LendingClub Reports Fourth Quarter and Full Year 2021 Results
Record Q4 Revenue and Net Income Exceed High End of Guidance and Drive Full Year Profitability
2022 Outlook Reflects Revenue Growth of approximately 40% and Net Income Growth of $100+ Million
SAN FRANCISCO, Jan. 26, 2022 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2021.
"We have closed out a transformative year at LC by delivering the growth, innovation, and efficiency of a fintech along with the funding advantages, revenue diversity, and regulatory clarity of a bank," said Scott Sanborn, LendingClub's CEO. "We expect our transformed business model and data and membership advantages to help drive more than $100 million in incremental earnings in 2022 as we continue to evolve our member-focused business into a multi-product, digital marketplace bank."
Record Full Year 2021 Results Driven by Return to Growth, Transformed Business Economics and Increased Operational Efficiency
- Revenue of $818.6 million, up 157% compared to 2020, with marketplace revenue 136% higher and the new recurring stream of net interest income 259% higher year-over-year.
- Achieved GAAP profitability during 2021, with net income of $18.6 million for the year ended December 31, 2021, compared to a net loss of $187.5 million in 2020.
- Results driven by initiatives undertaken in 2021 and in prior years to improve efficiency, as well as the transformational business model changes with the bank acquisition, both of which position LendingClub well to generate continued strong revenue and earnings growth.
- Key achievements for the year include acquiring and integrating the bank, consolidating the personal, auto refinance and purchase finance loans onto one origination platform, and accelerating membership acquisition.
Record Fourth Quarter 2021 Results Exceed Expectations
- Revenue of $262.2 million, with sequential growth of 7% outpacing growth in originations.
- New recurring stream of net interest income grew 27% sequentially to $83.1 million, as the bank's loan portfolio (excluding PPP loans and including $248.9 million of yacht loans transferred to held for sale) grew 22% from September 30, 2021.
- Marketplace revenue of $170.6 million declined 2% sequentially, primarily reflecting a reduction in loans sold through the marketplace as loan retention increased from 20% in the third quarter of 2021 to 25% of total originations in the fourth quarter of 2021, driving 43% growth in the personal loan portfolio retained on the balance sheet at period end.
- Deposits grew 10% sequentially to $3.1 billion, in line with growth in our loans held for investment.
- Net income of $29.1 million, up 7% sequentially, and diluted earnings per share of $0.27 as strong revenue growth exceeded the impact of investments in loan retention, marketing and technology.
- Net income was negatively impacted by $56.6 million of notable items: $39.5 million of Current Expected Credit Loss (CECL) provisioning, less net charge-offs, and $17.1 million of net revenue deferrals both driven by strong retained loan growth. These items reduced our earnings per share by $0.53 in the fourth quarter of 2021.
Three Months Ended | Year Ended | |||||||||||||
($ in millions) | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||
Loan originations(1) | $ | 3,069.1 | $ | 3,106.7 | $ | 912.0 | $ | 10,381.3 | $ | 4,343.4 | ||||
Total revenue | $ | 262.2 | $ | 246.2 | $ | 75.9 | $ | 818.6 | $ | 318.1 | ||||
Consolidated net income (loss) | $ | 29.1 | $ | 27.2 | $ | (26.7) | $ | 18.6 | $ | (187.5) | ||||
(1) | Includes unsecured personal loans, auto loans, and education and patient finance loans only. |
Financial Outlook |
(millions) | First Quarter 2022 | Full Year 2022 |
Total revenue | $255M to $265M | $1.1B to $1.2B |
Consolidated net income | $25M to $30M | $130M to $150M |
Notable Items Impacting Fourth Quarter 2021 Consolidated Net Income |
(millions) | Consolidated Net | Per Diluted Share | Commentary |
Revenue deferrals, net of amortization | $(17.1) | $0.16 | Origination fee and cost deferrals, net of interest income amortization during the period |
Provision for credit losses, less net charge-offs | $(39.5) | $0.37 | Primarily for consumer loans originated and retained in the quarter |
Total | $(56.6) | $0.53 |
(1) | Amounts presented net of tax. |
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $70 billion in loans, our artificial intelligence-driven credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 3.9 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.
Conference Call and Webcast Information
The LendingClub fourth quarter 2021 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, January 26, 2022. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 1727043, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until February 2, 2022, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 5387149. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), Twitter handle (@LendingClub) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.
Contacts
For Investors:
[email protected]
Media Contact:
[email protected]
Safe Harbor Statement
Some of the statements above, including statements regarding our competitive advantages, ability to grow and evolve our business, anticipated future performance and financial results, are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing customers; competition; overall economic conditions; the regulatory environment; demand for the types of loans facilitated by us; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, each as filed with the Securities and Exchange Commission, as well as our subsequent reports on Form 10-Q and 10-K each as filed with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
LENDINGCLUB CORPORATION | ||||||||||||||||||||
OPERATING HIGHLIGHTS | ||||||||||||||||||||
(In thousands, except percentages or as noted) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
The information in the following tables is presented for the consolidated LendingClub Corporation, unless specifically noted for LendingClub Bank, the company's wholly-owned subsidiary: | ||||||||||||||||||||
As of and for the three months ended | % Change | |||||||||||||||||||
December 31, | September 30, | June 30, 2021 | March 31, 2021 | December 31, | Q/Q | Y/Y | ||||||||||||||
Operating Highlights: | ||||||||||||||||||||
Non-interest income | $ 179,111 | $ 180,878 | $ 158,476 | $ 87,334 | $ 72,597 | (1) | % | 147 | % | |||||||||||
Net interest income | $ 83,132 | $ 65,288 | $ 45,905 | $ 18,506 | 2,899 | 27 | % | N/M | ||||||||||||
Total net revenue | $ 262,243 | $ 246,166 | $ 204,381 | $ 105,840 | $ 75,496 | 7 | % | 247 | % | |||||||||||
Consolidated net income (loss) | $ 29,108 | $ 27,185 | $ 9,371 | $ (47,084) | $ (26,655) | 7 | % | N/M | ||||||||||||
Basic EPS – common stockholders | $ 0.29 | $ 0.27 | $ 0.10 | $ (0.49) | $ (0.29) | 7 | % | N/M | ||||||||||||
Diluted EPS – common stockholders | $ 0.27 | $ 0.26 | $ 0.09 | $ (0.49) | $ (0.29) | 4 | % | N/M | ||||||||||||
LendingClub Bank Performance Metrics: | ||||||||||||||||||||
Net interest margin | 8.3 | % | 7.1 | % | 5.5 | % | 3.3 | % | N/A | |||||||||||
Efficiency ratio (1) | 69.5 | % | 67.5 | % | 69.0 | % | 104.8 | % | N/A | |||||||||||
Return on average equity (ROE) | 21.7 | % | 26.5 | % | 34.7 | % | N/A | N/A | ||||||||||||
Return on average total assets (ROA) | 3.10 | % | 3.7 | % | 4.7 | % | N/A | N/A | ||||||||||||
LendingClub Bank Capital Ratios: | ||||||||||||||||||||
Common Equity Tier 1 Capital Ratio | 16.7 | % | 18.0 | % | 18.7 | % | 20.9 | % | N/A | |||||||||||
Tier 1 Leverage Ratio | 14.3 | % | 14.1 | % | 13.5 | % | 12.9 | % | N/A | |||||||||||
Consolidated LendingClub Corporation Performance Metrics: | ||||||||||||||||||||
Net interest margin | 7.6 | % | 6.3 | % | 4.7 | % | 1.8 | % | 0.7 | % | ||||||||||
Efficiency ratio (1) | 71.8 | % | 72.6 | % | 78.4 | % | 126.8 | % | N/A | |||||||||||
Return on average equity (ROE) | 14.1 | % | 13.8 | % | 5.0 | % | N/A | N/A | ||||||||||||
Return on average total assets (ROA) | 2.4 | % | 2.4 | % | 0.8 | % | N/A | N/A | ||||||||||||
Marketing expense as a % of loan originations | 1.7 | % | 1.6 | % | 1.3 | % | 1.3 | % | 0.9 | % | ||||||||||
Loan originations (in millions) (2): | ||||||||||||||||||||
Marketplace loans | $ 2,308 | $ 2,471 | $ 2,182 | $ 1,139 | $ 912 | (7) | % | 153 | % | |||||||||||
Loan originations held for investment | $ 761 | $ 636 | $ 541 | $ 344 | $ — | 20 | % | N/A | ||||||||||||
Total loan originations | $ 3,069 | $ 3,107 | $ 2,722 | $ 1,483 | $ 912 | (1) | % | 237 | % | |||||||||||
Servicing portfolio AUM (in millions) (3) | $ 12,463 | $ 11,592 | $ 10,741 | $ 10,271 | $ 11,002 | 8 | % | (6) | % | |||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Loans and leases held for investment, net, excluding PPP loans | $ 2,486,440 | $ 2,235,698 | $ 1,791,492 | $ 1,414,900 | $ — | 11 | % | N/A | ||||||||||||
PPP loans | $ 268,297 | $ 367,558 | $ 507,553 | $ 664,400 | $ — | (27) | % | N/A | ||||||||||||
Total loans and leases held for investment, net | $ 2,754,737 | $ 2,603,256 | $ 2,299,045 | $ 2,079,300 | $ — | 6 | % | N/A | ||||||||||||
Total assets | $ 4,900,319 | $ 4,750,760 | $ 4,370,101 | $ 4,491,089 | $ 1,863,293 | 3 | % | 163 | % | |||||||||||
Total deposits | $ 3,135,788 | $ 2,838,719 | $ 2,539,704 | $ 2,373,437 | $ — | 10 | % | N/A | ||||||||||||
Total liabilities | $ 4,050,077 | $ 3,945,970 | $ 3,607,742 | $ 3,757,954 | $ 1,139,122 | 3 | % | 256 | % | |||||||||||
Total equity | $ 850,242 | $ 804,790 | $ 762,359 | $ 733,135 | $ 724,171 | 6 | % | 17 | % | |||||||||||
Allowance Ratios: | ||||||||||||||||||||
Allowance for loan and lease losses to total loans and leases held for investment | 5.0 | % | 3.9 | % | 3.0 | % | 1.7 | % | N/A | |||||||||||
Allowance for loan and lease losses to total loans and leases held for investment, excluding PPP loans | 5.5 | % | 4.5 | % | 3.8 | % | 2.5 | % | N/A | |||||||||||
Allowance for loan and lease losses to consumer loans and leases held for investment | 6.4 | % | 5.2 | % | 4.3 | % | 2.3 | % | N/A | |||||||||||
Allowance for loan and lease losses to commercial loans and leases held for investment | 1.8 | % | 1.6 | % | 1.5 | % | 1.3 | % | N/A | |||||||||||
Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans | 2.6 | % | 2.6 | % | 2.8 | % | 1.7 | % | N/A | |||||||||||
N/M – Not meaningful | |
N/A – Not applicable | |
(1) | Calculated as the ratio of non-interest expense to total net revenue. |
(2) | Includes unsecured personal loans, auto loans, and education and patient finance loans only. |
(3) | Loans serviced on our platform, which includes personal and auto loans serviced for others and retained for investment by the Company. |
LENDINGCLUB CORPORATION | |||
LOANS AND LEASES HELD FOR INVESTMENT | |||
(In thousands, except percentages or as noted) | |||
(Unaudited) | |||
December 31, | September 30, | ||
Unsecured personal | $ 1,804,578 | $ 1,258,279 | |
Residential mortgages | 151,362 | 141,200 | |
Secured consumer | 65,976 | 314,539 | |
Other consumer | — | 1,220 | |
Total consumer loans held for investment | 2,021,916 | 1,715,238 | |
Equipment finance (1) | 149,155 | 157,457 | |
Commercial real estate | 310,399 | 316,135 | |
Commercial and industrial (2) | 417,656 | 519,162 | |
Total commercial loans and leases held for investment | 877,210 | 992,754 | |
Total loans and leases held for investment | 2,899,126 | 2,707,992 | |
Allowance for loan and lease losses | (144,389) | (104,736) | |
Loans and leases held for investment, net | $ 2,754,737 | $ 2,603,256 | |
(1) | Comprised of sales-type leases for equipment. |
(2) | Includes $268.3 million and $367.6 million of Paycheck Protection Program (PPP) loans as of December 31, 2021 and September 30, 2021, respectively. Such loans are guaranteed by the Small Business Association and, therefore, the Company determined no allowance for expected credit losses is required on these loans. |
LENDINGCLUB CORPORATION | |||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||
(In thousands, except percentages or as noted) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
December 31, 2021 | September 30, 2021 | ||||||||||
Consumer | Commercial | Total | Consumer | Commercial | Total | ||||||
Allowance for loan and lease losses, beginning of period | $ 88,631 | $ 16,105 | $ 104,736 | $ 54,058 | $ 17,023 | $ 71,081 | |||||
Credit loss expense for loans and leases held for investment | 45,595 | (306) | 45,289 | 37,695 | (562) | 37,133 | |||||
Charge-offs | (5,557) | (313) | (5,870) | (3,142) | (1,194) | (4,336) | |||||
Recoveries | 143 | 91 | 234 | 20 | 838 | 858 | |||||
Allowance for loan and lease losses, end of period | $ 128,812 | $ 15,577 | $ 144,389 | $ 88,631 | $ 16,105 | $ 104,736 | |||||
LENDINGCLUB CORPORATION | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(In thousands, except share and per share data) | ||||||
(Unaudited) | ||||||
Three Months Ended | ||||||
December 31, | September 30, | Change (%) | ||||
Non-interest income: | ||||||
Marketplace revenue (1) | $ 170,562 | $ 174,556 | (2) | % | ||
Other non-interest income | 8,549 | 6,322 | 35 | % | ||
Total non-interest income | 179,111 | 180,878 | (1) | % | ||
Interest income: | ||||||
Interest on loans held for sale | 7,153 | 8,536 | (16) | % | ||
Interest and fees on loans and leases held for investment | 76,964 | 57,644 | 34 | % | ||
Interest on retail and certificate loans held for investment at fair value | 9,236 | 12,172 | (24) | % | ||
Interest on other loans held for investment at fair value | 762 | 973 | (22) | % | ||
Interest on securities available for sale | 3,071 | 3,180 | (3) | % | ||
Other interest income | 469 | 355 | 32 | % | ||
Total interest income | 97,655 | 82,860 | 18 | % | ||
Interest expense: | ||||||
Interest on deposits | 2,616 | 1,899 | 38 | % | ||
Interest on short-term borrowings | 561 | 849 | (34) | % | ||
Interest on retail notes, certificates and secured borrowings | 9,236 | 12,172 | (24) | % | ||
Interest on Structured Program borrowings | 1,642 | 2,120 | (23) | % | ||
Interest on other long-term debt | 468 | 532 | (12) | % | ||
Total interest expense | 14,523 | 17,572 | (17) | % | ||
Net interest income | 83,132 | 65,288 | 27 | % | ||
Total net revenue | 262,243 | 246,166 | 7 | % | ||
Provision for credit losses | 45,149 | 37,524 | 20 | % | ||
Non-interest expense: | ||||||
Compensation and benefits | 78,741 | 73,304 | 7 | % | ||
Marketing | 50,708 | 50,782 | — | % | ||
Equipment and software | 12,019 | 10,297 | 17 | % | ||
Occupancy | 4,706 | 6,486 | (27) | % | ||
Depreciation and amortization | 10,462 | 10,549 | (1) | % | ||
Professional services | 12,699 | 11,750 | 8 | % | ||
Other non-interest expense | 18,885 | 15,607 | 21 | % | ||
Total non-interest expense | 188,220 | 178,775 | 5 | % | ||
Income before income tax expense (benefit) | 28,874 | 29,867 | (3) | % | ||
Income tax expense (benefit) | (234) | 2,682 | N/M | |||
Consolidated net income | $ 29,108 | $ 27,185 | 7 | % | ||
Net income per share attributable to common stockholders – Basic | $ 0.29 | $ 0.27 | ||||
Net income per share attributable to common stockholders – Diluted | $ 0.27 | $ 0.26 | ||||
Weighted-average common shares – Basic | 100,320,691 | 99,073,507 | ||||
Weighted-average common shares – Diluted | 108,096,823 | 106,108,662 | ||||
N/M – Not meaningful | ||||||
LENDINGCLUB CORPORATION | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued) | ||||||
(In thousands, except share and per share data) | ||||||
(Unaudited) | ||||||
(1) Marketplace revenue consists of the following: | ||||||
Three Months Ended | ||||||
December 31, | September 30, | Change (%) | ||||
Origination fees | $ 118,353 | $ 129,125 | (8) | % | ||
Servicing fees | 20,940 | 20,819 | 1 | % | ||
Gain on sales of loans | 20,569 | 21,907 | (6) | % | ||
Net fair value adjustments | 10,700 | 2,705 | N/M | |||
Total marketplace revenue | $ 170,562 | $ 174,556 | (2) | % | ||
LENDINGCLUB CORPORATION | ||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(In thousands, except share and per share data) | ||||||
(Unaudited) | ||||||
Year Ended December 31, | ||||||
2021 | 2020(1) | Change (%) | ||||
Non-interest income: | ||||||
Marketplace revenue (2) | $ 578,580 | $ 245,314 | 136 | % | ||
Other non-interest income | 27,219 | 13,442 | 102 | % | ||
Total non-interest income | 605,799 | 258,756 | 134 | % | ||
Interest income: | ||||||
Interest on loans held for sale | 29,540 | 72,876 | (59) | % | ||
Interest and fees on loans and leases held for investment | 188,977 | — | N/M | |||
Interest on retail and certificate loans held for investment at fair value | 57,684 | 115,952 | (50) | % | ||
Interest on other loans held for investment at fair value | 4,436 | 7,688 | (42) | % | ||
Interest on securities available for sale | 11,025 | 12,125 | (9) | % | ||
Other interest income | 1,170 | 1,053 | 11 | % | ||
Total interest income | 292,832 | 209,694 | 40 | % | ||
Interest expense: | ||||||
Interest on deposits | 7,228 | — | N/M | |||
Interest on short-term borrowings | 3,677 | 17,837 | (79) | % | ||
Interest on retail notes, certificates and secured borrowings | 57,684 | 115,952 | (50) | % | ||
Interest on Structured Program borrowings | 9,638 | 16,204 | (41) | % | ||
Interest on other long-term debt | 1,774 | 373 | N/M | |||
Total interest expense | 80,001 | 150,366 | (47) | % | ||
Net interest income | 212,831 | 59,328 | 259 | % | ||
Total net revenue | 818,630 | 318,084 | 157 | % | ||
Provision for credit losses | 138,800 | 3,382 | N/M | |||
Non-interest expense: | ||||||
Compensation and benefits | 288,390 | 252,517 | 14 | % | ||
Marketing | 156,142 | 51,518 | 203 | % | ||
Equipment and software | 39,490 | 26,842 | 47 | % | ||
Occupancy | 24,249 | 27,870 | (13) | % | ||
Depreciation and amortization | 44,285 | 54,030 | (18) | % | ||
Professional services | 47,572 | 41,780 | 14 | % | ||
Other non-interest expense | 61,258 | 47,762 | 28 | % | ||
Total non-interest expense | 661,386 | 502,319 | 32 | % | ||
Income (Loss) before income tax expense (benefit) | 18,444 | (187,617) | N/M | |||
Income tax expense (benefit) | (136) | (79) | N/M | |||
Consolidated net income (loss) | $ 18,580 | $ (187,538) | N/M | |||
Basic EPS – common stockholders | $ 0.19 | $ (2.63) | ||||
Diluted EPS – common stockholders | $ 0.18 | $ (2.63) | ||||
Weighted-average common shares – Basic | 97,486,754 | 77,934,302 | ||||
Weighted-average common shares – Diluted | 102,147,353 | 77,934,302 | ||||
Basic EPS – preferred stockholders | $ 0.19 | $ 1.39 | ||||
Diluted EPS – preferred stockholders | $ 0.00 | $ 1.39 | ||||
Weighted-average common shares, as converted – Basic | 653,118 | 12,505,393 | ||||
Weighted-average common shares, as converted – Diluted | — | 12,505,393 | ||||
N/M – Not meaningful | ||||||
(1) Prior period amounts have been reclassified to conform to the current period presentation. | ||||||
(2) Marketplace revenue consists of the following: | ||||||
Year Ended December 31, | ||||||
2021 | 2020 | Change (%) | ||||
Origination fees | $ 416,839 | $ 207,640 | 101 | % | ||
Servicing fees | 87,639 | 111,864 | (22) | % | ||
Gain on sales of loans | 70,116 | 30,812 | 128 | % | ||
Net fair value adjustments | 3,986 | (105,002) | N/M | |||
Total marketplace revenue | $ 578,580 | $ 245,314 | 136 | % | ||
LENDINGCLUB CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT | |||||||
(In thousands, except share and per share data) | |||||||
(Unaudited) | |||||||
Three months ended December 31, 2021 | |||||||
LendingClub Bank | LendingClub Corporation (Parent only) | Intercompany Eliminations | Total | ||||
Non-interest income: | |||||||
Marketplace revenue | $ 146,936 | $ 23,626 | $ — | $ 170,562 | |||
Other non-interest income | 21,520 | 4,199 | (17,170) | 8,549 | |||
Total non-interest income | 168,456 | 27,825 | (17,170) | 179,111 | |||
Interest income: | |||||||
Interest income | 83,310 | 14,345 | — | 97,655 | |||
Interest expense | (2,923) | (11,600) | — | (14,523) | |||
Net interest income | 80,387 | 2,745 | — | 83,132 | |||
Total net revenue | 248,843 | 30,570 | (17,170) | 262,243 | |||
Reversal of (provision for) credit losses | (45,244) | 95 | — | (45,149) | |||
Non-interest expense | (173,017) | (32,373) | 17,170 | (188,220) | |||
Income (Loss) before income tax benefit (expense) | 30,582 | (1,708) | — | 28,874 | |||
Income tax benefit (expense) | 1,305 | 20,192 | (21,263) | 234 | |||
Consolidated net income (loss) | $ 31,887 | $ 18,484 | $ (21,263) | $ 29,108 | |||
Three Months Ended September 30, 2021 | |||||||
LendingClub Bank | LendingClub Corporation (Parent only) | Intercompany Eliminations | Total | ||||
Non-interest income: | |||||||
Marketplace revenue | $ 151,109 | $ 23,447 | $ — | $ 174,556 | |||
Other non-interest income | 25,393 | 4,140 | (23,211) | 6,322 | |||
Total non-interest income | 176,502 | 27,587 | (23,211) | 180,878 | |||
Interest income: | |||||||
Interest income | 64,606 | 18,254 | — | 82,860 | |||
Interest expense | (2,270) | (15,302) | — | (17,572) | |||
Net interest income | 62,336 | 2,952 | — | 65,288 | |||
Total net revenue | 238,838 | 30,539 | (23,211) | 246,166 | |||
Reversal of (provision for) credit losses | (38,019) | 495 | — | (37,524) | |||
Non-interest expense | (161,101) | (40,885) | 23,211 | (178,775) | |||
Income (Loss) before income tax benefit | 39,718 | (9,851) | — | 29,867 | |||
Income tax benefit (expense) | (4,670) | 12,607 | (10,619) | (2,682) | |||
Consolidated net income (loss) | $ 35,048 | $ 2,756 | $ (10,619) | $ 27,185 | |||
LENDINGCLUB BANK | |||||||||||||
NET INTEREST INCOME | |||||||||||||
(In thousands, except percentages or as noted) | |||||||||||||
(Unaudited) | |||||||||||||
LendingClub Bank | |||||||||||||
Three Months Ended December 31, 2021 | Three Months Ended September 30, 2021 | ||||||||||||
Average | Interest | Average | Average | Interest | Average | ||||||||
Interest-earning assets (1) | |||||||||||||
Cash, cash equivalents and restricted cash | $ 651,003 | $ 468 | 0.29 | % | $ 695,294 | $ 352 | 0.20 | % | |||||
Securities available for sale at fair value | 200,091 | 680 | 1.36 | % | 182,882 | 632 | 1.38 | % | |||||
Loans held for sale | 122,007 | 5,199 | 17.04 | % | 145,262 | 5,978 | 16.46 | % | |||||
Loans and leases held for investment: | |||||||||||||
Unsecured personal loans | 1,542,285 | 60,383 | 15.66 | % | 991,297 | 39,532 | 15.95 | % | |||||
Secured consumer loans | 436,260 | 4,029 | 3.69 | % | 464,194 | 4,688 | 4.04 | % | |||||
Commercial loans and leases | 619,648 | 8,663 | 5.59 | % | 616,823 | 7,887 | 5.11 | % | |||||
PPP loans | 325,133 | 3,888 | 4.78 | % | 436,785 | 5,537 | 5.07 | % | |||||
Loans and leases held for investment | 2,923,326 | 76,963 | 10.53 | % | 2,509,099 | 57,644 | 9.19 | % | |||||
Total interest-earning assets | 3,896,427 | 83,310 | 8.55 | % | 3,532,537 | 64,606 | 7.32 | % | |||||
Cash and due from banks | 23,362 | 29,290 | |||||||||||
Allowance for loan and lease losses | (125,120) | (86,686) | |||||||||||
Other non-interest earning assets | 326,402 | 270,594 | |||||||||||
Total assets | $ 4,121,071 | $ 3,745,735 | |||||||||||
Interest-bearing liabilities | |||||||||||||
Interest-bearing deposits | |||||||||||||
Checking and money market accounts | $ 2,146,687 | $ 1,716 | 0.32 | % | $ 2,221,365 | $ 1,707 | 0.30 | % | |||||
Savings accounts and certificates of deposit | 580,361 | 900 | 0.62 | % | 307,807 | 192 | 0.25 | % | |||||
Interest-bearing deposits | 2,727,048 | 2,616 | 0.38 | % | 2,529,172 | 1,899 | 0.30 | % | |||||
Short-term borrowings | 282 | — | — | % | 321 | — | — | % | |||||
Advances from PPPLF | 342,335 | 307 | 0.36 | % | 416,748 | 371 | 0.36 | % | |||||
Total interest-bearing liabilities | 3,069,665 | 2,923 | 0.38 | % | 2,946,241 | 2,270 | 0.31 | % | |||||
Non-interest bearing deposits | 283,066 | 114,065 | |||||||||||
Other liabilities | 179,752 | 155,806 | |||||||||||
Total liabilities | $ 3,532,483 | $ 3,216,112 | |||||||||||
Total equity | $ 588,588 | $ 529,623 | |||||||||||
Total liabilities and equity | $ 4,121,071 | $ 3,745,735 | |||||||||||
Interest rate spread | 8.17 | % | 7.01 | % | |||||||||
Net interest income and net interest margin | $ 80,387 | 8.25 | % | $ 62,336 | 7.06 | % | |||||||
(1) Nonaccrual loans and any related income are included in their respective loan categories. |
LENDINGCLUB CORPORATION | ||||||||||||||||||||
NET INTEREST INCOME (Continued) | ||||||||||||||||||||
(In thousands, except percentages or as noted) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended December 31, 2021 | ||||||||||||||||||||
LendingClub Bank | LendingClub Corporation (Parent only) | Consolidated LendingClub Corporation | ||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||||||||||||
Interest-earning assets (1) | ||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ 651,003 | $ 467 | 0.29 | % | $ 59,469 | $ 2 | 0.01 | % | $ 710,472 | $ 469 | 0.26 | % | ||||||||
Securities available for sale at fair value | 200,091 | 680 | 1.36 | % | 65,049 | 2,391 | 14.70 | % | 265,140 | 3,071 | 4.63 | % | ||||||||
Loans held for sale at fair value | 122,007 | 5,199 | 17.04 | % | 62,701 | 1,954 | 12.47 | % | 184,708 | 7,153 | 15.49 | % | ||||||||
Loans and leases held for investment: | ||||||||||||||||||||
Unsecured personal loans | 1,542,285 | 60,384 | 15.66 | % | — | — | — | % | 1,542,285 | 60,384 | 15.66 | % | ||||||||
Secured consumer loans | 436,260 | 4,029 | 3.69 | % | — | — | — | % | 436,260 | 4,029 | 3.69 | % | ||||||||
Commercial loans and leases | 619,648 | 8,663 | 5.59 | % | — | — | — | % | 619,648 | 8,663 | 5.59 | % | ||||||||
PPP loans | 325,133 | 3,888 | 4.78 | % | — | — | — | % | 325,133 | 3,888 | 4.78 | % | ||||||||
Loans and leases held for investment | 2,923,326 | 76,964 | 10.53 | % | — | — | — | % | 2,923,326 | 76,964 | 10.53 | % | ||||||||
Retail and certificate loans held for investment at fair value | — | — | — | % | 262,548 | 9,236 | 14.07 | % | 262,548 | 9,236 | 14.07 | % | ||||||||
Other loans held for investment at fair value | — | — | — | % | 24,184 | 762 | 12.60 | % | 24,184 | 762 | 12.60 | % | ||||||||
Total interest-earning assets | 3,896,427 | 83,310 | 8.55 | % | 473,951 | 14,345 | 12.11 | % | 4,370,378 | 97,655 | 8.94 | % | ||||||||
Cash and due from banks and restricted cash | 23,362 | 121,270 | 73,258 | |||||||||||||||||
Allowance for loan and lease losses | (125,120) | — | (125,120) | |||||||||||||||||
Other non-interest earning assets | 326,402 | 763,808 | 465,010 | |||||||||||||||||
Total assets | $ 4,121,071 | $ 1,359,029 | $ 4,783,526 | |||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Checking and money market accounts | $ 2,146,687 | $ 1,716 | 0.32 | % | $ — | $ — | — | % | $ 2,146,687 | $ 1,716 | 0.32 | % | ||||||||
Savings accounts and certificates of deposit | 580,361 | 900 | 0.62 | % | — | — | — | % | 580,361 | 900 | 0.62 | % | ||||||||
Interest-bearing deposits | 2,727,048 | 2,616 | 0.38 | % | — | — | — | % | 2,727,048 | 2,616 | 0.38 | % | ||||||||
Short-term borrowings | 282 | — | — | % | 36,541 | 561 | 6.13 | % | 36,823 | 561 | 6.08 | % | ||||||||
Advances from PPPLF | 342,335 | 307 | 0.36 | % | — | — | — | % | 342,335 | 307 | 0.36 | % | ||||||||
Retail notes, certificates and secured borrowings | — | — | — | % | 262,548 | 9,236 | 14.07 | % | 262,548 | 9,236 | 14.07 | % | ||||||||
Structured Program borrowings | — | — | — | % | 77,354 | 1,642 | 8.49 | % | 77,354 | 1,642 | 8.49 | % | ||||||||
Other long-term debt | — | — | — | % | 15,514 | 161 | 4.15 | % | 15,514 | 161 | 4.15 | % | ||||||||
Total interest-bearing liabilities | 3,069,665 | 2,923 | 0.38 | % | 391,957 | 11,600 | 11.84 | % | 3,461,622 | 14,523 | 1.68 | % | ||||||||
Non-interest bearing deposits | 283,066 | — | 211,692 | |||||||||||||||||
Other liabilities | 179,752 | 162,938 | 282,339 | |||||||||||||||||
Total liabilities | $ 3,532,483 | $ 554,895 | $ 3,955,653 | |||||||||||||||||
Total equity | $ 588,588 | $ 804,134 | $ 827,873 | |||||||||||||||||
Total liabilities and equity | $ 4,121,071 | $ 1,359,029 | $ 4,783,526 | |||||||||||||||||
Interest rate spread | 8.17 | % | 0.27 | % | 7.26 | % | ||||||||||||||
Net interest income and net interest margin | $ 80,387 | 8.25 | % | $ 2,745 | 2.32 | % | $ 83,132 | 7.61 | % | |||||||||||
(1) | Consolidated presentation reflects intercompany eliminations. |
(2) | Nonaccrual loans and any related income are included in their respective loan categories. |
LENDINGCLUB CORPORATION | |||||||||||||||||||||
NET INTEREST INCOME (Continued) | |||||||||||||||||||||
(In thousands, except percentages or as noted) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended September 30, 2021 | |||||||||||||||||||||
LendingClub Bank | LendingClub Corporation (Parent only) | Consolidated LendingClub Corporation | |||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||
Interest-earning assets (1) | |||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ 695,294 | $ 352 | 0.20 | % | $ 83,405 | $ 3 | 0.01 | % | $ 778,667 | $ 355 | 0.18 | % | |||||||||
Securities available for sale at fair value | 182,882 | 632 | 1.38 | % | 83,804 | 2,548 | 12.16 | % | 266,686 | 3,180 | 4.77 | % | |||||||||
Loans held for sale at fair value | 145,262 | 5,978 | 16.46 | % | 81,160 | 2,558 | 12.60 | % | 226,422 | 8,536 | 15.08 | % | |||||||||
Loans and leases held for investment: | |||||||||||||||||||||
Unsecured personal loans | 991,297 | 39,532 | 15.95 | % | — | — | — | % | 991,297 | 39,532 | 15.95 | % | |||||||||
Secured consumer loans | 464,194 | 4,688 | 4.04 | % | — | — | — | % | 464,194 | 4,688 | 4.04 | % | |||||||||
Commercial loans and leases | 616,823 | 7,887 | 5.11 | % | — | — | — | % | 616,823 | 7,887 | 5.11 | % | |||||||||
PPP loans | 436,785 | 5,537 | 5.07 | % | — | — | — | % | 436,785 | 5,537 | 5.07 | % | |||||||||
Loans and leases held for investment | 2,509,099 | 57,644 | 9.19 | % | — | — | — | % | 2,509,099 | 57,644 | 9.19 | % | |||||||||
Retail and certificate loans held for investment at fair value | — | — | — | % | 344,205 | 12,172 | 14.15 | % | 344,205 | 12,172 | 14.15 | % | |||||||||
Other loans held for investment at fair value | — | — | — | % | 30,981 | 973 | 12.58 | % | 30,981 | 973 | 12.58 | % | |||||||||
Total interest-earning assets | 3,532,537 | 64,606 | 7.32 | % | 623,555 | 18,254 | 11.71 | % | 4,156,060 | 82,860 | 7.97 | % | |||||||||
Cash and due from banks and restricted cash | 29,290 | 99,985 | 96,733 | ||||||||||||||||||
Allowance for loan and lease losses | (86,686) | — | (86,686) | ||||||||||||||||||
Other non-interest earning assets | 270,594 | 760,131 | 449,964 | ||||||||||||||||||
Total assets | $ 3,745,735 | $ 1,483,671 | $ 4,616,071 | ||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Checking and money market accounts | $ 2,221,365 | $ 1,707 | 0.30 | % | $ — | $ — | — | % | $ 2,221,365 | $ 1,707 | 0.30 | % | |||||||||
Savings accounts and certificates of deposit | 307,807 | 192 | 0.25 | % | — | — | — | % | 307,807 | 192 | 0.25 | % | |||||||||
Interest-bearing deposits | 2,529,172 | 1,899 | 0.30 | % | — | — | — | % | 2,529,172 | 1,899 | 0.30 | % | |||||||||
Short-term borrowings | 321 | — | — | % | 56,903 | 849 | 5.97 | % | 57,224 | 849 | 5.93 | % | |||||||||
Advances from PPPLF | 416,748 | 371 | 0.36 | % | — | — | — | % | 416,748 | 371 | 0.36 | % | |||||||||
Retail notes, certificates and secured borrowings | — | — | — | % | 344,087 | 12,173 | 14.15 | % | 344,087 | 12,173 | 14.15 | % | |||||||||
Structured Program borrowings | — | — | — | % | 100,178 | 2,119 | 8.46 | % | 100,178 | 2,119 | 8.46 | % | |||||||||
Other long-term debt | — | — | — | % | 15,606 | 161 | 4.13 | % | 15,606 | 161 | 4.13 | % | |||||||||
Total interest-bearing liabilities | 2,946,241 | 2,270 | 0.31 | % | 516,774 | 15,302 | 11.84 | % | 3,463,015 | 17,572 | 2.03 | % | |||||||||
Non-interest bearing deposits | 114,065 | — | 81,491 | ||||||||||||||||||
Other liabilities | 155,806 | 183,962 | 285,292 | ||||||||||||||||||
Total liabilities | $ 3,216,112 | $ 700,736 | $ 3,829,798 | ||||||||||||||||||
Total equity | $ 529,623 | $ 782,935 | $ 786,273 | ||||||||||||||||||
Total liabilities and equity | $ 3,745,735 | $ 1,483,671 | $ 4,616,071 | ||||||||||||||||||
Interest rate spread | 7.01 | % | (0.13) | % | 5.95 | % | |||||||||||||||
Net interest income and net interest margin | $ 62,336 | 7.06 | % | $ 2,952 | 1.89 | % | $ 65,288 | 6.28 | % | ||||||||||||
(1) | Consolidated presentation reflects intercompany eliminations. |
(2) | Nonaccrual loans and any related income are included in their respective loan categories. |
LENDINGCLUB CORPORATION | |||||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
(In Thousands, Except Share and Per Share Amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ 35,670 | $ 5,197 | |||||||||||||||
Interest-bearing deposits in banks | 651,456 | 519,766 | |||||||||||||||
Total cash and cash equivalents | 687,126 | 524,963 | |||||||||||||||
Restricted cash | 76,460 | 103,522 | |||||||||||||||
Securities available for sale at fair value (includes $256,170 and $159,164 at amortized cost, respectively) | 263,530 | 142,226 | |||||||||||||||
Loans held for sale (includes $142,370 and $121,902 at fair value, respectively) | 391,248 | 121,902 | |||||||||||||||
Loans and leases held for investment | 2,899,126 | — | |||||||||||||||
Allowance for loan and lease losses | (144,389) | — | |||||||||||||||
Loans and leases held for investment, net | 2,754,737 | — | |||||||||||||||
Retail and certificate loans held for investment at fair value | 229,719 | 636,686 | |||||||||||||||
Other loans held for investment at fair value | 21,240 | 49,954 | |||||||||||||||
Property, equipment and software, net | 97,996 | 96,641 | |||||||||||||||
Goodwill | 75,717 | — | |||||||||||||||
Other assets | 302,546 | 187,399 | |||||||||||||||
Total assets | $ 4,900,319 | $ 1,863,293 | |||||||||||||||
Liabilities and Equity | |||||||||||||||||
Deposits: | |||||||||||||||||
Interest-bearing | $ 2,919,203 | $ — | |||||||||||||||
Noninterest-bearing | 216,585 | — | |||||||||||||||
Total deposits | 3,135,788 | — | |||||||||||||||
Short-term borrowings | 27,780 | 104,989 | |||||||||||||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 271,933 | — | |||||||||||||||
Retail notes, certificates and secured borrowings at fair value | 229,719 | 636,774 | |||||||||||||||
Payable on Structured Program borrowings | 65,451 | 152,808 | |||||||||||||||
Other long-term debt | 15,455 | — | |||||||||||||||
Other liabilities | 303,951 | 244,551 | |||||||||||||||
Total liabilities | 4,050,077 | 1,139,122 | |||||||||||||||
Equity | |||||||||||||||||
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 and 43,000 shares issued and outstanding, respectively | — | — | |||||||||||||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 101,043,924 and 88,149,510 shares issued and outstanding, respectively | 1,010 | 881 | |||||||||||||||
Additional paid-in capital | 1,609,820 | 1,508,020 | |||||||||||||||
Accumulated deficit | (767,634) | (786,214) | |||||||||||||||
Accumulated other comprehensive income | 7,046 | 1,484 | |||||||||||||||
Total equity | 850,242 | 724,171 | |||||||||||||||
Total liabilities and equity | $ 4,900,319 | $ 1,863,293 | |||||||||||||||
LENDINGCLUB CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT | |||||||||||||||
(In Thousands, Except Share and Per Share Amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
LendingClub Bank | LendingClub Corporation (Parent only) | Intercompany Eliminations | Total | ||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||
Assets | |||||||||||||||
Total cash and cash equivalents | $ 659,919 | $ — | $ 88,268 | $ 524,963 | $ (61,061) | $ — | $ 687,126 | $ 524,963 | |||||||
Restricted cash | — | — | 76,540 | 103,522 | (80) | — | 76,460 | 103,522 | |||||||
Securities available for sale at fair value | 205,730 | — | 57,800 | 142,226 | — | — | 263,530 | 142,226 | |||||||
Loans held for sale | 335,449 | — | 55,799 | 121,902 | — | — | 391,248 | 121,902 | |||||||
Loans and leases held for investment, net | 2,754,737 | — | — | — | — | — | 2,754,737 | — | |||||||
Retail and certificate loans held for investment at fair value | — | — | 229,719 | 636,686 | — | — | 229,719 | 636,686 | |||||||
Other loans held for investment at fair value | — | — | 21,240 | 49,954 | — | — | 21,240 | 49,954 | |||||||
Property, equipment and software, net | 36,424 | — | 61,572 | 96,641 | — | — | 97,996 | 96,641 | |||||||
Investment in subsidiary | — | — | 557,577 | — | (557,577) | — | — | — | |||||||
Goodwill | 75,717 | — | — | — | — | — | 75,717 | — | |||||||
Other assets | 254,075 | — | 168,042 | 187,399 | (119,571) | — | 302,546 | 187,399 | |||||||
Total assets | 4,322,051 | — | 1,316,557 | 1,863,293 | (738,289) | — | 4,900,319 | 1,863,293 | |||||||
Liabilities and Equity | |||||||||||||||
Total deposits | 3,196,929 | — | — | — | (61,141) | — | 3,135,788 | — | |||||||
Short-term borrowings | 165 | — | 27,615 | 104,989 | — | — | 27,780 | 104,989 | |||||||
Advances from PPPLF | 271,933 | — | — | — | — | — | 271,933 | — | |||||||
Retail notes, certificates and secured borrowings at fair value | — | — | 229,719 | 636,774 | — | — | 229,719 | 636,774 | |||||||
Payable on Structured Program borrowings | — | — | 65,451 | 152,808 | — | — | 65,451 | 152,808 | |||||||
Other long-term debt | — | — | 15,455 | — | — | — | 15,455 | — | |||||||
Other liabilities | 218,775 | — | 150,727 | 244,551 | (65,551) | — | 303,951 | 244,551 | |||||||
Total liabilities | 3,687,802 | — | 488,967 | 1,139,122 | (126,692) | — | 4,050,077 | 1,139,122 | |||||||
Total equity | 634,249 | — | 827,590 | 724,171 | (611,597) | — | 850,242 | 724,171 | |||||||
Total liabilities and equity | $ 4,322,051 | $ — | $ 1,316,557 | $ 1,863,293 | $ (738,289) | $ — | $ 4,900,319 | $ 1,863,293 | |||||||
SOURCE LendingClub Corporation
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