LendingClub Corp LC

NYS: LC | ISIN: US52603A2087   14/11/2024
15,12 USD (-2,77%)
(-2,77%)   14/11/2024

LendingClub Reports Second Quarter 2023 Results

Gepubliceerd op 26 juli 2023 om 22:06

Continued Profitability with Strong Capital & Liquidity Levels

Successful Launch of Structured Certificates Program

SAN FRANCISCO, July 26, 2023 /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, 2023.

"We're leaning into our data, membership, and business model advantages to deliver continued profitability in a difficult environment," said Scott Sanborn, LendingClub CEO. "While we expect the headwinds in the marketplace to persist, we're managing the business prudently, continuing our disciplined credit underwriting, and developing new structures to meet the evolving needs of loan investors. We are maintaining strong liquidity and capital and remain positioned to capture the massive long-term growth opportunities to help our members keep more of what they earn and earn more on what they save."

Second Quarter 2023 Results

Balance Sheet:

  • Total assets of $8.3 billion compared to $8.8 billion in the prior quarter, reflecting a lower cash position due to the planned maturity of brokered deposits.
  • Deposits of $6.8 billion compared to $7.2 billion in the prior quarter primarily due to the planned maturity of brokered deposits.
    • FDIC-insured deposits represent approximately 85% of total deposits.
  • Loans and leases held for investment of $5.6 billion compared to $5.9 billion in the prior quarter as we moved $200 million in loans into a held for sale designation.
  • Substantial capital position with a consolidated Tier 1 leverage ratio of 12.4% and consolidated Common Equity Tier 1 capital ratio of 16.1%.
  • Book value per common share of $11.09, up from $11.08 in the prior quarter.
  • Tangible book value per common share of $10.26, up from $10.23 in the prior quarter.

Financial Performance:

  • Loan originations of $2.0 billion compared to $2.3 billion in the prior quarter with sold loan volume up modestly, offset by reduced loan retention.
  • Total net revenue of $232.5 million compared to $245.7 million in the prior quarter, driven by lower marketplace revenue.
    • Net interest income of $146.7 million remained flat from the prior quarter as higher interest income was offset by higher cost of interest-bearing deposits.
    • Marketplace revenue of $82.8 million compared to $95.6 million in the prior quarter, reflecting lower price on sold marketplace volumes.
  • Net income of $10.1 million, or diluted EPS of $0.09, compared to $13.7 million, or diluted EPS of $0.13, in the prior quarter.
  • Pre-provision net revenue (PPNR) of $81.4 million compared to $88.4 million in the prior quarter, reflecting lower marketplace revenue, partially offset by lower non-interest expense.
  • Provision for credit losses of $66.6 million compared to $70.6 million in the prior quarter driven by lower volume of retained loans, offset by a modest increase in provision for the portfolio.
  • Efficiency ratio of 65.0% compared to 64.0% in the prior quarter due to a decline in marketplace revenue, partially offset by lower non-interest expense.

Three Months Ended


($ in millions, except per share amounts)

June 30,
2023


March 31,
2023


June 30,
2022

Total net revenue

$           232.5


$            245.7


$            330.1

Non-interest expense

151.1


157.3


209.4

Pre-provision net revenue (1)

81.4


88.4


120.7

Provision for credit losses

66.6


70.6


70.6

Income before income tax benefit (expense)

14.8


17.8


50.1

Income tax benefit (expense)

(4.7)


(4.1)


132.0

Net income

$             10.1


$              13.7


$            182.1

Diluted EPS

$             0.09


$              0.13


$              1.73







Income tax benefit from release of tax valuation allowance

$                —


$                 —


$            135.3

Net income excluding income tax benefit (1)

$             10.1


$              13.7


$              46.8

Diluted EPS excluding income tax benefit (1)

$             0.09


$              0.13


$              0.45



(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, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.

Financial Outlook


Third Quarter 2023


Loan Originations

$1.4B to $1.7B


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 more than 150 billion cells of data and over $85 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 4.7 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 2023 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, July 26, 2023. 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 447049, 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 2, 2023, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 653185. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), 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, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share. Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.

We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.

We believe Pre-Provision Net Revenue, Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are important measures because they reflect the financial performance of our business operations. 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. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in 2022. Diluted EPS Excluding Income Tax Benefit is a non-GAAP financial measure calculated by dividing Net Income Excluding Income Tax Benefit by the weighted-average diluted common shares outstanding.

We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company's use of equity. TBV Per Common Share is a non-GAAP financial measure representing common equity reduced by goodwill and intangible assets, divided by ending common shares issued and outstanding.

For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables beginning on page 13 of this release.

Safe Harbor Statement

Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing borrowers and platform investors; our ability to realize the expected benefits from recent initiatives; 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,
2023


March 31,
2023


December 31,

2022


September 30,

2022


June 30,
2022


Q/Q


Y/Y

Operating Highlights:

Non-interest income

$     85,818


$      98,990


$       127,465


$       181,237


$   213,832


(13) %


(60) %

Net interest income

146,652


146,704


135,243


123,676


116,226


— %


26 %

Total net revenue

232,470


245,694


262,708


304,913


330,058


(5) %


(30) %

Non-interest expense

151,079


157,308


180,044


186,219


209,386


(4) %


(28) %

Pre-provision net revenue(1)

81,391


88,386


82,664


118,694


120,672


(8) %


(33) %

Provision for credit losses

66,595


70,584


61,512


82,739


70,566


(6) %


(6) %

Income before income tax benefit (expense)

14,796


17,802


21,152


35,955


50,106


(17) %


(70) %

Income tax benefit (expense)

(4,686)


(4,136)


2,439


7,243


131,954


13 %


N/M

Net income

10,110


13,666


23,591


43,198


182,060


(26) %


(94) %

Income tax benefit from release of tax valuation allowance

—


—


3,180


5,015


135,300


N/M


N/M

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

$     10,110


$      13,666


$         20,411


$         38,183


$     46,760


(26) %


(78) %















Basic EPS

$         0.09


$          0.13


$             0.22


$             0.41


$         1.77


(31) %


(95) %

Diluted EPS

$         0.09


$          0.13


$             0.22


$             0.41


$         1.73


(31) %


(95) %

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

$         0.09


$          0.13


$             0.19


$             0.36


$         0.45


(31) %


(80) %















LendingClub Corporation Performance Metrics:

Net interest margin

7.1 %


7.5 %


7.8 %


8.3 %


8.5 %





Efficiency ratio(3)

65.0 %


64.0 %


68.5 %


61.1 %


63.4 %





Return on average equity (ROE)(4)

3.4 %


4.6 %


7.2 %


14.2 %


33.8 %





Return on average total assets (ROA)(5)

0.5 %


0.7 %


1.1 %


2.5 %


5.5 %





Marketing expense as a % of loan originations

1.2 %


1.2 %


1.4 %


1.3 %


1.6 %



















LendingClub Corporation Capital Metrics:

Common equity Tier 1 capital ratio

16.1 %


15.6 %


15.8 %


18.3 %


20.0 %





Tier 1 leverage ratio

12.4 %


12.8 %


14.1 %


15.7 %


16.2 %





Book value per common share

$       11.09


$        11.08


$           10.93


$           10.67


$       10.41


— %


7 %

Tangible book value per common share(1)

$       10.26


$        10.23


$           10.06


$             9.78


$         9.50


— %


8 %















Loan Originations (in millions)(6):














Total loan originations

$       2,011


$        2,288


$           2,524


$           3,539


$       3,840


(12) %


(48) %

Marketplace loans

$       1,353


$        1,286


$           1,824


$           2,386


$       2,819


5 %


(52) %

Loan originations held for investment

$          657


$        1,002


$              701


$           1,153


$       1,021


(34) %


(36) %

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

33 %


44 %


28 %


33 %


27 %



















Servicing Portfolio AUM (in millions)(7):

Total servicing portfolio

$      15,669


$       16,060


$         16,157


$         15,929


$      14,783


(2) %


6 %

Loans serviced for others

$      10,204


$       10,504


$         10,819


$         11,807


$      11,382


(3) %


(10) %

 

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS (Continued)

(In thousands, except percentages or as noted)

(Unaudited)





As of and for the three months ended


% Change



June 30,
2023


March 31,
2023


December 31,

2022


September 30,

2022


June 30,
2022


Q/Q


Y/Y


Balance Sheet Data:


Loans and leases held for investment at amortized cost, net, excluding PPP loans

$ 5,160,546


$ 5,091,969


$    4,638,331


$    4,414,347


$ 3,692,667


1 %


40 %


PPP loans

$      17,640


$      51,112


$         66,971


$         89,379


$    118,794


(65) %


(85) %


Total loans and leases held for investment at amortized cost, net(8)

$ 5,178,186


$ 5,143,081


$    4,705,302


$    4,503,726


$ 3,811,461


1 %


36 %


Loans held for investment at fair value

$    404,119


$    748,618


$       925,938


$         15,057


$      20,583


(46) %


N/M


Total loans and leases held for investment

$ 5,582,305


$ 5,891,699


$    5,631,240


$    4,518,783


$ 3,832,044


(5) %


46 %


Total assets

$ 8,342,506


$ 8,754,018


$    7,979,747


$    6,775,074


$ 6,186,765


(5) %


35 %


Total deposits

$ 6,843,535


$ 7,218,854


$    6,392,553


$    5,123,506


$ 4,527,672


(5) %


51 %


Total liabilities

$ 7,136,983


$ 7,563,276


$    6,815,453


$    5,653,664


$ 5,107,648


(6) %


40 %


Total equity

$ 1,205,523


$ 1,190,742


$    1,164,294


$    1,121,410


$ 1,079,117


1 %


12 %



N/M – Not meaningful

(1)

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

(2)

Excludes fourth, third and second quarter 2022 income tax benefit of $3.2 million, $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance.

(3)

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

(4)

Calculated as annualized net income (which excludes the income tax benefit from the release of the deferred tax asset valuation allowance in the periods it did not occur) divided by average equity for the period presented.

(5)

Calculated as annualized net income (which excludes the income tax benefit from the release of the deferred tax asset valuation allowance in the periods it did not occur) 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 held for investment by the company.

(8)

Excludes loans held for investment at fair value, which primarily consists of a loan portfolio that was acquired in the fourth quarter of 2022.



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,
2023


March 31,
2023


December 31,
2022


September 30,
2022


June 30,

2022


Asset Quality Metrics:


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

6.4 %


6.4 %


6.5 %


6.3 %


6.0 %


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

7.1 %


7.1 %


7.3 %


7.2 %


6.9 %


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

1.9 %


2.0 %


2.0 %


1.9 %


2.0 %


Net charge-offs

$         59,884


$          49,845


$          37,148


$          22,658


$          14,778


Net charge-off ratio(1)

4.4 %


3.8 %


3.0 %


2.1 %


1.6 %




(1)

Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period, excluding PPP loans.

 

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,
2023


December 31,
2022

Unsecured personal

$       4,371,330


$       3,866,373

Residential mortgages

192,256


199,601

Secured consumer

237,372


194,634

Total consumer loans held for investment

4,800,958


4,260,608

Equipment finance (1)

142,073


160,319

Commercial real estate

382,738


373,501

Commercial and industrial (2)

207,580


238,726

Total commercial loans and leases held for investment

732,391


772,546

Total loans and leases held for investment at amortized cost

5,533,349


5,033,154

Allowance for loan and lease losses

(355,163)


(327,852)

Loans and leases held for investment at amortized cost, net

$       5,178,186


$       4,705,302

Loans held for investment at fair value

404,119


925,938

Total loans and leases held for investment

$       5,582,305


$       5,631,240



(1)

Comprised of sales-type leases for equipment.

(2)

Includes $17.6 million and $67.0 million of Paycheck Protection Program (PPP) loans as of June 30, 2023 and December 31, 2022, respectively. Such loans are guaranteed by the Small Business Association and, therefore, the company determined no allowance for expected credit losses is required on these loans.

 

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands)

(Unaudited)
 


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, 2023


March 31, 2023


Consumer


Commercial


Total


Consumer


Commercial


Total

Allowance for loan and lease losses, beginning of period

$    333,546


$        15,311


$ 348,857


$    312,489


$        15,363


$ 327,852

Credit loss expense for loans and leases held for investment

66,874


(684)


66,190


70,684


166


70,850

Charge-offs

(63,345)


(924)


(64,269)


(52,212)


(351)


(52,563)

Recoveries

4,086


299


4,385


2,585


133


2,718

Allowance for loan and lease losses, end of period

$    341,161


$        14,002


$ 355,163


$    333,546


$        15,311


$ 348,857

 


Three Months Ended



June 30, 2022


Consumer


Commercial


Total

Allowance for loan and lease losses, beginning of period

$    173,857


$        14,128


$ 187,985

Credit loss expense for loans and leases held for investment

68,314


1,739


70,053

Charge-offs

(14,707)


(1,145)


(15,852)

Recoveries

720


354


1,074

Allowance for loan and lease losses, end of period

$    228,184


$        15,076


$ 243,260

 

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, 2023

30-59
Days


60-89
Days


90 or More
Days


Total Days
Past Due


Unsecured personal

$      29,768


$      23,951


$      23,397


$             77,116

Residential mortgages

—


—


165


165

Secured consumer

54


51


—


105

Total consumer loans held for investment

$      29,822


$      24,002


$      23,562


$             77,386









Equipment finance

$           485


$              —


$           683


$               1,168

Commercial real estate

2,115


—


10,561


12,676

Commercial and industrial (1)

184


358


1,608


2,150

Total commercial loans and leases held for investment (1)

$         2,784


$            358


$      12,852


$             15,994

Total loans and leases held for investment at amortized cost (1)

$       32,606


$       24,360


$      36,414


$             93,380

 

December 31, 2022

30-59
Days


60-89
Days


90 or More
Days


Total Days
Past Due


Unsecured personal

$      21,016


$      16,418


$      16,255


$             53,689

Residential mortgages

—


254


331


585

Secured consumer

1,720


382


188


2,290

Total consumer loans held for investment

$      22,736


$      17,054


$      16,774


$             56,564









Equipment finance

$        3,172


$             —


$           859


$               4,031

Commercial real estate

—


102


—


102

Commercial and industrial (1)

—


—


1,643


1,643

Total commercial loans and leases held for investment (1)

$        3,172


$           102


$        2,502


$               5,776

Total loans and leases held for investment at amortized cost (1)

$      25,908


$      17,156


$      19,276


$             62,340



(1)

Past due PPP loans are excluded from the tables.

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)





Three Months Ended


Change (%)



June 30,
2023


March 31,
2023


June 30,
2022


Q2 2023

vs

Q1 2023


Q2 2023

vs

Q2 2022

Non-interest income:










Origination fees

$         70,989


$          70,543


$       149,252


1 %


(52) %

Servicing fees

22,015


26,380


18,166


(17) %


21 %

Gain on sales of loans

13,221


14,125


29,319


(6) %


(55) %

Net fair value adjustments

(23,442)


(15,414)


9,647


52 %


N/M

Marketplace revenue

82,783


95,634


206,384


(13) %


(60) %

Other non-interest income

3,035


3,356


7,448


(10) %


(59) %

Total non-interest income

85,818


98,990


213,832


(13) %


(60) %











Total interest income

214,486


202,413


128,468


6 %


67 %

Total interest expense

67,834


55,709


12,242


22 %


454 %

Net interest income

146,652


146,704


116,226


— %


26 %











Total net revenue

232,470


245,694


330,058


(5) %


(30) %











Provision for credit losses

66,595


70,584


70,566


(6) %


(6) %











Non-interest expense:










Compensation and benefits

71,553


73,307


85,103


(2) %


(16) %

Marketing

23,940


26,880


61,497


(11) %


(61) %

Equipment and software

13,968


13,696


12,461


2 %


12 %

Depreciation and amortization

11,638


12,354


10,557


(6) %


10 %

Professional services

9,974


9,058


16,138


10 %


(38) %

Occupancy

4,684


4,310


6,209


9 %


(25) %

Other non-interest expense

15,322


17,703


17,421


(13) %


(12) %

Total non-interest expense

151,079


157,308


209,386


(4) %


(28) %











Income before income tax benefit (expense)

14,796


17,802


50,106


(17) %


(70) %

Income tax benefit (expense)

(4,686)


(4,136)


131,954


13 %


N/M

Net income

$         10,110


$          13,666


$       182,060


(26) %


(94) %











Net income per share: 










Basic EPS

$            0.09


$              0.13


$            1.77


(31) %


(95) %

Diluted EPS

$            0.09


$              0.13


$            1.73


(31) %


(95) %

Weighted-average common shares – Basic

107,892,590


106,912,139


102,776,867


1 %


5 %

Weighted-average common shares – Diluted

107,895,072


106,917,770


105,042,626


1 %


3 %


N/M – Not meaningful

 

LENDINGCLUB CORPORATION

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)





Consolidated LendingClub Corporation (1)


Three Months Ended

June 30, 2023


Three Months Ended

March 31, 2023


Three Months Ended

June 30, 2022


Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate


Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate


Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate

Interest-earning assets (2)


















Cash, cash equivalents, restricted cash and other

$ 1,512,700


$  19,134


5.06 %


$ 1,220,677


$   13,714


4.49 %


$ 1,023,192


$    2,279


0.89 %

Securities available for sale at fair value

437,473


5,948


5.44 %


362,960


3,900


4.30 %


409,327


4,426


4.32 %

Loans held for sale at fair value

106,865


4,433


16.59 %


110,580


5,757


20.83 %


156,503


7,130


18.22 %

Loans and leases held for investment:


















Unsecured personal loans

4,360,506


145,262


13.33 %


4,066,713


133,687


13.15 %


2,692,148


95,529


14.19 %

Commercial and other consumer loans

1,156,751


16,823


5.82 %


1,175,504


16,780


5.71 %


1,061,547


13,382


5.04 %

Loans and leases held for investment at amortized cost

5,517,257


162,085


11.75 %


5,242,217


150,467


11.48 %


3,753,695


108,911


11.61 %

Loans held for investment at fair value

670,969


21,692


12.93 %


836,313


26,892


12.86 %


16,991


631


14.85 %

Total loans and leases held for investment

6,188,226


183,777


11.88 %


6,078,530


177,359


11.67 %


3,770,686


109,542


11.62 %

Retail and certificate loans held for investment at fair value

32,760


1,194


14.57 %


46,525


1,683


14.47 %


144,613


5,091


14.08 %

Total interest-earning assets

8,278,024


214,486


10.36 %


7,819,272


202,413


10.35 %


5,504,321


128,468


9.34 %



















Cash and due from banks and restricted cash

78,221






71,878






75,517





Allowance for loan and lease losses

(354,348)






(338,359)






(202,904)





Other non-interest earning assets

686,956






666,650






490,412





Total assets

$ 8,688,853






$ 8,219,441






$ 5,867,346























Interest-bearing liabilities


















Interest-bearing deposits:


















Checking and money market accounts

$ 1,397,302


$    7,760


2.23 %


$ 1,633,691


$     7,568


1.88 %


$ 2,463,710


$    2,664


0.43 %

Savings accounts and certificates of deposit

5,546,862


58,761


4.25 %


4,747,478


45,705


3.90 %


1,555,607


3,414


0.88 %

Interest-bearing deposits

6,944,164


66,521


3.84 %


6,381,169


53,273


3.39 %


4,019,317


6,078


0.61 %

Retail notes, certificates and secured borrowings

32,760


1,194


14.57 %


46,525


1,683


14.47 %


144,613


5,091


14.08 %

Other interest-bearing liabilities

31,409


119


1.51 %


107,520


753


2.80 %


195,948


1,073


2.19 %

Total interest-bearing liabilities

7,008,333


67,834


3.88 %


6,535,214


55,709


3.46 %


4,359,878


12,242


1.12 %



















Non-interest bearing deposits

205,750






241,954






292,750





Other liabilities

272,142






263,868






261,795





Total liabilities

$ 7,486,225






$ 7,041,036






$ 4,914,423





 

LENDINGCLUB CORPORATION

NET INTEREST INCOME (Continued)

(In thousands, except percentages or as noted)

(Unaudited)





Consolidated LendingClub Corporation (1)


Three Months Ended

June 30, 2023


Three Months Ended

March 31, 2023


Three Months Ended

June 30, 2022


Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate


Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate


Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate

Total equity

$ 1,202,628






$ 1,178,405






$    952,922





Total liabilities and equity

$ 8,688,853






$ 8,219,441






$ 5,867,345























Interest rate spread





6.48 %






6.90 %






8.21 %



















Net interest income and net interest margin



$  146,652


7.09 %




$ 146,704


7.50 %




$  116,226


8.45 %



(1)

Consolidated presentation reflects intercompany eliminations.

(2)

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

 

LENDINGCLUB CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)





June 30,
2023


December 31,
2022

Assets




Cash and due from banks

$            20,950


$         23,125

Interest-bearing deposits in banks

1,182,974


1,033,905

Total cash and cash equivalents

1,203,924


1,057,030

Restricted cash

34,792


67,454

Securities available for sale at fair value ($579,704 and $399,668 at amortized cost, respectively)

523,579


345,702

Loans held for sale at fair value

250,361


110,400

Loans and leases held for investment

5,533,349


5,033,154

Allowance for loan and lease losses

(355,163)


(327,852)

Loans and leases held for investment, net

5,178,186


4,705,302

Loans held for investment at fair value

404,119


925,938

Retail and certificate loans held for investment at fair value

26,837


55,425

Property, equipment and software, net

151,608


136,473

Goodwill

75,717


75,717

Other assets

493,383


500,306

Total assets

$        8,342,506


$     7,979,747

Liabilities and Equity




Deposits:




Interest-bearing

$        6,653,749


$     6,158,560

Noninterest-bearing

189,786


233,993

Total deposits

6,843,535


6,392,553

Borrowings

15,675


74,858

Retail notes, certificates and secured borrowings at fair value

26,837


55,425

Other liabilities

250,936


292,617

Total liabilities

7,136,983


6,815,453

Equity




Common stock, $0.01 par value; 180,000,000 shares authorized; 108,694,120 and 106,546,995 shares issued and outstanding, respectively

1,087


1,065

Additional paid-in capital

1,647,593


1,628,590

Accumulated deficit

(403,969)


(427,745)

Accumulated other comprehensive loss

(39,188)


(37,616)

Total equity

1,205,523


1,164,294

Total liabilities and equity

$        8,342,506


$     7,979,747

 

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



June 30,

2023


March 31,

2023


December 31,

2022


September 30,
2022


June 30,
2022

GAAP Net income

$            10,110


$            13,666


$               23,591


$               43,198


$          182,060

Less: Provision for credit losses

(66,595)


(70,584)


(61,512)


(82,739)


(70,566)

Less: Income tax benefit (expense)

(4,686)


(4,136)


2,439


7,243


131,954

Pre-provision net revenue

$            81,391


$            88,386


$               82,664


$             118,694


$          120,672

 



For the three months ended




June 30,

2023


March 31,

2023


December 31,

2022


September 30,
2022


June 30,
2022

Non-interest income

$            85,818


$            98,990


$            127,465


$             181,237


$          213,832

Net interest income

146,652


146,704


135,243


123,676


116,226

Total net revenue

232,470


245,694


262,708


304,913


330,058

Non-interest expense

(151,079)


(157,308)


(180,044)


(186,219)


(209,386)

Pre-provision net revenue

81,391


88,386


82,664


118,694


120,672

Provision for credit losses

(66,595)


(70,584)


(61,512)


(82,739)


(70,566)

Income before income tax benefit (expense)

14,796


17,802


21,152


35,955


50,106

Income tax benefit (expense)

(4,686)


(4,136)


2,439


7,243


131,954

GAAP Net income

$            10,110


$            13,666


$              23,591


$               43,198


$          182,060

 

Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit






For the three months ended



December 31,

2022


September 30,
2022


June 30,
2022

GAAP Net income

$             23,591


$             43,198


$           182,060

Less: Income tax benefit from release of tax valuation allowance

3,180


5,015


135,300

Net income excluding income tax benefit

$             20,411


$             38,183


$             46,760








GAAP Diluted EPS

$                 0.22


$                 0.41


$                 1.73








(A)

Income tax benefit from release of tax valuation allowance

$               3,180


$               5,015


$           135,300

(B)

Weighted-average common shares – Diluted

105,984,612


105,853,938


105,042,626

(A/B)

Diluted EPS impact of income tax benefit

$                 0.03


$                 0.05


$                 1.28








Diluted EPS excluding income tax benefit

$                 0.19


$                 0.36


$                 0.45

 

LENDINGCLUB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Continued)

(In thousands, except share and per share data)

(Unaudited)


Tangible Book Value Per Common Share





June 30,

2023


March 31,

2023


December 31,

2022


September 30,
2022


June 30,
2022

GAAP common equity

$     1,205,523


$     1,190,742


$       1,164,294


$       1,121,410


$     1,079,117

Less: Goodwill

(75,717)


(75,717)


(75,717)


(75,717)


(75,717)

Less: Intangible assets

(14,167)


(15,201)


(16,334)


(17,512)


(18,690)

Tangible common equity

$     1,115,639


$     1,099,824


$       1,072,243


$       1,028,181


$        984,710











Book value per common share










GAAP common equity

$     1,205,523


$     1,190,742


$       1,164,294


$       1,121,410


$     1,079,117

Common shares issued and outstanding

108,694,120


107,460,734


106,546,995


105,088,761


103,630,776

Book value per common share

$            11.09


$            11.08


$              10.93


$              10.67


$            10.41











Tangible book value per common share










Tangible common equity

$     1,115,639


$     1,099,824


$       1,072,243


$       1,028,181


$        984,710

Common shares issued and outstanding

108,694,120


107,460,734


106,546,995


105,088,761


103,630,776

Tangible book value per common share

$            10.26


$            10.23


$              10.06


$                9.78


$              9.50

 

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SOURCE LendingClub Corporation

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