LendingClub Reports Fourth Quarter and Full Year 2021 Results

Written by on January 26, 2022

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:
[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,
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

SOURCE LendingClub Corporation

— to www.prnewswire.com

The post LendingClub Reports Fourth Quarter and Full Year 2021 Results appeared first on Correct Success.


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