Release Details

LendingClub Reports Third Quarter 2022 Results

October 26, 2022
PDF Version

Revenue Increased 24% Year Over Year to $304.9 Million

Diluted Earnings Per Share Increased 58% Year Over Year to $0.41

Total Assets Grew 43% Year Over Year to $6.8 Billion

SAN FRANCISCO, Oct. 26, 2022  /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the third quarter ended September 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.

"We delivered solid results as we leaned into the strategic advantages of our digital bank in the face of a less favorable economic environment. We drove growth in recurring interest income supported by strong credit performance of our retained high-quality prime loan portfolio," said Scott Sanborn, LendingClub CEO. "As we anticipated, marketplace volumes were impacted by higher funding costs for certain loan investors, driven by rapidly increasing interest rates. Over time, as rates stabilize and we continue to reprice personal loans, we expect this impact to gradually moderate. Our digital bank and other strategic advantages position us to continue to effectively navigate the evolving economy and to capitalize on attractive growth opportunities as they emerge."

Third Quarter 2022 Results 

 
  • Loan originations were $3.5 billion, up 14% year over year.

 
  • Total net revenue of $304.9 million grew 24% year over year, driven by growth in net interest income.

 
  •  
    • Net interest income, a recurring stream of earnings for the company, increased 89% year over year to $123.7 million.

 
  •  
    •  
      • Total loans held for investment (excluding PPP) grew 97% to $4.4 billion from September 30, 2021, reflecting growth in personal loan originations held for investment in the quarter of $1.2 billion, or 33% of total originations.

 
  •  
    •  
      • Net interest margin expanded to 8.3% from 6.3% a year earlier, primarily reflecting a greater mix of personal loans which generate a higher yield than the rest of the loans held for investment.

 
  •  
    • Marketplace revenue of $173.8 million remained flat year over year, roughly in line with marketplace sales as the company retained a higher percentage of loan originations to drive growth in recurring revenue.

 
  • Deposits of $5.1 billion were up 80% from September 30, 2021, primarily reflecting growth in online savings deposits.

 
  • Credit quality of the company's held-for-investment loan portfolio remained strong, with delinquency rates gradually normalizing as the portfolio seasons. The strong credit performance of the held-for-investment portfolio reflects the high quality credit profile of our borrowers with an average FICO of 730.

 
  • Provision for credit losses of $82.7 million primarily reflects $1.2 billion of quarterly loan originations held for investment and loan portfolio growth of 97% year over year.

 
  • The efficiency ratio improved to 61% from 73% in the third quarter of 2021 due to improved marketing efficiency, prudent management of non-marketing expenses and strong growth in net interest income.

 
  • Net income of $43.2 million increased $16.0 million year over year. Net income for the third quarter of 2022 included an income tax benefit of $7.2 million. The earnings from the tax benefit enabled higher loan retention.

 
  • Diluted earnings per share of $0.41 grew 58% year over year. The improvement from a year earlier primarily reflected revenue growth and improved operating efficiency, as well as a $0.05 per share benefit from the reversal of the deferred tax asset valuation allowance.

 
  • Total equity of $1.1 billion was up $316.6 million, or 39%, from September 30, 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 $10.67 increased 32% from September 30, 2021. Tangible book value per common share of $9.78 increased 38% from September 30, 2021.

 
  • Substantial capital with a consolidated Tier 1 leverage ratio of 15.7% and consolidated Common Equity Tier 1 capital ratio of 18.3%.

 
  • Pre-tax, pre-provision income of $118.7 million increased 76% year over year, driven by revenue growth and improved operating efficiency.

 


 

Three Months Ended 

($ in millions, except per share amounts)

September 30, 
2022 


 

June 30, 
2022 


 

September 30, 
2021 

Total net revenue

$            304.9


 

$          330.1


 

$            246.2

Non-interest expense

186.2


 

209.4


 

178.8

Pre-tax, pre-provision income

118.7


 

120.7


 

67.4


 
 
 
 
 
 

Provision for credit losses

82.7


 

70.6


 

37.5


 
 
 
 
 
 

Income before income tax benefit (expense)

36.0


 

50.1


 

29.9

Income tax benefit (expense)

7.2


 

132.0


 

(2.7)

Net income

$              43.2


 

$          182.1


 

$              27.2

Diluted EPS

$              0.41


 

$            1.73


 

$              0.26


 
 
 
 
 
 

Income tax benefit from release of tax valuation allowance

$               5.0


 

$          135.3


 

$                —

Net income excluding income tax benefit (1)

$              38.2


 

$            46.8


 

$              27.2

Diluted EPS excluding income tax benefit (1)

$              0.36


 

$            0.45


 

$              0.26


 
 

(1)    

Third and second quarters of 2022 include income tax benefit of $5.0 million and $135.3 million, respectively, 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.

For a calculation of 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 

The company provided full year net revenue and net income guidance for 2022.


 

Fourth Quarter 

2022 

Full Year 

2022 

Total net revenue

$255M to $265M

$1,180M to $1,190M

Net income

$15M to $25M

$280M to $290M

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 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 third 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, October 26, 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 659586, 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 November 2, 2022, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 037801. 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, 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 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. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in the 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 on page 16 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)


 

 

As of and for the three months ended 


 

% Change 


 

September 30, 
2022 


 

June 30, 
2022 


 

March 31, 

2022 


 

December 31, 

2021 


 

September 30, 
2021 


 

Q/Q 


 

Y/Y 

Operating Highlights: 

Non-interest income

$      181,237


 

$  213,832


 

$  189,857


 

$     179,111


 

$      180,878


 

(15) %


 

— %

Net interest income

123,676


 

116,226


 

99,680


 

83,132


 

65,288


 

6 %


 

89 %

Total net revenue

304,913


 

330,058


 

289,537


 

262,243


 

246,166


 

(8) %


 

24 %

Non-interest expense

186,219


 

209,386


 

191,204


 

188,220


 

178,775


 

(11) %


 

4 %

Pre-tax, pre-provision income

118,694


 

120,672


 

98,333


 

74,023


 

67,391


 

(2) %


 

76 %

Provision for credit losses

82,739


 

70,566


 

52,509


 

45,149


 

37,524


 

17 %


 

120 %

Income before income tax benefit (expense)

35,955


 

50,106


 

45,824


 

28,874


 

29,867


 

(28) %


 

20 %

Income tax benefit (expense)

7,243


 

131,954


 

(4,988)


 

234


 

(2,682)


 

N/M


 

N/M

Net income

43,198


 

182,060


 

40,836


 

29,108


 

27,185


 

(76) %


 

59 %

Income tax benefit from release of tax 
valuation allowance

5,015


 

135,300


 

—


 

—


 

—


 

N/M


 

N/M

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

$        38,183


 

$    46,760


 

$    40,836


 

$       29,108


 

$        27,185


 

(18) %


 

40 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic EPS – common stockholders

$            0.41


 

$        1.77


 

$        0.40


 

$           0.29


 

$            0.27


 

(77) %


 

52 %

Diluted EPS – common stockholders

$            0.41


 

$        1.73


 

$        0.39


 

$           0.27


 

$            0.26


 

(76) %


 

58 %

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

$            0.36


 

$        0.45


 

$        0.39


 

$           0.27


 

$            0.26


 

(20) %


 

38 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Corporation Performance Metrics: 

Net interest margin

8.3 %


 

8.5 %


 

8.3 %


 

7.6 %


 

6.3 %


 
 
 
 

Efficiency ratio(3)

61.1 %


 

63.4 %


 

66.0 %


 

71.8 %


 

72.6 %


 
 
 
 

Return on average equity (ROE)

14.2 %


 

33.8 %


 

18.7 %


 

14.1 %


 

13.8 %


 
 
 
 

Return on average total assets (ROA)

2.5 %


 

5.5 %


 

3.1 %


 

2.4 %


 

2.4 %


 
 
 
 

Marketing expense as a % of loan 
originations

1.3 %


 

1.6 %


 

1.7 %


 

1.7 %


 

1.6 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

LendingClub Corporation Capital Metrics: 

Common Equity Tier 1 Capital Ratio

18.3 %


 

20.0 %


 

20.6 %


 

21.3 %


 

22.8 %


 
 
 
 

Tier 1 Leverage Ratio

15.7 %


 

16.2 %


 

15.6 %


 

16.5 %


 

16.2 %


 
 
 
 

Book Value per Common Share

$          10.67


 

$      10.41


 

$        8.68


 

$           8.41


 

$            8.07


 

2 %


 

32 %

Tangible Book Value per Common Share(2)

$            9.78


 

$        9.50


 

$        7.75


 

$           7.46


 

$            7.08


 

3 %


 

38 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loan originations (in millions)(4): 


 
 
 
 
 
 
 
 
 
 
 
 
 

Total loan originations

$          3,539


 

$      3,840


 

$      3,217


 

$         3,069


 

$          3,107


 

(8) %


 

14 %

Marketplace loans

$          2,386


 

$      2,819


 

$      2,360


 

$         2,308


 

$          2,471


 

(15) %


 

(3) %

Loan originations held for investment

$          1,153


 

$      1,021


 

$         856


 

$            761


 

$             636


 

13 %


 

81 %

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

33 %


 

27 %


 

27 %


 

25 %


 

20 %


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Servicing portfolio AUM (in millions)(5): 

Total servicing portfolio

$          15,929


 

$    14,783


 

$    13,341


 

$         12,463


 

$          11,592


 

8 %


 

37 %

Loans serviced for others

$          11,807


 

$    11,382


 

$    10,475


 

$         10,124


 

$            9,744


 

4 %


 

21 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Balance Sheet Data: 

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

$   4,414,347


 

$  3,692,667


 

$  3,049,325


 

$  2,486,440


 

$   2,235,698


 

20 %


 

97 %

PPP loans

$        89,379


 

$  118,794


 

$  184,986


 

$     268,297


 

$      367,558


 

(25) %


 

(76) %

Total loans and leases held for investment, 
net

$   4,503,726


 

$  3,811,461


 

$  3,234,311


 

$  2,754,737


 

$   2,603,256


 

18 %


 

73 %

Total assets

$   6,775,074


 

$  6,186,765


 

$  5,574,425


 

$  4,900,319


 

$   4,750,760


 

10 %


 

43 %

Total deposits

$   5,123,506


 

$  4,527,672


 

$  3,977,477


 

$  3,135,788


 

$   2,838,719


 

13 %


 

80 %

Total liabilities

$   5,653,664


 

$  5,107,648


 

$  4,686,991


 

$  4,050,077


 

$   3,945,970


 

11 %


 

43 %

Total equity

$   1,121,410


 

$  1,079,117


 

$  887,434


 

$     850,242


 

$      804,790


 

4 %


 

39 %


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Allowance Ratios: 

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

6.3 %


 

6.0 %


 

5.5 %


 

5.0 %


 

3.9 %


 
 
 
 

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

6.4 %


 

6.2 %


 

5.8 %


 

5.5 %


 

4.5 %


 
 
 
 

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

7.2 %


 

6.9 %


 

6.6 %


 

6.4 %


 

5.2 %


 
 
 
 

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

1.9 %


 

2.0 %


 

1.8 %


 

1.8 %


 

1.6 %


 
 
 
 

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

2.2 %


 

2.3 %


 

2.3 %


 

2.6 %


 

2.6 %


 
 
 
 

 
 

N/M

– Not meaningful

N/A

– Not applicable

(1) 

Excludes third and second quarter 2022 income tax benefit of $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance.

(2) 

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

(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.

 

LENDINGCLUB CORPORATION 
LOANS AND LEASES HELD FOR INVESTMENT 
(In thousands)
(Unaudited)


 

 

September 30, 
2022 


 

December 31, 
2021 

Unsecured personal

$         3,642,254


 

$         1,804,578

Residential mortgages

197,776


 

151,362

Secured consumer

180,768


 

65,976

Total consumer loans held for investment

4,020,798


 

2,021,916

Equipment finance (1)

167,447


 

149,155

Commercial real estate

372,406


 

310,399

Commercial and industrial (2)

246,276


 

417,656

Total commercial loans and leases held for investment

786,129


 

877,210

Total loans and leases held for investment

4,806,927


 

2,899,126

Allowance for loan and lease losses

(303,201)


 

(144,389)

Loans and leases held for investment, net

$         4,503,726


 

$         2,754,737


 
 

(1) 

Comprised of sales-type leases for equipment.

(2) 

Includes $89.4 million and $268.3 million of Paycheck Protection Program (PPP) loans as of 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)


 

 

Three Months Ended 


 

September 30, 2022 


 

June 30, 2022 


 

Consumer 


 

Commercial 


 

Total 


 

Consumer 


 

Commercial 


 

Total 

Allowance for loan and lease 
losses, beginning of period

$    228,184


 

$        15,076


 

$ 243,260


 

$    173,857


 

$        14,128


 

$ 187,985

Credit loss expense for loans 
and leases held for investment

81,935


 

664


 

82,599


 

68,314


 

1,739


 

70,053

Charge-offs

(22,944)


 

(784)


 

(23,728)


 

(14,707)


 

(1,145)


 

(15,852)

Recoveries

963


 

107


 

1,070


 

720


 

354


 

1,074

Allowance for loan and lease 
losses, end of period

$    288,138


 

$        15,063


 

$ 303,201


 

$    228,184


 

$        15,076


 

$ 243,260

 


 

Three Months Ended 


 

September 30, 2021 


 

Consumer 


 

Commercial 


 

Total 

Allowance for loan and lease losses, beginning of period

$      54,058


 

$        17,023


 

$   71,081

Credit loss expense for loans and leases held for investment

37,695


 

(562)


 

37,133

Charge-offs

(3,142)


 

(1,194)


 

(4,336)

Recoveries

20


 

838


 

858

Allowance for loan and lease losses, end of period

$      88,631


 

$        16,105


 

$ 104,736

 

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


 

 

Three Months Ended 


 

Change (%) 


 

September 30, 
2022 


 

June 30, 
2022 


 

September 30, 
2021 


 

Q3 2022 

vs 

Q3 2021 


 

Q3 2022 

vs 

Q2 2022 

Non-interest income: 


 
 
 
 
 
 
 
 
 

Marketplace revenue (1)

$        173,837


 

$      206,384


 

$        174,556


 

— %


 

(16) %

Other non-interest income

7,400


 

7,448


 

6,322


 

17 %


 

(1) %

Total non-interest income 

181,237


 

213,832


 

180,878


 

— %


 

(15) %


 
 
 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 
 
 

Interest on loans held for sale

5,879


 

7,130


 

8,536


 

(31) %


 

(18) %

Interest and fees on loans and leases held
for investment

124,028


 

108,911


 

57,644


 

115 %


 

14 %

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

3,685


 

5,091


 

12,172


 

(70) %


 

(28) %

Interest on other loans held for investment 
at fair value

791


 

631


 

973


 

(19) %


 

25 %

Interest on securities available for sale

3,820


 

4,426


 

3,180


 

20 %


 

(14) %

Other interest income

5,017


 

2,279


 

355


 

N/M


 

120 %

Total interest income 

143,220


 

128,468


 

82,860


 

73 %


 

11 %


 
 
 
 
 
 
 
 
 
 

Interest expense: 


 
 
 
 
 
 
 
 
 

Interest on deposits

15,184


 

6,078


 

1,899


 

700 %


 

150 %

Interest on short-term borrowings

87


 

417


 

849


 

(90) %


 

(79) %

Interest on retail notes, certificates and 
secured borrowings

3,685


 

5,091


 

12,172


 

(70) %


 

(28) %

Interest on Structured Program borrowings

225


 

360


 

2,120


 

(89) %


 

(38) %

Interest on other long-term debt

363


 

296


 

532


 

(32) %


 

23 %

Total interest expense 

19,544


 

12,242


 

17,572


 

11 %


 

60 %


 
 
 
 
 
 
 
 
 
 

Net interest income 

123,676


 

116,226


 

65,288


 

89 %


 

6 %


 
 
 
 
 
 
 
 
 
 

Total net revenue 

304,913


 

330,058


 

246,166


 

24 %


 

(8) %


 
 
 
 
 
 
 
 
 
 

Provision for credit losses 

82,739


 

70,566


 

37,524


 

120 %


 

17 %


 
 
 
 
 
 
 
 
 
 

Non-interest expense: 


 
 
 
 
 
 
 
 
 

Compensation and benefits

84,916


 

85,103


 

73,304


 

16 %


 

— %

Marketing

46,031


 

61,497


 

50,782


 

(9) %


 

(25) %

Equipment and software

12,491


 

12,461


 

10,297


 

21 %


 

— %

Occupancy

5,051


 

6,209


 

6,486


 

(22) %


 

(19) %

Depreciation and amortization

10,681


 

10,557


 

10,549


 

1 %


 

1 %

Professional services

11,943


 

16,138


 

11,750


 

2 %


 

(26) %

Other non-interest expense

15,106


 

17,421


 

15,607


 

(3) %


 

(13) %

Total non-interest expense 

186,219


 

209,386


 

178,775


 

4 %


 

(11) %


 
 
 
 
 
 
 
 
 
 

Income before income tax benefit (expense) 

35,955


 

50,106


 

29,867


 

20 %


 

(28) %

Income tax benefit (expense)

7,243


 

131,954


 

(2,682)


 

N/M


 

N/M

Net income 

$          43,198


 

$      182,060


 

$          27,185


 

59 %


 

(76) %


 
 
 
 
 
 
 
 
 
 

Net income per share:  


 
 
 
 
 
 
 
 
 

Basic EPS – common stockholders

$              0.41


 

$           1.77


 

$             0.27


 

52 %


 

(77) %

Diluted EPS – common stockholders

$              0.41


 

$           1.73


 

$             0.26


 

58 %


 

(76) %

Weighted-average common shares – Basic

104,215,594


 

102,776,867


 

99,073,507


 

5 %


 

1 %

Weighted-average common shares – Diluted

105,853,938


 

105,042,626


 

106,108,662


 

— %


 

1 %


 
 

N/M

– Not meaningful

(1) 

Marketplace revenue consists of the following:

 


 

Three Months Ended 


 

Change (%) 


 

September 30, 
2022 


 

June 30, 
2022 


 

September 30, 
2021 


 

Q3 2022 

vs 

Q3 2021 


 

Q3 2022 

vs 

Q2 2022 

Origination fees

$        127,142


 

$     149,252


 

$       129,125


 

(2) %


 

(15) %

Servicing fees

23,760


 

18,166


 

20,819


 

14 %


 

31 %

Gain on sales of loans

23,554


 

29,319


 

21,907


 

8 %


 

(20) %

Net fair value adjustments

(619)


 

9,647


 

2,705


 

(123) %


 

(106) %

Total marketplace revenue

$        173,837


 

$     206,384


 

$       174,556


 

— %


 

(16) %

 

LENDINGCLUB CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT 
(In Thousands)
(Unaudited)


 

 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 


 

September 30, 
2022 


 

December 31, 2021 


 

September 30, 
2022 


 

December 31, 2021 


 

September 30, 
2022 


 

December 31, 2021 


 

September 30, 
2022 


 

December 31, 2021 

Assets 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total cash and cash equivalents

$        896,519


 

$       659,919


 

$        109,200


 

$         88,268


 

$        (52,878)


 

$        (61,061)


 

$        952,841


 

$       687,126

Restricted cash

—


 

—


 

78,746


 

76,540


 

(12,461)


 

(80)


 

66,285


 

76,460

Securities available for sale at fair value

338,096


 

205,730


 

21,061


 

57,800


 

—


 

—


 

359,157


 

263,530

Loans held for sale

90,058


 

335,449


 

—


 

55,799


 

—


 

—


 

90,058


 

391,248

Loans and leases held for investment, net

4,503,726


 

2,754,737


 

—


 

—


 

—


 

—


 

4,503,726


 

2,754,737

Retail and certificate loans held for investment at fair value

—


 

—


 

87,144


 

229,719


 

—


 

—


 

87,144


 

229,719

Other loans held for investment at fair value

—


 

—


 

15,057


 

21,240


 

—


 

—


 

15,057


 

21,240

Property, equipment and software, net

89,576


 

36,424


 

40,381


 

61,572


 

—


 

—


 

129,957


 

97,996

Investment in subsidiary

—


 

—


 

671,574


 

557,577


 

(671,574)


 

(557,577)


 

—


 

—

Goodwill

75,717


 

75,717


 

—


 

—


 

—


 

—


 

75,717


 

75,717

Other assets

305,456


 

254,075


 

207,556


 

168,042


 

(17,880)


 

(119,571)


 

495,132


 

302,546

Total assets 

6,299,148


 

4,322,051


 

1,230,719


 

1,316,557


 

(754,793)


 

(738,289)


 

6,775,074


 

4,900,319

Liabilities and Equity 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total deposits

5,188,845


 

3,196,929


 

—


 

—


 

(65,339)


 

(61,141)


 

5,123,506


 

3,135,788

Short-term borrowings

165


 

165


 

4,638


 

27,615


 

—


 

—


 

4,803


 

27,780

Advances from PPPLF

91,671


 

271,933


 

—


 

—


 

—


 

—


 

91,671


 

271,933

Retail notes, certificates and secured borrowings at fair value

—


 

—


 

87,144


 

229,719


 

—


 

—


 

87,144


 

229,719

Payable on Structured Program borrowings

—


 

—


 

11,185


 

65,451


 

—


 

—


 

11,185


 

65,451

Other long-term debt

—


 

—


 

15,300


 

15,455


 

—


 

—


 

15,300


 

15,455

Other liabilities

205,814


 

218,775


 

132,121


 

150,727


 

(17,880)


 

(65,551)


 

320,055


 

303,951

Total liabilities

5,486,495


 

3,687,802


 

250,388


 

488,967


 

(83,219)


 

(126,692)


 

5,653,664


 

4,050,077

Total equity

812,653


 

634,249


 

980,331


 

827,590


 

(671,574)


 

(611,597)


 

1,121,410


 

850,242

Total liabilities and equity 

$     6,299,148


 

$     4,322,051


 

$     1,230,719


 

$     1,316,557


 

$      (754,793)


 

$      (738,289)


 

$     6,775,074


 

$     4,900,319

 

LENDINGCLUB CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME BY SEGMENT 
(In thousands)
(Unaudited)


 

 

Three Months Ended September 30, 2022 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$           153,504


 

$              9,015


 

$             11,318


 

$           173,837

Other non-interest income

25,240


 

4,794


 

(22,634)


 

7,400

Total non-interest income 

178,744


 

13,809


 

(11,316)


 

181,237


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

137,142


 

6,078


 

—


 

143,220

Interest expense

(15,277)


 

(4,267)


 

—


 

(19,544)

Net interest income 

121,865


 

1,811


 

—


 

123,676


 
 
 
 
 
 
 
 

Total net revenue 

300,609


 

15,620


 

(11,316)


 

304,913


 
 
 
 
 
 
 
 

Provision for credit losses

(82,739)


 

—


 

—


 

(82,739)

Non-interest expense

(177,714)


 

(19,821)


 

11,316


 

(186,219)

Income (Loss) before income tax benefit (expense) 

40,156


 

(4,201)


 

—


 

35,955

Income tax benefit (expense)

(9,440)


 

16,683


 

—


 

7,243

Net income 

$             30,716


 

$             12,482


 

$                   —


 

$             43,198


 

 

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 September 30, 2021 


 

LendingClub 

Bank 


 

LendingClub 

Corporation 

(Parent only) 


 

Intercompany 

Eliminations 


 

Total 

Non-interest income: 


 
 
 
 
 
 
 

Marketplace revenue

$           151,109


 

$             23,447


 

$                   —


 

$           174,556

Other non-interest income

25,393


 

4,140


 

(23,211)


 

6,322

Total non-interest income 

176,502


 

27,587


 

(23,211)


 

180,878


 
 
 
 
 
 
 
 

Interest income: 


 
 
 
 
 
 
 

Interest income

64,606


 

18,254


 

—


 

82,860

Interest expense

(2,270)


 

(15,302)


 

—


 

(17,572)

Net interest income 

62,336


 

2,952


 

—


 

65,288


 
 
 
 
 
 
 
 

Total net revenue 

238,838


 

30,539


 

(23,211)


 

246,166


 
 
 
 
 
 
 
 

(Provision for) reversal of credit losses

(38,019)


 

495


 

—


 

(37,524)

Non-interest expense

(161,101)


 

(40,885)


 

23,211


 

(178,775)

Income (Loss) before income tax benefit (expense) 

39,718


 

(9,851)


 

—


 

29,867

Income tax benefit (expense)

(4,670)


 

12,607


 

(10,619)


 

(2,682)

Net income 

$             35,048


 

$              2,756


 

$            (10,619)


 

$             27,185

 

LENDINGCLUB CORPORATION 
NET INTEREST INCOME 
(In thousands, except percentages or as noted)
(Unaudited)


 

 
 

 

Consolidated LendingClub Corporation (1) 


 

 

Three Months Ended 

September 30, 2022 


 

Three Months Ended 

June 30, 2022 


 

Three Months Ended 

September 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

$    893,655


 

$    5,017


 

2.25 %


 

$ 1,023,192


 

$     2,279


 

0.89 %


 

$    778,667


 

$       355


 

0.18 %


 

Securities available for sale at fair value

396,556


 

3,820


 

3.85 %


 

409,327


 

4,426


 

4.32 %


 

266,686


 

3,180


 

4.77 %


 

Loans held for sale

126,487


 

5,879


 

18.59 %


 

156,503


 

7,130


 

18.22 %


 

226,422


 

8,536


 

15.08 %


 

Loans and leases held for investment:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unsecured personal loans

3,268,649


 

110,446


 

13.52 %


 

2,692,148


 

95,529


 

14.19 %


 

991,297


 

39,532


 

15.95 %


 

Secured consumer loans

337,191


 

3,039


 

3.60 %


 

268,091


 

2,351


 

3.51 %


 

464,194


 

4,688


 

4.04 %


 

Commercial loans and leases

692,783


 

9,262


 

5.35 %


 

644,002


 

8,732


 

5.42 %


 

616,823


 

7,887


 

5.11 %


 

PPP loans

105,500


 

1,281


 

4.86 %


 

149,454


 

2,299


 

6.15 %


 

436,785


 

5,537


 

5.07 %


 

Loans and leases held for investment

4,404,123


 

124,028


 

11.26 %


 

3,753,695


 

108,911


 

11.61 %


 

2,509,099


 

57,644


 

9.19 %


 

Retail and certificate loans held for investment at fair value

104,010


 

3,685


 

14.17 %


 

144,613


 

5,091


 

14.08 %


 

344,205


 

12,172


 

14.15 %


 

Other loans held for investment at fair value

17,763


 

791


 

17.83 %


 

16,991


 

631


 

14.85 %


 

30,981


 

973


 

12.58 %


 

Total interest-earning assets 

5,942,594


 

143,220


 

9.64 %


 

5,504,321


 

128,468


 

9.34 %


 

4,156,060


 

82,860


 

7.97 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks and restricted cash

58,411


 
 
 
 
 

75,517


 
 
 
 
 

96,733


 
 
 
 
 

Allowance for loan and lease losses

(254,849)


 
 
 
 
 

(202,904)


 
 
 
 
 

(86,686)


 
 
 
 
 

Other non-interest earning assets

597,169


 
 
 
 
 

490,412


 
 
 
 
 

449,964


 
 
 
 
 

Total assets 

$ 6,343,325


 
 
 
 
 

$ 5,867,346


 
 
 
 
 

$ 4,616,071


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing deposits:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Checking and money market accounts

$ 2,192,904


 

$    4,575


 

0.83 %


 

$ 2,463,710


 

$     2,664


 

0.43 %


 

$ 2,221,365


 

$    1,707


 

0.30 %


 

Savings accounts and certificates of deposit

2,260,170


 

10,609


 

1.86 %


 

1,555,607


 

3,414


 

0.88 %


 

307,807


 

192


 

0.25 %


 

Interest-bearing deposits

4,453,074


 

15,184


 

1.35 %


 

4,019,317


 

6,078


 

0.61 %


 

2,529,172


 

1,899


 

0.30 %


 

Short-term borrowings

6,848


 

87


 

5.09 %


 

10,874


 

417


 

15.35 %


 

57,224


 

849


 

5.93 %


 

Advances from PPPLF

104,897


 

93


 

0.36 %


 

151,278


 

135


 

0.36 %


 

416,748


 

371


 

0.36 %


 

Retail notes, certificates and secured borrowings

104,010


 

3,685


 

14.17 %


 

144,613


 

5,091


 

14.08 %


 

344,087


 

12,172


 

14.15 %


 

Structured Program borrowings

13,859


 

225


 

6.50 %


 

18,439


 

360


 

7.81 %


 

100,178


 

2,120


 

8.46 %


 

Other long-term debt

15,300


 

270


 

7.04 %


 

15,357


 

161


 

4.20 %


 

15,606


 

161


 

4.13 %


 

Total interest-bearing liabilities 

4,697,988


 

19,544


 

1.65 %


 

4,359,878


 

12,242


 

1.12 %


 

3,463,015


 

17,572


 

2.03 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest bearing deposits

284,134


 
 
 
 
 

292,750


 
 
 
 
 

81,491


 
 
 
 
 

Other liabilities

250,086


 
 
 
 
 

261,796


 
 
 
 
 

285,292


 
 
 
 
 

Total liabilities 

$ 5,232,208


 
 
 
 
 

$ 4,914,424


 
 
 
 
 

$ 3,829,798


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total equity 

$ 1,111,117


 
 
 
 
 

$    952,922


 
 
 
 
 

$    786,273


 
 
 
 
 

Total liabilities and equity 

$ 6,343,325


 
 
 
 
 

$ 5,867,346


 
 
 
 
 

$ 4,616,071


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread 


 
 
 
 

7.99 %


 
 
 
 
 

8.21 %


 
 
 
 
 

5.95 %


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income and net interest margin 


 
 

$  123,676


 

8.32 %


 
 
 

$ 116,226


 

8.45 %


 
 
 

$  65,288


 

6.28 %


 

 
 

(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)


 

 
 

 

September 30, 
2022 


 

December 31, 
2021 


 

Assets 


 
 
 
 

Cash and due from banks

$            23,211


 

$         35,670


 

Interest-bearing deposits in banks

929,630


 

651,456


 

Total cash and cash equivalents

952,841


 

687,126


 

Restricted cash

66,285


 

76,460


 

Securities available for sale at fair value ($415,726 and $256,170 at amortized cost, 
respectively)

359,157


 

263,530


 

Loans held for sale (includes $90,058 and $142,370 at fair value, respectively)

90,058


 

391,248


 

Loans and leases held for investment

4,806,927


 

2,899,126


 

Allowance for loan and lease losses

(303,201)


 

(144,389)


 

Loans and leases held for investment, net

4,503,726


 

2,754,737


 

Retail and certificate loans held for investment at fair value

87,144


 

229,719


 

Other loans held for investment at fair value

15,057


 

21,240


 

Property, equipment and software, net

129,957


 

97,996


 

Goodwill

75,717


 

75,717


 

Other assets

495,132


 

302,546


 

Total assets 

$        6,775,074


 

$     4,900,319


 

Liabilities and Equity 


 
 
 
 

Deposits:


 
 
 
 

Interest-bearing

$        4,868,132


 

$     2,919,203


 

Noninterest-bearing

255,374


 

216,585


 

Total deposits

5,123,506


 

3,135,788


 

Short-term borrowings

4,803


 

27,780


 

Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

91,671


 

271,933


 

Retail notes, certificates and secured borrowings at fair value

87,144


 

229,719


 

Payable on Structured Program borrowings

11,185


 

65,451


 

Other long-term debt

15,300


 

15,455


 

Other liabilities

320,055


 

303,951


 

Total liabilities

5,653,664


 

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; 105,088,761 and 
101,043,924 shares issued and outstanding, respectively

1,051


 

1,010


 

Additional paid-in capital

1,611,627


 

1,559,616


 

Accumulated deficit

(451,336)


 

(717,430)


 

Treasury stock, at cost; 7,751 and 0 shares, respectively

(98)


 

—


 

Accumulated other comprehensive income (loss)

(39,834)


 

7,046


 

Total equity

1,121,410


 

850,242


 

Total liabilities and equity 

$        6,775,074


 

$     4,900,319


 

 

LENDINGCLUB CORPORATION 
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES 
(In thousands, except share and per share data)
(Unaudited)


 

 
 

As of and for the three months ended 


 

 
 

September 30, 
2022 


 

June 30, 
2022 


 

March 31, 

2022 


 

December 31, 

2021 


 

September 30, 
2021 


 

GAAP Net income

$            43,198


 

$     182,060


 

$       40,836


 

$            29,108


 

$            27,185


 

Income tax benefit from release of tax valuation allowance

5,015


 

135,300


 

—


 

—


 

—


 

Net income excluding income tax benefit

$            38,183


 

$       46,760


 

$       40,836


 

$            29,108


 

$            27,185


 

 
 
 
 
 
 
 
 
 
 
 
 

GAAP Diluted EPS – common stockholders

$                 0.41


 

$            1.73


 

$            0.39


 

$                 0.27


 

$                 0.26


 

 
 
 
 
 
 
 
 
 
 
 
 

(A)

Income tax benefit from release of tax valuation allowance

$              5,015


 

$     135,300


 
 
 
 
 
 
 

(B)

Weighted-average common shares – Diluted

105,853,938


 

105,042,626


 
 
 
 
 
 
 

(A/B)

Diluted EPS impact of income tax benefit

$                 0.05


 

$            1.29


 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

Diluted EPS excluding income tax benefit

$                 0.36


 

$            0.44


 

$            0.39


 

$                 0.27


 

$                 0.26


 

 

 

 
 

September 30, 
2022 


 

June 30, 
2022 


 

March 31, 

2022 


 

December 31, 

2021 


 

September 30, 
2021 


 

GAAP common equity

$       1,121,410


 

$  1,079,117


 

$     887,434


 

$          850,242


 

$          804,790


 

Less: Goodwill

(75,717)


 

(75,717)


 

(75,717)


 

(75,717)


 

(75,717)


 

Less: Intangible assets

(17,512)


 

(18,690)


 

(19,886)


 

(21,181)


 

(22,521)


 

 

Tangible common equity 

$       1,028,181


 

$     984,710


 

$     791,831


 

$          753,344


 

$          706,552


 

 
 
 
 
 
 
 
 
 
 
 
 

 

Book value per common share 


 
 
 
 
 
 
 
 

 

GAAP common equity

$       1,121,410


 

$  1,079,117


 

$     887,434


 

$          850,242


 

$          804,790


 

Common shares issued and outstanding

105,088,761


 

103,630,776


 

102,194,037


 

101,043,924


 

99,782,192


 

 

Book value per common share 

$              10.67


 

$          10.41


 

$            8.68


 

$                 8.41


 

$                 8.07


 

 
 
 
 
 
 
 
 
 
 
 
 

 

Tangible book value per common share 


 
 
 
 
 
 
 
 
 
 

Tangible common equity

$       1,028,181


 

$     984,710


 

$     791,831


 

$          753,344


 

$          706,552


 

Common shares issued and outstanding

105,088,761


 

103,630,776


 

102,194,037


 

101,043,924


 

99,782,192


 

 

Tangible book value per common share 

$                 9.78


 

$            9.50


 

$            7.75


 

$                 7.46


 

$                 7.08


 

 

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SOURCE LendingClub Corporation