billion, primarily reflecting growth in loans held for investment, including the acquisition of a $1.05 billion outstanding principal loan portfolio in the fourth quarter of 2022.
  • Deposits of $6.4 billion more than doubled, primarily due to growth in online savings deposits.
  • Total net revenue of $1.2 billion up 45% year over year
    • Net interest income, a recurring stream of earnings, increased over 100% to $474.8 million.
    • Marketplace revenue grew 18% year over year to $683.6 million.
  • Pre-tax income of $153.0 million compared to $18.4 million in the prior year, reflecting solid revenue growth combined with improved operating efficiency.
  • Implemented significant cost reduction plan to more closely align the company's expense base with anticipated loan volume in 2023.

Fourth Quarter 2022 Results 

  • Total net revenue of $262.7 million was comparable to the prior-year period, as strong growth in net interest income offset lower marketplace revenue.
    • Net interest income increased 63% year over year to $135.2 million.
      • Total loans and leases held for investment grew 104%, primarily reflecting growth in personal loan originations held for investment and the acquisition of a $1.05 billion loan portfolio in the fourth quarter of 2022.
      • Net interest margin expanded to 7.8% from 7.6% in the prior-year period, primarily reflecting a greater mix of personal loans which generate a higher yield than the other loans held for investment.
    • Marketplace revenue was $123.4 million compared to $170.6 million year over year, reflecting a reduction in volumes consistent with the change in total origination volume due to the pace of Federal Reserve interest rate increases and tighter underwriting standards implemented by the company.
  • Loan originations were $2.5 billion, compared to $3.1 billion in the prior-year period.
  • Credit quality of the held-for-investment prime loan portfolio remained strong, with delinquency rates continuing to normalize as the portfolio seasons.
  • Provision for credit losses of $61.5 million primarily reflects $700.8 million of quarterly loan originations held for investment and ongoing recognition of provision expense for discounted lifetime losses at origination.
  • Efficiency ratio improved to 69% from 72% in the prior-year period due to better marketing efficiency.
  • Pre-provision net revenue of $82.7 million grew 12% year over year, driven by improved operating efficiency.
  • Net income of $23.6 million compared to $29.1 million year over year, reflecting higher credit provisioning due to growth in the held-for-investment portfolio, partially offset by favorable marketing efficiency.
  • Total equity of $1.2 billion grew $314.1 million from December 31, 2021, primarily reflecting net income generated over the period and the release of the deferred tax asset valuation allowance.
  • Book value per common share of $10.93 increased 30% from December 31, 2021. Tangible book value per common share of $10.06 increased 35% from December 31, 2021. The increases in book value and tangible book value per share were consistent with the growth in total equity.
  • Substantial capital with a consolidated Tier 1 leverage ratio of 14.1% and consolidated Common Equity Tier 1 capital ratio of 15.8%.

 


 

Three Months Ended 


 

Year Ended 


 

($ in millions, except per share amounts)

December 31, 
2022 


 

September 30, 
2022 


 

December 31, 
2021 


 

December 31, 
2022 


 

December 31, 
2021 


 

Total net revenue

$            262.7


 

$             304.9


 

$            262.2


 

$         1,187.2


 

$            818.6


 

Non-interest expense

180.0


 

186.2


 

188.2


 

766.9


 

661.4


 

Pre-provision net revenue (1)

82.7


 

118.7


 

74.0


 

420.3


 

157.2


 

 
 
 
 
 
 
 
 
 
 
 

Provision for credit losses

61.5


 

82.7


 

45.1


 

267.3


 

138.8


 

Income before income tax benefit

21.2


 

36.0


 

28.9


 

153.0


 

18.4


 

Income tax benefit

2.4


 

7.2


 

0.2


 

136.6


 

0.1


 

Net income

$             23.6


 

$              43.2


 

$              29.1


 

$           289.7


 

$             18.6


 

Diluted EPS

$             0.22


 

$              0.41


 

$              0.27


 

$             2.79


 

$             0.18


 

 
 
 
 
 
 
 
 
 
 
 

Income tax benefit from release of tax valuation allowance

$               3.2


 

$                5.0


 

$                 —


 

$           143.5


 

$                —


 

Net income excluding income tax benefit (1,2)

$             20.4


 

$              38.2


 

$              29.1


 

$           146.2


 

$             18.6


 

Diluted EPS excluding income tax benefit (1,2)

$             0.19


 

$              0.36


 

$              0.27


 

$             1.41


 

$             0.18


 

 
 

(1) 

See page 3 of this release for additional information on our use of non-GAAP financial measures.

(2) 

Fourth and third quarters of 2022 and the year ended December 31, 2022, include income tax benefit of $3.2 million, $5.0 million, and $143.5 million, respectively, due to the release of a deferred tax asset valuation allowance.

 

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 

Given the rapid change in the economic environment, the company is currently providing guidance for the first quarter of 2023 and expects loan originations and pre-provision net revenue to be in the ranges below. The outlook for loan originations reflects the impact of rising rates on marketplace demand combined with continued prudent underwriting. The company plans to maintain held-for-investment loan balances in line with the fourth quarter of 2022. For 2023, the company intends to remain profitable, while investing in-period earnings into loan retention to support future earnings.


 
 

First Quarter 2023 

Loan Originations


 

$1.9B to $2.2B

Pre-Provision Net Revenue


 

$55M 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 4.5 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 fourth 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, January 25, 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 (844) 200-6205, or outside the U.S. +1 (929) 526-1599, with Access Code 786729, 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 February 1, 2023, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 636433. 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 the fourth, third and second quarters of 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 14 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 and Quarterly Report on Form 10-Q, each 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 


 

 

December 31, 
2022 


 

September 30, 
2022 


 

June 30, 

2022 


 

March 31, 

2022 


 

December 31, 
2021 


 

Q/Q 


 

Y/Y 


 

Operating Highlights: 


 

Non-interest income

$       127,465


 

$      181,237


 

$    213,832


 

$    189,857


 

$       179,111


 

(30) %


 

(29) %


 

Net interest income

135,243


 

123,676


 

116,226


 

99,680


 

83,132


 

9 %


 

63 %


 

Total net revenue

262,708


 

304,913


 

330,058


 

289,537


 

262,243


 

(14) %


 

— %


 

Non-interest expense

180,044


 

186,219


 

209,386


 

191,204


 

188,220


 

(3) %


 

(4) %


 

Pre-provision net revenue(1)

82,664


 

118,694


 

120,672


 

98,333


 

74,023


 

(30) %


 

12 %


 

Provision for credit losses

61,512


 

82,739


 

70,566


 

52,509


 

45,149


 

(26) %


 

36 %


 

Income before income tax benefit (expense)

21,152


 

35,955


 

50,106


 

45,824


 

28,874


 

(41) %


 

(27) %


 

Income tax benefit (expense)

2,439


 

7,243


 

131,954


 

(4,988)


 

234


 

N/M


 

NM


 

Net income

23,591


 

43,198


 

182,060


 

40,836


 

29,108


 

N/M


 

N/M


 

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)

$        20,411


 

$        38,183


 

$     46,760


 

$     40,836


 

$        29,108


 

(47) %


 

(30) %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic EPS – common stockholders

$            0.22


 

$            0.41


 

$         1.77


 

$         0.40


 

$            0.29


 

(46) %


 

(24) %


 

Diluted EPS – common stockholders

$            0.22


 

$            0.41


 

$         1.73


 

$         0.39


 

$            0.27


 

(46) %


 

(19) %


 

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

$            0.19


 

$            0.36


 

$         0.45


 

$         0.39


 

$            0.27


 

(47) %


 

(30) %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Corporation Performance Metrics: 


 

Net interest margin

7.8 %


 

8.3 %


 

8.5 %


 

8.3 %


 

7.6 %


 
 
 
 
 

Efficiency ratio(3)

68.5 %


 

61.1 %


 

63.4 %


 

66.0 %


 

71.8 %


 
 
 
 
 

Return on average equity (ROE)

7.2 %


 

14.2 %


 

33.8 %


 

18.7 %


 

14.1 %


 
 
 
 
 

Return on average total assets (ROA)

1.1 %


 

2.5 %


 

5.5 %


 

3.1 %


 

2.4 %


 
 
 
 
 

Marketing expense as a % of loan originations

1.4 %


 

1.3 %


 

1.6 %


 

1.7 %


 

1.7 %


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Corporation Capital Metrics: 


 

Common Equity Tier 1 Capital Ratio

15.8 %


 

18.3 %


 

20.0 %


 

20.6 %


 

21.3 %


 
 
 
 
 

Tier 1 Leverage Ratio

14.1 %


 

15.7 %


 

16.2 %


 

15.6 %


 

16.5 %


 
 
 
 
 

Book Value per Common Share

$           10.93


 

$           10.67


 

$        10.41


 

$          8.68


 

$            8.41


 

2 %


 

30 %


 

Tangible Book Value per Common Share(1)

$           10.06


 

$             9.78


 

$          9.50


 

$          7.75


 

$            7.46


 

3 %


 

35 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loan Originations (in millions)(4): 


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total loan originations

$           2,524


 

$           3,539


 

$        3,840


 

$        3,217


 

$          3,069


 

(29) %


 

(18) %


 

Marketplace loans

$           1,824


 

$           2,386


 

$        2,819


 

$        2,360


 

$          2,308


 

(24) %


 

(21) %


 

Loan originations held for investment

$              701


 

$           1,153


 

$        1,021


 

$           856


 

$             761


 

(39) %


 

(8) %


 

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

28 %


 

33 %


 

27 %


 

27 %


 

25 %


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Servicing Portfolio AUM (in millions)(5): 


 

Total servicing portfolio

$        16,157


 

$         15,929


 

$      14,783


 

$      13,341


 

$        12,463


 

1 %


 

30 %


 

Loans serviced for others

$        10,819


 

$         11,807


 

$      11,382


 

$      10,475


 

$        10,124


 

(8) %


 

7 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Balance Sheet Data: 


 

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

$   4,638,331


 

$   4,414,347


 

$  3,692,667


 

$  3,049,325


 

$   2,486,440


 

5 %


 

87 %


 

PPP loans

$        66,971


 

$        89,379


 

$   118,794


 

$   184,986


 

$      268,297


 

(25) %


 

(75) %


 

Total loans and leases held for investment at amortized cost, net(6)

$   4,705,302


 

$   4,503,726


 

$  3,811,461


 

$  3,234,311


 

$   2,754,737


 

4 %


 

71 %


 

Loans held for investment at fair value

$      925,938


 

$        15,057


 

$     20,583


 

$     15,384


 

$               21


 

N/M


 

N/M


 

Total loans and leases held for investment

$   5,631,240


 

$   4,518,783


 

$  3,832,044


 

$  3,249,695


 

$   2,754,758


 

25 %


 

104 %


 

Total assets

$   7,979,747


 

$   6,775,074


 

$  6,186,765


 

$  5,574,425


 

$   4,900,319


 

18 %


 

63 %


 

Total deposits

$   6,392,553


 

$   5,123,506


 

$  4,527,672


 

$  3,977,477


 

$   3,135,788


 

25 %


 

104 %


 

Total liabilities

$   6,815,453


 

$   5,653,664


 

$  5,107,648


 

$  4,686,991


 

$   4,050,077


 

21 %


 

68 %


 

Total equity

$   1,164,294


 

$   1,121,410


 

$  1,079,117


 

$   887,434


 

$      850,242


 

4 %


 

37 %


 

 

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) 

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

(5) 

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.

(6) 

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 


 

 

December 31, 
2022 


 

September 30, 
2022 


 

June 30, 

2022 


 

March 31, 

2022 


 

December 31, 
2021 


 

Asset Quality Metrics: 


 

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

6.5 %


 

6.3 %


 

6.0 %


 

5.5 %


 

5.0 %


 

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

6.6 %


 

6.4 %


 

6.2 %


 

5.8 %


 

5.5 %


 

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

7.3 %


 

7.2 %


 

6.9 %


 

6.6 %


 

6.4 %


 

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

2.0 %


 

1.9 %


 

2.0 %


 

1.8 %


 

1.8 %


 

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

2.2 %


 

2.2 %


 

2.3 %


 

2.6 %


 

2.6 %


 

Net charge-offs

$          37,148


 

$          22,658


 

$          13,987


 

$            8,673


 

$            5,636


 

Net charge-off ratio(1)

3.0 %


 

2.1 %


 

1.6 %


 

1.2 %


 

0.9 %


 

 
 

(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:


 

 
 

 

December 31,
2022 


 

September 30,
2022 


 

December 31,
2021 


 

Unsecured personal

$       3,866,373


 

$       3,642,254


 

$       1,804,578


 

Residential mortgages

199,601


 

197,776


 

151,362


 

Secured consumer

194,634


 

180,768


 

65,976


 

Total consumer loans held for investment

4,260,608


 

4,020,798


 

2,021,916


 

Equipment finance (1)

160,319


 

167,447


 

149,155


 

Commercial real estate

373,501


 

372,406


 

310,399


 

Commercial and industrial (2)

238,726


 

246,276


 

417,656


 

Total commercial loans and leases held for investment

772,546


 

786,129


 

877,210


 

Total loans and leases held for investment at amortized cost

5,033,154


 

4,806,927


 

2,899,126


 

Allowance for loan and lease losses

(327,852)


 

(303,201)


 

(144,389)


 

Loans and leases held for investment at amortized cost, net

$       4,705,302


 

$       4,503,726


 

$       2,754,737


 

Loans held for investment at fair value

$          925,938


 

$            15,057


 

$                   21


 

Total loans and leases held for investment

$       5,631,240


 

$       4,518,783


 

$       2,754,758


 

(1) 

Comprised of sales-type leases for equipment.

(2) 

Includes $67.0 million, $89.4 million, and $268.3 million of Paycheck Protection Program (PPP) loans as of December 31, 2022, September 30, 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)

(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 


 

 

December 31, 2022 


 

September 30, 2022 


 

 

Consumer 


 

Commercial 


 

Total 


 

Consumer 


 

Commercial 


 

Total 


 

Allowance for loan and lease losses, beginning of period

$     288,138


 

$          15,063


 

$ 303,201


 

$     228,184


 

$          15,076


 

$ 243,260


 

Credit loss expense for loans and leases held for investment

61,392


 

407


 

61,799


 

81,935


 

664


 

82,599


 

Charge-offs

(38,579)


 

(225)


 

(38,804)


 

(22,944)


 

(784)


 

(23,728)


 

Recoveries

1,538


 

118


 

1,656


 

963


 

107


 

1,070


 

Allowance for loan and lease losses, end of period

$     312,489


 

$          15,363


 

$ 327,852


 

$     288,138


 

$          15,063


 

$ 303,201


 

 


 

Three Months Ended 


 

 

December 31, 2021 


 

 

Consumer 


 

Commercial 


 

Total 


 

Allowance for loan and lease losses, beginning of period

$        88,631


 

$          16,105


 

$ 104,736


 

Credit loss expense for loans and leases held for investment

45,595


 

(306)


 

45,289


 

Charge-offs

(5,557)


 

(313)


 

(5,870)


 

Recoveries

143


 

91


 

234


 

Allowance for loan and lease losses, end of period

$     128,812


 

$          15,577


 

$ 144,389


 

 

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:


 

 
 

 
 

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


 

 
 
 
 
 
 
 
 
 

September 30, 2022 

30-59 
Days 


 

60-89 
Days 


 

90 or More 
Days 


 

Total Days
Past Due 


 

Unsecured personal

$       14,799


 

$       12,463


 

$       10,601


 

$             37,863


 

Residential mortgages

—


 

—


 

337


 

337


 

Secured consumer

985


 

504


 

162


 

1,651


 

Total consumer loans held for investment

$       15,784


 

$       12,967


 

$       11,100


 

$             39,851


 

 
 
 
 
 
 
 
 
 

Equipment finance

$              —


 

$              —


 

$              —


 

$                     —


 

Commercial real estate

—


 

101


 

452


 

553


 

Commercial and industrial (1)

—


 

—


 

1,650


 

1,650


 

Total commercial loans and leases held for investment (1)

$              —


 

$            101


 

$         2,102


 

$               2,203


 

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

$       15,784


 

$       13,068


 

$       13,202


 

$             42,054


 

 
 
 
 
 
 
 
 
 

December 31, 2021 

30-59 
Days 


 

60-89 
Days 


 

90 or More 
Days 


 

Total Days
Past Due 


 

Unsecured personal

$         3,624


 

$         2,600


 

$         1,676


 

$               7,900


 

Residential mortgages

142


 

92


 

1,069


 

1,303


 

Secured consumer

171


 

53


 

3,011


 

3,235


 

Total consumer loans held for investment

$         3,937


 

$         2,745


 

$         5,756


 

$             12,438


 

 
 
 
 
 
 
 
 
 

Equipment finance

$              —


 

$              —


 

$              —


 

$                     —


 

Commercial real estate

104


 

—


 

609


 

713


 

Commercial and industrial (1)

—


 

—


 

1,410


 

1,410


 

Total commercial loans and leases held for investment (1)

$            104


 

$              —


 

$         2,019


 

$               2,123


 

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

$         4,041


 

$         2,745


 

$         7,775


 

$             14,561


 

 
 

(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 (%) 


 

 

December 31, 
2022 


 

September 30, 
2022 


 

December 31, 
2021 


 

Q4 2022 

vs 

Q4 2021 


 

Q4 2022 

vs 

Q3 2022 


 

Non-interest income: 


 
 
 
 
 
 
 
 
 
 

Origination fees

$       100,692


 

$        127,142


 

$       118,353


 

(15) %


 

(21) %


 

Servicing fees

20,169


 

23,760


 

20,940


 

(4) %


 

(15) %


 

Gain on sales of loans

18,352


 

23,554


 

20,569


 

(11) %


 

(22) %


 

Net fair value adjustments

(15,774)


 

(619)


 

10,700


 

(247) %


 

N/M


 

Marketplace revenue

123,439


 

173,837


 

170,562


 

(28) %


 

(29) %


 

Other non-interest income

4,026


 

7,400


 

8,549


 

(53) %


 

(46) %


 

Total non-interest income 

127,465


 

181,237


 

179,111


 

(29) %


 

(30) %


 

 
 
 
 
 
 
 
 
 
 
 

Total interest income

173,999


 

143,220


 

97,655


 

78 %


 

21 %


 

Total interest expense

38,756


 

19,544


 

14,523


 

167 %


 

98 %


 

Net interest income 

135,243


 

123,676


 

83,132


 

63 %


 

9 %


 

 
 
 
 
 
 
 
 
 
 
 

Total net revenue 

262,708


 

304,913


 

262,243


 

— %


 

(14) %


 

 
 
 
 
 
 
 
 
 
 
 

Provision for credit losses 

61,512


 

82,739


 

45,149


 

36 %


 

(26) %


 

 
 
 
 
 
 
 
 
 
 
 

Non-interest expense: 


 
 
 
 
 
 
 
 
 
 

Compensation and benefits

87,768


 

84,916


 

78,741


 

11 %


 

3 %


 

Marketing

35,139


 

46,031


 

50,708


 

(31) %


 

(24) %


 

Equipment and software

13,200


 

12,491


 

12,019


 

10 %


 

6 %


 

Occupancy

4,698


 

5,051


 

4,706


 

— %


 

(7) %


 

Depreciation and amortization

11,554


 

10,681


 

10,462


 

10 %


 

8 %


 

Professional services

10,029


 

11,943


 

12,699


 

(21) %


 

(16) %


 

Other non-interest expense

17,656


 

15,106


 

18,885


 

(7) %


 

17 %


 

Total non-interest expense 

180,044


 

186,219


 

188,220


 

(4) %


 

(3) %


 

 
 
 
 
 
 
 
 
 
 
 

Income before income tax benefit 

21,152


 

35,955


 

28,874


 

(27) %


 

(41) %


 

Income tax benefit

2,439


 

7,243


 

234


 

N/M


 

N/M


 

Net income 

$         23,591


 

$          43,198


 

$         29,108


 

(19) %


 

(45) %


 

 
 
 
 
 
 
 
 
 
 
 

Net income per share:  


 
 
 
 
 
 
 
 
 
 

Net income per share attributable to common stockholders – Basic

$             0.22


 

$              0.41


 

$             0.29


 

(24) %


 

(46) %


 

Net income per share attributable to common stockholders – Diluted

$             0.22


 

$              0.41


 

$             0.27


 

(19) %


 

(46) %


 

Weighted-average common shares – Basic

105,650,177


 

104,215,594


 

100,320,691


 

5 %


 

1 %


 

Weighted-average common shares – Diluted

105,984,612


 

105,853,938


 

108,096,823


 

(2) %


 

— %


 

 

N/M – Not meaningful

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

(In thousands, except share and per share data)

(Unaudited)


 

 
 

 

Year Ended December 31, 


 
 
 

 

2022 


 

2021 


 

Change (%) 


 

Non-interest income: 


 
 
 
 
 
 

Origination fees

$       499,179


 

$       416,839


 

20 %


 

Servicing fees

80,609


 

87,639


 

(8) %


 

Gain on sales of loans

95,335


 

70,116


 

36 %


 

Net fair value adjustments

8,503


 

3,986


 

113 %


 

Marketplace revenue

683,626


 

578,580


 

18 %


 

Other non-interest income

28,765


 

27,219


 

6 %


 

Total non-interest income 

712,391


 

605,799


 

18 %


 

 
 
 
 
 
 
 

Total interest income

557,340


 

292,832


 

90 %


 

Total interest expense

82,515


 

80,001


 

3 %


 

Net interest income 

474,825


 

212,831


 

123 %


 

 
 
 
 
 
 
 

Total net revenue 

1,187,216


 

818,630


 

45 %


 

 
 
 
 
 
 
 

Provision for credit losses 

267,326


 

138,800


 

93 %


 

 
 
 
 
 
 
 

Non-interest expense: 


 
 
 
 
 
 

Compensation and benefits

339,397


 

288,390


 

18 %


 

Marketing

197,747


 

156,142


 

27 %


 

Equipment and software

49,198


 

39,490


 

25 %


 

Occupancy

21,977


 

24,249


 

(9) %


 

Depreciation and amortization

43,831


 

44,285


 

(1) %


 

Professional services

50,516


 

47,572


 

6 %


 

Other non-interest expense

64,187


 

61,258


 

5 %


 

Total non-interest expense 

766,853


 

661,386


 

16 %


 

 
 
 
 
 
 
 

Income before income tax benefit 

153,037


 

18,444


 

730 %


 

Income tax benefit

136,648


 

136


 

N/M


 

Net income 

$       289,685


 

$         18,580


 

N/M


 

 
 
 
 
 
 
 

Net income per share:  


 
 
 
 
 
 

Net income per share attributable to common stockholders – Basic

$             2.80


 

$             0.19


 

N/M


 

Net income per share attributable to common stockholders – Diluted

$             2.79


 

$             0.18


 

N/M


 

Weighted-average common shares – Basic

103,547,305


 

97,486,754


 

6 %


 

Weighted-average common shares – Diluted

104,001,288


 

102,147,353


 

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 

December 31, 2022 


 

Three Months Ended 

September 30, 2022 


 

Three Months Ended 

December 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

$ 1,139,887


 

$   10,595


 

3.72 %


 

$    893,655


 

$      5,017


 

2.25 %


 

$    710,472


 

$       469


 

0.26 %


 

Securities available for sale at fair value

349,512


 

3,359


 

3.84 %


 

396,556


 

3,820


 

3.85 %


 

265,140


 

3,071


 

4.63 %


 

Loans held for sale

114,851


 

5,724


 

19.93 %


 

126,487


 

5,879


 

18.59 %


 

184,708


 

7,153


 

15.49 %


 

Loans and leases held for investment:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unsecured personal loans

3,825,808


 

125,872


 

13.16 %


 

3,268,649


 

110,446


 

13.52 %


 

1,542,285


 

60,384


 

15.66 %


 

Commercial and other consumer loans

1,164,326


 

15,197


 

5.22 %


 

1,135,474


 

13,582


 

4.78 %


 

1,381,041


 

16,580


 

4.80 %


 

Loans and leases held for investment at amortized cost

4,990,134


 

141,069


 

11.31 %


 

4,404,123


 

124,028


 

11.26 %


 

2,923,326


 

76,964


 

10.53 %


 

Loans held for investment at fair value (3)

308,570


 

10,862


 

14.08 %


 

17,763


 

791


 

17.83 %


 

24,184


 

762


 

12.60 %


 

Total loans and leases held for investment

5,298,704


 

151,931


 

11.47 %


 

4,421,886


 

124,819


 

11.29 %


 

2,947,510


 

77,726


 

10.55 %


 

Retail and certificate loans held for investment at fair value

66,469


 

2,390


 

14.38 %


 

104,010


 

3,685


 

14.17 %


 

262,548


 

9,236


 

14.07 %


 

Total interest-earning assets 

6,969,423


 

173,999


 

9.99 %


 

5,942,594


 

143,220


 

9.64 %


 

4,370,378


 

97,655


 

8.94 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks and restricted cash

64,907


 
 
 
 
 

58,411


 
 
 
 
 

73,258


 
 
 
 
 

Allowance for loan and lease losses

(314,861)


 
 
 
 
 

(254,849)


 
 
 
 
 

(125,120)


 
 
 
 
 

Other non-interest earning assets

613,664


 
 
 
 
 

597,169


 
 
 
 
 

465,010


 
 
 
 
 

Total assets 

$ 7,333,133


 
 
 
 
 

$ 6,343,325


 
 
 
 
 

$ 4,783,526


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing deposits:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Checking and money market accounts

$ 1,929,260


 

$     7,500


 

1.54 %


 

$ 2,192,904


 

$      4,575


 

0.83 %


 

$ 2,146,687


 

$    1,716


 

0.32 %


 

Savings accounts and certificates of deposit

3,576,205


 

28,251


 

3.13 %


 

2,260,170


 

10,609


 

1.86 %


 

580,361


 

900


 

0.62 %


 

Interest-bearing deposits

5,505,465


 

35,751


 

2.58 %


 

4,453,074


 

15,184


 

1.35 %


 

2,727,048


 

2,616


 

0.38 %


 

Short-term borrowings

3,875


 

63


 

6.52 %


 

6,848


 

87


 

5.09 %


 

36,823


 

561


 

6.08 %


 

Advances from PPPLF

77,199


 

69


 

0.36 %


 

104,897


 

93


 

0.36 %


 

342,335


 

307


 

0.36 %


 

Retail notes, certificates and secured borrowings

66,469


 

2,390


 

14.38 %


 

104,010


 

3,685


 

14.17 %


 

262,548


 

9,236


 

14.07 %


 

Structured Program borrowings

9,956


 

159


 

6.39 %


 

13,859


 

225


 

6.50 %


 

77,354


 

1,642


 

8.49 %


 

Other long-term debt

14,804


 

324


 

8.76 %


 

15,300


 

270


 

7.04 %


 

15,514


 

161


 

4.15 %


 

Total interest-bearing liabilities 

5,677,768


 

38,756


 

2.71 %


 

4,697,988


 

19,544


 

1.65 %


 

3,461,622


 

14,523


 

1.68 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest bearing deposits

251,686


 
 
 
 
 

284,134


 
 
 
 
 

211,692


 
 
 
 
 

Other liabilities

266,558


 
 
 
 
 

250,086


 
 
 
 
 

282,339


 
 
 
 
 

Total liabilities 

$ 6,196,012


 
 
 
 
 

$ 5,232,208


 
 
 
 
 

$ 3,955,653


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total equity 

$ 1,137,121


 
 
 
 
 

$  1,111,117


 
 
 
 
 

$    827,873


 
 
 
 
 

Total liabilities and equity 

$ 7,333,133


 
 
 
 
 

$ 6,343,325


 
 
 
 
 

$ 4,783,526


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread 


 
 
 
 

7.28 %


 
 
 
 
 

7.99 %


 
 
 
 
 

7.26 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income and net interest margin 


 
 

$  135,243


 

7.76 %


 
 
 

$ 123,676


 

8.32 %


 
 
 

$  83,132


 

7.61 %


 

 
 

(1) 

Consolidated presentation reflects intercompany eliminations.

(2) 

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

(3) 

Fourth quarter 2022 average balance includes the acquisition of a $1.05 billion outstanding principal loan portfolio in December 2022.

 

LENDINGCLUB CORPORATION 

CONSOLIDATED BALANCE SHEETS 

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)


 

 
 

 

December 31, 
2022 


 

December 31,
2021 


 

Assets 


 
 
 
 

Cash and due from banks

$            23,125


 

$          35,670


 

Interest-bearing deposits in banks

1,033,905


 

651,456


 

Total cash and cash equivalents

1,057,030


 

687,126


 

Restricted cash

67,454


 

76,460


 

Securities available for sale at fair value ($399,668 and $256,170 at amortized cost, respectively)

345,702


 

263,530


 

Loans held for sale (includes $110,400 and $142,370 at fair value, respectively)

110,400


 

391,248


 

Loans and leases held for investment

5,033,154


 

2,899,126


 

Allowance for loan and lease losses

(327,852)


 

(144,389)


 

Loans and leases held for investment, net

4,705,302


 

2,754,737


 

Loans held for investment at fair value

925,938


 

21,240


 

Retail and certificate loans held for investment at fair value

55,425


 

229,719


 

Property, equipment and software, net

136,473


 

97,996


 

Goodwill

75,717


 

75,717


 

Other assets

500,306


 

302,546


 

Total assets 

$        7,979,747


 

$     4,900,319


 

Liabilities and Equity 


 
 
 
 

Deposits:


 
 
 
 

Interest-bearing

$        6,158,560


 

$     2,919,203


 

Noninterest-bearing

233,993


 

216,585


 

Total deposits

6,392,553


 

3,135,788


 

Short-term borrowings

2,619


 

27,780


 

Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

64,154


 

271,933


 

Retail notes, certificates and secured borrowings at fair value

55,425


 

229,719


 

Payable on Structured Program borrowings

8,085


 

65,451


 

Other long-term debt

—


 

15,455


 

Other liabilities

292,617


 

303,951


 

Total liabilities

6,815,453


 

4,050,077


 

Equity


 
 
 
 

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

—


 

—


 

Common stock, $0.01 par value; 180,000,000 shares authorized; 106,546,995 and 101,043,924 shares issued and outstanding, respectively

1,065


 

1,010


 

Additional paid-in capital

1,628,590


 

1,559,616


 

Accumulated deficit

(427,745)


 

(717,430)


 

Accumulated other comprehensive income (loss)

(37,616)


 

7,046


 

Total equity

1,164,294


 

850,242


 

Total liabilities and equity 

$        7,979,747


 

$     4,900,319


 

 

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 


 
 
 
 
 

For the year ended 


 

 
 

December 31, 

2022 


 

September 30, 
2022 


 

June 30, 
2022 


 

March 31, 

2022 


 

December 31, 
2021 


 

December 31, 

2022 


 

December 31, 

2021 


 

GAAP Net income

$          23,591


 

$            43,198


 

$     182,060


 

$       40,836


 

$          29,108


 

$        289,685


 

$          18,580


 

Less: Provision for credit losses

(61,512)


 

(82,739)


 

(70,566)


 

(52,509)


 

(45,149)


 

(267,326)


 

(138,800)


 

Less: Income tax benefit (expense)

2,439


 

7,243


 

131,954


 

(4,988)


 

234


 

136,648


 

136


 

Pre-provision net revenue

$          82,664


 

$          118,694


 

$     120,672


 

$       98,333


 

$          74,023


 

$        420,363


 

$        157,244


 

 
 
 
 
 
 
 
 
 
 

 
 

For the three months ended 


 
 
 
 
 

For the year ended 


 

 
 

December 31, 

2022 


 

September 30, 
2022 


 

June 30, 
2022 


 

March 31, 

2022 


 

December 31, 
2021 


 

December 31, 

2022 


 

December 31, 

2021 


 

Non-interest income

$        127,465


 

$         181,237


 

$     213,832


 

$     189,857


 

$        179,111


 

$        712,391


 

$        605,799


 

Net interest income

135,243


 

123,676


 

116,226


 

99,680


 

83,132


 

474,825


 

212,831


 

Total net revenue

262,708


 

304,913


 

330,058


 

289,537


 

262,243


 

1,187,216


 

818,630


 

Non-interest expense

(180,044)


 

(186,219)


 

(209,386)


 

(191,204)


 

(188,220)


 

(766,853)


 

(661,386)


 

Pre-provision net revenue

82,664


 

118,694


 

120,672


 

98,333


 

74,023


 

420,363


 

157,244


 

Provision for credit losses

(61,512)


 

(82,739)


 

(70,566)


 

(52,509)


 

(45,149)


 

(267,326)


 

(138,800)


 

Income before income tax benefit

21,152


 

35,955


 

50,106


 

45,824


 

28,874


 

153,037


 

18,444


 

Income tax benefit

2,439


 

7,243


 

131,954


 

(4,988)


 

234


 

136,648


 

136


 

GAAP Net income

$          23,591


 

$            43,198


 

$     182,060


 

$       40,836


 

$          29,108


 

$        289,685


 

$          18,580


 

 

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


 

 
 

 
 

For the three months ended 


 

For the 

year ended 


 

 
 

December 31, 

2022 


 

September 30, 
2022 


 

June 30, 
2022 


 

December 31, 

2022 


 

GAAP Net income

$             23,591


 

$             43,198


 

$           182,060


 

$           289,685


 

Less: Income tax benefit from release of tax valuation allowance

3,180


 

5,015


 

135,300


 

143,495


 

Net income excluding income tax benefit

$             20,411


 

$             38,183


 

$             46,760


 

$           146,190


 

 
 
 
 
 
 
 
 
 
 

GAAP Diluted EPS – common stockholders

$                 0.22


 

$                 0.41


 

$                 1.73


 

$                 2.79


 

 
 
 
 
 
 
 
 
 
 

(A)

Income tax benefit from release of tax valuation allowance

$               3,180


 

$               5,015


 

$           135,300


 

$           143,495


 

(B)

Weighted-average common shares – Diluted

105,984,612


 

105,853,938


 

105,042,626


 

104,001,288


 

(A/B)

Diluted EPS impact of income tax benefit

$                 0.03


 

$                 0.05


 

$                 1.29


 

$                 1.38


 

 
 
 
 
 
 
 
 
 
 

Diluted EPS excluding income tax benefit

$                 0.19


 

$                 0.36


 

$                 0.44


 

$                 1.41


 

 

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 


 

 
 

 

December 31, 

2022 


 

September 30, 
2022 


 

June 30, 
2022 


 

March 31, 

2022 


 

December 31, 

2021 


 

GAAP common equity

$       1,164,294


 

$       1,121,410


 

$  1,079,117


 

$     887,434


 

$          850,242


 

Less: Goodwill

(75,717)


 

(75,717)


 

(75,717)


 

(75,717)


 

(75,717)


 

Less: Intangible assets

(16,334)


 

(17,512)


 

(18,690)


 

(19,886)


 

(21,181)


 

Tangible common equity 

$       1,072,243


 

$       1,028,181


 

$     984,710


 

$     791,831


 

$          753,344


 

 
 
 
 
 
 
 
 
 
 
 

Book value per common share 


 
 
 
 
 
 
 
 
 
 

GAAP common equity

$       1,164,294


 

$       1,121,410


 

$  1,079,117


 

$     887,434


 

$          850,242


 

Common shares issued and outstanding

106,546,995


 

105,088,761


 

103,630,776


 

102,194,037


 

101,043,924


 

Book value per common share 

$              10.93


 

$              10.67


 

$         10.41


 

$           8.68


 

$                8.41


 

 
 
 
 
 
 
 
 
 
 
 

Tangible book value per common share 


 
 
 
 
 
 
 
 
 
 

Tangible common equity

$       1,072,243


 

$       1,028,181


 

$     984,710


 

$     791,831


 

$          753,344


 

Common shares issued and outstanding

106,546,995


 

105,088,761


 

103,630,776


 

102,194,037


 

101,043,924


 

Tangible book value per common share 

$              10.06


 

$                9.78


 

$           9.50


 

$           7.75


 

$                7.46


 

 

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SOURCE LendingClub Corporation