LendingClub Reports Fourth Quarter and Full Year 2021 Results

Rhea-AI Summary

LendingClub Corporation (NYSE: LC) reported significant financial results for Q4 and the full year of 2021. Total revenue reached $818.6 million, up 157% from 2020, while net income turned positive at $18.6 million compared to a loss of $187.5 million the previous year. Q4 revenue was $262.2 million, with net income of $29.1 million. The company anticipates revenue growth to exceed $1 billion in 2022, driven by a transformed business model and an increase in membership and product offerings.

Positive

• Revenue increased by 157% YoY to $818.6 million.
• Achieved GAAP profitability with net income of $18.6 million in 2021.
• New recurring net interest income rose 259% YoY.
• Q4 net income grew by 7% sequentially to $29.1 million.

Negative

• Marketplace revenue declined 2% sequentially in Q4 2021.
• Q4 net income negatively impacted by $56.6 million in notable items.

SAN FRANCISCO, Jan. 26, 2022 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2021.

"We have closed out a transformative year at LC by delivering the growth, innovation, and efficiency of a fintech along with the funding advantages, revenue diversity, and regulatory clarity of a bank," said Scott Sanborn, LendingClub's CEO. "We expect our transformed business model and data and membership advantages to help drive more than $100 million in incremental earnings in 2022 as we continue to evolve our member-focused business into a multi-product, digital marketplace bank."

Record Full Year 2021 Results Driven by Return to Growth, Transformed Business Economics and Increased Operational Efficiency

• Revenue of $818.6 million, up 157% compared to 2020, with marketplace revenue 136% higher and the new recurring stream of net interest income 259% higher year-over-year.
• Achieved GAAP profitability during 2021, with net income of $18.6 million for the year ended December 31, 2021, compared to a net loss of $187.5 million in 2020.
• Results driven by initiatives undertaken in 2021 and in prior years to improve efficiency, as well as the transformational business model changes with the bank acquisition, both of which position LendingClub well to generate continued strong revenue and earnings growth.
• Key achievements for the year include acquiring and integrating the bank, consolidating the personal, auto refinance and purchase finance loans onto one origination platform, and accelerating membership acquisition.

Record Fourth Quarter 2021 Results Exceed Expectations

• Revenue of $262.2 million, with sequential growth of 7% outpacing growth in originations.
• New recurring stream of net interest income grew 27% sequentially to $83.1 million, as the bank's loan portfolio (excluding PPP loans and including $248.9 million of yacht loans transferred to held for sale) grew 22% from September 30, 2021.
• Marketplace revenue of $170.6 million declined 2% sequentially, primarily reflecting a reduction in loans sold through the marketplace as loan retention increased from 20% in the third quarter of 2021 to 25% of total originations in the fourth quarter of 2021, driving 43% growth in the personal loan portfolio retained on the balance sheet at period end.
• Deposits grew 10% sequentially to $3.1 billion, in line with growth in our loans held for investment.
• Net income of $29.1 million, up 7% sequentially, and diluted earnings per share of $0.27 as strong revenue growth exceeded the impact of investments in loan retention, marketing and technology.
• Net income was negatively impacted by $56.6 million of notable items: $39.5 million of Current Expected Credit Loss (CECL) provisioning, less net charge-offs, and $17.1 million of net revenue deferrals both driven by strong retained loan growth. These items reduced our earnings per share by $0.53 in the fourth quarter of 2021.

 

	Three Months Ended									Year Ended
($ in millions)	December 31, 2021			September 30, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Loan originations(1)	$	3,069.1		$	3,106.7		$	912.0		$	10,381.3		$	4,343.4
Total revenue	$	262.2		$	246.2		$	75.9		$	818.6		$	318.1
Consolidated net income (loss)	$	29.1		$	27.2		$	(26.7)		$	18.6		$	(187.5)

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

 

Financial Outlook

(millions)	First Quarter 2022	Full Year 2022
Total revenue	$255M to $265M	$1.1B to $1.2B
Consolidated net income	$25M to $30M	$130M to $150M

 

Notable Items Impacting Fourth Quarter 2021 Consolidated Net Income

(millions)	Consolidated Net Income Impact(1)	Per Diluted Share Impact	Commentary
Revenue deferrals, net of amortization	$(17.1)	$0.16	Origination fee and cost deferrals, net of interest income amortization during the period
Provision for credit losses, less net charge-offs	$(39.5)	$0.37	Primarily for consumer loans originated and retained in the quarter
Total	$(56.6)	$0.53

(1)	Amounts presented net of tax.

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 $70 billion in loans, our artificial intelligence-driven 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 3.9 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 fourth 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, January 26, 2022. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 1727043, 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 February 2, 2022, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 5387149. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), Twitter handle (@LendingClub) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

Contacts

For Investors:
IR@lendingclub.com

Media Contact:
Press@lendingclub.com

Safe Harbor Statement

Some of the statements above, including statements regarding our competitive advantages, ability to grow and evolve our business, 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
	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			Q/Q			Y/Y
Operating Highlights:
Non-interest income	$     179,111			$      180,878			$    158,476			$      87,334			$        72,597			(1)	%		147	%
Net interest income	$       83,132			$        65,288			$      45,905			$      18,506			2,899			27	%		N/M
Total net revenue	$     262,243			$      246,166			$    204,381			$    105,840			$        75,496			7	%		247	%
Consolidated net income (loss)	$       29,108			$        27,185			$        9,371			$     (47,084)			$       (26,655)			7	%		N/M
Basic EPS – common stockholders	$           0.29			$            0.27			$          0.10			$         (0.49)			$           (0.29)			7	%		N/M
Diluted EPS – common stockholders	$           0.27			$            0.26			$          0.09			$         (0.49)			$           (0.29)			4	%		N/M
LendingClub Bank Performance Metrics:
Net interest margin	8.3	%		7.1	%		5.5	%		3.3	%		N/A
Efficiency ratio (1)	69.5	%		67.5	%		69.0	%		104.8	%		N/A
Return on average equity (ROE)	21.7	%		26.5	%		34.7	%		N/A			N/A
Return on average total assets (ROA)	3.10	%		3.7	%		4.7	%		N/A			N/A
LendingClub Bank Capital Ratios:
Common Equity Tier 1 Capital Ratio	16.7	%		18.0	%		18.7	%		20.9	%		N/A
Tier 1 Leverage Ratio	14.3	%		14.1	%		13.5	%		12.9	%		N/A
Consolidated LendingClub Corporation Performance Metrics:
Net interest margin	7.6	%		6.3	%		4.7	%		1.8	%		0.7	%
Efficiency ratio (1)	71.8	%		72.6	%		78.4	%		126.8	%		N/A
Return on average equity (ROE)	14.1	%		13.8	%		5.0	%		N/A			N/A
Return on average total assets (ROA)	2.4	%		2.4	%		0.8	%		N/A			N/A
Marketing expense as a % of loan originations	1.7	%		1.6	%		1.3	%		1.3	%		0.9	%
Loan originations (in millions) (2):
Marketplace loans	$         2,308			$          2,471			$        2,182			$        1,139			$             912			(7)	%		153	%
Loan originations held for investment	$            761			$             636			$           541			$           344			$               —			20	%		N/A
Total loan originations	$         3,069			$          3,107			$        2,722			$        1,483			$             912			(1)	%		237	%
Servicing portfolio AUM (in millions) (3)	$       12,463			$        11,592			$      10,741			$      10,271			$        11,002			8	%		(6)	%
Balance Sheet Data:
Loans and leases held for investment, net, excluding PPP loans	$  2,486,440			$   2,235,698			$ 1,791,492			$ 1,414,900			$               —			11	%		N/A
PPP loans	$     268,297			$      367,558			$    507,553			$    664,400			$               —			(27)	%		N/A
Total loans and leases held for investment, net	$  2,754,737			$   2,603,256			$ 2,299,045			$ 2,079,300			$               —			6	%		N/A
Total assets	$  4,900,319			$   4,750,760			$ 4,370,101			$ 4,491,089			$   1,863,293			3	%		163	%
Total deposits	$  3,135,788			$   2,838,719			$ 2,539,704			$ 2,373,437			$               —			10	%		N/A
Total liabilities	$  4,050,077			$   3,945,970			$ 3,607,742			$ 3,757,954			$   1,139,122			3	%		256	%
Total equity	$     850,242			$      804,790			$    762,359			$    733,135			$      724,171			6	%		17	%
Allowance Ratios:
Allowance for loan and lease losses to total loans and leases held for investment	5.0	%		3.9	%		3.0	%		1.7	%		N/A
Allowance for loan and lease losses to total loans and leases held for investment, excluding PPP loans	5.5	%		4.5	%		3.8	%		2.5	%		N/A
Allowance for loan and lease losses to consumer loans and leases held for investment	6.4	%		5.2	%		4.3	%		2.3	%		N/A
Allowance for loan and lease losses to commercial loans and leases held for investment	1.8	%		1.6	%		1.5	%		1.3	%		N/A
Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans	2.6	%		2.6	%		2.8	%		1.7	%		N/A

N/M – Not meaningful
N/A – Not applicable
(1)	Calculated as the ratio of non-interest expense to total net revenue.
(2)	Includes unsecured personal loans, auto loans, and education and patient finance loans only.
(3)	Loans serviced on our platform, which includes personal and auto loans serviced for others and retained for investment by the Company.

 

LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR INVESTMENT
(In thousands, except percentages or as noted)
(Unaudited)
	December 31, 2021		September 30, 2021
Unsecured personal	$            1,804,578		$            1,258,279
Residential mortgages	151,362		141,200
Secured consumer	65,976		314,539
Other consumer	—		1,220
Total consumer loans held for investment	2,021,916		1,715,238
Equipment finance (1)	149,155		157,457
Commercial real estate	310,399		316,135
Commercial and industrial (2)	417,656		519,162
Total commercial loans and leases held for investment	877,210		992,754
Total loans and leases held for investment	2,899,126		2,707,992
Allowance for loan and lease losses	(144,389)		(104,736)
Loans and leases held for investment, net	$            2,754,737		$            2,603,256

(1)	Comprised of sales-type leases for equipment.
(2)	Includes $268.3 million and $367.6 million of Paycheck Protection Program (PPP) loans as of December 31, 2021 and September 30, 2021, respectively. Such loans are guaranteed by the Small Business Association and, therefore, the Company determined no allowance for expected credit losses is required on these loans.

 

LENDINGCLUB CORPORATION
ALLOWANCE FOR LOAN AND LEASE LOSSES
(In thousands, except percentages or as noted)
(Unaudited)
	Three Months Ended
	December 31, 2021						September 30, 2021
	Consumer		Commercial		Total		Consumer		Commercial		Total
Allowance for loan and lease losses, beginning of period	$       88,631		$          16,105		$ 104,736		$       54,058		$          17,023		$   71,081
Credit loss expense for loans and leases held for investment	45,595		(306)		45,289		37,695		(562)		37,133
Charge-offs	(5,557)		(313)		(5,870)		(3,142)		(1,194)		(4,336)
Recoveries	143		91		234		20		838		858
Allowance for loan and lease losses, end of period	$     128,812		$          15,577		$ 144,389		$       88,631		$          16,105		$ 104,736

 

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
	Three Months Ended
	December 31, 2021		September 30, 2021		Change (%)
Non-interest income:
Marketplace revenue (1)	$           170,562		$           174,556		(2)	%
Other non-interest income	8,549		6,322		35	%
Total non-interest income	179,111		180,878		(1)	%
Interest income:
Interest on loans held for sale	7,153		8,536		(16)	%
Interest and fees on loans and leases held for investment	76,964		57,644		34	%
Interest on retail and certificate loans held for investment at fair value	9,236		12,172		(24)	%
Interest on other loans held for investment at fair value	762		973		(22)	%
Interest on securities available for sale	3,071		3,180		(3)	%
Other interest income	469		355		32	%
Total interest income	97,655		82,860		18	%
Interest expense:
Interest on deposits	2,616		1,899		38	%
Interest on short-term borrowings	561		849		(34)	%
Interest on retail notes, certificates and secured borrowings	9,236		12,172		(24)	%
Interest on Structured Program borrowings	1,642		2,120		(23)	%
Interest on other long-term debt	468		532		(12)	%
Total interest expense	14,523		17,572		(17)	%
Net interest income	83,132		65,288		27	%
Total net revenue	262,243		246,166		7	%
Provision for credit losses	45,149		37,524		20	%
Non-interest expense:
Compensation and benefits	78,741		73,304		7	%
Marketing	50,708		50,782		—	%
Equipment and software	12,019		10,297		17	%
Occupancy	4,706		6,486		(27)	%
Depreciation and amortization	10,462		10,549		(1)	%
Professional services	12,699		11,750		8	%
Other non-interest expense	18,885		15,607		21	%
Total non-interest expense	188,220		178,775		5	%
Income before income tax expense (benefit)	28,874		29,867		(3)	%
Income tax expense (benefit)	(234)		2,682		N/M
Consolidated net income	$              29,108		$              27,185		7	%
Net income per share attributable to common stockholders – Basic	$                  0.29		$                  0.27
Net income per share attributable to common stockholders – Diluted	$                  0.27		$                  0.26
Weighted-average common shares – Basic	100,320,691		99,073,507
Weighted-average common shares – Diluted	108,096,823		106,108,662
N/M – Not meaningful

 

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(In thousands, except share and per share data)
(Unaudited)
(1) Marketplace revenue consists of the following:
	Three Months Ended
	December 31, 2021		September 30, 2021		Change (%)
Origination fees	$            118,353		$            129,125		(8)	%
Servicing fees	20,940		20,819		1	%
Gain on sales of loans	20,569		21,907		(6)	%
Net fair value adjustments	10,700		2,705		N/M
Total marketplace revenue	$            170,562		$            174,556		(2)	%

 

LENDINGCLUB CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
	Year Ended December 31,
	2021		2020(1)		Change (%)
Non-interest income:
Marketplace revenue (2)	$           578,580		$           245,314		136	%
Other non-interest income	27,219		13,442		102	%
Total non-interest income	605,799		258,756		134	%
Interest income:
Interest on loans held for sale	29,540		72,876		(59)	%
Interest and fees on loans and leases held for investment	188,977		—		N/M
Interest on retail and certificate loans held for investment at fair value	57,684		115,952		(50)	%
Interest on other loans held for investment at fair value	4,436		7,688		(42)	%
Interest on securities available for sale	11,025		12,125		(9)	%
Other interest income	1,170		1,053		11	%
Total interest income	292,832		209,694		40	%
Interest expense:
Interest on deposits	7,228		—		N/M
Interest on short-term borrowings	3,677		17,837		(79)	%
Interest on retail notes, certificates and secured borrowings	57,684		115,952		(50)	%
Interest on Structured Program borrowings	9,638		16,204		(41)	%
Interest on other long-term debt	1,774		373		N/M
Total interest expense	80,001		150,366		(47)	%
Net interest income	212,831		59,328		259	%
Total net revenue	818,630		318,084		157	%
Provision for credit losses	138,800		3,382		N/M
Non-interest expense:
Compensation and benefits	288,390		252,517		14	%
Marketing	156,142		51,518		203	%
Equipment and software	39,490		26,842		47	%
Occupancy	24,249		27,870		(13)	%
Depreciation and amortization	44,285		54,030		(18)	%
Professional services	47,572		41,780		14	%
Other non-interest expense	61,258		47,762		28	%
Total non-interest expense	661,386		502,319		32	%
Income (Loss) before income tax expense (benefit)	18,444		(187,617)		N/M
Income tax expense (benefit)	(136)		(79)		N/M
Consolidated net income (loss)	$              18,580		$          (187,538)		N/M
Basic EPS – common stockholders	$                  0.19		$                 (2.63)
Diluted EPS – common stockholders	$                  0.18		$                 (2.63)
Weighted-average common shares – Basic	97,486,754		77,934,302
Weighted-average common shares – Diluted	102,147,353		77,934,302
Basic EPS – preferred stockholders	$                  0.19		$                  1.39
Diluted EPS – preferred stockholders	$                  0.00		$                  1.39
Weighted-average common shares, as converted – Basic	653,118		12,505,393
Weighted-average common shares, as converted – Diluted	—		12,505,393
N/M – Not meaningful
(1)  Prior period amounts have been reclassified to conform to the current period presentation.
(2)  Marketplace revenue consists of the following:
	Year Ended December 31,
	2021		2020		Change (%)
Origination fees	$            416,839		$            207,640		101	%
Servicing fees	87,639		111,864		(22)	%
Gain on sales of loans	70,116		30,812		128	%
Net fair value adjustments	3,986		(105,002)		N/M
Total marketplace revenue	$            578,580		$            245,314		136	%

 

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT
(In thousands, except share and per share data)
(Unaudited)
	Three months ended December 31, 2021
	LendingClub Bank		LendingClub Corporation (Parent only)		Intercompany Eliminations		Total
Non-interest income:
Marketplace revenue	$              146,936		$                 23,626		$                         —		$              170,562
Other non-interest income	21,520		4,199		(17,170)		8,549
Total non-interest income	168,456		27,825		(17,170)		179,111
Interest income:
Interest income	83,310		14,345		—		97,655
Interest expense	(2,923)		(11,600)		—		(14,523)
Net interest income	80,387		2,745		—		83,132
Total net revenue	248,843		30,570		(17,170)		262,243
Reversal of (provision for) credit losses	(45,244)		95		—		(45,149)
Non-interest expense	(173,017)		(32,373)		17,170		(188,220)
Income (Loss) before income tax benefit (expense)	30,582		(1,708)		—		28,874
Income tax benefit (expense)	1,305		20,192		(21,263)		234
Consolidated net income (loss)	$                 31,887		$                 18,484		$               (21,263)		$                 29,108
	Three Months Ended September 30, 2021
	LendingClub Bank		LendingClub Corporation (Parent only)		Intercompany Eliminations		Total
Non-interest income:
Marketplace revenue	$              151,109		$                 23,447		$                         —		$              174,556
Other non-interest income	25,393		4,140		(23,211)		6,322
Total non-interest income	176,502		27,587		(23,211)		180,878
Interest income:
Interest income	64,606		18,254		—		82,860
Interest expense	(2,270)		(15,302)		—		(17,572)
Net interest income	62,336		2,952		—		65,288
Total net revenue	238,838		30,539		(23,211)		246,166
Reversal of (provision for) credit losses	(38,019)		495		—		(37,524)
Non-interest expense	(161,101)		(40,885)		23,211		(178,775)
Income (Loss) before income tax benefit	39,718		(9,851)		—		29,867
Income tax benefit (expense)	(4,670)		12,607		(10,619)		(2,682)
Consolidated net income (loss)	$                 35,048		$                   2,756		$               (10,619)		$                 27,185

 

LENDINGCLUB BANK
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
	LendingClub Bank
	Three Months Ended December 31, 2021							Three Months Ended September 30, 2021
	Average Balance		Interest Income/ Expense		Average Yield/ Rate			Average Balance		Interest Income/ Expense		Average Yield/ Rate
Interest-earning assets (1)
Cash, cash equivalents and restricted cash	$       651,003		$              468		0.29	%		$       695,294		$              352		0.20	%
Securities available for sale at fair value	200,091		680		1.36	%		182,882		632		1.38	%
Loans held for sale	122,007		5,199		17.04	%		145,262		5,978		16.46	%
Loans and leases held for investment:
Unsecured personal loans	1,542,285		60,383		15.66	%		991,297		39,532		15.95	%
Secured consumer loans	436,260		4,029		3.69	%		464,194		4,688		4.04	%
Commercial loans and leases	619,648		8,663		5.59	%		616,823		7,887		5.11	%
PPP loans	325,133		3,888		4.78	%		436,785		5,537		5.07	%
Loans and leases held for investment	2,923,326		76,963		10.53	%		2,509,099		57,644		9.19	%
Total interest-earning assets	3,896,427		83,310		8.55	%		3,532,537		64,606		7.32	%
Cash and due from banks	23,362							29,290
Allowance for loan and lease losses	(125,120)							(86,686)
Other non-interest earning assets	326,402							270,594
Total assets	$    4,121,071							$    3,745,735
Interest-bearing liabilities
Interest-bearing deposits
Checking and money market accounts	$    2,146,687		$           1,716		0.32	%		$    2,221,365		$           1,707		0.30	%
Savings accounts and certificates of deposit	580,361		900		0.62	%		307,807		192		0.25	%
Interest-bearing deposits	2,727,048		2,616		0.38	%		2,529,172		1,899		0.30	%
Short-term borrowings	282		—		—	%		321		—		—	%
Advances from PPPLF	342,335		307		0.36	%		416,748		371		0.36	%
Total interest-bearing liabilities	3,069,665		2,923		0.38	%		2,946,241		2,270		0.31	%
Non-interest bearing deposits	283,066							114,065
Other liabilities	179,752							155,806
Total liabilities	$    3,532,483							$    3,216,112
Total equity	$       588,588							$       529,623
Total liabilities and equity	$    4,121,071							$    3,745,735
Interest rate spread					8.17	%						7.01	%
Net interest income and net interest margin			$         80,387		8.25	%				$         62,336		7.06	%

(1)     Nonaccrual loans and any related income are included in their respective loan categories.

 

LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
	Three Months Ended December 31, 2021
	LendingClub Bank							LendingClub Corporation (Parent only)							Consolidated LendingClub Corporation
	Average Balance		Interest Income/ Expense		Average Yield/ Rate			Average Balance		Interest Income/ Expense		Average Yield/ Rate			Average Balance		Interest Income/ Expense		Average Yield/ Rate
Interest-earning assets (1)
Cash, cash equivalents and restricted cash	$    651,003		$       467		0.29	%		$      59,469		$            2		0.01	%		$    710,472		$       469		0.26	%
Securities available for sale at fair value	200,091		680		1.36	%		65,049		2,391		14.70	%		265,140		3,071		4.63	%
Loans held for sale at fair value	122,007		5,199		17.04	%		62,701		1,954		12.47	%		184,708		7,153		15.49	%
Loans and leases held for investment:
Unsecured personal loans	1,542,285		60,384		15.66	%		—		—		—	%		1,542,285		60,384		15.66	%
Secured consumer loans	436,260		4,029		3.69	%		—		—		—	%		436,260		4,029		3.69	%
Commercial loans and leases	619,648		8,663		5.59	%		—		—		—	%		619,648		8,663		5.59	%
PPP loans	325,133		3,888		4.78	%		—		—		—	%		325,133		3,888		4.78	%
Loans and leases held for investment	2,923,326		76,964		10.53	%		—		—		—	%		2,923,326		76,964		10.53	%
Retail and certificate loans held for investment at fair value	—		—		—	%		262,548		9,236		14.07	%		262,548		9,236		14.07	%
Other loans held for investment at fair value	—		—		—	%		24,184		762		12.60	%		24,184		762		12.60	%
Total interest-earning assets	3,896,427		83,310		8.55	%		473,951		14,345		12.11	%		4,370,378		97,655		8.94	%
Cash and due from banks and restricted cash	23,362							121,270							73,258
Allowance for loan and lease losses	(125,120)							—							(125,120)
Other non-interest earning assets	326,402							763,808							465,010
Total assets	$ 4,121,071							$ 1,359,029							$ 4,783,526
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts	$ 2,146,687		$    1,716		0.32	%		$             —		$          —		—	%		$ 2,146,687		$    1,716		0.32	%
Savings accounts and certificates of deposit	580,361		900		0.62	%		—		—		—	%		580,361		900		0.62	%
Interest-bearing deposits	2,727,048		2,616		0.38	%		—		—		—	%		2,727,048		2,616		0.38	%
Short-term borrowings	282		—		—	%		36,541		561		6.13	%		36,823		561		6.08	%
Advances from PPPLF	342,335		307		0.36	%		—		—		—	%		342,335		307		0.36	%
Retail notes, certificates and secured borrowings	—		—		—	%		262,548		9,236		14.07	%		262,548		9,236		14.07	%
Structured Program borrowings	—		—		—	%		77,354		1,642		8.49	%		77,354		1,642		8.49	%
Other long-term debt	—		—		—	%		15,514		161		4.15	%		15,514		161		4.15	%
Total interest-bearing liabilities	3,069,665		2,923		0.38	%		391,957		11,600		11.84	%		3,461,622		14,523		1.68	%
Non-interest bearing deposits	283,066							—							211,692
Other liabilities	179,752							162,938							282,339
Total liabilities	$ 3,532,483							$    554,895							$ 3,955,653
Total equity	$    588,588							$    804,134							$    827,873
Total liabilities and equity	$ 4,121,071							$ 1,359,029							$ 4,783,526
Interest rate spread					8.17	%						0.27	%						7.26	%
Net interest income and net interest margin			$  80,387		8.25	%				$     2,745		2.32	%				$  83,132		7.61	%

(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 September 30, 2021
	LendingClub Bank							LendingClub Corporation (Parent only)							Consolidated LendingClub Corporation
	Average Balance		Interest Income/ Expense		Average Yield/ Rate			Average Balance		Interest Income/ Expense		Average Yield/ Rate			Average Balance		Interest Income/ Expense		Average Yield/ Rate
Interest-earning assets (1)
Cash, cash equivalents and restricted cash	$    695,294		$       352		0.20	%		$      83,405		$            3		0.01	%		$    778,667		$       355		0.18	%
Securities available for sale at fair value	182,882		632		1.38	%		83,804		2,548		12.16	%		266,686		3,180		4.77	%
Loans held for sale at fair value	145,262		5,978		16.46	%		81,160		2,558		12.60	%		226,422		8,536		15.08	%
Loans and leases held for investment:
Unsecured personal loans	991,297		39,532		15.95	%		—		—		—	%		991,297		39,532		15.95	%
Secured consumer loans	464,194		4,688		4.04	%		—		—		—	%		464,194		4,688		4.04	%
Commercial loans and leases	616,823		7,887		5.11	%		—		—		—	%		616,823		7,887		5.11	%
PPP loans	436,785		5,537		5.07	%		—		—		—	%		436,785		5,537		5.07	%
Loans and leases held for investment	2,509,099		57,644		9.19	%		—		—		—	%		2,509,099		57,644		9.19	%
Retail and certificate loans held for investment at fair value	—		—		—	%		344,205		12,172		14.15	%		344,205		12,172		14.15	%
Other loans held for investment at fair value	—		—		—	%		30,981		973		12.58	%		30,981		973		12.58	%
Total interest-earning assets	3,532,537		64,606		7.32	%		623,555		18,254		11.71	%		4,156,060		82,860		7.97	%
Cash and due from banks and restricted cash	29,290							99,985							96,733
Allowance for loan and lease losses	(86,686)							—							(86,686)
Other non-interest earning assets	270,594							760,131							449,964
Total assets	$ 3,745,735							$ 1,483,671							$ 4,616,071
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts	$ 2,221,365		$    1,707		0.30	%		$             —		$          —		—	%		$ 2,221,365		$    1,707		0.30	%
Savings accounts and certificates of deposit	307,807		192		0.25	%		—		—		—	%		307,807		192		0.25	%
Interest-bearing deposits	2,529,172		1,899		0.30	%		—		—		—	%		2,529,172		1,899		0.30	%
Short-term borrowings	321		—		—	%		56,903		849		5.97	%		57,224		849		5.93	%
Advances from PPPLF	416,748		371		0.36	%		—		—		—	%		416,748		371		0.36	%
Retail notes, certificates and secured borrowings	—		—		—	%		344,087		12,173		14.15	%		344,087		12,173		14.15	%
Structured Program borrowings	—		—		—	%		100,178		2,119		8.46	%		100,178		2,119		8.46	%
Other long-term debt	—		—		—	%		15,606		161		4.13	%		15,606		161		4.13	%
Total interest-bearing liabilities	2,946,241		2,270		0.31	%		516,774		15,302		11.84	%		3,463,015		17,572		2.03	%
Non-interest bearing deposits	114,065							—							81,491
Other liabilities	155,806							183,962							285,292
Total liabilities	$ 3,216,112							$    700,736							$ 3,829,798
Total equity	$    529,623							$    782,935							$    786,273
Total liabilities and equity	$ 3,745,735							$ 1,483,671							$ 4,616,071
Interest rate spread					7.01	%						(0.13)	%						5.95	%
Net interest income and net interest margin			$  62,336		7.06	%				$     2,952		1.89	%				$  65,288		6.28	%

(1)	Consolidated presentation reflects intercompany eliminations.
(2)	Nonaccrual loans and any related income are included in their respective loan categories.

 

LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
	December 31, 2021		December 31, 2020
Assets
Cash and due from banks	$                35,670		$              5,197
Interest-bearing deposits in banks	651,456		519,766
Total cash and cash equivalents	687,126		524,963
Restricted cash	76,460		103,522
Securities available for sale at fair value (includes $256,170 and $159,164 at amortized cost, respectively)	263,530		142,226
Loans held for sale (includes $142,370 and $121,902 at fair value, respectively)	391,248		121,902
Loans and leases held for investment	2,899,126		—
Allowance for loan and lease losses	(144,389)		—
Loans and leases held for investment, net	2,754,737		—
Retail and certificate loans held for investment at fair value	229,719		636,686
Other loans held for investment at fair value	21,240		49,954
Property, equipment and software, net	97,996		96,641
Goodwill	75,717		—
Other assets	302,546		187,399
Total assets	$          4,900,319		$      1,863,293
Liabilities and Equity
Deposits:
Interest-bearing	$          2,919,203		$                    —
Noninterest-bearing	216,585		—
Total deposits	3,135,788		—
Short-term borrowings	27,780		104,989
Advances from Paycheck Protection Program Liquidity Facility (PPPLF)	271,933		—
Retail notes, certificates and secured borrowings at fair value	229,719		636,774
Payable on Structured Program borrowings	65,451		152,808
Other long-term debt	15,455		—
Other liabilities	303,951		244,551
Total liabilities	4,050,077		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; 101,043,924 and 88,149,510 shares issued and outstanding, respectively	1,010		881
Additional paid-in capital	1,609,820		1,508,020
Accumulated deficit	(767,634)		(786,214)
Accumulated other comprehensive income	7,046		1,484
Total equity	850,242		724,171
Total liabilities and equity	$          4,900,319		$      1,863,293

 

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
	LendingClub Bank				LendingClub Corporation (Parent only)				Intercompany Eliminations				Total
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Assets
Total cash and cash equivalents	$        659,919		$               —		$          88,268		$       524,963		$         (61,061)		$               —		$        687,126		$       524,963
Restricted cash	—		—		76,540		103,522		(80)		—		76,460		103,522
Securities available for sale at fair value	205,730		—		57,800		142,226		—		—		263,530		142,226
Loans held for sale	335,449		—		55,799		121,902		—		—		391,248		121,902
Loans and leases held for investment, net	2,754,737		—		—		—		—		—		2,754,737		—
Retail and certificate loans held for investment at fair value	—		—		229,719		636,686		—		—		229,719		636,686
Other loans held for investment at fair value	—		—		21,240		49,954		—		—		21,240		49,954
Property, equipment and software, net	36,424		—		61,572		96,641		—		—		97,996		96,641
Investment in subsidiary	—		—		557,577		—		(557,577)		—		—		—
Goodwill	75,717		—		—		—		—		—		75,717		—
Other assets	254,075		—		168,042		187,399		(119,571)		—		302,546		187,399
Total assets	4,322,051		—		1,316,557		1,863,293		(738,289)		—		4,900,319		1,863,293
Liabilities and Equity
Total deposits	3,196,929		—		—		—		(61,141)		—		3,135,788		—
Short-term borrowings	165		—		27,615		104,989		—		—		27,780		104,989
Advances from PPPLF	271,933		—		—		—		—		—		271,933		—
Retail notes, certificates and secured borrowings at fair value	—		—		229,719		636,774		—		—		229,719		636,774
Payable on Structured Program borrowings	—		—		65,451		152,808		—		—		65,451		152,808
Other long-term debt	—		—		15,455		—		—		—		15,455		—
Other liabilities	218,775		—		150,727		244,551		(65,551)		—		303,951		244,551
Total liabilities	3,687,802		—		488,967		1,139,122		(126,692)		—		4,050,077		1,139,122
Total equity	634,249		—		827,590		724,171		(611,597)		—		850,242		724,171
Total liabilities and equity	$     4,322,051		$               —		$     1,316,557		$     1,863,293		$       (738,289)		$               —		$     4,900,319		$     1,863,293

 

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SOURCE LendingClub Corporation

FAQ

What were LendingClub Corporation's total revenues for 2021?

LendingClub reported total revenues of $818.6 million for 2021.

How much did LendingClub earn in net income for Q4 2021?

LendingClub earned $29.1 million in net income for Q4 2021.

What is the financial outlook for LendingClub in 2022?

LendingClub expects total revenue between $1.1 billion and $1.2 billion for 2022.

What growth did LendingClub see in net interest income?

Net interest income grew by 259% year-over-year.

Did LendingClub experience any revenue declines in Q4 2021?

Yes, marketplace revenue declined by 2% sequentially in Q4 2021.