LendingClub Reports Second Quarter 2022 Results

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July 27, 2022 4:07 PM EDT

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.

LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S." alt="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." />

"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:[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: 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

AverageBalance

InterestIncome/Expense

Average Yield/Rate

AverageBalance

InterestIncome/Expense

Average Yield/Rate

AverageBalance

InterestIncome/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

AverageBalance

InterestIncome/Expense

Average Yield/Rate

AverageBalance

InterestIncome/Expense

Average Yield/Rate

AverageBalance

InterestIncome/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

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-second-quarter-2022-results-301594578.html

SOURCE LendingClub Corporation


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