LC
$13.08
Lendingclub
($.30)
(2.24%)
Earnings Details
1st Quarter March 2022
Wednesday, April 27, 2022 4:06:00 PM
Tweet Share Watch
Summary

Lending Club Raises Guidance but Remains In-line with Estimates

Lendingclub (LC) reported 1st Quarter March 2022 earnings of $0.39 per share on revenue of $289.5 million. The consensus earnings estimate was $0.25 per share on revenue of $262.1 million. Revenue grew 173.6% on a year-over-year basis.

The company said it expects second quarter revenue of $295.0 million to $305.0 million and now expects 2022 revenue of $1.15 billion to $1.25 billion. The company's previous guidance was 2022 revenue of $1.10 billion to $1.20 billion. The current consensus revenue estimate is $284.81 million for the quarter ending June 30, 2022 and revenue of $1.16 billion for the year ending December 31, 2022.

LendingClub Corp is an online marketplace connecting borrowers and investors to engage in transactions relating to standard or custom program loans.

Results
Reported Earnings
$0.39
Earnings Whisper
-
Consensus Estimate
$0.25
Reported Revenue
$289.5 Mil
Revenue Estimate
$262.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

LendingClub Reports First Quarter 2022 Results

Delivers Record Revenue and Net Income 
Revenue More than Doubles and Net Income Increases Over $85 million Year-over-Year
Raises 2022 Outlook

SAN FRANCISCO, April 27, 2022 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the first quarter ended March 31, 2022

"We grew our member base beyond four million to serve more everyday Americans who are looking to refinance out of higher cost credit card debt, save more of what they earn and find a better way to bank," said Scott Sanborn, LendingClub's CEO. "With another quarter of record results, we are clearly demonstrating the power of our loyal customers, significant data advantage and differentiated marketplace bank model. We believe we are well positioned to execute on our strategy and outperform the competition while helping our members effectively navigate the ever changing economic landscape."

Record First Quarter 2022 Results

  • Revenue of $289.5 million grew 174% year-over-year, outpacing originations growth of 117%.
    • Recurring stream of net interest income grew 20% sequentially to $99.7 million and increased 439% year-over-year.
      • LendingClub Bank's net interest margin increased sequentially to 8.6% from 8.3% and was up from 3.3% a year earlier, primarily reflecting growth in personal loans which generate a higher yield.
      • Total loans held for investment (excluding PPP) grew 23% from December 31, 2021 and 116% from March 31, 2021.
    •  Marketplace revenue of $180.0 million grew 6% sequentially and 120% year-over-year, reflecting growth in marketplace originations and strong platform investor demand.
  • Deposits of $4.0 billion were up 27% from December 31, 2021 and 68% from March 31, 2021, supporting growth in loans held for investment.
  • Provision for credit losses was $52.5 million, reflecting 23% growth in loans held for investment (excluding PPP) from December 31, 2021. Credit quality of our retained portfolio remained strong given the credit profile of our borrowers with an average FICO of 727.
  • Net income of $40.8 million rose 40% sequentially and by $87.9 million year-over-year.
  • Diluted earnings per share of $0.39 was up 44% sequentially and compared to a loss of $0.49 per share in the first quarter of 2021. The improvement in diluted earnings per share reflected increased revenue and greater operating efficiency.
  • Pre-tax, pre-provision income of $98.3 million increased 33% sequentially and by $126.8 million from the first quarter of 2021, consistent with revenue growth and operating efficiency which drove earnings growth for the same periods.

Three Months Ended


($ in millions)

March 31,
2022


December 31,
2021


March 31,
2021


Total net revenue

$              289.5


$                262.2


$              105.8


Non-interest expense

191.2


188.2


134.3


Pre-tax, pre-provision income (loss)

98.3


74.0


(28.5)


Provision for credit losses

52.5


45.1


21.5


Income tax benefit (expense)

(5.0)


0.2


2.8


Consolidated net income (loss)

$                 40.8


$                  29.1


$               (47.1)


Diluted EPS

$                 0.39


$                  0.27


$               (0.49)


 

Financial Outlook




(millions)

Second Quarter
2022

Full Year
2022

Versus Prior Full Year 2022
Guidance


Total revenue

$295M to $305M

$1.15B to $1.25B

 +$50M


Consolidated net income

$40M to $45M

$145M to $165M

 +$15M


 

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 4 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.

Conference Call and Webcast Information

The LendingClub first quarter 2022 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, April 27, 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 (844) 200-6205, or outside the U.S. +1 (929) 526-1599, with Access Code 007261, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until May 4, 2022, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 997383. 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, 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 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 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)


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


March 31,
2022


December 31,
2021


September 30,

2021


June 30,

2021


March 31,
2021


Q/Q


Y/Y

Operating Highlights:

Non-interest income

$   189,857


$     179,111


$      180,878


$   158,476


$     87,334


6 %


117 %

Net interest income

99,680


83,132


65,288


45,905


18,506


20 %


439 %

Total net revenue

289,537


262,243


246,166


204,381


105,840


10 %


174 %

Non-interest expense

191,204


188,220


178,775


160,139


134,252


2 %


42 %

Pre-tax, pre-provision income (loss)

98,333


74,023


67,391


44,242


(28,412)


33 %


N/M

Provision for credit losses

52,509


45,149


37,524


34,634


21,493


16 %


144 %

Income tax benefit (expense)

(4,988)


234


(2,682)


(237)


2,821


N/M


N/M

Consolidated net income (loss)

$     40,836


$       29,108


$        27,185


$       9,371


$    (47,084)


40 %


N/M















Basic EPS – common stockholders

$         0.40


$           0.29


$            0.27


$         0.10


$        (0.49)


38 %


N/M

Diluted EPS – common stockholders

$         0.39


$           0.27


$            0.26


$         0.09


$        (0.49)


44 %


N/M















LendingClub Bank Performance Metrics:

Net interest margin

8.6 %


8.3 %


7.1 %


5.5 %


3.3 %





Efficiency ratio (1)

63.6 %


69.5 %


67.5 %


69.0 %


104.8 %





Return on average equity (ROE)

22.5 %


21.7 %


26.5 %


34.7 %


N/A





Return on average total assets (ROA)

3.1 %


3.1 %


3.7 %


4.7 %


N/A



















LendingClub Bank Capital Ratios:

Common Equity Tier 1 Capital Ratio

16.0 %


16.7 %


18.0 %


18.7 %


20.9 %





Tier 1 Leverage Ratio

13.2 %


14.3 %


14.1 %


13.5 %


12.9 %



















Consolidated LendingClub Corporation Performance Metrics:

Net interest margin

8.3 %


7.6 %


6.3 %


4.7 %


1.8 %





Efficiency ratio (1)

66.0 %


71.8 %


72.6 %


78.4 %


126.8 %





Return on average equity (ROE)

18.7 %


14.1 %


13.8 %


5.0 %


N/A





Return on average total assets (ROA)

3.1 %


2.4 %


2.4 %


0.8 %


N/A





Marketing expense as a % of loan originations

1.7 %


1.7 %


1.6 %


1.3 %


1.3 %



















Loan originations (in millions) (2):














Total loan originations

$       3,217


$         3,069


$          3,107


$       2,722


$       1,483


5 %


117 %

Marketplace loans

$       2,360


$         2,308


$          2,471


$       2,182


$       1,139


2 %


107 %

Loan originations held for investment

$          856


$            761


$             636


$          541


$          344


12 %


149 %

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

27 %


25 %


20 %


20 %


23 %



















Servicing portfolio AUM (in millions) (3)

$     13,341


$       12,463


$        11,592


$     10,741


$     10,271


7 %


30 %















Balance Sheet Data:

Loans and leases held for investment, net, excluding PPP loans

$ 3,049,325


$  2,486,440


$   2,235,698


$  1,791,492


$  1,414,900


23 %


116 %

PPP loans

$    184,986


$     268,297


$      367,558


$     507,553


$     664,400


(31) %


(72) %

Total loans and leases held for investment, net

$ 3,234,311


$  2,754,737


$   2,603,256


$  2,299,045


$  2,079,300


17 %


56 %

Total assets

$ 5,574,425


$  4,900,319


$   4,750,760


$  4,370,101


$  4,491,089


14 %


24 %

Total deposits

$ 3,977,477


$  3,135,788


$   2,838,719


$  2,539,704


$  2,373,437


27 %


68 %

Total liabilities

$ 4,686,991


$  4,050,077


$   3,945,970


$  3,607,742


$  3,757,954


16 %


25 %

Total equity

$    887,434


$     850,242


$      804,790


$     762,359


$     733,135


4 %


21 %















Allowance Ratios:

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

5.5 %


5.0 %


3.9 %


3.0 %


1.7 %





Allowance for loan and lease losses to total loans and leases held for investment, excluding PPP loans

5.8 %


5.5 %


4.5 %


3.8 %


2.5 %





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

6.6 %


6.4 %


5.2 %


4.3 %


2.3 %





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

1.8 %


1.8 %


1.6 %


1.5 %


1.3 %





Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans

2.3 %


2.6 %


2.6 %


2.8 %


1.7 %







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 unsecured personal loans, auto loans and education and patient finance 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)

 



March 31,
2022


December 31,
2021

Unsecured personal

$            2,358,792


$            1,804,578

Residential mortgages

169,117


151,362

Secured consumer

93,600


65,976

Total consumer loans held for investment

2,621,509


2,021,916

Equipment finance (1)

143,780


149,155

Commercial real estate

313,710


310,399

Commercial and industrial (2)

343,297


417,656

Total commercial loans and leases held for investment

800,787


877,210

Total loans and leases held for investment

3,422,296


2,899,126

Allowance for loan and lease losses

(187,985)


(144,389)

Loans and leases held for investment, net

$            3,234,311


$            2,754,737



(1)

Comprised of sales-type leases for equipment.

(2)  

Includes $185.0 million and $268.3 million of Paycheck Protection Program (PPP) loans as of March 31, 2022 and December 31, 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


March 31, 2022


December 31, 2021


Consumer


Commercial


Total


Consumer


Commercial


Total

Allowance for loan and lease losses, beginning of period

$     128,812


$          15,577


$ 144,389


$       88,631


$          16,105


$ 104,736

Credit loss expense for loans and leases held for investment

53,718


(1,490)


52,228


45,595


(306)


45,289

Charge-offs

(9,017)


(72)


(9,089)


(5,557)


(313)


(5,870)

Recoveries

344


113


457


143


91


234

Allowance for loan and lease losses, end of period

$     173,857


$          14,128


$ 187,985


$     128,812


$          15,577


$ 144,389

 

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 



Three Months Ended


Change (%)


March 31,
2022


December 31,
2021


March 31,
2021


Q1 2022

vs

Q1 2021


Q1 2022

vs

Q4 2021

Non-interest income:










Marketplace revenue (1)

$          179,966


$          170,562


$            81,727


120 %


6 %

Other non-interest income

9,891


8,549


5,607


76 %


16 %

Total non-interest income

189,857


179,111


87,334


117 %


6 %











Interest income:










Interest on loans held for sale

7,450


7,153


5,157


44 %


4 %

Interest and fees on loans and leases held for investment

91,442


76,964


15,301


N/M


19 %

Interest on retail and certificate loans held for investment at fair value

6,969


9,236


20,262


(66) %


(25) %

Interest on other loans held for investment at fair value

593


762


1,479


(60) %


(22) %

Interest on securities available for sale

4,511


3,071


2,235


102 %


47 %

Other interest income

688


469


156


N/M


47 %

Total interest income

111,653


97,655


44,590


150 %


14 %











Interest expense:










Interest on deposits

3,438


2,616


1,014


239 %


31 %

Interest on short-term borrowings

435


561


1,264


(66) %


(22) %

Interest on retail notes, certificates and secured borrowings

6,969


9,236


20,262


(66) %


(25) %

Interest on Structured Program borrowings

764


1,642


3,208


(76) %


(53) %

Interest on other long-term debt

367


468


336


9 %


(22) %

Total interest expense

11,973


14,523


26,084


(54) %


(18) %











Net interest income

99,680


83,132


18,506


N/M


20 %











Total net revenue

289,537


262,243


105,840


174 %


10 %











Provision for credit losses

52,509


45,149


21,493


144 %


16 %











Non-interest expense:










Compensation and benefits

81,610


78,741


64,420


27 %


4 %

Marketing

55,080


50,708


19,545


182 %


9 %

Equipment and software

11,046


12,019


7,893


40 %


(8) %

Occupancy

6,019


4,706


6,900


(13) %


28 %

Depreciation and amortization

11,039


10,462


11,766


(6) %


6 %

Professional services

12,406


12,699


11,603


7 %


(2) %

Other non-interest expense

14,004


18,885


12,125


15 %


(26) %

Total non-interest expense

191,204


188,220


134,252


42 %


2 %











Income before income tax benefit (expense)

45,824


28,874


(49,905)


N/M


59 %

Income tax benefit (expense)

(4,988)


234


2,821


N/M


N/M

Consolidated net income (loss)

$            40,836


$            29,108


$           (47,084)


N/M


40 %











Basic EPS – common stockholders

$                 0.40


$                 0.29


$               (0.49)





Diluted EPS – common stockholders

$                 0.39


$                 0.27


$               (0.49)





Weighted-average common shares – Basic

101,493,561


100,320,691


92,666,169





Weighted-average common shares – Diluted

105,052,904


108,096,823


92,666,169






N/M – Not meaningful

(1) 

Marketplace revenue consists of the following:




Three Months Ended


Change (%)


March 31,
2022


December 31,
2021


March 31,
2021


Q1 2022

vs

Q1 2021


Q1 2022

vs

Q4 2021

Origination fees

$         122,093


$         118,353


$           55,559


120 %


3 %

Servicing fees

18,514


20,940


23,166


(20) %


(12) %

Gain on sales of loans

24,110


20,569


8,323


190 %


17 %

Net fair value adjustments

15,249


10,700


(5,321)


N/M


43 %

Total marketplace revenue

$         179,966


$         170,562


$           81,727


120 %


6 %

 

 

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT

(In thousands, except share and per share data)

(Unaudited)



Three months ended March 31, 2022


LendingClub

Bank


LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total

Non-interest income:








Marketplace revenue

$              164,835


$                 15,131


$                         —


$              179,966

Other non-interest income

19,498


4,223


(13,830)


9,891

Total non-interest income

184,333


19,354


(13,830)


189,857









Interest income:








Interest income

99,823


11,830



111,653

Interest expense

(3,644)


(8,329)



(11,973)

Net interest income

96,179


3,501



99,680









Total net revenue

280,512


22,855


(13,830)


289,537









Provision for credit losses

(52,509)




(52,509)

Non-interest expense

(178,459)


(26,575)


13,830


(191,204)

Income (Loss) before income tax benefit (expense)

49,544


(3,720)



45,824

Income tax benefit (expense)

(12,355)


17,727


(10,360)


(4,988)

Consolidated net income

$                 37,189


$                 14,007


$               (10,360)


$                 40,836



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

30,582


(1,708)



28,874

Income tax benefit

1,305


20,192


(21,263)


234

Consolidated net income

$                 31,887


$                 18,484


$               (21,263)


$                 29,108



Three Months Ended March 31, 2021


LendingClub

Bank


LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total

Non-interest income:








Marketplace revenue

$                 36,062


$                 45,665


$                         —


$                 81,727

Other non-interest income

19,700


4,098


(18,191)


5,607

Total non-interest income

55,762


49,763


(18,191)


87,334









Interest income:








Interest income

17,498


27,092



44,590

Interest expense

(1,247)


(24,837)



(26,084)

Net interest income

16,251


2,255



18,506









Total net revenue

72,013


52,018


(18,191)


105,840









Reversal of (Provision for) credit losses

(23,963)


2,470



(21,493)

Non-interest expense

(75,499)


(76,944)


18,191


(134,252)

Loss before income tax benefit

(27,449)


(22,456)



(49,905)

Income tax benefit

23


2,292


506


2,821

Consolidated net loss

$               (27,426)


$               (20,164)


$                       506


$               (47,084)

 

LENDINGCLUB BANK

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)



LendingClub Bank


Three Months Ended

March 31, 2022


Three Months Ended

December 31, 2021


Two Months Ended

March 31, 2021


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, restricted cash and other

$    829,707


$       683


0.33 %


$    651,003


$       468


0.29 %


$    737,555


$       138


0.11 %

Securities available for sale at fair value

274,089


1,276


1.86 %


200,091


680


1.36 %


232,001


444


1.15 %

Loans held for sale

228,529


6,422


11.24 %


122,007


5,199


17.04 %


64,720


1,615


14.97 %

Loans and leases held for investment:


















Unsecured personal loans

2,060,323


78,376


15.22 %


1,542,285


60,383


15.66 %


146,925


3,392


13.85 %

Secured consumer loans

232,235


2,275


3.92 %


436,260


4,029


3.69 %


521,399


3,215


3.70 %

Commercial loans and leases

620,660


7,588


4.89 %


619,648


8,663


5.59 %


605,495


5,119


5.07 %

PPP loans

222,517


3,203


5.76 %


325,133


3,888


4.78 %


621,292


3,575


3.45 %

Loans and leases held for investment

3,135,735


91,442


11.66 %


2,923,326


76,963


10.53 %


1,895,111


15,301


4.84 %

Total interest-earning assets

4,468,060


99,823


8.94 %


3,896,427


83,310


8.55 %


2,929,387


17,498


3.58 %



















Cash and due from banks

46,117






23,362






42,683





Allowance for loan and lease losses

(163,631)






(125,120)






(30,357)





Other non-interest earning assets

390,066






326,402






187,785





Total assets

$ 4,740,612






$ 4,121,071






$ 3,129,498























Interest-bearing liabilities


















Interest-bearing deposits


















Checking and money market accounts

$ 2,240,450


$    1,724


0.31 %


$ 2,146,687


$    1,716


0.32 %


$ 1,735,274


$       913


0.33 %

Savings accounts and certificates of deposit

1,071,133


1,714


0.65 %


580,361


900


0.62 %


323,800


101


0.19 %

Interest-bearing deposits

3,311,583


3,438


0.42 %


2,727,048


2,616


0.38 %


2,059,074


1,014


0.30 %

Short-term borrowings

165



— %


282



— %


1,829


0.3


0.09 %

Advances from PPPLF

234,872


206


0.35 %


342,335


307


0.36 %


405,989


233


0.35 %

Total interest-bearing liabilities

3,546,620


3,644


0.42 %


3,069,665


2,923


0.38 %


2,469,726


1,247


0.31 %



















Non-interest bearing deposits

300,218






283,066






156,034





Other liabilities

232,018






179,752






68,510





Total liabilities

$ 4,078,856






$ 3,532,483






$ 2,694,270





Total equity

$    661,756






$    588,588






$    435,228





Total liabilities and equity

$ 4,740,612






$ 4,121,071






$ 3,129,498























Interest rate spread





8.52 %






8.17 %






3.27 %



















Net interest income and net interest margin



$  96,179


8.61 %




$  80,387


8.25 %




$  16,251


3.33 %



(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)



Consolidated LendingClub Corporation (1)


Three Months Ended

March 31, 2022


Three Months Ended

December 31, 2021


Three Months Ended

March 31, 2021


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

$    892,921


$       688


0.31 %


$    710,472


$        469


0.26 %


$    918,148


$       156


0.10 %

Securities available for sale at fair value

325,155


4,511


5.55 %


265,140


3,071


4.63 %


362,621


2,235


2.71 %

Loans held for sale

255,139


7,450


11.68 %


184,708


7,153


15.49 %


198,592


5,157


12.01 %

Loans and leases held for investment:


















Unsecured personal loans

2,060,323


78,376


15.22 %


1,542,285


60,384


15.66 %


146,925


3,392


13.85 %

Secured consumer loans

232,235


2,275


3.92 %


436,260


4,029


3.69 %


521,399


3,215


3.70 %

Commercial loans and leases

620,660


7,588


4.89 %


619,648


8,663


5.59 %


605,495


5,119


5.07 %

PPP loans

222,517


3,203


5.76 %


325,133


3,888


4.78 %


621,292


3,575


3.45 %

Loans and leases held for investment

3,135,735


91,442


11.66 %


2,923,326


76,964


10.53 %


1,895,111


15,301


4.84 %

Retail and certificate loans held for investment at fair value

198,813


6,969


14.02 %


262,548


9,236


14.07 %


574,158


20,262


14.12 %

Other loans held for investment at fair value

18,523


593


12.80 %


24,184


762


12.60 %


46,212


1,479


12.80 %

Total interest-earning assets

4,826,286


111,653


9.25 %


4,370,378


97,655


8.94 %


3,994,842


44,590


5.34 %



















Cash and due from banks and restricted cash

92,683






73,258






137,216





Allowance for loan and lease losses

(163,631)






(125,120)






(30,357)





Other non-interest earning assets

486,363






465,010






326,040





Total assets

$ 5,241,701






$ 4,783,526






$ 4,427,741























Interest-bearing liabilities


















Interest-bearing deposits:


















Checking and money market accounts

$ 2,240,450


$    1,724


0.31 %


$ 2,146,687


$     1,716


0.32 %


$ 1,735,274


$       913


0.33 %

Savings accounts and certificates of deposit

1,071,133


1,714


0.64 %


580,361


900


0.62 %


323,800


101


0.19 %

Interest-bearing deposits

3,311,583


3,438


0.42 %


2,727,048


2,616


0.38 %


2,059,074


1,014


0.30 %

Short-term borrowings

20,371


435


8.56 %


36,823


561


6.08 %


98,818


1,264


5.12 %

Advances from PPPLF

234,872


206


0.35 %


342,335


307


0.36 %


405,989


233


0.35 %

Retail notes, certificates and secured borrowings

198,813


6,969


14.02 %


262,548


9,236


14.07 %


574,192


20,262


14.12 %

Structured Program borrowings

42,026


764


7.29 %


77,354


1,642


8.49 %


143,045


3,208


8.97 %

Other long-term debt

15,421


161


4.19 %


15,514


161


4.15 %


18,605


103


2.21 %

Total interest-bearing liabilities

3,823,086


11,973


1.25 %


3,461,622


14,523


1.68 %


3,299,723


26,084


3.24 %



















Non-interest bearing deposits

227,337






211,692






119,272





Other liabilities

319,241






282,339






286,907





Total liabilities

$ 4,369,664






$ 3,955,653






$ 3,705,902























Total equity

$    872,037






$    827,873






$    721,839





Total liabilities and equity

$ 5,241,701






$ 4,783,526






$ 4,427,741























Interest rate spread





8.00 %






7.26 %






2.11 %



















Net interest income and net interest margin



$  99,680


8.26 %




$   83,132


7.61 %




$  18,506


2.67 %



(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)



March 31,
2022


December 31,
2021

Assets




Cash and due from banks

$                30,986


$            35,670

Interest-bearing deposits in banks

1,022,239


651,456

Total cash and cash equivalents

1,053,225


687,126

Restricted cash

60,507


76,460

Securities available for sale at fair value (includes $402,944 and $256,170 at amortized cost, respectively)

390,317


263,530

Loans held for sale (includes $156,730 and $142,370 at fair value, respectively)

156,730


391,248

Loans and leases held for investment

3,422,296


2,899,126

Allowance for loan and lease losses

(187,985)


(144,389)

Loans and leases held for investment, net

3,234,311


2,754,737

Retail and certificate loans held for investment at fair value

168,906


229,719

Other loans held for investment at fair value

15,384


21,240

Property, equipment and software, net

111,503


97,996

Goodwill

75,717


75,717

Other assets

307,825


302,546

Total assets

$          5,574,425


$      4,900,319

Liabilities and Equity




Deposits:




Interest-bearing

$          3,715,847


$      2,919,203

Noninterest-bearing

261,630


216,585

Total deposits

3,977,477


3,135,788

Short-term borrowings

13,188


27,780

Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

193,371


271,933

Retail notes, certificates and secured borrowings at fair value

168,906


229,719

Payable on Structured Program borrowings

20,347


65,451

Other long-term debt

15,388


15,455

Other liabilities

298,314


303,951

Total liabilities

4,686,991


4,050,077

Equity




Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 shares issued and outstanding


Common stock, $0.01 par value; 180,000,000 shares authorized; 102,194,037 and 101,043,924 shares issued and outstanding, respectively

1,022


1,010

Additional paid-in capital (1)

1,576,147


1,609,820

Accumulated deficit (1)

(676,594)


(767,634)

Accumulated other comprehensive income

(13,141)


7,046

Total equity

887,434


850,242

Total liabilities and equity

$          5,574,425


$      4,900,319



(1)

As a result of the adoption of Accounting Standards Update 2020-06, reflects a reclassification in the first quarter of 2021 from Accumulated Deficit to Additional Paid-in Capital of the $50.2 million deemed dividend that was recorded in the first quarter of 2020 related to the convertible Series A preferred stock.

 

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


March 31,
2022


December 31,
2021


March 31, 2
022


December 31,
2021


March 31,
2022


December 31,
2021


March 31,
2022


December 31,
2021

Assets
















Total cash and cash equivalents

$     1,014,464


$       659,919


$        119,711


$         88,268


$         (80,950)


$        (61,061)


$     1,053,225


$       687,126

Restricted cash



64,165


76,540


(3,658)


(80)


60,507


76,460

Securities available for sale at fair value

345,964


205,730


44,353


57,800




390,317


263,530

Loans held for sale

145,117


335,449


11,613


55,799




156,730


391,248

Loans and leases held for investment, net

3,234,311


2,754,737






3,234,311


2,754,737

Retail and certificate loans held for investment at fair value



168,906


229,719




168,906


229,719

Other loans held for investment at fair value



15,384


21,240




15,384


21,240

Property, equipment and software, net

57,482


36,424


54,021


61,572




111,503


97,996

Investment in subsidiary



591,051


557,577


(591,051)


(557,577)



Goodwill

75,717


75,717






75,717


75,717

Other assets

292,043


254,075


149,099


168,042


(133,317)


(119,571)


307,825


302,546

Total assets

5,165,098


4,322,051


1,218,303


1,316,557


(808,976)


(738,289)


5,574,425


4,900,319

Liabilities and Equity
















Total deposits

4,062,084


3,196,929




(84,607)


(61,141)


3,977,477


3,135,788

Short-term borrowings

164


165


13,024


27,615




13,188


27,780

Advances from PPPLF

193,371


271,933






193,371


271,933

Retail notes, certificates and secured borrowings at fair value



168,906


229,719




168,906


229,719

Payable on Structured Program borrowings



20,347


65,451




20,347


65,451

Other long-term debt



15,388


15,455




15,388


15,455

Other liabilities

218,365


218,775


143,701


150,727


(63,752)


(65,551)


298,314


303,951

Total liabilities

4,473,984


3,687,802


361,366


488,967


(148,359)


(126,692)


4,686,991


4,050,077

Total equity

691,114


634,249


856,937


827,590


(660,617)


(611,597)


887,434


850,242

Total liabilities and equity

$     5,165,098


$     4,322,051


$     1,218,303


$     1,316,557


$       (808,976)


$      (738,289)


$     5,574,425


$     4,900,319

 

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SOURCE LendingClub Corporation