Release Details

LendingClub Reports Second Quarter 2022 Results

July 27, 2022
PDF Version

Record Revenue of $330 million

Reported Net Income of $182 million Including Income Tax Benefit of $135 million

Record Net Income of $47 million Excluding Income Tax Benefit

SAN FRANCISCO, July 27, 2022 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the second quarter ended June 30, 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 strong execution, marketplace bank model, member and data advantages, and our continued focus on prudent underwriting have all contributed to an incredible first half of the year with records set for both revenue and profitability," said Scott Sanborn, LendingClub CEO. "Despite the more challenging economic backdrop and increased uncertainty, we are well positioned to navigate through this dynamic environment."

Record Second Quarter 2022 Results 

  • Revenue of $330.1 million grew 61% year-over-year, driven by growth in net interest income and marketplace revenue.
    • Recurring stream of net interest income increased 153% year-over-year to $116.2 million.
      • LendingClub Bank's net interest margin expanded to 8.7% from 5.5% a year earlier, primarily reflecting growth in consumer loans which generate a higher yield.
      • Total loans held for investment (excluding PPP) grew 106% from June 30, 2021, reflecting growth in personal loan originations and an increase in originations retained in the held for investment portfolio. The percentage of originations held for investment increased to 27% from 20% a year earlier as the company reinvested earnings into loan retention to drive growth in recurring revenue.
    • Marketplace revenue of $206.4 million grew 36% year-over-year, reflecting growth in marketplace originations.
  • Deposits of $4.5 billion were up 78% from June 30, 2021, supporting growth in loans held for investment.
  • The efficiency ratio improved to 63% from 78% a year earlier as the company continued to manage expenses prudently while generating strong revenue growth.
  • LendingClub's credit quality remained better than the industry, with delinquency rates remaining below pre-pandemic levels. Credit quality of the company's held for investment personal loan portfolio also remained strong reflecting the prime credit profile of its borrowers with an average FICO of 730.
  • Provision for credit losses increased to $70.6 million from $34.6 million in the second quarter of 2021, primarily reflecting growth of 106% in loans held for investment (excluding PPP) from June 30, 2021.
  • Net income of $182.1 million increased $172.7 million year-over-year. Net income for the second quarter of 2022 included an income tax benefit of $132.0 million, reflecting the release of a $135.3 million valuation allowance against the company's deferred tax assets, partially offset by a $3.3 million state income tax expense, due to the company's business model transition and resulting increase in profitability and the expectation of continued profitability.
  • Net income excluding the income tax benefit was $46.8 million, up 399% year-over-year.
  • Total equity was up $316.7 million or 42% from June 30, 2021 primarily reflecting net income generated over the period and the release of a deferred tax asset valuation allowance.
  • Diluted earnings per share of $1.73 compared to earnings of $0.09 per share in the second quarter of 2021. Results in the second quarter of 2022 included an income tax benefit of $1.28 per share due to the release of a deferred tax asset valuation allowance.
  • The improvement in diluted earnings per share from a year earlier reflected revenue growth and increased operating efficiency, as well as the benefit from the release of the deferred tax asset valuation allowance.
  • Excluding the income tax benefit, diluted earnings per share of $0.45 was up 400% year-over-year.
  • Pre-tax, pre-provision income of $120.7 million increased 173% year-over-year, consistent with revenue growth and improved operating efficiency which drove growth in net income.

 

Three Months Ended 

($ in millions)

June 30, 
2022 


 

March 31, 
2022 


 

June 30, 
2021 

Total net revenue

$           330.1


 

$            289.5


 

$           204.4

Non-interest expense

209.4


 

191.2


 

160.1

Pre-tax, pre-provision income

120.7


 

98.3


 

44.3

Provision for credit losses

70.6


 

52.5


 

34.6

Income before income tax benefit (expense)

50.1


 

45.8


 

9.6

Income tax benefit (expense)

132.0


 

(5.0)


 

(0.2)

Net income

$           182.1


 

$              40.8


 

$               9.4

Diluted EPS

$             1.73


 

$              0.39


 

$             0.09


 
 
 
 
 
 

Income tax benefit from release of tax valuation allowance

$           135.3


 

$                 —


 

$                —

Net income excluding income tax benefit (1)

$             46.8


 

$              40.8


 

$               9.4

Diluted EPS excluding income tax benefit (1)

$             0.45


 

$              0.39


 

$             0.09


 
 

(1) 

Second quarter 2022 income tax benefit of $135.3 million due to the release of a deferred tax asset valuation allowance. See page 3 of this release for additional information on our use of Non-GAAP Financial Measures.

 

Financial Outlook 

The company reaffirmed full year revenue and net income guidance for 2022 (excluding the income tax benefit from release of a deferred tax asset valuation allowance).

(millions)

Third Quarter 

2022 

Full Year 

2022 

Total revenue

$280M to $300M

$1.15B to $1.25B

Net income

$30M to $40M

$280M to $300M

Income tax benefit from release of tax valuation allowance

—

$135.3M

Net income excluding income tax benefit

$30M to $40M

$145M to $165M

 

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 $75 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 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 second 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, July 27, 2022. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (844) 200-6205, or outside the U.S. +1 (929) 526-1599, with Access Code 696569, 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 August 3, 2022, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 945301. 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: Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit. Our non-GAAP 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 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 Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are important measures because they directly reflect the financial performance of our business operations. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in the second quarter 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.

For a reconciliation of such measures to the nearest GAAP measure, please refer to the table on page 2 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; competition; overall economic conditions; the regulatory environment; demand for the types of loans facilitated by us; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

LENDINGCLUB CORPORATION 

OPERATING HIGHLIGHTS 

(In thousands, except percentages or as noted)

(Unaudited)


 

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


 

 

As of and for the three months ended 


 

% Change 


 

June 30, 
2022 


 

March 31, 
2022 


 

December 31, 

2021 


 

September 30, 

2021 


 

June 30, 
2021 


 

Q/Q 


 

Y/Y 

Operating Highlights: 

Non-interest income

$   213,832


 

$   189,857


 

$      179,111


 

$      180,878


 

$   158,476


 

13 %


 

35 %

Net interest income

116,226


 

99,680


 

83,132


 

65,288


 

45,905


 

17 %


 

153 %

Total net revenue

330,058


 

289,537


 

262,243


 

246,166


 

204,381


 

14 %


 

61 %

Non-interest expense

209,386


 

191,204


 

188,220


 

178,775


 

160,139


 

10 %


 

31 %

Pre-tax, pre-provision income

120,672


 

98,333


 

74,023


 

67,391


 

44,242


 

23 %


 

173 %

Provision for credit losses

70,566


 

52,509


 

45,149


 

37,524


 

34,634


 

34 %


 

104 %

Income before income tax benefit 

50,106


 

45,824


 

28,874


 

29,867


 

9,608


 

9 %


 

422 %

Income tax benefit (expense)

131,954


 

(4,988)


 

234


 

(2,682)


 

(237)


 

N/M


 

N/M

Net income

182,060


 

40,836


 

29,108


 

27,185


 

9,371


 

N/M


 

N/M

Income tax benefit from release of tax valuation allowance

135,300


 

—


 

—


 

—


 

—


 

N/M


 

N/M

Net income excluding income tax benefit (1)

$     46,760


 

$     40,836


 

$        29,108


 

$        27,185


 

$       9,371


 

15 %


 

399 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic EPS – common stockholders

$         1.77


 

$         0.40


 

$            0.29


 

$            0.27


 

$         0.10


 

N/M


 

N/M

Diluted EPS – common stockholders

$         1.73


 

$         0.39


 

$            0.27


 

$            0.26


 

$         0.09


 

N/M


 

N/M

Diluted EPS excluding income tax benefit (1)

$         0.45


 

$         0.39


 

$            0.27


 

$            0.26


 

$         0.09


 

15 %


 

400 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Bank Performance Metrics: 

Net interest margin

8.7 %


 

8.6 %


 

8.3 %


 

7.1 %


 

5.5 %


 
 
 
 

Efficiency ratio (2)

60.5 %


 

63.6 %


 

69.5 %


 

67.5 %


 

69.0 %


 
 
 
 

Return on average equity (ROE)

21.5 %


 

22.5 %


 

21.7 %


 

26.5 %


 

34.7 %


 
 
 
 

Return on average total assets (ROA)

3.0 %


 

3.1 %


 

3.1 %


 

3.7 %


 

4.7 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Bank Capital Ratios: 

Common Equity Tier 1 Capital Ratio

16.7 %


 

16.0 %


 

16.7 %


 

18.0 %


 

18.7 %


 
 
 
 

Tier 1 Leverage Ratio

13.4 %


 

13.2 %


 

14.3 %


 

14.1 %


 

13.5 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Consolidated LendingClub Corporation Performance Metrics: 

Net interest margin

8.5 %


 

8.3 %


 

7.6 %


 

6.3 %


 

4.7 %


 
 
 
 

Efficiency ratio (2)

63.4 %


 

66.0 %


 

71.8 %


 

72.6 %


 

78.4 %


 
 
 
 

Return on average equity (ROE)

33.8 %


 

18.7 %


 

14.1 %


 

13.8 %


 

5.0 %


 
 
 
 

Return on average total assets (ROA)

5.5 %


 

3.1 %


 

2.4 %


 

2.4 %


 

0.8 %


 
 
 
 

Marketing expense as a % of loan originations

1.6 %


 

1.7 %


 

1.7 %


 

1.6 %


 

1.3 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loan originations (in millions) (3): 


 
 
 
 
 
 
 
 
 
 
 
 
 

Total loan originations

$       3,840


 

$       3,217


 

$          3,069


 

$          3,107


 

$       2,722


 

19 %


 

41 %

Marketplace loans

$       2,819


 

$       2,360


 

$          2,308


 

$          2,471


 

$       2,182


 

19 %


 

29 %

Loan originations held for investment

$       1,021


 

$          856


 

$             761


 

$             636


 

$          541


 

19 %


 

89 %

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

27 %


 

27 %


 

25 %


 

20 %


 

20 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Servicing portfolio AUM (in millions) (4)

$      14,783


 

$      13,341


 

$          12,463


 

$          11,592


 

$      10,741


 

11 %


 

38 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Balance Sheet Data: 

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

$  3,692,667


 

$  3,049,325


 

$   2,486,440


 

$   2,235,698


 

$  1,791,492


 

21 %


 

106 %

PPP loans

$     118,794


 

$     184,986


 

$      268,297


 

$      367,558


 

$     507,553


 

(36) %


 

(77) %

Total loans and leases held for investment, net

$  3,811,461


 

$  3,234,311


 

$   2,754,737


 

$   2,603,256


 

$  2,299,045


 

18 %


 

66 %

Total assets

$  6,186,765


 

$  5,574,425


 

$   4,900,319


 

$   4,750,760


 

$  4,370,101


 

11 %


 

42 %

Total deposits

$  4,527,672


 

$  3,977,477


 

$   3,135,788


 

$   2,838,719


 

$  2,539,704


 

14 %


 

78 %

Total liabilities

$  5,107,648


 

$  4,686,991


 

$   4,050,077


 

$   3,945,970


 

$  3,607,742


 

9 %


 

42 %

Total equity

$  1,079,117


 

$     887,434


 

$      850,242


 

$      804,790


 

$     762,359


 

22 %


 

42 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Allowance Ratios: 

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

6.0 %


 

5.5 %


 

5.0 %


 

3.9 %


 

3.0 %


 
 
 
 

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

6.2 %


 

5.8 %


 

5.5 %


 

4.5 %


 

3.8 %


 
 
 
 

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

6.9 %


 

6.6 %


 

6.4 %


 

5.2 %


 

4.3 %


 
 
 
 

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

2.0 %


 

1.8 %


 

1.8 %


 

1.6 %


 

1.5 %


 
 
 
 

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

2.3 %


 

2.3 %


 

2.6 %


 

2.6 %


 

2.8 %


 
 
 
 

 

N/M – Not meaningful

N/A – Not applicable

(1) 

Second quarter 2022 income tax benefit of $135.3 million due to the release of a deferred tax asset valuation allowance. See page 3 of this release for additional information on our use of Non-GAAP Financial Measures.

(2) 

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

(3) 

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

(4) 

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

 

LENDINGCLUB CORPORATION 

LOANS AND LEASES HELD FOR INVESTMENT 

(In thousands, except percentages or as noted)

(Unaudited)


 

 

June 30, 
2022 


 

December 31,
2021 

Unsecured personal

$         2,964,950


 

$         1,804,578

Residential mortgages

176,900


 

151,362

Secured consumer

142,824


 

65,976

Total consumer loans held for investment

3,284,674


 

2,021,916

Equipment finance (1)

164,104


 

149,155

Commercial real estate

339,524


 

310,399

Commercial and industrial (2)

266,419


 

417,656

Total commercial loans and leases held for investment

770,047


 

877,210

Total loans and leases held for investment

4,054,721


 

2,899,126

Allowance for loan and lease losses

(243,260)


 

(144,389)

Loans and leases held for investment, net

$         3,811,461


 

$         2,754,737


 
 

(1) 

Comprised of sales-type leases for equipment.

(2) 

Includes $118.8 million and $268.3 million of Paycheck Protection Program (PPP) loans as of June 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, except percentages or as noted)

(Unaudited)


 

 

Three Months Ended 


 

June 30, 2022 


 

December 31, 2021 


 

Consumer 


 

Commercial 


 

Total 


 

Consumer 


 

Commercial 


 

Total 

Allowance for loan and lease losses, beginning of period

$    173,857


 

$        14,128


 

$ 187,985


 

$      88,631


 

$        16,105


 

$ 104,736

Credit loss expense for loans and leases held for investment

68,314


 

1,739


 

70,053


 

45,595


 

(306)


 

45,289

Charge-offs

(14,707)


 

(1,145)


 

(15,852)


 

(5,557)


 

(313)


 

(5,870)

Recoveries

720


 

354


 

1,074


 

143


 

91


 

234

Allowance for loan and lease losses, end of period

$    228,184


 

$        15,076


 

$ 243,260


 

$    128,812


 

$        15,577


 

$ 144,389

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

(In thousands, except share and per share data)

(Unaudited)


 

 

Three Months Ended 


 

Change (%) 


 

June 30, 
2022 


 

March 31, 
2022 


 

June 30, 
2021 


 

Q2 2022 

vs 

Q2 2021 


 

Q2 2022 

vs 

Q1 2022 

Non-interest income: 


 
 
 
 
 
 
 
 
 

Marketplace revenue (1)

$       206,384


 

$       179,966


 

$       151,735


 

36 %


 

15 %

Other non-interest income

7,448


 

9,891


 

6,741


 

10 %


 

(25) %

Total non-interest income 

213,832


 

189,857


 

158,476


 

35 %


 

13 %


 
 
 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 
 
 

Interest on loans held for sale

7,130


 

7,450


 

8,694


 

(18) %


 

(4) %

Interest and fees on loans and leases held for investment

108,911


 

91,442


 

39,068


 

179 %


 

19 %

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

5,091


 

6,969


 

16,014


 

(68) %


 

(27) %

Interest on other loans held for investment at fair value

631


 

593


 

1,222


 

(48) %


 

6 %

Interest on securities available for sale

4,426


 

4,511


 

2,539


 

74 %


 

(2) %

Other interest income

2,279


 

688


 

190


 

N/M


 

231 %

Total interest income 

128,468


 

111,653


 

67,727


 

90 %


 

15 %


 
 
 
 
 
 
 
 
 
 

Interest expense: 


 
 
 
 
 
 
 
 
 

Interest on deposits

6,078


 

3,438


 

1,699


 

258 %


 

77 %

Interest on short-term borrowings

417


 

435


 

1,003


 

(58) %


 

(4) %

Interest on retail notes, certificates and secured borrowings

5,091


 

6,969


 

16,014


 

(68) %


 

(27) %

Interest on Structured Program borrowings

360


 

764


 

2,668


 

(87) %


 

(53) %

Interest on other long-term debt

296


 

367


 

438


 

(32) %


 

(19) %

Total interest expense 

12,242


 

11,973


 

21,822


 

(44) %


 

2 %


 
 
 
 
 
 
 
 
 
 

Net interest income 

116,226


 

99,680


 

45,905


 

153 %


 

17 %


 
 
 
 
 
 
 
 
 
 

Total net revenue 

330,058


 

289,537


 

204,381


 

61 %


 

14 %


 
 
 
 
 
 
 
 
 
 

Provision for credit losses 

70,566


 

52,509


 

34,634


 

104 %


 

34 %


 
 
 
 
 
 
 
 
 
 

Non-interest expense: 


 
 
 
 
 
 
 
 
 

Compensation and benefits

85,103


 

81,610


 

71,925


 

18 %


 

4 %

Marketing

61,497


 

55,080


 

35,107


 

75 %


 

12 %

Equipment and software

12,461


 

11,046


 

9,281


 

34 %


 

13 %

Occupancy

6,209


 

6,019


 

6,157


 

1 %


 

3 %

Depreciation and amortization

10,557


 

11,039


 

11,508


 

(8) %


 

(4) %

Professional services

16,138


 

12,406


 

11,520


 

40 %


 

30 %

Other non-interest expense

17,421


 

14,004


 

14,641


 

19 %


 

24 %

Total non-interest expense 

209,386


 

191,204


 

160,139


 

31 %


 

10 %


 
 
 
 
 
 
 
 
 
 

Income before income tax benefit (expense) 

50,106


 

45,824


 

9,608


 

422 %


 

9 %

Income tax benefit (expense)

131,954


 

(4,988)


 

(237)


 

N/M


 

N/M

Net income 

$       182,060


 

$         40,836


 

$           9,371


 

N/M


 

N/M


 
 
 
 
 
 
 
 
 
 

Net income per share:  


 
 
 
 
 
 
 
 
 

Basic EPS – common stockholders

$             1.77


 

$             0.40


 

$             0.10


 

N/M


 

N/M

Diluted EPS – common stockholders

$             1.73


 

$             0.39


 

$             0.09


 

N/M


 

N/M

Weighted-average common shares – Basic

102,776,867


 

101,493,561


 

97,785,089


 

5 %


 

1 %

Weighted-average common shares – Diluted

105,042,626


 

105,052,904


 

102,031,088


 

3 %


 

— %


 

N/M – Not meaningful

(1) 

Marketplace revenue consists of the following:


 
 

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued)

(In thousands, except share and per share data)

(Unaudited)


 

 

Three Months Ended 


 

Change (%) 


 

June 30, 
2022 


 

March 31, 
2022 


 

June 30, 
2021 


 

Q2 2022 

vs 

Q2 2021 


 

Q2 2022 

vs 

Q1 2022 

Origination fees

$       149,252


 

$       122,093


 

$       113,802


 

31 %


 

22 %

Servicing fees

18,166


 

18,514


 

22,714


 

(20) %


 

(2) %

Gain on sales of loans

29,319


 

24,110


 

19,317


 

52 %


 

22 %

Net fair value adjustments

9,647


 

15,249


 

(4,098)


 

N/M


 

(37) %

Total marketplace revenue

$       206,384


 

$       179,966


 

$       151,735


 

36 %


 

15 %

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT 

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)


 

 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 


 

June 30, 
2022 


 

December 31,
2021 


 

June 30, 
2022 


 

December 31,
2021 


 

June 30, 
2022 


 

December 31,
2021 


 

June 30, 
2022 


 

December 31,
2021 

Assets 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total cash and cash equivalents

$     1,004,602


 

$       659,919


 

$          95,755


 

$         88,268


 

$         (58,377)


 

$        (61,061)


 

$     1,041,980


 

$       687,126

Restricted cash

—


 

—


 

66,044


 

76,540


 

(5,792)


 

(80)


 

60,252


 

76,460

Securities available for sale at fair value

370,567


 

205,730


 

32,427


 

57,800


 

—


 

—


 

402,994


 

263,530

Loans held for sale

62,811


 

335,449


 

—


 

55,799


 

—


 

—


 

62,811


 

391,248

Loans and leases held for investment, net

3,811,461


 

2,754,737


 

—


 

—


 

—


 

—


 

3,811,461


 

2,754,737

Retail and certificate loans held for investment at fair value

—


 

—


 

122,078


 

229,719


 

—


 

—


 

122,078


 

229,719

Other loans held for investment at fair value

—


 

—


 

20,583


 

21,240


 

—


 

—


 

20,583


 

21,240

Property, equipment and software, net

73,002


 

36,424


 

46,974


 

61,572


 

—


 

—


 

119,976


 

97,996

Investment in subsidiary

—


 

—


 

634,102


 

557,577


 

(634,102)


 

(557,577)


 

—


 

—

Goodwill

75,717


 

75,717


 

—


 

—


 

—


 

—


 

75,717


 

75,717

Other assets

264,600


 

254,075


 

230,379


 

168,042


 

(26,066)


 

(119,571)


 

468,913


 

302,546

Total assets 

5,662,760


 

4,322,051


 

1,248,342


 

1,316,557


 

(724,337)


 

(738,289)


 

6,186,765


 

4,900,319

Liabilities and Equity 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total deposits

4,591,841


 

3,196,929


 

—


 

—


 

(64,169)


 

(61,141)


 

4,527,672


 

3,135,788

Short-term borrowings

165


 

165


 

7,818


 

27,615


 

—


 

—


 

7,983


 

27,780

Advances from PPPLF

123,444


 

271,933


 

—


 

—


 

—


 

—


 

123,444


 

271,933

Retail notes, certificates and secured borrowings at fair value

—


 

—


 

122,078


 

229,719


 

—


 

—


 

122,078


 

229,719

Payable on Structured Program borrowings

—


 

—


 

15,274


 

65,451


 

—


 

—


 

15,274


 

65,451

Other long-term debt

—


 

—


 

15,300


 

15,455


 

—


 

—


 

15,300


 

15,455

Other liabilities

187,089


 

218,775


 

134,874


 

150,727


 

(26,066)


 

(65,551)


 

295,897


 

303,951

Total liabilities

4,902,539


 

3,687,802


 

295,344


 

488,967


 

(90,235)


 

(126,692)


 

5,107,648


 

4,050,077

Total equity

760,221


 

634,249


 

952,998


 

827,590


 

(634,102)


 

(611,597)


 

1,079,117


 

850,242

Total liabilities and equity 

$     5,662,760


 

$     4,322,051


 

$     1,248,342


 

$     1,316,557


 

$       (724,337)


 

$      (738,289)


 

$     6,186,765


 

$     4,900,319

 

LENDINGCLUB CORPORATION 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME BY SEGMENT 

(In thousands, except share and per share data)

(Unaudited)


 

 

Three Months Ended June 30, 2022 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$           191,087


 

$             11,167


 

$              4,130


 

$           206,384

Other non-interest income

20,041


 

3,914


 

(16,507)


 

7,448

Total non-interest income 

211,128


 

15,081


 

(12,377)


 

213,832


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

120,152


 

8,316


 

—


 

128,468

Interest expense

(6,213)


 

(6,029)


 

—


 

(12,242)

Net interest income 

113,939


 

2,287


 

—


 

116,226


 
 
 
 
 
 
 
 

Total net revenue 

325,067


 

17,368


 

(12,377)


 

330,058


 
 
 
 
 
 
 
 

Provision for credit losses

(70,566)


 

—


 

—


 

(70,566)

Non-interest expense

(196,636)


 

(25,127)


 

12,377


 

(209,386)

Income (Loss) before income tax benefit (expense) 

57,865


 

(7,759)


 

—


 

50,106

Income tax benefit (expense)

(17,318)


 

85,864


 

63,408


 

131,954

Net income 

$             40,547


 

$             78,105


 

$             63,408


 

$           182,060


 
 

 

Three Months Ended March 31, 2022 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$           164,835


 

$             15,131


 

$                   —


 

$           179,966

Other non-interest income

19,498


 

4,223


 

(13,830)


 

9,891

Total non-interest income 

184,333


 

19,354


 

(13,830)


 

189,857


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

99,823


 

11,830


 

—


 

111,653

Interest expense

(3,644)


 

(8,329)


 

—


 

(11,973)

Net interest income 

96,179


 

3,501


 

—


 

99,680


 
 
 
 
 
 
 
 

Total net revenue 

280,512


 

22,855


 

(13,830)


 

289,537


 
 
 
 
 
 
 
 

Provision for credit losses

(52,509)


 

—


 

—


 

(52,509)

Non-interest expense

(178,459)


 

(26,575)


 

13,830


 

(191,204)

Income (Loss) before income tax benefit (expense) 

49,544


 

(3,720)


 

—


 

45,824

Income tax benefit (expense)

(12,355)


 

17,727


 

(10,360)


 

(4,988)

Net income 

$             37,189


 

$             14,007


 

$            (10,360)


 

$             40,836


 
 

 

Three Months Ended June 30, 2021 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$           128,714


 

$             23,021


 

$                   —


 

$           151,735

Other non-interest income

28,340


 

4,281


 

(25,880)


 

6,741

Total non-interest income 

157,054


 

27,302


 

(25,880)


 

158,476


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

45,325


 

22,402


 

—


 

67,727

Interest expense

(1,972)


 

(19,850)


 

—


 

(21,822)

Net interest income 

43,353


 

2,552


 

—


 

45,905


 
 
 
 
 
 
 
 

Total net revenue 

200,407


 

29,854


 

(25,880)


 

204,381


 
 
 
 
 
 
 
 

Reversal of (Provision for) credit losses

(34,956)


 

322


 

—


 

(34,634)

Non-interest expense

(138,182)


 

(47,837)


 

25,880


 

(160,139)

Income (Loss) before income tax benefit (expense) 

27,269


 

(17,661)


 

—


 

9,608

Income tax benefit (expense)

12,513


 

8,922


 

(21,672)


 

(237)

Net income (loss) 

$             39,782


 

$             (8,739)


 

$            (21,672)


 

$              9,371

 

LENDINGCLUB BANK 

NET INTEREST INCOME 

(In thousands, except percentages or as noted)

(Unaudited)


 

 

LendingClub Bank 


 

Three Months Ended 

June 30, 2022 


 

Three Months Ended 

March 31, 2022 


 

Three Months Ended 

June 30, 2021 


 

Average 
Balance 


 

Interest
Income/ 
Expense 


 

Average Yield/ 
Rate 


 

Average 
Balance 


 

Interest
Income/ 
Expense 


 

Average Yield/ 
Rate 


 

Average 
Balance 


 

Interest
Income/ 
Expense 


 

Average Yield/ 
Rate 

Interest-earning assets (1) 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash, cash equivalents, restricted cash and other

$    964,161


 

$    2,214


 

0.92 %


 

$    829,707


 

$       683


 

0.33 %


 

$    551,895


 

$       186


 

0.13 %

Securities available for sale at fair value

369,012


 

2,259


 

2.45 %


 

274,089


 

1,276


 

1.86 %


 

165,579


 

348


 

0.84 %

Loans held for sale

149,506


 

6,768


 

18.11 %


 

228,529


 

6,422


 

11.24 %


 

144,037


 

5,723


 

15.89 %

Loans and leases held for investment:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unsecured personal loans

2,692,148


 

95,529


 

14.19 %


 

2,060,323


 

78,376


 

15.22 %


 

511,787


 

19,499


 

15.24 %

Secured consumer loans

268,091


 

2,351


 

3.51 %


 

232,235


 

2,275


 

3.92 %


 

532,426


 

5,173


 

3.89 %

Commercial loans and leases

644,002


 

8,732


 

5.42 %


 

620,660


 

7,588


 

4.89 %


 

623,735


 

9,062


 

5.81 %

PPP loans

149,454


 

2,299


 

6.15 %


 

222,517


 

3,203


 

5.76 %


 

615,942


 

5,334


 

3.46 %

Loans and leases held for investment

3,753,695


 

108,911


 

11.61 %


 

3,135,735


 

91,442


 

11.66 %


 

2,283,890


 

39,068


 

6.84 %

Total interest-earning assets 

5,236,374


 

120,152


 

9.18 %


 

4,468,060


 

99,823


 

8.94 %


 

3,145,401


 

45,325


 

5.76 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks

31,142


 
 
 
 
 

46,117


 
 
 
 
 

34,612


 
 
 
 

Allowance for loan and lease losses

(202,904)


 
 
 
 
 

(163,631)


 
 
 
 
 

(51,109)


 
 
 
 

Other non-interest earning assets

424,586


 
 
 
 
 

390,066


 
 
 
 
 

221,870


 
 
 
 

Total assets 

$ 5,489,198


 
 
 
 
 

$ 4,740,612


 
 
 
 
 

$ 3,350,774


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing deposits


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Checking and money market accounts

$ 2,463,710


 

$    2,664


 

0.43 %


 

$ 2,240,450


 

$    1,724


 

0.31 %


 

$ 2,071,112


 

$    1,618


 

0.31 %

Savings accounts and certificates of deposit

1,555,607


 

3,414


 

0.88 %


 

1,071,133


 

1,714


 

0.65 %


 

301,939


 

81


 

0.11 %

Interest-bearing deposits

4,019,317


 

6,078


 

0.61 %


 

3,311,583


 

3,438


 

0.42 %


 

2,373,051


 

1,699


 

0.29 %

Short-term borrowings

164


 

—


 

— %


 

165


 

—


 

— %


 

2,138


 

1


 

0.06 %

Advances from PPPLF

151,278


 

135


 

0.36 %


 

234,872


 

206


 

0.35 %


 

312,168


 

272


 

0.35 %

Other long-term debt

—


 

—


 

— %


 

—


 

—


 

— %


 

708


 

—


 

— %

Total interest-bearing liabilities 

4,170,759


 

6,213


 

0.60 %


 

3,546,620


 

3,644


 

0.42 %


 

2,688,065


 

1,972


 

0.29 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest bearing deposits

399,949


 
 
 
 
 

300,218


 
 
 
 
 

102,709


 
 
 
 

Other liabilities

163,095


 
 
 
 
 

232,018


 
 
 
 
 

100,835


 
 
 
 

Total liabilities 

$ 4,733,803


 
 
 
 
 

$ 4,078,856


 
 
 
 
 

$ 2,891,609


 
 
 
 

Total equity 

$    755,395


 
 
 
 
 

$    661,756


 
 
 
 
 

$    459,165


 
 
 
 

Total liabilities and equity 

$ 5,489,198


 
 
 
 
 

$ 4,740,612


 
 
 
 
 

$ 3,350,774


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread 


 
 
 
 

8.58 %


 
 
 
 
 

8.52 %


 
 
 
 
 

5.47 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income and net interest margin 


 
 

$  113,939


 

8.70 %


 
 
 

$  96,179


 

8.61 %


 
 
 

$  43,353


 

5.51 %


 
 

(1) 

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

 

LENDINGCLUB CORPORATION 

NET INTEREST INCOME (Continued)

(In thousands, except percentages or as noted)

(Unaudited)


 

 

Consolidated LendingClub Corporation (1) 


 

Three Months Ended 

June 30, 2022 


 

Three Months Ended 

March 31, 2022 


 

Three Months Ended 

June 30, 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

$ 1,023,192


 

$    2,279


 

0.89 %


 

$    892,921


 

$        688


 

0.31 %


 

$    642,182


 

$       190


 

0.12 %

Securities available for sale at fair value

409,327


 

4,426


 

4.32 %


 

325,155


 

4,511


 

5.55 %


 

273,956


 

2,539


 

3.71 %

Loans held for sale

156,503


 

7,130


 

18.22 %


 

255,139


 

7,450


 

11.68 %


 

243,445


 

8,694


 

14.29 %

Loans and leases held for investment:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unsecured personal loans

2,692,148


 

95,529


 

14.19 %


 

2,060,323


 

78,376


 

15.22 %


 

511,787


 

19,499


 

15.24 %

Secured consumer loans

268,091


 

2,351


 

3.51 %


 

232,235


 

2,275


 

3.92 %


 

532,426


 

5,173


 

3.89 %

Commercial loans and leases

644,002


 

8,732


 

5.42 %


 

620,660


 

7,588


 

4.89 %


 

623,735


 

9,062


 

5.81 %

PPP loans

149,454


 

2,299


 

6.15 %


 

222,517


 

3,203


 

5.76 %


 

615,942


 

5,334


 

3.46 %

Loans and leases held for investment

3,753,695


 

108,911


 

11.61 %


 

3,135,735


 

91,442


 

11.66 %


 

2,283,890


 

39,068


 

6.84 %

Retail and certificate loans held for investment at fair value

144,613


 

5,091


 

14.08 %


 

198,813


 

6,969


 

14.02 %


 

448,822


 

16,014


 

14.27 %

Other loans held for investment at fair value

16,991


 

631


 

14.85 %


 

18,523


 

593


 

12.80 %


 

38,662


 

1,222


 

12.64 %

Total interest-earning assets 

5,504,321


 

128,468


 

9.34 %


 

4,826,286


 

111,653


 

9.25 %


 

3,930,957


 

67,727


 

6.89 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks and restricted cash

75,517


 
 
 
 
 

92,683


 
 
 
 
 

144,897


 
 
 
 

Allowance for loan and lease losses

(202,904)


 
 
 
 
 

(163,631)


 
 
 
 
 

(51,109)


 
 
 
 

Other non-interest earning assets

490,412


 
 
 
 
 

486,363


 
 
 
 
 

447,826


 
 
 
 

Total assets 

$ 5,867,346


 
 
 
 
 

$ 5,241,701


 
 
 
 
 

$ 4,472,571


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing deposits:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Checking and money market accounts

$ 2,463,710


 

$    2,664


 

0.43 %


 

$ 2,240,450


 

$     1,724


 

0.31 %


 

$ 2,071,112


 

$    1,618


 

0.31 %

Savings accounts and certificates of deposit

1,555,607


 

3,414


 

0.88 %


 

1,071,133


 

1,714


 

0.64 %


 

301,939


 

81


 

0.11 %

Interest-bearing deposits

4,019,317


 

6,078


 

0.61 %


 

3,311,583


 

3,438


 

0.42 %


 

2,373,051


 

1,699


 

0.29 %

Short-term borrowings

10,874


 

417


 

15.35 %


 

20,371


 

435


 

8.56 %


 

79,511


 

1,003


 

5.05 %

Advances from PPPLF

151,278


 

135


 

0.36 %


 

234,872


 

206


 

0.35 %


 

312,168


 

272


 

0.35 %

Retail notes, certificates and secured borrowings

144,613


 

5,091


 

14.08 %


 

198,813


 

6,969


 

14.02 %


 

449,057


 

16,014


 

14.27 %

Structured Program borrowings

18,439


 

360


 

7.81 %


 

42,026


 

764


 

7.29 %


 

121,738


 

2,668


 

8.77 %

Other long-term debt

15,357


 

161


 

4.20 %


 

15,421


 

161


 

4.19 %


 

16,404


 

166


 

4.04 %

Total interest-bearing liabilities 

4,359,878


 

12,242


 

1.12 %


 

3,823,086


 

11,973


 

1.25 %


 

3,351,929


 

21,822


 

2.61 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest bearing deposits

292,750


 
 
 
 
 

227,337


 
 
 
 
 

92,588


 
 
 
 

Other liabilities

261,795


 
 
 
 
 

319,241


 
 
 
 
 

276,723


 
 
 
 

Total liabilities 

$ 4,914,423


 
 
 
 
 

$ 4,369,664


 
 
 
 
 

$ 3,721,240


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total equity 

$    952,922


 
 
 
 
 

$    872,037


 
 
 
 
 

$    751,331


 
 
 
 

Total liabilities and equity 

$ 5,867,345


 
 
 
 
 

$ 5,241,701


 
 
 
 
 

$ 4,472,571


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread 


 
 
 
 

8.21 %


 
 
 
 
 

8.00 %


 
 
 
 
 

4.29 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income and net interest margin 


 
 

$  116,226


 

8.45 %


 
 
 

$   99,680


 

8.26 %


 
 
 

$  45,905


 

4.67 %


 
 

(1) 

Consolidated presentation reflects intercompany eliminations.

(2) 

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

 

LENDINGCLUB CORPORATION 

CONSOLIDATED BALANCE SHEETS 

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)


 

 

June 30, 
2022 


 

December 31,
2021 

Assets 


 
 
 

Cash and due from banks

$            26,415


 

$         35,670

Interest-bearing deposits in banks

1,015,565


 

651,456

Total cash and cash equivalents

1,041,980


 

687,126

Restricted cash

60,252


 

76,460

Securities available for sale at fair value ($435,451 and $256,170 at amortized cost, respectively)

402,994


 

263,530

Loans held for sale (includes $62,811 and $142,370 at fair value, respectively)

62,811


 

391,248

Loans and leases held for investment

4,054,721


 

2,899,126

Allowance for loan and lease losses

(243,260)


 

(144,389)

Loans and leases held for investment, net

3,811,461


 

2,754,737

Retail and certificate loans held for investment at fair value

122,078


 

229,719

Other loans held for investment at fair value

20,583


 

21,240

Property, equipment and software, net

119,976


 

97,996

Goodwill

75,717


 

75,717

Other assets

468,913


 

302,546

Total assets 

$        6,186,765


 

$     4,900,319

Liabilities and Equity 


 
 
 

Deposits:


 
 
 

Interest-bearing

$        4,261,651


 

$     2,919,203

Noninterest-bearing

266,021


 

216,585

Total deposits

4,527,672


 

3,135,788

Short-term borrowings

7,983


 

27,780

Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

123,444


 

271,933

Retail notes, certificates and secured borrowings at fair value

122,078


 

229,719

Payable on Structured Program borrowings

15,274


 

65,451

Other long-term debt

15,300


 

15,455

Other liabilities

295,897


 

303,951

Total liabilities

5,107,648


 

4,050,077

Equity


 
 
 

Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 shares issued and outstanding

—


 

—

Common stock, $0.01 par value; 180,000,000 shares authorized; 103,630,776 and 101,043,924 shares issued and outstanding, respectively

1,036


 

1,010

Additional paid-in capital

1,594,458


 

1,559,616

Accumulated deficit

(494,534)


 

(717,430)

Accumulated other comprehensive income (loss)

(21,843)


 

7,046

Total equity

1,079,117


 

850,242

Total liabilities and equity 

$        6,186,765


 

$     4,900,319

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-second-quarter-2022-results-301594578.html

SOURCE LendingClub Corporation