EXHIBIT 99.1LendingClub Reports Third Quarter 2022 Results
Revenue Increased 24% Year Over Year to $304.9 Million
Diluted Earnings Per Share Increased 58% Year Over Year to $0.41
Total Assets Grew 43% Year Over Year to $6.8 Billion
SAN FRANCISCO – October 26, 2022 – LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the third quarter ended September 30, 2022.
“We delivered solid results as we leaned into the strategic advantages of our digital bank in the face of a less favorable economic environment. We drove growth in recurring interest income supported by strong credit performance of our retained high-quality prime loan portfolio,” said Scott Sanborn, LendingClub CEO. “As we anticipated, marketplace volumes were impacted by higher funding costs for certain loan investors, driven by rapidly increasing interest rates. Over time, as rates stabilize and we continue to reprice personal loans, we expect this impact to gradually moderate. Our digital bank and other strategic advantages position us to continue to effectively navigate the evolving economy and to capitalize on attractive growth opportunities as they emerge.”
Third Quarter 2022 Results
•Loan originations were $3.5 billion, up 14% year over year.
•Total net revenue of $304.9 million grew 24% year over year, driven by growth in net interest income.
◦Net interest income, a recurring stream of earnings for the company, increased 89% year over year to $123.7 million.
▪Total loans held for investment (excluding PPP) grew 97% to $4.4 billion from September 30, 2021, reflecting growth in personal loan originations held for investment in the quarter of $1.2 billion, or 33% of total originations.
▪Net interest margin expanded to 8.3% from 6.3% a year earlier, primarily reflecting a greater mix of personal loans which generate a higher yield than the rest of the loans held for investment.
◦Marketplace revenue of $173.8 million remained flat year over year, roughly in line with marketplace sales as the company retained a higher percentage of loan originations to drive growth in recurring revenue.
•Deposits of $5.1 billion were up 80% from September 30, 2021, primarily reflecting growth in online savings deposits.
•Credit quality of the company’s held-for-investment loan portfolio remained strong, with delinquency rates gradually normalizing as the portfolio seasons. The strong credit performance of the held-for-investment portfolio reflects the high quality credit profile of our borrowers with an average FICO of 730.
•Provision for credit losses of $82.7 million primarily reflects $1.2 billion of quarterly loan originations held for investment and loan portfolio growth of 97% year over year.
•The efficiency ratio improved to 61% from 73% in the third quarter of 2021 due to improved marketing efficiency, prudent management of non-marketing expenses and strong growth in net interest income.
•Net income of $43.2 million increased $16.0 million year over year. Net income for the third quarter of 2022 included an income tax benefit of $7.2 million. The earnings from the tax benefit enabled higher loan retention.
•Diluted earnings per share of $0.41 grew 58% year over year. The improvement from a year earlier primarily reflected revenue growth and improved operating efficiency, as well as a $0.05 per share benefit from the reversal of the deferred tax asset valuation allowance.
•Total equity of $1.1 billion was up $316.6 million, or 39%, from September 30, 2021, primarily reflecting net income generated over the period and the release of the deferred tax asset valuation allowance.
•Book value per common share of $10.67 increased 32% from September 30, 2021. Tangible book value per common share of $9.78 increased 38% from September 30, 2021.
•Substantial capital with a consolidated Tier 1 leverage ratio of 15.7% and consolidated Common Equity Tier 1 capital ratio of 18.3%.
•Pre-tax, pre-provision income of $118.7 million increased 76% year over year, driven by revenue growth and improved operating efficiency.
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| Three Months Ended | | |
| ($ in millions, except per share amounts) | September 30,
2022 | | June 30,
2022 | | September 30,
2021 | | | | |
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| Total net revenue | $ | 304.9 | | | $ | 330.1 | | | $ | 246.2 | | | | | |
| Non-interest expense | 186.2 | | | 209.4 | | | 178.8 | | | | | |
| Pre-tax, pre-provision income | 118.7 | | | 120.7 | | | 67.4 | | | | | |
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| Provision for credit losses | 82.7 | | | 70.6 | | | 37.5 | | | | | |
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| Income before income tax benefit (expense) | 36.0 | | | 50.1 | | | 29.9 | | | | | |
| Income tax benefit (expense) | 7.2 | | | 132.0 | | | (2.7) | | | | | |
| Net income | $ | 43.2 | | | $ | 182.1 | | | $ | 27.2 | | | | | |
| Diluted EPS | $ | 0.41 | | | $ | 1.73 | | | $ | 0.26 | | | | | |
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| Income tax benefit from release of tax valuation allowance | $ | 5.0 | | | $ | 135.3 | | | $ | — | | | | | |
Net income excluding income tax benefit (1) | $ | 38.2 | | | $ | 46.8 | | | $ | 27.2 | | | | | |
Diluted EPS excluding income tax benefit (1) | $ | 0.36 | | | $ | 0.45 | | | $ | 0.26 | | | | | |
(1) Third and second quarters of 2022 include income tax benefit of $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance. See page 3 of this release for additional information on our use of non-GAAP financial measures.
For a calculation of Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share, refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables at the end of this release.
Financial Outlook
The company provided full year net revenue and net income guidance for 2022.
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| Fourth Quarter
2022 | Full Year
2022 | |
| Total net revenue | $255M to $265M | $1,180M to $1,190M | |
| Net income | $15M to $25M | $280M to $290M | |
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $80 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4 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 third quarter 2022 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, October 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 (844) 200-6205, or outside the U.S. +1 (929) 526-1599, with Access Code 659586, 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 November 2, 2022, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 037801. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), Twitter handle (@LendingClub) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.
Contacts
For Investors:
IR@lendingclub.com
Media Contact:
Press@lendingclub.com
Non-GAAP Financial Measures
To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share. Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.
We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.
We believe Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are important measures because they reflect the financial performance of our business operations. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in the third and second quarters of 2022. Diluted EPS Excluding Income Tax Benefit is a non-GAAP financial measure calculated by dividing Net Income Excluding Income Tax Benefit by the weighted-average diluted common shares outstanding.
We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company’s use of equity. TBV Per Common Share is a non-GAAP financial measure representing common equity reduced by goodwill and intangible assets, divided by ending common shares issued and outstanding.
For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on page 16 of this release.
Safe Harbor Statement
Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “will,” “would” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing customers; 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 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.
*****
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
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| As of and for the three months ended | | % Change |
| September 30,
2022 | | June 30,
2022 | | March 31,
2022 | | December 31,
2021 | | September 30,
2021 | | Q/Q | | Y/Y |
| Operating Highlights: |
| Non-interest income | $ | 181,237 | | | $ | 213,832 | | | $ | 189,857 | | | $ | 179,111 | | | $ | 180,878 | | | (15) | % | | — | % |
| Net interest income | 123,676 | | | 116,226 | | | 99,680 | | | 83,132 | | | 65,288 | | | 6 | % | | 89 | % |
| Total net revenue | 304,913 | | | 330,058 | | | 289,537 | | | 262,243 | | | 246,166 | | | (8) | % | | 24 | % |
| Non-interest expense | 186,219 | | | 209,386 | | | 191,204 | | | 188,220 | | | 178,775 | | | (11) | % | | 4 | % |
| Pre-tax, pre-provision income | 118,694 | | | 120,672 | | | 98,333 | | | 74,023 | | | 67,391 | | | (2) | % | | 76 | % |
| Provision for credit losses | 82,739 | | | 70,566 | | | 52,509 | | | 45,149 | | | 37,524 | | | 17 | % | | 120 | % |
| Income before income tax benefit (expense) | 35,955 | | | 50,106 | | | 45,824 | | | 28,874 | | | 29,867 | | | (28) | % | | 20 | % |
| Income tax benefit (expense) | 7,243 | | | 131,954 | | | (4,988) | | | 234 | | | (2,682) | | | N/M | | N/M |
| Net income | 43,198 | | | 182,060 | | | 40,836 | | | 29,108 | | | 27,185 | | | (76) | % | | 59 | % |
| Income tax benefit from release of tax valuation allowance | 5,015 | | | 135,300 | | | — | | | — | | | — | | | N/M | | N/M |
Net income excluding income tax benefit(1)(2) | $ | 38,183 | | | $ | 46,760 | | | $ | 40,836 | | | $ | 29,108 | | | $ | 27,185 | | | (18) | % | | 40 | % |
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| Basic EPS – common stockholders | $ | 0.41 | | | $ | 1.77 | | | $ | 0.40 | | | $ | 0.29 | | | $ | 0.27 | | | (77) | % | | 52 | % |
| Diluted EPS – common stockholders | $ | 0.41 | | | $ | 1.73 | | | $ | 0.39 | | | $ | 0.27 | | | $ | 0.26 | | | (76) | % | | 58 | % |
Diluted EPS excluding income tax benefit(1)(2) | $ | 0.36 | | | $ | 0.45 | | | $ | 0.39 | | | $ | 0.27 | | | $ | 0.26 | | | (20) | % | | 38 | % |
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| LendingClub Corporation Performance Metrics: |
| Net interest margin | 8.3 | % | | 8.5 | % | | 8.3 | % | | 7.6 | % | | 6.3 | % | | | | |
Efficiency ratio(3) | 61.1 | % | | 63.4 | % | | 66.0 | % | | 71.8 | % | | 72.6 | % | | | | |
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| Return on average equity (ROE) | 14.2 | % | | 33.8 | % | | 18.7 | % | | 14.1 | % | | 13.8 | % | | | | |
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| Return on average total assets (ROA) | 2.5 | % | | 5.5 | % | | 3.1 | % | | 2.4 | % | | 2.4 | % | | | | |
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| Marketing expense as a % of loan originations | 1.3 | % | | 1.6 | % | | 1.7 | % | | 1.7 | % | | 1.6 | % | | | | |
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| LendingClub Corporation Capital Metrics: |
| Common Equity Tier 1 Capital Ratio | 18.3 | % | | 20.0 | % | | 20.6 | % | | 21.3 | % | | 22.8 | % | | | | |
| Tier 1 Leverage Ratio | 15.7 | % | | 16.2 | % | | 15.6 | % | | 16.5 | % | | 16.2 | % | | | | |
| Book Value per Common Share | $ | 10.67 | | | $ | 10.41 | | | $ | 8.68 | | | $ | 8.41 | | | $ | 8.07 | | | 2 | % | | 32 | % |
Tangible Book Value per Common Share(2) | $ | 9.78 | | | $ | 9.50 | | | $ | 7.75 | | | $ | 7.46 | | | $ | 7.08 | | | 3 | % | | 38 | % |
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Loan originations (in millions)(4): | | | | | | | | | | | | | |
| Total loan originations | $ | 3,539 | | | $ | 3,840 | | | $ | 3,217 | | | $ | 3,069 | | | $ | 3,107 | | | (8) | % | | 14 | % |
| Marketplace loans | $ | 2,386 | | | $ | 2,819 | | | $ | 2,360 | | | $ | 2,308 | | | $ | 2,471 | | | (15) | % | | (3) | % |
| Loan originations held for investment | $ | 1,153 | | | $ | 1,021 | | | $ | 856 | | | $ | 761 | | | $ | 636 | | | 13 | % | | 81 | % |
| Loan originations held for investment as a % of total loan originations | 33 | % | | 27 | % | | 27 | % | | 25 | % | | 20 | % | | | | |
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Servicing portfolio AUM (in millions)(5): |
| Total servicing portfolio | $ | 15,929 | | $ | 14,783 | | $ | 13,341 | | $ | 12,463 | | $ | 11,592 | | 8 | % | | 37 | % |
| Loans serviced for others | $ | 11,807 | | $ | 11,382 | | $ | 10,475 | | $ | 10,124 | | $ | 9,744 | | 4 | % | | 21 | % |
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| Balance Sheet Data: |
| Loans and leases held for investment, net, excluding PPP loans | $ | 4,414,347 | | | $ | 3,692,667 | | | $ | 3,049,325 | | | $ | 2,486,440 | | | $ | 2,235,698 | | | 20 | % | | 97 | % |
| PPP loans | $ | 89,379 | | | $ | 118,794 | | | $ | 184,986 | | | $ | 268,297 | | | $ | 367,558 | | | (25) | % | | (76) | % |
| Total loans and leases held for investment, net | $ | 4,503,726 | | | $ | 3,811,461 | | | $ | 3,234,311 | | | $ | 2,754,737 | | | $ | 2,603,256 | | | 18 | % | | 73 | % |
| Total assets | $ | 6,775,074 | | | $ | 6,186,765 | | | $ | 5,574,425 | | | $ | 4,900,319 | | | $ | 4,750,760 | | | 10 | % | | 43 | % |
| Total deposits | $ | 5,123,506 | | | $ | 4,527,672 | | | $ | 3,977,477 | | | $ | 3,135,788 | | | $ | 2,838,719 | | | 13 | % | | 80 | % |
| Total liabilities | $ | 5,653,664 | | | $ | 5,107,648 | | | $ | 4,686,991 | | | $ | 4,050,077 | | | $ | 3,945,970 | | | 11 | % | | 43 | % |
| Total equity | $ | 1,121,410 | | | $ | 1,079,117 | | | $ | 887,434 | | | $ | 850,242 | | | $ | 804,790 | | | 4 | % | | 39 | % |
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
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| As of and for the three months ended | | % Change |
| September 30,
2022 | | June 30,
2022 | | March 31,
2022 | | December 31,
2021 | | September 30,
2021 | | Q/Q | | Y/Y |
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| Allowance Ratios: |
| Allowance for loan and lease losses to total loans and leases held for investment | 6.3 | % | | 6.0 | % | | 5.5 | % | | 5.0 | % | | 3.9 | % | | | | |
| Allowance for loan and lease losses to total loans and leases held for investment, excluding PPP loans | 6.4 | % | | 6.2 | % | | 5.8 | % | | 5.5 | % | | 4.5 | % | | | | |
| Allowance for loan and lease losses to consumer loans and leases held for investment | 7.2 | % | | 6.9 | % | | 6.6 | % | | 6.4 | % | | 5.2 | % | | | | |
| Allowance for loan and lease losses to commercial loans and leases held for investment | 1.9 | % | | 2.0 | % | | 1.8 | % | | 1.8 | % | | 1.6 | % | | | | |
| Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans | 2.2 | % | | 2.3 | % | | 2.3 | % | | 2.6 | % | | 2.6 | % | | | | |
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N/M – Not meaningful
N/A – Not applicable
(1) Excludes third and second quarter 2022 income tax benefit of $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance.
(2) Represents a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Financial Measures.”
(3) Calculated as the ratio of non-interest expense to total net revenue.
(4) Includes unsecured personal loans, auto loans, and education and patient finance loans only.
(5) Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and held for investment by the company.
LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
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| September 30,
2022 | | December 31, 2021 | | |
| Unsecured personal | $ | 3,642,254 | | | $ | 1,804,578 | | | |
| Residential mortgages | 197,776 | | | 151,362 | | | |
| Secured consumer | 180,768 | | | 65,976 | | | |
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| Total consumer loans held for investment | 4,020,798 | | | 2,021,916 | | | |
Equipment finance (1) | 167,447 | | | 149,155 | | | |
| Commercial real estate | 372,406 | | | 310,399 | | | |
Commercial and industrial (2) | 246,276 | | | 417,656 | | | |
| Total commercial loans and leases held for investment | 786,129 | | | 877,210 | | | |
| Total loans and leases held for investment | 4,806,927 | | | 2,899,126 | | | |
| Allowance for loan and lease losses | (303,201) | | | (144,389) | | | |
| Loans and leases held for investment, net | $ | 4,503,726 | | | $ | 2,754,737 | | | |
(1) Comprised of sales-type leases for equipment.
(2) Includes $89.4 million and $268.3 million of Paycheck Protection Program (PPP) loans as of September 30, 2022 and December 31, 2021, respectively. Such loans are guaranteed by the Small Business Association and, therefore, the Company determined no allowance for expected credit losses is required on these loans.
LENDINGCLUB CORPORATION
ALLOWANCE FOR LOAN AND LEASE LOSSES
(In thousands)
(Unaudited)
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| Three Months Ended |
| September 30, 2022 | | June 30, 2022 |
| Consumer | | Commercial | | Total | | Consumer | | Commercial | | Total |
| Allowance for loan and lease losses, beginning of period | $ | 228,184 | | | $ | 15,076 | | | $ | 243,260 | | | $ | 173,857 | | | $ | 14,128 | | | $ | 187,985 | |
| Credit loss expense for loans and leases held for investment | 81,935 | | | 664 | | | 82,599 | | | 68,314 | | | 1,739 | | | 70,053 | |
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| Charge-offs | (22,944) | | | (784) | | | (23,728) | | | (14,707) | | | (1,145) | | | (15,852) | |
| Recoveries | 963 | | | 107 | | | 1,070 | | | 720 | | | 354 | | | 1,074 | |
| Allowance for loan and lease losses, end of period | $ | 288,138 | | | $ | 15,063 | | | $ | 303,201 | | | $ | 228,184 | | | $ | 15,076 | | | $ | 243,260 | |
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| Three Months Ended |
| September 30, 2021 |
| Consumer | | Commercial | | Total |
| Allowance for loan and lease losses, beginning of period | $ | 54,058 | | | $ | 17,023 | | | $ | 71,081 | |
| Credit loss expense for loans and leases held for investment | 37,695 | | | (562) | | | 37,133 | |
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| Charge-offs | (3,142) | | | (1,194) | | | (4,336) | |
| Recoveries | 20 | | | 838 | | | 858 | |
| Allowance for loan and lease losses, end of period | $ | 88,631 | | | $ | 16,105 | | | $ | 104,736 | |
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LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
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| Three Months Ended | | Change (%) | | |
| | September 30,
2022 | | June 30,
2022 | | September 30,
2021 | | Q3 2022
vs
Q3 2021 | | Q3 2022
vs
Q2 2022 | | | | |
| Non-interest income: | | | | | | | | | | | | | |
Marketplace revenue (1) | $ | 173,837 | | | $ | 206,384 | | | $ | 174,556 | | | — | % | | (16) | % | | | | |
| Other non-interest income | 7,400 | | | 7,448 | | | 6,322 | | | 17 | % | | (1) | % | | | | |
| Total non-interest income | 181,237 | | | 213,832 | | | 180,878 | | | — | % | | (15) | % | | | | |
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| Interest income: | | | | | | | | | | | | | |
| Interest on loans held for sale | 5,879 | | | 7,130 | | | 8,536 | | | (31) | % | | (18) | % | | | | |
| Interest and fees on loans and leases held for investment | 124,028 | | | 108,911 | | | 57,644 | | | 115 | % | | 14 | % | | | | |
| Interest on retail and certificate loans held for investment at fair value | 3,685 | | | 5,091 | | | 12,172 | | | (70) | % | | (28) | % | | | | |
| Interest on other loans held for investment at fair value | 791 | | | 631 | | | 973 | | | (19) | % | | 25 | % | | | | |
| Interest on securities available for sale | 3,820 | | | 4,426 | | | 3,180 | | | 20 | % | | (14) | % | | | | |
| Other interest income | 5,017 | | | 2,279 | | | 355 | | | N/M | | 120 | % | | | | |
| Total interest income | 143,220 | | | 128,468 | | | 82,860 | | | 73 | % | | 11 | % | | | | |
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| Interest expense: | | | | | | | | | | | | | |
| Interest on deposits | 15,184 | | | 6,078 | | | 1,899 | | | 700 | % | | 150 | % | | | | |
| Interest on short-term borrowings | 87 | | | 417 | | | 849 | | | (90) | % | | (79) | % | | | | |
| Interest on retail notes, certificates and secured borrowings | 3,685 | | | 5,091 | | | 12,172 | | | (70) | % | | (28) | % | | | | |
| Interest on Structured Program borrowings | 225 | | | 360 | | | 2,120 | | | (89) | % | | (38) | % | | | | |
| Interest on other long-term debt | 363 | | | 296 | | | 532 | | | (32) | % | | 23 | % | | | | |
| Total interest expense | 19,544 | | | 12,242 | | | 17,572 | | | 11 | % | | 60 | % | | | | |
| | | | | | | | | | | | | |
| Net interest income | 123,676 | | | 116,226 | | | 65,288 | | | 89 | % | | 6 | % | | | | |
| | | | | | | | | | | | | |
| Total net revenue | 304,913 | | | 330,058 | | | 246,166 | | | 24 | % | | (8) | % | | | | |
| | | | | | | | | | | | | |
| Provision for credit losses | 82,739 | | | 70,566 | | | 37,524 | | | 120 | % | | 17 | % | | | | |
| | | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | | | | |
| Compensation and benefits | 84,916 | | | 85,103 | | | 73,304 | | | 16 | % | | — | % | | | | |
| Marketing | 46,031 | | | 61,497 | | | 50,782 | | | (9) | % | | (25) | % | | | | |
| Equipment and software | 12,491 | | | 12,461 | | | 10,297 | | | 21 | % | | — | % | | | | |
| Occupancy | 5,051 | | | 6,209 | | | 6,486 | | | (22) | % | | (19) | % | | | | |
| Depreciation and amortization | 10,681 | | | 10,557 | | | 10,549 | | | 1 | % | | 1 | % | | | | |
| Professional services | 11,943 | | | 16,138 | | | 11,750 | | | 2 | % | | (26) | % | | | | |
| Other non-interest expense | 15,106 | | | 17,421 | | | 15,607 | | | (3) | % | | (13) | % | | | | |
| Total non-interest expense | 186,219 | | | 209,386 | | | 178,775 | | | 4 | % | | (11) | % | | | | |
| | | | | | | | | | | | | |
| Income before income tax benefit (expense) | 35,955 | | | 50,106 | | | 29,867 | | | 20 | % | | (28) | % | | | | |
| Income tax benefit (expense) | 7,243 | | | 131,954 | | | (2,682) | | | N/M | | N/M | | | | |
| Net income | $ | 43,198 | | | $ | 182,060 | | | $ | 27,185 | | | 59 | % | | (76) | % | | | | |
| | | | | | | | | | | | | |
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(In thousands, except share and per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Change (%) | | |
| | September 30,
2022 | | June 30,
2022 | | September 30,
2021 | | Q3 2022
vs
Q3 2021 | | Q3 2022
vs
Q2 2022 | | | | |
Net income per share: | | | | | | | | | | | | | |
| Basic EPS – common stockholders | $ | 0.41 | | | $ | 1.77 | | | $ | 0.27 | | | 52 | % | | (77) | % | | | | |
| Diluted EPS – common stockholders | $ | 0.41 | | | $ | 1.73 | | | $ | 0.26 | | | 58 | % | | (76) | % | | | | |
| Weighted-average common shares – Basic | 104,215,594 | | | 102,776,867 | | | 99,073,507 | | | 5 | % | | 1 | % | | | | |
| Weighted-average common shares – Diluted | 105,853,938 | | | 105,042,626 | | | 106,108,662 | | | — | % | | 1 | % | | | | |
N/M – Not meaningful
(1) Marketplace revenue consists of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Change (%) |
| September 30,
2022 | | June 30,
2022 | | September 30,
2021 | | Q3 2022
vs
Q3 2021 | | Q3 2022
vs
Q2 2022 |
| Origination fees | $ | 127,142 | | | $ | 149,252 | | | $ | 129,125 | | | (2) | % | | (15) | % |
| Servicing fees | 23,760 | | | 18,166 | | | 20,819 | | | 14 | % | | 31 | % |
| Gain on sales of loans | 23,554 | | | 29,319 | | | 21,907 | | | 8 | % | | (20) | % |
| Net fair value adjustments | (619) | | | 9,647 | | | 2,705 | | | (123) | % | | (106) | % |
| Total marketplace revenue | $ | 173,837 | | | $ | 206,384 | | | $ | 174,556 | | | — | % | | (16) | % |
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT
(In Thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| LendingClub
Bank | | LendingClub
Corporation
(Parent only) | | Intercompany
Eliminations | | Total | | | | |
| | September 30,
2022 | | December 31, 2021 | | September 30,
2022 | | December 31, 2021 | | September 30,
2022 | | December 31, 2021 | | September 30,
2022 | | December 31, 2021 | | | | |
| Assets | | | | | | | | | | | | | | | | | | | |
| Total cash and cash equivalents | $ | 896,519 | | | $ | 659,919 | | | $ | 109,200 | | | $ | 88,268 | | | $ | (52,878) | | | $ | (61,061) | | | $ | 952,841 | | | $ | 687,126 | | | | | |
| Restricted cash | — | | | — | | | 78,746 | | | 76,540 | | | (12,461) | | | (80) | | | 66,285 | | | 76,460 | | | | | |
| Securities available for sale at fair value | 338,096 | | | 205,730 | | | 21,061 | | | 57,800 | | | — | | | — | | | 359,157 | | | 263,530 | | | | | |
| Loans held for sale | 90,058 | | | 335,449 | | | — | | | 55,799 | | | — | | | — | | | 90,058 | | | 391,248 | | | | | |
| Loans and leases held for investment, net | 4,503,726 | | | 2,754,737 | | | — | | | — | | | — | | | — | | | 4,503,726 | | | 2,754,737 | | | | | |
| Retail and certificate loans held for investment at fair value | — | | | — | | | 87,144 | | | 229,719 | | | — | | | — | | | 87,144 | | | 229,719 | | | | | |
| Other loans held for investment at fair value | — | | | — | | | 15,057 | | | 21,240 | | | — | | | — | | | 15,057 | | | 21,240 | | | | | |
| Property, equipment and software, net | 89,576 | | | 36,424 | | | 40,381 | | | 61,572 | | | — | | | — | | | 129,957 | | | 97,996 | | | | | |
| Investment in subsidiary | — | | | — | | | 671,574 | | | 557,577 | | | (671,574) | | | (557,577) | | | — | | | — | | | | | |
| Goodwill | 75,717 | | | 75,717 | | | — | | | — | | | — | | | — | | | 75,717 | | | 75,717 | | | | | |
| Other assets | 305,456 | | | 254,075 | | | 207,556 | | | 168,042 | | | (17,880) | | | (119,571) | | | 495,132 | | | 302,546 | | | | | |
| Total assets | 6,299,148 | | | 4,322,051 | | | 1,230,719 | | | 1,316,557 | | | (754,793) | | | (738,289) | | | 6,775,074 | | | 4,900,319 | | | | | |
| Liabilities and Equity | | | | | | | | | | | | | | | | | | | |
| Total deposits | 5,188,845 | | | 3,196,929 | | | — | | | — | | | (65,339) | | | (61,141) | | | 5,123,506 | | | 3,135,788 | | | | | |
| Short-term borrowings | 165 | | | 165 | | | 4,638 | | | 27,615 | | | — | | | — | | | 4,803 | | | 27,780 | | | | | |
| Advances from PPPLF | 91,671 | | | 271,933 | | | — | | | — | | | — | | | — | | | 91,671 | | | 271,933 | | | | | |
| Retail notes, certificates and secured borrowings at fair value | — | | | — | | | 87,144 | | | 229,719 | | | — | | | — | | | 87,144 | | | 229,719 | | | | | |
| Payable on Structured Program borrowings | — | | | — | | | 11,185 | | | 65,451 | | | — | | | — | | | 11,185 | | | 65,451 | | | | | |
| Other long-term debt | — | | | — | | | 15,300 | | | 15,455 | | | — | | | — | | | 15,300 | | | 15,455 | | | | | |
| Other liabilities | 205,814 | | | 218,775 | | | 132,121 | | | 150,727 | | | (17,880) | | | (65,551) | | | 320,055 | | | 303,951 | | | | | |
| Total liabilities | 5,486,495 | | | 3,687,802 | | | 250,388 | | | 488,967 | | | (83,219) | | | (126,692) | | | 5,653,664 | | | 4,050,077 | | | | | |
| Total equity | 812,653 | | | 634,249 | | | 980,331 | | | 827,590 | | | (671,574) | | | (611,597) | | | 1,121,410 | | | 850,242 | | | | | |
| Total liabilities and equity | $ | 6,299,148 | | | $ | 4,322,051 | | | $ | 1,230,719 | | | $ | 1,316,557 | | | $ | (754,793) | | | $ | (738,289) | | | $ | 6,775,074 | | | $ | 4,900,319 | | | | | |
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME BY SEGMENT
(In thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2022 | | | | |
| LendingClub
Bank | | LendingClub
Corporation
(Parent only) | | | Intercompany
Eliminations | | Total | | | | |
| Non-interest income: | | | | | | | | | | | | |
| Marketplace revenue | $ | 153,504 | | | $ | 9,015 | | | | $ | 11,318 | | | $ | 173,837 | | | | | |
| Other non-interest income | 25,240 | | | 4,794 | | | | (22,634) | | | 7,400 | | | | | |
| Total non-interest income | 178,744 | | | 13,809 | | | | (11,316) | | | 181,237 | | | | | |
| | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | |
| Interest income | 137,142 | | | 6,078 | | | | — | | | 143,220 | | | | | |
| Interest expense | (15,277) | | | (4,267) | | | | — | | | (19,544) | | | | | |
| Net interest income | 121,865 | | | 1,811 | | | | — | | | 123,676 | | | | | |
| | | | | | | | | | | | |
| Total net revenue | 300,609 | | | 15,620 | | | | (11,316) | | | 304,913 | | | | | |
| | | | | | | | | | | | |
| Provision for credit losses | (82,739) | | | — | | | | — | | | (82,739) | | | | | |
| Non-interest expense | (177,714) | | | (19,821) | | | | 11,316 | | | (186,219) | | | | | |
| Income (Loss) before income tax benefit (expense) | 40,156 | | | (4,201) | | | | — | | | 35,955 | | | | | |
| Income tax benefit (expense) | (9,440) | | | 16,683 | | | | — | | | 7,243 | | | | | |
| Net income | $ | 30,716 | | | $ | 12,482 | | | | $ | — | | | $ | 43,198 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2022 | | | | |
| LendingClub
Bank | | LendingClub
Corporation
(Parent only) | | | Intercompany
Eliminations | | Total | | | | |
| Non-interest income: | | | | | | | | | | | | |
| Marketplace revenue | $ | 191,087 | | | $ | 11,167 | | | | $ | 4,130 | | | $ | 206,384 | | | | | |
| Other non-interest income | 20,041 | | | 3,914 | | | | (16,507) | | | 7,448 | | | | | |
| Total non-interest income | 211,128 | | | 15,081 | | | | (12,377) | | | 213,832 | | | | | |
| | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | |
| Interest income | 120,152 | | | 8,316 | | | | — | | | 128,468 | | | | | |
| Interest expense | (6,213) | | | (6,029) | | | | — | | | (12,242) | | | | | |
| Net interest income | 113,939 | | | 2,287 | | | | — | | | 116,226 | | | | | |
| | | | | | | | | | | | |
| Total net revenue | 325,067 | | | 17,368 | | | | (12,377) | | | 330,058 | | | | | |
| | | | | | | | | | | | |
| Provision for credit losses | (70,566) | | | — | | | | — | | | (70,566) | | | | | |
| Non-interest expense | (196,636) | | | (25,127) | | | | 12,377 | | | (209,386) | | | | | |
| Income (Loss) before income tax benefit (expense) | 57,865 | | | (7,759) | | | | — | | | 50,106 | | | | | |
| Income tax benefit (expense) | (17,318) | | | 85,864 | | | | 63,408 | | | 131,954 | | | | | |
| Net income | $ | 40,547 | | | $ | 78,105 | | | | $ | 63,408 | | | $ | 182,060 | | | | | |
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME BY SEGMENT (Continued)
(In thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 | | | | | |
| | | | | | | | | | | | |
| (Provision for) reversal of credit losses | (38,019) | | | 495 | | | | — | | | (37,524) | | | | | |
| Non-interest expense | (161,101) | | | (40,885) | | | | 23,211 | | | (178,775) | | | | | |
| Income (Loss) before income tax benefit (expense) | 39,718 | | | (9,851) | | | | — | | | 29,867 | | | | | |
| Income tax benefit (expense) | (4,670) | | | 12,607 | | | | (10,619) | | | (2,682) | | | | | |
| Net income | $ | 35,048 | | | $ | 2,756 | | | | $ | (10,619) | | | $ | 27,185 | | | | | |
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated LendingClub Corporation (1) |
| Three Months Ended
September 30, 2022 | | Three Months Ended
June 30, 2022 | | Three Months Ended
September 30, 2021 |
| Average
Balance | | Interest Income/
Expense | | Average Yield/
Rate | | Average
Balance | | Interest Income/
Expense | | Average Yield/
Rate | | Average
Balance | | Interest Income/
Expense | | Average Yield/
Rate |
Interest-earning assets (2) | | | | | | | | | | | | | | | | | |
| Cash, cash equivalents, restricted cash and other | $ | 893,655 | | | $ | 5,017 | | | 2.25 | % | | $ | 1,023,192 | | | $ | 2,279 | | | 0.89 | % | | $ | 778,667 | | | $ | 355 | | | 0.18 | % |
| Securities available for sale at fair value | 396,556 | | | 3,820 | | | 3.85 | % | | 409,327 | | | 4,426 | | | 4.32 | % | | 266,686 | | | 3,180 | | | 4.77 | % |
| Loans held for sale | 126,487 | | | 5,879 | | | 18.59 | % | | 156,503 | | | 7,130 | | | 18.22 | % | | 226,422 | | | 8,536 | | | 15.08 | % |
| Loans and leases held for investment: | | | | | | | | | | | | | | | | | |
| Unsecured personal loans | 3,268,649 | | | 110,446 | | | 13.52 | % | | 2,692,148 | | | 95,529 | | | 14.19 | % | | 991,297 | | | 39,532 | | | 15.95 | % |
| Secured consumer loans | 337,191 | | | 3,039 | | | 3.60 | % | | 268,091 | | | 2,351 | | | 3.51 | % | | 464,194 | | | 4,688 | | | 4.04 | % |
| Commercial loans and leases | 692,783 | | | 9,262 | | | 5.35 | % | | 644,002 | | | 8,732 | | | 5.42 | % | | 616,823 | | | 7,887 | | | 5.11 | % |
| PPP loans | 105,500 | | | 1,281 | | | 4.86 | % | | 149,454 | | | 2,299 | | | 6.15 | % | | 436,785 | | | 5,537 | | | 5.07 | % |
| Loans and leases held for investment | 4,404,123 | | | 124,028 | | | 11.26 | % | | 3,753,695 | | | 108,911 | | | 11.61 | % | | 2,509,099 | | | 57,644 | | | 9.19 | % |
| Retail and certificate loans held for investment at fair value | 104,010 | | | 3,685 | | | 14.17 | % | | 144,613 | | | 5,091 | | | 14.08 | % | | 344,205 | | | 12,172 | | | 14.15 | % |
| Other loans held for investment at fair value | 17,763 | | | 791 | | | 17.83 | % | | 16,991 | | | 631 | | | 14.85 | % | | 30,981 | | | 973 | | | 12.58 | % |
| Total interest-earning assets | 5,942,594 | | | 143,220 | | | 9.64 | % | | 5,504,321 | | | 128,468 | | | 9.34 | % | | 4,156,060 | | | 82,860 | | | 7.97 | % |
| | | | | | | | | | | | | | | | | |
| Cash and due from banks and restricted cash | 58,411 | | | | | | | 75,517 | | | | | | | 96,733 | | | | | |
| Allowance for loan and lease losses | (254,849) | | | | | | | (202,904) | | | | | | | (86,686) | | | | | |
| Other non-interest earning assets | 597,169 | | | | | | | 490,412 | | | | | | | 449,964 | | | | | |
| Total assets | $ | 6,343,325 | | | | | | | $ | 5,867,346 | | | | | | | $ | 4,616,071 | | | | | |
| | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | |
| Checking and money market accounts | $ | 2,192,904 | | | $ | 4,575 | | | 0.83 | % | | $ | 2,463,710 | | | $ | 2,664 | | | 0.43 | % | | $ | 2,221,365 | | | $ | 1,707 | | | 0.30 | % |
| Savings accounts and certificates of deposit | 2,260,170 | | | 10,609 | | | 1.86 | % | | 1,555,607 | | | 3,414 | | | 0.88 | % | | 307,807 | | | 192 | | | 0.25 | % |
| Interest-bearing deposits | 4,453,074 | | | 15,184 | | | 1.35 | % | | 4,019,317 | | | 6,078 | | | 0.61 | % | | 2,529,172 | | | 1,899 | | | 0.30 | % |
| Short-term borrowings | 6,848 | | | 87 | | | 5.09 | % | | 10,874 | | | 417 | | | 15.35 | % | | 57,224 | | | 849 | | | 5.93 | % |
| Advances from PPPLF | 104,897 | | | 93 | | | 0.36 | % | | 151,278 | | | 135 | | | 0.36 | % | | 416,748 | | | 371 | | | 0.36 | % |
| Retail notes, certificates and secured borrowings | 104,010 | | | 3,685 | | | 14.17 | % | | 144,613 | | | 5,091 | | | 14.08 | % | | 344,087 | | | 12,172 | | | 14.15 | % |
| Structured Program borrowings | 13,859 | | | 225 | | | 6.50 | % | | 18,439 | | | 360 | | | 7.81 | % | | 100,178 | | | 2,120 | | | 8.46 | % |
| Other long-term debt | 15,300 | | | 270 | | | 7.04 | % | | 15,357 | | | 161 | | | 4.20 | % | | 15,606 | | | 161 | | | 4.13 | % |
| Total interest-bearing liabilities | 4,697,988 | | | 19,544 | | | 1.65 | % | | 4,359,878 | | | 12,242 | | | 1.12 | % | | 3,463,015 | | | 17,572 | | | 2.03 | % |
| | | | | | | | | | | | | | | | | |
LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated LendingClub Corporation (1) |
| Three Months Ended
September 30, 2022 | | Three Months Ended
June 30, 2022 | | Three Months Ended
September 30, 2021 |
| Average
Balance | | Interest Income/
Expense | | Average Yield/
Rate | | Average
Balance | | Interest Income/
Expense | | Average Yield/
Rate | | Average
Balance | | Interest Income/
Expense | | Average Yield/
Rate |
| Non-interest bearing deposits | 284,134 | | | | | | | 292,750 | | | | | | | 81,491 | | | | | |
| Other liabilities | 250,086 | | | | | | | 261,796 | | | | | | | 285,292 | | | | | |
| Total liabilities | $ | 5,232,208 | | | | | | | $ | 4,914,424 | | | | | | | $ | 3,829,798 | | | | | |
| | | | | | | | | | | | | | | | | |
| Total equity | $ | 1,111,117 | | | | | | | $ | 952,922 | | | | | | | $ | 786,273 | | | | | |
| Total liabilities and equity | $ | 6,343,325 | | | | | | | $ | 5,867,346 | | | | | | | $ | 4,616,071 | | | | | |
| | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | | 7.99 | % | | | | | | 8.21 | % | | | | | | 5.95 | % |
| | | | | | | | | | | | | | | | | |
| Net interest income and net interest margin | | | $ | 123,676 | | | 8.32 | % | | | | $ | 116,226 | | | 8.45 | % | | | | $ | 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)
| | | | | | | | | | | |
| September 30,
2022 | | December 31, 2021 |
| Assets | | | |
| Cash and due from banks | $ | 23,211 | | | $ | 35,670 | |
| Interest-bearing deposits in banks | 929,630 | | | 651,456 | |
| Total cash and cash equivalents | 952,841 | | | 687,126 | |
| Restricted cash | 66,285 | | | 76,460 | |
| Securities available for sale at fair value ($415,726 and $256,170 at amortized cost, respectively) | 359,157 | | | 263,530 | |
| Loans held for sale (includes $90,058 and $142,370 at fair value, respectively) | 90,058 | | | 391,248 | |
| Loans and leases held for investment | 4,806,927 | | | 2,899,126 | |
| Allowance for loan and lease losses | (303,201) | | | (144,389) | |
| Loans and leases held for investment, net | 4,503,726 | | | 2,754,737 | |
| Retail and certificate loans held for investment at fair value | 87,144 | | | 229,719 | |
| Other loans held for investment at fair value | 15,057 | | | 21,240 | |
| Property, equipment and software, net | 129,957 | | | 97,996 | |
| Goodwill | 75,717 | | | 75,717 | |
| Other assets | 495,132 | | | 302,546 | |
| Total assets | $ | 6,775,074 | | | $ | 4,900,319 | |
| Liabilities and Equity | | | |
| Deposits: | | | |
| Interest-bearing | $ | 4,868,132 | | | $ | 2,919,203 | |
| Noninterest-bearing | 255,374 | | | 216,585 | |
| Total deposits | 5,123,506 | | | 3,135,788 | |
| Short-term borrowings | 4,803 | | | 27,780 | |
| Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 91,671 | | | 271,933 | |
| Retail notes, certificates and secured borrowings at fair value | 87,144 | | | 229,719 | |
| Payable on Structured Program borrowings | 11,185 | | | 65,451 | |
| Other long-term debt | 15,300 | | | 15,455 | |
| Other liabilities | 320,055 | | | 303,951 | |
| Total liabilities | 5,653,664 | | | 4,050,077 | |
| Equity | | | |
| Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 shares issued and outstanding | — | | | — | |
| Common stock, $0.01 par value; 180,000,000 shares authorized; 105,088,761 and 101,043,924 shares issued and outstanding, respectively | 1,051 | | | 1,010 | |
| Additional paid-in capital | 1,611,627 | | | 1,559,616 | |
| Accumulated deficit | (451,336) | | | (717,430) | |
| Treasury stock, at cost; 7,751 and 0 shares, respectively | (98) | | | — | |
| Accumulated other comprehensive income (loss) | (39,834) | | | 7,046 | |
| | | |
| | | |
| Total equity | 1,121,410 | | | 850,242 | |
| Total liabilities and equity | $ | 6,775,074 | | | $ | 4,900,319 | |
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and for the three months ended |
| | September 30,
2022 | | June 30,
2022 | | March 31,
2022 | | December 31,
2021 | | September 30,
2021 |
| GAAP Net income | $ | 43,198 | | | $ | 182,060 | | | $ | 40,836 | | | $ | 29,108 | | | $ | 27,185 | |
| Income tax benefit from release of tax valuation allowance | 5,015 | | | 135,300 | | | — | | | — | | | — | |
| Net income excluding income tax benefit | $ | 38,183 | | | $ | 46,760 | | | $ | 40,836 | | | $ | 29,108 | | | $ | 27,185 | |
| | | | | | | | | | |
| GAAP Diluted EPS – common stockholders | $ | 0.41 | | | $ | 1.73 | | | $ | 0.39 | | | $ | 0.27 | | | $ | 0.26 | |
| | | | | | | | | | |
| (A) | Income tax benefit from release of tax valuation allowance | $ | 5,015 | | | $ | 135,300 | | | | | | | |
| (B) | Weighted-average common shares – Diluted | 105,853,938 | | | 105,042,626 | | | | | | | |
| (A/B) | Diluted EPS impact of income tax benefit | $ | 0.05 | | | $ | 1.29 | | | | | | | |
| | | | | | | | | | |
| Diluted EPS excluding income tax benefit | $ | 0.36 | | | $ | 0.44 | | | $ | 0.39 | | | $ | 0.27 | | | $ | 0.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| September 30,
2022 | | June 30,
2022 | | March 31,
2022 | | December 31,
2021 | | September 30,
2021 |
| GAAP common equity | $ | 1,121,410 | | | $ | 1,079,117 | | | $ | 887,434 | | | $ | 850,242 | | | $ | 804,790 | |
| Less: Goodwill | (75,717) | | | (75,717) | | | (75,717) | | | (75,717) | | | (75,717) | |
| Less: Intangible assets | (17,512) | | | (18,690) | | | (19,886) | | | (21,181) | | | (22,521) | |
| Tangible common equity | $ | 1,028,181 | | | $ | 984,710 | | | $ | 791,831 | | | $ | 753,344 | | | $ | 706,552 | |
| | | | | | | | | |
| Book value per common share | | | | | | | | | |
| GAAP common equity | $ | 1,121,410 | | | $ | 1,079,117 | | | $ | 887,434 | | | $ | 850,242 | | | $ | 804,790 | |
| Common shares issued and outstanding | 105,088,761 | | | 103,630,776 | | | 102,194,037 | | | 101,043,924 | | | 99,782,192 | |
| Book value per common share | $ | 10.67 | | | $ | 10.41 | | | $ | 8.68 | | | $ | 8.41 | | | $ | 8.07 | |
| | | | | | | | | |
| Tangible book value per common share | | | | | | | | | |
| Tangible common equity | $ | 1,028,181 | | | $ | 984,710 | | | $ | 791,831 | | | $ | 753,344 | | | $ | 706,552 | |
| Common shares issued and outstanding | 105,088,761 | | | 103,630,776 | | | 102,194,037 | | | 101,043,924 | | | 99,782,192 | |
| Tangible book value per common share | $ | 9.78 | | | $ | 9.50 | | | $ | 7.75 | | | $ | 7.46 | | | $ | 7.08 | |
