FORM |
8-K |
CURRENT REPORT | ||
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
LendingClub Corporation | ||
(Exact name of registrant as specified in its charter) |
Delaware | 51-0605731 | ||||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
595 Market Street, Suite 200, |
||||||||||||||
San Francisco, | CA | 94105 | ||||||||||||
(Address of principal executive offices and zip code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common stock, par value $0.01 per share | LC | New York Stock Exchange |
Emerging growth company | ☐ | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
☐ |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits | |||||||
(d) | Exhibits |
Exhibit Number |
Exhibit Title or Description | |||||||
104 | Cover Page Interactive Data File (Cover page XBRL tags are embedded within the Inline XBRL document) |
LendingClub Corporation | |||||||||||
Date: | January 30, 2024 | By: | /s/ ANDREW LABENNE | ||||||||
Andrew LaBenne | |||||||||||
Chief Financial Officer | |||||||||||
(duly authorized officer) |
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
($ in millions, except per share amounts) | December 31, 2023 |
September 30, 2023 |
December 31, 2022 |
December 31, 2023 |
December 31, 2022 |
||||||||||||||||||||||||
Total net revenue | $ | 185.6 | $ | 200.8 | $ | 262.7 | $ | 864.6 | $ | 1,187.2 | |||||||||||||||||||
Non-interest expense | 130.0 | 128.0 | 180.0 | 566.4 | 766.9 | ||||||||||||||||||||||||
Pre-provision net revenue (1) |
55.6 | 72.8 | 82.7 | 298.2 | 420.3 | ||||||||||||||||||||||||
Provision for credit losses | 41.9 | 64.5 | 61.5 | 243.6 | 267.3 | ||||||||||||||||||||||||
Income before income tax benefit (expense) | 13.7 | 8.3 | 21.2 | 54.6 | 153.0 | ||||||||||||||||||||||||
Income tax benefit (expense) | (3.5) | (3.3) | 2.4 | (15.7) | 136.6 | ||||||||||||||||||||||||
Net income | $ | 10.2 | $ | 5.0 | $ | 23.6 | $ | 38.9 | $ | 289.7 | |||||||||||||||||||
Diluted EPS | $ | 0.09 | $ | 0.05 | $ | 0.22 | $ | 0.36 | $ | 2.79 | |||||||||||||||||||
Income tax benefit from release of tax valuation allowance | $ | — | $ | — | $ | 3.2 | $ | — | $ | 143.5 | |||||||||||||||||||
Net income excluding income tax benefit(1)(2) |
$ | 10.2 | $ | 5.0 | $ | 20.4 | $ | 38.9 | $ | 146.2 | |||||||||||||||||||
Diluted EPS excluding income tax benefit(1)(2) |
$ | 0.09 | $ | 0.05 | $ | 0.19 | $ | 0.36 | $ | 1.41 |
First Quarter 2024 | |||||
Loan Originations | $1.5B to $1.7B |
||||
Pre-Provision Net Revenue (PPNR) | $30M to $40M |
As of and for the three months ended | % Change | ||||||||||||||||||||||||||||||||||||||||
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
Q/Q | Y/Y | |||||||||||||||||||||||||||||||||||
Operating Highlights: | |||||||||||||||||||||||||||||||||||||||||
Non-interest income | $ | 54,129 | $ | 63,844 | $ | 85,818 | $ | 98,990 | $ | 127,465 | (15) | % | (58) | % | |||||||||||||||||||||||||||
Net interest income | 131,477 | 137,005 | 146,652 | 146,704 | 135,243 | (4) | % | (3) | % | ||||||||||||||||||||||||||||||||
Total net revenue | 185,606 | 200,849 | 232,470 | 245,694 | 262,708 | (8) | % | (29) | % | ||||||||||||||||||||||||||||||||
Non-interest expense | 130,015 | 128,035 | 151,079 | 157,308 | 180,044 | 2 | % | (28) | % | ||||||||||||||||||||||||||||||||
Pre-provision net revenue(1) |
55,591 | 72,814 | 81,391 | 88,386 | 82,664 | (24) | % | (33) | % | ||||||||||||||||||||||||||||||||
Provision for credit losses | 41,907 | 64,479 | 66,595 | 70,584 | 61,512 | (35) | % | (32) | % | ||||||||||||||||||||||||||||||||
Income before income tax benefit (expense) | 13,684 | 8,335 | 14,796 | 17,802 | 21,152 | 64 | % | (35) | % | ||||||||||||||||||||||||||||||||
Income tax benefit (expense) | (3,529) | (3,327) | (4,686) | (4,136) | 2,439 | 6 | % | (245) | % | ||||||||||||||||||||||||||||||||
Net income | 10,155 | 5,008 | 10,110 | 13,666 | 23,591 | 103 | % | (57) | % | ||||||||||||||||||||||||||||||||
Income tax benefit from release of tax valuation allowance | — | — | — | — | 3,180 | N/M | N/M | ||||||||||||||||||||||||||||||||||
Net income excluding income tax benefit(1)(2) |
$ | 10,155 | $ | 5,008 | $ | 10,110 | $ | 13,666 | $ | 20,411 | 103 | % | (50) | % | |||||||||||||||||||||||||||
Basic EPS | $ | 0.09 | $ | 0.05 | $ | 0.09 | $ | 0.13 | $ | 0.22 | 80 | % | (59) | % | |||||||||||||||||||||||||||
Diluted EPS | $ | 0.09 | $ | 0.05 | $ | 0.09 | $ | 0.13 | $ | 0.22 | 80 | % | (59) | % | |||||||||||||||||||||||||||
Diluted EPS excluding income tax benefit(1)(2) |
$ | 0.09 | $ | 0.05 | $ | 0.09 | $ | 0.13 | $ | 0.19 | 80 | % | (53) | % | |||||||||||||||||||||||||||
LendingClub Corporation Performance Metrics: | |||||||||||||||||||||||||||||||||||||||||
Net interest margin | 6.4 | % | 6.9 | % | 7.1 | % | 7.5 | % | 7.8 | % | |||||||||||||||||||||||||||||||
Efficiency ratio(3) |
70.0 | % | 63.7 | % | 65.0 | % | 64.0 | % | 68.5 | % | |||||||||||||||||||||||||||||||
Return on average equity (ROE)(4) |
3.3 | % | 1.7 | % | 3.4 | % | 4.6 | % | 7.2 | % | |||||||||||||||||||||||||||||||
Return on average total assets (ROA)(5) |
0.5 | % | 0.2 | % | 0.5 | % | 0.7 | % | 1.1 | % | |||||||||||||||||||||||||||||||
Marketing expense as a % of loan originations | 1.4 | % | 1.3 | % | 1.2 | % | 1.2 | % | 1.4 | % | |||||||||||||||||||||||||||||||
LendingClub Corporation Capital Metrics: | |||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio | 17.9 | % | 16.9 | % | 16.1 | % | 15.6 | % | 15.8 | % | |||||||||||||||||||||||||||||||
Tier 1 leverage ratio | 12.9 | % | 13.2 | % | 12.4 | % | 12.8 | % | 14.1 | % | |||||||||||||||||||||||||||||||
Book value per common share | $ | 11.34 | $ | 11.02 | $ | 11.09 | $ | 11.08 | $ | 10.93 | 3 | % | 4 | % | |||||||||||||||||||||||||||
Tangible book value per common share(1) |
$ | 10.54 | $ | 10.21 | $ | 10.26 | $ | 10.23 | $ | 10.06 | 3 | % | 5 | % | |||||||||||||||||||||||||||
Loan Originations (in millions)(6): |
|||||||||||||||||||||||||||||||||||||||||
Total loan originations | $ | 1,630 | $ | 1,508 | $ | 2,011 | $ | 2,288 | $ | 2,524 | 8 | % | (35) | % | |||||||||||||||||||||||||||
Marketplace loans | $ | 1,432 | $ | 1,182 | $ | 1,353 | $ | 1,286 | $ | 1,824 | 21 | % | (21) | % | |||||||||||||||||||||||||||
Loan originations held for investment | $ | 198 | $ | 326 | $ | 657 | $ | 1,002 | $ | 701 | (39) | % | (72) | % | |||||||||||||||||||||||||||
Loan originations held for investment as a % of total loan originations | 12 | % | 22 | % | 33 | % | 44 | % | 28 | % | |||||||||||||||||||||||||||||||
Servicing Portfolio AUM (in millions)(7): | |||||||||||||||||||||||||||||||||||||||||
Total servicing portfolio | $ | 14,122 | $ | 14,818 | $ | 15,669 | $ | 16,060 | $ | 16,157 | (5) | % | (13) | % | |||||||||||||||||||||||||||
Loans serviced for others | $ | 9,336 | $ | 9,601 | $ | 10,204 | $ | 10,504 | $ | 10,819 | (3) | % | (14) | % | |||||||||||||||||||||||||||
As of and for the three months ended | % Change | ||||||||||||||||||||||||||||||||||||||||
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
Q/Q | Y/Y | |||||||||||||||||||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment at amortized cost, net, excluding PPP loans | $ | 4,533,523 | $ | 4,879,222 | $ | 5,160,546 | $ | 5,091,969 | $ | 4,638,331 | (7) | % | (2) | % | |||||||||||||||||||||||||||
PPP loans | $ | 6,392 | $ | 7,560 | $ | 17,640 | $ | 51,112 | $ | 66,971 | (15) | % | (90) | % | |||||||||||||||||||||||||||
Total loans and leases held for investment at amortized cost, net(8) |
$ | 4,539,915 | $ | 4,886,782 | $ | 5,178,186 | $ | 5,143,081 | $ | 4,705,302 | (7) | % | (4) | % | |||||||||||||||||||||||||||
Loans held for investment at fair value | $ | 262,190 | $ | 326,299 | $ | 404,119 | $ | 748,618 | $ | 925,938 | (20) | % | (72) | % | |||||||||||||||||||||||||||
Total loans and leases held for investment | $ | 4,802,105 | $ | 5,213,081 | $ | 5,582,305 | $ | 5,891,699 | $ | 5,631,240 | (8) | % | (15) | % | |||||||||||||||||||||||||||
Total assets | $ | 8,827,463 | $ | 8,472,351 | $ | 8,342,506 | $ | 8,754,018 | $ | 7,979,747 | 4 | % | 11 | % | |||||||||||||||||||||||||||
Total deposits | $ | 7,333,486 | $ | 7,000,263 | $ | 6,843,535 | $ | 7,218,854 | $ | 6,392,553 | 5 | % | 15 | % | |||||||||||||||||||||||||||
Total liabilities | $ | 7,575,641 | $ | 7,264,132 | $ | 7,136,983 | $ | 7,563,276 | $ | 6,815,453 | 4 | % | 11 | % | |||||||||||||||||||||||||||
Total equity | $ | 1,251,822 | $ | 1,208,219 | $ | 1,205,523 | $ | 1,190,742 | $ | 1,164,294 | 4 | % | 8 | % | |||||||||||||||||||||||||||
As of and for the three months ended | |||||||||||||||||||||||||||||
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
|||||||||||||||||||||||||
Asset Quality Metrics: | |||||||||||||||||||||||||||||
Allowance for loan and lease losses to total loans and leases held for investment | 6.7 | % | 6.7 | % | 6.4 | % | 6.4 | % | 6.5 | % | |||||||||||||||||||
Allowance for loan and lease losses to consumer loans and leases held for investment | 7.2 | % | 7.4 | % | 7.1 | % | 7.1 | % | 7.3 | % | |||||||||||||||||||
Allowance for loan and lease losses to commercial loans and leases held for investment | 1.8 | % | 2.0 | % | 1.9 | % | 2.0 | % | 2.0 | % | |||||||||||||||||||
Net charge-offs | $ | 82,511 | $ | 68,795 | $ | 59,884 | $ | 49,845 | $ | 37,148 | |||||||||||||||||||
Net charge-off ratio(1) |
6.6 | % | 5.1 | % | 4.4 | % | 3.8 | % | 3.0 | % |
December 31, 2023 |
December 31, 2022 |
||||||||||
Unsecured personal | $ | 3,726,830 | $ | 3,866,373 | |||||||
Residential mortgages | 183,050 | 199,601 | |||||||||
Secured consumer | 250,039 | 194,634 | |||||||||
Total consumer loans held for investment | 4,159,919 | 4,260,608 | |||||||||
Equipment finance (1) |
110,992 | 160,319 | |||||||||
Commercial real estate | 380,322 | 373,501 | |||||||||
Commercial and industrial (2) |
199,069 | 238,726 | |||||||||
Total commercial loans and leases held for investment | 690,383 | 772,546 | |||||||||
Total loans and leases held for investment at amortized cost | 4,850,302 | 5,033,154 | |||||||||
Allowance for loan and lease losses | (310,387) | (327,852) | |||||||||
Loans and leases held for investment at amortized cost, net | $ | 4,539,915 | $ | 4,705,302 | |||||||
Loans held for investment at fair value | 262,190 | 925,938 | |||||||||
Total loans and leases held for investment | $ | 4,802,105 | $ | 5,631,240 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | ||||||||||||||||||||||||||||||||||
Consumer | Commercial | Total | Consumer | Commercial | Total | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses, beginning of period | $ | 336,288 | $ | 14,207 | $ | 350,495 | $ | 341,161 | $ | 14,002 | $ | 355,163 | |||||||||||||||||||||||
Credit loss expense for loans and leases held for investment | 43,227 | (824) | 42,403 | 63,733 | 394 | 64,127 | |||||||||||||||||||||||||||||
Charge-offs | (88,904) | (1,193) | (90,097) | (73,644) | (534) | (74,178) | |||||||||||||||||||||||||||||
Recoveries | 7,450 | 136 | 7,586 | 5,038 | 345 | 5,383 | |||||||||||||||||||||||||||||
Allowance for loan and lease losses, end of period | $ | 298,061 | $ | 12,326 | $ | 310,387 | $ | 336,288 | $ | 14,207 | $ | 350,495 | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||
December 31, 2022 | |||||||||||||||||
Consumer | Commercial | Total | |||||||||||||||
Allowance for loan and lease losses, beginning of period | $ | 288,138 | $ | 15,063 | $ | 303,201 | |||||||||||
Credit loss expense for loans and leases held for investment | 61,392 | 407 | 61,799 | ||||||||||||||
Charge-offs | (38,579) | (225) | (38,804) | ||||||||||||||
Recoveries | 1,538 | 118 | 1,656 | ||||||||||||||
Allowance for loan and lease losses, end of period | $ | 312,489 | $ | 15,363 | $ | 327,852 | |||||||||||
December 31, 2023 | 30-59 Days |
60-89 Days |
90 or More Days |
Total Days Past Due | |||||||||||||||||||
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 | |||||||||||||||||||
Commercial and industrial (1) |
12,261 | 1,632 | 1,515 | 15,408 | |||||||||||||||||||
Total commercial loans and leases held for investment (1) |
$ | 13,526 | $ | 5,198 | $ | 3,133 | $ | 21,857 | |||||||||||||||
Total loans and leases held for investment at amortized cost (1) |
$ | 50,069 | $ | 35,389 | $ | 33,482 | $ | 118,940 |
December 31, 2022 | 30-59 Days |
60-89 Days |
90 or More Days |
Total Days Past Due | |||||||||||||||||||
Unsecured personal | $ | 21,016 | $ | 16,418 | $ | 16,255 | $ | 53,689 | |||||||||||||||
Residential mortgages | — | 254 | 331 | 585 | |||||||||||||||||||
Secured consumer | 1,720 | 382 | 188 | 2,290 | |||||||||||||||||||
Total consumer loans held for investment | $ | 22,736 | $ | 17,054 | $ | 16,774 | $ | 56,564 | |||||||||||||||
Equipment finance | $ | 3,172 | $ | — | $ | 859 | $ | 4,031 | |||||||||||||||
Commercial real estate | — | 102 | — | 102 | |||||||||||||||||||
Commercial and industrial (1) |
— | — | 1,643 | 1,643 | |||||||||||||||||||
Total commercial loans and leases held for investment (1) |
$ | 3,172 | $ | 102 | $ | 2,502 | $ | 5,776 | |||||||||||||||
Total loans and leases held for investment at amortized cost (1) |
$ | 25,908 | $ | 17,156 | $ | 19,276 | $ | 62,340 |
Three Months Ended | Change (%) | ||||||||||||||||||||||||||||
December 31, 2023 |
September 30, 2023 |
December 31, 2022 |
Q4 2023 vs Q3 2023 |
Q4 2023 vs Q4 2022 |
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Non-interest income: | |||||||||||||||||||||||||||||
Origination fees | $ | 76,702 | $ | 60,912 | $ | 100,692 | 26 | % | (24) | % | |||||||||||||||||||
Servicing fees | 17,450 | 32,768 | 20,169 | (47) | % | (13) | % | ||||||||||||||||||||||
Gain on sales of loans | 11,921 | 8,572 | 18,352 | 39 | % | (35) | % | ||||||||||||||||||||||
Net fair value adjustments | (53,892) | (41,366) | (15,774) | 30 | % | 242 | % | ||||||||||||||||||||||
Marketplace revenue | 52,181 | 60,886 | 123,439 | (14) | % | (58) | % | ||||||||||||||||||||||
Other non-interest income | 1,948 | 2,958 | 4,026 | (34) | % | (52) | % | ||||||||||||||||||||||
Total non-interest income | 54,129 | 63,844 | 127,465 | (15) | % | (58) | % | ||||||||||||||||||||||
Total interest income | 208,319 | 207,412 | 173,999 | — | % | 20 | % | ||||||||||||||||||||||
Total interest expense | 76,842 | 70,407 | 38,756 | 9 | % | 98 | % | ||||||||||||||||||||||
Net interest income | 131,477 | 137,005 | 135,243 | (4) | % | (3) | % | ||||||||||||||||||||||
Total net revenue | 185,606 | 200,849 | 262,708 | (8) | % | (29) | % | ||||||||||||||||||||||
Provision for credit losses | 41,907 | 64,479 | 61,512 | (35) | % | (32) | % | ||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Compensation and benefits | 58,591 | 58,497 | 87,768 | — | % | (33) | % | ||||||||||||||||||||||
Marketing | 23,465 | 19,555 | 35,139 | 20 | % | (33) | % | ||||||||||||||||||||||
Equipment and software | 13,190 | 12,631 | 13,200 | 4 | % | — | % | ||||||||||||||||||||||
Depreciation and amortization | 11,953 | 11,250 | 11,554 | 6 | % | 3 | % | ||||||||||||||||||||||
Professional services | 7,727 | 8,414 | 10,029 | (8) | % | (23) | % | ||||||||||||||||||||||
Occupancy | 3,926 | 4,612 | 4,698 | (15) | % | (16) | % | ||||||||||||||||||||||
Other non-interest expense | 11,163 | 13,076 | 17,656 | (15) | % | (37) | % | ||||||||||||||||||||||
Total non-interest expense | 130,015 | 128,035 | 180,044 | 2 | % | (28) | % | ||||||||||||||||||||||
Income before income tax benefit (expense) | 13,684 | 8,335 | 21,152 | 64 | % | (35) | % | ||||||||||||||||||||||
Income tax benefit (expense) | (3,529) | (3,327) | 2,439 | 6 | % | (245) | % | ||||||||||||||||||||||
Net income | $ | 10,155 | $ | 5,008 | $ | 23,591 | 103 | % | (57) | % | |||||||||||||||||||
Net income per share: |
|||||||||||||||||||||||||||||
Basic EPS | $ | 0.09 | $ | 0.05 | $ | 0.22 | 80 | % | (59) | % | |||||||||||||||||||
Diluted EPS | $ | 0.09 | $ | 0.05 | $ | 0.22 | 80 | % | (59) | % | |||||||||||||||||||
Weighted-average common shares – Basic | 109,948,785 | 109,071,180 | 105,650,177 | 1 | % | 4 | % | ||||||||||||||||||||||
Weighted-average common shares – Diluted | 109,949,371 | 109,073,194 | 105,984,612 | 1 | % | 4 | % |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | Change (%) | |||||||||||||||
Non-interest income: | |||||||||||||||||
Origination fees | $ | 279,146 | $ | 499,179 | (44) | % | |||||||||||
Servicing fees | 98,613 | 80,609 | 22 | % | |||||||||||||
Gain on sales of loans | 47,839 | 95,335 | (50) | % | |||||||||||||
Net fair value adjustments | (134,114) | 8,503 | N/M | ||||||||||||||
Marketplace revenue | 291,484 | 683,626 | (57) | % | |||||||||||||
Other non-interest income | 11,297 | 28,765 | (61) | % | |||||||||||||
Total non-interest income | 302,781 | 712,391 | (57) | % | |||||||||||||
Total interest income | 832,630 | 557,340 | 49 | % | |||||||||||||
Total interest expense | 270,792 | 82,515 | 228 | % | |||||||||||||
Net interest income | 561,838 | 474,825 | 18 | % | |||||||||||||
Total net revenue | 864,619 | 1,187,216 | (27) | % | |||||||||||||
Provision for credit losses | 243,565 | 267,326 | (9) | % | |||||||||||||
Non-interest expense: | |||||||||||||||||
Compensation and benefits | 261,948 | 339,397 | (23) | % | |||||||||||||
Marketing | 93,840 | 197,747 | (53) | % | |||||||||||||
Equipment and software | 53,485 | 49,198 | 9 | % | |||||||||||||
Depreciation and amortization | 47,195 | 43,831 | 8 | % | |||||||||||||
Professional services | 35,173 | 50,516 | (30) | % | |||||||||||||
Occupancy | 17,532 | 21,977 | (20) | % | |||||||||||||
Other non-interest expense | 57,264 | 64,187 | (11) | % | |||||||||||||
Total non-interest expense | 566,437 | 766,853 | (26) | % | |||||||||||||
Income before income tax benefit (expense) | 54,617 | 153,037 | (64) | % | |||||||||||||
Income tax benefit (expense) | (15,678) | 136,648 | (111) | % | |||||||||||||
Net income | $ | 38,939 | $ | 289,685 | (87) | % | |||||||||||
Net income per share: |
|||||||||||||||||
Basic EPS | $ | 0.36 | $ | 2.80 | (87) | % | |||||||||||
Diluted EPS | $ | 0.36 | $ | 2.79 | (87) | % | |||||||||||
Weighted-average common shares – Basic | 108,466,179 | 103,547,305 | 5 | % | |||||||||||||
Weighted-average common shares – Diluted | 108,468,857 | 104,001,288 | 4 | % |
Consolidated LendingClub Corporation (1) |
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Three Months Ended December 31, 2023 |
Three Months Ended September 30, 2023 |
Three Months Ended December 31, 2022 |
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Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
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Interest-earning assets (2) |
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Cash, cash equivalents, restricted cash and other | $ | 1,190,539 | $ | 16,271 | 5.47 | % | $ | 1,249,087 | $ | 16,798 | 5.38 | % | $ | 1,139,887 | $ | 10,595 | 3.72 | % | |||||||||||||||||||||||||||||||||||
Securities available for sale at fair value | 1,197,625 | 20,920 | 6.99 | % | 601,512 | 9,467 | 6.30 | % | 349,512 | 3,359 | 3.84 | % | |||||||||||||||||||||||||||||||||||||||||
Loans held for sale at fair value | 501,850 | 15,883 | 12.66 | % | 286,111 | 9,582 | 13.40 | % | 114,851 | 5,724 | 19.93 | % | |||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured personal loans | 3,890,041 | 128,190 | 13.18 | % | 4,257,360 | 142,118 | 13.35 | % | 3,825,808 | 125,872 | 13.16 | % | |||||||||||||||||||||||||||||||||||||||||
Commercial and other consumer loans | 1,126,010 | 17,033 | 6.05 | % | 1,147,130 | 16,842 | 5.87 | % | 1,164,326 | 15,197 | 5.22 | % | |||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment at amortized cost | 5,016,051 | 145,223 | 11.58 | % | 5,404,490 | 158,960 | 11.76 | % | 4,990,134 | 141,069 | 11.31 | % | |||||||||||||||||||||||||||||||||||||||||
Loans held for investment at fair value | 292,101 | 9,494 | 13.00 | % | 362,837 | 11,788 | 13.00 | % | 308,570 | 10,862 | 14.08 | % | |||||||||||||||||||||||||||||||||||||||||
Total loans and leases held for investment | 5,308,152 | 154,717 | 11.66 | % | 5,767,327 | 170,748 | 11.84 | % | 5,298,704 | 151,931 | 11.47 | % | |||||||||||||||||||||||||||||||||||||||||
Retail and certificate loans held for investment at fair value | 14,535 | 528 | 14.54 | % | 22,311 | 817 | 14.65 | % | 66,469 | 2,390 | 14.38 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 8,212,701 | 208,319 | 10.15 | % | 7,926,348 | 207,412 | 10.47 | % | 6,969,423 | 173,999 | 9.99 | % | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks and restricted cash | 63,181 | 69,442 | 64,907 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (334,711) | (354,263) | (314,861) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-interest earning assets | 659,995 | 691,641 | 613,664 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 8,601,166 | $ | 8,333,168 | $ | 7,333,133 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Checking and money market accounts | $ | 1,081,875 | $ | 9,593 | 3.52 | % | $ | 1,271,720 | $ | 9,541 | 2.98 | % | $ | 1,929,260 | $ | 7,500 | 1.54 | % | |||||||||||||||||||||||||||||||||||
Savings accounts and certificates of deposit | 5,720,058 | 66,660 | 4.62 | % | 5,357,717 | 59,968 | 4.44 | % | 3,576,205 | 28,251 | 3.13 | % | |||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 6,801,933 | 76,253 | 4.45 | % | 6,629,437 | 69,509 | 4.16 | % | 5,505,465 | 35,751 | 2.58 | % | |||||||||||||||||||||||||||||||||||||||||
Retail notes and certificates |
14,535 | 528 | 14.54 | % | 22,311 | 817 | 14.65 | % | 66,469 | 2,390 | 14.38 | % | |||||||||||||||||||||||||||||||||||||||||
Other interest-bearing liabilities | 9,645 | 61 | 2.51 | % | 13,567 | 81 | 2.42 | % | 105,834 | 615 | 2.33 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,826,113 | 76,842 | 4.47 | % | 6,665,315 | 70,407 | 4.19 | % | 5,677,768 | 38,756 | 2.71 | % | |||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 314,822 | 183,728 | 251,686 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 238,806 | 271,118 | 266,558 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 7,379,741 | $ | 7,120,161 | $ | 6,196,012 | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated LendingClub Corporation (1) |
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Three Months Ended December 31, 2023 |
Three Months Ended September 30, 2023 |
Three Months Ended December 31, 2022 |
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Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
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Total equity | $ | 1,221,425 | $ | 1,213,007 | $ | 1,137,121 | |||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 8,601,166 | $ | 8,333,168 | $ | 7,333,133 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 5.68 | % | 6.28 | % | 7.28 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income and net interest margin | $ | 131,477 | 6.40 | % | $ | 137,005 | 6.91 | % | $ | 135,243 | 7.76 | % |
December 31, 2023 |
December 31, 2022 |
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Assets | |||||||||||
Cash and due from banks | $ | 14,993 | $ | 23,125 | |||||||
Interest-bearing deposits in banks | 1,237,511 | 1,033,905 | |||||||||
Total cash and cash equivalents | 1,252,504 | 1,057,030 | |||||||||
Restricted cash | 41,644 | 67,454 | |||||||||
Securities available for sale at fair value ($1,663,990 and $399,668 at amortized cost, respectively) |
1,620,262 | 345,702 | |||||||||
Loans held for sale at fair value | 407,773 | 110,400 | |||||||||
Loans and leases held for investment | 4,850,302 | 5,033,154 | |||||||||
Allowance for loan and lease losses | (310,387) | (327,852) | |||||||||
Loans and leases held for investment, net | 4,539,915 | 4,705,302 | |||||||||
Loans held for investment at fair value | 262,190 | 925,938 | |||||||||
Retail and certificate loans held for investment at fair value | 10,488 | 55,425 | |||||||||
Property, equipment and software, net | 161,517 | 136,473 | |||||||||
Goodwill | 75,717 | 75,717 | |||||||||
Other assets | 455,453 | 500,306 | |||||||||
Total assets | $ | 8,827,463 | $ | 7,979,747 | |||||||
Liabilities and Equity | |||||||||||
Deposits: | |||||||||||
Interest-bearing | $ | 7,001,680 | $ | 6,158,560 | |||||||
Noninterest-bearing | 331,806 | 233,993 | |||||||||
Total deposits | 7,333,486 | 6,392,553 | |||||||||
Borrowings | 8,866 | 74,858 | |||||||||
Retail notes and certificates at fair value |
10,488 | 55,425 | |||||||||
Other liabilities | 222,801 | 292,617 | |||||||||
Total liabilities | 7,575,641 | 6,815,453 | |||||||||
Equity | |||||||||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively |
1,104 | 1,065 | |||||||||
Additional paid-in capital | 1,669,828 | 1,628,590 | |||||||||
Accumulated deficit | (388,806) | (427,745) | |||||||||
Accumulated other comprehensive loss | (30,304) | (37,616) | |||||||||
Total equity | 1,251,822 | 1,164,294 | |||||||||
Total liabilities and equity | $ | 8,827,463 | $ | 7,979,747 |
For the three months ended | For the year ended | ||||||||||||||||||||||||||||||||||||||||
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
December 31, 2023 |
December 31, 2022 |
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GAAP Net income | $ | 10,155 | $ | 5,008 | $ | 10,110 | $ | 13,666 | $ | 23,591 | $ | 38,939 | $ | 289,685 | |||||||||||||||||||||||||||
Less: Provision for credit losses | (41,907) | (64,479) | (66,595) | (70,584) | (61,512) | (243,565) | (267,326) | ||||||||||||||||||||||||||||||||||
Less: Income tax benefit (expense) | (3,529) | (3,327) | (4,686) | (4,136) | 2,439 | (15,678) | 136,648 | ||||||||||||||||||||||||||||||||||
Pre-provision net revenue | $ | 55,591 | $ | 72,814 | $ | 81,391 | $ | 88,386 | $ | 82,664 | $ | 298,182 | $ | 420,363 |
For the three months ended | For the year ended | ||||||||||||||||||||||||||||||||||||||||
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
December 31, 2023 |
December 31, 2022 |
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Non-interest income | $ | 54,129 | $ | 63,844 | $ | 85,818 | $ | 98,990 | $ | 127,465 | $ | 302,781 | $ | 712,391 | |||||||||||||||||||||||||||
Net interest income | 131,477 | 137,005 | 146,652 | 146,704 | 135,243 | 561,838 | 474,825 | ||||||||||||||||||||||||||||||||||
Total net revenue | 185,606 | 200,849 | 232,470 | 245,694 | 262,708 | 864,619 | 1,187,216 | ||||||||||||||||||||||||||||||||||
Non-interest expense | (130,015) | (128,035) | (151,079) | (157,308) | (180,044) | (566,437) | (766,853) | ||||||||||||||||||||||||||||||||||
Pre-provision net revenue | 55,591 | 72,814 | 81,391 | 88,386 | 82,664 | 298,182 | 420,363 | ||||||||||||||||||||||||||||||||||
Provision for credit losses | (41,907) | (64,479) | (66,595) | (70,584) | (61,512) | (243,565) | (267,326) | ||||||||||||||||||||||||||||||||||
Income before income tax benefit (expense) | 13,684 | 8,335 | 14,796 | 17,802 | 21,152 | 54,617 | 153,037 | ||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | (3,529) | (3,327) | (4,686) | (4,136) | 2,439 | (15,678) | 136,648 | ||||||||||||||||||||||||||||||||||
GAAP Net income | $ | 10,155 | $ | 5,008 | $ | 10,110 | $ | 13,666 | $ | 23,591 | $ | 38,939 | $ | 289,685 |
For the three months ended December 31, 2022 | For the year ended December 31, 2022 |
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GAAP Net income | $ | 23,591 | $ | 289,685 | ||||||||||
Less: Income tax benefit from release of tax valuation allowance | 3,180 | 143,495 | ||||||||||||
Net income excluding income tax benefit | $ | 20,411 | $ | 146,190 | ||||||||||
GAAP Diluted EPS | $ | 0.22 | $ | 2.79 | ||||||||||
(A) | Income tax benefit from release of tax valuation allowance | $ | 3,180 | $ | 143,495 | |||||||||
(B) | Weighted-average common shares – Diluted | 105,984,612 | 104,001,288 | |||||||||||
(A/B) | Diluted EPS impact of income tax benefit | $ | 0.03 | $ | 1.38 | |||||||||
Diluted EPS excluding income tax benefit | $ | 0.19 | $ | 1.41 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
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GAAP common equity | $ | 1,251,822 | $ | 1,208,219 | $ | 1,205,523 | $ | 1,190,742 | $ | 1,164,294 | |||||||||||||||||||
Less: Goodwill | (75,717) | (75,717) | (75,717) | (75,717) | (75,717) | ||||||||||||||||||||||||
Less: Intangible assets | (12,135) | (13,151) | (14,167) | (15,201) | (16,334) | ||||||||||||||||||||||||
Tangible common equity | $ | 1,163,970 | $ | 1,119,351 | $ | 1,115,639 | $ | 1,099,824 | $ | 1,072,243 | |||||||||||||||||||
Book value per common share | |||||||||||||||||||||||||||||
GAAP common equity | $ | 1,251,822 | $ | 1,208,219 | $ | 1,205,523 | $ | 1,190,742 | $ | 1,164,294 | |||||||||||||||||||
Common shares issued and outstanding | 110,410,602 | 109,648,769 | 108,694,120 | 107,460,734 | 106,546,995 | ||||||||||||||||||||||||
Book value per common share | $ | 11.34 | $ | 11.02 | $ | 11.09 | $ | 11.08 | $ | 10.93 | |||||||||||||||||||
Tangible book value per common share | |||||||||||||||||||||||||||||
Tangible common equity | $ | 1,163,970 | $ | 1,119,351 | $ | 1,115,639 | $ | 1,099,824 | $ | 1,072,243 | |||||||||||||||||||
Common shares issued and outstanding | 110,410,602 | 109,648,769 | 108,694,120 | 107,460,734 | 106,546,995 | ||||||||||||||||||||||||
Tangible book value per common share | $ | 10.54 | $ | 10.21 | $ | 10.26 | $ | 10.23 | $ | 10.06 |