Release Details

LendingClub Reports Fourth Quarter and Full Year 2023 Results

January 30, 2024
PDF Version

Increased Marketplace Originations 21% QoQ with $1B of Structured Certificates Sold

Continued GAAP Profitability with Strong Capital & Liquidity Levels

SAN FRANCISCO, Jan. 30, 2024 /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, 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.

"Thanks to our differentiated business model, strong execution, data advantage, and ongoing innovation, we have remained one of the few fintechs to sustain GAAP profitability throughout this turbulent macro environment, which positions us well for future acceleration," said Scott Sanborn, LendingClub CEO. "Since acquiring our bank charter three years ago, we have transformed our financial profile and business – tripling our balance sheet, building tangible book value by approximately 2X, growing deposits by almost 4X, and delivering 12 straight quarters of credit out performance. Furthermore, we continue to innovate with offerings like our structured certificates and we've made tangible progress towards a multi-product mobile-first experience. This foundation will enable us to capture the ongoing historic multi-billion-dollar refinance opportunity, engage our members in entirely new ways, and build long-term shareholder value." 

Fourth Quarter 2023 Results 

Balance Sheet:

  • Total assets of $8.8 billion compared to $8.5 billion in the prior quarter, primarily reflecting growth in securities related to the structured certificate program.
  • Deposits of $7.3 billion compared to $7.0 billion in the prior quarter, primarily due to an increase in customer certificates of deposit.
    • FDIC-insured deposits represent approximately 87% of total deposits.
  • Securities available for sale of $1.6 billion compared to $0.8 billion in the prior quarter, primarily reflecting growth in the structured certificate program.
  • Loans and leases held for investment of $4.8 billion compared to $5.2 billion in the prior quarter as the Company grew the structured certificate and extended seasoning programs while retaining fewer held for investment loans.
  • Strong capital position with a consolidated Tier 1 leverage ratio of 12.9% and consolidated Common Equity Tier 1 capital ratio of 17.9%.
  • Book value per common share of $11.34 compared to $11.02 in the prior quarter.
  • Tangible book value per common share of $10.54 compared to $10.21 in the prior quarter.

Financial Performance: 

  • Loan originations of $1.6 billion compared to $1.5 billion in the prior quarter as a result of increased purchases by loan investors; Marketplace originations of $1.4 billion grew 21% compared to the prior quarter.
  • Total net revenue of $185.6 million compared to $200.8 million in the prior quarter driven by:
    • Marketplace revenue of $52.2 million compared to $60.9 million in the prior quarter, primarily reflecting a $10.4 million one-time benefit in the prior quarter related to recouping volume-based purchase incentives from the bank investor channel.
    • Net interest income of $131.5 million compared to $137.0 million in the prior quarter reflecting a shift in asset mix from held for investment loans to senior securities and higher deposit funding costs.
  • Provision for credit losses of $41.9 million compared to $64.5 million in the prior quarter driven by lower volume of retained loans and lower incremental provision on older vintages.
  • Net income of $10.2 million, or diluted EPS of $0.09, compared to $5.0 million, or diluted EPS of $0.05, in the prior quarter.
  • Pre-provision net revenue (PPNR) of $55.6 million compared to $72.8 million in the prior quarter.
  • Efficiency ratio of 70.0% compared to 63.7% in the prior quarter.

 

Three Months Ended 


 

Year Ended 

($ in millions, except per share amounts)

December 31, 
2023 


 

September 30, 
2023 


 

December 31, 
2022 


 

December 31, 
2023 


 

December 31, 
2022 

Total net revenue

$             185.6


 

$               200.8


 

$             262.7


 

$             864.6


 

$          1,187.2

Non-interest expense

130.0


 

128.0


 

180.0


 

566.4


 

766.9

Pre-provision net revenue (1)

55.6


 

72.8


 

82.7


 

298.2


 

420.3

Provision for credit losses

41.9


 

64.5


 

61.5


 

243.6


 

267.3

Income before income tax benefit (expense)

13.7


 

8.3


 

21.2


 

54.6


 

153.0

Income tax benefit (expense)

(3.5)


 

(3.3)


 

2.4


 

(15.7)


 

136.6

Net income

$               10.2


 

$                   5.0


 

$               23.6


 

$               38.9


 

$             289.7

Diluted EPS

$               0.09


 

$                 0.05


 

$               0.22


 

$               0.36


 

$               2.79

Income tax benefit from release of tax valuation allowance

$                   —


 

$                     —


 

$                 3.2


 

$                   —


 

$             143.5

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

$               10.2


 

$                   5.0


 

$               20.4


 

$               38.9


 

$             146.2

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

$               0.09


 

$                 0.05


 

$               0.19


 

$               0.36


 

$               1.41

(1) 

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

(2) 

Fourth quarter of 2022 and the year ended December 31, 2022 exclude income tax benefit of $3.2 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 


 

First Quarter 2024 


 

Loan Originations

$1.5B to $1.7B


 

Pre-Provision Net Revenue (PPNR)                                        

$30M to $40M


 

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 $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.8 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 2023 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, January 30, 2024. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (404) 975-4839, or outside the U.S. +1 (833) 470-1428, with Access Code 634284, 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 6, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 705298. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), X (formerly Twitter) handles (@LendingClub and @LendingClubIR) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

Contacts
For Investors:
IR@lendingclub.com

Media Contact:
Press@lendingclub.com

Non-GAAP Financial Measures

To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Pre-Provision Net Revenue, 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 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 borrowers and platform investors; competition; overall economic conditions; the interest rate environment; the regulatory environment; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

*****

LENDINGCLUB CORPORATION 

OPERATING HIGHLIGHTS 

(In thousands, except percentages or as noted)

(Unaudited)


 

 
 

 

As of and for the three months ended 


 

% Change 


 

 

December 31, 
2023 


 

September 30, 
2023 


 

June 30, 

2023 


 

March 31, 

2023 


 

December 31, 
2022 


 

Q/Q 


 

Y/Y 


 

Operating Highlights: 


 

Non-interest income

$        54,129


 

$        63,844


 

$     85,818


 

$      98,990


 

$      127,465


 

(15) %


 

(58) %


 

Net interest income

131,477


 

137,005


 

146,652


 

146,704


 

135,243


 

(4) %


 

(3) %


 

Total net revenue

185,606


 

200,849


 

232,470


 

245,694


 

262,708


 

(8) %


 

(29) %


 

Non-interest expense

130,015


 

128,035


 

151,079


 

157,308


 

180,044


 

2 %


 

(28) %


 

Pre-provision net revenue(1)

55,591


 

72,814


 

81,391


 

88,386


 

82,664


 

(24) %


 

(33) %


 

Provision for credit losses

41,907


 

64,479


 

66,595


 

70,584


 

61,512


 

(35) %


 

(32) %


 

Income before income tax benefit (expense)

13,684


 

8,335


 

14,796


 

17,802


 

21,152


 

64 %


 

(35) %


 

Income tax benefit (expense)

(3,529)


 

(3,327)


 

(4,686)


 

(4,136)


 

2,439


 

6 %


 

(245) %


 

Net income

10,155


 

5,008


 

10,110


 

13,666


 

23,591


 

103 %


 

(57) %


 

Income tax benefit from release of tax valuation allowance

—


 

—


 

—


 

—


 

3,180


 

N/M


 

N/M


 

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

$        10,155


 

$          5,008


 

$     10,110


 

$      13,666


 

$        20,411


 

103 %


 

(50) %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic EPS

$            0.09


 

$            0.05


 

$         0.09


 

$          0.13


 

$            0.22


 

80 %


 

(59) %


 

Diluted EPS

$            0.09


 

$            0.05


 

$         0.09


 

$          0.13


 

$            0.22


 

80 %


 

(59) %


 

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

$            0.09


 

$            0.05


 

$         0.09


 

$          0.13


 

$            0.19


 

80 %


 

(53) %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Corporation Performance Metrics: 


 

Net interest margin

6.4 %


 

6.9 %


 

7.1 %


 

7.5 %


 

7.8 %


 
 
 
 
 

Efficiency ratio(3)

70.0 %


 

63.7 %


 

65.0 %


 

64.0 %


 

68.5 %


 
 
 
 
 

Return on average equity (ROE)(4)

3.3 %


 

1.7 %


 

3.4 %


 

4.6 %


 

7.2 %


 
 
 
 
 

Return on average total assets (ROA)(5)

0.5 %


 

0.2 %


 

0.5 %


 

0.7 %


 

1.1 %


 
 
 
 
 

Marketing expense as a % of loan originations

1.4 %


 

1.3 %


 

1.2 %


 

1.2 %


 

1.4 %


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Corporation Capital Metrics: 


 

Common equity Tier 1 capital ratio

17.9 %


 

16.9 %


 

16.1 %


 

15.6 %


 

15.8 %


 
 
 
 
 

Tier 1 leverage ratio

12.9 %


 

13.2 %


 

12.4 %


 

12.8 %


 

14.1 %


 
 
 
 
 

Book value per common share

$          11.34


 

$          11.02


 

$       11.09


 

$        11.08


 

$          10.93


 

3 %


 

4 %


 

Tangible book value per common share(1)

$          10.54


 

$          10.21


 

$       10.26


 

$        10.23


 

$          10.06


 

3 %


 

5 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loan Originations (in millions)(6): 


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total loan originations

$          1,630


 

$          1,508


 

$       2,011


 

$        2,288


 

$          2,524


 

8 %


 

(35) %


 

Marketplace loans

$          1,432


 

$          1,182


 

$       1,353


 

$        1,286


 

$          1,824


 

21 %


 

(21) %


 

Loan originations held for investment

$             198


 

$             326


 

$          657


 

$        1,002


 

$             701


 

(39) %


 

(72) %


 

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

12 %


 

22 %


 

33 %


 

44 %


 

28 %


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Servicing Portfolio AUM (in millions)(7): 


 

Total servicing portfolio

$         14,122


 

$         14,818


 

$      15,669


 

$       16,060


 

$         16,157


 

(5) %


 

(13) %


 

Loans serviced for others

$           9,336


 

$           9,601


 

$      10,204


 

$       10,504


 

$         10,819


 

(3) %


 

(14) %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

LENDINGCLUB CORPORATION 

OPERATING HIGHLIGHTS (Continued)

(In thousands, except percentages or as noted)

(Unaudited)


 

 
 

Balance Sheet Data: 


 

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

$   4,533,523


 

$   4,879,222


 

$  5,160,546


 

$ 5,091,969


 

$   4,638,331


 

(7) %


 

(2) %


 

PPP loans

$          6,392


 

$          7,560


 

$       17,640


 

$      51,112


 

$        66,971


 

(15) %


 

(90) %


 

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

$   4,539,915


 

$   4,886,782


 

$  5,178,186


 

$ 5,143,081


 

$   4,705,302


 

(7) %


 

(4) %


 

Loans held for investment at fair value

$      262,190


 

$      326,299


 

$     404,119


 

$    748,618


 

$      925,938


 

(20) %


 

(72) %


 

Total loans and leases held for investment

$   4,802,105


 

$   5,213,081


 

$  5,582,305


 

$ 5,891,699


 

$   5,631,240


 

(8) %


 

(15) %


 

Total assets

$   8,827,463


 

$   8,472,351


 

$  8,342,506


 

$ 8,754,018


 

$   7,979,747


 

4 %


 

11 %


 

Total deposits

$   7,333,486


 

$   7,000,263


 

$  6,843,535


 

$ 7,218,854


 

$   6,392,553


 

5 %


 

15 %


 

Total liabilities

$   7,575,641


 

$   7,264,132


 

$  7,136,983


 

$ 7,563,276


 

$   6,815,453


 

4 %


 

11 %


 

Total equity

$   1,251,822


 

$   1,208,219


 

$  1,205,523


 

$ 1,190,742


 

$   1,164,294


 

4 %


 

8 %


 

N/M – Not meaningful

(1) 

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

(2) 

Excludes fourth quarter 2022 income tax benefit of $3.2 million 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 


 

 

December 31, 
2023 


 

September 30, 
2023 


 

June 30, 
2023 


 

March 31, 
2023 


 

December 31, 
2022 


 

Asset Quality Metrics: 


 

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

6.7 %


 

6.7 %


 

6.4 %


 

6.4 %


 

6.5 %


 

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

7.2 %


 

7.4 %


 

7.1 %


 

7.1 %


 

7.3 %


 

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

1.8 %


 

2.0 %


 

1.9 %


 

2.0 %


 

2.0 %


 

Net charge-offs

$          82,511


 

$          68,795


 

$          59,884


 

$          49,845


 

$          37,148


 

Net charge-off ratio(1)

6.6 %


 

5.1 %


 

4.4 %


 

3.8 %


 

3.0 %


 

(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, 
2023 


 

December 31, 
2022 


 

Unsecured personal

$       3,726,830


 

$       3,866,373


 

Residential mortgages

183,050


 

199,601


 

Secured consumer

250,039


 

194,634


 

Total consumer loans held for investment

4,159,919


 

4,260,608


 

Equipment finance (1)

110,992


 

160,319


 

Commercial real estate

380,322


 

373,501


 

Commercial and industrial (2)

199,069


 

238,726


 

Total commercial loans and leases held for investment

690,383


 

772,546


 

Total loans and leases held for investment at amortized cost

4,850,302


 

5,033,154


 

Allowance for loan and lease losses

(310,387)


 

(327,852)


 

Loans and leases held for investment at amortized cost, net

$       4,539,915


 

$       4,705,302


 

Loans held for investment at fair value

262,190


 

925,938


 

Total loans and leases held for investment

$       4,802,105


 

$       5,631,240


 

(1) 

Comprised of sales-type leases for equipment.

(2) 

Includes $6.4 million and $67.0 million of Paycheck Protection Program (PPP) loans as of December 31, 2023 and 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 


 

 

December 31, 2023 


 

September 30, 2023 


 

 

Consumer 


 

Commercial 


 

Total 


 

Consumer 


 

Commercial 


 

Total 


 

Allowance for loan and lease losses, beginning of period

$    336,288


 

$        14,207


 

$ 350,495


 

$    341,161


 

$        14,002


 

$ 355,163


 

Credit loss expense for loans and leases held for investment

43,227


 

(824)


 

42,403


 

63,733


 

394


 

64,127


 

Charge-offs

(88,904)


 

(1,193)


 

(90,097)


 

(73,644)


 

(534)


 

(74,178)


 

Recoveries

7,450


 

136


 

7,586


 

5,038


 

345


 

5,383


 

Allowance for loan and lease losses, end of period

$    298,061


 

$        12,326


 

$ 310,387


 

$    336,288


 

$        14,207


 

$ 350,495


 

 

LENDINGCLUB CORPORATION 

PAST DUE LOANS AND LEASES HELD FOR INVESTMENT 

(In thousands)

(Unaudited)


 

 
 

 

Three Months Ended 


 

 

December 31, 2022 


 

 

Consumer 


 

Commercial 


 

Total 


 

Allowance for loan and lease losses, beginning of period

$    288,138


 

$        15,063


 

$ 303,201


 

Credit loss expense for loans and leases held for investment

61,392


 

407


 

61,799


 

Charge-offs

(38,579)


 

(225)


 

(38,804)


 

Recoveries

1,538


 

118


 

1,656


 

Allowance for loan and lease losses, end of period

$    312,489


 

$        15,363


 

$ 327,852


 

 

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, 2023 

30-59 
Days 


 

60-89 
Days 


 

90 or More 
Days 


 

Total Days 
Past Due 


 

Unsecured personal

$      32,716


 

$      29,556


 

$       30,132


 

$             92,404


 

Residential mortgages

1,751


 

—


 

—


 

1,751


 

Secured consumer

2,076


 

635


 

217


 

2,928


 

Total consumer loans held for investment

$      36,543


 

$      30,191


 

$       30,349


 

$             97,083


 

 
 
 
 
 
 
 
 
 

Equipment finance

$        1,265


 

$             —


 

$              —


 

$               1,265


 

Commercial real estate

—


 

3,566


 

1,618


 

5,184


 

Commercial and industrial (1)

12,261


 

1,632


 

1,515


 

15,408


 

Total commercial loans and leases held for investment (1)

$      13,526


 

$        5,198


 

$        3,133


 

$             21,857


 

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

$      50,069


 

$      35,389


 

$      33,482


 

$           118,940


 

 

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 (%) 


 

December 31, 
2023 


 

September 30, 
2023 


 

December 31, 
2022 


 

Q4 2023 

vs 

Q3 2023 


 

Q4 2023 

vs 

Q4 2022 

Non-interest income: 


 
 
 
 
 
 
 
 
 

Origination fees

$         76,702


 

$          60,912


 

$       100,692


 

26 %


 

(24) %

Servicing fees

17,450


 

32,768


 

20,169


 

(47) %


 

(13) %

Gain on sales of loans

11,921


 

8,572


 

18,352


 

39 %


 

(35) %

Net fair value adjustments

(53,892)


 

(41,366)


 

(15,774)


 

30 %


 

242 %

Marketplace revenue

52,181


 

60,886


 

123,439


 

(14) %


 

(58) %

Other non-interest income

1,948


 

2,958


 

4,026


 

(34) %


 

(52) %

Total non-interest income 

54,129


 

63,844


 

127,465


 

(15) %


 

(58) %


 
 
 
 
 
 
 
 
 
 

Total interest income

208,319


 

207,412


 

173,999


 

— %


 

20 %

Total interest expense

76,842


 

70,407


 

38,756


 

9 %


 

98 %

Net interest income 

131,477


 

137,005


 

135,243


 

(4) %


 

(3) %


 
 
 
 
 
 
 
 
 
 

Total net revenue 

185,606


 

200,849


 

262,708


 

(8) %


 

(29) %


 
 
 
 
 
 
 
 
 
 

Provision for credit losses 

41,907


 

64,479


 

61,512


 

(35) %


 

(32) %


 
 
 
 
 
 
 
 
 
 

Non-interest expense: 


 
 
 
 
 
 
 
 
 

Compensation and benefits

58,591


 

58,497


 

87,768


 

— %


 

(33) %

Marketing

23,465


 

19,555


 

35,139


 

20 %


 

(33) %

Equipment and software

13,190


 

12,631


 

13,200


 

4 %


 

— %

Depreciation and amortization

11,953


 

11,250


 

11,554


 

6 %


 

3 %

Professional services

7,727


 

8,414


 

10,029


 

(8) %


 

(23) %

Occupancy

3,926


 

4,612


 

4,698


 

(15) %


 

(16) %

Other non-interest expense

11,163


 

13,076


 

17,656


 

(15) %


 

(37) %

Total non-interest expense 

130,015


 

128,035


 

180,044


 

2 %


 

(28) %


 
 
 
 
 
 
 
 
 
 

Income before income tax benefit (expense) 

13,684


 

8,335


 

21,152


 

64 %


 

(35) %

Income tax benefit (expense)

(3,529)


 

(3,327)


 

2,439


 

6 %


 

(245) %

Net income 

$         10,155


 

$            5,008


 

$         23,591


 

103 %


 

(57) %


 
 
 
 
 
 
 
 
 
 

Net income per share:  


 
 
 
 
 
 
 
 
 

Basic EPS

$             0.09


 

$              0.05


 

$             0.22


 

80 %


 

(59) %

Diluted EPS

$             0.09


 

$              0.05


 

$             0.22


 

80 %


 

(59) %

Weighted-average common shares – Basic

109,948,785


 

109,071,180


 

105,650,177


 

1 %


 

4 %

Weighted-average common shares – Diluted

109,949,371


 

109,073,194


 

105,984,612


 

1 %


 

4 %

 

LENDINGCLUB CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued) 
(In thousands, except share and per share data)
(Unaudited)


 

 
 

 

Year Ended December 31, 


 
 

 

2023 


 

2022 


 

Change (%) 

Non-interest income: 


 
 
 
 
 

Origination fees

$       279,146


 

$        499,179


 

(44) %

Servicing fees

98,613


 

80,609


 

22 %

Gain on sales of loans

47,839


 

95,335


 

(50) %

Net fair value adjustments

(134,114)


 

8,503


 

N/M

Marketplace revenue

291,484


 

683,626


 

(57) %

Other non-interest income

11,297


 

28,765


 

(61) %

Total non-interest income 

302,781


 

712,391


 

(57) %


 
 
 
 
 
 

Total interest income

832,630


 

557,340


 

49 %

Total interest expense

270,792


 

82,515


 

228 %

Net interest income 

561,838


 

474,825


 

18 %


 
 
 
 
 
 

Total net revenue 

864,619


 

1,187,216


 

(27) %


 
 
 
 
 
 

Provision for credit losses 

243,565


 

267,326


 

(9) %


 
 
 
 
 
 

Non-interest expense: 


 
 
 
 
 

Compensation and benefits

261,948


 

339,397


 

(23) %

Marketing

93,840


 

197,747


 

(53) %

Equipment and software

53,485


 

49,198


 

9 %

Depreciation and amortization

47,195


 

43,831


 

8 %

Professional services

35,173


 

50,516


 

(30) %

Occupancy

17,532


 

21,977


 

(20) %

Other non-interest expense

57,264


 

64,187


 

(11) %

Total non-interest expense 

566,437


 

766,853


 

(26) %


 
 
 
 
 
 

Income before income tax benefit (expense) 

54,617


 

153,037


 

(64) %

Income tax benefit (expense)

(15,678)


 

136,648


 

(111) %

Net income 

$         38,939


 

$        289,685


 

(87) %


 
 
 
 
 
 

Net income per share:  


 
 
 
 
 

Basic EPS

$             0.36


 

$              2.80


 

(87) %

Diluted EPS

$             0.36


 

$              2.79


 

(87) %

Weighted-average common shares – Basic

108,466,179


 

103,547,305


 

5 %

Weighted-average common shares – Diluted

108,468,857


 

104,001,288


 

4 %

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, 2023 


 

Three Months Ended 

September 30, 2023 


 

Three Months Ended 

December 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

$ 1,190,539


 

$  16,271


 

5.47 %


 

$ 1,249,087


 

$   16,798


 

5.38 %


 

$ 1,139,887


 

$  10,595


 

3.72 %

Securities available for sale at fair value

1,197,625


 

20,920


 

6.99 %


 

601,512


 

9,467


 

6.30 %


 

349,512


 

3,359


 

3.84 %

Loans held for sale at fair value

501,850


 

15,883


 

12.66 %


 

286,111


 

9,582


 

13.40 %


 

114,851


 

5,724


 

19.93 %

Loans and leases held for investment:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unsecured personal loans

3,890,041


 

128,190


 

13.18 %


 

4,257,360


 

142,118


 

13.35 %


 

3,825,808


 

125,872


 

13.16 %

Commercial and other consumer loans

1,126,010


 

17,033


 

6.05 %


 

1,147,130


 

16,842


 

5.87 %


 

1,164,326


 

15,197


 

5.22 %

Loans and leases held for investment at amortized cost

5,016,051


 

145,223


 

11.58 %


 

5,404,490


 

158,960


 

11.76 %


 

4,990,134


 

141,069


 

11.31 %

Loans held for investment at fair value

292,101


 

9,494


 

13.00 %


 

362,837


 

11,788


 

13.00 %


 

308,570


 

10,862


 

14.08 %

Total loans and leases held for investment

5,308,152


 

154,717


 

11.66 %


 

5,767,327


 

170,748


 

11.84 %


 

5,298,704


 

151,931


 

11.47 %

Retail and certificate loans held for investment at fair value

14,535


 

528


 

14.54 %


 

22,311


 

817


 

14.65 %


 

66,469


 

2,390


 

14.38 %

Total interest-earning assets 

8,212,701


 

208,319


 

10.15 %


 

7,926,348


 

207,412


 

10.47 %


 

6,969,423


 

173,999


 

9.99 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks and restricted cash

63,181


 
 
 
 
 

69,442


 
 
 
 
 

64,907


 
 
 
 

Allowance for loan and lease losses

(334,711)


 
 
 
 
 

(354,263)


 
 
 
 
 

(314,861)


 
 
 
 

Other non-interest earning assets

659,995


 
 
 
 
 

691,641


 
 
 
 
 

613,664


 
 
 
 

Total assets 

$ 8,601,166


 
 
 
 
 

$ 8,333,168


 
 
 
 
 

$ 7,333,133


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing deposits:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Checking and money market accounts

$ 1,081,875


 

$    9,593


 

3.52 %


 

$ 1,271,720


 

$     9,541


 

2.98 %


 

$ 1,929,260


 

$    7,500


 

1.54 %

Savings accounts and certificates of deposit

5,720,058


 

66,660


 

4.62 %


 

5,357,717


 

59,968


 

4.44 %


 

3,576,205


 

28,251


 

3.13 %

Interest-bearing deposits

6,801,933


 

76,253


 

4.45 %


 

6,629,437


 

69,509


 

4.16 %


 

5,505,465


 

35,751


 

2.58 %

Retail notes and certificates 

14,535


 

528


 

14.54 %


 

22,311


 

817


 

14.65 %


 

66,469


 

2,390


 

14.38 %

Other interest-bearing liabilities

9,645


 

61


 

2.51 %


 

13,567


 

81


 

2.42 %


 

105,834


 

615


 

2.33 %

Total interest-bearing liabilities 

6,826,113


 

76,842


 

4.47 %


 

6,665,315


 

70,407


 

4.19 %


 

5,677,768


 

38,756


 

2.71 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest bearing deposits

314,822


 
 
 
 
 

183,728


 
 
 
 
 

251,686


 
 
 
 

Other liabilities

238,806


 
 
 
 
 

271,118


 
 
 
 
 

266,558


 
 
 
 

Total liabilities 

$ 7,379,741


 
 
 
 
 

$ 7,120,161


 
 
 
 
 

$ 6,196,012


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total equity 

$ 1,221,425


 
 
 
 
 

$ 1,213,007


 
 
 
 
 

$ 1,137,121


 
 
 
 

Total liabilities and equity 

$ 8,601,166


 
 
 
 
 

$ 8,333,168


 
 
 
 
 

$ 7,333,133


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread 


 
 
 
 

5.68 %


 
 
 
 
 

6.28 %


 
 
 
 
 

7.28 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income and net interest margin 


 
 

$  131,477


 

6.40 %


 
 
 

$ 137,005


 

6.91 %


 
 
 

$  135,243


 

7.76 %

(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)


 

 
 

 

December 31, 
2023 


 

December 31, 
2022 

Assets 


 
 
 

Cash and due from banks

$            14,993


 

$         23,125

Interest-bearing deposits in banks

1,237,511


 

1,033,905

Total cash and cash equivalents

1,252,504


 

1,057,030

Restricted cash

41,644


 

67,454

Securities available for sale at fair value ($1,663,990 and $399,668 at amortized cost, respectively)

1,620,262


 

345,702

Loans held for sale at fair value

407,773


 

110,400

Loans and leases held for investment

4,850,302


 

5,033,154

Allowance for loan and lease losses

(310,387)


 

(327,852)

Loans and leases held for investment, net

4,539,915


 

4,705,302

Loans held for investment at fair value

262,190


 

925,938

Retail and certificate loans held for investment at fair value

10,488


 

55,425

Property, equipment and software, net

161,517


 

136,473

Goodwill

75,717


 

75,717

Other assets

455,453


 

500,306

Total assets 

$        8,827,463


 

$     7,979,747

Liabilities and Equity 


 
 
 

Deposits:


 
 
 

Interest-bearing

$        7,001,680


 

$     6,158,560

Noninterest-bearing

331,806


 

233,993

Total deposits

7,333,486


 

6,392,553

Borrowings

8,866


 

74,858

Retail notes and certificates at fair value

10,488


 

55,425

Other liabilities

222,801


 

292,617

Total liabilities

7,575,641


 

6,815,453

Equity


 
 
 

Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively

1,104


 

1,065

Additional paid-in capital

1,669,828


 

1,628,590

Accumulated deficit

(388,806)


 

(427,745)

Accumulated other comprehensive loss

(30,304)


 

(37,616)

Total equity

1,251,822


 

1,164,294

Total liabilities and equity 

$        8,827,463


 

$     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 


 

For the year ended 


 

December 31, 
2023 


 

September 30, 

2023 


 

June 30, 

2023 


 

March 31, 

2023 


 

December 31, 
2022 


 

December 31, 

2023 


 

December 31, 

2022 

GAAP Net income

$          10,155


 

$             5,008


 

$      10,110


 

$       13,666


 

$          23,591


 

$          38,939


 

$        289,685

Less: Provision for credit losses

(41,907)


 

(64,479)


 

(66,595)


 

(70,584)


 

(61,512)


 

(243,565)


 

(267,326)

Less: Income tax benefit (expense)

(3,529)


 

(3,327)


 

(4,686)


 

(4,136)


 

2,439


 

(15,678)


 

136,648

Pre-provision net revenue

$          55,591


 

$           72,814


 

$      81,391


 

$       88,386


 

$          82,664


 

$        298,182


 

$        420,363

 


 

For the three months ended 


 

For the year ended 


 

 

December 31, 
2023 


 

September 30, 

2023 


 

June 30, 

2023 


 

March 31, 

2023 


 

December 31, 
2022 


 

December 31, 

2023 


 

December 31, 

2022 

Non-interest income

$          54,129


 

$           63,844


 

$     85,818


 

$       98,990


 

$        127,465


 

$        302,781


 

$        712,391

Net interest income

131,477


 

137,005


 

146,652


 

146,704


 

135,243


 

561,838


 

474,825

Total net revenue

185,606


 

200,849


 

232,470


 

245,694


 

262,708


 

864,619


 

1,187,216

Non-interest expense

(130,015)


 

(128,035)


 

(151,079)


 

(157,308)


 

(180,044)


 

(566,437)


 

(766,853)

Pre-provision net revenue

55,591


 

72,814


 

81,391


 

88,386


 

82,664


 

298,182


 

420,363

Provision for credit losses

(41,907)


 

(64,479)


 

(66,595)


 

(70,584)


 

(61,512)


 

(243,565)


 

(267,326)

Income before income tax benefit (expense)

13,684


 

8,335


 

14,796


 

17,802


 

21,152


 

54,617


 

153,037

Income tax benefit (expense)

(3,529)


 

(3,327)


 

(4,686)


 

(4,136)


 

2,439


 

(15,678)


 

136,648

GAAP Net income

$          10,155


 

$             5,008


 

$     10,110


 

$       13,666


 

$          23,591


 

$          38,939


 

$        289,685

 

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


 

 

For the three months ended 
December 31, 2022 


 

For the year ended 

December 31, 2022 

GAAP Net income

$                                       23,591


 

$                      289,685

Less: Income tax benefit from release of tax valuation allowance

3,180


 

143,495

Net income excluding income tax benefit

$                                       20,411


 

$                      146,190


 
 
 
 
 

GAAP Diluted EPS

$                                           0.22


 

$                            2.79


 
 
 
 
 

(A)

Income tax benefit from release of tax valuation allowance

$                                         3,180


 

$                      143,495

(B)

Weighted-average common shares – Diluted

105,984,612


 

104,001,288

(A/B)

Diluted EPS impact of income tax benefit

$                                           0.03


 

$                            1.38


 
 
 
 
 

Diluted EPS excluding income tax benefit

$                                           0.19


 

$                            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, 
2023 


 

September 30, 

2023 


 

June 30, 

2023 


 

March 31, 

2023 


 

December 31, 
2022 

GAAP common equity

$       1,251,822


 

$        1,208,219


 

$    1,205,523


 

$    1,190,742


 

$      1,164,294

Less: Goodwill

(75,717)


 

(75,717)


 

(75,717)


 

(75,717)


 

(75,717)

Less: Intangible assets

(12,135)


 

(13,151)


 

(14,167)


 

(15,201)


 

(16,334)

Tangible common equity 

$       1,163,970


 

$        1,119,351


 

$    1,115,639


 

$    1,099,824


 

$      1,072,243


 
 
 
 
 
 
 
 
 
 

Book value per common share 


 
 
 
 
 
 
 
 
 

GAAP common equity

$       1,251,822


 

$        1,208,219


 

$    1,205,523


 

$    1,190,742


 

$      1,164,294

Common shares issued and outstanding

110,410,602


 

109,648,769


 

108,694,120


 

107,460,734


 

106,546,995

Book value per common share 

$              11.34


 

$               11.02


 

$           11.09


 

$           11.08


 

$             10.93


 
 
 
 
 
 
 
 
 
 

Tangible book value per common share 


 
 
 
 
 
 
 
 
 

Tangible common equity

$       1,163,970


 

$        1,119,351


 

$    1,115,639


 

$    1,099,824


 

$      1,072,243

Common shares issued and outstanding

110,410,602


 

109,648,769


 

108,694,120


 

107,460,734


 

106,546,995

Tangible book value per common share 

$              10.54


 

$               10.21


 

$           10.26


 

$           10.23


 

$             10.06

 

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SOURCE LendingClub Corporation