July13 , 2024

LendingClub Reports Fourth Quarter and Full Year 2023 Results

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LendingClub Reports Fourth Quarter and Full Year 2023 Results

Increased Marketplace Originations 21% QoQ with $1B of Structured Certificates Sold

Continued GAAP Profitability with Strong Capital & Liquidity Levels

SAN FRANCISCO, Jan. 30, 2024 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2023.

“Thanks to our differentiated business model, strong execution, data advantage, and ongoing innovation, we have remained one of the few fintechs to sustain GAAP profitability throughout this turbulent macro environment, which positions us well for future acceleration,” said Scott Sanborn, LendingClub CEO. “Since acquiring our bank charter three years ago, we have transformed our financial profile and business – tripling our balance sheet, building tangible book value by approximately 2X, growing deposits by almost 4X, and delivering 12 straight quarters of credit out performance. Furthermore, we continue to innovate with offerings like our structured certificates and we’ve made tangible progress towards a multi-product mobile-first experience. This foundation will enable us to capture the ongoing historic multi-billion-dollar refinance opportunity, engage our members in entirely new ways, and build long-term shareholder value.” 

Fourth Quarter 2023 Results

Balance Sheet:

  • Total assets of $8.8 billion compared to $8.5 billion in the prior quarter, primarily reflecting growth in securities related to the structured certificate program.
  • Deposits of $7.3 billion compared to $7.0 billion in the prior quarter, primarily due to an increase in customer certificates of deposit.
    • FDIC-insured deposits represent approximately 87% of total deposits.
  • Securities available for sale of $1.6 billion compared to $0.8 billion in the prior quarter, primarily reflecting growth in the structured certificate program.
  • Loans and leases held for investment of $4.8 billion compared to $5.2 billion in the prior quarter as the Company grew the structured certificate and extended seasoning programs while retaining fewer held for investment loans.
  • Strong capital position with a consolidated Tier 1 leverage ratio of 12.9% and consolidated Common Equity Tier 1 capital ratio of 17.9%.
  • Book value per common share of $11.34 compared to $11.02 in the prior quarter.
  • Tangible book value per common share of $10.54 compared to $10.21 in the prior quarter.

Financial Performance:

  • Loan originations of $1.6 billion compared to $1.5 billion in the prior quarter as a result of increased purchases by loan investors; Marketplace originations of $1.4 billion grew 21% compared to the prior quarter.
  • Total net revenue of $185.6 million compared to $200.8 million in the prior quarter driven by:
    • Marketplace revenue of $52.2 million compared to $60.9 million in the prior quarter, primarily reflecting a $10.4 million one-time benefit in the prior quarter related to recouping volume-based purchase incentives from the bank investor channel.
    • Net interest income of $131.5 million compared to $137.0 million in the prior quarter reflecting a shift in asset mix from held for investment loans to senior securities and higher deposit funding costs.
  • Provision for credit losses of $41.9 million compared to $64.5 million in the prior quarter driven by lower volume of retained loans and lower incremental provision on older vintages.
  • Net income of $10.2 million, or diluted EPS of $0.09, compared to $5.0 million, or diluted EPS of $0.05, in the prior quarter.
  • Pre-provision net revenue (PPNR) of $55.6 million compared to $72.8 million in the prior quarter.
  • Efficiency ratio of 70.0% compared to 63.7% in the prior quarter.

Three Months Ended


Year Ended

($ in millions, except per share amounts)

December 31,
2023


September 30,
2023


December 31,
2022


December 31,
2023


December 31,
2022

Total net revenue

$             185.6


$               200.8


$             262.7


$             864.6


$          1,187.2

Non-interest expense

130.0


128.0


180.0


566.4


766.9

Pre-provision net revenue (1)

55.6


72.8


82.7


298.2


420.3

Provision for credit losses

41.9


64.5


61.5


243.6


267.3

Income before income tax benefit (expense)

13.7


8.3


21.2


54.6


153.0

Income tax benefit (expense)

(3.5)


(3.3)


2.4


(15.7)


136.6

Net income

$               10.2


$                   5.0


$               23.6


$               38.9


$             289.7

Diluted EPS

$               0.09


$                 0.05


$               0.22


$               0.36


$               2.79

Income tax benefit from release of tax valuation allowance

$                   —


$                     —


$                 3.2


$                   —


$             143.5

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

$               10.2


$                   5.0


$               20.4


$               38.9


$             146.2

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

$               0.09


$                 0.05


$               0.19


$               0.36


$               1.41

(1)

See page 3 of this release for additional information on our use of non-GAAP financial measures.

(2)

Fourth quarter of 2022 and the year ended December 31, 2022 exclude income tax benefit of $3.2 million and $143.5 million, respectively, due to the release of a deferred tax asset valuation allowance.

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


First Quarter 2024


Loan Originations

$1.5B to $1.7B


Pre-Provision Net Revenue (PPNR)                                        

$30M to $40M


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 $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.8 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 2023 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, January 30, 2024. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (404) 975-4839, or outside the U.S. +1 (833) 470-1428, with Access Code 634284, 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 6, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 705298. 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:
[email protected]

Media Contact:
[email protected]

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 14 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; 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,
2023


September 30,
2023


June 30,

2023


March 31,

2023


December 31,
2022


Q/Q


Y/Y


Operating Highlights:


Non-interest income

$        54,129


$        63,844


$     85,818


$      98,990


$      127,465


(15) %


(58) %


Net interest income

131,477


137,005


146,652


146,704


135,243


(4) %


(3) %


Total net revenue

185,606


200,849


232,470


245,694


262,708


(8) %


(29) %


Non-interest expense

130,015


128,035


151,079


157,308


180,044


2 %


(28) %


Pre-provision net revenue(1)

55,591


72,814


81,391


88,386


82,664


(24) %


(33) %


Provision for credit losses

41,907


64,479


66,595


70,584


61,512


(35) %


(32) %


Income before income tax benefit (expense)

13,684


8,335


14,796


17,802


21,152


64 %


(35) %


Income tax benefit (expense)

(3,529)


(3,327)


(4,686)


(4,136)


2,439


6 %


(245) %


Net income

10,155


5,008


10,110


13,666


23,591


103 %


(57) %


Income tax benefit from release of tax valuation allowance





3,180


N/M


N/M


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

$        10,155


$          5,008


$     10,110


$      13,666


$        20,411


103 %


(50) %

















Basic EPS

$            0.09


$            0.05


$         0.09


$          0.13


$            0.22


80 %


(59) %


Diluted EPS

$            0.09


$            0.05


$         0.09


$          0.13


$            0.22


80 %


(59) %


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

$            0.09


$            0.05


$         0.09


$          0.13


$            0.19


80 %


(53) %

















LendingClub Corporation Performance Metrics:


Net interest margin

6.4 %


6.9 %


7.1 %


7.5 %


7.8 %






Efficiency ratio(3)

70.0 %


63.7 %


65.0 %


64.0 %


68.5 %






Return on average equity (ROE)(4)

3.3 %


1.7 %


3.4 %


4.6 %


7.2 %






Return on average total assets (ROA)(5)

0.5 %


0.2 %


0.5 %


0.7 %


1.1 %






Marketing expense as a % of loan originations

1.4 %


1.3 %


1.2 %


1.2 %


1.4 %





















LendingClub Corporation Capital Metrics:


Common equity Tier 1 capital ratio

17.9 %


16.9 %


16.1 %


15.6 %


15.8 %






Tier 1 leverage ratio

12.9 %


13.2 %


12.4 %


12.8 %


14.1 %






Book value per common share

$          11.34


$          11.02


$       11.09


$        11.08


$          10.93


3 %


4 %


Tangible book value per common share(1)

$          10.54


$          10.21


$       10.26


$        10.23


$          10.06


3 %


5 %

















Loan Originations (in millions)(6):















Total loan originations

$          1,630


$          1,508


$       2,011


$        2,288


$          2,524


8 %


(35) %


Marketplace loans

$          1,432


$          1,182


$       1,353


$        1,286


$          1,824


21 %


(21) %


Loan originations held for investment

$             198


$             326


$          657


$        1,002


$             701


(39) %


(72) %


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

12 %


22 %


33 %


44 %


28 %





















Servicing Portfolio AUM (in millions)(7):


Total servicing portfolio

$         14,122


$         14,818


$      15,669


$       16,060


$         16,157


(5) %


(13) %


Loans serviced for others

$           9,336


$           9,601


$      10,204


$       10,504


$         10,819


(3) %


(14) %

















LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS (Continued)

(In thousands, except percentages or as noted)

(Unaudited)




Balance Sheet Data:


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

$   4,533,523


$   4,879,222


$  5,160,546


$ 5,091,969


$   4,638,331


(7) %


(2) %


PPP loans

$          6,392


$          7,560


$       17,640


$      51,112


$        66,971


(15) %


(90) %


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

$   4,539,915


$   4,886,782


$  5,178,186


$ 5,143,081


$   4,705,302


(7) %


(4) %


Loans held for investment at fair value

$      262,190


$      326,299


$     404,119


$    748,618


$      925,938


(20) %


(72) %


Total loans and leases held for investment

$   4,802,105


$   5,213,081


$  5,582,305


$ 5,891,699


$   5,631,240


(8) %


(15) %


Total assets

$   8,827,463


$   8,472,351


$  8,342,506


$ 8,754,018


$   7,979,747


4 %


11 %


Total deposits

$   7,333,486


$   7,000,263


$  6,843,535


$ 7,218,854


$   6,392,553


5 %


15 %


Total liabilities

$   7,575,641


$   7,264,132


$  7,136,983


$ 7,563,276


$   6,815,453


4 %


11 %


Total equity

$   1,251,822


$   1,208,219


$  1,205,523


$ 1,190,742


$   1,164,294


4 %


8 %


N/M – Not meaningful

(1)

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

(2)

Excludes fourth quarter 2022 income tax benefit of $3.2 million 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



December 31,
2023


September 30,
2023


June 30,
2023


March 31,
2023


December 31,
2022


Asset Quality Metrics:


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

6.7 %


6.7 %


6.4 %


6.4 %


6.5 %


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

7.2 %


7.4 %


7.1 %


7.1 %


7.3 %


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

1.8 %


2.0 %


1.9 %


2.0 %


2.0 %


Net charge-offs

$          82,511


$          68,795


$          59,884


$          49,845


$          37,148


Net charge-off ratio(1)

6.6 %


5.1 %


4.4 %


3.8 %


3.0 %


(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:



December 31,
2023


December 31,
2022


Unsecured personal

$       3,726,830


$       3,866,373


Residential mortgages

183,050


199,601


Secured consumer

250,039


194,634


Total consumer loans held for investment

4,159,919


4,260,608


Equipment finance (1)

110,992


160,319


Commercial real estate

380,322


373,501


Commercial and industrial (2)

199,069


238,726


Total commercial loans and leases held for investment

690,383


772,546


Total loans and leases held for investment at amortized cost

4,850,302


5,033,154


Allowance for loan and lease losses

(310,387)


(327,852)


Loans and leases held for investment at amortized cost, net

$       4,539,915


$       4,705,302


Loans held for investment at fair value

262,190


925,938


Total loans and leases held for investment

$       4,802,105


$       5,631,240


(1)

Comprised of sales-type leases for equipment.

(2)

Includes $6.4 million and $67.0 million of Paycheck Protection Program (PPP) loans as of December 31, 2023 and 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



December 31, 2023


September 30, 2023



Consumer


Commercial


Total


Consumer


Commercial


Total


Allowance for loan and lease losses, beginning of period

$    336,288


$        14,207


$ 350,495


$    341,161


$        14,002


$ 355,163


Credit loss expense for loans and leases held for investment

43,227


(824)


42,403


63,733


394


64,127


Charge-offs

(88,904)


(1,193)


(90,097)


(73,644)


(534)


(74,178)


Recoveries

7,450


136


7,586


5,038


345


5,383


Allowance for loan and lease losses, end of period

$    298,061


$        12,326


$ 310,387


$    336,288


$        14,207


$ 350,495


 

LENDINGCLUB CORPORATION

PAST DUE LOANS AND LEASES HELD FOR INVESTMENT

(In thousands)

(Unaudited)





Three Months Ended



December 31, 2022



Consumer


Commercial


Total


Allowance for loan and lease losses, beginning of period

$    288,138


$        15,063


$ 303,201


Credit loss expense for loans and leases held for investment

61,392


407


61,799


Charge-offs

(38,579)


(225)


(38,804)


Recoveries

1,538


118


1,656


Allowance for loan and lease losses, end of period

$    312,489


$        15,363


$ 327,852


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, 2023

30-59
Days


60-89
Days


90 or More
Days


Total Days
Past Due


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


Commercial and industrial (1)

12,261


1,632


1,515


15,408


Total commercial loans and leases held for investment (1)

$      13,526


$        5,198


$        3,133


$             21,857


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

$      50,069


$      35,389


$      33,482


$           118,940


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 (%)


December 31,
2023


September 30,
2023


December 31,
2022


Q4 2023

vs

Q3 2023


Q4 2023

vs

Q4 2022

Non-interest income:










Origination fees

$         76,702


$          60,912


$       100,692


26 %


(24) %

Servicing fees

17,450


32,768


20,169


(47) %


(13) %

Gain on sales of loans

11,921


8,572


18,352


39 %


(35) %

Net fair value adjustments

(53,892)


(41,366)


(15,774)


30 %


242 %

Marketplace revenue

52,181


60,886


123,439


(14) %


(58) %

Other non-interest income

1,948


2,958


4,026


(34) %


(52) %

Total non-interest income

54,129


63,844


127,465


(15) %


(58) %











Total interest income

208,319


207,412


173,999


— %


20 %

Total interest expense

76,842


70,407


38,756


9 %


98 %

Net interest income

131,477


137,005


135,243


(4) %


(3) %











Total net revenue

185,606


200,849


262,708


(8) %


(29) %











Provision for credit losses

41,907


64,479


61,512


(35) %


(32) %











Non-interest expense:










Compensation and benefits

58,591


58,497


87,768


— %


(33) %

Marketing

23,465


19,555


35,139


20 %


(33) %

Equipment and software

13,190


12,631


13,200


4 %


— %

Depreciation and amortization

11,953


11,250


11,554


6 %


3 %

Professional services

7,727


8,414


10,029


(8) %


(23) %

Occupancy

3,926


4,612


4,698


(15) %


(16) %

Other non-interest expense

11,163


13,076


17,656


(15) %


(37) %

Total non-interest expense

130,015


128,035


180,044


2 %


(28) %











Income before income tax benefit (expense)

13,684


8,335


21,152


64 %


(35) %

Income tax benefit (expense)

(3,529)


(3,327)


2,439


6 %


(245) %

Net income

$         10,155


$            5,008


$         23,591


103 %


(57) %











Net income per share: 










Basic EPS

$             0.09


$              0.05


$             0.22


80 %


(59) %

Diluted EPS

$             0.09


$              0.05


$             0.22


80 %


(59) %

Weighted-average common shares – Basic

109,948,785


109,071,180


105,650,177


1 %


4 %

Weighted-average common shares – Diluted

109,949,371


109,073,194


105,984,612


1 %


4 %

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





Year Ended December 31,




2023


2022


Change (%)

Non-interest income:






Origination fees

$       279,146


$        499,179


(44) %

Servicing fees

98,613


80,609


22 %

Gain on sales of loans

47,839


95,335


(50) %

Net fair value adjustments

(134,114)


8,503


N/M

Marketplace revenue

291,484


683,626


(57) %

Other non-interest income

11,297


28,765


(61) %

Total non-interest income

302,781


712,391


(57) %







Total interest income

832,630


557,340


49 %

Total interest expense

270,792


82,515


228 %

Net interest income

561,838


474,825


18 %







Total net revenue

864,619


1,187,216


(27) %







Provision for credit losses

243,565


267,326


(9) %







Non-interest expense:






Compensation and benefits

261,948


339,397


(23) %

Marketing

93,840


197,747


(53) %

Equipment and software

53,485


49,198


9 %

Depreciation and amortization

47,195


43,831


8 %

Professional services

35,173


50,516


(30) %

Occupancy

17,532


21,977


(20) %

Other non-interest expense

57,264


64,187


(11) %

Total non-interest expense

566,437


766,853


(26) %







Income before income tax benefit (expense)

54,617


153,037


(64) %

Income tax benefit (expense)

(15,678)


136,648


(111) %

Net income

$         38,939


$        289,685


(87) %







Net income per share: 






Basic EPS

$             0.36


$              2.80


(87) %

Diluted EPS

$             0.36


$              2.79


(87) %

Weighted-average common shares – Basic

108,466,179


103,547,305


5 %

Weighted-average common shares – Diluted

108,468,857


104,001,288


4 %

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





Consolidated LendingClub Corporation (1)


Three Months Ended

December 31, 2023


Three Months Ended

September 30, 2023


Three Months Ended

December 31, 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

$ 1,190,539


$  16,271


5.47 %


$ 1,249,087


$   16,798


5.38 %


$ 1,139,887


$  10,595


3.72 %

Securities available for sale at fair value

1,197,625


20,920


6.99 %


601,512


9,467


6.30 %


349,512


3,359


3.84 %

Loans held for sale at fair value

501,850


15,883


12.66 %


286,111


9,582


13.40 %


114,851


5,724


19.93 %

Loans and leases held for investment:


















Unsecured personal loans

3,890,041


128,190


13.18 %


4,257,360


142,118


13.35 %


3,825,808


125,872


13.16 %

Commercial and other consumer loans

1,126,010


17,033


6.05 %


1,147,130


16,842


5.87 %


1,164,326


15,197


5.22 %

Loans and leases held for investment at amortized cost

5,016,051


145,223


11.58 %


5,404,490


158,960


11.76 %


4,990,134


141,069


11.31 %

Loans held for investment at fair value

292,101


9,494


13.00 %


362,837


11,788


13.00 %


308,570


10,862


14.08 %

Total loans and leases held for investment

5,308,152


154,717


11.66 %


5,767,327


170,748


11.84 %


5,298,704


151,931


11.47 %

Retail and certificate loans held for investment at fair value

14,535


528


14.54 %


22,311


817


14.65 %


66,469


2,390


14.38 %

Total interest-earning assets

8,212,701


208,319


10.15 %


7,926,348


207,412


10.47 %


6,969,423


173,999


9.99 %



















Cash and due from banks and restricted cash

63,181






69,442






64,907





Allowance for loan and lease losses

(334,711)






(354,263)






(314,861)





Other non-interest earning assets

659,995






691,641






613,664





Total assets

$ 8,601,166






$ 8,333,168






$ 7,333,133























Interest-bearing liabilities


















Interest-bearing deposits:


















Checking and money market accounts

$ 1,081,875


$    9,593


3.52 %


$ 1,271,720


$     9,541


2.98 %


$ 1,929,260


$    7,500


1.54 %

Savings accounts and certificates of deposit

5,720,058


66,660


4.62 %


5,357,717


59,968


4.44 %


3,576,205


28,251


3.13 %

Interest-bearing deposits

6,801,933


76,253


4.45 %


6,629,437


69,509


4.16 %


5,505,465


35,751


2.58 %

Retail notes and certificates

14,535


528


14.54 %


22,311


817


14.65 %


66,469


2,390


14.38 %

Other interest-bearing liabilities

9,645


61


2.51 %


13,567


81


2.42 %


105,834


615


2.33 %

Total interest-bearing liabilities

6,826,113


76,842


4.47 %


6,665,315


70,407


4.19 %


5,677,768


38,756


2.71 %



















Non-interest bearing deposits

314,822






183,728






251,686





Other liabilities

238,806






271,118






266,558





Total liabilities

$ 7,379,741






$ 7,120,161






$ 6,196,012























Total equity

$ 1,221,425






$ 1,213,007






$ 1,137,121





Total liabilities and equity

$ 8,601,166






$ 8,333,168






$ 7,333,133























Interest rate spread





5.68 %






6.28 %






7.28 %



















Net interest income and net interest margin



$  131,477


6.40 %




$ 137,005


6.91 %




$  135,243


7.76 %

(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)





December 31,
2023


December 31,
2022

Assets




Cash and due from banks

$            14,993


$         23,125

Interest-bearing deposits in banks

1,237,511


1,033,905

Total cash and cash equivalents

1,252,504


1,057,030

Restricted cash

41,644


67,454

Securities available for sale at fair value ($1,663,990 and $399,668 at amortized cost, respectively)

1,620,262


345,702

Loans held for sale at fair value

407,773


110,400

Loans and leases held for investment

4,850,302


5,033,154

Allowance for loan and lease losses

(310,387)


(327,852)

Loans and leases held for investment, net

4,539,915


4,705,302

Loans held for investment at fair value

262,190


925,938

Retail and certificate loans held for investment at fair value

10,488


55,425

Property, equipment and software, net

161,517


136,473

Goodwill

75,717


75,717

Other assets

455,453


500,306

Total assets

$        8,827,463


$     7,979,747

Liabilities and Equity




Deposits:




Interest-bearing

$        7,001,680


$     6,158,560

Noninterest-bearing

331,806


233,993

Total deposits

7,333,486


6,392,553

Borrowings

8,866


74,858

Retail notes and certificates at fair value

10,488


55,425

Other liabilities

222,801


292,617

Total liabilities

7,575,641


6,815,453

Equity




Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively

1,104


1,065

Additional paid-in capital

1,669,828


1,628,590

Accumulated deficit

(388,806)


(427,745)

Accumulated other comprehensive loss

(30,304)


(37,616)

Total equity

1,251,822


1,164,294

Total liabilities and equity

$        8,827,463


$     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


For the year ended


December 31,
2023


September 30,

2023


June 30,

2023


March 31,

2023


December 31,
2022


December 31,

2023


December 31,

2022

GAAP Net income

$          10,155


$             5,008


$      10,110


$       13,666


$          23,591


$          38,939


$        289,685

Less: Provision for credit losses

(41,907)


(64,479)


(66,595)


(70,584)


(61,512)


(243,565)


(267,326)

Less: Income tax benefit (expense)

(3,529)


(3,327)


(4,686)


(4,136)


2,439


(15,678)


136,648

Pre-provision net revenue

$          55,591


$           72,814


$      81,391


$       88,386


$          82,664


$        298,182


$        420,363


For the three months ended


For the year ended



December 31,
2023


September 30,

2023


June 30,

2023


March 31,

2023


December 31,
2022


December 31,

2023


December 31,

2022

Non-interest income

$          54,129


$           63,844


$     85,818


$       98,990


$        127,465


$        302,781


$        712,391

Net interest income

131,477


137,005


146,652


146,704


135,243


561,838


474,825

Total net revenue

185,606


200,849


232,470


245,694


262,708


864,619


1,187,216

Non-interest expense

(130,015)


(128,035)


(151,079)


(157,308)


(180,044)


(566,437)


(766,853)

Pre-provision net revenue

55,591


72,814


81,391


88,386


82,664


298,182


420,363

Provision for credit losses

(41,907)


(64,479)


(66,595)


(70,584)


(61,512)


(243,565)


(267,326)

Income before income tax benefit (expense)

13,684


8,335


14,796


17,802


21,152


54,617


153,037

Income tax benefit (expense)

(3,529)


(3,327)


(4,686)


(4,136)


2,439


(15,678)


136,648

GAAP Net income

$          10,155


$             5,008


$     10,110


$       13,666


$          23,591


$          38,939


$        289,685

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



For the three months ended
December 31, 2022


For the year ended

December 31, 2022

GAAP Net income

$                                       23,591


$                      289,685

Less: Income tax benefit from release of tax valuation allowance

3,180


143,495

Net income excluding income tax benefit

$                                       20,411


$                      146,190






GAAP Diluted EPS

$                                           0.22


$                            2.79






(A)

Income tax benefit from release of tax valuation allowance

$                                         3,180


$                      143,495

(B)

Weighted-average common shares – Diluted

105,984,612


104,001,288

(A/B)

Diluted EPS impact of income tax benefit

$                                           0.03


$                            1.38






Diluted EPS excluding income tax benefit

$                                           0.19


$                            1.41

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



December 31,
2023


September 30,

2023


June 30,

2023


March 31,

2023


December 31,
2022

GAAP common equity

$       1,251,822


$        1,208,219


$    1,205,523


$    1,190,742


$      1,164,294

Less: Goodwill

(75,717)


(75,717)


(75,717)


(75,717)


(75,717)

Less: Intangible assets

(12,135)


(13,151)


(14,167)


(15,201)


(16,334)

Tangible common equity

$       1,163,970


$        1,119,351


$    1,115,639


$    1,099,824


$      1,072,243











Book value per common share










GAAP common equity

$       1,251,822


$        1,208,219


$    1,205,523


$    1,190,742


$      1,164,294

Common shares issued and outstanding

110,410,602


109,648,769


108,694,120


107,460,734


106,546,995

Book value per common share

$              11.34


$               11.02


$           11.09


$           11.08


$             10.93











Tangible book value per common share










Tangible common equity

$       1,163,970


$        1,119,351


$    1,115,639


$    1,099,824


$      1,072,243

Common shares issued and outstanding

110,410,602


109,648,769


108,694,120


107,460,734


106,546,995

Tangible book value per common share

$              10.54


$               10.21


$           10.26


$           10.23


$             10.06

SOURCE LendingClub Corporation

Originally published at https://www.prnewswire.com/news-releases/lendingclub-reports-fourth-quarter-and-full-year-2023-results-302048436.html
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