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LendingClub Reports Fourth Quarter and Full Year 2024 Results

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LendingClub (NYSE: LC) reported strong Q4 2024 results with significant growth across key metrics. Loan originations increased 13% to $1.85 billion, while total net revenue grew 17% to $217.2 million compared to the prior year. Total assets reached $10.6 billion, up 20% year-over-year.

The company's deposits grew 24% to $9.1 billion, with LevelUp Savings reaching nearly $1.2 billion by year-end. Net income was $9.7 million, with a Return on Equity of 2.9%. The company maintained strong capital positions with a Tier 1 leverage ratio of 11.0% and CET1 capital ratio of 17.3%.

Looking ahead to 2025, LendingClub projects Q1 loan originations between $1.8B to $1.9B and expects to exceed $2.3B in originations by Q4 2025, with a Return on Tangible Common Equity target of over 8%.

LendingClub (NYSE: LC) ha riportato risultati solidi per il quarto trimestre del 2024 con una crescita significativa in vari indicatori chiave. Le origini dei prestiti sono aumentate del 13% raggiungendo 1,85 miliardi di dollari, mentre il fatturato netto totale è cresciuto del 17% a 217,2 milioni di dollari rispetto all'anno precedente. Il totale degli attivi ha raggiunto 10,6 miliardi di dollari, con un incremento del 20% anno su anno.

I depositi dell'azienda sono aumentati del 24% fino a 9,1 miliardi di dollari, con LevelUp Savings che ha raggiunto quasi 1,2 miliardi di dollari entro la fine dell'anno. L'utile netto è stato di 9,7 milioni di dollari, con un ritorno sul capitale proprio del 2,9%. L'azienda ha mantenuto solide posizioni di capitale con un rapporto di leva Tier 1 dell'11,0% e un rapporto di capitale CET1 del 17,3%.

Guardando al 2025, LendingClub prevede per il primo trimestre origini di prestiti comprese tra 1,8 miliardi e 1,9 miliardi di dollari e si aspetta di superare i 2,3 miliardi di dollari in origini entro il quarto trimestre del 2025, con un obiettivo di ritorno sul capitale comune tangibile superiore all'8%.

LendingClub (NYSE: LC) reportó resultados sólidos para el cuarto trimestre de 2024, con un crecimiento significativo en métricas clave. Las originaciones de préstamos aumentaron un 13% a $1.85 mil millones, mientras que los ingresos netos totales crecieron un 17% a $217.2 millones en comparación con el año anterior. Los activos totales alcanzaron $10.6 mil millones, un incremento del 20% en comparación anual.

Los depósitos de la compañía crecieron un 24% a $9.1 mil millones, con LevelUp Savings alcanzando casi $1.2 mil millones a fin de año. La utilidad neta fue de $9.7 millones, con un retorno sobre el patrimonio del 2.9%. La empresa mantuvo posiciones de capital sólidas con un ratio de apalancamiento Tier 1 del 11.0% y un ratio de capital CET1 del 17.3%.

De cara a 2025, LendingClub proyecta originaciones de préstamos para el primer trimestre entre $1.8 mil millones y $1.9 mil millones, y espera superar los $2.3 mil millones en originaciones para el cuarto trimestre de 2025, con un objetivo de retorno sobre el capital común tangible de más del 8%.

LendingClub (NYSE: LC)는 2024년 4분기에 주요 지표에서의 현저한 성장을 기록하며 강력한 실적을 보고했습니다. 대출 origination은 13% 증가하여 18억 5천만 달러에 달했으며, 총 순수익은 작년 대비 17% 증가한 2억 1720만 달러로 성장했습니다. 총 자산은 106억 달러에 도달하며 전년비 20% 증가했습니다.

회사의 예금은 24% 증가하여 91억 달러에 이르렀으며, LevelUp Savings는 연말까지 거의 12억 달러에 도달했습니다. 순이익은 970만 달러였으며, 자기자본 수익률은 2.9%였습니다. 회사는 Tier 1 레버리지 비율이 11.0%이고 CET1 자본 비율이 17.3%로 강력한 자본 위치를 유지했습니다.

2025년을 바라보며, LendingClub은 1분기 대출 origination을 18억에서 19억 달러 사이로 예상하며, 2025년 4분기까지 23억 달러를 초과할 것으로 보이며, 실질 공통 자기자본 수익률 목표는 8% 이상입니다.

LendingClub (NYSE: LC) a rapporté de solides résultats pour le quatrième trimestre de 2024, avec une croissance significative des indicateurs clés. Les origines de prêts ont augmenté de 13% pour atteindre 1,85 milliard de dollars, tandis que le chiffre d'affaires net total a augmenté de 17% pour atteindre 217,2 millions de dollars par rapport à l'année précédente. Les actifs totaux ont atteint 10,6 milliards de dollars, en hausse de 20% d'une année sur l'autre.

Les dépôts de l'entreprise ont augmenté de 24% pour atteindre 9,1 milliards de dollars, avec LevelUp Savings atteignant presque 1,2 milliard de dollars d'ici la fin de l'année. Le résultat net s'élevait à 9,7 millions de dollars, avec un retour sur fonds propres de 2,9%. L'entreprise a maintenu de solides positions de capital avec un ratio de levier de Tier 1 de 11,0% et un ratio de capital CET1 de 17,3%.

En regardant vers 2025, LendingClub prévoit des origines de prêts pour le premier trimestre entre 1,8 et 1,9 milliard de dollars et s'attend à dépasser 2,3 milliards de dollars d'origines d'ici le quatrième trimestre 2025, avec un objectif de retour sur capitaux propres tangibles de plus de 8%.

LendingClub (NYSE: LC) hat starke Ergebnisse für das 4. Quartal 2024 gemeldet, mit erheblichen Wachstumsraten in den wichtigsten Kennzahlen. Die Kreditvergaben stiegen um 13% auf 1,85 Milliarden US-Dollar, während der gesamte Nettoumsatz um 17% auf 217,2 Millionen US-Dollar im Vergleich zum Vorjahr wuchs. Die Gesamtaktiva erreichten 10,6 Milliarden US-Dollar, was einem Anstieg von 20% im Jahresvergleich entspricht.

Die Einlagen des Unternehmens wuchsen um 24% auf 9,1 Milliarden US-Dollar, wobei LevelUp Savings bis zum Jahresende fast 1,2 Milliarden US-Dollar erreichte. Der Nettogewinn betrug 9,7 Millionen US-Dollar, mit einer Eigenkapitalrendite von 2,9%. Das Unternehmen hielt starke Kapitalpositionen mit einer Tier-1-Leverage-Quote von 11,0% und einer CET1-Kapitalquote von 17,3%.

Für 2025 rechnet LendingClub im ersten Quartal mit Kreditvergaben zwischen 1,8 und 1,9 Milliarden US-Dollar und erwartet, bis zum vierten Quartal 2025 über 2,3 Milliarden US-Dollar in Kreditvergaben zu überschreiten, mit einem Ziel für die Rendite auf greifbares Eigenkapital von über 8%.

Positive
  • 13% increase in loan originations to $1.85 billion
  • 17% growth in total net revenue to $217.2 million
  • 24% growth in deposits to $9.1 billion
  • 34% increase in Pre-Provision Net Revenue to $74.3 million
  • Improvement in net charge-off ratio from 6.6% to 4.5%
Negative
  • Slight decrease in net income from $10.2M to $9.7M year-over-year
  • Decline in Return on Equity from 3.3% to 2.9%
  • Higher provision for credit losses at $63.2M vs $41.9M prior year
  • $3.2M non-cash impairment expense from Tally acquisition

Insights

LendingClub's Q4 2024 results reveal a compelling growth narrative coupled with improving operational efficiency. The 17% revenue growth to $217.2M was driven by enhanced marketplace loan sales pricing and expanded net interest income, reflecting successful execution of the company's hybrid business model.

Three key developments stand out: First, the $400M loan sale to a new bank buyer demonstrates strong institutional demand and validates LendingClub's marketplace platform. Second, deposit growth of 24% to $9.1B shows remarkable progress in funding diversification, with 87% being FDIC-insured - a critical factor for stability. The rapid accumulation of $1.2B in the new LevelUp Savings product indicates strong product-market fit.

Credit quality metrics show notable improvement, with net charge-offs declining to 4.5% from 6.6% YoY, despite broader market concerns about consumer credit. The robust capital position, evidenced by a 11.0% Tier 1 leverage ratio and 17.3% CET1 ratio, provides ample buffer for growth.

Looking forward, management's projection of >8% ROTCE by Q4 2025 (versus current 3.1%) and originations exceeding $2.3B suggests confidence in scaling efficiently. The 34% increase in Pre-Provision Net Revenue to $74.3M indicates improving operational leverage, though the one-time $3.2M Tally-related impairment temporarily impacted bottom-line results.

Grew Originations +13%, Revenue +17%, and Total Assets +20% in Fourth Quarter Compared to Prior Year

Executed $400 Million Loan Sale out of the Held-for-Sale Portfolio to a New Bank Buyer

SAN FRANCISCO, Jan. 28, 2025 /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, 2024.

"We executed well in 2024, exiting the year with growth in originations, continued credit outperformance, successful new products and experiences, and more than five million members," said Scott Sanborn, LendingClub CEO. "From this strong foundation, we are well-positioned to accelerate as we move through 2025 and further grow originations, revenue, and return on equity while continuing to innovate for our members."

Fourth Quarter 2024 Results

Balance Sheet:

  • Total assets of $10.6 billion increased 20% compared to $8.8 billion in the prior year, driven primarily by the success of the Structured Certificates program as well as the purchase of a $1.3 billion LendingClub-issued loan portfolio in the third quarter of 2024.
  • Deposits of $9.1 billion increased 24% compared to $7.3 billion in the prior year, driven by the continued success of our savings and CD offerings.
    • LevelUp Savings, launched in the third quarter of 2024, reached balances of nearly $1.2 billion at year end.
    • 87% of total deposits are FDIC-insured.
  • Robust available liquidity of $3.3 billion.
  • Strong capital position with a consolidated Tier 1 leverage ratio of 11.0% and a CET1 capital ratio of 17.3%.
  • Book value per common share was $11.83, compared to $11.34 in the prior year.
  • Tangible book value per common share was $11.09, compared to $10.54 in the prior year.

Financial Performance:

  • Loan originations increased 13% to $1.85 billion, compared to $1.63 billion in the prior year, driven by the successful execution of new consumer loan initiatives combined with strong marketplace investor demand.
  • Total net revenue increased 17% to $217.2 million, compared to $185.6 million in the prior year, driven by improved marketplace loan sales pricing and higher net interest income on a larger balance sheet.
  • Provision for credit losses of $63.2 million, compared to $41.9 million in the prior year, primarily driven by higher held-for-investment whole loan retention.
  • Improved net charge-offs in the held-for-investment at amortized cost loan portfolio to $46.0 million, compared to $82.5 million in the prior year.
    • Net charge-off ratio of 4.5% compared to 6.6% in the prior year.
  • Net income of $9.7 million, compared to $10.2 million in the prior year.
    • Net income for the fourth quarter of 2024 includes a one-time, post-tax $3.2 million non-cash impairment expense, as a result of the Tally acquisition, for internally-developed software.
  • Return on Equity (ROE) of 2.9%, with a Return on Tangible Common Equity (ROTCE) of 3.1%, compared to an ROE of 3.3% in the prior year, with an ROTCE of 3.6%.
  • Pre-Provision Net Revenue (PPNR) increased 34% to $74.3 million, compared to $55.6 million in the prior year.

Three Months Ended


Year Ended


($ in millions, except per share amounts)

December 31,
2024


September 30,
2024


December 31,
2023


December 31,
2024


December 31,
2023


Total net revenue

$           217.2


$            201.9


$           185.6


$           787.0


$           864.6


Non-interest expense

142.9


136.3


130.0


543.7


566.4


Pre-provision net revenue (1)

74.3


65.5


55.6


243.3


298.2


Provision for credit losses

63.2


47.5


41.9


178.3


243.6


Income before income tax expense

11.1


18.0


13.7


65.1


54.6


Income tax expense

(1.4)


(3.6)


(3.5)


(13.7)


(15.7)


Net income

$              9.7


$              14.5


$             10.2


$             51.3


$             38.9













Diluted EPS

$             0.08


$              0.13


$             0.09


$             0.45


$             0.36



(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, Tangible Book Value Per Common Share, and Return on Tangible Common Equity, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.

 

Financial Outlook


First Quarter 2025


Loan originations

$1.8B to $1.9B


Pre-provision net revenue (PPNR)

$60M to $70M






Fourth Quarter 2025


Loan originations

>$2.3B


Return on tangible common equity (ROTCE)

>8%


 

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 hundreds of billions of cells of data and over $95 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 5 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 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, January 28, 2025. 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 507312, 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 4, 2025, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 167509. LendingClub has used, and intends to use, its investor relations website, 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 (PPNR), Tangible Book Value (TBV) Per Common Share, and Return on Tangible Common Equity (ROTCE). 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 PPNR is an important measure because it reflects the financial performance of our business operations. PPNR is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income.

We believe 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 tangible common equity (common equity reduced by goodwill and customer relationship intangible assets), divided by the ending number of common shares issued and outstanding.

We believe ROTCE is an important measure because it reflects the company's ability to generate income from its core assets. ROTCE is a non-GAAP financial measure calculated by dividing annualized net income by the average tangible common equity for the applicable period.

For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on pages 14 and 15 of this release.

We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue and Return on Tangible Common Equity to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense and goodwill, respectively, with reasonable certainty without unreasonable effort.

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



December 31,
2024


September 30,
2024


June 30,

2024


March 31,

2024


December 31,
2023


Q/Q


Y/Y


Operating Highlights:


Non-interest income

$        74,817


$        61,640


$     58,713


$     57,800


$        54,129


21 %


38 %


Net interest income

142,384


140,241


128,528


122,888


131,477


2 %


8 %


Total net revenue

217,201


201,881


187,241


180,688


185,606


8 %


17 %


Non-interest expense

142,855


136,332


132,258


132,233


130,015


5 %


10 %


Pre-provision net revenue(1)

74,346


65,549


54,983


48,455


55,591


13 %


34 %


Provision for credit losses

63,238


47,541


35,561


31,927


41,907


33 %


51 %


Income before income tax expense

11,108


18,008


19,422


16,528


13,684


(38) %


(19) %


Income tax expense

(1,388)


(3,551)


(4,519)


(4,278)


(3,529)


(61) %


(61) %


Net income

$          9,720


$        14,457


$     14,903


$     12,250


$        10,155


(33) %


(4) %

















Basic EPS

$            0.09


$            0.13


$         0.13


$         0.11


$            0.09


(31) %


— %


Diluted EPS

$            0.08


$            0.13


$         0.13


$         0.11


$            0.09


(38) %


(11) %

















LendingClub Corporation Performance Metrics:


Net interest margin

5.42 %


5.63 %


5.75 %


5.75 %


6.40 %






Efficiency ratio(2)

65.8 %


67.5 %


70.6 %


73.2 %


70.0 %






Return on average equity (ROE)(3)

2.9 %


4.4 %


4.7 %


3.9 %


3.3 %






Return on tangible common equity (ROTCE)(1)(4)

3.1 %


4.7 %


5.1 %


4.2 %


3.6 %






Return on average total assets (ROA)(5)

0.4 %


0.6 %


0.6 %


0.5 %


0.5 %






Marketing expense as a % of loan originations

1.27 %


1.37 %


1.47 %


1.47 %


1.44 %





















LendingClub Corporation Capital Metrics:


Common equity Tier 1 capital ratio

17.3 %


15.9 %


17.9 %


17.6 %


17.9 %






Tier 1 leverage ratio

11.0 %


11.3 %


12.1 %


12.5 %


12.9 %






Book value per common share

$          11.83


$          11.95


$       11.52


$       11.40


$          11.34


(1) %


4 %


Tangible book value per common share(1)

$          11.09


$          11.19


$       10.75


$       10.61


$          10.54


(1) %


5 %

















Loan Originations (in millions)(6):















Total loan originations

$          1,846


$          1,913


$       1,813


$       1,646


$          1,630


(4) %


13 %


Marketplace loans

$          1,241


$          1,403


$       1,477


$       1,361


$          1,432


(12) %


(13) %


Loan originations held for investment

$             605


$             510


$          336


$          285


$             198


19 %


206 %


Loan originations held for investment as a % of total loan originations

33 %


27 %


19 %


17 %


12 %





















Servicing Portfolio AUM (in millions)(7):


Total servicing portfolio

$         12,371


$         12,674


$      12,999


$      13,437


$         14,122


(2) %


(12) %


Loans serviced for others

$           7,207


$           7,028


$        8,337


$        8,671


$           9,336


3 %


(23) %




(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 tangible common equity for the period presented.

(5)

Calculated as annualized net income divided by average total assets for the period presented.

(6)

Includes unsecured personal loans and auto loans only.

(7)

Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and retained 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



December 31,
2024


September 30,
2024


June 30,

2024


March 31,

2024


December 31,
2023


Q/Q


Y/Y


Balance Sheet Data:


Securities available for sale

$     3,452,648


$      3,311,418


$  2,814,383


$  2,228,500


$     1,620,262


4 %


113 %


Loans held for sale at fair value

$        636,352


$         849,967


$     791,059


$     550,415


$        407,773


(25) %


56 %


Loans and leases held for investment at amortized cost

$     4,125,818


$      4,108,329


$  4,228,391


$  4,505,816


$     4,850,302


— %


(15) %


Gross allowance for loan and lease losses (1)

$      (285,686)


$       (274,538)


$   (285,368)


$   (311,794)


$      (355,773)


4 %


(20) %


Recovery asset value (2)

$          48,952


$           53,974


$       56,459


$       52,644


$          45,386


(9) %


8 %


Allowance for loan and lease losses

$      (236,734)


$       (220,564)


$   (228,909)


$   (259,150)


$      (310,387)


7 %


(24) %


Loans and leases held for investment at amortized cost, net

$     3,889,084


$      3,887,765


$  3,999,482


$  4,246,666


$     4,539,915


— %


(14) %


Loans held for investment at fair value (3)

$     1,027,798


$      1,287,495


$     339,222


$     427,396


$        272,678


(20) %


277 %


Total loans and leases held for investment (3)

$     4,916,882


$      5,175,260


$  4,338,704


$  4,674,062


$     4,812,593


(5) %


2 %


Whole loans held on balance sheet (4)

$     5,553,234


$      6,025,227


$  5,129,763


$  5,224,477


$     5,220,366


(8) %


6 %


Total assets

$   10,630,509


$    11,037,507


$  9,586,050


$  9,244,828


$     8,827,463


(4) %


20 %


Total deposits

$     9,068,237


$      9,459,608


$  8,095,328


$  7,521,655


$     7,333,486


(4) %


24 %


Total liabilities

$     9,288,778


$      9,694,612


$  8,298,105


$  7,978,542


$     7,575,641


(4) %


23 %


Total equity

$     1,341,731


$      1,342,895


$  1,287,945


$  1,266,286


$     1,251,822


— %


7 %




(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)

The balances at December 31, 2024 and September 30, 2024 include a loan portfolio that was purchased during the third quarter of 2024 of loans that we previously originated and sold.

(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



December 31,
2024


September 30,
2024


June 30,
2024


March 31,
2024


December 31,
2023


Asset Quality Metrics (1):


Allowance for loan and lease losses to total loans
   and leases held for investment at amortized cost

5.7 %


5.4 %


5.4 %


5.8 %


6.4 %


Allowance for loan and lease losses to commercial
   loans and leases held for investment at amortized
   cost

3.9 %


3.1 %


2.7 %


1.9 %


1.8 %


Allowance for loan and lease losses to consumer
   loans and leases held for investment at amortized
   cost

6.1 %


5.8 %


5.9 %


6.4 %


7.2 %


Gross allowance for loan and lease losses to
   consumer loans and leases held for investment at
   amortized cost

7.5 %


7.3 %


7.5 %


7.8 %


8.3 %


Net charge-offs

$          45,977


$          55,805


$          66,818


$          80,483


$          82,511


Net charge-off ratio (2)

4.5 %


5.4 %


6.2 %


6.9 %


6.6 %




(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:



December 31,
2024


December 31,
2023


Unsecured personal

$       3,106,472


$       3,726,830


Residential mortgages

172,711


183,050


Secured consumer

230,232


250,039


Total consumer loans held for investment

3,509,415


4,159,919


Equipment finance (1)

64,232


110,992


Commercial real estate

373,785


380,322


Commercial and industrial

178,386


199,069


Total commercial loans and leases held for investment

616,403


690,383


Total loans and leases held for investment at amortized cost

4,125,818


4,850,302


Allowance for loan and lease losses

(236,734)


(310,387)


Loans and leases held for investment at amortized cost, net

$       3,889,084


$       4,539,915


Loans held for investment at fair value (2)

1,027,798


272,678


Total loans and leases held for investment (2)

$       4,916,882


$       4,812,593




(1)

Comprised of sales-type leases for equipment.

(2) 

The balance at December 31, 2024 includes a loan portfolio that was purchased during the third quarter of 2024 of loans that we previously originated and sold.

 

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 on loans and leases held for investment at amortized cost:



December 31, 2024


December 31, 2023


Gross allowance for loan and lease losses (1)

$                 285,686


$                 355,773


Recovery asset value (2)

(48,952)


(45,386)


Allowance for loan and lease losses

$                 236,734


$                 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



December 31, 2024


September 30, 2024



Consumer


Commercial


Total


Consumer


Commercial


Total


Allowance for loan and lease
  losses, beginning of period

$    200,899


$        19,665


$ 220,564


$    210,729


$        18,180


$ 228,909


Credit loss expense for loans
  and leases held for investment

56,322


5,825


62,147


45,813


1,647


47,460


Charge-offs

(64,167)


(1,887)


(66,054)


(68,388)


(721)


(69,109)


Recoveries

19,544


533


20,077


12,745


559


13,304


Allowance for loan and lease
  losses, end of period

$    212,598


$        24,136


$ 236,734


$    200,899


$        19,665


$ 220,564


 


Three Months Ended



December 31, 2023



Consumer


Commercial


Total


Allowance for loan and lease losses, beginning of period

$    336,288


$        14,207


$ 350,495


Credit loss expense for loans and leases held for investment

43,227


(824)


42,403


Charge-offs

(88,904)


(1,193)


(90,097)


Recoveries

7,450


136


7,586


Allowance for loan and lease losses, end of period

$    298,061


$        12,326


$ 310,387


 

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:


December 31, 2024

30-59
Days


60-89
Days


90 or More
Days


Total Days
Past Due


Guaranteed
Amount (1)


Unsecured personal

$      23,530


$      19,293


$      21,387


$             64,210


$                     —


Residential mortgages

151


88


—


239


—


Secured consumer

2,342


600


337


3,279


—


Total consumer loans held for investment

$      26,023


$      19,981


$      21,724


$             67,728


$                     —













Equipment finance

$             67


$             —


$        4,551


$               4,618


$                     —


Commercial real estate

8,320


483


9,731


18,534


8,456


Commercial and industrial

6,257


1,182


15,971


23,410


18,512


Total commercial loans and leases held for investment

$      14,644


$        1,665


$      30,253


$             46,562


$             26,968


Total loans and leases held for investment at amortized cost

$      40,667


$      21,646


$      51,977


$           114,290


$             26,968


 

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 (%)



December 31,
2024


September 30,
2024


December 31,
2023


Q4 2024

vs

Q3 2024


Q4 2024

vs

Q4 2023


Non-interest income:











Origination fees

$         64,745


$          71,465


$         76,702


(9) %


(16) %


Servicing fees

17,391


8,081


17,450


115 %


— %


Gain on sales of loans

15,007


12,433


11,921


21 %


26 %


Net fair value adjustments

(24,980)


(33,595)


(53,892)


26 %


54 %


Marketplace revenue

72,163


58,384


52,181


24 %


38 %


Other non-interest income

2,654


3,256


1,948


(18) %


36 %


Total non-interest income

74,817


61,640


54,129


21 %


38 %













Total interest income

240,596


240,377


208,319


— %


15 %


Total interest expense

98,212


100,136


76,842


(2) %


28 %


Net interest income

142,384


140,241


131,477


2 %


8 %













Total net revenue

217,201


201,881


185,606


8 %


17 %













Provision for credit losses

63,238


47,541


41,907


33 %


51 %













Non-interest expense:











Compensation and benefits

58,656


57,408


58,591


2 %


— %


Marketing

23,415


26,186


23,465


(11) %


— %


Equipment and software

13,361


12,789


13,190


4 %


1 %


Depreciation and amortization

19,748


13,341


11,953


48 %


65 %


Professional services

9,136


8,014


7,727


14 %


18 %


Occupancy

3,991


4,005


3,926


— %


2 %


Other non-interest expense

14,548


14,589


11,163


— %


30 %


Total non-interest expense

142,855


136,332


130,015


5 %


10 %













Income before income tax expense

11,108


18,008


13,684


(38) %


(19) %


Income tax expense

(1,388)


(3,551)


(3,529)


(61) %


(61) %


Net income

$           9,720


$          14,457


$         10,155


(33) %


(4) %













Net income per share: 











Basic EPS

$             0.09


$             0.13


$             0.09


(31) %


— %


Diluted EPS

$             0.08


$             0.13


$             0.09


(38) %


(11) %


Weighted-average common shares – Basic

112,788,050


112,042,202


109,948,785


1 %


3 %


Weighted-average common shares – Diluted

116,400,285


113,922,256


109,949,371


2 %


6 %


 

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued)
(In thousands, except share and per share data)
(Unaudited)








Year Ended December 31,





2024


2023


Change (%)


Non-interest income:







Origination fees

$       283,420


$       279,146


2 %


Servicing fees

64,933


98,613


(34) %


Gain on sales of loans

49,097


47,839


3 %


Net fair value adjustments

(154,659)


(134,114)


(15) %


Marketplace revenue

242,791


291,484


(17) %


Other non-interest income

10,179


11,297


(10) %


Total non-interest income

252,970


302,781


(16) %









Total interest income

907,958


832,630


9 %


Total interest expense

373,917


270,792


38 %


Net interest income

534,041


561,838


(5) %









Total net revenue

787,011


864,619


(9) %









Provision for credit losses

178,267


243,565


(27) %









Non-interest expense:







Compensation and benefits

232,158


261,948


(11) %


Marketing

100,402


93,840


7 %


Equipment and software

51,194


53,485


(4) %


Depreciation and amortization

58,834


47,195


25 %


Professional services

32,045


35,173


(9) %


Occupancy

15,798


17,532


(10) %


Other non-interest expense

53,247


57,264


(7) %


Total non-interest expense

543,678


566,437


(4) %









Income before income tax expense

65,066


54,617


19 %


Income tax expense

(13,736)


(15,678)


(12) %


Net income

$         51,330


$         38,939


32 %









Net income per share:







Basic EPS

$            0.46


$            0.36


28 %


Diluted EPS

$            0.45


$            0.36


25 %


Weighted-average common shares – Basic

111,731,523


108,466,179


3 %


Weighted-average common shares – Diluted

113,122,859


108,468,857


4 %


 

LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)



Consolidated LendingClub Corporation (1)



Three Months Ended

December 31, 2024


Three Months Ended

September 30, 2024


Three Months Ended

December 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

$   1,193,570


$  14,194


4.76 %


$    939,611


$  12,442


5.30 %


$ 1,190,539


$  16,271


5.47 %


Securities available for sale at fair value

3,390,315


57,259


6.76 %


3,047,305


52,476


6.89 %


1,197,625


20,920


6.99 %


Loans held for sale at fair value

673,279


20,696


12.30 %


899,434


30,326


13.49 %


501,850


15,883


12.66 %


Loans and leases held for investment:



















Unsecured personal loans

3,080,934


104,011


13.50 %


3,045,150


103,291


13.57 %


3,890,041


128,190


13.18 %


Commercial and other consumer loans

1,023,041


14,203


5.55 %


1,057,688


15,497


5.86 %


1,126,010


17,033


6.05 %


Loans and leases held for investment at amortized cost

4,103,975


118,214


11.52 %


4,102,838


118,788


11.58 %


5,016,051


145,223


11.58 %


Loans held for investment at fair value (3)

1,153,204


30,233


10.49 %


972,698


26,345


10.83 %


306,636


10,022


13.07 %


Total loans and leases held for investment (3)

5,257,179


148,447


11.29 %


5,075,536


145,133


11.44 %


5,322,687


155,245


11.67 %


Total interest-earning assets

10,514,343


240,596


9.15 %


9,961,886


240,377


9.65 %


8,212,701


208,319


10.15 %


Cash and due from banks and restricted cash

51,555






41,147






63,181






Allowance for loan and lease losses

(227,673)






(225,968)






(334,711)






Other non-interest earning assets

597,609






624,198






659,995






Total assets

$  10,935,834






$  10,401,263






$ 8,601,166






Interest-bearing liabilities



















Interest-bearing deposits:



















Checking and money market accounts

$       805,362


$    5,502


2.72 %


$ 1,092,376


$  10,146


3.70 %


$ 1,081,875


$    9,593


3.52 %


Savings accounts and certificates of deposit

8,214,866


92,698


4.49 %


6,944,586


86,717


4.97 %


5,720,058


66,660


4.62 %


Interest-bearing deposits

9,020,228


98,200


4.33 %


8,036,962


96,863


4.79 %


6,801,933


76,253


4.45 %


Other interest-bearing liabilities

615


12


7.20 %


486,736


3,273


2.69 %


24,180


589


9.74 %


Total interest-bearing liabilities

9,020,843


98,212


4.33 %


8,523,698


100,136


4.67 %


6,826,113


76,842


4.47 %


Non-interest bearing deposits

328,022






344,577






314,822






Other liabilities

251,239






225,467






238,806






Total liabilities

$    9,600,104






$ 9,093,742






$ 7,379,741






Total equity

$    1,335,730






$ 1,307,521






$ 1,221,425






Total liabilities and equity

$  10,935,834






$  10,401,263






$ 8,601,166

























Interest rate spread





4.82 %






4.98 %






5.68 %





















Net interest income and net interest margin



$  142,384


5.42 %




$ 140,241


5.63 %




$ 131,477


6.40 %




(1) 

Consolidated presentation reflects intercompany eliminations.

(2) 

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

(3) 

The average balance for the fourth and third quarters of 2024 includes a loan portfolio that was purchased during the third quarter of 2024 of loans that we previously originated and sold.

 

LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS 
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)





December 31,
2024


December 31,
2023


Assets





Cash and due from banks

$            15,524


$         14,993


Interest-bearing deposits in banks

938,534


1,237,511


Total cash and cash equivalents

954,058


1,252,504


Restricted cash

23,338


41,644


Securities available for sale at fair value ($3,492,264 and $1,663,990 at amortized cost, respectively)

3,452,648


1,620,262


Loans held for sale at fair value

636,352


407,773


Loans and leases held for investment

4,125,818


4,850,302


Allowance for loan and lease losses

(236,734)


(310,387)


Loans and leases held for investment, net

3,889,084


4,539,915


Loans held for investment at fair value (1)

1,027,798


272,678


Property, equipment and software, net

167,532


161,517


Goodwill

75,717


75,717


Other assets

403,982


455,453


Total assets

$      10,630,509


$     8,827,463


Liabilities and Equity





Deposits:





Interest-bearing

$        8,676,119


$     7,001,680


Noninterest-bearing

392,118


331,806


Total deposits

9,068,237


7,333,486


Borrowings

—


19,354


Other liabilities

220,541


222,801


Total liabilities

9,288,778


7,575,641


Equity





Common stock, $0.01 par value; 180,000,000 shares authorized; 113,383,917 and 110,410,602 shares issued and outstanding, respectively

1,134


1,104


Additional paid-in capital

1,702,316


1,669,828


Accumulated deficit

(337,476)


(388,806)


Accumulated other comprehensive loss

(24,243)


(30,304)


Total equity

1,341,731


1,251,822


Total liabilities and equity

$      10,630,509


$     8,827,463




(1) 

The balance at December 31, 2024 includes a loan portfolio that was purchased during the third quarter of 2024 of loans that we previously originated and sold.

 

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


For the year ended



December 31,
2024


September 30,

2024


June 30,

2024


March 31,

2024


December 31,
2023


December 31,
2024


December 31,
2023


GAAP Net income

$             9,720


$             14,457


$     14,903


$     12,250


$           10,155


$           51,330


$           38,939


Less: Provision for credit losses

(63,238)


(47,541)


(35,561)


(31,927)


(41,907)


(178,267)


(243,565)


Less: Income tax expense

(1,388)


(3,551)


(4,519)


(4,278)


(3,529)


(13,736)


(15,678)


Pre-provision net revenue

$           74,346


$             65,549


$     54,983


$     48,455


$           55,591


$         243,333


$         298,182


 


For the three months ended


For the year ended



December 31,
2024


September 30,

2024


June 30,

2024


March 31,

2024


December 31,
2023


December 31,
2024


December 31,
2023


Non-interest income

$           74,817


$             61,640


$     58,713


$     57,800


$           54,129


$         252,970


$         302,781


Net interest income

142,384


140,241


128,528


122,888


131,477


534,041


561,838


Total net revenue

217,201


201,881


187,241


180,688


185,606


787,011


864,619


Non-interest expense

(142,855)


(136,332)


(132,258)


(132,233)


(130,015)


(543,678)


(566,437)


Pre-provision net revenue

74,346


65,549


54,983


48,455


55,591


243,333


298,182


Provision for credit losses

(63,238)


(47,541)


(35,561)


(31,927)


(41,907)


(178,267)


(243,565)


Income before income tax expense

11,108


18,008


19,422


16,528


13,684


65,066


54,617


Income tax expense

(1,388)


(3,551)


(4,519)


(4,278)


(3,529)


(13,736)


(15,678)


GAAP Net income

$             9,720


$             14,457


$     14,903


$     12,250


$           10,155


$           51,330


$           38,939


 

Tangible Book Value Per Common Share
 



December 31,
2024


September 30,

2024


June 30,

2024


March 31,

2024


December 31,
2023


GAAP common equity

$         1,341,731


$          1,342,895


$          1,287,945


$          1,266,286


$          1,251,822


Less: Goodwill

(75,717)


(75,717)


(75,717)


(75,717)


(75,717)


Less: Customer relationship intangible assets

(8,586)


(9,439)


(10,293)


(11,165)


(12,135)


Tangible common equity

$         1,257,428


$          1,257,739


$          1,201,935


$          1,179,404


$          1,163,970













Book value per common share


GAAP common equity

$         1,341,731


$          1,342,895


$          1,287,945


$          1,266,286


$          1,251,822


Common shares issued and outstanding

113,383,917


112,401,990


111,812,215


111,120,415


110,410,602


Book value per common share

$                11.83


$                 11.95


$                 11.52


$                 11.40


$                 11.34













Tangible book value per common share


Tangible common equity

$         1,257,428


$          1,257,739


$          1,201,935


$          1,179,404


$          1,163,970


Common shares issued and outstanding

113,383,917


112,401,990


111,812,215


111,120,415


110,410,602


Tangible book value per common share

$                11.09


$                 11.19


$                 10.75


$                 10.61


$                 10.54


 

LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Continued)
(In thousands, except ratios)
(Unaudited)




Return On Tangible Common Equity
 



For the three months ended


For the year ended



December 31,
2024


September 30,

2024


June 30,

2024


March 31,

2024


December 31,
2023


December 31,
2024


December 31,
2023


Average GAAP common equity

$ 1,335,730


$   1,307,521


$ 1,266,608


$ 1,257,237


$ 1,221,425


$ 1,291,938


$ 1,204,050


Less: Average goodwill

(75,717)


(75,717)


(75,717)


(75,717)


(75,717)


(75,717)


(75,717)


Less: Average customer relationship intangible assets

(9,013)


(9,866)


(10,729)


(11,650)


(12,643)


(10,324)


(14,198)


Average tangible common equity

$ 1,251,000


$   1,221,938


$ 1,180,162


$ 1,169,870


$ 1,133,065


$ 1,205,897


$ 1,114,135

















Return on average equity


Annualized GAAP net income

$      38,880


$        57,828


$      59,612


$      49,000


$      40,620


$      51,330


$      38,939


Average GAAP common equity

$ 1,335,730


$   1,307,521


$ 1,266,608


$ 1,257,237


$ 1,221,425


$ 1,291,938


$ 1,204,050


Return on average equity

2.9 %


4.4 %


4.7 %


3.9 %


3.3 %


4.0 %


3.2 %

















Return on tangible common equity


Annualized GAAP net income

$      38,880


$        57,828


$      59,612


$      49,000


$      40,620


$      51,330


$      38,939


Average tangible common equity

$ 1,251,000


$   1,221,938


$ 1,180,162


$ 1,169,870


$ 1,133,065


$ 1,205,897


$ 1,114,135


Return on tangible common equity

3.1 %


4.7 %


5.1 %


4.2 %


3.6 %


4.3 %


3.5 %


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-fourth-quarter-and-full-year-2024-results-302362517.html

SOURCE LendingClub Corporation

FAQ

What was LendingClub's (LC) loan origination growth in Q4 2024?

LendingClub's loan originations grew 13% to $1.85 billion in Q4 2024 compared to $1.63 billion in the prior year.

How much did LC's deposits grow in Q4 2024?

LendingClub's deposits increased 24% to $9.1 billion compared to $7.3 billion in the prior year.

What is LC's projected loan origination target for Q4 2025?

LendingClub projects loan originations to exceed $2.3 billion by Q4 2025.

How did LC's net charge-off ratio perform in Q4 2024?

The net charge-off ratio improved to 4.5% in Q4 2024, compared to 6.6% in the prior year.

What was LC's Return on Equity (ROE) in Q4 2024?

LendingClub's Return on Equity was 2.9% in Q4 2024, compared to 3.3% in the prior year.

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LendingClub Corporation

NYSE:LC

LC Rankings

#2152 Ranked by Market Cap
N/A Ranked by Dividends

LC Latest News

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Oct 9, 2024
LendingClub & Pagaya Acquire Assets of Tally Technologies

LC Stock Data

1.62B
108.32M
2.97%
76.46%
4.15%
Banks - Regional
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