LendingClub Reports Fourth Quarter and Full Year 2021 Results
01/26/2022 - 04:06 PM
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, 2021
September 30, 2021
December 31, 2020
December 31, 2021
December 31, 2020
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.
(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 Income Impact(1)
Per
Diluted Share Impact
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:IR@lendingclub.com
Media Contact:Press@lendingclub.com
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, 2021
September 30, 2021
June 30,
2021
March 31,
2021
December 31, 2020
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, 2021
September 30, 2021
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, 2021
September 30, 2021
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, 2021
September 30, 2021
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 Balance
Interest Income/ Expense
Average Yield/ Rate
Average Balance
Interest Income/ Expense
Average Yield/ Rate
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 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 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 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 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, 2021
December 31, 2020
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, 2021
December 31, 2020
December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-fourth-quarter-and-full-year-2021-results-301468963.html
SOURCE LendingClub Corporation
LC Rankings
#4709 Ranked by Stock Gains
LC Stock Data
Industry
Credit Card Issuing
Sector
Finance and Insurance
Tags
Finance, Finance/Rental/Leasing, Finance and Insurance, Credit Card Issuing
Country
US
City
San Francisco
About LC
lending club is the world’s largest online credit marketplace, facilitating personal loans, business loans, and financing for elective medical procedures and k-12 education and tutoring. borrowers access lower interest rate loans through a fast and easy online or mobile interface. investors provide the capital to enable many of the loans in exchange for earning interest. we operate fully online with no branch infrastructure, and use technology to lower cost and deliver an amazing experience. we pass the cost savings to borrowers in the form of lower rates and investors in the form of attractive returns. we’re transforming the banking system into a frictionless, transparent and highly efficient online marketplace, helping people achieve their financial goals every day. since launching in 2007 we’ve built a trusted brand with a track record of delivering exceptional value and satisfaction to both borrowers and investors. lending club’s awards include being named to the inc. 500 in 2014