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 LendingClubLendingClub 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 InformationThe 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.
ContactsFor Investors:[email protected]Media Contact:[email protected]
Safe Harbor StatementSome 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 CORPORATIONCONDENSED 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) | |||||||||||||||||||||
AverageBalance | Interest Income/Expense | Average Yield/Rate | AverageBalance | 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) | |||||||||||||||||||||||||||||||
AverageBalance | Interest Income/Expense | Average Yield/Rate | AverageBalance | Interest Income/Expense | Average Yield/Rate | AverageBalance | 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) | |||||||||||||||||||||||||||||||
AverageBalance | Interest Income/Expense | Average Yield/Rate | AverageBalance | Interest Income/Expense | Average Yield/Rate | AverageBalance | 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