LendingClub Reports Fourth Quarter and Full Year 2024 Results
Grew Originations +13%, Revenue +17%, and Total Assets +20% in Fourth Quarter Compared to Prior Year
Executed $400 Million Loan Sale out of the Held-for-Sale Portfolio to a New Bank Buyer
SAN FRANCISCO, Jan. 28, 2025 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2024.
"We executed well in 2024, exiting the year with growth in originations, continued credit outperformance, successful new products and experiences, and more than five million members," said Scott Sanborn, LendingClub CEO. "From this strong foundation, we are well-positioned to accelerate as we move through 2025 and further grow originations, revenue, and return on equity while continuing to innovate for our members."
Fourth Quarter 2024 Results
Balance Sheet:
-- Total assets of $10.6 billion increased 20% compared to $8.8 billion in
the prior year, driven primarily by the success of the Structured
Certificates program as well as the purchase of a $1.3 billion
LendingClub-issued loan portfolio in the third quarter of 2024.
-- Deposits of $9.1 billion increased 24% compared to $7.3 billion in the
prior year, driven by the continued success of our savings and CD
offerings.
-- LevelUp Savings, launched in the third quarter of 2024, reached
balances of nearly $1.2 billion at year end.
-- 87% of total deposits are FDIC-insured.
-- Robust available liquidity of $3.3 billion.
-- Strong capital position with a consolidated Tier 1 leverage ratio of
11.0% and a CET1 capital ratio of 17.3%.
-- Book value per common share was $11.83, compared to $11.34 in the prior
year.
-- Tangible book value per common share was $11.09, compared to $10.54 in
the prior year.
Financial Performance:
-- Loan originations increased 13% to $1.85 billion, compared to $1.63
billion in the prior year, driven by the successful execution of new
consumer loan initiatives combined with strong marketplace investor
demand.
-- Total net revenue increased 17% to $217.2 million, compared to $185.6
million in the prior year, driven by improved marketplace loan sales
pricing and higher net interest income on a larger balance sheet.
-- Provision for credit losses of $63.2 million, compared to $41.9 million
in the prior year, primarily driven by higher held-for-investment whole
loan retention.
-- Improved net charge-offs in the held-for-investment at amortized cost
loan portfolio to $46.0 million, compared to $82.5 million in the prior
year.
-- Net charge-off ratio of 4.5% compared to 6.6% in the prior year.
-- Net income of $9.7 million, compared to $10.2 million in the prior year.
-- Net income for the fourth quarter of 2024 includes a one-time,
post-tax $3.2 million non-cash impairment expense, as a result of
the Tally acquisition, for internally-developed software.
-- Return on Equity (ROE) of 2.9%, with a Return on Tangible Common Equity
(ROTCE) of 3.1%, compared to an ROE of 3.3% in the prior year, with an
ROTCE of 3.6%.
-- Pre-Provision Net Revenue (PPNR) increased 34% to $74.3 million,
compared to $55.6 million in the prior year.
Three Months Ended Year Ended
($ in millions, except per share amounts) December 31, September 30, December 31, December 31, December 31,
2024 2024 2023 2024 2023
Total net revenue $217.2 $201.9 $185.6 $787.0 $864.6
Non-interest expense 142.9 136.3 130.0 543.7 566.4
Pre-provision net revenue (1) 74.3 65.5 55.6 243.3 298.2
Provision for credit losses 63.2 47.5 41.9 178.3 243.6
Income before income tax expense 11.1 18.0 13.7 65.1 54.6
Income tax expense (1.4) (3.6) (3.5) (13.7) (15.7)
Net income $9.7 $14.5 $10.2 $51.3 $38.9
Diluted EPS $0.08 $0.13 $0.09 $0.45 $0.36
(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, Tangible Book Value Per Common Share, and Return on Tangible Common Equity, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.
Financial Outlook
First Quarter 2025
Loan originations
$1.8B to $1.9B
Pre-provision net revenue (PPNR)
$60M to $70M
Fourth Quarter
2025
Loan originations
>$2.3B
Return on tangible common equity (ROTCE) >8%
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 $95 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 fourth 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, January 28, 2025. 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 507312, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until February 4, 2025, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 167509. LendingClub has used, and intends to use, its investor relations website, 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 (PPNR), Tangible Book Value (TBV) Per Common Share, and Return on Tangible Common Equity (ROTCE). 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 PPNR is an important measure because it reflects the financial performance of our business operations. PPNR is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income.
We believe 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 tangible common equity (common equity reduced by goodwill and customer relationship intangible assets), divided by the ending number of common shares issued and outstanding.
We believe ROTCE is an important measure because it reflects the company's ability to generate income from its core assets. ROTCE is a non-GAAP financial measure calculated by dividing annualized net income by the average tangible common equity for the applicable period.
For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on pages 14 and 15 of this release.
We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue and Return on Tangible Common Equity to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense and goodwill, respectively, 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
December 31, September 30, June 30, March 31, December 31, Q/Q Y/Y
2024 2024 2023
2024 2024
Operating Highlights:
Non-interest income $74,817 $61,640 $58,713 $57,800 $54,129 21 % 38 %
Net interest income 142,384 140,241 128,528 122,888 131,477 2 % 8 %
Total net revenue 217,201 201,881 187,241 180,688 185,606 8 % 17 %
Non-interest expense 142,855 136,332 132,258 132,233 130,015 5 % 10 %
Pre-provision net revenue(1) 74,346 65,549 54,983 48,455 55,591 13 % 34 %
Provision for credit losses 63,238 47,541 35,561 31,927 41,907 33 % 51 %
Income before income tax expense 11,108 18,008 19,422 16,528 13,684 (38) % (19) %
Income tax expense (1,388) (3,551) (4,519) (4,278) (3,529) (61) % (61) %
Net income $9,720 $14,457 $14,903 $12,250 $10,155 (33) % (4) %
Basic EPS $0.09 $0.13 $0.13 $0.11 $0.09 (31) % - %
Diluted EPS $0.08 $0.13 $0.13 $0.11 $0.09 (38) % (11) %
LendingClub Corporation Performance Metrics:
Net interest margin 5.42 % 5.63 % 5.75 % 5.75 % 6.40 %
Efficiency ratio(2) 65.8 % 67.5 % 70.6 % 73.2 % 70.0 %
Return on average equity (ROE)(3) 2.9 % 4.4 % 4.7 % 3.9 % 3.3 %
Return on tangible common equity (ROTCE)(1)(4) 3.1 % 4.7 % 5.1 % 4.2 % 3.6 %
Return on average total assets (ROA)(5) 0.4 % 0.6 % 0.6 % 0.5 % 0.5 %
Marketing expense as a % of loan originations 1.27 % 1.37 % 1.47 % 1.47 % 1.44 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio 17.3 % 15.9 % 17.9 % 17.6 % 17.9 %
Tier 1 leverage ratio 11.0 % 11.3 % 12.1 % 12.5 % 12.9 %
Book value per common share $11.83 $11.95 $11.52 $11.40 $11.34 (1) % 4 %
Tangible book value per common share(1) $11.09 $11.19 $10.75 $10.61 $10.54 (1) % 5 %
Loan Originations (in millions)(6):
Total loan originations $1,846 $1,913 $1,813 $1,646 $1,630 (4) % 13 %
Marketplace loans $1,241 $1,403 $1,477 $1,361 $1,432 (12) % (13) %
Loan originations held for investment $605 $510 $336 $285 $198 19 % 206 %
Loan originations held for investment as a % of total loan originations 33 % 27 % 19 % 17 % 12 %
Servicing Portfolio AUM (in millions)(7):
Total servicing portfolio $12,371 $12,674 $12,999 $13,437 $14,122 (2) % (12) %
Loans serviced for others $7,207 $7,028 $8,337 $8,671 $9,336 3 % (23) %
(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 tangible common equity for the period presented.
(5)
Calculated as annualized net income divided by average total assets for the period presented.
(6)
Includes unsecured personal loans and auto loans only.
(7) Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for
others and retained 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
December 31, September 30, June 30, March 31, December 31, Q/Q Y/Y
2024 2024 2023
2024 2024
Balance Sheet Data:
Securities available for sale $3,452,648 $3,311,418 $2,814,383 $2,228,500 $1,620,262 4 % 113 %
Loans held for sale at fair value $636,352 $849,967 $791,059 $550,415 $407,773 (25) % 56 %
Loans and leases held for investment at amortized cost $4,125,818 $4,108,329 $4,228,391 $4,505,816 $4,850,302 - % (15) %
Gross allowance for loan and lease losses (1) $(285,686) $(274,538) $(285,368) $(311,794) $(355,773) 4 % (20) %
Recovery asset value (2) $48,952 $53,974 $56,459 $52,644 $45,386 (9) % 8 %
Allowance for loan and lease losses $(236,734) $(220,564) $(228,909) $(259,150) $(310,387) 7 % (24) %
Loans and leases held for investment at amortized cost, net $3,889,084 $3,887,765 $3,999,482 $4,246,666 $4,539,915 - % (14) %
Loans held for investment at fair value (3) $1,027,798 $1,287,495 $339,222 $427,396 $272,678 (20) % 277 %
Total loans and leases held for investment (3) $4,916,882 $5,175,260 $4,338,704 $4,674,062 $4,812,593 (5) % 2 %
Whole loans held on balance sheet (4) $5,553,234 $6,025,227 $5,129,763 $5,224,477 $5,220,366 (8) % 6 %
Total assets $10,630,509 $11,037,507 $9,586,050 $9,244,828 $8,827,463 (4) % 20 %
Total deposits $9,068,237 $9,459,608 $8,095,328 $7,521,655 $7,333,486 (4) % 24 %
Total liabilities $9,288,778 $9,694,612 $8,298,105 $7,978,542 $7,575,641 (4) % 23 %
Total equity $1,341,731 $1,342,895 $1,287,945 $1,266,286 $1,251,822 - % 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) The balances at December 31, 2024 and September 30, 2024 include a loan portfolio that was purchased during the third quarter of 2024 of loans
that we previously originated and sold.
(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
December 31, September 30, June 30, March 31, December 31,
2024 2024 2024 2024 2023
Asset Quality Metrics (1):
Allowance for loan and lease losses to total loans 5.7 % 5.4 % 5.4 % 5.8 % 6.4 %
and leases held for investment at amortized cost
Allowance for loan and lease losses to commercial 3.9 % 3.1 % 2.7 % 1.9 % 1.8 %
loans and leases held for investment at amortized
cost
Allowance for loan and lease losses to consumer 6.1 % 5.8 % 5.9 % 6.4 % 7.2 %
loans and leases held for investment at amortized
cost
Gross allowance for loan and lease losses to 7.5 % 7.3 % 7.5 % 7.8 % 8.3 %
consumer loans and leases held for investment at
amortized cost
Net charge-offs $45,977 $55,805 $66,818 $80,483 $82,511
Net charge-off ratio (2) 4.5 % 5.4 % 6.2 % 6.9 % 6.6 %
(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:
---
December 31, December 31,
2024 2023
Unsecured personal $3,106,472 $3,726,830
Residential mortgages 172,711 183,050
Secured consumer 230,232 250,039
Total consumer loans held for investment 3,509,415 4,159,919
Equipment finance (1) 64,232 110,992
Commercial real estate 373,785 380,322
Commercial and industrial 178,386 199,069
Total commercial loans and leases held for investment 616,403 690,383
Total loans and leases held for investment at amortized cost 4,125,818 4,850,302
Allowance for loan and lease losses (236,734) (310,387)
Loans and leases held for investment at amortized cost, net $3,889,084 $4,539,915
Loans held for investment at fair value (2) 1,027,798 272,678
Total loans and leases held for investment (2) $4,916,882 $4,812,593
(1)
Comprised of sales-type leases for equipment.
(2) The balance at December 31, 2024 includes a loan portfolio that was purchased during the third quarter of 2024 of loans that
we previously originated and sold.
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:
December 31, 2024 December 31, 2023
Gross allowance for loan and lease losses (1) $285,686 $355,773
Recovery asset value (2) (48,952) (45,386)
Allowance for loan and lease losses $236,734 $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
December 31, 2024
September 30, 2024
Consumer Commercial Total Consumer Commercial Total
Allowance for loan and lease $200,899 $19,665 $220,564 $210,729 $18,180 $228,909
losses, beginning of period
Credit loss expense for loans 56,322 5,825 62,147 45,813 1,647 47,460
and leases held for investment
Charge-offs (64,167) (1,887) (66,054) (68,388) (721) (69,109)
Recoveries 19,544 533 20,077 12,745 559 13,304
Allowance for loan and lease $212,598 $24,136 $236,734 $200,899 $19,665 $220,564
losses, end of period
Three Months Ended
December 31, 2023
Consumer Commercial Total
Allowance for loan and lease losses, beginning of period $336,288 $14,207 $350,495
Credit loss expense for loans and leases held for investment 43,227 (824) 42,403
Charge-offs (88,904) (1,193) (90,097)
Recoveries 7,450 136 7,586
Allowance for loan and lease losses, end of period $298,061 $12,326 $310,387
LENDINGCLUB CORPORATION
PAST DUE LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
The following tables present past due loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
---
December 31, 2024 30-59 60-89 90 or More Total Days Guaranteed
Days Days Days Past Due Amount (1)
Unsecured personal $23,530 $19,293 $21,387 $64,210
$ -
Residential mortgages 151 88 239
Secured consumer 2,342 600 337 3,279
Total consumer loans held for investment $26,023 $19,981 $21,724 $67,728
$ -
Equipment finance $67
$ - $4,551 $4,618
$ -
Commercial real estate 8,320 483 9,731 18,534 8,456
Commercial and industrial 6,257 1,182 15,971 23,410 18,512
Total commercial loans and leases held for investment $14,644 $1,665 $30,253 $46,562 $26,968
Total loans and leases held for investment at amortized cost $40,667 $21,646 $51,977 $114,290 $26,968
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 (%)
December 31, September 30, December 31, Q4 2024 Q4 2024
2024 2024 2023
vs vs
Q3 2024 Q4 2023
Non-interest income:
Origination fees $64,745 $71,465 $76,702 (9) % (16) %
Servicing fees 17,391 8,081 17,450 115 % - %
Gain on sales of loans 15,007 12,433 11,921 21 % 26 %
Net fair value adjustments (24,980) (33,595) (53,892) 26 % 54 %
Marketplace revenue 72,163 58,384 52,181 24 % 38 %
Other non-interest income 2,654 3,256 1,948 (18) % 36 %
Total non-interest income 74,817 61,640 54,129 21 % 38 %
Total interest income 240,596 240,377 208,319 - % 15 %
Total interest expense 98,212 100,136 76,842 (2) % 28 %
Net interest income 142,384 140,241 131,477 2 % 8 %
Total net revenue 217,201 201,881 185,606 8 % 17 %
Provision for credit losses 63,238 47,541 41,907 33 % 51 %
Non-interest expense:
Compensation and benefits 58,656 57,408 58,591 2 % - %
Marketing 23,415 26,186 23,465 (11) % - %
Equipment and software 13,361 12,789 13,190 4 % 1 %
Depreciation and amortization 19,748 13,341 11,953 48 % 65 %
Professional services 9,136 8,014 7,727 14 % 18 %
Occupancy 3,991 4,005 3,926 - % 2 %
Other non-interest expense 14,548 14,589 11,163 - % 30 %
Total non-interest expense 142,855 136,332 130,015 5 % 10 %
Income before income tax expense 11,108 18,008 13,684 (38) % (19) %
Income tax expense (1,388) (3,551) (3,529) (61) % (61) %
Net income $9,720 $14,457 $10,155 (33) % (4) %
Net income per share:
Basic EPS $0.09 $0.13 $0.09 (31) % - %
Diluted EPS $0.08 $0.13 $0.09 (38) % (11) %
Weighted-average common shares - Basic 112,788,050 112,042,202 109,948,785 1 % 3 %
Weighted-average common shares - Diluted 116,400,285 113,922,256 109,949,371 2 % 6 %
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued)
(In thousands, except share and per share data)
(Unaudited)
Year Ended December 31,
2024 2023 Change (%)
Non-interest income:
Origination fees $283,420 $279,146 2 %
Servicing fees 64,933 98,613 (34) %
Gain on sales of loans 49,097 47,839 3 %
Net fair value adjustments (154,659) (134,114) (15) %
Marketplace revenue 242,791 291,484 (17) %
Other non-interest income 10,179 11,297 (10) %
Total non-interest income 252,970 302,781 (16) %
Total interest income 907,958 832,630 9 %
Total interest expense 373,917 270,792 38 %
Net interest income 534,041 561,838 (5) %
Total net revenue 787,011 864,619 (9) %
Provision for credit losses 178,267 243,565 (27) %
Non-interest expense:
Compensation and benefits 232,158 261,948 (11) %
Marketing 100,402 93,840 7 %
Equipment and software 51,194 53,485 (4) %
Depreciation and amortization 58,834 47,195 25 %
Professional services 32,045 35,173 (9) %
Occupancy 15,798 17,532 (10) %
Other non-interest expense 53,247 57,264 (7) %
Total non-interest expense 543,678 566,437 (4) %
Income before income tax expense 65,066 54,617 19 %
Income tax expense (13,736) (15,678) (12) %
Net income $51,330 $38,939 32 %
Net income per share:
Basic EPS $0.46 $0.36 28 %
Diluted EPS $0.45 $0.36 25 %
Weighted-average common shares - Basic 111,731,523 108,466,179 3 %
Weighted-average common shares - Diluted 113,122,859 108,468,857 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
December 31, 2024 September 30, 2024 December 31, 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 $1,193,570 $14,194 4.76 % $939,611 $12,442 5.30 % $1,190,539 $16,271 5.47 %
Securities available for sale at fair value 3,390,315 57,259 6.76 % 3,047,305 52,476 6.89 % 1,197,625 20,920 6.99 %
Loans held for sale at fair value 673,279 20,696 12.30 % 899,434 30,326 13.49 % 501,850 15,883 12.66 %
Loans and leases held for investment:
Unsecured personal loans 3,080,934 104,011 13.50 % 3,045,150 103,291 13.57 % 3,890,041 128,190 13.18 %
Commercial and other consumer loans 1,023,041 14,203 5.55 % 1,057,688 15,497 5.86 % 1,126,010 17,033 6.05 %
Loans and leases held for investment at amortized cost 4,103,975 118,214 11.52 % 4,102,838 118,788 11.58 % 5,016,051 145,223 11.58 %
Loans held for investment at fair value (3) 1,153,204 30,233 10.49 % 972,698 26,345 10.83 % 306,636 10,022 13.07 %
Total loans and leases held for investment (3) 5,257,179 148,447 11.29 % 5,075,536 145,133 11.44 % 5,322,687 155,245 11.67 %
Total interest-earning assets 10,514,343 240,596 9.15 % 9,961,886 240,377 9.65 % 8,212,701 208,319 10.15 %
Cash and due from banks and restricted cash 51,555 41,147 63,181
Allowance for loan and lease losses (227,673) (225,968) (334,711)
Other non-interest earning assets 597,609 624,198 659,995
Total assets $10,935,834 $10,401,263 $8,601,166
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts $805,362 $5,502 2.72 % $1,092,376 $10,146 3.70 % $1,081,875 $9,593 3.52 %
Savings accounts and certificates of deposit 8,214,866 92,698 4.49 % 6,944,586 86,717 4.97 % 5,720,058 66,660 4.62 %
Interest-bearing deposits 9,020,228 98,200 4.33 % 8,036,962 96,863 4.79 % 6,801,933 76,253 4.45 %
Other interest-bearing liabilities 615 12 7.20 % 486,736 3,273 2.69 % 24,180 589 9.74 %
Total interest-bearing liabilities 9,020,843 98,212 4.33 % 8,523,698 100,136 4.67 % 6,826,113 76,842 4.47 %
Non-interest bearing deposits 328,022 344,577 314,822
Other liabilities 251,239 225,467 238,806
Total liabilities $9,600,104 $9,093,742 $7,379,741
Total equity $1,335,730 $1,307,521 $1,221,425
Total liabilities and equity $10,935,834 $10,401,263 $8,601,166
Interest rate spread 4.82 % 4.98 % 5.68 %
Net interest income and net interest margin $142,384 5.42 % $140,241 5.63 % $131,477 6.40 %
(1)
Consolidated presentation reflects intercompany eliminations.
(2)
Nonaccrual loans and any related income are included in their respective loan categories.
(3) The average balance for the fourth and third quarters of 2024 includes a loan portfolio that was purchased during the third quarter of 2024 of
loans that we previously originated and sold.
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
December 31, December 31,
2024 2023
Assets
Cash and due from banks $15,524 $14,993
Interest-bearing deposits in banks 938,534 1,237,511
Total cash and cash equivalents 954,058 1,252,504
Restricted cash 23,338 41,644
Securities available for sale at fair value ($3,492,264 and $1,663,990 at amortized cost, respectively) 3,452,648 1,620,262
Loans held for sale at fair value 636,352 407,773
Loans and leases held for investment 4,125,818 4,850,302
Allowance for loan and lease losses (236,734) (310,387)
Loans and leases held for investment, net 3,889,084 4,539,915
Loans held for investment at fair value (1) 1,027,798 272,678
Property, equipment and software, net 167,532 161,517
Goodwill 75,717 75,717
Other assets 403,982 455,453
Total assets $10,630,509 $8,827,463
Liabilities and Equity
Deposits:
Interest-bearing $8,676,119 $7,001,680
Noninterest-bearing 392,118 331,806
Total deposits 9,068,237 7,333,486
Borrowings - 19,354
Other liabilities 220,541 222,801
Total liabilities 9,288,778 7,575,641
Equity
Common stock, $0.01 par value; 180,000,000 shares authorized; 113,383,917 and 110,410,602 shares issued and outstanding, respectively 1,134 1,104
Additional paid-in capital 1,702,316 1,669,828
Accumulated deficit (337,476) (388,806)
Accumulated other comprehensive loss (24,243) (30,304)
Total equity 1,341,731 1,251,822
Total liabilities and equity $10,630,509 $8,827,463
(1) The balance at December 31, 2024 includes a loan portfolio that was purchased during the third quarter of 2024 of loans that
we previously originated and sold.
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
Pre-Provision Net Revenue
---
For the three months ended For the year ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2024 2023 2024 2023
2024 2024 2024
GAAP Net income $9,720 $14,457 $14,903 $12,250 $10,155 $51,330 $38,939
Less: Provision for credit losses (63,238) (47,541) (35,561) (31,927) (41,907) (178,267) (243,565)
Less: Income tax expense (1,388) (3,551) (4,519) (4,278) (3,529) (13,736) (15,678)
Pre-provision net revenue $74,346 $65,549 $54,983 $48,455 $55,591 $243,333 $298,182
For the three months ended For the year ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2024 2023 2024 2023
2024 2024 2024
Non-interest income $74,817 $61,640 $58,713 $57,800 $54,129 $252,970 $302,781
Net interest income 142,384 140,241 128,528 122,888 131,477 534,041 561,838
Total net revenue 217,201 201,881 187,241 180,688 185,606 787,011 864,619
Non-interest expense (142,855) (136,332) (132,258) (132,233) (130,015) (543,678) (566,437)
Pre-provision net revenue 74,346 65,549 54,983 48,455 55,591 243,333 298,182
Provision for credit losses (63,238) (47,541) (35,561) (31,927) (41,907) (178,267) (243,565)
Income before income tax expense 11,108 18,008 19,422 16,528 13,684 65,066 54,617
Income tax expense (1,388) (3,551) (4,519) (4,278) (3,529) (13,736) (15,678)
GAAP Net income $9,720 $14,457 $14,903 $12,250 $10,155 $51,330 $38,939
Tangible Book Value Per Common Share
---
December 31, September 30, June 30, March 31, December 31,
2024 2023
2024 2024 2024
GAAP common equity $1,341,731 $1,342,895 $1,287,945 $1,266,286 $1,251,822
Less: Goodwill (75,717) (75,717) (75,717) (75,717) (75,717)
Less: Customer relationship intangible assets (8,586) (9,439) (10,293) (11,165) (12,135)
Tangible common equity $1,257,428 $1,257,739 $1,201,935 $1,179,404 $1,163,970
Book value per common share
---
GAAP common equity $1,341,731 $1,342,895 $1,287,945 $1,266,286 $1,251,822
Common shares issued and outstanding 113,383,917 112,401,990 111,812,215 111,120,415 110,410,602
Book value per common share $11.83 $11.95 $11.52 $11.40 $11.34
Tangible book value per common share
---
Tangible common equity $1,257,428 $1,257,739 $1,201,935 $1,179,404 $1,163,970
Common shares issued and outstanding 113,383,917 112,401,990 111,812,215 111,120,415 110,410,602
Tangible book value per common share $11.09 $11.19 $10.75 $10.61 $10.54
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Continued)
(In thousands, except ratios)
(Unaudited)
Return On Tangible Common Equity
---
For the three months ended For the year ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2024 2023 2024 2023
2024 2024 2024
Average GAAP common equity $1,335,730 $1,307,521 $1,266,608 $1,257,237 $1,221,425 $1,291,938 $1,204,050
Less: Average goodwill (75,717) (75,717) (75,717) (75,717) (75,717) (75,717) (75,717)
Less: Average customer relationship intangible assets (9,013) (9,866) (10,729) (11,650) (12,643) (10,324) (14,198)
Average tangible common equity $1,251,000 $1,221,938 $1,180,162 $1,169,870 $1,133,065 $1,205,897 $1,114,135
Return on average equity
---
Annualized GAAP net income $38,880 $57,828 $59,612 $49,000 $40,620 $51,330 $38,939
Average GAAP common equity $1,335,730 $1,307,521 $1,266,608 $1,257,237 $1,221,425 $1,291,938 $1,204,050
Return on average equity 2.9 % 4.4 % 4.7 % 3.9 % 3.3 % 4.0 % 3.2 %
Return on tangible common equity
---
Annualized GAAP net income $38,880 $57,828 $59,612 $49,000 $40,620 $51,330 $38,939
Average tangible common equity $1,251,000 $1,221,938 $1,180,162 $1,169,870 $1,133,065 $1,205,897 $1,114,135
Return on tangible common equity 3.1 % 4.7 % 5.1 % 4.2 % 3.6 % 4.3 % 3.5 %
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SOURCE LendingClub Corporation
