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LendingClub Reports First Quarter 2024 Results

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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.

LendingClub ha riportato risultati positivi per il primo trimestre del 2024, caratterizzati da forti originazioni di prestiti e una solida performance creditizia, segnando il loro dodicesimo trimestre consecutivo di redditività GAAP. L'azienda ha mostrato una solida performance finanziaria con attivi totali pari a 9,2 miliardi di dollari, depositi per 7,5 miliardi di dollari e un fatturato netto di 180,7 milioni di dollari. Nonostante una leggera diminuzione del fatturato, LendingClub ha dimostrato una forte posizione di capitale con un impressionante rapporto di leva di primo livello del 12,5% e un rapporto di capitale comune di Tier 1 del 17,6%. Il reddito netto dell'azienda è aumentato a 12,3 milioni di dollari con un EPS diluito di 0,11$. Le previsioni finanziarie di LendingClub per il secondo trimestre del 2024 includono originazioni di prestiti tra 1,6 e 1,8 miliardi di dollari e un reddito netto pre-provvisionamento tra 30 e 40 milioni di dollari.
LendingClub informó resultados sólidos para el primer trimestre de 2024, impulsados por fuertes originaciones de préstamos y un rendimiento crediticio robusto, marcando su duodécimo trimestre consecutivo de rentabilidad según los principios de contabilidad generalmente aceptados (GAAP). La compañía exhibió un sólido desempeño financiero con activos totales de 9,2 mil millones de dólares, depósitos de 7,5 mil millones de dólares y un ingreso neto de 180,7 millones de dólares. A pesar de una ligera disminución en los ingresos, LendingClub demostró una fuerte posición de capital con una impresionante relación de apalancamiento de Tier 1 de 12,5% y una relación de capital común de Tier 1 de 17,6%. El ingreso neto de la compañía aumentó a 12,3 millones de dólares con un EPS diluido de 0,11$. Las perspectivas financieras de LendingClub para el segundo trimestre de 2024 incluyen originaciones de préstamos de entre 1,6 y 1,8 mil millones de dólares y un ingreso neto pre-provisión de 30 a 40 millones de dólares.
LendingClub은 2024년 1분기에 견고한 대출 기원과 신용 성과를 바탕으로 강력한 실적을 보고했으며, 이는 연속 12분기째 GAAP 수익성을 달성한 것입니다. 회사는 총 자산 92억 달러, 예금 75억 달러, 순수입 1억 8070만 달러로 견고한 재무 성과를 보였습니다. 수익이 소폭 감소했음에도 불구하고 LendingClub은 1차 레버리지 비율이 12.5%, Tier 1 공통자본 비율이 17.6%로 인상적인 자본 위치를 입증했습니다. 회사의 순이익은 1230만 달러로 증가했으며 희석 주당이익은 0.11달러였습니다. LendingClub의 2024년 2분기 재무 전망은 대출 기원이 16억에서 18억 달러 사이이며, 대손충당금 이전 순수입은 3000만에서 4000만 달러입니다.
LendingClub a rapporté de solides résultats pour le premier trimestre de 2024, soutenus par des originations de prêts robustes et une performance de crédit solide, marquant leur douzième trimestre consécutif de rentabilité GAAP. L'entreprise a démontré une performance financière solide avec des actifs totaux de 9,2 milliards de dollars, des dépôts de 7,5 milliards de dollars et un revenu net de 180,7 millions de dollars. Malgré une légère baisse des revenus, LendingClub a prouvé une forte position capitalistique avec un ratio de levier de Tier 1 impressionnant de 12,5 % et un ratio de capitaux propres de Tier 1 de 17,6 %. Le revenu net de l'entreprise a augmenté à 12,3 millions de dollars avec un BPA dilué de 0,11 $. Les perspectives financières de LendingClub pour le deuxième trimestre 2024 incluent des originations de prêts allant de 1,6 à 1,8 milliard de dollars et un revenu net avant provisions de 30 à 40 millions de dollars.
LendingClub meldete starke Ergebnisse für das erste Quartal 2024, angetrieben durch robuste Kreditvergaben und Kreditperformance, was das zwölfte aufeinanderfolgende Quartal der GAAP-Gewinnfähigkeit markiert. Das Unternehmen zeigte eine solide finanzielle Leistung mit Gesamtvermögen von 9,2 Milliarden Dollar, Einlagen von 7,5 Milliarden Dollar und einem Nettoerlös von 180,7 Millionen Dollar. Trotz eines leichten Rückgangs des Erlöses demonstrierte LendingClub eine starke Kapitalposition mit einem beeindruckenden Tier 1-Hebelverhältnis von 12,5% und einem Common Equity Tier 1-Kapitalverhältnis von 17,6%. Der Nettogewinn des Unternehmens stieg auf 12,3 Millionen Dollar mit einem verwässerten EPS von 0,11$. Die finanzielle Prognose von LendingClub für das zweite Quartal 2024 beinhaltet Kreditvergaben im Bereich von 1,6 bis 1,8 Milliarden Dollar und ein Vor-Provisions-Nettoeinkommen von 30 bis 40 Millionen Dollar.
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

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.

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

 

Cision 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.

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LendingClub Corporation

NYSE:LC

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