Company Announcements

LendingClub Reports Second Quarter 2021 Results

SAN FRANCISCO, July 28, 2021 /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, 2021.

"Our first full quarter operating a digital bank was the most profitable quarter in LendingClub's history," said Scott Sanborn, LendingClub's CEO. "This is the beginning of a dramatically enhanced earnings trajectory for the business. Our transformation is fueled by our competitive advantages, which include our 3.5 million-plus members, deep data capabilities, marketplace model as well as our more efficient operating platform. Our earnings are being bolstered by our bank, which is generating a new stream of recurring net interest income that is only beginning to contribute to our bottom line results."

Strong Revenue Growth and Accelerated Return to Profitability Reflects Effective Execution on Strategic Priorities.

  • Total sequential revenue growth of 93%, reflecting growth in marketplace revenue and increased net interest income from the retained portfolio of consumer loans.
    • Marketplace revenue grew 86% sequentially, primarily reflecting 105% growth in origination fees and a 132% increase in gains on loan sales as loans sold through the marketplace doubled.
    • Net interest income grew 148% sequentially to $45.9 million, as the bank's loan portfolio (excluding PPP loans) grew 27% sequentially, propelled by growth in the consumer loan portfolio of 145% to $795M.
    • Deposits grew to $2.5 billion, helping fund growth in the bank's loan portfolio.
  • Sequential origination growth of 84% as we returned to market leadership and leveraged our expanded predictive science and credit decisioning capabilities, which drove a substantial increase in our end-to-end application conversion rate.
  • Strong revenue growth and positive operating leverage drove record earnings and an accelerated return to profitability.
  • Consolidated net income of $9.4 million included $56.7 million of notable items: $34.6 million of Current Expected Credit Loss (CECL) provisioning which reduced reported earnings and reflects rapid growth in the bank's loan portfolio, $19.6 million of net revenue deferrals on retained loans, and $2.5 million of non-recurring expenses.
  • Entered into a settlement agreement with the Federal Trade Commission (FTC), which concludes the agency's previously disclosed investigation and litigation. Pursuant to the terms of the settlement, LendingClub will make an $18 million payment for consumer remediation, an amount already accrued for in prior periods.

Three Months Ended  


($ in millions)

June 30,
2021


March 31,
2021


QoQ
Change


Loan originations(1)

$

2,722.4



$

1,483.2



$

1,239.2



Total revenue

$

204.4



$

105.8



$

98.6



Consolidated net income (loss)

$

9.4



$

(47.1)



$

56.5





(1)    

Includes unsecured personal loans, auto loans, and education and patient finance loans only.

 

Financial Outlook – Raising Full Year Targets




(millions)

Third Quarter

2021

Full Year

2021

Versus Prior

Full Year 2021 Guidance


Loan originations(1)

$2.8B to $3.0B

$9.8B to $10.2B

+$2.9B to +$3.0B


Total revenue

$215M to $230M

$750M to $780M

+$240M to +$250M


Consolidated net income
(loss)

$10M to $15M

($13M) to ($3M)

+$139M to +$154M




(1)  

Includes unsecured personal loans, auto loans, and education and patient finance loans only.

 

Items Impacting Q2'21 Consolidated Net Income




(millions)

Consolidated Net
Income Impact

Per

Diluted Share
Impact

Commentary


Revenue deferrals, net of amortization

$(19.6)

$0.19

Revenue deferrals, net of deferred costs
and amortization during the period


Provision for credit losses

$(34.6)

$0.34

Primarily for consumer loans originated
and retained in the quarter


Non-recurring expenses

$(2.5)

$0.02

Non-recurring expenses primarily related
to the acquisition of Radius Bank


Total

$(56.7)

$0.56



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 US. Members can gain access to a broad range of financial products and services through a technology-driven platform, designed to help them pay less when borrowing and earn more when saving. Since 2007, more than 3 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 2021 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, July 28, 2021. 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 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 4824215, 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 4, 2021, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 10158362. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), Twitter handle (@LendingClub) 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

Safe Harbor Statement
Some of the statements above, including statements regarding the benefits of our bank acquisition, 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 customers; competition; overall economic conditions; the regulatory environment, demand for the types of loans facilitated by us; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, each as filed with the Securities and Exchange Commission, as well as our subsequent reports on Form 10-Q and 10-K each as filed 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)




The information in the following tables is presented for the consolidated LendingClub Corporation, unless specifically noted for LendingClub Bank,
the company's wholly-owned subsidiary:





As of and for the three months ended


% Change



June 30,
2021


March 31,
2021


December 31,

2020


September 30,

2020


June 30,
2020


Q/Q


Y/Y


Operating Highlights:


Noninterest income

$

158,476



$

87,334



$

72,597



$

57,750



$

21,421



81

%


640

%


Net interest income

$

45,905



$

18,506



$

2,899



$

13,294



18,937



148

%


142

%


Total net revenue (1)

$

204,381



$

105,840



$

75,496



$

71,044



$

40,358



93

%


406

%

















Consolidated net income (loss)

$

9,371



$

(47,084)



$

(26,655)



$

(34,325)



$

(78,471)



N/M


N/M

















EPS – basic

$

0.10



$

(0.49)



$

(0.29)



$

(0.38)



$

(0.87)



N/M


N/M


EPS – diluted

$

0.09



$

(0.49)



$

(0.29)



$

(0.38)



$

(0.87)



N/M


N/M


LendingClub Bank net interest margin

5.51

%


3.33

%


N/A      


N/A      


N/A      






Servicing portfolio AUM






















(in millions) (2)

$

10,741


$

10,271


$

11,002


$

12,267


$

13,962


5

%


(23)

%

















Loan originations (in millions) (3):















Marketplace loans

$

2,182



$

1,139



$

912



$

584



$

326



92

%


569

%


Loan originations held for investment

$

541



$

344



$



$



$



57

%


N/M


Total loan originations

$

2,722



$

1,483



$

912



$

584



$

326



84

%


735

%

















Balance Sheet Data:


Loans and leases held for investment,
net, excluding PPP loans

$

1,791,492



$

1,414,900



$



$



$



27

%


N/M


PPP loans

$

507,553



$

664,400



$



$



$



(24)

%


N/M


Total loans and leases held for investment, net

$

2,299,045



$

2,079,300



$



$



$



11

%


N/M


Total assets

$

4,370,101



$

4,491,089



$

1,863,293



$

1,979,457



$

2,452,599



(3)

%


78

%


Total deposits

$

2,539,704



$

2,373,437



$



$



$



7

%


N/M


Total liabilities

$

3,607,742



$

3,757,954



$

1,139,122



$

1,245,565



$

1,706,457



(4)

%


111

%


Total equity

$

762,359



$

733,135



$

724,171



$

733,892



$

746,142



4

%


2

%

















Asset Quality Ratios:


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

3.00

%


1.71

%


N/A


N/A


N/A























Allowance for loan and lease losses
to loans and leases held for
investment, excluding PPP loans

3.82

%


2.49

%


N/A


N/A


N/A























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

417.78

%


302.69

%


N/A


N/A


N/A























Nonaccruing loans and leases to
loans and leases held for
investment

0.72

%


0.56

%


N/A


N/A


N/A























Nonaccruing loans and leases to
loans and leases held for
investment, excluding PPP loans

0.91

%


0.82

%


N/A


N/A


N/A





















LendingClub Bank Capital Ratios:


Common Equity Tier 1 Capital Ratio

18.7

%


20.9

%


N/A


N/A


N/A






Tier 1 Leverage Ratio

13.5

%


12.9

%


N/A


N/A


N/A






N/M – Not meaningful

N/A – Not applicable

(1)  

Prior period total net revenue balances have been recast related to credit valuation adjustments on securities available for sale being reclassified from net fair value
adjustments to provision for credit losses.

(2)   

Includes unsecured personal loans and auto loans only.

(3)  

Includes unsecured personal loans, auto loans, and education and patient finance loans only.


 

LENDINGCLUB CORPORATION


LOANS AND LEASES HELD FOR INVESTMENT


(In thousands, except percentages or as noted)


(Unaudited)





June 30, 2021


March 31, 2021


Unsecured personal

$

776,338



$

321,104



Residential mortgages

152,528



164,002



Secured consumer

326,318



387,244



Other consumer

157



34



Total consumer loans held for investment

1,255,341



872,384



Equipment finance (1)

161,465



145,885



Commercial real estate

294,954



302,445



Commercial and industrial (2)

658,366



794,718



Total commercial loans and leases held for investment

1,114,785



1,243,048



Total loans and leases held for investment

2,370,126



2,115,432



Allowance for loan and lease losses

(71,081)



(36,132)



Loans and leases held for investment, net

$

2,299,045



$

2,079,300



(1)    

Comprised of sales-type leases for equipment.

(2)      

Includes $507.6 million of Paycheck Protection Program (PPP) loans. The Company determined no allowance for expected credit losses is
needed on these loans.

 

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands, except percentages or as noted)

(Unaudited)



Three Months Ended


June 30, 2021


March 31, 2021


Consumer


Commercial


Total


Consumer


Commercial


Total

Allowance for loan and lease
losses, beginning of period

$

19,785



$

16,347



$

36,132



$



$



$


Credit loss expense for loans
and leases held for investment

34,317



659



34,976



19,182



4,371



23,553




















Initial allowance for PCD loans
acquired during the period







603



11,837



12,440


Charge-offs

(90)



(156)



(246)








Recoveries

46



173



219





139



139


Allowance for loan and lease
losses, end of period

$

54,058



$

17,023



$

71,081



$

19,785



$

16,347



$

36,132


 

 

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



Three Months Ended





June 30,


March 31,





2021


2021


Change (%)


Non-interest income:







Marketplace revenue (1)

$

151,735



$

81,727



86

%


Other non-interest income

6,741



5,607



20

%


Total non-interest income

158,476



87,334



81

%









Interest income:







Interest on loans held for sale

8,694



5,157



69

%


Interest and fees on loans and leases held for investment

39,068



15,301



155

%


Interest on retail and certificate loans held for investment at fair value

16,014



20,262



(21)

%


Interest on other loans held for investment at fair value

1,222



1,479



(17)

%


Interest on securities available for sale

2,539



2,235



14

%


Other interest income

190



156



22

%


Total interest income

67,727



44,590



52

%









Interest expense:







Interest on deposits

1,699



1,014



68

%


Interest on short-term borrowings

1,003



1,264



(21)

%


Interest on retail notes, certificates and secured borrowings

16,014



20,262



(21)

%


Interest on Structured Program borrowings

2,668



3,208



(17)

%


Interest on other long-term debt

438



336



30

%


Total interest expense

21,822



26,084



(16)

%









Net interest income

45,905



18,506



148

%









Total net revenue

204,381



105,840



93

%









Provision for credit losses

34,634



21,493



61

%









Non-interest expense:







Compensation and benefits

71,925



64,420



12

%


Marketing

35,107



19,545



80

%


Equipment and software

9,281



7,893



18

%


Occupancy

6,157



6,900



(11)

%


Depreciation and amortization

11,508



11,766



(2)

%


Professional services

11,520



11,603



(1)

%


Other non-interest expense

14,641



12,125



21

%


Total non-interest expense

160,139



134,252



19

%









Income (Loss) before income tax expense

9,608



(49,905)



N/M


Income tax expense (benefit)

237



(2,821)



N/M


Consolidated net income (loss)

$

9,371



$

(47,084)



N/M









Net income (loss) per share attributable to common stockholders – Basic

$

0.10



$

(0.49)





Net income (loss) per share attributable to common stockholders – Diluted

$

0.09



$

(0.49)





Weighted-average common shares – Basic

97,785,089



92,666,169





Weighted-average common shares – Diluted

102,031,088



92,666,169





Net income (loss) per share attributable to preferred stockholders – Basic
and Diluted

$



$

(0.49)





Weighted-average common shares, as converted – Basic and Diluted



2,648,758





N/M

– Not meaningful

(1)

Marketplace revenue consists of the following:


Three Months Ended





June 30,
2021


March 31,
2021


Change (%)


Origination fees

$

113,802



$

55,559



105

%


Servicing fees

22,714



23,166



(2)

%


Gain on sales of loans

19,317



8,323



132

%


Net fair value adjustments

(4,098)



(5,321)



(23)

%


Total marketplace revenue

$

151,735



$

81,727



86

%


 

LENDINGCLUB CORPORATION


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT


(In thousands, except share and per share data)


(Unaudited)



Three Months Ended June 30, 2021



LendingClub

Corporation

(Parent only)


LendingClub

Bank


Intercompany

Eliminations


Total


Non-interest income:


Marketplace revenue

$

23,021



$

128,714



$



$

151,735



Other non-interest income

4,281



28,340



(25,880)



6,741



Total non-interest income

27,302



157,054



(25,880)



158,476












Interest income:









Interest income

22,402



45,325





67,727



Interest expense

(19,850)



(1,972)





(21,822)



Net interest income

2,552



43,353





45,905












Total net revenue

29,854



200,407



(25,880)



204,381












Reversal of (provision for) credit losses

322



(34,956)





(34,634)



Non-interest expense

(47,837)



(138,182)



25,880



(160,139)



Income (Loss) before income tax benefit
(expense)

(17,661)



27,269





9,608



Income tax benefit (expense)

8,922



12,513



(21,672)



(237)



Consolidated net income (loss)

$

(8,739)



$

39,782



$

(21,672)



$

9,371



 


Three Months Ended March 31, 2021



LendingClub

Corporation

(Parent only)


LendingClub

Bank (1)


Intercompany

Eliminations


Total


Non-interest income:


Marketplace revenue

$

45,665



$

36,062



$



$

81,727



Other non-interest income

4,098



19,700



(18,191)



5,607



Total non-interest income

49,763



55,762



(18,191)



87,334












Interest income:









Interest income

27,092



17,498





44,590



Interest expense

(24,837)



(1,247)





(26,084)



Net interest income

2,255



16,251





18,506












Total net revenue

52,018



72,013



(18,191)



105,840












Reversal of (provision for) credit losses

2,470



(23,963)





(21,493)



Non-interest expense

(76,944)



(75,499)



18,191



(134,252)



Loss before income tax benefit

(22,456)



(27,449)





(49,905)



Income tax benefit

2,292



23



506



2,821



Consolidated net loss

$

(20,164)



$

(27,426)



$

506



$

(47,084)



(1)   

For the two month period from February 1, 2021 through March 31, 2021, for LendingClub Bank.

 


LENDINGCLUB BANK
NET INTEREST INCOME

(In thousands, except percentages or as noted)
(Unaudited)



LendingClub Bank



Three Months Ended

June 30, 2021


Two Months Ended

March 31, 2021 (1)



Average
Balance


Interest Income/
Expense


Average Yield/
Rate


Average
Balance


Interest Income/
Expense


Average Yield/
Rate


Interest-earning assets (2)













Cash, cash equivalents and restricted cash

$

551,895



$

186



0.13

%


$

737,555



$

138



0.11

%


Securities available for sale at fair value

165,579



348



0.84

%


232,001



444



1.15

%


Loans held for sale

144,037



5,723



15.89

%


64,720



1,615



14.97

%


Loans and leases held for investment:













Unsecured personal loans

511,787



19,499



15.24

%


146,925



3,392



13.85

%


Secured consumer loans

532,426



5,173



3.89

%


521,399



3,215



3.70

%


Commercial loans and leases

623,735



9,062



5.81

%


605,495



5,119



5.07

%


PPP loans

615,942



5,334



3.46

%


621,292



3,575



3.45

%


Loans and leases held for investment

2,283,890



39,068



6.84

%


1,895,111



15,301



4.84

%


Total interest-earning assets

3,145,401



45,325



5.76

%


2,929,387



17,498



3.58

%















Cash and due from banks

34,612







42,683







Allowance for loan and lease losses

(51,109)







(30,357)







Other non-interest earning assets

221,870







187,785







Total assets

$

3,350,774







$

3,129,498




















Interest-bearing liabilities













Interest-bearing deposits













Checking and money market accounts

$

2,071,112



$

1,618



0.31

%


$

1,735,274



$

913



0.33

%


Savings accounts and certificates of deposit

301,939



81



0.11

%


323,800



101



0.19

%


Interest-bearing deposits

2,373,051



1,699



0.29

%


2,059,074



1,014



0.30

%


Short-term borrowings

2,138



1



0.06

%


1,829



0.3



0.09

%


Advances from PPPLF

312,168



272



0.35

%


405,989



233



0.35

%


Other long-term debt

708





%


2,834





%


Total interest-bearing liabilities

2,688,065



1,972



0.29

%


2,469,726



1,247



0.31

%















Non-interest bearing deposits

102,709







156,034







Other liabilities

100,835







68,510







Total liabilities

$

2,891,609







$

2,694,270







Total equity

$

459,165







$

435,228







Total liabilities and equity

$

3,350,774







$

3,129,498




















Interest rate spread





5.47

%






3.27

%















Net interest income and net interest margin



$

43,353



5.51

%




$

16,251



3.33

%




(1)   

Prior period amounts have been reclassified to include non-interest earning assets, non-interest bearing liabilities and equity to conform to current
period presentation.

(2)  

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

 

 

LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)

(In thousands, except percentages or as noted)
(Unaudited)



Three Months Ended June 30, 2021



LendingClub Bank


LendingClub Corporation

(Parent only)


Consolidated

LendingClub Corporation (1)



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
and restricted cash

$

551,895



$

186



0.13

%


$

99,419



$

4



0.02

%


$

642,182



$

190



0.12

%


Securities available for
sale at fair value

165,579



348



0.84

%


108,377



2,191



8.09

%


273,956



2,539



3.71

%


Loans held for sale

144,037



5,723



15.89

%


99,408



2,971



11.96

%


243,445



8,694



14.29

%


Loans and leases held for
investment:



















Unsecured personal
loans

511,787



19,499



15.24

%






%


511,787



19,499



15.24

%


Secured consumer
loans

532,426



5,173



3.89

%






%


532,426



5,173



3.89

%


Commercial loans and
leases

623,735



9,062



5.81

%






%


623,735



9,062



5.81

%


PPP loans

615,942



5,334



3.46

%






%


615,942



5,334



3.46

%


Loans and leases held for
investment

2,283,890



39,068



6.84

%






%


2,283,890



39,068



6.84

%


Retail and certificate
loans held for
investment at fair
value





%


448,822



16,014



14.27

%


448,822



16,014



14.27

%


Other loans held for
investment at fair
value





%


38,662



1,222



12.64

%


38,662



1,222



12.64

%


Total interest-earning
assets

3,145,401



45,325



5.76

%


794,688



22,402



11.28

%


3,930,957



67,727



6.89

%





















Cash and due from banks
and restricted cash

34,612







111,274







144,897







Allowance for loan
and lease losses

(51,109)













(51,109)







Other non-interest
earning assets

221,870







749,674







447,826







Total assets

$

3,350,774







$

1,655,636







$

4,472,571


























Interest-bearing
liabilities



















Interest-bearing
deposits:



















Checking and money
market accounts

$

2,071,112



$

1,618



0.31

%


$



$



%


$

2,071,112



$

1,618



0.31

%


Savings accounts and
certificates of deposit

301,939



81



0.11

%






%


301,939



81



0.11

%


Interest-bearing deposits

2,373,051



1,699



0.29

%






%


2,373,051



1,699



0.29

%


Short-term borrowings

2,138



1



0.06

%


77,373



1,002



5.19

%


79,511



1,003



5.05

%


Advances from PPPLF

312,168



272



0.35

%






%


312,168



272



0.35

%


Retail notes, certificates
and secured
borrowings





%


449,057



16,014



14.27

%


449,057



16,014



14.27

%


Structured Program
borrowings





%


121,738



2,668



8.77

%


121,738



2,668



8.77

%


Other long-term debt

708





%


15,696



166



4.22

%


16,404



166



4.04

%


Total interest-bearing
liabilities

2,688,065



1,972



0.29

%


663,864



19,850



11.96

%


3,351,929



21,822



2.61

%





















Non-interest bearing
deposits

102,709













92,588







Other liabilities

100,835







225,521







276,723







Total liabilities

$

2,891,609







$

889,385







$

3,721,240


























Total equity

$

459,165







$

766,251







$

751,331







Total liabilities and
equity

$

3,350,774







$

1,655,636







$

4,472,571


























Interest rate spread





5.47

%






(0.68)

%






4.29

%





















Net interest income and
net interest margin



$

43,353



5.51

%




$

2,552



1.28

%




$

45,905



4.67

%


(1)   

Consolidated presentation reflects intercompany eliminations.

(2)   

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

 

 


LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)

(In thousands, except percentages or as noted)
(Unaudited)


Three Months Ended March 31, 2021(1)(2)



LendingClub Bank


LendingClub Corporation

(Parent only)


Consolidated

LendingClub Corporation (3)



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 (4)



















Cash, cash equivalents
and restricted cash

$

737,555



$

138



0.11

%


$

216,698



$

18



0.03

%


$

918,148



$

156



0.10

%


Securities available for
sale at fair value

232,001



444



1.15

%


130,620



1,791



5.48

%


362,621



2,235



2.71

%


Loans held for sale

64,720



1,615



14.97

%


133,872



3,542



10.58

%


198,592



5,157



12.01

%


Loans and leases held for
investment:



















Unsecured personal
loans

146,925



3,392



13.85

%






%


146,925



3,392



13.85

%


Secured consumer
loans

521,399



3,215



3.70

%






%


521,399



3,215



3.70

%


Commercial loans and
leases

605,495



5,119



5.07

%






%


605,495



5,119



5.07

%


PPP loans

621,292



3,575



3.45

%






%


621,292



3,575



3.45

%


Loans and leases held for
investment

1,895,111



15,301



4.84

%






%


1,895,111



15,301



4.84

%


Retail and certificate
loans held for
investment at fair
value





%


574,158



20,262



14.12

%


574,158



20,262



14.12

%


Other loans held for
investment at fair
value





%


46,212



1,479



12.80

%


46,212



1,479



12.80

%


Total interest-earning
assets

2,929,387



17,498



3.58

%


1,101,560



27,092



9.84

%


3,994,842



44,590



5.34

%





















Cash and due from banks
and restricted cash

42,683







95,190







137,216







Allowance for loan and
lease losses

(30,357)













(30,357)







Other non-interest
earning assets

187,785







618,194







326,040







Total assets

$

3,129,498







$

1,814,944







$

4,427,741


























Interest-bearing
liabilities



















Interest-bearing
deposits:



















Checking and money
market accounts

$

1,735,274



$

913



0.33

%


$



$



%


$

1,735,274



$

913



0.33

%


Savings accounts and
certificates of deposit

323,800



101



0.19

%






%


323,800



101



0.19

%


Interest-bearing deposits

2,059,074



1,014



0.30

%






%


2,059,074



1,014



0.30

%


Short-term borrowings

1,829



0.3



0.09

%


96,989



1,264



5.21

%


98,818



1,264



5.12

%


Advances from PPPLF

405,989



233



0.35

%






%


405,989



233



0.35

%


Retail notes, certificates
and secured
borrowings





%


574,192



20,262



14.12

%


574,192



20,262



14.12

%


Structured Program
borrowings





%


143,045



3,208



8.97

%


143,045



3,208



8.97

%


Other long-term debt

2,834





%


15,771



103



2.61

%


18,605



103



2.21

%


Total interest-bearing
liabilities

2,469,726



1,247



0.31

%


829,997



24,837



11.97

%


3,299,723



26,084



3.24

%





















Non-interest bearing
deposits

156,034













119,272







Other liabilities

68,510







245,177







286,907







Total liabilities

$

2,694,270







$

1,075,174







$

3,705,902


























Total equity

$

435,228







$

739,770







$

721,839







Total liabilities and
equity

$

3,129,498







$

1,814,944







$

4,427,741


























Interest rate spread





3.27

%






(2.13)

%






2.11

%





















Net interest income and
net interest margin



$

16,251



3.33

%




$

2,255



0.82

%




$

18,506



2.67

%


(1)    

For the two month period from February 1, 2021 through March 31, 2021, for LendingClub Bank.

(2)   

Prior period amounts have been reclassified to include non-interest earning assets, non-interest bearing liabilities and equity to conform to current
period presentation.

(3)   

Consolidated presentation reflects intercompany eliminations.

(4)   

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

 

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)



June 30,
2021


December 31,
2020

Assets




Cash and due from banks

$

55,773



$

5,197


Interest-bearing deposits in banks

512,873



519,766


Total cash and cash equivalents

568,646



524,963


Restricted cash

123,896



103,522


Securities available for sale at fair value (includes $272,869 and $159,164 at amortized
cost, respectively)

277,505



142,226


Loans held for sale (includes $180,061 and $121,902 at fair value, respectively)

226,328



121,902


Loans and leases held for investment

2,370,126




Allowance for loan and lease losses

(71,081)




Loans and leases held for investment, net

2,299,045




Retail and certificate loans held for investment at fair value

391,362



636,686


Other loans held for investment at fair value

34,523



49,954


Property, equipment and software, net

94,676



96,641


Goodwill

75,717




Other assets

278,403



187,399


Total assets

$

4,370,101



$

1,863,293


Liabilities and Equity




Deposits:




Interest-bearing

$

2,445,518



$


Noninterest-bearing

94,186




Total deposits

2,539,704




Short-term borrowings

68,781



104,989


Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

195,481



370,086


Retail notes, certificates and secured borrowings at fair value

391,384



507,203


Payable on Structured Program borrowings

110,871



133,499


Other long-term debt

15,650




Other liabilities

285,871



244,551


Total liabilities

3,607,742



1,139,122


Equity




Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 and 43,000
shares issued and outstanding, respectively




Common stock, $0.01 par value; 180,000,000 shares authorized; 98,601,148 and
88,149,510 shares issued and outstanding, respectively

986



881


Additional paid-in capital 

1,580,518



1,508,020


Accumulated deficit

(823,927)



(786,214)


Treasury stock, at cost; 4,251 and 0 shares, respectively

(92)




Accumulated other comprehensive income

4,874



1,484


Total equity

762,359



724,171


Total liabilities and equity

$

4,370,101



$

1,863,293


 

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)



LendingClub

Corporation

(Parent only)


LendingClub

Bank


Intercompany

Eliminations


Total


June 30,
2021


December 31, 2020


June 30,
2021


December 31,
2020


June 30,

2021


December 31,
2020


June 30,

2021


December 31, 2020

Assets
















Total cash and cash
equivalents

$

72,458



$

524,963



$

493,915



$



$

2,273



$



$

568,646



$

524,963


Restricted cash

127,781



103,522







(3,885)





123,896



103,522


Securities available for sale
at fair value

95,378



142,226



182,127









277,505



142,226


Loans held for sale

92,509



121,902



133,819









226,328



121,902


Loans and leases held for
investment, net





2,299,045









2,299,045




Retail and certificate loans
held for investment at fair
value

391,362



636,686











391,362



636,686


Other loans held for
investment at fair value

34,523



49,954











34,523



49,954


Property, equipment and
software, net

78,288



96,641



16,388









94,676



96,641


Investment in subsidiary

483,696









(483,696)








Goodwill





75,717









75,717




Other assets

189,567



187,399



156,886





(68,050)





278,403



187,399


Total assets

1,565,562



1,863,293



3,357,897





(553,358)





4,370,101



1,863,293


Liabilities and Equity
















Total deposits





2,541,317





(1,613)





2,539,704




Short-term borrowings

68,460



104,989



321









68,781



104,989


Advances from PPPLF





195,481









195,481




Retail notes, certificates and
secured borrowings at fair
value

391,384



636,774











391,384



636,774


Payable on Structured

Program borrowings

110,871



152,808











110,871



152,808


Other long-term debt

15,650













15,650




Other liabilities

206,525



244,551



125,790





(46,444)





285,871



244,551


Total liabilities

792,890



1,139,122



2,862,909





(48,057)





3,607,742



1,139,122


Total equity

772,672



724,171



494,988





(505,301)





762,359



724,171


Total liabilities and
equity

$

1,565,562



$

1,863,293



$

3,357,897



$



$

(553,358)



$



$

4,370,101



$

1,863,293


 


 

LENDINGCLUB CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands)
(Unaudited)


The following table is provided to delineate between the assets and liabilities belonging to our member payment dependent self-directed retail
program (Retail Program) note holders and certain VIEs that we are required to consolidate in accordance with GAAP. Such assets are not legally
ours and the associated liabilities are payable only from the cash flows generated by those assets (i.e. Pass-throughs). As such, these debt holders
do not have a secured interest in any other assets of LendingClub. We believe this is a useful measure because it illustrates the overall financial
stability and operating leverage of the Company.



June 30, 2021


December 31, 2020


Retail Program (1)

Consolidated VIEs (2)(4)

All Other LendingClub (3)

Condensed Consolidated Balance Sheet


Retail Program (1)

Consolidated VIEs (2)(4)

All Other LendingClub (3)

Condensed Consolidated Balance Sheet

Assets










Total cash and cash
equivalents

$


$


$

568,646


$

568,646



$


$


$

524,963


$

524,963


Restricted cash


14,156


109,740


123,896




13,473


90,049


103,522


Securities available for sale at
fair value



277,505


277,505





142,226


142,226


Loans held for sale (4)


65,305


161,023


226,328




92,802


29,100


121,902


Loans and leases held for
investment, net



2,299,045


2,299,045







Retail and certificate loans
held for investment at fair
value

367,552


23,810



391,362



584,066


52,620



636,686


Other loans held for
investment at fair
value (4)


31,149


3,374


34,523




46,120


3,834


49,954


Property, equipment and
software, net



94,676


94,676





96,641


96,641


Goodwill



75,717


75,717







Other assets 

2,323


647


275,433


278,403



3,797


1,134


182,468


187,399


Total assets

$

369,875


$

135,067


$

3,865,159


$

4,370,101



$

587,863


$

206,149


$

1,069,281


$

1,863,293


Liabilities and Equity










Total deposits

$


$


$

2,539,704


$

2,539,704



$


$


$


$


Short-term borrowings



68,781


68,781





104,989


104,989


Advances from PPPLF



195,481


195,481







Retail notes, certificates and
secured borrowings at fair
value

367,552


23,810


22


391,384



584,066


52,620


88


636,774


Payable on Structured
Program borrowings (4)


110,871



110,871




152,808



152,808


Other long-term debt



15,650


15,650







Other liabilities

2,323


386


283,162


285,871



3,797


721


240,033


244,551


Total liabilities

369,875


135,067


3,102,800


3,607,742



587,863


206,149


345,110


1,139,122


Total equity



762,359


762,359





724,171


724,171


Total liabilities and
equity

$

369,875


$

135,067


$

3,865,159


$

4,370,101



$

587,863


$

206,149


$

1,069,281


$

1,863,293




(1)  

Represents loans held for investment at fair value that are funded directly by our Retail Program notes. The liabilities are only payable from the cash flows generated by the
associated assets. We do not assume principal or interest rate risk on loans facilitated through our lending marketplace that are funded by our Retail Program because loan
balances, interest rates and maturities are matched and offset by an equal balance of notes with the exact same interest rates and maturities. We do not retain any economic
interests from our Retail Program. Interest expense on Retail Program notes of $33.2 million and $53.8 million was equally matched and offset by interest income from the
related loans of $33.2 million and $53.8 million for the first halves of 2021 and 2020, respectively, resulting in no net effect on our net interest income.

(2)  

Represents assets and equal and offsetting liabilities of certain VIEs that we are required to consolidate in accordance with GAAP, but which are not legally ours. The liabilities
are only payable from the cash flows generated by the associated assets. The creditors of the VIEs have no recourse to the general credit of the Company. Interest expense on
these liabilities owned by third parties of $9.0 million and $20.6 million was equally matched and offset by interest income on the loans of $9.0 million and $20.6 million for the
first halves of 2021 and 2020, respectively, resulting in no net effect on our net interest income. Economic interests held by LendingClub, including retained interests, residuals
and equity of the VIEs, are reflected in "Loans held for sale," "Other loans held for investment at fair value" and "Restricted cash," respectively, within the "All Other
LendingClub" column.

(3)   

Represents all other assets and liabilities of LendingClub, other than those related to our Retail Program and certain consolidated VIEs, but includes any economic interests
held by LendingClub, including retained interests, residuals and equity of those consolidated VIEs.

(4)  

The Company has sponsored Structured Program transactions that have been consolidated, resulting in an increase to "Other loans held for investment at fair value," "Loans
held for sale" and the related "Payable on Structured Program borrowings."

 

 

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SOURCE LendingClub Corporation

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