Company Announcements

LendingClub Reports Second Quarter 2022 Results

Record Revenue of $330 million

Reported Net Income of $182 million Including Income Tax Benefit of $135 million

Record Net Income of $47 million Excluding Income Tax Benefit

SAN FRANCISCO , July 27, 2022 /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, 2022.

"Our strong execution, marketplace bank model, member and data advantages, and our continued focus on prudent underwriting have all contributed to an incredible first half of the year with records set for both revenue and profitability," said Scott Sanborn, LendingClub CEO. "Despite the more challenging economic backdrop and increased uncertainty, we are well positioned to navigate through this dynamic environment."

Record Second Quarter 2022 Results

  • Revenue of $330.1 million grew 61% year-over-year, driven by growth in net interest income and marketplace revenue.
    • Recurring stream of net interest income increased 153% year-over-year to $116.2 million.
      • LendingClub Bank's net interest margin expanded to 8.7% from 5.5% a year earlier, primarily reflecting growth in consumer loans which generate a higher yield.
      • Total loans held for investment (excluding PPP) grew 106% from June 30, 2021, reflecting growth in personal loan originations and an increase in originations retained in the held for investment portfolio. The percentage of originations held for investment increased to 27% from 20% a year earlier as the company reinvested earnings into loan retention to drive growth in recurring revenue.
    • Marketplace revenue of $206.4 million grew 36% year-over-year, reflecting growth in marketplace originations.
  • Deposits of $4.5 billion were up 78% from June 30, 2021, supporting growth in loans held for investment.
  • The efficiency ratio improved to 63% from 78% a year earlier as the company continued to manage expenses prudently while generating strong revenue growth.
  • LendingClub's credit quality remained better than the industry, with delinquency rates remaining below pre-pandemic levels. Credit quality of the company's held for investment personal loan portfolio also remained strong reflecting the prime credit profile of its borrowers with an average FICO of 730.
  • Provision for credit losses increased to $70.6 million from $34.6 million in the second quarter of 2021, primarily reflecting growth of 106% in loans held for investment (excluding PPP) from June 30, 2021.
  • Net income of $182.1 million increased $172.7 million year-over-year. Net income for the second quarter of 2022 included an income tax benefit of $132.0 million, reflecting the release of a $135.3 million valuation allowance against the company's deferred tax assets, partially offset by a $3.3 million state income tax expense, due to the company's business model transition and resulting increase in profitability and the expectation of continued profitability.
  • Net income excluding the income tax benefit was $46.8 million, up 399% year-over-year.
  • Total equity was up $316.7 million or 42% from June 30, 2021 primarily reflecting net income generated over the period and the release of a deferred tax asset valuation allowance.
  • Diluted earnings per share of $1.73 compared to earnings of $0.09 per share in the second quarter of 2021. Results in the second quarter of 2022 included an income tax benefit of $1.28 per share due to the release of a deferred tax asset valuation allowance.
  • The improvement in diluted earnings per share from a year earlier reflected revenue growth and increased operating efficiency, as well as the benefit from the release of the deferred tax asset valuation allowance.
  • Excluding the income tax benefit, diluted earnings per share of $0.45 was up 400% year-over-year.
  • Pre-tax, pre-provision income of $120.7 million increased 173% year-over-year, consistent with revenue growth and improved operating efficiency which drove growth in net income.

Three Months Ended

($ in millions)

June 30,
2022


March 31,
2022


June 30,
2021

Total net revenue

$           330.1


$            289.5


$           204.4

Non-interest expense

209.4


191.2


160.1

Pre-tax, pre-provision income

120.7


98.3


44.3

Provision for credit losses

70.6


52.5


34.6

Income before income tax benefit (expense)

50.1


45.8


9.6

Income tax benefit (expense)

132.0


(5.0)


(0.2)

Net income

$           182.1


$              40.8


$               9.4

Diluted EPS

$             1.73


$              0.39


$             0.09







Income tax benefit from release of tax valuation allowance

$           135.3


$                 —


$                —

Net income excluding income tax benefit (1)

$             46.8


$              40.8


$               9.4

Diluted EPS excluding income tax benefit (1)

$             0.45


$              0.39


$             0.09



(1)

Second quarter 2022 income tax benefit of $135.3 million due to the release of a deferred tax asset valuation allowance. See page 3 of this release for additional information on our use of Non-GAAP Financial Measures.

 

Financial Outlook

The company reaffirmed full year revenue and net income guidance for 2022 (excluding the income tax benefit from release of a deferred tax asset valuation allowance).

(millions)

Third Quarter

2022

Full Year

2022

Total revenue

$280M to $300M

$1.15B to $1.25B

Net income

$30M to $40M

$280M to $300M

Income tax benefit from release of tax valuation allowance

$135.3M

Net income excluding income tax benefit

$30M to $40M

$145M to $165M

 

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 $75 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 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 2022 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, July 27, 2022. 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 (844) 200-6205, or outside the U.S. +1 (929) 526-1599, with Access Code 696569, 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 3, 2022, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 945301. 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

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: Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit. Our non-GAAP 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 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 Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are important measures because they directly reflect the financial performance of our business operations. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in the second quarter of 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.

For a reconciliation of such measures to the nearest GAAP measure, please refer to the table on page 2 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 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 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)


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,
2022


March 31,
2022


December 31,

2021


September 30,

2021


June 30,
2021


Q/Q


Y/Y

Operating Highlights:

Non-interest income

$   213,832


$   189,857


$      179,111


$      180,878


$   158,476


13 %


35 %

Net interest income

116,226


99,680


83,132


65,288


45,905


17 %


153 %

Total net revenue

330,058


289,537


262,243


246,166


204,381


14 %


61 %

Non-interest expense

209,386


191,204


188,220


178,775


160,139


10 %


31 %

Pre-tax, pre-provision income

120,672


98,333


74,023


67,391


44,242


23 %


173 %

Provision for credit losses

70,566


52,509


45,149


37,524


34,634


34 %


104 %

Income before income tax benefit

50,106


45,824


28,874


29,867


9,608


9 %


422 %

Income tax benefit (expense)

131,954


(4,988)


234


(2,682)


(237)


N/M


N/M

Net income

182,060


40,836


29,108


27,185


9,371


N/M


N/M

Income tax benefit from release of tax valuation allowance

135,300






N/M


N/M

Net income excluding income tax benefit (1)

$     46,760


$     40,836


$        29,108


$        27,185


$       9,371


15 %


399 %















Basic EPS – common stockholders

$         1.77


$         0.40


$            0.29


$            0.27


$         0.10


N/M


N/M

Diluted EPS – common stockholders

$         1.73


$         0.39


$            0.27


$            0.26


$         0.09


N/M


N/M

Diluted EPS excluding income tax benefit (1)

$         0.45


$         0.39


$            0.27


$            0.26


$         0.09


15 %


400 %















LendingClub Bank Performance Metrics:

Net interest margin

8.7 %


8.6 %


8.3 %


7.1 %


5.5 %





Efficiency ratio (2)

60.5 %


63.6 %


69.5 %


67.5 %


69.0 %





Return on average equity (ROE)

21.5 %


22.5 %


21.7 %


26.5 %


34.7 %





Return on average total assets (ROA)

3.0 %


3.1 %


3.1 %


3.7 %


4.7 %



















LendingClub Bank Capital Ratios:

Common Equity Tier 1 Capital Ratio

16.7 %


16.0 %


16.7 %


18.0 %


18.7 %





Tier 1 Leverage Ratio

13.4 %


13.2 %


14.3 %


14.1 %


13.5 %



















Consolidated LendingClub Corporation Performance Metrics:

Net interest margin

8.5 %


8.3 %


7.6 %


6.3 %


4.7 %





Efficiency ratio (2)

63.4 %


66.0 %


71.8 %


72.6 %


78.4 %





Return on average equity (ROE)

33.8 %


18.7 %


14.1 %


13.8 %


5.0 %





Return on average total assets (ROA)

5.5 %


3.1 %


2.4 %


2.4 %


0.8 %





Marketing expense as a % of loan originations

1.6 %


1.7 %


1.7 %


1.6 %


1.3 %



















Loan originations (in millions) (3):














Total loan originations

$       3,840


$       3,217


$          3,069


$          3,107


$       2,722


19 %


41 %

Marketplace loans

$       2,819


$       2,360


$          2,308


$          2,471


$       2,182


19 %


29 %

Loan originations held for investment

$       1,021


$          856


$             761


$             636


$          541


19 %


89 %

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

27 %


27 %


25 %


20 %


20 %



















Servicing portfolio AUM (in millions) (4)

$      14,783


$      13,341


$          12,463


$          11,592


$      10,741


11 %


38 %















Balance Sheet Data:

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

$  3,692,667


$  3,049,325


$   2,486,440


$   2,235,698


$  1,791,492


21 %


106 %

PPP loans

$     118,794


$     184,986


$      268,297


$      367,558


$     507,553


(36) %


(77) %

Total loans and leases held for investment, net

$  3,811,461


$  3,234,311


$   2,754,737


$   2,603,256


$  2,299,045


18 %


66 %

Total assets

$  6,186,765


$  5,574,425


$   4,900,319


$   4,750,760


$  4,370,101


11 %


42 %

Total deposits

$  4,527,672


$  3,977,477


$   3,135,788


$   2,838,719


$  2,539,704


14 %


78 %

Total liabilities

$  5,107,648


$  4,686,991


$   4,050,077


$   3,945,970


$  3,607,742


9 %


42 %

Total equity

$  1,079,117


$     887,434


$      850,242


$      804,790


$     762,359


22 %


42 %















Allowance Ratios:

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

6.0 %


5.5 %


5.0 %


3.9 %


3.0 %





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

6.2 %


5.8 %


5.5 %


4.5 %


3.8 %





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

6.9 %


6.6 %


6.4 %


5.2 %


4.3 %





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

2.0 %


1.8 %


1.8 %


1.6 %


1.5 %





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

2.3 %


2.3 %


2.6 %


2.6 %


2.8 %






N/M – Not meaningful

N/A – Not applicable

(1)

Second quarter 2022 income tax benefit of $135.3 million due to the release of a deferred tax asset valuation allowance. See page 3 of this release for additional information on our use of Non-GAAP Financial Measures.

(2)

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

(3)

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

(4)

Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and held for investment by the Company.

 

LENDINGCLUB CORPORATION

LOANS AND LEASES HELD FOR INVESTMENT

(In thousands, except percentages or as noted)

(Unaudited)



June 30,
2022


December 31,
2021

Unsecured personal

$         2,964,950


$         1,804,578

Residential mortgages

176,900


151,362

Secured consumer

142,824


65,976

Total consumer loans held for investment

3,284,674


2,021,916

Equipment finance (1)

164,104


149,155

Commercial real estate

339,524


310,399

Commercial and industrial (2)

266,419


417,656

Total commercial loans and leases held for investment

770,047


877,210

Total loans and leases held for investment

4,054,721


2,899,126

Allowance for loan and lease losses

(243,260)


(144,389)

Loans and leases held for investment, net

$         3,811,461


$         2,754,737



(1)

Comprised of sales-type leases for equipment.

(2)

Includes $118.8 million and $268.3 million of Paycheck Protection Program (PPP) loans as of June 30, 2022 and December 31, 2021, 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, except percentages or as noted)

(Unaudited)



Three Months Ended


June 30, 2022


December 31, 2021


Consumer


Commercial


Total


Consumer


Commercial


Total

Allowance for loan and lease losses, beginning of period

$    173,857


$        14,128


$ 187,985


$      88,631


$        16,105


$ 104,736

Credit loss expense for loans and leases held for investment

68,314


1,739


70,053


45,595


(306)


45,289

Charge-offs

(14,707)


(1,145)


(15,852)


(5,557)


(313)


(5,870)

Recoveries

720


354


1,074


143


91


234

Allowance for loan and lease losses, end of period

$    228,184


$        15,076


$ 243,260


$    128,812


$        15,577


$ 144,389

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)



Three Months Ended


Change (%)


June 30,
2022


March 31,
2022


June 30,
2021


Q2 2022

vs

Q2 2021


Q2 2022

vs

Q1 2022

Non-interest income:










Marketplace revenue (1)

$       206,384


$       179,966


$       151,735


36 %


15 %

Other non-interest income

7,448


9,891


6,741


10 %


(25) %

Total non-interest income

213,832


189,857


158,476


35 %


13 %











Interest income:










Interest on loans held for sale

7,130


7,450


8,694


(18) %


(4) %

Interest and fees on loans and leases held for investment

108,911


91,442


39,068


179 %


19 %

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

5,091


6,969


16,014


(68) %


(27) %

Interest on other loans held for investment at fair value

631


593


1,222


(48) %


6 %

Interest on securities available for sale

4,426


4,511


2,539


74 %


(2) %

Other interest income

2,279


688


190


N/M


231 %

Total interest income

128,468


111,653


67,727


90 %


15 %











Interest expense:










Interest on deposits

6,078


3,438


1,699


258 %


77 %

Interest on short-term borrowings

417


435


1,003


(58) %


(4) %

Interest on retail notes, certificates and secured borrowings

5,091


6,969


16,014


(68) %


(27) %

Interest on Structured Program borrowings

360


764


2,668


(87) %


(53) %

Interest on other long-term debt

296


367


438


(32) %


(19) %

Total interest expense

12,242


11,973


21,822


(44) %


2 %











Net interest income

116,226


99,680


45,905


153 %


17 %











Total net revenue

330,058


289,537


204,381


61 %


14 %











Provision for credit losses

70,566


52,509


34,634


104 %


34 %











Non-interest expense:










Compensation and benefits

85,103


81,610


71,925


18 %


4 %

Marketing

61,497


55,080


35,107


75 %


12 %

Equipment and software

12,461


11,046


9,281


34 %


13 %

Occupancy

6,209


6,019


6,157


1 %


3 %

Depreciation and amortization

10,557


11,039


11,508


(8) %


(4) %

Professional services

16,138


12,406


11,520


40 %


30 %

Other non-interest expense

17,421


14,004


14,641


19 %


24 %

Total non-interest expense

209,386


191,204


160,139


31 %


10 %











Income before income tax benefit (expense)

50,106


45,824


9,608


422 %


9 %

Income tax benefit (expense)

131,954


(4,988)


(237)


N/M


N/M

Net income

$       182,060


$         40,836


$           9,371


N/M


N/M











Net income per share: 










Basic EPS – common stockholders

$             1.77


$             0.40


$             0.10


N/M


N/M

Diluted EPS – common stockholders

$             1.73


$             0.39


$             0.09


N/M


N/M

Weighted-average common shares – Basic

102,776,867


101,493,561


97,785,089


5 %


1 %

Weighted-average common shares – Diluted

105,042,626


105,052,904


102,031,088


3 %


— %


N/M – Not meaningful

(1)

Marketplace revenue consists of the following:



 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued)

(In thousands, except share and per share data)

(Unaudited)



Three Months Ended


Change (%)


June 30,
2022


March 31,
2022


June 30,
2021


Q2 2022

vs

Q2 2021


Q2 2022

vs

Q1 2022

Origination fees

$       149,252


$       122,093


$       113,802


31 %


22 %

Servicing fees

18,166


18,514


22,714


(20) %


(2) %

Gain on sales of loans

29,319


24,110


19,317


52 %


22 %

Net fair value adjustments

9,647


15,249


(4,098)


N/M


(37) %

Total marketplace revenue

$       206,384


$       179,966


$       151,735


36 %


15 %

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)



LendingClub

Bank


LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total


June 30,
2022


December 31,
2021


June 30,
2022


December 31,
2021


June 30,
2022


December 31,
2021


June 30,
2022


December 31,
2021

Assets
















Total cash and cash equivalents

$     1,004,602


$       659,919


$          95,755


$         88,268


$         (58,377)


$        (61,061)


$     1,041,980


$       687,126

Restricted cash



66,044


76,540


(5,792)


(80)


60,252


76,460

Securities available for sale at fair value

370,567


205,730


32,427


57,800




402,994


263,530

Loans held for sale

62,811


335,449



55,799




62,811


391,248

Loans and leases held for investment, net

3,811,461


2,754,737






3,811,461


2,754,737

Retail and certificate loans held for investment at fair value



122,078


229,719




122,078


229,719

Other loans held for investment at fair value



20,583


21,240




20,583


21,240

Property, equipment and software, net

73,002


36,424


46,974


61,572




119,976


97,996

Investment in subsidiary



634,102


557,577


(634,102)


(557,577)



Goodwill

75,717


75,717






75,717


75,717

Other assets

264,600


254,075


230,379


168,042


(26,066)


(119,571)


468,913


302,546

Total assets

5,662,760


4,322,051


1,248,342


1,316,557


(724,337)


(738,289)


6,186,765


4,900,319

Liabilities and Equity
















Total deposits

4,591,841


3,196,929




(64,169)


(61,141)


4,527,672


3,135,788

Short-term borrowings

165


165


7,818


27,615




7,983


27,780

Advances from PPPLF

123,444


271,933






123,444


271,933

Retail notes, certificates and secured borrowings at fair value



122,078


229,719




122,078


229,719

Payable on Structured Program borrowings



15,274


65,451




15,274


65,451

Other long-term debt



15,300


15,455




15,300


15,455

Other liabilities

187,089


218,775


134,874


150,727


(26,066)


(65,551)


295,897


303,951

Total liabilities

4,902,539


3,687,802


295,344


488,967


(90,235)


(126,692)


5,107,648


4,050,077

Total equity

760,221


634,249


952,998


827,590


(634,102)


(611,597)


1,079,117


850,242

Total liabilities and equity

$     5,662,760


$     4,322,051


$     1,248,342


$     1,316,557


$       (724,337)


$      (738,289)


$     6,186,765


$     4,900,319

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME BY SEGMENT

(In thousands, except share and per share data)

(Unaudited)



Three Months Ended June 30, 2022


LendingClub

Bank


LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total

Non-interest income:








Marketplace revenue

$           191,087


$             11,167


$              4,130


$           206,384

Other non-interest income

20,041


3,914


(16,507)


7,448

Total non-interest income

211,128


15,081


(12,377)


213,832









Interest income:








Interest income

120,152


8,316



128,468

Interest expense

(6,213)


(6,029)



(12,242)

Net interest income

113,939


2,287



116,226









Total net revenue

325,067


17,368


(12,377)


330,058









Provision for credit losses

(70,566)




(70,566)

Non-interest expense

(196,636)


(25,127)


12,377


(209,386)

Income (Loss) before income tax benefit (expense)

57,865


(7,759)



50,106

Income tax benefit (expense)

(17,318)


85,864


63,408


131,954

Net income

$             40,547


$             78,105


$             63,408


$           182,060




Three Months Ended March 31, 2022


LendingClub

Bank


LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total

Non-interest income:








Marketplace revenue

$           164,835


$             15,131


$                   —


$           179,966

Other non-interest income

19,498


4,223


(13,830)


9,891

Total non-interest income

184,333


19,354


(13,830)


189,857









Interest income:








Interest income

99,823


11,830



111,653

Interest expense

(3,644)


(8,329)



(11,973)

Net interest income

96,179


3,501



99,680









Total net revenue

280,512


22,855


(13,830)


289,537









Provision for credit losses

(52,509)




(52,509)

Non-interest expense

(178,459)


(26,575)


13,830


(191,204)

Income (Loss) before income tax benefit (expense)

49,544


(3,720)



45,824

Income tax benefit (expense)

(12,355)


17,727


(10,360)


(4,988)

Net income

$             37,189


$             14,007


$            (10,360)


$             40,836




Three Months Ended June 30, 2021


LendingClub

Bank


LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total

Non-interest income:








Marketplace revenue

$           128,714


$             23,021


$                   —


$           151,735

Other non-interest income

28,340


4,281


(25,880)


6,741

Total non-interest income

157,054


27,302


(25,880)


158,476









Interest income:








Interest income

45,325


22,402



67,727

Interest expense

(1,972)


(19,850)



(21,822)

Net interest income

43,353


2,552



45,905









Total net revenue

200,407


29,854


(25,880)


204,381









Reversal of (Provision for) credit losses

(34,956)


322



(34,634)

Non-interest expense

(138,182)


(47,837)


25,880


(160,139)

Income (Loss) before income tax benefit (expense)

27,269


(17,661)



9,608

Income tax benefit (expense)

12,513


8,922


(21,672)


(237)

Net income (loss)

$             39,782


$             (8,739)


$            (21,672)


$              9,371

 

LENDINGCLUB BANK

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)



LendingClub Bank


Three Months Ended

June 30, 2022


Three Months Ended

March 31, 2022


Three Months Ended

June 30, 2021


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 (1)


















Cash, cash equivalents, restricted cash and other

$    964,161


$    2,214


0.92 %


$    829,707


$       683


0.33 %


$    551,895


$       186


0.13 %

Securities available for sale at fair value

369,012


2,259


2.45 %


274,089


1,276


1.86 %


165,579


348


0.84 %

Loans held for sale

149,506


6,768


18.11 %


228,529


6,422


11.24 %


144,037


5,723


15.89 %

Loans and leases held for investment:


















Unsecured personal loans

2,692,148


95,529


14.19 %


2,060,323


78,376


15.22 %


511,787


19,499


15.24 %

Secured consumer loans

268,091


2,351


3.51 %


232,235


2,275


3.92 %


532,426


5,173


3.89 %

Commercial loans and leases

644,002


8,732


5.42 %


620,660


7,588


4.89 %


623,735


9,062


5.81 %

PPP loans

149,454


2,299


6.15 %


222,517


3,203


5.76 %


615,942


5,334


3.46 %

Loans and leases held for investment

3,753,695


108,911


11.61 %


3,135,735


91,442


11.66 %


2,283,890


39,068


6.84 %

Total interest-earning assets

5,236,374


120,152


9.18 %


4,468,060


99,823


8.94 %


3,145,401


45,325


5.76 %



















Cash and due from banks

31,142






46,117






34,612





Allowance for loan and lease losses

(202,904)






(163,631)






(51,109)





Other non-interest earning assets

424,586






390,066






221,870





Total assets

$ 5,489,198






$ 4,740,612






$ 3,350,774























Interest-bearing liabilities


















Interest-bearing deposits


















Checking and money market accounts

$ 2,463,710


$    2,664


0.43 %


$ 2,240,450


$    1,724


0.31 %


$ 2,071,112


$    1,618


0.31 %

Savings accounts and certificates of deposit

1,555,607


3,414


0.88 %


1,071,133


1,714


0.65 %


301,939


81


0.11 %

Interest-bearing deposits

4,019,317


6,078


0.61 %


3,311,583


3,438


0.42 %


2,373,051


1,699


0.29 %

Short-term borrowings

164



— %


165



— %


2,138


1


0.06 %

Advances from PPPLF

151,278


135


0.36 %


234,872


206


0.35 %


312,168


272


0.35 %

Other long-term debt



— %




— %


708



— %

Total interest-bearing liabilities

4,170,759


6,213


0.60 %


3,546,620


3,644


0.42 %


2,688,065


1,972


0.29 %



















Non-interest bearing deposits

399,949






300,218






102,709





Other liabilities

163,095






232,018






100,835





Total liabilities

$ 4,733,803






$ 4,078,856






$ 2,891,609





Total equity

$    755,395






$    661,756






$    459,165





Total liabilities and equity

$ 5,489,198






$ 4,740,612






$ 3,350,774























Interest rate spread





8.58 %






8.52 %






5.47 %



















Net interest income and net interest margin



$  113,939


8.70 %




$  96,179


8.61 %




$  43,353


5.51 %



(1)

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)



Consolidated LendingClub Corporation(1)


Three Months Ended

June 30, 2022


Three Months Ended

March 31, 2022


Three Months Ended

June 30, 2021


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

$ 1,023,192


$    2,279


0.89 %


$    892,921


$        688


0.31 %


$    642,182


$       190


0.12 %

Securities available for sale at fair value

409,327


4,426


4.32 %


325,155


4,511


5.55 %


273,956


2,539


3.71 %

Loans held for sale

156,503


7,130


18.22 %


255,139


7,450


11.68 %


243,445


8,694


14.29 %

Loans and leases held for investment:


















Unsecured personal loans

2,692,148


95,529


14.19 %


2,060,323


78,376


15.22 %


511,787


19,499


15.24 %

Secured consumer loans

268,091


2,351


3.51 %


232,235


2,275


3.92 %


532,426


5,173


3.89 %

Commercial loans and leases

644,002


8,732


5.42 %


620,660


7,588


4.89 %


623,735


9,062


5.81 %

PPP loans

149,454


2,299


6.15 %


222,517


3,203


5.76 %


615,942


5,334


3.46 %

Loans and leases held for investment

3,753,695


108,911


11.61 %


3,135,735


91,442


11.66 %


2,283,890


39,068


6.84 %

Retail and certificate loans held for investment at fair value

144,613


5,091


14.08 %


198,813


6,969


14.02 %


448,822


16,014


14.27 %

Other loans held for investment at fair value

16,991


631


14.85 %


18,523


593


12.80 %


38,662


1,222


12.64 %

Total interest-earning assets

5,504,321


128,468


9.34 %


4,826,286


111,653


9.25 %


3,930,957


67,727


6.89 %



















Cash and due from banks and restricted cash

75,517






92,683






144,897





Allowance for loan and lease losses

(202,904)






(163,631)






(51,109)





Other non-interest earning assets

490,412






486,363






447,826





Total assets

$ 5,867,346






$ 5,241,701






$ 4,472,571























Interest-bearing liabilities


















Interest-bearing deposits:


















Checking and money market accounts

$ 2,463,710


$    2,664


0.43 %


$ 2,240,450


$     1,724


0.31 %


$ 2,071,112


$    1,618


0.31 %

Savings accounts and certificates of deposit

1,555,607


3,414


0.88 %


1,071,133


1,714


0.64 %


301,939


81


0.11 %

Interest-bearing deposits

4,019,317


6,078


0.61 %


3,311,583


3,438


0.42 %


2,373,051


1,699


0.29 %

Short-term borrowings

10,874


417


15.35 %


20,371


435


8.56 %


79,511


1,003


5.05 %

Advances from PPPLF

151,278


135


0.36 %


234,872


206


0.35 %


312,168


272


0.35 %

Retail notes, certificates and secured borrowings

144,613


5,091


14.08 %


198,813


6,969


14.02 %


449,057


16,014


14.27 %

Structured Program borrowings

18,439


360


7.81 %


42,026


764


7.29 %


121,738


2,668


8.77 %

Other long-term debt

15,357


161


4.20 %


15,421


161


4.19 %


16,404


166


4.04 %

Total interest-bearing liabilities

4,359,878


12,242


1.12 %


3,823,086


11,973


1.25 %


3,351,929


21,822


2.61 %



















Non-interest bearing deposits

292,750






227,337






92,588





Other liabilities

261,795






319,241






276,723





Total liabilities

$ 4,914,423






$ 4,369,664






$ 3,721,240























Total equity

$    952,922






$    872,037






$    751,331





Total liabilities and equity

$ 5,867,345






$ 5,241,701






$ 4,472,571























Interest rate spread





8.21 %






8.00 %






4.29 %



















Net interest income and net interest margin



$  116,226


8.45 %




$   99,680


8.26 %




$  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

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)



June 30,
2022


December 31,
2021

Assets




Cash and due from banks

$            26,415


$         35,670

Interest-bearing deposits in banks

1,015,565


651,456

Total cash and cash equivalents

1,041,980


687,126

Restricted cash

60,252


76,460

Securities available for sale at fair value ($435,451 and $256,170 at amortized cost, respectively)

402,994


263,530

Loans held for sale (includes $62,811 and $142,370 at fair value, respectively)

62,811


391,248

Loans and leases held for investment

4,054,721


2,899,126

Allowance for loan and lease losses

(243,260)


(144,389)

Loans and leases held for investment, net

3,811,461


2,754,737

Retail and certificate loans held for investment at fair value

122,078


229,719

Other loans held for investment at fair value

20,583


21,240

Property, equipment and software, net

119,976


97,996

Goodwill

75,717


75,717

Other assets

468,913


302,546

Total assets

$        6,186,765


$     4,900,319

Liabilities and Equity




Deposits:




Interest-bearing

$        4,261,651


$     2,919,203

Noninterest-bearing

266,021


216,585

Total deposits

4,527,672


3,135,788

Short-term borrowings

7,983


27,780

Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

123,444


271,933

Retail notes, certificates and secured borrowings at fair value

122,078


229,719

Payable on Structured Program borrowings

15,274


65,451

Other long-term debt

15,300


15,455

Other liabilities

295,897


303,951

Total liabilities

5,107,648


4,050,077

Equity




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


Common stock, $0.01 par value; 180,000,000 shares authorized; 103,630,776 and 101,043,924 shares issued and outstanding, respectively

1,036


1,010

Additional paid-in capital

1,594,458


1,559,616

Accumulated deficit

(494,534)


(717,430)

Accumulated other comprehensive income (loss)

(21,843)


7,046

Total equity

1,079,117


850,242

Total liabilities and equity

$        6,186,765


$     4,900,319

 

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SOURCE LendingClub Corporation