LendingClub Reports Second Quarter 2024 Results
10% Sequential Originations Growth
Strong Balance Sheet Growth with Stable Net Interest Margin Drives Increase in Revenue
SAN FRANCISCO, July 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 second quarter ended June 30, 2024.
"Our second quarter results mark an inflection point, with our business calibrated to the current rate environment and positioned to accelerate as conditions improve," said Scott Sanborn, LendingClub CEO. "Thanks to our unique product innovations, we were able to capture strong borrower and marketplace investor demand, delivering growth in originations, revenue, and profitability. I look forward to building on our momentum in the quarters ahead."
Second Quarter 2024 Results
Balance Sheet:
-- Total assets of $9.6 billion compared to $9.2 billion in the prior
quarter, primarily due to growth in securities related to the structured
certificates program and growth in the extended seasoning portfolio.
-- Securities available for sale of $2.8 billion, compared to $2.2 billion
in the prior quarter, primarily reflecting growth in the structured
certificates program.
-- Whole loans held on the balance sheet of $5.1 billion, which consists of
loans and leases held for investment and loans held for sale, were
roughly flat compared to the prior quarter.
-- Deposits of $8.1 billion compared to $7.5 billion in the prior quarter,
primarily due to an increase in high-yield savings and certificates of
deposit.
-- 87% of total deposits are FDIC-insured.
-- Strong liquidity profile with $3.0 billion in readily available
liquidity.
-- Strong capital position with a consolidated Tier 1 leverage ratio of
12.1% and consolidated Common Equity Tier 1 capital ratio of 17.9%.
-- Book value per common share increased to $11.52, compared to $11.40 in
the prior quarter.
-- Tangible book value per common share increased to $10.75, compared to
$10.61 in the prior quarter.
Financial Performance:
-- Loan originations of $1.8 billion, compared to $1.6 billion in the prior
quarter, driven by the successful execution of new consumer loan
initiatives combined with marketplace investor demand for structured
certificates and higher whole loan retention.
-- Total net revenue of $187.2 million, compared to $180.7 million in the
prior quarter, driven by:
-- Marketplace revenue of $56.4 million, compared to $55.9 million in
the prior quarter, primarily reflecting higher marketplace loan
originations and improved loan sale pricing partially offset by the
expected fair value adjustments on the maturing Held for Sale
portfolio.
-- Net interest income of $128.5 million, compared to $122.9 million in
the prior quarter, primarily reflecting growth in total
interest-earning assets at a stable net interest margin of 5.75%.
-- Provision for credit losses of $35.6 million, compared to $31.9 million
in the prior quarter.
-- Net income increased to $14.9 million, with diluted EPS of $0.13,
compared to $12.3 million, with diluted EPS of $0.11, in the prior
quarter. The increase was primarily driven by higher net interest income
from growth in the balance sheet.
-- Pre-Provision Net Revenue (PPNR) of $55.0 million, compared to $48.5
million in the prior quarter, primarily driven by higher total net
revenue while maintaining stable expenses.
Three Months Ended
($ in millions, except per share amounts) June 30, March 31, June 30,
2024 2024 2023
Total net revenue $187.2 $180.7 $232.5
Non-interest expense 132.3 132.2 151.1
Pre-provision net revenue (1) 55.0 48.5 81.4
Provision for credit losses 35.6 31.9 66.6
Income before income tax expense 19.4 16.5 14.8
Income tax expense (4.5) (4.3) (4.7)
Net income $14.9 $12.3 $10.1
Diluted EPS $0.13 $0.11 $0.09
(1) See page 3 of this release for additional information on our use of non-GAAP financial measures.
For a calculation of Pre-Provision Net Revenue 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
Third Quarter
2024
Loan originations
$1.8B to $1.9B
Pre-provision net revenue (PPNR)
$40M to $50M
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 hundreds of billions of 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 4.9 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 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, July 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 895739, 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 6, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 305717. 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 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 is an important measure because it reflects 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.
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 14 of this release.
We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense with reasonable certainty without unreasonable effort.
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
June 30, March 31, December 31, September 30, June 30, Q/Q Y/Y
2024 2024 2023
2023 2023
Operating Highlights:
Non-interest income $58,713 $57,800 $54,129 $63,844 $85,818 2 % (32) %
Net interest income 128,528 122,888 131,477 137,005 146,652 5 % (12) %
Total net revenue 187,241 180,688 185,606 200,849 232,470 4 % (19) %
Non-interest expense 132,258 132,233 130,015 128,035 151,079 0 % (12) %
Pre-provision net revenue(1) 54,983 48,455 55,591 72,814 81,391 13 % (32) %
Provision for credit losses 35,561 31,927 41,907 64,479 66,595 11 % (47) %
Income before income tax expense 19,422 16,528 13,684 8,335 14,796 18 % 31 %
Income tax expense (4,519) (4,278) (3,529) (3,327) (4,686) 6 % (4) %
Net income $14,903 $12,250 $10,155 $5,008 $10,110 22 % 47 %
Basic EPS $0.13 $0.11 $0.09 $0.05 $0.09 18 % 44 %
Diluted EPS $0.13 $0.11 $0.09 $0.05 $0.09 18 % 44 %
LendingClub Corporation Performance Metrics:
Net interest margin 5.75 % 5.75 % 6.40 % 6.91 % 7.09 %
Efficiency ratio(2) 70.6 % 73.2 % 70.0 % 63.7 % 65.0 %
Return on average equity (ROE)(3) 4.7 % 3.9 % 3.3 % 1.7 % 3.4 %
Return on average total assets (ROA)(4) 0.6 % 0.5 % 0.5 % 0.2 % 0.5 %
Marketing expense as a % of loan originations 1.47 % 1.47 % 1.44 % 1.30 % 1.19 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio 17.9 % 17.6 % 17.9 % 16.9 % 16.1 %
Tier 1 leverage ratio 12.1 % 12.5 % 12.9 % 13.2 % 12.4 %
Book value per common share $11.52 $11.40 $11.34 $11.02 $11.09 1 % 4 %
Tangible book value per common share(1) $10.75 $10.61 $10.54 $10.21 $10.26 1 % 5 %
Loan Originations (in millions)(5):
Total loan originations $1,813 $1,646 $1,630 $1,508 $2,011 10 % (10) %
Marketplace loans $1,477 $1,361 $1,432 $1,182 $1,353 9 % 9 %
Loan originations held for investment $336 $285 $198 $326 $657 18 % (49) %
Loan originations held for investment as a % of total loan originations 19 % 17 % 12 % 22 % 33 %
Servicing Portfolio AUM (in millions)(6):
Total servicing portfolio $12,999 $13,437 $14,122 $14,818 $15,669 (3) % (17) %
Loans serviced for others $8,337 $8,671 $9,336 $9,601 $10,204 (4) % (18) %
(1)
Represents a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures."
(2)
Calculated as the ratio of non-interest expense to total net revenue.
(3)
Calculated as annualized net income divided by average equity for the period presented.
(4)
Calculated as annualized net income divided by average total assets for the period presented.
(5)
Includes unsecured personal loans and auto loans only.
(6) 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
OPERATING HIGHLIGHTS
(Continued)
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended % Change
June 30, March 31, December 31, September 30, June 30, Q/Q Y/Y
2024 2024 2023
2023 2023
Balance Sheet Data:
Securities available for sale $2,814,383 $2,228,500 $1,620,262 $795,669 $523,579 26 % 438 %
Loans held for sale at fair value $791,059 $550,415 $407,773 $362,789 $250,361 44 % 216 %
Loans and leases held for investment at amortized cost $4,228,391 $4,505,816 $4,850,302 $5,237,277 $5,533,349 (6) % (24) %
Gross allowance for loan and lease losses (1) $(285,368) $(311,794) $(355,773) $(388,156) $(383,960) (8) % (26) %
Recovery asset value (2) $56,459 $52,644 $45,386 $37,661 $28,797 7 % 96 %
Allowance for loan and lease losses $(228,909) $(259,150) $(310,387) $(350,495) $(355,163) (12) % (36) %
Loans and leases held for investment at amortized cost, net $3,999,482 $4,246,666 $4,539,915 $4,886,782 $5,178,186 (6) % (23) %
Loans held for investment at fair value (3) $339,222 $427,396 $272,678 $344,417 $430,956 (21) % (21) %
Total loans and leases held for investment (3) $4,338,704 $4,674,062 $4,812,593 $5,231,199 $5,609,142 (7) % (23) %
Whole loans held on balance sheet (4) $5,129,763 $5,224,477 $5,220,366 $5,593,988 $5,859,503 (2) % (12) %
Total assets $9,586,050 $9,244,828 $8,827,463 $8,472,351 $8,342,506 4 % 15 %
Total deposits $8,095,328 $7,521,655 $7,333,486 $7,000,263 $6,843,535 8 % 18 %
Total liabilities $8,298,105 $7,978,542 $7,575,641 $7,264,132 $7,136,983 4 % 16 %
Total equity $1,287,945 $1,266,286 $1,251,822 $1,208,219 $1,205,523 2 % 7 %
(1)
Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2)
Represents the negative allowance for expected recoveries of amounts previously charged-off.
(3) Beginning in the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value." Prior period amounts have been
reclassified to conform to the current period presentation.
(4)
Includes loans held for sale at fair value, loans and leases held for investment at amortized cost, net of allowance for loan and lease losses, and loans held for investment at fair value.
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
June 30, March 31, December 31, September 30, June 30,
2024 2024 2023 2023 2023
Asset Quality Metrics (1):
Allowance for loan and lease losses to total loans and leases held 5.4 % 5.8 % 6.4 % 6.7 % 6.4 %
for investment at amortized cost
Allowance for loan and lease losses to commercial loans and leases 2.7 % 1.9 % 1.8 % 2.0 % 1.9 %
held for investment at amortized cost
Allowance for loan and lease losses to consumer loans and leases 5.9 % 6.4 % 7.2 % 7.4 % 7.1 %
held for investment at amortized cost
Gross allowance for loan and lease losses to consumer loans and 7.5 % 7.8 % 8.3 % 8.2 % 7.7 %
leases held for investment at amortized cost
Net charge-offs $66,818 $80,483 $82,511 $68,795 $59,884
Net charge-off ratio (2) 6.2 % 6.9 % 6.6 % 5.1 % 4.4 %
(1) Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held
for investment at amortized cost.
(2) Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for
investment during the period.
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:
June 30, December 31,
2024 2023
Unsecured personal $3,144,504 $3,726,830
Residential mortgages 178,290 183,050
Secured consumer 244,288 250,039
Total consumer loans held for investment 3,567,082 4,159,919
Equipment finance (1) 83,770 110,992
Commercial real estate 381,873 380,322
Commercial and industrial 195,666 199,069
Total commercial loans and leases held for investment 661,309 690,383
Total loans and leases held for investment at amortized cost 4,228,391 4,850,302
Allowance for loan and lease losses (228,909) (310,387)
Loans and leases held for investment at amortized cost, net $3,999,482 $4,539,915
Loans held for investment at fair value (2) 339,222 272,678
Total loans and leases held for investment $4,338,704 $4,812,593
(1)
Comprised of sales-type leases for equipment.
(2) Beginning in the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value." Prior period amount has been
reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
ALLOWANCE FOR LOAN AND LEASE LOSSES
(In thousands)
(Unaudited)
The following table presents the components of the allowance for loan and lease losses on loans and leases held for investment at amortized cost:
June 30, 2024 December 31, 2023
Gross allowance for loan and lease losses (1) $285,368 $355,773
Recovery asset value (2) (56,459) (45,386)
Allowance for loan and lease losses $228,909 $310,387
(1) Represents the allowance for future estimated net charge-offs on existing
portfolio balances.
(2) Represents the negative allowance for expected recoveries of amounts
previously charged-off.
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
June 30, 2024
March 31, 2024
Consumer Commercial Total Consumer Commercial Total
Allowance for loan and lease losses, beginning of period $246,280 $12,870 $259,150 $298,061 $12,326 $310,387
Credit loss expense for loans and leases held for investment 30,760 5,817 36,577 27,686 1,560 29,246
Charge-offs (77,494) (594) (78,088) (89,110) (1,232) (90,342)
Recoveries 11,183 87 11,270 9,643 216 9,859
Allowance for loan and lease losses, end of period $210,729 $18,180 $228,909 $246,280 $12,870 $259,150
Three Months Ended
June 30, 2023
Consumer Commercial Total
Allowance for loan and lease losses, beginning of period $333,546 $15,311 $348,857
Credit loss expense (benefit) for loans and leases held for investment 66,874 (684) 66,190
Charge-offs (63,345) (924) (64,269)
Recoveries 4,086 299 4,385
Allowance for loan and lease losses, end of period $341,161 $14,002 $355,163
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:
June 30, 2024 30-59 60-89 90 or More Total Days Guaranteed
Days Days Days Past Due Amount (1)
Unsecured personal $24,837 $22,869 $23,825 $71,531
$ -
Residential mortgages - 147 147
Secured consumer 1,825 622 258 2,705
Total consumer loans held for investment $26,662 $23,638 $24,083 $74,383
$ -
Equipment finance $18
$ - $8 $26
$ -
Commercial real estate 7,422 384 8,569 16,375 10,894
Commercial and industrial 8,715 774 5,869 15,358 12,736
Total commercial loans and leases held for investment $16,155 $1,158 $14,446 $31,759 $23,630
Total loans and leases held for investment at amortized cost $42,817 $24,796 $38,529 $106,142 $23,630
December 31, 2023 30-59 60-89 90 or More Total Days Guaranteed
Days Days Days Past Due Amount (1)
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 4,047
Commercial and industrial 12,261 1,632 1,515 15,408 11,260
Total commercial loans and leases held for investment $13,526 $5,198 $3,133 $21,857 $15,307
Total loans and leases held for investment at amortized cost $50,069 $35,389 $33,482 $118,940 $15,307
(1) Represents loan balances guaranteed by the Small Business Association.
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Change (%)
June 30, March 31, June 30, Q2 2024 Q2 2024
2024 2024 2023
vs vs
Q1 2024 Q2 2023
Non-interest income:
Origination fees $77,131 $70,079 $70,989 10 % 9 %
Servicing fees 19,869 19,592 22,015 1 % (10) %
Gain on sales of loans 10,748 10,909 13,221 (1) % (19) %
Net fair value adjustments (51,395) (44,689) (23,442) 15 % 119 %
Marketplace revenue 56,353 55,891 82,783 1 % (32) %
Other non-interest income 2,360 1,909 3,035 24 % (22) %
Total non-interest income 58,713 57,800 85,818 2 % (32) %
Total interest income 219,634 207,351 214,486 6 % 2 %
Total interest expense 91,106 84,463 67,834 8 % 34 %
Net interest income 128,528 122,888 146,652 5 % (12) %
Total net revenue 187,241 180,688 232,470 4 % (19) %
Provision for credit losses 35,561 31,927 66,595 11 % (47) %
Non-interest expense:
Compensation and benefits 56,540 59,554 71,553 (5) % (21) %
Marketing 26,665 24,136 23,940 10 % 11 %
Equipment and software 12,360 12,684 13,968 (3) % (12) %
Depreciation and amortization 13,072 12,673 11,638 3 % 12 %
Professional services 7,804 7,091 9,974 10 % (22) %
Occupancy 3,941 3,861 4,684 2 % (16) %
Other non-interest expense 11,876 12,234 15,322 (3) % (22) %
Total non-interest expense 132,258 132,233 151,079 - % (12) %
Income before income tax expense 19,422 16,528 14,796 18 % 31 %
Income tax expense (4,519) (4,278) (4,686) 6 % (4) %
Net income $14,903 $12,250 $10,110 22 % 47 %
Net income per share:
Basic EPS $0.13 $0.11 $0.09 18 % 44 %
Diluted EPS $0.13 $0.11 $0.09 18 % 44 %
Weighted-average common shares - Basic 111,395,025 110,685,796 107,892,590 1 % 3 %
Weighted-average common shares - Diluted 111,466,497 110,687,380 107,895,072 1 % 3 %
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1)
Three Months Ended
Three Months Ended
Three Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
Average Interest Average Average Interest Average Average Interest Average
Income/ Yield/ Income/ Yield/ Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
Interest-earning assets (2)
Cash, cash equivalents, restricted cash and other $976,330 $13,168 5.40 % $1,217,395 $16,503 5.42 % $1,512,700 $19,134 5.06 %
Securities available for sale at fair value 2,406,767 42,879 7.13 % 1,972,561 35,347 7.17 % 437,473 5,948 5.44 %
Loans held for sale at fair value 838,143 26,721 12.75 % 467,275 14,699 12.58 % 106,865 4,433 16.59 %
Loans and leases held for investment:
Unsecured personal loans 3,243,161 108,425 13.37 % 3,518,101 116,055 13.20 % 4,360,506 145,262 13.33 %
Commercial and other consumer loans 1,097,846 16,394 5.97 % 1,115,931 16,338 5.86 % 1,156,751 16,823 5.82 %
Loans and leases held for investment at amortized cost 4,341,007 124,819 11.50 % 4,634,032 132,393 11.43 % 5,517,257 162,085 11.75 %
Loans held for investment at fair value (3) 383,872 12,047 12.55 % 256,335 8,409 13.12 % 703,729 22,886 13.01 %
Total loans and leases held for investment (3) 4,724,879 136,866 11.59 % 4,890,367 140,802 11.52 % 6,220,986 184,971 11.89 %
Total interest-earning assets 8,946,119 219,634 9.82 % 8,547,598 207,351 9.70 % 8,278,024 214,486 10.36 %
Cash and due from banks and restricted cash 55,906 58,440 78,221
Allowance for loan and lease losses (245,478) (291,168) (354,348)
Other non-interest earning assets 632,253 631,468 686,956
Total assets $9,388,800 $8,946,338 $8,688,853
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts $1,097,696 $10,084 3.69 % $1,054,614 $9,410 3.59 % $1,397,302 $7,760 2.23 %
Savings accounts and certificates of deposit 6,449,061 80,109 5.00 % 6,069,942 74,553 4.94 % 5,546,862 58,761 4.25 %
Interest-bearing deposits 7,546,757 90,193 4.81 % 7,124,556 83,963 4.74 % 6,944,164 66,521 3.84 %
Other interest-bearing liabilities (3) 56,628 913 6.45 % 26,571 500 7.53 % 64,169 1,313 8.18 %
Total interest-bearing liabilities 7,603,385 91,106 4.82 % 7,151,127 84,463 4.75 % 7,008,333 67,834 3.88 %
Non-interest bearing deposits 303,199 317,430 205,750
Other liabilities 215,608 220,544 272,142
Total liabilities $8,122,192 $7,689,101 $7,486,225
Total equity $1,266,608 $1,257,237 $1,202,628
Total liabilities and equity $9,388,800 $8,946,338 $8,688,853
Interest rate spread 5.00 % 4.95 % 6.48 %
Net interest income and net interest margin $128,528 5.75 % $122,888 5.75 % $146,652 7.09 %
(1)
Consolidated presentation reflects intercompany eliminations.
(2)
Nonaccrual loans and any related income are included in their respective loan categories.
(3) Beginning in the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value" and "Retail notes and certificates
at fair value" were combined within "Other interest-bearing liabilities." Prior period amounts have been reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
June 30, December 31,
2024 2023
Assets
Cash and due from banks $19,099 $14,993
Interest-bearing deposits in banks 919,020 1,237,511
Total cash and cash equivalents 938,119 1,252,504
Restricted cash 31,332 41,644
Securities available for sale at fair value ($2,869,880 and $1,663,990 at amortized cost, respectively) 2,814,383 1,620,262
Loans held for sale at fair value 791,059 407,773
Loans and leases held for investment 4,228,391 4,850,302
Allowance for loan and lease losses (228,909) (310,387)
Loans and leases held for investment, net 3,999,482 4,539,915
Loans held for investment at fair value (1) 339,222 272,678
Property, equipment and software, net 166,150 161,517
Goodwill 75,717 75,717
Other assets 430,586 455,453
Total assets $9,586,050 $8,827,463
Liabilities and Equity
Deposits:
Interest-bearing $7,759,632 $7,001,680
Noninterest-bearing 335,696 331,806
Total deposits 8,095,328 7,333,486
Borrowings (1) 5,474 19,354
Other liabilities 197,303 222,801
Total liabilities 8,298,105 7,575,641
Equity
Common stock, $0.01 par value; 180,000,000 shares authorized; 111,812,215 and 110,410,602 shares issued and outstanding, respectively 1,118 1,104
Additional paid-in capital 1,685,865 1,669,828
Accumulated deficit (361,653) (388,806)
Accumulated other comprehensive loss (37,385) (30,304)
Total equity 1,287,945 1,251,822
Total liabilities and equity $9,586,050 $8,827,463
(1) Beginning in the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value" and "Retail notes and certificates
at fair value" were combined within "Borrowings." Prior period amounts have been reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
Pre-Provision Net Revenue
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For the three months ended
June 30, March 31, December 31, September 30, June 30,
2024 2023
2024 2023 2023
GAAP Net income $14,903 $12,250 $10,155 $5,008 $10,110
Less: Provision for credit losses (35,561) (31,927) (41,907) (64,479) (66,595)
Less: Income tax expense (4,519) (4,278) (3,529) (3,327) (4,686)
Pre-provision net revenue $54,983 $48,455 $55,591 $72,814 $81,391
For the three months ended
June 30, March 31, December 31, September 30, June 30,
2024 2023
2024 2023 2023
Non-interest income $58,713 $57,800 $54,129 $63,844 $85,818
Net interest income 128,528 122,888 131,477 137,005 146,652
Total net revenue 187,241 180,688 185,606 200,849 232,470
Non-interest expense (132,258) (132,233) (130,015) (128,035) (151,079)
Pre-provision net revenue 54,983 48,455 55,591 72,814 81,391
Provision for credit losses (35,561) (31,927) (41,907) (64,479) (66,595)
Income before income tax expense 19,422 16,528 13,684 8,335 14,796
Income tax expense (4,519) (4,278) (3,529) (3,327) (4,686)
GAAP Net income $14,903 $12,250 $10,155 $5,008 $10,110
Tangible Book Value Per Common Share
---
June 30, March 31, December 31, September 30, June 30,
2024 2023
2024 2023 2023
GAAP common equity $1,287,945 $1,266,286 $1,251,822 $1,208,219 $1,205,523
Less: Goodwill (75,717) (75,717) (75,717) (75,717) (75,717)
Less: Intangible assets (10,293) (11,165) (12,135) (13,151) (14,167)
Tangible common equity $1,201,935 $1,179,404 $1,163,970 $1,119,351 $1,115,639
Book value per common share
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GAAP common equity $1,287,945 $1,266,286 $1,251,822 $1,208,219 $1,205,523
Common shares issued and outstanding 111,812,215 111,120,415 110,410,602 109,648,769 108,694,120
Book value per common share $11.52 $11.40 $11.34 $11.02 $11.09
Tangible book value per common share
---
Tangible common equity $1,201,935 $1,179,404 $1,163,970 $1,119,351 $1,115,639
Common shares issued and outstanding 111,812,215 111,120,415 110,410,602 109,648,769 108,694,120
Tangible book value per common share $10.75 $10.61 $10.54 $10.21 $10.26
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SOURCE LendingClub Corporation
