LendingClub Reports Third Quarter 2024 Results
Originations and Revenue Growth Supported by Return of Bank Buyers
Total Assets Grew 25% Year to Date Driven by $1.3 Billion Purchase of LendingClub Loans
Acquired Tally's Technology in October to Accelerate Product Roadmap
SAN FRANCISCO, Oct. 23, 2024 /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, 2024.
"We had a standout quarter, with credit outperformance and the return of bank buyers driving improved loan sales pricing, our capital strategy delivering a 25% larger balance sheet year to date, and strong financial performance translating to a meaningful improvement in book value per common share over the past 12 months," said Scott Sanborn, LendingClub CEO. "Looking ahead, our acquisition of Tally's award-winning credit card debt monitoring and management technology will allow us to accelerate our product roadmap and further seize on the historically large $1.3 trillion credit card refinance opportunity."
Third Quarter 2024 Results
Balance Sheet:
-- Total assets of $11.0 billion compared to $9.6 billion in the prior
quarter, primarily due to growth in whole loans held on the balance
sheet and securities related to the structured certificates program:
-- Whole loans held on the balance sheet of $6.0 billion, compared to
$5.1 billion in the prior quarter, primarily reflecting the purchase
of a $1.3 billion LendingClub-issued loan portfolio.
-- Securities available for sale of $3.3 billion, compared to $2.8
billion in the prior quarter, primarily reflecting growth in
structured certificate securities.
-- Deposits of $9.5 billion compared to $8.1 billion in the prior quarter,
primarily due to an increase in consumer deposits and brokered
certificates of deposit to fund the loan portfolio purchase.
-- Launched new direct-to-consumer LevelUp Savings product and seeing
positive consumer response.
-- 88% of total deposits are FDIC-insured.
-- Strong liquidity profile with $3.6 billion in readily available
liquidity.
-- Strong capital position with a consolidated Tier 1 leverage ratio of
11.3% and consolidated Common Equity Tier 1 capital ratio of 15.9%.
-- Book value per common share increased to $11.95, compared to $11.52 in
the prior quarter.
-- Tangible book value per common share increased to $11.19, compared to
$10.75 in the prior quarter.
Financial Performance:
-- Loan originations grew to $1.9 billion, compared to $1.8 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 increased to $201.9 million, compared to $187.2
million in the prior quarter, driven by higher net interest income from
a larger balance sheet and improved marketplace loan sales pricing.
-- Provision for credit losses of $47.5 million, compared to $35.6 million
in the prior quarter, driven by higher held-for-investment whole loan
retention during the quarter.
-- Decline in net charge-offs in the held-for-investment at amortized cost
loan portfolio to $55.8 million, down from $66.8 million in the prior
quarter; net charge-off ratio of 5.4% compared to 6.2% in the prior
quarter.
-- Net income was $14.5 million, compared to $14.9 million in the prior
quarter, with diluted EPS of $0.13 in both periods.
-- Pre-Provision Net Revenue (PPNR) increased to $65.5 million, compared to
$55.0 million in the prior quarter, driven by a $14.7 million increase
in total net revenue partially offset by a $4.0 million increase in
non-interest expense.
Three Months Ended
($ in millions, except per share amounts) September 30, June 30, September 30,
2024 2024 2023
Total net revenue $201.9 $187.2 $200.8
Non-interest expense 136.3 132.3 128.0
Pre-provision net revenue (1) 65.5 55.0 72.8
Provision for credit losses 47.5 35.6 64.5
Income before income tax expense 18.0 19.4 8.3
Income tax expense (3.6) (4.5) (3.3)
Net income $14.5 $14.9 $5.0
Diluted EPS $0.13 $0.13 $0.05
(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
Fourth Quarter
2024
Loan originations
$1.8B to $1.9B
Pre-provision net revenue (PPNR)
$60M to $70M
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on 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 5 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.
Conference Call and Webcast Information
The LendingClub third quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, October 23, 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 834946, 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 October 30, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 106763. 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 13 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
September 30, June 30, March 31, December 31, September 30, Q/Q Y/Y
2024 2024 2023
2024 2023
Operating Highlights:
Non-interest income $61,640 $58,713 $57,800 $54,129 $63,844 5 % (3) %
Net interest income 140,241 128,528 122,888 131,477 137,005 9 % 2 %
Total net revenue 201,881 187,241 180,688 185,606 200,849 8 % 1 %
Non-interest expense 136,332 132,258 132,233 130,015 128,035 3 % 6 %
Pre-provision net revenue(1) 65,549 54,983 48,455 55,591 72,814 19 % (10) %
Provision for credit losses 47,541 35,561 31,927 41,907 64,479 34 % (26) %
Income before income tax expense 18,008 19,422 16,528 13,684 8,335 (7) % 116 %
Income tax expense (3,551) (4,519) (4,278) (3,529) (3,327) (21) % 7 %
Net income $14,457 $14,903 $12,250 $10,155 $5,008 (3) % 189 %
Basic EPS $0.13 $0.13 $0.11 $0.09 $0.05 - % 160 %
Diluted EPS $0.13 $0.13 $0.11 $0.09 $0.05 - % 160 %
LendingClub Corporation Performance Metrics:
Net interest margin 5.63 % 5.75 % 5.75 % 6.40 % 6.91 %
Efficiency ratio(2) 67.5 % 70.6 % 73.2 % 70.0 % 63.7 %
Return on average equity (ROE)(3) 4.4 % 4.7 % 3.9 % 3.3 % 1.7 %
Return on average total assets (ROA)(4) 0.6 % 0.6 % 0.5 % 0.5 % 0.2 %
Marketing expense as a % of loan originations 1.37 % 1.47 % 1.47 % 1.44 % 1.30 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio 15.9 % 17.9 % 17.6 % 17.9 % 16.9 %
Tier 1 leverage ratio 11.3 % 12.1 % 12.5 % 12.9 % 13.2 %
Book value per common share $11.95 $11.52 $11.40 $11.34 $11.02 4 % 8 %
Tangible book value per common share(1) $11.19 $10.75 $10.61 $10.54 $10.21 4 % 10 %
Loan Originations (in millions)(5):
Total loan originations $1,913 $1,813 $1,646 $1,630 $1,508 6 % 27 %
Marketplace loans $1,403 $1,477 $1,361 $1,432 $1,182 (5) % 19 %
Loan originations held for investment $510 $336 $285 $198 $326 52 % 56 %
Loan originations held for investment as a % of total loan originations 27 % 19 % 17 % 12 % 22 %
Servicing Portfolio AUM (in millions)(6):
Total servicing portfolio $12,674 $12,999 $13,437 $14,122 $14,818 (3) % (14) %
Loans serviced for others $7,028 $8,337 $8,671 $9,336 $9,601 (16) % (27) %
(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
September 30, June 30, March 31, December 31, September 30, Q/Q Y/Y
2024 2024 2023
2024 2023
Balance Sheet Data:
Securities available for sale $3,311,418 $2,814,383 $2,228,500 $1,620,262 $795,669 18 % 316 %
Loans held for sale at fair value $849,967 $791,059 $550,415 $407,773 $362,789 7 % 134 %
Loans and leases held for investment at amortized cost $4,108,329 $4,228,391 $4,505,816 $4,850,302 $5,237,277 (3) % (22) %
Gross allowance for loan and lease losses (1) $(274,538) $(285,368) $(311,794) $(355,773) $(388,156) (4) % (29) %
Recovery asset value (2) $53,974 $56,459 $52,644 $45,386 $37,661 (4) % 43 %
Allowance for loan and lease losses $(220,564) $(228,909) $(259,150) $(310,387) $(350,495) (4) % (37) %
Loans and leases held for investment at amortized cost, net $3,887,765 $3,999,482 $4,246,666 $4,539,915 $4,886,782 (3) % (20) %
Loans held for investment at fair value (3)(4) $1,287,495 $339,222 $427,396 $272,678 $344,417 280 % 274 %
Total loans and leases held for investment (3)(4) $5,175,260 $4,338,704 $4,674,062 $4,812,593 $5,231,199 19 % (1) %
Whole loans held on balance sheet (4)(5) $6,025,227 $5,129,763 $5,224,477 $5,220,366 $5,593,988 17 % 8 %
Total assets $11,037,507 $9,586,050 $9,244,828 $8,827,463 $8,472,351 15 % 30 %
Total deposits $9,459,608 $8,095,328 $7,521,655 $7,333,486 $7,000,263 17 % 35 %
Total liabilities $9,694,612 $8,298,105 $7,978,542 $7,575,641 $7,264,132 17 % 33 %
Total equity $1,342,895 $1,287,945 $1,266,286 $1,251,822 $1,208,219 4 % 11 %
(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)
The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.
(5)
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
September 30, June 30, March 31, December 31, September 30,
2024 2024 2024 2023 2023
Asset Quality Metrics (1):
Allowance for loan and lease losses to total loans 5.4 % 5.4 % 5.8 % 6.4 % 6.7 %
and leases held for investment at amortized cost
Allowance for loan and lease losses to commercial 3.1 % 2.7 % 1.9 % 1.8 % 2.0 %
loans and leases held for investment at amortized cost
Allowance for loan and lease losses to consumer 5.8 % 5.9 % 6.4 % 7.2 % 7.4 %
loans and leases held for investment at amortized cost
Gross allowance for loan and lease losses to consumer 7.3 % 7.5 % 7.8 % 8.3 % 8.2 %
loans and leases held for investment at amortized cost
Net charge-offs $55,805 $66,818 $80,483 $82,511 $68,795
Net charge-off ratio (2) 5.4 % 6.2 % 6.9 % 6.6 % 5.1 %
(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:
September 30, December 31,
2024 2023
Unsecured personal $3,068,078 $3,726,830
Residential mortgages 175,345 183,050
Secured consumer 239,206 250,039
Total consumer loans held for investment 3,482,629 4,159,919
Equipment finance (1) 74,674 110,992
Commercial real estate 371,796 380,322
Commercial and industrial 179,230 199,069
Total commercial loans and leases held for investment 625,700 690,383
Total loans and leases held for investment at amortized cost 4,108,329 4,850,302
Allowance for loan and lease losses (220,564) (310,387)
Loans and leases held for investment at amortized cost, net $3,887,765 $4,539,915
Loans held for investment at fair value (2)(3) 1,287,495 272,678
Total loans and leases held for investment (3) $5,175,260 $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.
(3)
The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.
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:
September 30, 2024 December 31, 2023
Gross allowance for loan and lease losses (1) $274,538 $355,773
Recovery asset value (2) (53,974) (45,386)
Allowance for loan and lease losses $220,564 $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
September 30, 2024
June 30, 2024
Consumer Commercial Total Consumer Commercial Total
Allowance for loan and lease losses, beginning of period $210,729 $18,180 $228,909 $246,280 $12,870 $259,150
Credit loss expense for loans and leases held for investment 45,813 1,647 47,460 30,760 5,817 36,577
Charge-offs (68,388) (721) (69,109) (77,494) (594) (78,088)
Recoveries 12,745 559 13,304 11,183 87 11,270
Allowance for loan and lease losses, end of period $200,899 $19,665 $220,564 $210,729 $18,180 $228,909
Three Months Ended
September 30, 2023
Consumer Commercial Total
Allowance for loan and lease losses, beginning of period $341,161 $14,002 $355,163
Credit loss expense for loans and leases held for investment 63,733 394 64,127
Charge-offs (73,644) (534) (74,178)
Recoveries 5,038 345 5,383
Allowance for loan and lease losses, end of period $336,288 $14,207 $350,495
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:
September 30, 2024 30-59 60-89 90 or More Total Days Guaranteed
Days Days Days Past Due Amount (1)
Unsecured personal $25,749 $20,156 $22,352 $68,257
$ -
Residential mortgages - 145 167 312
Secured consumer 2,283 675 242 3,200
Total consumer loans held for investment $28,032 $20,976 $22,761 $71,769
$ -
Equipment finance
$ -
$ - $4,850 $4,850
$ -
Commercial real estate 3,882 678 6,106 10,666 8,681
Commercial and industrial 417 8,207 7,232 15,856 12,347
Total commercial loans and leases held for investment $4,299 $8,885 $18,188 $31,372 $21,028
Total loans and leases held for investment at amortized cost $32,331 $29,861 $40,949 $103,141 $21,028
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 (%)
September 30, June 30, September 30, Q3 2024 Q3 2024
2024 2024 2023
vs vs
Q2 2024 Q3 2023
Non-interest income:
Origination fees $71,465 $77,131 $60,912 (7) % 17 %
Servicing fees 8,081 19,869 32,768 (59) % (75) %
Gain on sales of loans 12,433 10,748 8,572 16 % 45 %
Net fair value adjustments (33,595) (51,395) (41,366) (35) % (19) %
Marketplace revenue 58,384 56,353 60,886 4 % (4) %
Other non-interest income 3,256 2,360 2,958 38 % 10 %
Total non-interest income 61,640 58,713 63,844 5 % (3) %
Total interest income 240,377 219,634 207,412 9 % 16 %
Total interest expense 100,136 91,106 70,407 10 % 42 %
Net interest income 140,241 128,528 137,005 9 % 2 %
Total net revenue 201,881 187,241 200,849 8 % 1 %
Provision for credit losses 47,541 35,561 64,479 34 % (26) %
Non-interest expense:
Compensation and benefits 57,408 56,540 58,497 2 % (2) %
Marketing 26,186 26,665 19,555 (2) % 34 %
Equipment and software 12,789 12,360 12,631 3 % 1 %
Depreciation and amortization 13,341 13,072 11,250 2 % 19 %
Professional services 8,014 7,804 8,414 3 % (5) %
Occupancy 4,005 3,941 4,612 2 % (13) %
Other non-interest expense 14,589 11,876 13,076 23 % 12 %
Total non-interest expense 136,332 132,258 128,035 3 % 6 %
Income before income tax expense 18,008 19,422 8,335 (7) % 116 %
Income tax expense (3,551) (4,519) (3,327) (21) % 7 %
Net income $14,457 $14,903 $5,008 (3) % 189 %
Net income per share:
Basic EPS $0.13 $0.13 $0.05 - % 160 %
Diluted EPS $0.13 $0.13 $0.05 - % 160 %
Weighted-average common shares - Basic 112,042,202 111,395,025 109,071,180 1 % 3 %
Weighted-average common shares - Diluted 113,922,256 111,466,497 109,073,194 2 % 4 %
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
September 30, 2024 June 30, 2024 September 30, 2023
Average Interest Average Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate Expense Rate
Interest-earning assets (2)
Cash, cash equivalents, restricted cash and other $939,611 $12,442 5.30 % $976,330 $13,168 5.40 % $1,249,087 $16,798 5.38 %
Securities available for sale at fair value 3,047,305 52,476 6.89 % 2,406,767 42,879 7.13 % 601,512 9,467 6.30 %
Loans held for sale at fair value 899,434 30,326 13.49 % 838,143 26,721 12.75 % 286,111 9,582 13.40 %
Loans and leases held for investment:
Unsecured personal loans 3,045,150 103,291 13.57 % 3,243,161 108,425 13.37 % 4,257,360 142,118 13.35 %
Commercial and other consumer loans 1,057,688 15,497 5.86 % 1,097,846 16,394 5.97 % 1,147,130 16,842 5.87 %
Loans and leases held for investment at amortized cost 4,102,838 118,788 11.58 % 4,341,007 124,819 11.50 % 5,404,490 158,960 11.76 %
Loans held for investment at fair value (3)(4) 972,698 26,345 10.83 % 383,872 12,047 12.55 % 385,148 12,605 13.09 %
Total loans and leases held for investment (3)(4) 5,075,536 145,133 11.44 % 4,724,879 136,866 11.59 % 5,789,638 171,565 11.85 %
Total interest-earning assets 9,961,886 240,377 9.65 % 8,946,119 219,634 9.82 % 7,926,348 207,412 10.47 %
Cash and due from banks and restricted cash 41,147 55,906 69,442
Allowance for loan and lease losses (225,968) (245,478) (354,263)
Other non-interest earning assets 624,198 632,253 691,641
Total assets $10,401,263 $9,388,800 $8,333,168
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts $1,092,376 $10,146 3.70 % $1,097,696 $10,084 3.69 % $1,271,720 $9,541 2.98 %
Savings accounts and certificates of deposit 6,944,586 86,717 4.97 % 6,449,061 80,109 5.00 % 5,357,717 59,968 4.44 %
Interest-bearing deposits 8,036,962 96,863 4.79 % 7,546,757 90,193 4.81 % 6,629,437 69,509 4.16 %
Other interest-bearing liabilities (3) 486,736 3,273 2.69 % 56,628 913 6.45 % 35,878 898 10.03 %
Total interest-bearing liabilities 8,523,698 100,136 4.67 % 7,603,385 91,106 4.82 % 6,665,315 70,407 4.19 %
Non-interest bearing deposits 344,577 303,199 183,728
Other liabilities 225,467 215,608 271,118
Total liabilities $9,093,742 $8,122,192 $7,120,161
Total equity $1,307,521 $1,266,608 $1,213,007
Total liabilities and equity $10,401,263 $9,388,800 $8,333,168
Interest rate spread 4.98 % 5.00 % 6.28 %
Net interest income and net interest margin $140,241 5.63 % $128,528 5.75 % $137,005 6.91 %
(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.
(4)
The average balance for the third quarter of 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the quarter.
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
September 30, December 31,
2024 2023
Assets
Cash and due from banks $25,558 $14,993
Interest-bearing deposits in banks 991,372 1,237,511
Total cash and cash equivalents 1,016,930 1,252,504
Restricted cash 33,347 41,644
Securities available for sale at fair value ($3,319,988 and $1,663,990 at amortized cost, respectively) 3,311,418 1,620,262
Loans held for sale at fair value 849,967 407,773
Loans and leases held for investment 4,108,329 4,850,302
Allowance for loan and lease losses (220,564) (310,387)
Loans and leases held for investment, net 3,887,765 4,539,915
Loans held for investment at fair value (1)(2) 1,287,495 272,678
Property, equipment and software, net 167,809 161,517
Goodwill 75,717 75,717
Other assets 407,059 455,453
Total assets $11,037,507 $8,827,463
Liabilities and Equity
Deposits:
Interest-bearing $9,099,092 $7,001,680
Noninterest-bearing 360,516 331,806
Total deposits 9,459,608 7,333,486
Borrowings (1) 2,683 19,354
Other liabilities 232,321 222,801
Total liabilities 9,694,612 7,575,641
Equity
Common stock, $0.01 par value; 180,000,000 shares authorized; 112,401,990 and 110,410,602 shares issued and outstanding, respectively 1,124 1,104
Additional paid-in capital 1,692,538 1,669,828
Accumulated deficit (347,196) (388,806)
Accumulated other comprehensive loss (3,571) (30,304)
Total equity 1,342,895 1,251,822
Total liabilities and equity $11,037,507 $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.
(2)
The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
Pre-Provision Net Revenue
---
For the three months ended
September 30, June 30, March 31, December 31, September 30,
2024 2023
2024 2024 2023
GAAP Net income $14,457 $14,903 $12,250 $10,155 $5,008
Less: Provision for credit losses (47,541) (35,561) (31,927) (41,907) (64,479)
Less: Income tax expense (3,551) (4,519) (4,278) (3,529) (3,327)
Pre-provision net revenue $65,549 $54,983 $48,455 $55,591 $72,814
For the three months ended
September 30, June 30, March 31, December 31, September 30,
2024 2023
2024 2024 2023
Non-interest income $61,640 $58,713 $57,800 $54,129 $63,844
Net interest income 140,241 128,528 122,888 131,477 137,005
Total net revenue 201,881 187,241 180,688 185,606 200,849
Non-interest expense (136,332) (132,258) (132,233) (130,015) (128,035)
Pre-provision net revenue 65,549 54,983 48,455 55,591 72,814
Provision for credit losses (47,541) (35,561) (31,927) (41,907) (64,479)
Income before income tax expense 18,008 19,422 16,528 13,684 8,335
Income tax expense (3,551) (4,519) (4,278) (3,529) (3,327)
GAAP Net income $14,457 $14,903 $12,250 $10,155 $5,008
Tangible Book Value Per Common Share
---
September 30, June 30, March 31, December 31, September 30,
2024 2023
2024 2024 2023
GAAP common equity $1,342,895 $1,287,945 $1,266,286 $1,251,822 $1,208,219
Less: Goodwill (75,717) (75,717) (75,717) (75,717) (75,717)
Less: Intangible assets (9,439) (10,293) (11,165) (12,135) (13,151)
Tangible common equity $1,257,739 $1,201,935 $1,179,404 $1,163,970 $1,119,351
Book value per common share
---
GAAP common equity $1,342,895 $1,287,945 $1,266,286 $1,251,822 $1,208,219
Common shares issued and outstanding 112,401,990 111,812,215 111,120,415 110,410,602 109,648,769
Book value per common share $11.95 $11.52 $11.40 $11.34 $11.02
Tangible book value per common share
---
Tangible common equity $1,257,739 $1,201,935 $1,179,404 $1,163,970 $1,119,351
Common shares issued and outstanding 112,401,990 111,812,215 111,120,415 110,410,602 109,648,769
Tangible book value per common share $11.19 $10.75 $10.61 $10.54 $10.21
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SOURCE LendingClub Corporation
