Delivers Record Full Year Revenue and Earnings
Growth Despite Challenging Environment
SAN
FRANCISCO, Jan. 25, 2023 /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, 2022.
"Our fourth quarter results clearly demonstrated the benefits of
our evolution into a marketplace bank. We significantly grew
recurring revenue to offset the expected reduction in marketplace
volumes," said Scott Sanborn,
LendingClub CEO. "Looking ahead, in anticipation of a more
challenging environment, we have streamlined our operations and
will maintain our underwriting discipline. We also intend to remain
profitable, while investing in-period earnings into loan retention
to support future earnings. These actions will allow us to
capitalize on growth opportunities as economic pressures
abate."
Full Year 2022 Results Reflect Ongoing Transformation and
Positioning for Long-Term Sustained Success
- Total assets increased 63% year over year to $8.0 billion, primarily reflecting growth in
loans held for investment, including the acquisition of a
$1.05 billion outstanding principal
loan portfolio in the fourth quarter of 2022.
- Deposits of $6.4 billion more
than doubled, primarily due to growth in online savings
deposits.
- Total net revenue of $1.2 billion
up 45% year over year
-
- Net interest income, a recurring stream of earnings, increased
over 100% to $474.8 million.
- Marketplace revenue grew 18% year over year to $683.6 million.
- Pre-tax income of $153.0 million
compared to $18.4 million in the
prior year, reflecting solid revenue growth combined with improved
operating efficiency.
- Implemented significant cost reduction plan to more closely
align the company's expense base with anticipated loan volume in
2023.
Fourth Quarter 2022 Results
- Total net revenue of $262.7
million was comparable to the prior-year period, as strong
growth in net interest income offset lower marketplace
revenue.
-
- Net interest income increased 63% year over year to
$135.2 million.
-
- Total loans and leases held for investment grew 104%, primarily
reflecting growth in personal loan originations held for investment
and the acquisition of a $1.05
billion loan portfolio in the fourth quarter of 2022.
- Net interest margin expanded to 7.8% from 7.6% in the
prior-year period, primarily reflecting a greater mix of personal
loans which generate a higher yield than the other loans held for
investment.
- Marketplace revenue was $123.4
million compared to $170.6
million year over year, reflecting a reduction in volumes
consistent with the change in total origination volume due to the
pace of Federal Reserve interest rate increases and tighter
underwriting standards implemented by the company.
- Loan originations were $2.5
billion, compared to $3.1
billion in the prior-year period.
- Credit quality of the held-for-investment prime loan portfolio
remained strong, with delinquency rates continuing to normalize as
the portfolio seasons.
- Provision for credit losses of $61.5
million primarily reflects $700.8
million of quarterly loan originations held for investment
and ongoing recognition of provision expense for discounted
lifetime losses at origination.
- Efficiency ratio improved to 69% from 72% in the prior-year
period due to better marketing efficiency.
- Pre-provision net revenue of $82.7
million grew 12% year over year, driven by improved
operating efficiency.
- Net income of $23.6 million
compared to $29.1 million year over
year, reflecting higher credit provisioning due to growth in the
held-for-investment portfolio, partially offset by favorable
marketing efficiency.
- Total equity of $1.2 billion grew
$314.1 million from December 31, 2021, primarily reflecting net
income generated over the period and the release of the deferred
tax asset valuation allowance.
- Book value per common share of $10.93 increased 30% from December 31, 2021. Tangible book value per common
share of $10.06 increased 35% from
December 31, 2021. The increases in
book value and tangible book value per share were consistent with
the growth in total equity.
- Substantial capital with a consolidated Tier 1 leverage ratio
of 14.1% and consolidated Common Equity Tier 1 capital ratio of
15.8%.
|
Three Months
Ended
|
|
Year
Ended
|
|
|
($ in millions, except
per share amounts)
|
December 31,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
|
|
Total net
revenue
|
$
262.7
|
|
$
304.9
|
|
$
262.2
|
|
$
1,187.2
|
|
$
818.6
|
|
|
Non-interest
expense
|
180.0
|
|
186.2
|
|
188.2
|
|
766.9
|
|
661.4
|
|
|
Pre-provision net
revenue (1)
|
82.7
|
|
118.7
|
|
74.0
|
|
420.3
|
|
157.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
61.5
|
|
82.7
|
|
45.1
|
|
267.3
|
|
138.8
|
|
|
Income before income
tax benefit
|
21.2
|
|
36.0
|
|
28.9
|
|
153.0
|
|
18.4
|
|
|
Income tax
benefit
|
2.4
|
|
7.2
|
|
0.2
|
|
136.6
|
|
0.1
|
|
|
Net income
|
$
23.6
|
|
$
43.2
|
|
$
29.1
|
|
$
289.7
|
|
$
18.6
|
|
|
Diluted EPS
|
$
0.22
|
|
$
0.41
|
|
$
0.27
|
|
$
2.79
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit from
release of tax valuation allowance
|
$
3.2
|
|
$
5.0
|
|
$
—
|
|
$
143.5
|
|
$
—
|
|
|
Net income excluding
income tax benefit (1,2)
|
$
20.4
|
|
$
38.2
|
|
$
29.1
|
|
$
146.2
|
|
$
18.6
|
|
|
Diluted EPS excluding
income tax benefit (1,2)
|
$
0.19
|
|
$
0.36
|
|
$
0.27
|
|
$
1.41
|
|
$
0.18
|
|
|
|
|
(1)
|
See page 3 of this
release for additional information on our use of non-GAAP financial
measures.
|
|
(2)
|
Fourth and third
quarters of 2022 and the year ended December 31, 2022, include
income tax benefit of $3.2 million, $5.0 million, and
$143.5 million, respectively, due to the release of a deferred
tax asset valuation allowance.
|
For a calculation of Pre-Provision Net Revenue, Net Income
Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax
Benefit, 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
Given the rapid change in the economic environment, the company
is currently providing guidance for the first quarter of 2023 and
expects loan originations and pre-provision net revenue to be in
the ranges below. The outlook for loan originations reflects the
impact of rising rates on marketplace demand combined with
continued prudent underwriting. The company plans to maintain
held-for-investment loan balances in line with the fourth quarter
of 2022. For 2023, the company intends to remain profitable, while
investing in-period earnings into loan retention to support future
earnings.
|
|
First Quarter
2023
|
|
Loan
Originations
|
|
$1.9B to
$2.2B
|
|
Pre-Provision Net
Revenue
|
|
$55M to $70M
|
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
$80 billion in loans, our advanced credit decisioning and
machine-learning models are used across the customer lifecycle to
expand seamless access to credit for our members, while generating
compelling risk-adjusted returns for our loan investors. Since
2007, more than 4.5 million members have joined the Club to
help reach their financial goals. For more information about
LendingClub, visit https://www.lendingclub.com.
Conference Call and Webcast Information
The LendingClub fourth quarter 2022 webcast and teleconference
is scheduled to begin at 2:00 p.m. Pacific Time (or
5:00 p.m. Eastern Time) on Wednesday, January 25, 2023. 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 786729, 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 1, 2023,
by calling +1 (866) 813-9403 or outside the U.S.
+44 (204) 525-0658, with Access Code 636433.
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
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, Net Income Excluding
Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, 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, Net Income Excluding
Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are
important measures because they reflect 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. Net
Income Excluding Income Tax Benefit adjusts for the release of a
deferred tax asset valuation allowance in the fourth, third and
second quarters of 2022. Diluted EPS Excluding Income Tax Benefit
is a non-GAAP financial measure calculated by dividing Net Income
Excluding Income Tax Benefit by the weighted-average diluted common
shares outstanding.
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 beginning on page 14 of this
release.
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; our
ability to realize the expected benefits from recent initiatives,
including our cost reduction plan and the acquisition of a
$1 billion loan portfolio;
competition; overall economic conditions; the interest rate
environment; 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 and Quarterly Report on Form 10-Q, each as
filed with the Securities and Exchange Commission, as well as in
our subsequent filings with the Securities and Exchange Commission.
We may not actually achieve the plans, intentions or expectations
disclosed in forward-looking statements, and you should not place
undue reliance on forward-looking statements. Actual results or
events could differ materially from the plans, intentions and
expectations disclosed in forward-looking statements. We do not
assume any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
|
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except
percentages or as noted)
(Unaudited)
|
|
|
As of and for the
three months ended
|
|
%
Change
|
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June
30,
2022
|
|
March
31,
2022
|
|
December 31,
2021
|
|
Q/Q
|
|
Y/Y
|
|
|
Operating
Highlights:
|
|
|
Non-interest
income
|
$
127,465
|
|
$
181,237
|
|
$
213,832
|
|
$
189,857
|
|
$
179,111
|
|
(30) %
|
|
(29) %
|
|
|
Net interest
income
|
135,243
|
|
123,676
|
|
116,226
|
|
99,680
|
|
83,132
|
|
9 %
|
|
63 %
|
|
|
Total net
revenue
|
262,708
|
|
304,913
|
|
330,058
|
|
289,537
|
|
262,243
|
|
(14) %
|
|
— %
|
|
|
Non-interest
expense
|
180,044
|
|
186,219
|
|
209,386
|
|
191,204
|
|
188,220
|
|
(3) %
|
|
(4) %
|
|
|
Pre-provision net
revenue(1)
|
82,664
|
|
118,694
|
|
120,672
|
|
98,333
|
|
74,023
|
|
(30) %
|
|
12 %
|
|
|
Provision for credit
losses
|
61,512
|
|
82,739
|
|
70,566
|
|
52,509
|
|
45,149
|
|
(26) %
|
|
36 %
|
|
|
Income before income
tax benefit (expense)
|
21,152
|
|
35,955
|
|
50,106
|
|
45,824
|
|
28,874
|
|
(41) %
|
|
(27) %
|
|
|
Income tax benefit
(expense)
|
2,439
|
|
7,243
|
|
131,954
|
|
(4,988)
|
|
234
|
|
N/M
|
|
NM
|
|
|
Net income
|
23,591
|
|
43,198
|
|
182,060
|
|
40,836
|
|
29,108
|
|
N/M
|
|
N/M
|
|
|
Income tax benefit from
release of tax valuation allowance
|
3,180
|
|
5,015
|
|
135,300
|
|
—
|
|
—
|
|
N/M
|
|
N/M
|
|
|
Net income excluding
income tax benefit(1)(2)
|
$
20,411
|
|
$
38,183
|
|
$
46,760
|
|
$
40,836
|
|
$
29,108
|
|
(47) %
|
|
(30) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS – common
stockholders
|
$
0.22
|
|
$
0.41
|
|
$
1.77
|
|
$
0.40
|
|
$
0.29
|
|
(46) %
|
|
(24) %
|
|
|
Diluted EPS – common
stockholders
|
$
0.22
|
|
$
0.41
|
|
$
1.73
|
|
$
0.39
|
|
$
0.27
|
|
(46) %
|
|
(19) %
|
|
|
Diluted EPS excluding
income tax benefit(1)(2)
|
$
0.19
|
|
$
0.36
|
|
$
0.45
|
|
$
0.39
|
|
$
0.27
|
|
(47) %
|
|
(30) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LendingClub
Corporation Performance Metrics:
|
|
|
Net interest
margin
|
7.8 %
|
|
8.3 %
|
|
8.5 %
|
|
8.3 %
|
|
7.6 %
|
|
|
|
|
|
|
Efficiency
ratio(3)
|
68.5 %
|
|
61.1 %
|
|
63.4 %
|
|
66.0 %
|
|
71.8 %
|
|
|
|
|
|
|
Return on average
equity (ROE)
|
7.2 %
|
|
14.2 %
|
|
33.8 %
|
|
18.7 %
|
|
14.1 %
|
|
|
|
|
|
|
Return on average total
assets (ROA)
|
1.1 %
|
|
2.5 %
|
|
5.5 %
|
|
3.1 %
|
|
2.4 %
|
|
|
|
|
|
|
Marketing expense as a
% of loan originations
|
1.4 %
|
|
1.3 %
|
|
1.6 %
|
|
1.7 %
|
|
1.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LendingClub
Corporation Capital Metrics:
|
|
|
Common Equity Tier 1
Capital Ratio
|
15.8 %
|
|
18.3 %
|
|
20.0 %
|
|
20.6 %
|
|
21.3 %
|
|
|
|
|
|
|
Tier 1 Leverage
Ratio
|
14.1 %
|
|
15.7 %
|
|
16.2 %
|
|
15.6 %
|
|
16.5 %
|
|
|
|
|
|
|
Book Value per Common
Share
|
$
10.93
|
|
$
10.67
|
|
$
10.41
|
|
$
8.68
|
|
$
8.41
|
|
2 %
|
|
30 %
|
|
|
Tangible Book Value per
Common Share(1)
|
$
10.06
|
|
$
9.78
|
|
$
9.50
|
|
$
7.75
|
|
$
7.46
|
|
3 %
|
|
35 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Originations
(in millions)(4):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan
originations
|
$
2,524
|
|
$
3,539
|
|
$
3,840
|
|
$
3,217
|
|
$
3,069
|
|
(29) %
|
|
(18) %
|
|
|
Marketplace
loans
|
$
1,824
|
|
$
2,386
|
|
$
2,819
|
|
$
2,360
|
|
$
2,308
|
|
(24) %
|
|
(21) %
|
|
|
Loan originations held
for investment
|
$
701
|
|
$
1,153
|
|
$
1,021
|
|
$
856
|
|
$
761
|
|
(39) %
|
|
(8) %
|
|
|
Loan originations held
for investment as a % of total loan originations
|
28 %
|
|
33 %
|
|
27 %
|
|
27 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing Portfolio
AUM (in millions)(5):
|
|
|
Total servicing
portfolio
|
$
16,157
|
|
$
15,929
|
|
$ 14,783
|
|
$ 13,341
|
|
$
12,463
|
|
1 %
|
|
30 %
|
|
|
Loans serviced for
others
|
$
10,819
|
|
$
11,807
|
|
$ 11,382
|
|
$ 10,475
|
|
$
10,124
|
|
(8) %
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Data:
|
|
|
Loans and leases held
for investment at amortized cost, net, excluding PPP
loans
|
$
4,638,331
|
|
$
4,414,347
|
|
$
3,692,667
|
|
$
3,049,325
|
|
$
2,486,440
|
|
5 %
|
|
87 %
|
|
|
PPP loans
|
$
66,971
|
|
$
89,379
|
|
$
118,794
|
|
$
184,986
|
|
$ 268,297
|
|
(25) %
|
|
(75) %
|
|
|
Total loans and leases
held for investment at amortized cost, net(6)
|
$
4,705,302
|
|
$
4,503,726
|
|
$
3,811,461
|
|
$
3,234,311
|
|
$
2,754,737
|
|
4 %
|
|
71 %
|
|
|
Loans held for
investment at fair value
|
$ 925,938
|
|
$
15,057
|
|
$ 20,583
|
|
$ 15,384
|
|
$
21
|
|
N/M
|
|
N/M
|
|
|
Total loans and leases
held for investment
|
$
5,631,240
|
|
$
4,518,783
|
|
$
3,832,044
|
|
$
3,249,695
|
|
$
2,754,758
|
|
25 %
|
|
104 %
|
|
|
Total assets
|
$
7,979,747
|
|
$
6,775,074
|
|
$
6,186,765
|
|
$
5,574,425
|
|
$
4,900,319
|
|
18 %
|
|
63 %
|
|
|
Total
deposits
|
$
6,392,553
|
|
$
5,123,506
|
|
$
4,527,672
|
|
$
3,977,477
|
|
$
3,135,788
|
|
25 %
|
|
104 %
|
|
|
Total
liabilities
|
$
6,815,453
|
|
$
5,653,664
|
|
$
5,107,648
|
|
$
4,686,991
|
|
$
4,050,077
|
|
21 %
|
|
68 %
|
|
|
Total equity
|
$
1,164,294
|
|
$
1,121,410
|
|
$
1,079,117
|
|
$
887,434
|
|
$ 850,242
|
|
4 %
|
|
37 %
|
|
|
|
N/M – Not
meaningful
|
|
(1)
|
Represents a non-GAAP
financial measure. See "Reconciliation of GAAP to Non-GAAP
Financial Measures."
|
|
(2)
|
Excludes fourth, third
and second quarter 2022 income tax benefit of $3.2 million,
$5.0 million and $135.3 million, respectively, due to the
release of a deferred tax asset valuation allowance.
|
|
(3)
|
Calculated as the ratio
of non-interest expense to total net revenue.
|
|
(4)
|
Includes unsecured
personal loans, auto loans, and education and patient finance loans
only.
|
|
(5)
|
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.
|
|
(6)
|
Excludes loans held for
investment at fair value, which primarily consists of a loan
portfolio that was acquired in the fourth quarter of
2022.
|
The asset quality metrics presented in the following table are
for loans and leases held for investment at amortized cost and do
not reflect loans held for investment at fair value:
|
As of and for the
three months ended
|
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June
30,
2022
|
|
March
31,
2022
|
|
December 31,
2021
|
|
|
Asset Quality
Metrics:
|
|
|
Allowance for loan and
lease losses to total loans and leases held for
investment
|
6.5 %
|
|
6.3 %
|
|
6.0 %
|
|
5.5 %
|
|
5.0 %
|
|
|
Allowance for loan and
lease losses to total loans and leases held for investment,
excluding PPP loans
|
6.6 %
|
|
6.4 %
|
|
6.2 %
|
|
5.8 %
|
|
5.5 %
|
|
|
Allowance for loan and
lease losses to consumer loans and leases held for
investment
|
7.3 %
|
|
7.2 %
|
|
6.9 %
|
|
6.6 %
|
|
6.4 %
|
|
|
Allowance for loan and
lease losses to commercial loans and leases held for
investment
|
2.0 %
|
|
1.9 %
|
|
2.0 %
|
|
1.8 %
|
|
1.8 %
|
|
|
Allowance for loan and
lease losses to commercial loans and leases held for investment,
excluding PPP loans
|
2.2 %
|
|
2.2 %
|
|
2.3 %
|
|
2.6 %
|
|
2.6 %
|
|
|
Net
charge-offs
|
$
37,148
|
|
$
22,658
|
|
$
13,987
|
|
$
8,673
|
|
$
5,636
|
|
|
Net charge-off
ratio(1)
|
3.0 %
|
|
2.1 %
|
|
1.6 %
|
|
1.2 %
|
|
0.9 %
|
|
|
|
|
(1)
|
Net charge-off ratio is
calculated as annualized net charge-offs divided by average
outstanding loans and leases held for investment during the period,
excluding PPP loans.
|
|
LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR
INVESTMENT
(In
thousands)
(Unaudited)
|
|
|
The following table
presents loans and leases held for investment at amortized cost and
loans held for investment at fair value:
|
|
|
|
|
December
31,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
|
|
Unsecured
personal
|
$
3,866,373
|
|
$
3,642,254
|
|
$
1,804,578
|
|
|
Residential
mortgages
|
199,601
|
|
197,776
|
|
151,362
|
|
|
Secured
consumer
|
194,634
|
|
180,768
|
|
65,976
|
|
|
Total consumer loans
held for investment
|
4,260,608
|
|
4,020,798
|
|
2,021,916
|
|
|
Equipment finance
(1)
|
160,319
|
|
167,447
|
|
149,155
|
|
|
Commercial real
estate
|
373,501
|
|
372,406
|
|
310,399
|
|
|
Commercial and
industrial (2)
|
238,726
|
|
246,276
|
|
417,656
|
|
|
Total commercial loans
and leases held for investment
|
772,546
|
|
786,129
|
|
877,210
|
|
|
Total loans and leases
held for investment at amortized cost
|
5,033,154
|
|
4,806,927
|
|
2,899,126
|
|
|
Allowance for loan and
lease losses
|
(327,852)
|
|
(303,201)
|
|
(144,389)
|
|
|
Loans and leases held
for investment at amortized cost, net
|
$
4,705,302
|
|
$
4,503,726
|
|
$
2,754,737
|
|
|
Loans held for
investment at fair value
|
$
925,938
|
|
$
15,057
|
|
$
21
|
|
|
Total loans and leases
held for investment
|
$
5,631,240
|
|
$
4,518,783
|
|
$
2,754,758
|
|
|
(1)
|
Comprised of sales-type
leases for equipment.
|
|
(2)
|
Includes $67.0 million,
$89.4 million, and $268.3 million of Paycheck Protection
Program (PPP) loans as of December 31, 2022,
September 30, 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)
(Unaudited)
|
|
|
The following tables
present the allowance for loan and lease losses on loans and leases
held for investment at amortized cost and do not reflect loans held
for investment at fair value:
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2022
|
|
September 30,
2022
|
|
|
Consumer
|
|
Commercial
|
|
Total
|
|
Consumer
|
|
Commercial
|
|
Total
|
|
|
Allowance for loan and
lease losses, beginning of period
|
$ 288,138
|
|
$
15,063
|
|
$ 303,201
|
|
$ 228,184
|
|
$
15,076
|
|
$ 243,260
|
|
|
Credit loss expense for
loans and leases held for investment
|
61,392
|
|
407
|
|
61,799
|
|
81,935
|
|
664
|
|
82,599
|
|
|
Charge-offs
|
(38,579)
|
|
(225)
|
|
(38,804)
|
|
(22,944)
|
|
(784)
|
|
(23,728)
|
|
|
Recoveries
|
1,538
|
|
118
|
|
1,656
|
|
963
|
|
107
|
|
1,070
|
|
|
Allowance for loan and
lease losses, end of period
|
$ 312,489
|
|
$
15,363
|
|
$ 327,852
|
|
$ 288,138
|
|
$
15,063
|
|
$ 303,201
|
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
|
Consumer
|
|
Commercial
|
|
Total
|
|
|
Allowance for loan and
lease losses, beginning of period
|
$
88,631
|
|
$
16,105
|
|
$ 104,736
|
|
|
Credit loss expense for
loans and leases held for investment
|
45,595
|
|
(306)
|
|
45,289
|
|
|
Charge-offs
|
(5,557)
|
|
(313)
|
|
(5,870)
|
|
|
Recoveries
|
143
|
|
91
|
|
234
|
|
|
Allowance for loan and
lease losses, end of period
|
$ 128,812
|
|
$
15,577
|
|
$ 144,389
|
|
|
LENDINGCLUB CORPORATION
PAST DUE LOANS AND LEASES HELD FOR
INVESTMENT
(In
thousands)
(Unaudited)
|
|
|
The following tables
present past due loans and leases held for investment at amortized
cost and do not reflect loans held for investment at fair
value:
|
|
|
|
|
|
|
December 31,
2022
|
30-59
Days
|
|
60-89
Days
|
|
90 or More
Days
|
|
Total Days
Past Due
|
|
|
Unsecured
personal
|
$
21,016
|
|
$
16,418
|
|
$
16,255
|
|
$
53,689
|
|
|
Residential
mortgages
|
—
|
|
254
|
|
331
|
|
585
|
|
|
Secured
consumer
|
1,720
|
|
382
|
|
188
|
|
2,290
|
|
|
Total consumer loans
held for investment
|
$
22,736
|
|
$
17,054
|
|
$
16,774
|
|
$
56,564
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
finance
|
$
3,172
|
|
$
—
|
|
$
859
|
|
$
4,031
|
|
|
Commercial real
estate
|
—
|
|
102
|
|
—
|
|
102
|
|
|
Commercial and
industrial (1)
|
—
|
|
—
|
|
1,643
|
|
1,643
|
|
|
Total commercial loans
and leases held for investment (1)
|
$
3,172
|
|
$
102
|
|
$
2,502
|
|
$
5,776
|
|
|
Total loans and leases
held for investment at amortized cost (1)
|
$
25,908
|
|
$
17,156
|
|
$
19,276
|
|
$
62,340
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2022
|
30-59
Days
|
|
60-89
Days
|
|
90 or More
Days
|
|
Total Days
Past Due
|
|
|
Unsecured
personal
|
$
14,799
|
|
$
12,463
|
|
$
10,601
|
|
$
37,863
|
|
|
Residential
mortgages
|
—
|
|
—
|
|
337
|
|
337
|
|
|
Secured
consumer
|
985
|
|
504
|
|
162
|
|
1,651
|
|
|
Total consumer loans
held for investment
|
$
15,784
|
|
$
12,967
|
|
$
11,100
|
|
$
39,851
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
finance
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
Commercial real
estate
|
—
|
|
101
|
|
452
|
|
553
|
|
|
Commercial and
industrial (1)
|
—
|
|
—
|
|
1,650
|
|
1,650
|
|
|
Total commercial loans
and leases held for investment (1)
|
$
—
|
|
$
101
|
|
$
2,102
|
|
$
2,203
|
|
|
Total loans and leases
held for investment at amortized cost (1)
|
$
15,784
|
|
$
13,068
|
|
$
13,202
|
|
$
42,054
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2021
|
30-59
Days
|
|
60-89
Days
|
|
90 or More
Days
|
|
Total Days
Past Due
|
|
|
Unsecured
personal
|
$
3,624
|
|
$
2,600
|
|
$
1,676
|
|
$
7,900
|
|
|
Residential
mortgages
|
142
|
|
92
|
|
1,069
|
|
1,303
|
|
|
Secured
consumer
|
171
|
|
53
|
|
3,011
|
|
3,235
|
|
|
Total consumer loans
held for investment
|
$
3,937
|
|
$
2,745
|
|
$
5,756
|
|
$
12,438
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
finance
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
Commercial real
estate
|
104
|
|
—
|
|
609
|
|
713
|
|
|
Commercial and
industrial (1)
|
—
|
|
—
|
|
1,410
|
|
1,410
|
|
|
Total commercial loans
and leases held for investment (1)
|
$
104
|
|
$
—
|
|
$
2,019
|
|
$
2,123
|
|
|
Total loans and leases
held for investment at amortized cost (1)
|
$
4,041
|
|
$
2,745
|
|
$
7,775
|
|
$
14,561
|
|
|
|
|
(1)
|
Past due PPP loans are
excluded from the tables.
|
|
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Change
(%)
|
|
|
December 31,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
|
Q4
2022
vs
Q4
2021
|
|
Q4
2022
vs
Q3
2022
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Origination
fees
|
$
100,692
|
|
$
127,142
|
|
$
118,353
|
|
(15) %
|
|
(21) %
|
|
|
Servicing
fees
|
20,169
|
|
23,760
|
|
20,940
|
|
(4) %
|
|
(15) %
|
|
|
Gain on sales of
loans
|
18,352
|
|
23,554
|
|
20,569
|
|
(11) %
|
|
(22) %
|
|
|
Net fair value
adjustments
|
(15,774)
|
|
(619)
|
|
10,700
|
|
(247) %
|
|
N/M
|
|
|
Marketplace
revenue
|
123,439
|
|
173,837
|
|
170,562
|
|
(28) %
|
|
(29) %
|
|
|
Other non-interest
income
|
4,026
|
|
7,400
|
|
8,549
|
|
(53) %
|
|
(46) %
|
|
|
Total non-interest
income
|
127,465
|
|
181,237
|
|
179,111
|
|
(29) %
|
|
(30) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
173,999
|
|
143,220
|
|
97,655
|
|
78 %
|
|
21 %
|
|
|
Total interest
expense
|
38,756
|
|
19,544
|
|
14,523
|
|
167 %
|
|
98 %
|
|
|
Net interest
income
|
135,243
|
|
123,676
|
|
83,132
|
|
63 %
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
revenue
|
262,708
|
|
304,913
|
|
262,243
|
|
— %
|
|
(14) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
61,512
|
|
82,739
|
|
45,149
|
|
36 %
|
|
(26) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
87,768
|
|
84,916
|
|
78,741
|
|
11 %
|
|
3 %
|
|
|
Marketing
|
35,139
|
|
46,031
|
|
50,708
|
|
(31) %
|
|
(24) %
|
|
|
Equipment and
software
|
13,200
|
|
12,491
|
|
12,019
|
|
10 %
|
|
6 %
|
|
|
Occupancy
|
4,698
|
|
5,051
|
|
4,706
|
|
— %
|
|
(7) %
|
|
|
Depreciation and
amortization
|
11,554
|
|
10,681
|
|
10,462
|
|
10 %
|
|
8 %
|
|
|
Professional
services
|
10,029
|
|
11,943
|
|
12,699
|
|
(21) %
|
|
(16) %
|
|
|
Other non-interest
expense
|
17,656
|
|
15,106
|
|
18,885
|
|
(7) %
|
|
17 %
|
|
|
Total non-interest
expense
|
180,044
|
|
186,219
|
|
188,220
|
|
(4) %
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax benefit
|
21,152
|
|
35,955
|
|
28,874
|
|
(27) %
|
|
(41) %
|
|
|
Income tax
benefit
|
2,439
|
|
7,243
|
|
234
|
|
N/M
|
|
N/M
|
|
|
Net
income
|
$
23,591
|
|
$
43,198
|
|
$
29,108
|
|
(19) %
|
|
(45) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders – Basic
|
$
0.22
|
|
$
0.41
|
|
$
0.29
|
|
(24) %
|
|
(46) %
|
|
|
Net income per share
attributable to common stockholders – Diluted
|
$
0.22
|
|
$
0.41
|
|
$
0.27
|
|
(19) %
|
|
(46) %
|
|
|
Weighted-average common
shares – Basic
|
105,650,177
|
|
104,215,594
|
|
100,320,691
|
|
5 %
|
|
1 %
|
|
|
Weighted-average common
shares – Diluted
|
105,984,612
|
|
105,853,938
|
|
108,096,823
|
|
(2) %
|
|
— %
|
|
|
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
2022
|
|
2021
|
|
Change
(%)
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
Origination
fees
|
$
499,179
|
|
$
416,839
|
|
20 %
|
|
|
Servicing
fees
|
80,609
|
|
87,639
|
|
(8) %
|
|
|
Gain on sales of
loans
|
95,335
|
|
70,116
|
|
36 %
|
|
|
Net fair value
adjustments
|
8,503
|
|
3,986
|
|
113 %
|
|
|
Marketplace
revenue
|
683,626
|
|
578,580
|
|
18 %
|
|
|
Other non-interest
income
|
28,765
|
|
27,219
|
|
6 %
|
|
|
Total non-interest
income
|
712,391
|
|
605,799
|
|
18 %
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
557,340
|
|
292,832
|
|
90 %
|
|
|
Total interest
expense
|
82,515
|
|
80,001
|
|
3 %
|
|
|
Net interest
income
|
474,825
|
|
212,831
|
|
123 %
|
|
|
|
|
|
|
|
|
|
Total net
revenue
|
1,187,216
|
|
818,630
|
|
45 %
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
267,326
|
|
138,800
|
|
93 %
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
339,397
|
|
288,390
|
|
18 %
|
|
|
Marketing
|
197,747
|
|
156,142
|
|
27 %
|
|
|
Equipment and
software
|
49,198
|
|
39,490
|
|
25 %
|
|
|
Occupancy
|
21,977
|
|
24,249
|
|
(9) %
|
|
|
Depreciation and
amortization
|
43,831
|
|
44,285
|
|
(1) %
|
|
|
Professional
services
|
50,516
|
|
47,572
|
|
6 %
|
|
|
Other non-interest
expense
|
64,187
|
|
61,258
|
|
5 %
|
|
|
Total non-interest
expense
|
766,853
|
|
661,386
|
|
16 %
|
|
|
|
|
|
|
|
|
|
Income before income
tax benefit
|
153,037
|
|
18,444
|
|
730 %
|
|
|
Income tax
benefit
|
136,648
|
|
136
|
|
N/M
|
|
|
Net
income
|
$
289,685
|
|
$
18,580
|
|
N/M
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders – Basic
|
$
2.80
|
|
$
0.19
|
|
N/M
|
|
|
Net income per share
attributable to common stockholders – Diluted
|
$
2.79
|
|
$
0.18
|
|
N/M
|
|
|
Weighted-average common
shares – Basic
|
103,547,305
|
|
97,486,754
|
|
6 %
|
|
|
Weighted-average common
shares – Diluted
|
104,001,288
|
|
102,147,353
|
|
2 %
|
|
|
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except
percentages or as noted)
(Unaudited)
|
|
|
|
|
Consolidated
LendingClub Corporation (1)
|
|
|
Three Months
Ended
December 31,
2022
|
|
Three Months
Ended
September 30,
2022
|
|
Three Months
Ended
December 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
|
$ 1,139,887
|
|
$
10,595
|
|
3.72 %
|
|
$
893,655
|
|
$
5,017
|
|
2.25 %
|
|
$
710,472
|
|
$ 469
|
|
0.26 %
|
|
|
Securities available
for sale at fair value
|
349,512
|
|
3,359
|
|
3.84 %
|
|
396,556
|
|
3,820
|
|
3.85 %
|
|
265,140
|
|
3,071
|
|
4.63 %
|
|
|
Loans held for
sale
|
114,851
|
|
5,724
|
|
19.93 %
|
|
126,487
|
|
5,879
|
|
18.59 %
|
|
184,708
|
|
7,153
|
|
15.49 %
|
|
|
Loans and leases held
for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured personal
loans
|
3,825,808
|
|
125,872
|
|
13.16 %
|
|
3,268,649
|
|
110,446
|
|
13.52 %
|
|
1,542,285
|
|
60,384
|
|
15.66 %
|
|
|
Commercial and other
consumer loans
|
1,164,326
|
|
15,197
|
|
5.22 %
|
|
1,135,474
|
|
13,582
|
|
4.78 %
|
|
1,381,041
|
|
16,580
|
|
4.80 %
|
|
|
Loans and leases held
for investment at amortized cost
|
4,990,134
|
|
141,069
|
|
11.31 %
|
|
4,404,123
|
|
124,028
|
|
11.26 %
|
|
2,923,326
|
|
76,964
|
|
10.53 %
|
|
|
Loans held for
investment at fair value (3)
|
308,570
|
|
10,862
|
|
14.08 %
|
|
17,763
|
|
791
|
|
17.83 %
|
|
24,184
|
|
762
|
|
12.60 %
|
|
|
Total loans and leases
held for investment
|
5,298,704
|
|
151,931
|
|
11.47 %
|
|
4,421,886
|
|
124,819
|
|
11.29 %
|
|
2,947,510
|
|
77,726
|
|
10.55 %
|
|
|
Retail and certificate
loans held for investment at fair value
|
66,469
|
|
2,390
|
|
14.38 %
|
|
104,010
|
|
3,685
|
|
14.17 %
|
|
262,548
|
|
9,236
|
|
14.07 %
|
|
|
Total
interest-earning assets
|
6,969,423
|
|
173,999
|
|
9.99 %
|
|
5,942,594
|
|
143,220
|
|
9.64 %
|
|
4,370,378
|
|
97,655
|
|
8.94 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
and restricted cash
|
64,907
|
|
|
|
|
|
58,411
|
|
|
|
|
|
73,258
|
|
|
|
|
|
|
Allowance for loan and
lease losses
|
(314,861)
|
|
|
|
|
|
(254,849)
|
|
|
|
|
|
(125,120)
|
|
|
|
|
|
|
Other non-interest
earning assets
|
613,664
|
|
|
|
|
|
597,169
|
|
|
|
|
|
465,010
|
|
|
|
|
|
|
Total
assets
|
$ 7,333,133
|
|
|
|
|
|
$ 6,343,325
|
|
|
|
|
|
$ 4,783,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking and money
market accounts
|
$ 1,929,260
|
|
$
7,500
|
|
1.54 %
|
|
$ 2,192,904
|
|
$
4,575
|
|
0.83 %
|
|
$ 2,146,687
|
|
$
1,716
|
|
0.32 %
|
|
|
Savings accounts and
certificates of deposit
|
3,576,205
|
|
28,251
|
|
3.13 %
|
|
2,260,170
|
|
10,609
|
|
1.86 %
|
|
580,361
|
|
900
|
|
0.62 %
|
|
|
Interest-bearing
deposits
|
5,505,465
|
|
35,751
|
|
2.58 %
|
|
4,453,074
|
|
15,184
|
|
1.35 %
|
|
2,727,048
|
|
2,616
|
|
0.38 %
|
|
|
Short-term
borrowings
|
3,875
|
|
63
|
|
6.52 %
|
|
6,848
|
|
87
|
|
5.09 %
|
|
36,823
|
|
561
|
|
6.08 %
|
|
|
Advances from
PPPLF
|
77,199
|
|
69
|
|
0.36 %
|
|
104,897
|
|
93
|
|
0.36 %
|
|
342,335
|
|
307
|
|
0.36 %
|
|
|
Retail notes,
certificates and secured borrowings
|
66,469
|
|
2,390
|
|
14.38 %
|
|
104,010
|
|
3,685
|
|
14.17 %
|
|
262,548
|
|
9,236
|
|
14.07 %
|
|
|
Structured Program
borrowings
|
9,956
|
|
159
|
|
6.39 %
|
|
13,859
|
|
225
|
|
6.50 %
|
|
77,354
|
|
1,642
|
|
8.49 %
|
|
|
Other long-term
debt
|
14,804
|
|
324
|
|
8.76 %
|
|
15,300
|
|
270
|
|
7.04 %
|
|
15,514
|
|
161
|
|
4.15 %
|
|
|
Total
interest-bearing liabilities
|
5,677,768
|
|
38,756
|
|
2.71 %
|
|
4,697,988
|
|
19,544
|
|
1.65 %
|
|
3,461,622
|
|
14,523
|
|
1.68 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
251,686
|
|
|
|
|
|
284,134
|
|
|
|
|
|
211,692
|
|
|
|
|
|
|
Other
liabilities
|
266,558
|
|
|
|
|
|
250,086
|
|
|
|
|
|
282,339
|
|
|
|
|
|
|
Total
liabilities
|
$ 6,196,012
|
|
|
|
|
|
$ 5,232,208
|
|
|
|
|
|
$ 3,955,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
$ 1,137,121
|
|
|
|
|
|
$
1,111,117
|
|
|
|
|
|
$
827,873
|
|
|
|
|
|
|
Total liabilities
and equity
|
$ 7,333,133
|
|
|
|
|
|
$ 6,343,325
|
|
|
|
|
|
$ 4,783,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
|
7.28 %
|
|
|
|
|
|
7.99 %
|
|
|
|
|
|
7.26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and net interest margin
|
|
|
$
135,243
|
|
7.76 %
|
|
|
|
$ 123,676
|
|
8.32 %
|
|
|
|
$
83,132
|
|
7.61 %
|
|
|
|
|
(1)
|
Consolidated
presentation reflects intercompany eliminations.
|
|
(2)
|
Nonaccrual loans and
any related income are included in their respective loan
categories.
|
|
(3)
|
Fourth quarter 2022
average balance includes the acquisition of a $1.05 billion
outstanding principal loan portfolio in December 2022.
|
|
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except
Share and Per Share Amounts)
(Unaudited)
|
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
23,125
|
|
$
35,670
|
|
|
Interest-bearing
deposits in banks
|
1,033,905
|
|
651,456
|
|
|
Total cash and cash
equivalents
|
1,057,030
|
|
687,126
|
|
|
Restricted
cash
|
67,454
|
|
76,460
|
|
|
Securities available
for sale at fair value ($399,668 and $256,170 at amortized cost,
respectively)
|
345,702
|
|
263,530
|
|
|
Loans held for sale
(includes $110,400 and $142,370 at fair value,
respectively)
|
110,400
|
|
391,248
|
|
|
Loans and leases held
for investment
|
5,033,154
|
|
2,899,126
|
|
|
Allowance for loan and
lease losses
|
(327,852)
|
|
(144,389)
|
|
|
Loans and leases held
for investment, net
|
4,705,302
|
|
2,754,737
|
|
|
Loans held for
investment at fair value
|
925,938
|
|
21,240
|
|
|
Retail and certificate
loans held for investment at fair value
|
55,425
|
|
229,719
|
|
|
Property, equipment
and software, net
|
136,473
|
|
97,996
|
|
|
Goodwill
|
75,717
|
|
75,717
|
|
|
Other
assets
|
500,306
|
|
302,546
|
|
|
Total
assets
|
$
7,979,747
|
|
$ 4,900,319
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Interest-bearing
|
$
6,158,560
|
|
$ 2,919,203
|
|
|
Noninterest-bearing
|
233,993
|
|
216,585
|
|
|
Total
deposits
|
6,392,553
|
|
3,135,788
|
|
|
Short-term
borrowings
|
2,619
|
|
27,780
|
|
|
Advances from Paycheck
Protection Program Liquidity Facility (PPPLF)
|
64,154
|
|
271,933
|
|
|
Retail notes,
certificates and secured borrowings at fair value
|
55,425
|
|
229,719
|
|
|
Payable on Structured
Program borrowings
|
8,085
|
|
65,451
|
|
|
Other long-term
debt
|
—
|
|
15,455
|
|
|
Other
liabilities
|
292,617
|
|
303,951
|
|
|
Total
liabilities
|
6,815,453
|
|
4,050,077
|
|
|
Equity
|
|
|
|
|
|
Series A Preferred
stock, $0.01 par value; 1,200,000 shares authorized; — shares
issued and outstanding
|
—
|
|
—
|
|
|
Common stock, $0.01
par value; 180,000,000 shares authorized; 106,546,995 and
101,043,924 shares issued and outstanding, respectively
|
1,065
|
|
1,010
|
|
|
Additional paid-in
capital
|
1,628,590
|
|
1,559,616
|
|
|
Accumulated
deficit
|
(427,745)
|
|
(717,430)
|
|
|
Accumulated other
comprehensive income (loss)
|
(37,616)
|
|
7,046
|
|
|
Total
equity
|
1,164,294
|
|
850,242
|
|
|
Total liabilities
and equity
|
$
7,979,747
|
|
$ 4,900,319
|
|
|
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
Pre-Provision Net
Revenue
|
|
|
|
|
|
For the three months
ended
|
|
|
|
|
|
For the year
ended
|
|
|
|
December
31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March
31,
2022
|
|
December 31,
2021
|
|
December
31,
2022
|
|
December
31,
2021
|
|
|
GAAP Net
income
|
$
23,591
|
|
$
43,198
|
|
$ 182,060
|
|
$
40,836
|
|
$
29,108
|
|
$
289,685
|
|
$
18,580
|
|
|
Less: Provision for
credit losses
|
(61,512)
|
|
(82,739)
|
|
(70,566)
|
|
(52,509)
|
|
(45,149)
|
|
(267,326)
|
|
(138,800)
|
|
|
Less: Income tax
benefit (expense)
|
2,439
|
|
7,243
|
|
131,954
|
|
(4,988)
|
|
234
|
|
136,648
|
|
136
|
|
|
Pre-provision net
revenue
|
$
82,664
|
|
$
118,694
|
|
$ 120,672
|
|
$
98,333
|
|
$
74,023
|
|
$
420,363
|
|
$
157,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
|
|
|
For the year
ended
|
|
|
|
December
31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March
31,
2022
|
|
December 31,
2021
|
|
December
31,
2022
|
|
December
31,
2021
|
|
|
Non-interest
income
|
$
127,465
|
|
$
181,237
|
|
$ 213,832
|
|
$ 189,857
|
|
$
179,111
|
|
$
712,391
|
|
$
605,799
|
|
|
Net interest
income
|
135,243
|
|
123,676
|
|
116,226
|
|
99,680
|
|
83,132
|
|
474,825
|
|
212,831
|
|
|
Total net
revenue
|
262,708
|
|
304,913
|
|
330,058
|
|
289,537
|
|
262,243
|
|
1,187,216
|
|
818,630
|
|
|
Non-interest
expense
|
(180,044)
|
|
(186,219)
|
|
(209,386)
|
|
(191,204)
|
|
(188,220)
|
|
(766,853)
|
|
(661,386)
|
|
|
Pre-provision net
revenue
|
82,664
|
|
118,694
|
|
120,672
|
|
98,333
|
|
74,023
|
|
420,363
|
|
157,244
|
|
|
Provision for credit
losses
|
(61,512)
|
|
(82,739)
|
|
(70,566)
|
|
(52,509)
|
|
(45,149)
|
|
(267,326)
|
|
(138,800)
|
|
|
Income before income
tax benefit
|
21,152
|
|
35,955
|
|
50,106
|
|
45,824
|
|
28,874
|
|
153,037
|
|
18,444
|
|
|
Income tax
benefit
|
2,439
|
|
7,243
|
|
131,954
|
|
(4,988)
|
|
234
|
|
136,648
|
|
136
|
|
|
GAAP Net
income
|
$
23,591
|
|
$
43,198
|
|
$ 182,060
|
|
$
40,836
|
|
$
29,108
|
|
$
289,685
|
|
$
18,580
|
|
|
Net Income Excluding
Income Tax Benefit and Diluted EPS Excluding Income Tax
Benefit
|
|
|
|
|
|
For the three months
ended
|
|
For
the
year
ended
|
|
|
|
December
31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
December
31,
2022
|
|
|
GAAP Net
income
|
$
23,591
|
|
$
43,198
|
|
$
182,060
|
|
$
289,685
|
|
|
Less: Income tax
benefit from release of tax valuation allowance
|
3,180
|
|
5,015
|
|
135,300
|
|
143,495
|
|
|
Net income excluding
income tax benefit
|
$
20,411
|
|
$
38,183
|
|
$
46,760
|
|
$
146,190
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted EPS –
common stockholders
|
$
0.22
|
|
$
0.41
|
|
$
1.73
|
|
$
2.79
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Income tax benefit from
release of tax valuation allowance
|
$
3,180
|
|
$
5,015
|
|
$
135,300
|
|
$
143,495
|
|
|
(B)
|
Weighted-average common
shares – Diluted
|
105,984,612
|
|
105,853,938
|
|
105,042,626
|
|
104,001,288
|
|
|
(A/B)
|
Diluted EPS impact of
income tax benefit
|
$
0.03
|
|
$
0.05
|
|
$
1.29
|
|
$
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS excluding
income tax benefit
|
$
0.19
|
|
$
0.36
|
|
$
0.44
|
|
$
1.41
|
|
|
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (Continued)
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
Tangible Book Value
Per Common Share
|
|
|
|
|
December
31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March
31,
2022
|
|
December
31,
2021
|
|
|
GAAP common
equity
|
$
1,164,294
|
|
$
1,121,410
|
|
$
1,079,117
|
|
$ 887,434
|
|
$
850,242
|
|
|
Less:
Goodwill
|
(75,717)
|
|
(75,717)
|
|
(75,717)
|
|
(75,717)
|
|
(75,717)
|
|
|
Less: Intangible
assets
|
(16,334)
|
|
(17,512)
|
|
(18,690)
|
|
(19,886)
|
|
(21,181)
|
|
|
Tangible common
equity
|
$
1,072,243
|
|
$
1,028,181
|
|
$ 984,710
|
|
$ 791,831
|
|
$
753,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
common share
|
|
|
|
|
|
|
|
|
|
|
|
GAAP common
equity
|
$
1,164,294
|
|
$
1,121,410
|
|
$
1,079,117
|
|
$ 887,434
|
|
$
850,242
|
|
|
Common shares issued
and outstanding
|
106,546,995
|
|
105,088,761
|
|
103,630,776
|
|
102,194,037
|
|
101,043,924
|
|
|
Book value per
common share
|
$
10.93
|
|
$
10.67
|
|
$
10.41
|
|
$
8.68
|
|
$
8.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity
|
$
1,072,243
|
|
$
1,028,181
|
|
$ 984,710
|
|
$ 791,831
|
|
$
753,344
|
|
|
Common shares issued
and outstanding
|
106,546,995
|
|
105,088,761
|
|
103,630,776
|
|
102,194,037
|
|
101,043,924
|
|
|
Tangible book value
per common share
|
$
10.06
|
|
$
9.78
|
|
$
9.50
|
|
$
7.75
|
|
$
7.46
|
|
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SOURCE LendingClub Corporation