付属書99.1
レンディングクラブは2024年第3四半期の業績を報告しました
銀行バイヤーの復帰に支えられた取引高および売上高の成長。
レンディングクラブのローンの$13億の購入により、総資産は年初から25%増加。
10月にテクノロジーを取得し、製品ロードマップを加速させました
2024年10月23日、SAN FRANCISCO - レンディングクラブコーポレーション （nyse: LC）、レンディングクラブ銀行の親会社であるアメリカの主要なデジタルマーケットプレイス銀行、が2024年9月30日に終了した第3四半期の財務結果を発表しました。
「当社は積極的な四半期を迎え、信用面での優位性や銀行の買い手の復活により、貸出価格の向上がもたらされ、年初来で資本戦略が25％拡大し、強力な財務業績が過去12か月で共通株式1株あたりの帳簿価額に意味のある改善をもたらしています」とレンディングクラブCEOのScott Sanbornは述べました。「今後、Tallyの受賞歴のあるクレジットカードの債務監視および管理テクノロジーの買収により、製品の開発計画を加速させ、歴史的に大きな13兆ドルのクレジットカードの再資金調達の機会をさらに掴んでいくことができます。」
2024年第3四半期の結果
バランスシート:
•前四半期の96億ドルに比べ、110億ドルの総資産は、主にバランスシートに保有されている全ローン及び構造化証券プログラムに関連する証券の成長に起因しています。
・60億ドルのバランスシートに保有されている全額ローンは、前の四半期の51億ドルと比較しており、主に13億ドルのレンディングクラブ発行ローンポートフォリオの購入を反映しています。
・3.3億ドルの売却可能証券があり、前四半期の2.8億ドルと比較して、主に構造化証券の成長を反映しています。
•先行四半期の81億ドルに対して95億ドルの入金があり、主に消費者の入金とブローカー証券を通じた証券預金の増加によるものです。
・直販消費関連のLevelUp Savings商品を発売し、消費関連から好意的な反応を得ています。
・全預金の88%がFDIC保険で保護されています。
•即座に利用可能な流動性が36億ドルあり、財務の健全性が高いです。
•Tier 1レバレッジ率は11.3％、共通エクイティTier 1資本比率は15.9％で、強力な資本基盤を持っています。
•1株当たりの帳簿価額は、前の四半期の$11.52に比べて$11.95に上昇しました。
•1株当たりの実質帳簿価額は前四半期の10.75ドルから11.19ドルに増加しました。
財務成績：
•貸付成立額は前四半期の18億ドルに比べて19億ドルに増加しました。これは、新規消費者ローンの施策の成功と、構造化証券や高い全ローン保有へのマーケットプレイス投資家の需要によるものです。
•総純金利収入は、前四半期の1億8720万ドルから比べて2億190万ドルに増加しました。これは、大きなバランスシートからの高い純金利収入と改善されたマーケットプレイスローンの販売価格によるものです。
•前四半期の35.6百万ドルに比べ、今年の第四半期の含み損失は47.5百万ドルで、四半期中は投資保有用の全額貸付引き留めの増加により上昇しました。
•債券ポートフォリオの保有端末投資における債権減価償却前の償却の減少額は5580万ドルになり、前四半期の6680万ドルから下がった；前四半期の6.2%に比べて、5.4%の償却率は下がった。
•当期純利益は1,450万ドルで、前四半期の1,490万ドルと比較して、両期間とも希薄化後epsは0.13ドルでした。
•プリ・プロビジョニング前純売上高（PPNR）は、総純売上高の増加による1470万ドルの部分的な相殺による非利子経費の400万ドルの増加を部分的にオフセットし、前四半期の5500万ドルから6500万ドルに増加しました。
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| 3 か月が終了 | |||||||||||||||||
| （百万ドル、1株あたりの金額を除く） | 9月30日 2024 | 6月30日 2024 | 9月30日 2023 | ||||||||||||||
| 総純収入 | $ | 201.9 | $ | 187.2 | $ | 200.8 | |||||||||||
| 無利子支出 | 136.3 | 132.3 | 128.0 | ||||||||||||||
純収益を事前に準備しておきます (1) | 65.5 | 55.0 | 72.8 | ||||||||||||||
| 信用損失引当金 | 47.5 | 35.6 | 64.5 | ||||||||||||||
| 所得税費用控除前利益 | 18.0 | 19.4 | 8.3 | ||||||||||||||
| 所得税費用 | (3.6) | (4.5) | (3.3) | ||||||||||||||
| 純利益 | $ | 14.5 | $ | 14.9 | $ | 5.0 | |||||||||||
| 希釈後のEPS | $ | 0.13 | $ | 0.13 | $ | 0.05 | |||||||||||
(1) 本リリースのページ３をご覧ください。非GAAP財務指標の使用に関する追加情報があります。
Pre-Provision Net Revenueおよび1株当たりの実質帳簿価額の計算については、「」を参照してください。GAAP財務指標から非GAAP財務指標への調整” このリリースの最後にあるテーブルをご覧ください。
財務見通し
同社は、2024年2月29日に、至上責任者、コンサルタント、第三者専門家、及び1月2024年に辞意を表明した前従業員各1名との、合計7件の契約を締結しました。これらの契約には、これらの人々が、従来不履行となった債務、未来の報酬を受け取る条件が規定されています。当該一旦の債務に対し、それぞれの契約では、当社が次のいずれかに該当した場合、直ちに支払い期日が到来することが定められています：(i) 年間EBITDAが500万ドル以上となった場合（同社の10-k形式の年次報告書を参照することで確認）、ただし同報告書がない場合は、株主に提出された財務諸表に従い、または(ii) 四半期の利益が1200万ドル以上となった場合、または(iii) 当社の取締役会が債務の宣告を行った場合。支払いがなされるまでの期間、当該債務は全て8%の利息を付与します。これらの協定には、雇用契約に定められたそれぞれの給与は、2024年3月1日から同契約に基づく報酬の1/4未満に減額され、当社が資本調達または債務調達により300万ドル以上を調達した場合、契約日に1/2に増額されることも規定されています。 | |||||
| ローンの発生源 | 18億ドルから19億ドル | ||||
| 貸出し前ネット収益（PPNR）は、4,000万ドルから5,000万ドルに | $6000万から$70M | ||||
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LendingClubについて
レンディングクラブコーポレーション（nyse：LC）は、レンディングクラブ銀行の親会社であり、メンバーFDICのレンディングクラブ銀行は、米国の主要なデジタルマーケットプレイス銀行です。ここでは、メンバーが、借り入れ時により少なく返済し、貯蓄時により多く稼げるように設計された幅広い金融商品やサービスにアクセスできます。数百億のデータセルと9,000億ドルを超えるローンに基づき、当社の先進的な信用決定および機械学習モデルが顧客ライフサイクル全体で使用され、メンバーに対する信用へのシームレスなアクセスを拡大し、ローン投資家に魅力的なリスク調整収益を生み出します。2007年以来、500万以上のメンバーがクラブに参加し、自分の財務目標達成を支援しています。レンディングクラブに関する詳細情報は、https://www.lendingclub.com をご覧ください。
カンファレンスコールとWebキャスト情報
レンディングクラブの第3四半期2024年ウェブキャストとテレカンファレンスは2024年10月23日（水曜日）午後2時（太平洋時間）（または午後5時（東部時間））に開始予定です。通話のライブウェブキャストは、Quarterly Resultsの「ファイリング＆財務」メニューの下でご覧いただけます。 http://ir.lendingclub.com 通話へのアクセスには、午後2時（太平洋時間）（または午後5時（東部時間））の10分前に+1（404）975-4839にダイヤルしていただくか、米国外からは+1（833）470-1428にダイヤルし、アクセスコード834946を入力してください。通話のオーディオアーカイブは、 http://ir.lendingclub.comをご利用いただけます。通話終了後1時間後から2024年10月30日まで、通話のオーディオリプレイは+1（929）458-6194にダイヤルするか、米国外からは+1（866）813-9403にダイヤルし、アクセスコード106763を入力してください。レンディングクラブは、投資家向け情報の開示にこの投資家向けウェブサイト、ブログ（http://blog.lendingclub.com）、X（元々Twitter）ハンドル（@LendingClubと@LendingClubIR）、およびFacebookページ（https://www.facebook.com/LendingClubTeam）を利用しており、規制FDの開示義務を遵守します。
IR問合せ先：
投資家向け:
IR@lendingclub.com
メディア連絡先：
Press@lendingclub.com
非GAAP財務指標
財務諸表を補足するために、米国会計基準(GAAP)に従って作成および提示されている当社の使用している以下の非GAAP財務指標を使用しています：償却前純利益および1株当たりの実質帳簿価値。当社の非GAAP財務指標には限界があり、それらを単独でまたはGAAPの下での当社の結果の分析の代替手段として考慮すべきではありません。
私たちは、これらの非GAAP財務指標が、経営陣や投資家に、当社のビジネスの財務パフォーマンスに関する有用な補完情報を提供し、あるアイテムがビジネスのパフォーマンスとは独立して変動する期間を比較可能にし、当社の財務結果を他の公開企業と比較可能にしています。
We believe Pre-Provision Net Revenue is an important measure because it reflects 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.
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 on page 13 of this release.
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We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense with reasonable certainty without unreasonable effort.
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 borrowers and platform investors; competition; overall economic conditions; the interest rate environment; the regulatory environment; default rates and those factors set forth in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
*****
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LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
| As of and for the three months ended | % Change | ||||||||||||||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | Q/Q | Y/Y | |||||||||||||||||||||||||||||||||||
| Operating Highlights: | |||||||||||||||||||||||||||||||||||||||||
| Non-interest income | $ | 61,640 | $ | 58,713 | $ | 57,800 | $ | 54,129 | $ | 63,844 | 5 | % | (3) | % | |||||||||||||||||||||||||||
| Net interest income | 140,241 | 128,528 | 122,888 | 131,477 | 137,005 | 9 | % | 2 | % | ||||||||||||||||||||||||||||||||
| Total net revenue | 201,881 | 187,241 | 180,688 | 185,606 | 200,849 | 8 | % | 1 | % | ||||||||||||||||||||||||||||||||
| Non-interest expense | 136,332 | 132,258 | 132,233 | 130,015 | 128,035 | 3 | % | 6 | % | ||||||||||||||||||||||||||||||||
Pre-provision net revenue(1) | 65,549 | 54,983 | 48,455 | 55,591 | 72,814 | 19 | % | (10) | % | ||||||||||||||||||||||||||||||||
| Provision for credit losses | 47,541 | 35,561 | 31,927 | 41,907 | 64,479 | 34 | % | (26) | % | ||||||||||||||||||||||||||||||||
Income before income tax expense | 18,008 | 19,422 | 16,528 | 13,684 | 8,335 | (7) | % | 116 | % | ||||||||||||||||||||||||||||||||
Income tax expense | (3,551) | (4,519) | (4,278) | (3,529) | (3,327) | (21) | % | 7 | % | ||||||||||||||||||||||||||||||||
| Net income | $ | 14,457 | $ | 14,903 | $ | 12,250 | $ | 10,155 | $ | 5,008 | (3) | % | 189 | % | |||||||||||||||||||||||||||
| Basic EPS | $ | 0.13 | $ | 0.13 | $ | 0.11 | $ | 0.09 | $ | 0.05 | — | % | 160 | % | |||||||||||||||||||||||||||
| Diluted EPS | $ | 0.13 | $ | 0.13 | $ | 0.11 | $ | 0.09 | $ | 0.05 | — | % | 160 | % | |||||||||||||||||||||||||||
| LendingClub Corporation Performance Metrics: | |||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 5.63 | % | 5.75 | % | 5.75 | % | 6.40 | % | 6.91 | % | |||||||||||||||||||||||||||||||
Efficiency ratio(2) | 67.5 | % | 70.6 | % | 73.2 | % | 70.0 | % | 63.7 | % | |||||||||||||||||||||||||||||||
Return on average equity (ROE)(3) | 4.4 | % | 4.7 | % | 3.9 | % | 3.3 | % | 1.7 | % | |||||||||||||||||||||||||||||||
Return on average total assets (ROA)(4) | 0.6 | % | 0.6 | % | 0.5 | % | 0.5 | % | 0.2 | % | |||||||||||||||||||||||||||||||
| Marketing expense as a % of loan originations | 1.37 | % | 1.47 | % | 1.47 | % | 1.44 | % | 1.30 | % | |||||||||||||||||||||||||||||||
| LendingClub Corporation Capital Metrics: | |||||||||||||||||||||||||||||||||||||||||
| Common equity Tier 1 capital ratio | 15.9 | % | 17.9 | % | 17.6 | % | 17.9 | % | 16.9 | % | |||||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 11.3 | % | 12.1 | % | 12.5 | % | 12.9 | % | 13.2 | % | |||||||||||||||||||||||||||||||
| Book value per common share | $ | 11.95 | $ | 11.52 | $ | 11.40 | $ | 11.34 | $ | 11.02 | 4 | % | 8 | % | |||||||||||||||||||||||||||
Tangible book value per common share(1) | $ | 11.19 | $ | 10.75 | $ | 10.61 | $ | 10.54 | $ | 10.21 | 4 | % | 10 | % | |||||||||||||||||||||||||||
Loan Originations (in millions)(5): | |||||||||||||||||||||||||||||||||||||||||
| Total loan originations | $ | 1,913 | $ | 1,813 | $ | 1,646 | $ | 1,630 | $ | 1,508 | 6 | % | 27 | % | |||||||||||||||||||||||||||
| Marketplace loans | $ | 1,403 | $ | 1,477 | $ | 1,361 | $ | 1,432 | $ | 1,182 | (5) | % | 19 | % | |||||||||||||||||||||||||||
| Loan originations held for investment | $ | 510 | $ | 336 | $ | 285 | $ | 198 | $ | 326 | 52 | % | 56 | % | |||||||||||||||||||||||||||
| Loan originations held for investment as a % of total loan originations | 27 | % | 19 | % | 17 | % | 12 | % | 22 | % | |||||||||||||||||||||||||||||||
Servicing Portfolio AUM (in millions)(6): | |||||||||||||||||||||||||||||||||||||||||
| Total servicing portfolio | $ | 12,674 | $ | 12,999 | $ | 13,437 | $ | 14,122 | $ | 14,818 | (3) | % | (14) | % | |||||||||||||||||||||||||||
| Loans serviced for others | $ | 7,028 | $ | 8,337 | $ | 8,671 | $ | 9,336 | $ | 9,601 | (16) | % | (27) | % | |||||||||||||||||||||||||||
(1) Represents a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Financial Measures.”
(2) Calculated as the ratio of non-interest expense to total net revenue.
(3) Calculated as annualized net income divided by average equity for the period presented.
(4) Calculated as annualized net income divided by average total assets for the period presented.
(5) Includes unsecured personal loans and auto loans only.
(6) 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.
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LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
| As of and for the three months ended | % Change | ||||||||||||||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | Q/Q | Y/Y | |||||||||||||||||||||||||||||||||||
| Balance Sheet Data: | |||||||||||||||||||||||||||||||||||||||||
| Securities available for sale | $ | 3,311,418 | $ | 2,814,383 | $ | 2,228,500 | $ | 1,620,262 | $ | 795,669 | 18 | % | 316 | % | |||||||||||||||||||||||||||
| Loans held for sale at fair value | $ | 849,967 | $ | 791,059 | $ | 550,415 | $ | 407,773 | $ | 362,789 | 7 | % | 134 | % | |||||||||||||||||||||||||||
| Loans and leases held for investment at amortized cost | $ | 4,108,329 | $ | 4,228,391 | $ | 4,505,816 | $ | 4,850,302 | $ | 5,237,277 | (3) | % | (22) | % | |||||||||||||||||||||||||||
Gross allowance for loan and lease losses (1) | $ | (274,538) | $ | (285,368) | $ | (311,794) | $ | (355,773) | $ | (388,156) | (4) | % | (29) | % | |||||||||||||||||||||||||||
Recovery asset value (2) | $ | 53,974 | $ | 56,459 | $ | 52,644 | $ | 45,386 | $ | 37,661 | (4) | % | 43 | % | |||||||||||||||||||||||||||
| Allowance for loan and lease losses | $ | (220,564) | $ | (228,909) | $ | (259,150) | $ | (310,387) | $ | (350,495) | (4) | % | (37) | % | |||||||||||||||||||||||||||
| Loans and leases held for investment at amortized cost, net | $ | 3,887,765 | $ | 3,999,482 | $ | 4,246,666 | $ | 4,539,915 | $ | 4,886,782 | (3) | % | (20) | % | |||||||||||||||||||||||||||
Loans held for investment at fair value (3)(4) | $ | 1,287,495 | $ | 339,222 | $ | 427,396 | $ | 272,678 | $ | 344,417 | 280 | % | 274 | % | |||||||||||||||||||||||||||
Total loans and leases held for investment (3)(4) | $ | 5,175,260 | $ | 4,338,704 | $ | 4,674,062 | $ | 4,812,593 | $ | 5,231,199 | 19 | % | (1) | % | |||||||||||||||||||||||||||
Whole loans held on balance sheet (4)(5) | $ | 6,025,227 | $ | 5,129,763 | $ | 5,224,477 | $ | 5,220,366 | $ | 5,593,988 | 17 | % | 8 | % | |||||||||||||||||||||||||||
| Total assets | $ | 11,037,507 | $ | 9,586,050 | $ | 9,244,828 | $ | 8,827,463 | $ | 8,472,351 | 15 | % | 30 | % | |||||||||||||||||||||||||||
| Total deposits | $ | 9,459,608 | $ | 8,095,328 | $ | 7,521,655 | $ | 7,333,486 | $ | 7,000,263 | 17 | % | 35 | % | |||||||||||||||||||||||||||
| Total liabilities | $ | 9,694,612 | $ | 8,298,105 | $ | 7,978,542 | $ | 7,575,641 | $ | 7,264,132 | 17 | % | 33 | % | |||||||||||||||||||||||||||
| Total equity | $ | 1,342,895 | $ | 1,287,945 | $ | 1,266,286 | $ | 1,251,822 | $ | 1,208,219 | 4 | % | 11 | % | |||||||||||||||||||||||||||
(1) Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2) Represents the negative allowance for expected recoveries of amounts previously charged-off.
(3) Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amounts have been reclassified to conform to the current period presentation.
(4) The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.
(5) Includes loans held for sale at fair value, loans and leases held for investment at amortized cost, net of allowance for loan and lease losses, and loans held for investment at fair value.
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 | |||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
Asset Quality Metrics (1): | |||||||||||||||||||||||||||||
Allowance for loan and lease losses to total loans and leases held for investment at amortized cost | 5.4 | % | 5.4 | % | 5.8 | % | 6.4 | % | 6.7 | % | |||||||||||||||||||
| Allowance for loan and lease losses to commercial loans and leases held for investment at amortized cost | 3.1 | % | 2.7 | % | 1.9 | % | 1.8 | % | 2.0 | % | |||||||||||||||||||
Allowance for loan and lease losses to consumer loans and leases held for investment at amortized cost | 5.8 | % | 5.9 | % | 6.4 | % | 7.2 | % | 7.4 | % | |||||||||||||||||||
Gross allowance for loan and lease losses to consumer loans and leases held for investment at amortized cost | 7.3 | % | 7.5 | % | 7.8 | % | 8.3 | % | 8.2 | % | |||||||||||||||||||
| Net charge-offs | $ | 55,805 | $ | 66,818 | $ | 80,483 | $ | 82,511 | $ | 68,795 | |||||||||||||||||||
Net charge-off ratio (2) | 5.4 | % | 6.2 | % | 6.9 | % | 6.6 | % | 5.1 | % | |||||||||||||||||||
(1) Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.
(2) Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period.
6
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:
| September 30, 2024 | December 31, 2023 | ||||||||||
| Unsecured personal | $ | 3,068,078 | $ | 3,726,830 | |||||||
| Residential mortgages | 175,345 | 183,050 | |||||||||
| Secured consumer | 239,206 | 250,039 | |||||||||
| Total consumer loans held for investment | 3,482,629 | 4,159,919 | |||||||||
Equipment finance (1) | 74,674 | 110,992 | |||||||||
| Commercial real estate | 371,796 | 380,322 | |||||||||
Commercial and industrial | 179,230 | 199,069 | |||||||||
| Total commercial loans and leases held for investment | 625,700 | 690,383 | |||||||||
| Total loans and leases held for investment at amortized cost | 4,108,329 | 4,850,302 | |||||||||
| Allowance for loan and lease losses | (220,564) | (310,387) | |||||||||
| Loans and leases held for investment at amortized cost, net | $ | 3,887,765 | $ | 4,539,915 | |||||||
Loans held for investment at fair value (2)(3) | 1,287,495 | 272,678 | |||||||||
Total loans and leases held for investment (3) | $ | 5,175,260 | $ | 4,812,593 | |||||||
(1) Comprised of sales-type leases for equipment.
(2) Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amount has been reclassified to conform to the current period presentation.
(3) The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.
7
LENDINGCLUB CORPORATION
ALLOWANCE FOR LOAN AND LEASE LOSSES
(In thousands)
(Unaudited)
The following table presents the components of the allowance for loan and lease losses on loans and leases held for investment at amortized cost:
| September 30, 2024 | December 31, 2023 | ||||||||||
Gross allowance for loan and lease losses (1) | $ | 274,538 | $ | 355,773 | |||||||
Recovery asset value (2) | (53,974) | (45,386) | |||||||||
| Allowance for loan and lease losses | $ | 220,564 | $ | 310,387 | |||||||
(1) Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2) Represents the negative allowance for expected recoveries of amounts previously charged-off.
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 | |||||||||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | ||||||||||||||||||||||||||||||||||
| Consumer | Commercial | Total | Consumer | Commercial | Total | ||||||||||||||||||||||||||||||
| Allowance for loan and lease losses, beginning of period | $ | 210,729 | $ | 18,180 | $ | 228,909 | $ | 246,280 | $ | 12,870 | $ | 259,150 | |||||||||||||||||||||||
| Credit loss expense for loans and leases held for investment | 45,813 | 1,647 | 47,460 | 30,760 | 5,817 | 36,577 | |||||||||||||||||||||||||||||
| Charge-offs | (68,388) | (721) | (69,109) | (77,494) | (594) | (78,088) | |||||||||||||||||||||||||||||
| Recoveries | 12,745 | 559 | 13,304 | 11,183 | 87 | 11,270 | |||||||||||||||||||||||||||||
| Allowance for loan and lease losses, end of period | $ | 200,899 | $ | 19,665 | $ | 220,564 | $ | 210,729 | $ | 18,180 | $ | 228,909 | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||
| September 30, 2023 | |||||||||||||||||
| Consumer | Commercial | Total | |||||||||||||||
| Allowance for loan and lease losses, beginning of period | $ | 341,161 | $ | 14,002 | $ | 355,163 | |||||||||||
Credit loss expense for loans and leases held for investment | 63,733 | 394 | 64,127 | ||||||||||||||
| Charge-offs | (73,644) | (534) | (74,178) | ||||||||||||||
| Recoveries | 5,038 | 345 | 5,383 | ||||||||||||||
| Allowance for loan and lease losses, end of period | $ | 336,288 | $ | 14,207 | $ | 350,495 | |||||||||||
8
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:
| September 30, 2024 | 30-59 Days | 60-89 Days | 90 or More Days | Total Days Past Due | Guaranteed Amount (1) | ||||||||||||||||||||||||
| Unsecured personal | $ | 25,749 | $ | 20,156 | $ | 22,352 | $ | 68,257 | $ | — | |||||||||||||||||||
| Residential mortgages | — | 145 | 167 | 312 | — | ||||||||||||||||||||||||
| Secured consumer | 2,283 | 675 | 242 | 3,200 | — | ||||||||||||||||||||||||
| Total consumer loans held for investment | $ | 28,032 | $ | 20,976 | $ | 22,761 | $ | 71,769 | $ | — | |||||||||||||||||||
| Equipment finance | $ | — | $ | — | $ | 4,850 | $ | 4,850 | $ | — | |||||||||||||||||||
| Commercial real estate | 3,882 | 678 | 6,106 | 10,666 | 8,681 | ||||||||||||||||||||||||
Commercial and industrial | 417 | 8,207 | 7,232 | 15,856 | 12,347 | ||||||||||||||||||||||||
Total commercial loans and leases held for investment | $ | 4,299 | $ | 8,885 | $ | 18,188 | $ | 31,372 | $ | 21,028 | |||||||||||||||||||
Total loans and leases held for investment at amortized cost | $ | 32,331 | $ | 29,861 | $ | 40,949 | $ | 103,141 | $ | 21,028 | |||||||||||||||||||
| December 31, 2023 | 30-59 Days | 60-89 Days | 90 or More Days | Total Days Past Due | Guaranteed Amount (1) | ||||||||||||||||||||||||
| Unsecured personal | $ | 32,716 | $ | 29,556 | $ | 30,132 | $ | 92,404 | $ | — | |||||||||||||||||||
| Residential mortgages | 1,751 | — | — | 1,751 | — | ||||||||||||||||||||||||
| Secured consumer | 2,076 | 635 | 217 | 2,928 | — | ||||||||||||||||||||||||
| Total consumer loans held for investment | $ | 36,543 | $ | 30,191 | $ | 30,349 | $ | 97,083 | $ | — | |||||||||||||||||||
| Equipment finance | $ | 1,265 | $ | — | $ | — | $ | 1,265 | $ | — | |||||||||||||||||||
| Commercial real estate | — | 3,566 | 1,618 | 5,184 | 4,047 | ||||||||||||||||||||||||
Commercial and industrial | 12,261 | 1,632 | 1,515 | 15,408 | 11,260 | ||||||||||||||||||||||||
Total commercial loans and leases held for investment | $ | 13,526 | $ | 5,198 | $ | 3,133 | $ | 21,857 | $ | 15,307 | |||||||||||||||||||
Total loans and leases held for investment at amortized cost | $ | 50,069 | $ | 35,389 | $ | 33,482 | $ | 118,940 | $ | 15,307 | |||||||||||||||||||
(1) Represents loan balances guaranteed by the Small Business Association.
9
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended | Change (%) | ||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | Q3 2024 vs Q2 2024 | Q3 2024 vs Q3 2023 | |||||||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||||||||
| Origination fees | $ | 71,465 | $ | 77,131 | $ | 60,912 | (7) | % | 17 | % | |||||||||||||||||||
| Servicing fees | 8,081 | 19,869 | 32,768 | (59) | % | (75) | % | ||||||||||||||||||||||
| Gain on sales of loans | 12,433 | 10,748 | 8,572 | 16 | % | 45 | % | ||||||||||||||||||||||
| Net fair value adjustments | (33,595) | (51,395) | (41,366) | (35) | % | (19) | % | ||||||||||||||||||||||
| Marketplace revenue | 58,384 | 56,353 | 60,886 | 4 | % | (4) | % | ||||||||||||||||||||||
| Other non-interest income | 3,256 | 2,360 | 2,958 | 38 | % | 10 | % | ||||||||||||||||||||||
| Total non-interest income | 61,640 | 58,713 | 63,844 | 5 | % | (3) | % | ||||||||||||||||||||||
| Total interest income | 240,377 | 219,634 | 207,412 | 9 | % | 16 | % | ||||||||||||||||||||||
| Total interest expense | 100,136 | 91,106 | 70,407 | 10 | % | 42 | % | ||||||||||||||||||||||
| Net interest income | 140,241 | 128,528 | 137,005 | 9 | % | 2 | % | ||||||||||||||||||||||
| Total net revenue | 201,881 | 187,241 | 200,849 | 8 | % | 1 | % | ||||||||||||||||||||||
| Provision for credit losses | 47,541 | 35,561 | 64,479 | 34 | % | (26) | % | ||||||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||||||||
| Compensation and benefits | 57,408 | 56,540 | 58,497 | 2 | % | (2) | % | ||||||||||||||||||||||
| Marketing | 26,186 | 26,665 | 19,555 | (2) | % | 34 | % | ||||||||||||||||||||||
| Equipment and software | 12,789 | 12,360 | 12,631 | 3 | % | 1 | % | ||||||||||||||||||||||
| Depreciation and amortization | 13,341 | 13,072 | 11,250 | 2 | % | 19 | % | ||||||||||||||||||||||
| Professional services | 8,014 | 7,804 | 8,414 | 3 | % | (5) | % | ||||||||||||||||||||||
| Occupancy | 4,005 | 3,941 | 4,612 | 2 | % | (13) | % | ||||||||||||||||||||||
| Other non-interest expense | 14,589 | 11,876 | 13,076 | 23 | % | 12 | % | ||||||||||||||||||||||
| Total non-interest expense | 136,332 | 132,258 | 128,035 | 3 | % | 6 | % | ||||||||||||||||||||||
Income before income tax expense | 18,008 | 19,422 | 8,335 | (7) | % | 116 | % | ||||||||||||||||||||||
Income tax expense | (3,551) | (4,519) | (3,327) | (21) | % | 7 | % | ||||||||||||||||||||||
| Net income | $ | 14,457 | $ | 14,903 | $ | 5,008 | (3) | % | 189 | % | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
| Basic EPS | $ | 0.13 | $ | 0.13 | $ | 0.05 | — | % | 160 | % | |||||||||||||||||||
| Diluted EPS | $ | 0.13 | $ | 0.13 | $ | 0.05 | — | % | 160 | % | |||||||||||||||||||
| Weighted-average common shares – Basic | 112,042,202 | 111,395,025 | 109,071,180 | 1 | % | 3 | % | ||||||||||||||||||||||
| Weighted-average common shares – Diluted | 113,922,256 | 111,466,497 | 109,073,194 | 2 | % | 4 | % | ||||||||||||||||||||||
10
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2024 | Three Months Ended June 30, 2024 | Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 939,611 | $ | 12,442 | 5.30 | % | $ | 976,330 | $ | 13,168 | 5.40 | % | $ | 1,249,087 | $ | 16,798 | 5.38 | % | |||||||||||||||||||||||||||||||||||
| Securities available for sale at fair value | 3,047,305 | 52,476 | 6.89 | % | 2,406,767 | 42,879 | 7.13 | % | 601,512 | 9,467 | 6.30 | % | |||||||||||||||||||||||||||||||||||||||||
| Loans held for sale at fair value | 899,434 | 30,326 | 13.49 | % | 838,143 | 26,721 | 12.75 | % | 286,111 | 9,582 | 13.40 | % | |||||||||||||||||||||||||||||||||||||||||
| Loans and leases held for investment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unsecured personal loans | 3,045,150 | 103,291 | 13.57 | % | 3,243,161 | 108,425 | 13.37 | % | 4,257,360 | 142,118 | 13.35 | % | |||||||||||||||||||||||||||||||||||||||||
| Commercial and other consumer loans | 1,057,688 | 15,497 | 5.86 | % | 1,097,846 | 16,394 | 5.97 | % | 1,147,130 | 16,842 | 5.87 | % | |||||||||||||||||||||||||||||||||||||||||
| Loans and leases held for investment at amortized cost | 4,102,838 | 118,788 | 11.58 | % | 4,341,007 | 124,819 | 11.50 | % | 5,404,490 | 158,960 | 11.76 | % | |||||||||||||||||||||||||||||||||||||||||
Loans held for investment at fair value (3)(4) | 972,698 | 26,345 | 10.83 | % | 383,872 | 12,047 | 12.55 | % | 385,148 | 12,605 | 13.09 | % | |||||||||||||||||||||||||||||||||||||||||
Total loans and leases held for investment (3)(4) | 5,075,536 | 145,133 | 11.44 | % | 4,724,879 | 136,866 | 11.59 | % | 5,789,638 | 171,565 | 11.85 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 9,961,886 | 240,377 | 9.65 | % | 8,946,119 | 219,634 | 9.82 | % | 7,926,348 | 207,412 | 10.47 | % | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks and restricted cash | 41,147 | 55,906 | 69,442 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | (225,968) | (245,478) | (354,263) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other non-interest earning assets | 624,198 | 632,253 | 691,641 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 10,401,263 | $ | 9,388,800 | $ | 8,333,168 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Checking and money market accounts | $ | 1,092,376 | $ | 10,146 | 3.70 | % | $ | 1,097,696 | $ | 10,084 | 3.69 | % | $ | 1,271,720 | $ | 9,541 | 2.98 | % | |||||||||||||||||||||||||||||||||||
| Savings accounts and certificates of deposit | 6,944,586 | 86,717 | 4.97 | % | 6,449,061 | 80,109 | 5.00 | % | 5,357,717 | 59,968 | 4.44 | % | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | 8,036,962 | 96,863 | 4.79 | % | 7,546,757 | 90,193 | 4.81 | % | 6,629,437 | 69,509 | 4.16 | % | |||||||||||||||||||||||||||||||||||||||||
Other interest-bearing liabilities (3) | 486,736 | 3,273 | 2.69 | % | 56,628 | 913 | 6.45 | % | 35,878 | 898 | 10.03 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 8,523,698 | 100,136 | 4.67 | % | 7,603,385 | 91,106 | 4.82 | % | 6,665,315 | 70,407 | 4.19 | % | |||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | 344,577 | 303,199 | 183,728 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 225,467 | 215,608 | 271,118 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | $ | 9,093,742 | $ | 8,122,192 | $ | 7,120,161 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | $ | 1,307,521 | $ | 1,266,608 | $ | 1,213,007 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 10,401,263 | $ | 9,388,800 | $ | 8,333,168 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate spread | 4.98 | % | 5.00 | % | 6.28 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income and net interest margin | $ | 140,241 | 5.63 | % | $ | 128,528 | 5.75 | % | $ | 137,005 | 6.91 | % | |||||||||||||||||||||||||||||||||||||||||
(1) Consolidated presentation reflects intercompany eliminations.
(2) Nonaccrual loans and any related income are included in their respective loan categories.
(3) Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Other interest-bearing liabilities.” Prior period amounts have been reclassified to conform to the current period presentation.
(4) The average balance for the third quarter of 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the quarter.
11
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
| September 30, 2024 | December 31, 2023 | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 25,558 | $ | 14,993 | |||||||
| Interest-bearing deposits in banks | 991,372 | 1,237,511 | |||||||||
| Total cash and cash equivalents | 1,016,930 | 1,252,504 | |||||||||
| Restricted cash | 33,347 | 41,644 | |||||||||
Securities available for sale at fair value ($3,319,988 and $1,663,990 at amortized cost, respectively) | 3,311,418 | 1,620,262 | |||||||||
| Loans held for sale at fair value | 849,967 | 407,773 | |||||||||
| Loans and leases held for investment | 4,108,329 | 4,850,302 | |||||||||
| Allowance for loan and lease losses | (220,564) | (310,387) | |||||||||
| Loans and leases held for investment, net | 3,887,765 | 4,539,915 | |||||||||
Loans held for investment at fair value (1)(2) | 1,287,495 | 272,678 | |||||||||
| Property, equipment and software, net | 167,809 | 161,517 | |||||||||
| Goodwill | 75,717 | 75,717 | |||||||||
| Other assets | 407,059 | 455,453 | |||||||||
| Total assets | $ | 11,037,507 | $ | 8,827,463 | |||||||
| Liabilities and Equity | |||||||||||
| Deposits: | |||||||||||
| Interest-bearing | $ | 9,099,092 | $ | 7,001,680 | |||||||
| Noninterest-bearing | 360,516 | 331,806 | |||||||||
| Total deposits | 9,459,608 | 7,333,486 | |||||||||
Borrowings (1) | 2,683 | 19,354 | |||||||||
| Other liabilities | 232,321 | 222,801 | |||||||||
| Total liabilities | 9,694,612 | 7,575,641 | |||||||||
| Equity | |||||||||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 112,401,990 and 110,410,602 shares issued and outstanding, respectively | 1,124 | 1,104 | |||||||||
| Additional paid-in capital | 1,692,538 | 1,669,828 | |||||||||
| Accumulated deficit | (347,196) | (388,806) | |||||||||
| Accumulated other comprehensive loss | (3,571) | (30,304) | |||||||||
| Total equity | 1,342,895 | 1,251,822 | |||||||||
| Total liabilities and equity | $ | 11,037,507 | $ | 8,827,463 | |||||||
(1) Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Borrowings.” Prior period amounts have been reclassified to conform to the current period presentation.
(2) The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.
12
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 | |||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
| GAAP Net income | $ | 14,457 | $ | 14,903 | $ | 12,250 | $ | 10,155 | $ | 5,008 | |||||||||||||||||||
| Less: Provision for credit losses | (47,541) | (35,561) | (31,927) | (41,907) | (64,479) | ||||||||||||||||||||||||
Less: Income tax expense | (3,551) | (4,519) | (4,278) | (3,529) | (3,327) | ||||||||||||||||||||||||
| Pre-provision net revenue | $ | 65,549 | $ | 54,983 | $ | 48,455 | $ | 55,591 | $ | 72,814 | |||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
| Non-interest income | $ | 61,640 | $ | 58,713 | $ | 57,800 | $ | 54,129 | $ | 63,844 | |||||||||||||||||||
| Net interest income | 140,241 | 128,528 | 122,888 | 131,477 | 137,005 | ||||||||||||||||||||||||
| Total net revenue | 201,881 | 187,241 | 180,688 | 185,606 | 200,849 | ||||||||||||||||||||||||
| Non-interest expense | (136,332) | (132,258) | (132,233) | (130,015) | (128,035) | ||||||||||||||||||||||||
| Pre-provision net revenue | 65,549 | 54,983 | 48,455 | 55,591 | 72,814 | ||||||||||||||||||||||||
| Provision for credit losses | (47,541) | (35,561) | (31,927) | (41,907) | (64,479) | ||||||||||||||||||||||||
Income before income tax expense | 18,008 | 19,422 | 16,528 | 13,684 | 8,335 | ||||||||||||||||||||||||
Income tax expense | (3,551) | (4,519) | (4,278) | (3,529) | (3,327) | ||||||||||||||||||||||||
| GAAP Net income | $ | 14,457 | $ | 14,903 | $ | 12,250 | $ | 10,155 | $ | 5,008 | |||||||||||||||||||
Tangible Book Value Per Common Share
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
| GAAP common equity | $ | 1,342,895 | $ | 1,287,945 | $ | 1,266,286 | $ | 1,251,822 | $ | 1,208,219 | |||||||||||||||||||
| Less: Goodwill | (75,717) | (75,717) | (75,717) | (75,717) | (75,717) | ||||||||||||||||||||||||
| Less: Intangible assets | (9,439) | (10,293) | (11,165) | (12,135) | (13,151) | ||||||||||||||||||||||||
| Tangible common equity | $ | 1,257,739 | $ | 1,201,935 | $ | 1,179,404 | $ | 1,163,970 | $ | 1,119,351 | |||||||||||||||||||
| Book value per common share | |||||||||||||||||||||||||||||
| GAAP common equity | $ | 1,342,895 | $ | 1,287,945 | $ | 1,266,286 | $ | 1,251,822 | $ | 1,208,219 | |||||||||||||||||||
| Common shares issued and outstanding | 112,401,990 | 111,812,215 | 111,120,415 | 110,410,602 | 109,648,769 | ||||||||||||||||||||||||
| Book value per common share | $ | 11.95 | $ | 11.52 | $ | 11.40 | $ | 11.34 | $ | 11.02 | |||||||||||||||||||
| Tangible book value per common share | |||||||||||||||||||||||||||||
| Tangible common equity | $ | 1,257,739 | $ | 1,201,935 | $ | 1,179,404 | $ | 1,163,970 | $ | 1,119,351 | |||||||||||||||||||
| Common shares issued and outstanding | 112,401,990 | 111,812,215 | 111,120,415 | 110,410,602 | 109,648,769 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 11.19 | $ | 10.75 | $ | 10.61 | $ | 10.54 | $ | 10.21 | |||||||||||||||||||
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