LendingClub Reports Third Quarter 2024 Results
LendingClub (NYSE: LC) reported strong Q3 2024 results with total assets growing 25% year-to-date to $11.0 billion, driven by a $1.3 billion purchase of LendingClub loans. Loan originations increased to $1.9 billion from $1.8 billion in Q2, while total net revenue rose to $201.9 million from $187.2 million. The company reported net income of $14.5 million with diluted EPS of $0.13. Notable improvements include a decline in net charge-offs to 5.4% from 6.2% in Q2, and increased book value per share to $11.95. The company maintains strong liquidity of $3.6 billion and acquired Tally's technology to enhance its credit card debt management capabilities.
LendingClub (NYSE: LC) ha riportato risultati solidi per il terzo trimestre del 2024, con un aumento del 25% degli attivi totali, pari a 11,0 miliardi di dollari, grazie all'acquisto di prestiti LendingClub per 1,3 miliardi di dollari. Le originazioni di prestiti sono aumentate a 1,9 miliardi di dollari rispetto a 1,8 miliardi nel secondo trimestre, mentre il fatturato netto totale è salito a 201,9 milioni di dollari, rispetto ai 187,2 milioni precedenti. L'azienda ha registrato un utile netto di 14,5 milioni di dollari con un EPS diluito di 0,13 dollari. Tra i miglioramenti degni di nota si segnala una diminuzione delle perdite nette a 5,4% rispetto al 6,2% del secondo trimestre, e un aumento del valore contabile per azione a 11,95 dollari. L'azienda mantiene una forte liquidità di 3,6 miliardi di dollari e ha acquisito la tecnologia di Tally per migliorare le sue capacità di gestione del debito delle carte di credito.
LendingClub (NYSE: LC) reportó resultados sólidos para el tercer trimestre de 2024, con un aumento del 25% en los activos totales, alcanzando los 11.0 mil millones de dólares, impulsado por una compra de préstamos de LendingClub por 1.3 mil millones de dólares. Las originaciones de préstamos aumentaron a 1.9 mil millones de dólares desde 1.8 mil millones en el segundo trimestre, mientras que los ingresos netos totales crecieron a 201.9 millones de dólares desde 187.2 millones. La compañía reportó un ingreso neto de 14.5 millones de dólares con un EPS diluido de 0.13 dólares. Entre las mejoras notables se incluye una disminución en las cancelaciones netas al 5.4% desde el 6.2% en el segundo trimestre, y un aumento en el valor contable por acción a 11.95 dólares. La empresa mantiene una sólida liquidez de 3.6 mil millones de dólares y adquirió la tecnología de Tally para mejorar sus capacidades de gestión de deudas de tarjetas de crédito.
LendingClub (NYSE: LC)는 2024년 3분기 강력한 실적을 보고했으며, 총 자산이 연초 대비 25% 증가하여 110억 달러에 달했습니다. 이는 13억 달러 규모의 LendingClub 대출 구매에 힘입은 것입니다. 대출 발행액은 2분기 18억 달러에서 19억 달러로 증가했으며, 총 순수익은 1억 9,190만 달러에서 1억 8,720만 달러로 증가했습니다. 이 회사는 1,450만 달러의 순이익과 희석주당순이익(EPS) 0.13 달러를 보고했습니다. 주목할 만한 개선 사항으로는 순 상환율이 2분기 6.2%에서 5.4%로 감소하였고, 주당 장부가치가 11.95달러로 증가했습니다. 이 회사는 36억 달러의 강력한 유동성을 유지하며 Tally의 기술을 인수하여 신용 카드 부채 관리 능력을 향상시켰습니다.
LendingClub (NYSE: LC) a annoncé des résultats solides pour le troisième trimestre 2024, avec une augmentation de 25% des actifs totaux, atteignant 11,0 milliards de dollars, grâce à un achat de prêts LendingClub de 1,3 milliard de dollars. Les origines de prêts ont augmenté à 1,9 milliard de dollars contre 1,8 milliard au deuxième trimestre, tandis que le chiffre d'affaires net total est passé de 187,2 millions à 201,9 millions de dollars. L'entreprise a déclaré un bénéfice net de 14,5 millions de dollars avec un BPA dilué de 0,13 dollar. Parmi les améliorations notables, on note une diminution des radiations nettes à 5,4% contre 6,2% au deuxième trimestre, et une augmentation de la valeur comptable par action à 11,95 dollars. L'entreprise maintient une forte liquidité de 3,6 milliards de dollars et a acquis la technologie de Tally pour améliorer ses capacités de gestion de la dette des cartes de crédit.
LendingClub (NYSE: LC) hat für das dritte Quartal 2024 starke Ergebnisse vorgelegt, mit einem Anstieg der Gesamtaktiva um 25% seit Jahresbeginn auf 11,0 Milliarden US-Dollar, angetrieben durch einen Kauf von LendingClub-Darlehen in Höhe von 1,3 Milliarden US-Dollar. Die Darlehensausreichungen stiegen im Vergleich zu 1,8 Milliarden US-Dollar im zweiten Quartal auf 1,9 Milliarden US-Dollar, während der gesamte Nettoumsatz auf 201,9 Millionen US-Dollar von 187,2 Millionen US-Dollar anstieg. Das Unternehmen meldete einen Nettogewinn von 14,5 Millionen US-Dollar mit einem verwässerten EPS von 0,13 US-Dollar. Zu den bemerkenswerten Verbesserungen gehören der Rückgang der Nettoausfälle auf 5,4% von 6,2% im zweiten Quartal und der Anstieg des Buchwerts pro Aktie auf 11,95 US-Dollar. Das Unternehmen hält eine starke Liquidität von 3,6 Milliarden US-Dollar und erwarb die Technologie von Tally, um seine Fähigkeiten im Umgang mit Kreditkartenschulden zu verbessern.
- Total assets grew 25% YTD to $11.0 billion
- Revenue increased to $201.9M from $187.2M QoQ
- Net charge-off ratio improved to 5.4% from 6.2% QoQ
- Pre-Provision Net Revenue increased to $65.5M from $55.0M QoQ
- Book value per share increased to $11.95 from $11.52 QoQ
- Strong capital position with 11.3% Tier 1 leverage ratio
- Provision for credit losses increased to $47.5M from $35.6M QoQ
- Net income slightly decreased to $14.5M from $14.9M QoQ
- Non-interest expense increased by $4.0M QoQ
Insights
LendingClub's Q3 2024 results show significant operational improvements and strategic expansion. The
- Revenue growth to
$201.9 million from$187.2 million in Q2 - Improved credit quality with net charge-off ratio decreasing to
5.4% from6.2% - Strong capital position with
11.3% Tier 1 leverage ratio - Strategic acquisition of Tally's technology positions them well in the
$1.3 trillion credit card refinance market
The return of bank buyers and improved loan sales pricing suggest strengthening market confidence. The launch of LevelUp Savings and
The acquisition of Tally's debt monitoring technology represents a strategic move into the massive credit card refinancing market. With consumer credit card debt at historic highs, this positions LendingClub to capture more market share in debt consolidation. The company's improved loan performance metrics and expanding deposit base (
Originations and Revenue Growth Supported by Return of Bank Buyers
Total Assets Grew
Acquired Tally's Technology in October to Accelerate Product Roadmap
"We had a standout quarter, with credit outperformance and the return of bank buyers driving improved loan sales pricing, our capital strategy delivering a
Third Quarter 2024 Results
Balance Sheet:
- Total assets of
compared to$11.0 billion in the prior quarter, primarily due to growth in whole loans held on the balance sheet and securities related to the structured certificates program:$9.6 billion - Whole loans held on the balance sheet of
, compared to$6.0 billion in the prior quarter, primarily reflecting the purchase of a$5.1 billion LendingClub-issued loan portfolio.$1.3 billion - Securities available for sale of
, compared to$3.3 billion in the prior quarter, primarily reflecting growth in structured certificate securities.$2.8 billion
- Whole loans held on the balance sheet of
- Deposits of
compared to$9.5 billion in the prior quarter, primarily due to an increase in consumer deposits and brokered certificates of deposit to fund the loan portfolio purchase.$8.1 billion - Launched new direct-to-consumer LevelUp Savings product and seeing positive consumer response.
88% of total deposits are FDIC-insured.
- Strong liquidity profile with
in readily available liquidity.$3.6 billion - Strong capital position with a consolidated Tier 1 leverage ratio of
11.3% and consolidated Common Equity Tier 1 capital ratio of15.9% . - Book value per common share increased to
, compared to$11.95 in the prior quarter.$11.52 - Tangible book value per common share increased to
, compared to$11.19 in the prior quarter.$10.75
Financial Performance:
- Loan originations grew to
, compared to$1.9 billion in the prior quarter, driven by the successful execution of new consumer loan initiatives, combined with marketplace investor demand for structured certificates and higher whole loan retention.$1.8 billion - Total net revenue increased to
, compared to$201.9 million in the prior quarter, driven by higher net interest income from a larger balance sheet and improved marketplace loan sales pricing.$187.2 million - Provision for credit losses of
, compared to$47.5 million in the prior quarter, driven by higher held-for-investment whole loan retention during the quarter.$35.6 million - Decline in net charge-offs in the held-for-investment at amortized cost loan portfolio to
, down from$55.8 million in the prior quarter; net charge-off ratio of$66.8 million 5.4% compared to6.2% in the prior quarter. - Net income was
, compared to$14.5 million in the prior quarter, with diluted EPS of$14.9 million in both periods.$0.13 - Pre-Provision Net Revenue (PPNR) increased to
, compared to$65.5 million in the prior quarter, driven by a$55.0 million increase in total net revenue partially offset by a$14.7 million increase in non-interest expense.$4.0 million
Three Months Ended | ||||||
($ in millions, except per share amounts) | September 30, | June 30, | September 30, | |||
Total net revenue | $ 201.9 | $ 187.2 | $ 200.8 | |||
Non-interest expense | 136.3 | 132.3 | 128.0 | |||
Pre-provision net revenue (1) | 65.5 | 55.0 | 72.8 | |||
Provision for credit losses | 47.5 | 35.6 | 64.5 | |||
Income before income tax expense | 18.0 | 19.4 | 8.3 | |||
Income tax expense | (3.6) | (4.5) | (3.3) | |||
Net income | $ 14.5 | $ 14.9 | $ 5.0 | |||
Diluted EPS | $ 0.13 | $ 0.13 | $ 0.05 |
(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
Fourth Quarter 2024 | ||
Loan originations | ||
Pre-provision net revenue (PPNR) |
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
Conference Call and Webcast Information
The LendingClub third quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, October 23, 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
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 13 of this release.
We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense 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 | |||||||||||||
September 30, | June 30, | March 31, 2024 | December 31, 2023 | September 30, | Q/Q | Y/Y | ||||||||
Operating Highlights: | ||||||||||||||
Non-interest income | $ 61,640 | $ 58,713 | $ 57,800 | $ 54,129 | $ 63,844 | 5 % | (3) % | |||||||
Net interest income | 140,241 | 128,528 | 122,888 | 131,477 | 137,005 | 9 % | 2 % | |||||||
Total net revenue | 201,881 | 187,241 | 180,688 | 185,606 | 200,849 | 8 % | 1 % | |||||||
Non-interest expense | 136,332 | 132,258 | 132,233 | 130,015 | 128,035 | 3 % | 6 % | |||||||
Pre-provision net revenue(1) | 65,549 | 54,983 | 48,455 | 55,591 | 72,814 | 19 % | (10) % | |||||||
Provision for credit losses | 47,541 | 35,561 | 31,927 | 41,907 | 64,479 | 34 % | (26) % | |||||||
Income before income tax expense | 18,008 | 19,422 | 16,528 | 13,684 | 8,335 | (7) % | 116 % | |||||||
Income tax expense | (3,551) | (4,519) | (4,278) | (3,529) | (3,327) | (21) % | 7 % | |||||||
Net income | $ 14,457 | $ 14,903 | $ 12,250 | $ 10,155 | $ 5,008 | (3) % | 189 % | |||||||
Basic EPS | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.09 | $ 0.05 | — % | 160 % | |||||||
Diluted EPS | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.09 | $ 0.05 | — % | 160 % | |||||||
LendingClub Corporation Performance Metrics: | ||||||||||||||
Net interest margin | 5.63 % | 5.75 % | 5.75 % | 6.40 % | 6.91 % | |||||||||
Efficiency ratio(2) | 67.5 % | 70.6 % | 73.2 % | 70.0 % | 63.7 % | |||||||||
Return on average equity (ROE)(3) | 4.4 % | 4.7 % | 3.9 % | 3.3 % | 1.7 % | |||||||||
Return on average total assets (ROA)(4) | 0.6 % | 0.6 % | 0.5 % | 0.5 % | 0.2 % | |||||||||
Marketing expense as a % of loan originations | 1.37 % | 1.47 % | 1.47 % | 1.44 % | 1.30 % | |||||||||
LendingClub Corporation Capital Metrics: | ||||||||||||||
Common equity Tier 1 capital ratio | 15.9 % | 17.9 % | 17.6 % | 17.9 % | 16.9 % | |||||||||
Tier 1 leverage ratio | 11.3 % | 12.1 % | 12.5 % | 12.9 % | 13.2 % | |||||||||
Book value per common share | $ 11.95 | $ 11.52 | $ 11.40 | $ 11.34 | $ 11.02 | 4 % | 8 % | |||||||
Tangible book value per common share(1) | $ 11.19 | $ 10.75 | $ 10.61 | $ 10.54 | $ 10.21 | 4 % | 10 % | |||||||
Loan Originations (in millions)(5): | ||||||||||||||
Total loan originations | $ 1,913 | $ 1,813 | $ 1,646 | $ 1,630 | $ 1,508 | 6 % | 27 % | |||||||
Marketplace loans | $ 1,403 | $ 1,477 | $ 1,361 | $ 1,432 | $ 1,182 | (5) % | 19 % | |||||||
Loan originations held for investment | $ 510 | $ 336 | $ 285 | $ 198 | $ 326 | 52 % | 56 % | |||||||
Loan originations held for investment as a % of total loan originations | 27 % | 19 % | 17 % | 12 % | 22 % | |||||||||
Servicing Portfolio AUM (in millions)(6): | ||||||||||||||
Total servicing portfolio | $ 12,674 | $ 12,999 | $ 13,437 | $ 14,122 | $ 14,818 | (3) % | (14) % | |||||||
Loans serviced for others | $ 7,028 | $ 8,337 | $ 8,671 | $ 9,336 | $ 9,601 | (16) % | (27) % |
(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 | |||||||||||||
September 30, | June 30, | March 31, 2024 | December 31, 2023 | September 30, | Q/Q | Y/Y | ||||||||
Balance Sheet Data: | ||||||||||||||
Securities available for sale | $ 3,311,418 | $ 2,814,383 | $ 2,228,500 | $ 1,620,262 | $ 795,669 | 18 % | 316 % | |||||||
Loans held for sale at fair value | $ 849,967 | $ 791,059 | $ 550,415 | $ 407,773 | $ 362,789 | 7 % | 134 % | |||||||
Loans and leases held for investment at amortized cost | $ 4,108,329 | $ 4,228,391 | $ 4,505,816 | $ 4,850,302 | $ 5,237,277 | (3) % | (22) % | |||||||
Gross allowance for loan and lease losses (1) | $ (274,538) | $ (285,368) | $ (311,794) | $ (355,773) | $ (388,156) | (4) % | (29) % | |||||||
Recovery asset value (2) | $ 53,974 | $ 56,459 | $ 52,644 | $ 45,386 | $ 37,661 | (4) % | 43 % | |||||||
Allowance for loan and lease losses | $ (220,564) | $ (228,909) | $ (259,150) | $ (310,387) | $ (350,495) | (4) % | (37) % | |||||||
Loans and leases held for investment at amortized cost, net | $ 3,887,765 | $ 3,999,482 | $ 4,246,666 | $ 4,539,915 | $ 4,886,782 | (3) % | (20) % | |||||||
Loans held for investment at fair value (3)(4) | $ 1,287,495 | $ 339,222 | $ 427,396 | $ 272,678 | $ 344,417 | 280 % | 274 % | |||||||
Total loans and leases held for investment (3)(4) | $ 5,175,260 | $ 4,338,704 | $ 4,674,062 | $ 4,812,593 | $ 5,231,199 | 19 % | (1) % | |||||||
Whole loans held on balance sheet (4)(5) | $ 6,025,227 | $ 5,129,763 | $ 5,224,477 | $ 5,220,366 | $ 5,593,988 | 17 % | 8 % | |||||||
Total assets | $ 11,037,507 | $ 9,586,050 | $ 9,244,828 | $ 8,827,463 | $ 8,472,351 | 15 % | 30 % | |||||||
Total deposits | $ 9,459,608 | $ 8,095,328 | $ 7,521,655 | $ 7,333,486 | $ 7,000,263 | 17 % | 35 % | |||||||
Total liabilities | $ 9,694,612 | $ 8,298,105 | $ 7,978,542 | $ 7,575,641 | $ 7,264,132 | 17 % | 33 % | |||||||
Total equity | $ 1,342,895 | $ 1,287,945 | $ 1,266,286 | $ 1,251,822 | $ 1,208,219 | 4 % | 11 % |
(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) | Beginning 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) | The balance at September 30, 2024 includes a |
(5) | 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 | ||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
Asset Quality Metrics (1): | ||||||||||
Allowance for loan and lease losses to total loans | 5.4 % | 5.4 % | 5.8 % | 6.4 % | 6.7 % | |||||
Allowance for loan and lease losses to commercial | 3.1 % | 2.7 % | 1.9 % | 1.8 % | 2.0 % | |||||
Allowance for loan and lease losses to consumer | 5.8 % | 5.9 % | 6.4 % | 7.2 % | 7.4 % | |||||
Gross allowance for loan and lease losses to consumer | 7.3 % | 7.5 % | 7.8 % | 8.3 % | 8.2 % | |||||
Net charge-offs | $ 55,805 | $ 66,818 | $ 80,483 | $ 82,511 | $ 68,795 | |||||
Net charge-off ratio (2) | 5.4 % | 6.2 % | 6.9 % | 6.6 % | 5.1 % |
(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: | ||||
September 30, | December 31, | |||
Unsecured personal | $ 3,068,078 | $ 3,726,830 | ||
Residential mortgages | 175,345 | 183,050 | ||
Secured consumer | 239,206 | 250,039 | ||
Total consumer loans held for investment | 3,482,629 | 4,159,919 | ||
Equipment finance (1) | 74,674 | 110,992 | ||
Commercial real estate | 371,796 | 380,322 | ||
Commercial and industrial | 179,230 | 199,069 | ||
Total commercial loans and leases held for investment | 625,700 | 690,383 | ||
Total loans and leases held for investment at amortized cost | 4,108,329 | 4,850,302 | ||
Allowance for loan and lease losses | (220,564) | (310,387) | ||
Loans and leases held for investment at amortized cost, net | $ 3,887,765 | $ 4,539,915 | ||
Loans held for investment at fair value (2)(3) | 1,287,495 | 272,678 | ||
Total loans and leases held for investment (3) | $ 5,175,260 | $ 4,812,593 |
(1) | Comprised of sales-type leases for equipment. |
(2) | Beginning 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. |
(3) | The balance at September 30, 2024 includes a |
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: | ||||
September 30, 2024 | December 31, 2023 | |||
Gross allowance for loan and lease losses (1) | $ 274,538 | $ 355,773 | ||
Recovery asset value (2) | (53,974) | (45,386) | ||
Allowance for loan and lease losses | $ 220,564 | $ 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 | ||||||||||||
September 30, 2024 | June 30, 2024 | |||||||||||
Consumer | Commercial | Total | Consumer | Commercial | Total | |||||||
Allowance for loan and lease losses, beginning of period | $ 210,729 | $ 18,180 | $ 246,280 | $ 12,870 | ||||||||
Credit loss expense for loans and leases held for investment | 45,813 | 1,647 | 47,460 | 30,760 | 5,817 | 36,577 | ||||||
Charge-offs | (68,388) | (721) | (69,109) | (77,494) | (594) | (78,088) | ||||||
Recoveries | 12,745 | 559 | 13,304 | 11,183 | 87 | 11,270 | ||||||
Allowance for loan and lease losses, end of period | $ 200,899 | $ 19,665 | $ 210,729 | $ 18,180 | ||||||||
Three Months Ended | ||||||||||||
September 30, 2023 | ||||||||||||
Consumer | Commercial | Total | ||||||||||
Allowance for loan and lease losses, beginning of period | $ 341,161 | $ 14,002 | ||||||||||
Credit loss expense for loans and leases held for investment | 63,733 | 394 | 64,127 | |||||||||
Charge-offs | (73,644) | (534) | (74,178) | |||||||||
Recoveries | 5,038 | 345 | 5,383 | |||||||||
Allowance for loan and lease losses, end of period | $ 336,288 | $ 14,207 |
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: | ||||||||||
September 30, 2024 | 30-59 | 60-89 | 90 or More | Total Days | Guaranteed | |||||
Unsecured personal | $ 25,749 | $ 20,156 | $ 22,352 | $ 68,257 | $ — | |||||
Residential mortgages | — | 145 | 167 | 312 | — | |||||
Secured consumer | 2,283 | 675 | 242 | 3,200 | — | |||||
Total consumer loans held for investment | $ 28,032 | $ 20,976 | $ 22,761 | $ 71,769 | $ — | |||||
Equipment finance | $ — | $ — | $ 4,850 | $ 4,850 | $ — | |||||
Commercial real estate | 3,882 | 678 | 6,106 | 10,666 | 8,681 | |||||
Commercial and industrial | 417 | 8,207 | 7,232 | 15,856 | 12,347 | |||||
Total commercial loans and leases held for investment | $ 4,299 | $ 8,885 | $ 18,188 | $ 31,372 | $ 21,028 | |||||
Total loans and leases held for investment at amortized cost | $ 32,331 | $ 29,861 | $ 40,949 | $ 103,141 | $ 21,028 | |||||
December 31, 2023 | 30-59 | 60-89 | 90 or More | Total Days | Guaranteed | |||||
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 (%) | |||||||||
September 30, | June 30, | September 30, | Q3 2024 vs Q2 2024 | Q3 2024 vs Q3 2023 | ||||||
Non-interest income: | ||||||||||
Origination fees | $ 71,465 | $ 77,131 | $ 60,912 | (7) % | 17 % | |||||
Servicing fees | 8,081 | 19,869 | 32,768 | (59) % | (75) % | |||||
Gain on sales of loans | 12,433 | 10,748 | 8,572 | 16 % | 45 % | |||||
Net fair value adjustments | (33,595) | (51,395) | (41,366) | (35) % | (19) % | |||||
Marketplace revenue | 58,384 | 56,353 | 60,886 | 4 % | (4) % | |||||
Other non-interest income | 3,256 | 2,360 | 2,958 | 38 % | 10 % | |||||
Total non-interest income | 61,640 | 58,713 | 63,844 | 5 % | (3) % | |||||
Total interest income | 240,377 | 219,634 | 207,412 | 9 % | 16 % | |||||
Total interest expense | 100,136 | 91,106 | 70,407 | 10 % | 42 % | |||||
Net interest income | 140,241 | 128,528 | 137,005 | 9 % | 2 % | |||||
Total net revenue | 201,881 | 187,241 | 200,849 | 8 % | 1 % | |||||
Provision for credit losses | 47,541 | 35,561 | 64,479 | 34 % | (26) % | |||||
Non-interest expense: | ||||||||||
Compensation and benefits | 57,408 | 56,540 | 58,497 | 2 % | (2) % | |||||
Marketing | 26,186 | 26,665 | 19,555 | (2) % | 34 % | |||||
Equipment and software | 12,789 | 12,360 | 12,631 | 3 % | 1 % | |||||
Depreciation and amortization | 13,341 | 13,072 | 11,250 | 2 % | 19 % | |||||
Professional services | 8,014 | 7,804 | 8,414 | 3 % | (5) % | |||||
Occupancy | 4,005 | 3,941 | 4,612 | 2 % | (13) % | |||||
Other non-interest expense | 14,589 | 11,876 | 13,076 | 23 % | 12 % | |||||
Total non-interest expense | 136,332 | 132,258 | 128,035 | 3 % | 6 % | |||||
Income before income tax expense | 18,008 | 19,422 | 8,335 | (7) % | 116 % | |||||
Income tax expense | (3,551) | (4,519) | (3,327) | (21) % | 7 % | |||||
Net income | $ 14,457 | $ 14,903 | $ 5,008 | (3) % | 189 % | |||||
Net income per share: | ||||||||||
Basic EPS | $ 0.13 | $ 0.13 | $ 0.05 | — % | 160 % | |||||
Diluted EPS | $ 0.13 | $ 0.13 | $ 0.05 | — % | 160 % | |||||
Weighted-average common shares – Basic | 112,042,202 | 111,395,025 | 109,071,180 | 1 % | 3 % | |||||
Weighted-average common shares – Diluted | 113,922,256 | 111,466,497 | 109,073,194 | 2 % | 4 % |
LENDINGCLUB CORPORATION NET INTEREST INCOME (In thousands, except percentages or as noted) (Unaudited) | ||||||||||||||||||
Consolidated LendingClub Corporation (1) | ||||||||||||||||||
Three Months Ended September 30, 2024 | Three Months Ended June 30, 2024 | Three Months Ended September 30, 2023 | ||||||||||||||||
Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||||||||||
Interest-earning assets (2) | ||||||||||||||||||
Cash, cash equivalents, restricted cash and other | $ 939,611 | $ 12,442 | 5.30 % | $ 976,330 | $ 13,168 | 5.40 % | $ 16,798 | 5.38 % | ||||||||||
Securities available for sale at fair value | 3,047,305 | 52,476 | 6.89 % | 2,406,767 | 42,879 | 7.13 % | 601,512 | 9,467 | 6.30 % | |||||||||
Loans held for sale at fair value | 899,434 | 30,326 | 13.49 % | 838,143 | 26,721 | 12.75 % | 286,111 | 9,582 | 13.40 % | |||||||||
Loans and leases held for investment: | ||||||||||||||||||
Unsecured personal loans | 3,045,150 | 103,291 | 13.57 % | 3,243,161 | 108,425 | 13.37 % | 4,257,360 | 142,118 | 13.35 % | |||||||||
Commercial and other consumer loans | 1,057,688 | 15,497 | 5.86 % | 1,097,846 | 16,394 | 5.97 % | 1,147,130 | 16,842 | 5.87 % | |||||||||
Loans and leases held for investment at amortized cost | 4,102,838 | 118,788 | 11.58 % | 4,341,007 | 124,819 | 11.50 % | 5,404,490 | 158,960 | 11.76 % | |||||||||
Loans held for investment at fair value (3)(4) | 972,698 | 26,345 | 10.83 % | 383,872 | 12,047 | 12.55 % | 385,148 | 12,605 | 13.09 % | |||||||||
Total loans and leases held for investment (3)(4) | 5,075,536 | 145,133 | 11.44 % | 4,724,879 | 136,866 | 11.59 % | 5,789,638 | 171,565 | 11.85 % | |||||||||
Total interest-earning assets | 9,961,886 | 240,377 | 9.65 % | 8,946,119 | 219,634 | 9.82 % | 7,926,348 | 207,412 | 10.47 % | |||||||||
Cash and due from banks and restricted cash | 41,147 | 55,906 | 69,442 | |||||||||||||||
Allowance for loan and lease losses | (225,968) | (245,478) | (354,263) | |||||||||||||||
Other non-interest earning assets | 624,198 | 632,253 | 691,641 | |||||||||||||||
Total assets | $ 10,401,263 | |||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||
Checking and money market accounts | $ 1,092,376 | $ 10,146 | 3.70 % | $ 10,084 | 3.69 % | $ 9,541 | 2.98 % | |||||||||||
Savings accounts and certificates of deposit | 6,944,586 | 86,717 | 4.97 % | 6,449,061 | 80,109 | 5.00 % | 5,357,717 | 59,968 | 4.44 % | |||||||||
Interest-bearing deposits | 8,036,962 | 96,863 | 4.79 % | 7,546,757 | 90,193 | 4.81 % | 6,629,437 | 69,509 | 4.16 % | |||||||||
Other interest-bearing liabilities (3) | 486,736 | 3,273 | 2.69 % | 56,628 | 913 | 6.45 % | 35,878 | 898 | 10.03 % | |||||||||
Total interest-bearing liabilities | 8,523,698 | 100,136 | 4.67 % | 7,603,385 | 91,106 | 4.82 % | 6,665,315 | 70,407 | 4.19 % | |||||||||
Non-interest bearing deposits | 344,577 | 303,199 | 183,728 | |||||||||||||||
Other liabilities | 225,467 | 215,608 | 271,118 | |||||||||||||||
Total liabilities | $ 9,093,742 | |||||||||||||||||
Total equity | $ 1,307,521 | |||||||||||||||||
Total liabilities and equity | $ 10,401,263 | |||||||||||||||||
Interest rate spread | 4.98 % | 5.00 % | 6.28 % | |||||||||||||||
Net interest income and net interest margin | $ 140,241 | 5.63 % | 5.75 % | 6.91 % |
(1) | Consolidated presentation reflects intercompany eliminations. | |
(2) | Nonaccrual loans and any related income are included in their respective loan categories. | |
(3) | Beginning 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. | |
(4) | The average balance for the third quarter of 2024 includes a |
LENDINGCLUB CORPORATION CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) (Unaudited) | ||||
September 30, | December 31, | |||
Assets | ||||
Cash and due from banks | $ 25,558 | $ 14,993 | ||
Interest-bearing deposits in banks | 991,372 | 1,237,511 | ||
Total cash and cash equivalents | 1,016,930 | 1,252,504 | ||
Restricted cash | 33,347 | 41,644 | ||
Securities available for sale at fair value ( | 3,311,418 | 1,620,262 | ||
Loans held for sale at fair value | 849,967 | 407,773 | ||
Loans and leases held for investment | 4,108,329 | 4,850,302 | ||
Allowance for loan and lease losses | (220,564) | (310,387) | ||
Loans and leases held for investment, net | 3,887,765 | 4,539,915 | ||
Loans held for investment at fair value (1)(2) | 1,287,495 | 272,678 | ||
Property, equipment and software, net | 167,809 | 161,517 | ||
Goodwill | 75,717 | 75,717 | ||
Other assets | 407,059 | 455,453 | ||
Total assets | $ 11,037,507 | $ 8,827,463 | ||
Liabilities and Equity | ||||
Deposits: | ||||
Interest-bearing | $ 9,099,092 | $ 7,001,680 | ||
Noninterest-bearing | 360,516 | 331,806 | ||
Total deposits | 9,459,608 | 7,333,486 | ||
Borrowings (1) | 2,683 | 19,354 | ||
Other liabilities | 232,321 | 222,801 | ||
Total liabilities | 9,694,612 | 7,575,641 | ||
Equity | ||||
Common stock, | 1,124 | 1,104 | ||
Additional paid-in capital | 1,692,538 | 1,669,828 | ||
Accumulated deficit | (347,196) | (388,806) | ||
Accumulated other comprehensive loss | (3,571) | (30,304) | ||
Total equity | 1,342,895 | 1,251,822 | ||
Total liabilities and equity | $ 11,037,507 | $ 8,827,463 |
(1) | Beginning 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. |
(2) | The balance at September 30, 2024 includes a |
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 | ||||||||||
September 30, | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, | ||||||
GAAP Net income | $ 14,457 | $ 14,903 | $ 12,250 | $ 10,155 | $ 5,008 | |||||
Less: Provision for credit losses | (47,541) | (35,561) | (31,927) | (41,907) | (64,479) | |||||
Less: Income tax expense | (3,551) | (4,519) | (4,278) | (3,529) | (3,327) | |||||
Pre-provision net revenue | $ 65,549 | $ 54,983 | $ 48,455 | $ 55,591 | $ 72,814 | |||||
For the three months ended | ||||||||||
September 30, | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, | ||||||
Non-interest income | $ 61,640 | $ 58,713 | $ 57,800 | $ 54,129 | $ 63,844 | |||||
Net interest income | 140,241 | 128,528 | 122,888 | 131,477 | 137,005 | |||||
Total net revenue | 201,881 | 187,241 | 180,688 | 185,606 | 200,849 | |||||
Non-interest expense | (136,332) | (132,258) | (132,233) | (130,015) | (128,035) | |||||
Pre-provision net revenue | 65,549 | 54,983 | 48,455 | 55,591 | 72,814 | |||||
Provision for credit losses | (47,541) | (35,561) | (31,927) | (41,907) | (64,479) | |||||
Income before income tax expense | 18,008 | 19,422 | 16,528 | 13,684 | 8,335 | |||||
Income tax expense | (3,551) | (4,519) | (4,278) | (3,529) | (3,327) | |||||
GAAP Net income | $ 14,457 | $ 14,903 | $ 12,250 | $ 10,155 | $ 5,008 | |||||
Tangible Book Value Per Common Share | ||||||||||
September 30, | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, | ||||||
GAAP common equity | $ 1,342,895 | $ 1,287,945 | $ 1,266,286 | $ 1,251,822 | $ 1,208,219 | |||||
Less: Goodwill | (75,717) | (75,717) | (75,717) | (75,717) | (75,717) | |||||
Less: Intangible assets | (9,439) | (10,293) | (11,165) | (12,135) | (13,151) | |||||
Tangible common equity | $ 1,257,739 | $ 1,201,935 | $ 1,179,404 | $ 1,163,970 | $ 1,119,351 | |||||
Book value per common share | ||||||||||
GAAP common equity | $ 1,342,895 | $ 1,287,945 | $ 1,266,286 | $ 1,251,822 | $ 1,208,219 | |||||
Common shares issued and outstanding | 112,401,990 | 111,812,215 | 111,120,415 | 110,410,602 | 109,648,769 | |||||
Book value per common share | $ 11.95 | $ 11.52 | $ 11.40 | $ 11.34 | $ 11.02 | |||||
Tangible book value per common share | ||||||||||
Tangible common equity | $ 1,257,739 | $ 1,201,935 | $ 1,179,404 | $ 1,163,970 | $ 1,119,351 | |||||
Common shares issued and outstanding | 112,401,990 | 111,812,215 | 111,120,415 | 110,410,602 | 109,648,769 | |||||
Tangible book value per common share | $ 11.19 | $ 10.75 | $ 10.61 | $ 10.54 | $ 10.21 |
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SOURCE LendingClub Corporation
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