LendingClub Reports First Quarter 2024 Results

Rhea-AI Summary

LendingClub reported strong first-quarter 2024 results driven by robust loan originations and credit performance, marking their 12th consecutive quarter of GAAP profitability. The company showcased a solid financial performance with total assets of $9.2 billion, deposits of $7.5 billion, and net revenue of $180.7 million. Despite a slight decrease in revenue, LendingClub demonstrated a strong capital position with an impressive Tier 1 leverage ratio of 12.5% and a Common Equity Tier 1 capital ratio of 17.6%. The company's net income increased to $12.3 million with diluted EPS of $0.11. LendingClub's financial outlook for the second quarter 2024 includes loan originations ranging from $1.6B to $1.8B and a Pre-Provision Net Revenue of $30M to $40M.

Positive

• LendingClub reported strong first-quarter 2024 results, marking their 12th consecutive quarter of GAAP profitability.

• The company demonstrated robust loan originations with total assets of $9.2 billion and deposits of $7.5 billion.

• LendingClub showcased a strong capital position with a Tier 1 leverage ratio of 12.5% and a Common Equity Tier 1 capital ratio of 17.6%.

Negative

• Total net revenue decreased slightly to $180.7 million compared to the prior quarter.

• Provision for credit losses was $31.9 million, down from $41.9 million in the prior quarter.

• Pre-Provision Net Revenue (PPNR) declined to $48.5 million from $55.6 million in the prior quarter.

Insights

Financial Analyst

LendingClub's latest financial report reveals a nuanced story that demands a critical eye. The 12th consecutive quarter of GAAP profitability is a testament to the company's operational discipline and should instill some confidence in its financial stability. However, a slightly decreased total net revenue quarter-over-quarter may raise eyebrows, hinting at potential headwinds or a need for strategic adjustments to maintain growth trajectories.

The increase in book value and tangible book value per common share is a positive sign for shareholders, indicating a potential undervaluation of the stock if these figures are higher than the current trading price. Furthermore, the strong capital position, with a consolidated Tier 1 leverage ratio of 12.5% and a Common Equity Tier 1 capital ratio of 17.6%, suggests that LendingClub is well-capitalized and has a cushion to manage unforeseen risks.

For investors, the loan origination numbers remain steady, a sign of healthy demand for LendingClub's credit products. However, the shift in asset mix and increased funding costs reflected in the lower net interest income warrant a closer look to ascertain future profitability and margins. The reduction in provision for credit losses is encouraging, yet it is important to monitor whether this trend continues as an indicator of sound credit risk management.

Market Research Analyst

The digital marketplace banking sector is increasingly competitive and LendingClub's position as a leading platform must be continuously earned. The strength in credit performance and originations, despite typical seasonal pressures, shows resilience and can be an indicator of sustained market share. Nonetheless, the slight dip in Net Income compared to the same quarter from the previous year should be a point of analysis for investors considering the company's growth outlook.

As the company increases loan retention and repurchases portfolios of originated loans, this strategy can provide more control over assets and potentially increase revenue through interest income over time. However, investors should be cautious about any associated increase in credit risk or changes in LendingClub's risk profile.

Strong Originations and Credit Performance Drives 12th Consecutive Quarter of GAAP Profitability

SAN FRANCISCO, April 30, 2024 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the first quarter ended March 31, 2024.

"We're pleased to have started 2024 with another strong quarter, executing well against the factors we can control," said Scott Sanborn, LendingClub CEO. "Our operating discipline, strong credit performance, and continued innovation are resulting in a sustainable operating rhythm that is delivering real value to our members and has us well positioned to seize the historic opportunity in front of us."

First Quarter 2024 Results

Balance Sheet:

• Total assets of $9.2 billion compared to $8.8 billion in the prior quarter, primarily reflecting growth in securities related to the structured certificate program.
• Deposits of $7.5 billion compared to $7.3 billion in the prior quarter, primarily due to an increase in high yield savings and certificates of deposit, partially offset by a decrease in brokered deposits.
  • FDIC-insured deposits represent approximately 87% of total deposits.
• Securities available for sale of $2.2 billion, compared to $1.6 billion in the prior quarter, primarily reflecting growth in the structured certificate program.
• Whole loans held on the balance sheet, which consists of loans and leases held for investment and loans held for sale, remained flat at $5.2 billion compared to the prior quarter, as the company increased loan retention and repurchased a portfolio of LendingClub-originated loans, largely offsetting amortization of the existing portfolio.
• Strong capital position with a consolidated Tier 1 leverage ratio of 12.5% and consolidated Common Equity Tier 1 capital ratio of 17.6%.
• Book value per common share increased to $11.40, compared to $11.34 in the prior quarter.
• Tangible book value per common share increased to $10.61, compared to $10.54 in the prior quarter.

Financial Performance:

• Loan originations of $1.6 billion, comparable to the prior quarter driven by promising initial results from new borrower initiatives, offsetting typical seasonal pressures.
• Total net revenue of $180.7 million, compared to $185.6 million in the prior quarter, driven by:
  • Marketplace revenue of $55.9 million, compared to $52.2 million in the prior quarter, primarily reflecting improved loan pricing of marketplace loans.
  • Net interest income of $122.9 million, compared to $131.5 million in the prior quarter, reflecting a shift in asset mix from held for investment loans to senior securities and higher deposit funding costs.
• Provision for credit losses of $31.9 million, compared to $41.9 million in the prior quarter due to lower incremental provision on seasoned vintages.
• Net income increased to $12.3 million, with diluted EPS of $0.11, compared to $10.2 million, or diluted EPS of $0.09, in the prior quarter. Net income was driven by strong execution, better-than-expected benchmark rates supporting loan sales pricing, and continued expense management combined with delays in expected expense increases.
• Pre-provision net revenue (PPNR) of $48.5 million, compared to $55.6 million in the prior quarter.

 

	Three Months Ended
($ in millions, except per share amounts)	March 31, 2024		December 31, 2023		March 31, 2023
Total net revenue	$                    180.7		$                    185.6		$                    245.7
Non-interest expense	132.2		130.0		157.3
Pre-provision net revenue (1)	48.5		55.6		88.4
Provision for credit losses	31.9		41.9		70.6
Income before income tax expense	16.5		13.7		17.8
Income tax expense	(4.3)		(3.5)		(4.1)
Net income	$                       12.3		$                       10.2		$                       13.7
Diluted EPS	$                       0.11		$                       0.09		$                       0.13

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

For a calculation of Pre-Provision Net Revenue and Tangible Book Value Per Common Share, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.

Financial Outlook

	Second Quarter 2024
Loan Originations	$1.6B to $1.8B
Pre-Provision Net Revenue (PPNR)	$30M to $40M

About LendingClub

LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.9 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 first quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, April 30, 2024. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (404) 975-4839, or outside the U.S. +1 (833) 470-1428, with Access Code 904235, 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 May 7, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 972670. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), X (formerly Twitter) handles (@LendingClub and @LendingClubIR) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

Contacts
For Investors:
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: Pre-Provision Net Revenue and Tangible Book Value Per Common Share. Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.

We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.

We believe Pre-Provision Net Revenue is an important measure because it reflects the financial performance of our business operations. Pre-Provision Net Revenue is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income.

We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company's use of equity. TBV Per Common Share is a non-GAAP financial measure representing common equity reduced by goodwill and intangible assets, divided by ending common shares issued and outstanding.

For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on page 14 of this release.

Safe Harbor Statement

Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing borrowers and platform investors; competition; overall economic conditions; the interest rate environment; the regulatory environment; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

*****

 

LENDINGCLUB CORPORATION OPERATING HIGHLIGHTS (In thousands, except percentages or as noted) (Unaudited)
	As of and for the three months ended										% Change
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		Q/Q		Y/Y
Operating Highlights:
Non-interest income	$       57,800		$        54,129		$         63,844		$      85,818		$       98,990		7 %		(42) %
Net interest income	122,888		131,477		137,005		146,652		146,704		(7) %		(16) %
Total net revenue	180,688		185,606		200,849		232,470		245,694		(3) %		(26) %
Non-interest expense	132,233		130,015		128,035		151,079		157,308		2 %		(16) %
Pre-provision net revenue(1)	48,455		55,591		72,814		81,391		88,386		(13) %		(45) %
Provision for credit losses	31,927		41,907		64,479		66,595		70,584		(24) %		(55) %
Income before income tax expense	16,528		13,684		8,335		14,796		17,802		21 %		(7) %
Income tax expense	(4,278)		(3,529)		(3,327)		(4,686)		(4,136)		21 %		3 %
Net income	$       12,250		$        10,155		$           5,008		$      10,110		$       13,666		21 %		(10) %
Basic EPS	$           0.11		$            0.09		$             0.05		$          0.09		$           0.13		22 %		(15) %
Diluted EPS	$           0.11		$            0.09		$             0.05		$          0.09		$           0.13		22 %		(15) %
LendingClub Corporation Performance Metrics:
Net interest margin	5.8 %		6.4 %		6.9 %		7.1 %		7.5 %
Efficiency ratio(2)	73.2 %		70.0 %		63.7 %		65.0 %		64.0 %
Return on average equity (ROE)(3)	3.9 %		3.3 %		1.7 %		3.4 %		4.6 %
Return on average total assets (ROA)(4)	0.5 %		0.5 %		0.2 %		0.5 %		0.7 %
Marketing expense as a % of loan originations	1.47 %		1.44 %		1.30 %		1.19 %		1.18 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio	17.6 %		17.9 %		16.9 %		16.1 %		15.6 %
Tier 1 leverage ratio	12.5 %		12.9 %		13.2 %		12.4 %		12.8 %
Book value per common share	$         11.40		$          11.34		$           11.02		$        11.09		$         11.08		1 %		3 %
Tangible book value per common share(1)	$         10.61		$          10.54		$           10.21		$        10.26		$         10.23		1 %		4 %
Loan Originations (in millions)(5):
Total loan originations	$         1,646		$          1,630		$           1,508		$        2,011		$         2,288		1 %		(28) %
Marketplace loans	$         1,361		$          1,432		$           1,182		$        1,353		$         1,286		(5) %		6 %
Loan originations held for investment	$            285		$             198		$              326		$           657		$         1,002		44 %		(72) %
Loan originations held for investment as a % of total loan originations	17 %		12 %		22 %		33 %		44 %
Servicing Portfolio AUM (in millions)(6):
Total servicing portfolio	$       13,437		$         14,122		$         14,818		$       15,669		$       16,060		(5) %		(16) %
Loans serviced for others	$         8,671		$           9,336		$           9,601		$       10,204		$       10,504		(7) %		(17) %

(1)	Represents a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures."
(2)	Calculated as the ratio of non-interest expense to total net revenue.
(3)	Calculated as annualized net income divided by average equity for the period presented.
(4)	Calculated as annualized net income divided by average total assets for the period presented.
(5)	Includes unsecured personal loans and auto loans only.
(6)	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 OPERATING HIGHLIGHTS (Continued) (In thousands, except percentages or as noted) (Unaudited)
	As of and for the three months ended										% Change
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		Q/Q		Y/Y
Balance Sheet Data:
Securities available for sale	$     2,228,500		$      1,620,262		$          795,669		$       523,579		$        380,028		38 %		486 %
Loans held for sale at fair value	$        550,415		$         407,773		$          362,789		$       250,361		$          44,647		35 %		N/M
Loans and leases held for investment at amortized cost	$     4,505,816		$      4,850,302		$       5,237,277		$    5,533,349		$     5,491,938		(7) %		(18) %
Gross allowance for loan and lease losses (1)	$       (311,794)		$        (355,773)		$         (388,156)		$      (383,960)		$       (368,698)		(12) %		(15) %
Recovery asset value (2)	$          52,644		$           45,386		$            37,661		$         28,797		$          19,841		16 %		165 %
Allowance for loan and lease losses	$       (259,150)		$        (310,387)		$         (350,495)		$      (355,163)		$       (348,857)		(17) %		(26) %
Loans and leases held for investment at amortized cost, net	$     4,246,666		$      4,539,915		$       4,886,782		$    5,178,186		$     5,143,081		(6) %		(17) %
Loans held for investment at fair value (3)	$        427,396		$         272,678		$          344,417		$       430,956		$        787,473		57 %		(46) %
Total loans and leases held for investment (3)	$     4,674,062		$      4,812,593		$       5,231,199		$    5,609,142		$     5,930,554		(3) %		(21) %
Whole loans held on balance sheet (4)	$     5,224,477		$      5,220,366		$       5,593,988		$    5,859,503		$     5,975,201		— %		(13) %
Total assets	$     9,244,828		$      8,827,463		$       8,472,351		$    8,342,506		$     8,754,018		5 %		6 %
Total deposits	$     7,521,655		$      7,333,486		$       7,000,263		$    6,843,535		$     7,218,854		3 %		4 %
Total liabilities	$     7,978,542		$      7,575,641		$       7,264,132		$    7,136,983		$     7,563,276		5 %		5 %
Total equity	$     1,266,286		$      1,251,822		$       1,208,219		$    1,205,523		$     1,190,742		1 %		6 %

N/M – Not meaningful
(1)	Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2)	Represents the negative allowance for expected recoveries of amounts previously charged-off.
(3)	In the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value." Prior period amounts have been reclassified to conform to the current period presentation.
(4)	Includes loans held for sale at fair value, loans and leases held for investment at amortized cost, net of allowance for loan and lease losses, and loans held for investment at fair value.

 

The asset quality metrics presented in the following table are for loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
	As of and for the three months ended
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Asset Quality Metrics (1):
Allowance for loan and lease losses to total loans and leases held for investment at amortized cost	5.8 %		6.4 %		6.7 %		6.4 %		6.4 %
Allowance for loan and lease losses to commercial loans and leases held for investment at amortized cost	1.9 %		1.8 %		2.0 %		1.9 %		2.0 %
Allowance for loan and lease losses to consumer loans and leases held for investment at amortized cost	6.4 %		7.2 %		7.4 %		7.1 %		7.1 %
Gross allowance for loan and lease losses to consumer loans and leases held for investment at amortized cost	7.8 %		8.3 %		8.2 %		7.7 %		7.5 %
Net charge-offs	$          80,483		$          82,511		$          68,795		$          59,884		$          49,845
Net charge-off ratio (2)	6.9 %		6.6 %		5.1 %		4.4 %		3.8 %

(1)	Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.
(2)	Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period.

 

LENDINGCLUB CORPORATION LOANS AND LEASES HELD FOR INVESTMENT (In thousands) (Unaudited)
The following table presents loans and leases held for investment at amortized cost and loans held for investment at fair value:
	March 31, 2024		December 31, 2023
Unsecured personal	$       3,397,853		$       3,726,830
Residential mortgages	180,697		183,050
Secured consumer	253,241		250,039
Total consumer loans held for investment	3,831,791		4,159,919
Equipment finance (1)	101,902		110,992
Commercial real estate	376,022		380,322
Commercial and industrial	196,101		199,069
Total commercial loans and leases held for investment	674,025		690,383
Total loans and leases held for investment at amortized cost	4,505,816		4,850,302
Allowance for loan and lease losses	(259,150)		(310,387)
Loans and leases held for investment at amortized cost, net	$       4,246,666		$       4,539,915
Loans held for investment at fair value (2)	427,396		272,678
Total loans and leases held for investment	$       4,674,062		$       4,812,593

(1)	Comprised of sales-type leases for equipment.
(2)	In the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value." Prior period amount has been reclassified to conform to the current period presentation.

 

LENDINGCLUB CORPORATION ALLOWANCE FOR LOAN AND LEASE LOSSES (In thousands) (Unaudited)
The following table presents the components of the allowance for loan and lease losses:
	March 31, 2024		December 31, 2023
Gross allowance for loan and lease losses (1)	$                311,794		$                355,773
Recovery asset value (2)	(52,644)		(45,386)
Allowance for loan and lease losses	$                259,150		$                310,387

(1)	Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2)	Represents the negative allowance for expected recoveries of amounts previously charged-off.

 

The following tables present the allowance for loan and lease losses on loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
	Three Months Ended
	March 31, 2024						December 31, 2023
	Consumer		Commercial		Total		Consumer		Commercial		Total
Allowance for loan and lease losses, beginning of period	$    298,061		$        12,326		$ 310,387		$    336,288		$        14,207		$ 350,495
Credit loss expense for loans and leases held for investment	27,686		1,560		29,246		43,227		(824)		42,403
Charge-offs	(89,110)		(1,232)		(90,342)		(88,904)		(1,193)		(90,097)
Recoveries	9,643		216		9,859		7,450		136		7,586
Allowance for loan and lease losses, end of period	$    246,280		$        12,870		$ 259,150		$    298,061		$        12,326		$ 310,387

 

	Three Months Ended
	March 31, 2023
	Consumer		Commercial		Total
Allowance for loan and lease losses, beginning of period	$    312,489		$        15,363		$ 327,852
Credit loss expense for loans and leases held for investment	70,684		166		70,850
Charge-offs	(52,212)		(351)		(52,563)
Recoveries	2,585		133		2,718
Allowance for loan and lease losses, end of period	$    333,546		$        15,311		$ 348,857

 

LENDINGCLUB CORPORATION PAST DUE LOANS AND LEASES HELD FOR INVESTMENT (In thousands) (Unaudited)
The following tables present past due loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
March 31, 2024	30-59 Days		60-89 Days		90 or More Days		Total Days Past Due		Guaranteed Amount (1)
Unsecured personal	$      29,852		$      24,694		$      26,383		$             80,929		$                     —
Residential mortgages	1,171		—		151		1,322		—
Secured consumer	2,332		393		243		2,968		—
Total consumer loans held for investment	$      33,355		$      25,087		$      26,777		$             85,219		$                     —
Equipment finance	$        1,461		$             —		$             —		$               1,461		$                     —
Commercial real estate	4,335		400		4,321		9,056		7,755
Commercial and industrial	1,595		8,518		4,687		14,800		11,185
Total commercial loans and leases held for investment	$        7,391		$        8,918		$        9,008		$             25,317		$             18,940
Total loans and leases held for investment at amortized cost	$      40,746		$      34,005		$      35,785		$           110,536		$             18,940
December 31, 2023	30-59 Days		60-89 Days		90 or More Days		Total Days Past Due		Guaranteed Amount (1)
Unsecured personal	$      32,716		$      29,556		$      30,132		$             92,404		$                     —
Residential mortgages	1,751		—		—		1,751		—
Secured consumer	2,076		635		217		2,928		—
Total consumer loans held for investment	$      36,543		$      30,191		$      30,349		$             97,083		$                     —
Equipment finance	$        1,265		$             —		$             —		$               1,265		$                     —
Commercial real estate	—		3,566		1,618		5,184		4,047
Commercial and industrial	12,261		1,632		1,515		15,408		11,260
Total commercial loans and leases held for investment	$      13,526		$        5,198		$        3,133		$             21,857		$             15,307
Total loans and leases held for investment at amortized cost	$      50,069		$      35,389		$      33,482		$           118,940		$             15,307

(1)	Represents loan balances guaranteed by the Small Business Association.

 

LENDINGCLUB CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share and per share data) (Unaudited)
	Three Months Ended						Change (%)
	March 31, 2024		December 31, 2023		March 31, 2023		Q1 2024 vs Q4 2023		Q1 2024 vs Q1 2023
Non-interest income:
Origination fees	$         70,079		$          76,702		$         70,543		(9) %		(1) %
Servicing fees	19,592		17,450		26,380		12 %		(26) %
Gain on sales of loans	10,909		11,921		14,125		(8) %		(23) %
Net fair value adjustments	(44,689)		(53,892)		(15,414)		(17) %		190 %
Marketplace revenue	55,891		52,181		95,634		7 %		(42) %
Other non-interest income	1,909		1,948		3,356		(2) %		(43) %
Total non-interest income	57,800		54,129		98,990		7 %		(42) %
Total interest income	207,351		208,319		202,413		— %		2 %
Total interest expense	84,463		76,842		55,709		10 %		52 %
Net interest income	122,888		131,477		146,704		(7) %		(16) %
Total net revenue	180,688		185,606		245,694		(3) %		(26) %
Provision for credit losses	31,927		41,907		70,584		(24) %		(55) %
Non-interest expense:
Compensation and benefits	59,554		58,591		73,307		2 %		(19) %
Marketing	24,136		23,465		26,880		3 %		(10) %
Equipment and software	12,684		13,190		13,696		(4) %		(7) %
Depreciation and amortization	12,673		11,953		12,354		6 %		3 %
Professional services	7,091		7,727		9,058		(8) %		(22) %
Occupancy	3,861		3,926		4,310		(2) %		(10) %
Other non-interest expense	12,234		11,163		17,703		10 %		(31) %
Total non-interest expense	132,233		130,015		157,308		2 %		(16) %
Income before income tax expense	16,528		13,684		17,802		21 %		(7) %
Income tax expense	(4,278)		(3,529)		(4,136)		21 %		3 %
Net income	$         12,250		$          10,155		$         13,666		21 %		(10) %
Net income per share:
Basic EPS	$             0.11		$              0.09		$             0.13		22 %		(15) %
Diluted EPS	$             0.11		$              0.09		$             0.13		22 %		(15) %
Weighted-average common shares – Basic	110,685,796		109,948,785		106,912,139		1 %		4 %
Weighted-average common shares – Diluted	110,687,380		109,949,371		106,917,770		1 %		4 %

 

LENDINGCLUB CORPORATION NET INTEREST INCOME (In thousands, except percentages or as noted) (Unaudited)
	Consolidated LendingClub Corporation (1)
	Three Months Ended March 31, 2024						Three Months Ended December 31, 2023						Three Months Ended March 31, 2023
	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	$ 1,217,395		$  16,503		5.42 %		$ 1,190,539		$   16,271		5.47 %		$ 1,220,677		$  13,714		4.49 %
Securities available for sale at fair value	1,972,561		35,347		7.17 %		1,197,625		20,920		6.99 %		362,960		3,900		4.30 %
Loans held for sale at fair value	467,275		14,699		12.58 %		501,850		15,883		12.66 %		110,580		5,757		20.83 %
Loans and leases held for investment:
Unsecured personal loans	3,518,101		116,055		13.20 %		3,890,041		128,190		13.18 %		4,066,713		133,687		13.15 %
Commercial and other consumer loans	1,115,931		16,338		5.86 %		1,126,010		17,033		6.05 %		1,175,504		16,780		5.71 %
Loans and leases held for investment at amortized cost	4,634,032		132,393		11.43 %		5,016,051		145,223		11.58 %		5,242,217		150,467		11.48 %
Loans held for investment at fair value (3)	256,335		8,409		13.12 %		306,636		10,022		13.07 %		882,838		28,575		12.95 %
Total loans and leases held for investment (3)	4,890,367		140,802		11.52 %		5,322,687		155,245		11.67 %		6,125,055		179,042		11.69 %
Total interest-earning assets	8,547,598		207,351		9.70 %		8,212,701		208,319		10.15 %		7,819,272		202,413		10.35 %
Cash and due from banks and restricted cash	58,440						63,181						71,878
Allowance for loan and lease losses	(291,168)						(334,711)						(338,359)
Other non-interest earning assets	631,468						659,995						666,650
Total assets	$ 8,946,338						$ 8,601,166						$ 8,219,441
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts	$ 1,054,614		$    9,410		3.59 %		$ 1,081,875		$     9,593		3.52 %		$ 1,633,691		$    7,568		1.88 %
Savings accounts and certificates of deposit	6,069,942		74,553		4.94 %		5,720,058		66,660		4.62 %		4,747,478		45,705		3.90 %
Interest-bearing deposits	7,124,556		83,963		4.74 %		6,801,933		76,253		4.45 %		6,381,169		53,273		3.39 %
Other interest-bearing liabilities (3)	26,571		500		7.53 %		24,180		589		9.74 %		154,045		2,436		6.33 %
Total interest-bearing liabilities	7,151,127		84,463		4.75 %		6,826,113		76,842		4.47 %		6,535,214		55,709		3.46 %
Non-interest bearing deposits	317,430						314,822						241,954
Other liabilities	220,544						238,806						263,868
Total liabilities	$ 7,689,101						$ 7,379,741						$ 7,041,036
Total equity	$ 1,257,237						$ 1,221,425						$ 1,178,405
Total liabilities and equity	$ 8,946,338						$ 8,601,166						$ 8,219,441
Interest rate spread					4.95 %						5.68 %						6.90 %
Net interest income and net interest margin			$  122,888		5.75 %				$ 131,477		6.40 %				$  146,704		7.50 %

(1)	Consolidated presentation reflects intercompany eliminations.
(2)	Nonaccrual loans and any related income are included in their respective loan categories.
(3)	In the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value" and "Retail notes and certificates at fair value" were combined within "Other interest-bearing liabilities." Prior period amounts have been reclassified to conform to the current period presentation.

 

LENDINGCLUB CORPORATION CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) (Unaudited)
	March 31, 2024		December 31, 2023
Assets
Cash and due from banks	$            15,930		$         14,993
Interest-bearing deposits in banks	1,050,349		1,237,511
Total cash and cash equivalents	1,066,279		1,252,504
Restricted cash	36,081		41,644
Securities available for sale at fair value ($2,284,550 and $1,663,990 at amortized cost, respectively)	2,228,500		1,620,262
Loans held for sale at fair value	550,415		407,773
Loans and leases held for investment	4,505,816		4,850,302
Allowance for loan and lease losses	(259,150)		(310,387)
Loans and leases held for investment, net	4,246,666		4,539,915
Loans held for investment at fair value (1)	427,396		272,678
Property, equipment and software, net	163,632		161,517
Goodwill	75,717		75,717
Other assets	450,142		455,453
Total assets	$        9,244,828		$     8,827,463
Liabilities and Equity
Deposits:
Interest-bearing	$        7,214,029		$     7,001,680
Noninterest-bearing	307,626		331,806
Total deposits	7,521,655		7,333,486
Borrowings (1)	262,550		19,354
Other liabilities	194,337		222,801
Total liabilities	7,978,542		7,575,641
Equity
Common stock, $0.01 par value; 180,000,000 shares authorized; 111,120,415 and 110,410,602 shares issued and outstanding, respectively	1,111		1,104
Additional paid-in capital	1,678,928		1,669,828
Accumulated deficit	(376,556)		(388,806)
Accumulated other comprehensive loss	(37,197)		(30,304)
Total equity	1,266,286		1,251,822
Total liabilities and equity	$        9,244,828		$     8,827,463

(1)

In the first quarter of 2024, "Retail and certificate loans held for investment at fair value" were combined within "Loans held for investment at fair value" and "Retail notes and certificates at fair value" were combined within "Borrowings." Prior period amounts have been reclassified to conform to the current period presentation.

 

LENDINGCLUB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except share and per share data) (Unaudited)
Pre-Provision Net Revenue
	For the three months ended
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
GAAP Net income	$                  12,250		$                  10,155		$                    5,008		$                  10,110		$                  13,666
Less: Provision for credit losses	(31,927)		(41,907)		(64,479)		(66,595)		(70,584)
Less: Income tax expense	(4,278)		(3,529)		(3,327)		(4,686)		(4,136)
Pre-provision net revenue	$                  48,455		$                  55,591		$                  72,814		$                  81,391		$                  88,386
	For the three months ended
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Non-interest income	$                  57,800		$                  54,129		$                  63,844		$                  85,818		$                  98,990
Net interest income	122,888		131,477		137,005		146,652		146,704
Total net revenue	180,688		185,606		200,849		232,470		245,694
Non-interest expense	(132,233)		(130,015)		(128,035)		(151,079)		(157,308)
Pre-provision net revenue	48,455		55,591		72,814		81,391		88,386
Provision for credit losses	(31,927)		(41,907)		(64,479)		(66,595)		(70,584)
Income before income tax expense	16,528		13,684		8,335		14,796		17,802
Income tax expense	(4,278)		(3,529)		(3,327)		(4,686)		(4,136)
GAAP Net income	$                  12,250		$                  10,155		$                    5,008		$                  10,110		$                  13,666
Tangible Book Value Per Common Share
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
GAAP common equity	$        1,266,286		$        1,251,822		$        1,208,219		$        1,205,523		$        1,190,742
Less: Goodwill	(75,717)		(75,717)		(75,717)		(75,717)		(75,717)
Less: Intangible assets	(11,165)		(12,135)		(13,151)		(14,167)		(15,201)
Tangible common equity	$        1,179,404		$        1,163,970		$        1,119,351		$        1,115,639		$        1,099,824
Book value per common share
GAAP common equity	$        1,266,286		$        1,251,822		$        1,208,219		$        1,205,523		$        1,190,742
Common shares issued and outstanding	111,120,415		110,410,602		109,648,769		108,694,120		107,460,734
Book value per common share	$               11.40		$               11.34		$               11.02		$               11.09		$               11.08
Tangible book value per common share
Tangible common equity	$        1,179,404		$        1,163,970		$        1,119,351		$        1,115,639		$        1,099,824
Common shares issued and outstanding	111,120,415		110,410,602		109,648,769		108,694,120		107,460,734
Tangible book value per common share	$               10.61		$               10.54		$               10.21		$               10.26		$               10.23

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-first-quarter-2024-results-302132069.html

SOURCE LendingClub Corporation

FAQ

What were LendingClub's total assets in the first quarter of 2024?

LendingClub's total assets in the first quarter of 2024 were $9.2 billion.

What was LendingClub's net income in the first quarter of 2024?

LendingClub's net income in the first quarter of 2024 was $12.3 million.

What is LendingClub's financial outlook for the second quarter of 2024?

LendingClub's financial outlook for the second quarter of 2024 includes loan originations ranging from $1.6B to $1.8B and a Pre-Provision Net Revenue of $30M to $40M.