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LendingClub Reports Third Quarter 2021 Results

October 27, 2021 GMT
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.
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.
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.

SAN FRANCISCO, Oct. 27, 2021 /PRNewswire/ -- 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, 2021.

“Our strong revenue and earnings growth trajectory has become evident following our transformation into a digital marketplace bank,” said Scott Sanborn, LendingClub’s CEO. “Our success continues to be driven by our competitive advantages, including our growing base of 3.8 million members, our exceptional data science capabilities, and our proven marketplace model. With our enhanced operating leverage, digital first infrastructure, and the ongoing move of consumers toward online banking, there’s no better time to grow a next generation digital bank like LendingClub.”

Record Revenue and Net Income Reflects Strong Execution and Business Model Transformation.

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  • Record revenue of $246.2 million with total sequential revenue growth of 20% outpacing origination growth of 14%.
    • New recurring stream of net interest income grew 42% sequentially to $65.3 million, as the bank’s loan portfolio (excluding PPP loans) grew 25% from June 30, 2021.
    • Marketplace revenue grew 15% sequentially, reflecting higher origination fees associated with loan origination growth.
    • Deposits grew 12% sequentially to $2.8 billion, in line with growth in our loans held for investment.
  • Record net income of $27.2 million, up 190% sequentially, highlighting positive operating leverage in the fully integrated digital bank business model.
  • Net income of $27.2 million and earnings per share of $0.26 were negatively impacted by $51.5 million of notable items: $34.0 million of Current Expected Credit Loss (CECL) provisioning and $17.5 million of net revenue deferrals both driven by strong retained loan growth. These items reduced our earnings per share by $0.49 in the third quarter of 2021.

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Three Months Ended

($ in millions)

September 30,
2021


June 30,
2021


QoQ
$ Change


QoQ
% Change

Loan originations(1)

$

3,106.7



$

2,722.4



$

384.3



14

%

Total revenue

$

246.2



$

204.4



$

41.8



20

%

Consolidated net income

$

27.2



$

9.4



$

17.8



190

%

(1)

Includes unsecured personal loans, auto loans, and education and patient finance loans only.

Financial Outlook – Raising Full Year Targets

(millions)

Fourth Quarter

2021

Full Year

2021

Versus Prior

Full Year 2021 Guidance

Loan originations(1)

$2.8B to $3.0B

$10.1B to $10.3B

+$100M to +$300M

Total revenue

$240M to $250M

$796M to $806M

+$26M to +$46M

Consolidated net income

$20M to $25M

$9M to $14M

+$17M to +$22M

(1)

Includes unsecured personal loans, auto loans, and education and patient finance loans only.

Notable Items Impacting Q3′21 Consolidated Net Income

(millions)

Consolidated Net
Income Impact(1)

Per
Diluted
Share
Impact

Commentary

Revenue deferrals, net of amortization

$(17.5)

$0.17

Origination fee and cost deferrals,
net of interest income amortization during
the period

Provision for credit losses, less net charge-offs

$(34.0)

$0.32

Primarily for consumer loans originated
and retained in the quarter

Total

$(51.5)

$0.49


(1)

Amounts presented net of tax.

About LendingClub

LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $65 billion in loans, our artificial intelligence-driven credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 3.8 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 2021 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, October 27, 2021. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 3514635, 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 3, 2021, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 10160701. LendingClub has used, and intends to use, its investor relations website, blog ( http://blog.lendingclub.com ), Twitter handle (@LendingClub) and Facebook page ( https://www.facebook.com/LendingClubTeam ) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

Contacts

For Investors:
IR@lendingclub.com

Media Contact:
Press@lendingclub.com

Safe Harbor Statement

Some of the statements above, including statements regarding our competitive advantages, ability to grow our business, anticipated future performance and financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “will,” “would” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing customers; competition; overall economic conditions; the regulatory environment; demand for the types of loans facilitated by us; default rates and those factors set forth in the section titled “Risk Factors” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, each as filed with the Securities and Exchange Commission, as well as our subsequent reports on Form 10-Q and 10-K each as filed with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

*****

LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)


The information in the following tables is presented for the consolidated LendingClub Corporation, unless specifically noted for LendingClub Bank, the company's wholly-owned subsidiary:



As of and for the three months ended


% Change


September 30,
2021


June 30,
2021


March 31,

2021


December 31,

2020


September 30,
2020


Q/Q


Y/Y

Operating Highlights:

Non-interest income

$

180,878



$

158,476



$

87,334



$

72,597



$

57,750



14

%


213

%

Net interest income

$

65,288



$

45,905



$

18,506



$

2,899



13,294



42

%


391

%

Total net revenue

$

246,166



$

204,381



$

105,840



$

75,496



$

71,044



20

%


246

%















Consolidated net income (loss)

$

27,185



$

9,371



$

(47,084)



$

(26,655)



$

(34,325)



190

%


N/M
















EPS – basic

$

0.27



$

0.10



$

(0.49)



$

(0.29)



$

(0.38)



170

%


N/M


EPS – diluted

$

0.26



$

0.09



$

(0.49)



$

(0.29)



$

(0.38)



189

%


N/M
















LendingClub Bank Performance Metrics:

Net interest margin

7.1

%


5.5

%


3.3

%


N/A



N/A






Efficiency ratio (1)

67.5

%


69.0

%


104.8

%


N/A



N/A






Return on average equity (ROE)

26.5

%


34.7

%


N/A



N/A



N/A






Return on average total assets (ROA)

3.7

%


4.7

%


N/A



N/A



N/A




















LendingClub Bank Capital Ratios:

Common Equity Tier 1 Capital Ratio

18.0

%


18.7

%


20.9

%


N/A



N/A






Tier 1 Leverage Ratio

14.1

%


13.5

%


12.9

%


N/A



N/A




















Consolidated LendingClub Corporation Performance Metrics:

Net interest margin

6.3

%


4.7

%


1.8

%


0.7

%


2.9

%





Efficiency ratio (1)

72.6

%


78.4

%


126.8

%


N/A



N/A






Return on average equity (ROE)

13.8

%


5.0

%


N/A



N/A



N/A






Return on average total assets (ROA)

2.4

%


0.8

%


N/A



N/A



N/A






Marketing expense as a % of loan originations

1.6

%


1.3

%


1.3

%


0.9

%


0.4

%



















Loan originations (in millions) (2):














Marketplace loans

$

2,471



$

2,182



$

1,139



$

912



$

584



13

%


323

%

Loan originations held for investment

$

636



$

541



$

344



$



$



18

%


N/A


Total loan originations

$

3,107



$

2,722



$

1,483



$

912



$

584



14

%


432

%















Servicing portfolio AUM

(in millions) (3)

$

11,592



$

10,741



$

10,271



$

11,002



$

12,267



8

%


(6)

%















Balance Sheet Data:

Loans and leases held for investment, net, excluding PPP loans

$

2,235,698



$

1,791,492



$

1,414,900



$



$



25

%


N/A


PPP loans

$

367,558



$

507,553



$

664,400



$



$



(28)

%


N/A


Total loans and leases held for investment, net

$

2,603,256



$

2,299,045



$

2,079,300



$



$



13

%


N/A


Total assets

$

4,750,760



$

4,370,101



$

4,491,089



$

1,863,293



$

1,979,457



9

%


140

%

Total deposits

$

2,838,719



$

2,539,704



$

2,373,437



$



$



12

%


N/A


Total liabilities

$

3,945,970



$

3,607,742



$

3,757,954



$

1,139,122



$

1,245,565



9

%


217

%

Total equity

$

804,790



$

762,359



$

733,135



$

724,171



$

733,892



6

%


10

%















Allowance Ratios:

Allowance for loan and lease losses to total loans and leases held for investment

3.9

%


3.0

%


1.7

%


N/A



N/A






Allowance for loan and lease losses to total loans and leases held for investment, excluding PPP loans

4.5

%


3.8

%


2.5

%


N/A



N/A






Allowance for loan and lease losses to consumer loans and leases held for investment

5.2

%


4.3

%


2.3

%


N/A



N/A






Allowance for loan and lease losses to commercial loans and leases held for investment

1.6

%


1.5

%


1.3

%


N/A



N/A






Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans

2.6

%


2.8

%


1.7

%


N/A



N/A






N/M – Not meaningful

N/A – Not applicable

(1)

Calculated as the ratio of non-interest expense to total net revenue.

(2)

Includes unsecured personal loans, auto loans, and education and patient finance loans only.

(3)

Loans serviced on our platform, which includes personal and auto loans serviced for others and retained for investment by the Company.


LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR INVESTMENT
(In thousands, except percentages or as noted)
(Unaudited)



September 30,
2021


June 30,
2021

Unsecured personal

$

1,258,279



$

776,338


Residential mortgages

141,200



152,528


Secured consumer

314,539



326,318


Other consumer

1,220



157


Total consumer loans held for investment

1,715,238



1,255,341


Equipment finance (1)

157,457



161,465


Commercial real estate

316,135



294,954


Commercial and industrial (2)

519,162



658,366


Total commercial loans and leases held for investment

992,754



1,114,785


Total loans and leases held for investment

2,707,992



2,370,126


Allowance for loan and lease losses

(104,736)



(71,081)


Loans and leases held for investment, net

$

2,603,256



$

2,299,045


(1)

Comprised of sales-type leases for equipment.

(2)

Includes $367.6 million of Paycheck Protection Program (PPP) loans. The Company determined no allowance for expected credit losses is needed on these loans.

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands, except percentages or as noted)

(Unaudited)



Three Months Ended


September 30, 2021


June 30, 2021


Consumer


Commercial


Total


Consumer


Commercial


Total

Allowance for loan and lease losses, beginning of period

$

54,058



$

17,023



$

71,081



$

19,785



$

16,347



$

36,132


Credit loss expense for loans and leases held for investment

37,695



(562)



37,133



34,317



659



34,976


Charge-offs

(3,142)



(1,194)



(4,336)



(90)



(156)



(246)


Recoveries

20



838



858



46



173



219


Allowance for loan and lease losses, end of period

$

88,631



$

16,105



$

104,736



$

54,058



$

17,023



$

71,081


LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)



Three Months Ended




September 30,
2021


June 30,

2021


Change (%)

Non-interest income:






Marketplace revenue (1)

$

174,556



$

151,735



15

%

Other non-interest income

6,322



6,741



(6)

%

Total non-interest income

180,878



158,476



14

%







Interest income:






Interest on loans held for sale

8,536



8,694



(2)

%

Interest and fees on loans and leases held for investment

57,644



39,068



48

%

Interest on retail and certificate loans held for investment at fair value

12,172



16,014



(24)

%

Interest on other loans held for investment at fair value

973



1,222



(20)

%

Interest on securities available for sale

3,180



2,539



25

%

Other interest income

355



190



87

%

Total interest income

82,860



67,727



22

%







Interest expense:






Interest on deposits

1,899



1,699



12

%

Interest on short-term borrowings

849



1,003



(15)

%

Interest on retail notes, certificates and secured borrowings

12,172



16,014



(24)

%

Interest on Structured Program borrowings

2,120



2,668



(21)

%

Interest on other long-term debt

532



438



21

%

Total interest expense

17,572



21,822



(19)

%







Net interest income

65,288



45,905



42

%







Total net revenue

246,166



204,381



20

%







Provision for credit losses

37,524



34,634



8

%







Non-interest expense:






Compensation and benefits

73,304



71,925



2

%

Marketing

50,782



35,107



45

%

Equipment and software

10,297



9,281



11

%

Occupancy

6,486



6,157



5

%

Depreciation and amortization

10,549



11,508



(8)

%

Professional services

11,750



11,520



2

%

Other non-interest expense

15,607



14,641



7

%

Total non-interest expense

178,775



160,139



12

%







Income before income tax expense

29,867



9,608



211

%

Income tax expense

2,682



237



N/M


Consolidated net income

$

27,185



$

9,371



190

%







Net income per share attributable to common stockholders – Basic

$

0.27



$

0.10




Net income per share attributable to common stockholders – Diluted

$

0.26



$

0.09




Weighted-average common shares – Basic

99,073,507



97,785,089




Weighted-average common shares – Diluted

106,108,662



102,031,088




N/M – Not meaningful

LENDINGCLUB CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)(In thousands, except share and per share data)(Unaudited)


(1) Marketplace revenue consists of the following:



Three Months Ended




September 30,
2021


June 30,
2021


Change (%)

Origination fees

$

129,125



$

113,802



13

%

Servicing fees

20,819



22,714



(8)

%

Gain on sales of loans

21,907



19,317



13

%

Net fair value adjustments

2,705



(4,098)



N/M


Total marketplace revenue

$

174,556



$

151,735



15

%

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT
(In thousands, except share and per share data)
(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










Reversal of (provision for) credit losses

(38,019)



495





(37,524)


Non-interest expense

(161,101)



(40,885)



23,211



(178,775)


Income (Loss) before income tax benefit (expense)

39,718



(9,851)





29,867


Income tax benefit (expense)

(4,670)



12,607



(10,619)



(2,682)


Consolidated net income (loss)

$

35,048



$

2,756



$

(10,619)



$

27,185



Three Months Ended June 30, 2021


LendingClub

Bank

LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total

Non-interest income:







Marketplace revenue

$

128,714


$

23,021



$



$

151,735


Other non-interest income

28,340


4,281



(25,880)



6,741


Total non-interest income

157,054


27,302



(25,880)



158,476









Interest income:







Interest income

45,325


22,402





67,727


Interest expense

(1,972)


(19,850)





(21,822)


Net interest income

43,353


2,552





45,905









Total net revenue

200,407


29,854



(25,880)



204,381









Reversal of (provision for) credit losses

(34,956)


322





(34,634)


Non-interest expense

(138,182)


(47,837)



25,880



(160,139)


Income (Loss) before income tax benefit

27,269


(17,661)





9,608


Income tax benefit (expense)

12,513


8,922



(21,672)



(237)


Consolidated net income (loss)

$

39,782


$

(8,739)



$

(21,672)



$

9,371



LENDINGCLUB BANK
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)



LendingClub Bank


Three Months Ended

September 30, 2021


Three Months Ended

June 30, 2021


Average
Balance


Interest Income/
Expense


Average Yield/
Rate


Average
Balance


Interest Income/
Expense


Average Yield/
Rate

Interest-earning assets (1)












Cash, cash equivalents and restricted cash

$

695,294



$

352



0.20

%


$

551,895



$

186



0.13

%

Securities available for sale at fair value

182,882



632



1.38

%


165,579



348



0.84

%

Loans held for sale

145,262



5,978



16.46

%


144,037



5,723



15.89

%

Loans and leases held for investment:












Unsecured personal loans

991,297



39,532



15.95

%


511,787



19,499



15.24

%

Secured consumer loans

464,194



4,688



4.04

%


532,426



5,173



3.89

%

Commercial loans and leases

616,823



7,887



5.11

%


623,735



9,062



5.81

%

PPP loans

436,785



5,537



5.07

%


615,942



5,334



3.46

%

Loans and leases held for investment

2,509,099



57,644



9.19

%


2,283,890



39,068



6.84

%

Total interest-earning assets

3,532,537



64,606



7.32

%


3,145,401



45,325



5.76

%













Cash and due from banks

29,290







34,612






Allowance for loan and lease losses

(86,686)







(51,109)






Other non-interest earning assets

270,594







221,870






Total assets

$

3,745,735







$

3,350,774


















Interest-bearing liabilities












Interest-bearing deposits












Checking and money market accounts

$

2,221,365



$

1,707



0.30

%


$

2,071,112



$

1,618



0.31

%

Savings accounts and certificates of deposit

307,807



192



0.25

%


301,939



81



0.11

%

Interest-bearing deposits

2,529,172



1,899



0.30

%


2,373,051



1,699



0.29

%

Short-term borrowings

321





%


2,138



1



0.06

%

Advances from PPPLF

416,748



371



0.36

%


312,168



272



0.35

%

Other long-term debt





%


708





%

Total interest-bearing liabilities

2,946,241



2,270



0.31

%


2,688,065



1,972



0.29

%













Non-interest bearing deposits

114,065







102,709






Other liabilities

155,806







100,835






Total liabilities

$

3,216,112







$

2,891,609






Total equity

$

529,623







$

459,165






Total liabilities and equity

$

3,745,735







$

3,350,774


















Interest rate spread





7.01

%






5.47

%













Net interest income and net interest margin



$

62,336



7.06

%




$

43,353



5.51

%

(1)

Nonaccrual loans and any related income are included in their respective loan categories.

LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)



Three Months Ended September 30, 2021


LendingClub Bank


LendingClub Corporation

(Parent only)


Consolidated

LendingClub Corporation


Average
Balance


Interest Income/
Expense


Average Yield/
Rate


Average
Balance


Interest Income/
Expense


Average Yield/
Rate


Average
Balance


Interest Income/
Expense


Average Yield/
Rate

Interest-earning assets (1)


















Cash, cash equivalents and restricted cash

$

695,294



$

352



0.20

%


$

83,405



$

3



0.01

%


$

778,667



$

355



0.18

%

Securities available for sale at fair value

182,882



632



1.38

%


83,804



2,548



12.16

%


266,686



3,180



4.77

%

Loans held for sale at fair value

145,262



5,978



16.46

%


81,160



2,558



12.60

%


226,422



8,536



15.08

%

Loans and leases held for investment:


















Unsecured personal loans

991,297



39,532



15.95

%






%


991,297



39,532



15.95

%

Secured consumer loans

464,194



4,688



4.04

%






%


464,194



4,688



4.04

%

Commercial loans and leases

616,823



7,887



5.11

%






%


616,823



7,887



5.11

%

PPP loans

436,785



5,537



5.07

%






%


436,785



5,537



5.07

%

Loans and leases held for investment

2,509,099



57,644



9.19

%






%


2,509,099



57,644



9.19

%

Retail and certificate loans held for investment at fair value





%


344,205



12,172



14.15

%


344,205



12,172



14.15

%

Other loans held for investment at fair value





%


30,981



973



12.58

%


30,981



973



12.58

%

Total interest-earning assets

3,532,537



64,606



7.32

%


623,555



18,254



11.71

%


4,156,060



82,860



7.97

%



















Cash and due from banks and restricted cash

29,290







99,985







96,733






Allowance for loan and lease losses

(86,686)













(86,686)






Other non-interest earning assets

270,594







760,131







449,964






Total assets

$

3,745,735







$

1,483,671







$

4,616,071
























Interest-bearing liabilities


















Interest-bearing deposits:


















Checking and money market accounts

$

2,221,365



$

1,707



0.30

%


$



$



%


$

2,221,365



$

1,707



0.30

%

Savings accounts and certificates of deposit

307,807



192



0.25

%






%


307,807



192



0.25

%

Interest-bearing deposits

2,529,172



1,899



0.30

%






%


2,529,172



1,899



0.30

%

Short-term borrowings

321





%


56,903



849



5.97

%


57,224



849



5.93

%

Advances from PPPLF

416,748



371



0.36

%






%


416,748



371



0.36

%

Retail notes, certificates and secured borrowings





%


344,087



12,173



14.15

%


344,087



12,173



14.15

%

Structured Program borrowings





%


100,178



2,119



8.46

%


100,178



2,119



8.46

%

Other long-term debt





%


15,606



161



4.13

%


15,606



161



4.13

%

Total interest-bearing liabilities

2,946,241



2,270



0.31

%


516,774



15,302



11.84

%


3,463,015



17,572



2.03

%



















Non-interest bearing deposits

114,065













81,491






Other liabilities

155,806







183,962







285,292






Total liabilities

$

3,216,112







$

700,736







$

3,829,798
























Total equity

$

529,623







$

782,935







$

786,273






Total liabilities and equity

$

3,745,735







$

1,483,671







$

4,616,071
























Interest rate spread





7.01

%






(0.13)

%






5.95

%



















Net interest income and net interest margin



$

62,336



7.06

%




$

2,952



1.89

%




$

65,288



6.28

%

(1)

Consolidated presentation reflects intercompany eliminations.

(2)

Nonaccrual loans and any related income are included in their respective loan categories.

LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)



Three Months Ended June 30, 2021


LendingClub Bank


LendingClub Corporation

(Parent only)


Consolidated

LendingClub Corporation(1)


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 and restricted cash

$

551,895



$

186



0.13

%


$

99,419



$

4



0.02

%


$

642,182



$

190



0.12

%

Securities available for sale at fair value

165,579



348



0.84

%


108,377



2,191



8.09

%


273,956



2,539



3.71

%

Loans held for sale

144,037



5,723



15.89

%


99,408



2,971



11.96

%


243,445



8,694



14.29

%

Loans and leases held for investment:


















Unsecured personal loans

511,787



19,499



15.24

%






%


511,787



19,499



15.24

%

Secured consumer loans

532,426



5,173



3.89

%






%


532,426



5,173



3.89

%

Commercial loans and leases

623,735



9,062



5.81

%






%


623,735



9,062



5.81

%

PPP loans

615,942



5,334



3.46

%






%


615,942



5,334



3.46

%

Loans and leases held for investment

2,283,890



39,068



6.84

%






%


2,283,890



39,068



6.84

%

Retail and certificate loans held for investment at fair value





%


448,822



16,014



14.27

%


448,822



16,014



14.27

%

Other loans held for investment at fair value





%


38,662



1,222



12.64

%


38,662



1,222



12.64

%

Total interest-earning assets

3,145,401



45,325



5.76

%


794,688



22,402



11.28

%


3,930,957



67,727



6.89

%



















Cash and due from banks and restricted cash

34,612







111,274







144,897






Allowance for loan and lease losses

(51,109)













(51,109)






Other non-interest earning assets

221,870







749,674







447,826






Total assets

$

3,350,774







$

1,655,636







$

4,472,571
























Interest-bearing liabilities


















Interest-bearing deposits:


















Checking and money market accounts

$

2,071,112



$

1,618



0.31

%


$



$



%


$

2,071,112



$

1,618



0.31

%

Savings accounts and certificates of deposit

301,939



81



0.11

%






%


301,939



81



0.11

%

Interest-bearing deposits

2,373,051



1,699



0.29

%






%


2,373,051



1,699



0.29

%

Short-term borrowings

2,138



1



0.06

%


77,373



1,002



5.19

%


79,511



1,003



5.05

%

Advances from PPPLF

312,168



272



0.35

%






%


312,168



272



0.35

%

Retail notes, certificates and secured borrowings





%


449,057



16,014



14.27

%


449,057



16,014



14.27

%

Structured Program borrowings





%


121,738



2,668



8.77

%


121,738



2,668



8.77

%

Other long-term debt

708





%


15,696



166



4.22

%


16,404



166



4.04

%

Total interest-bearing liabilities

2,688,065



1,972



0.29

%


663,864



19,850



11.96

%


3,351,929



21,822



2.61

%



















Non-interest bearing deposits

102,709













92,588






Other liabilities

100,835







225,521







276,723






Total liabilities

$

2,891,609







$

889,385







$

3,721,240
























Total equity

$

459,165







$

766,251







$

751,331






Total liabilities and equity

$

3,350,774







$

1,655,636







$

4,472,571
























Interest rate spread





5.47

%






(0.68)

%






4.29

%



















Net interest income and net interest margin



$

43,353



5.51

%




$

2,552



1.28

%




$

45,905



4.67

%

(1)

Consolidated presentation reflects intercompany eliminations.

(2)

Nonaccrual loans and any related income are included in their respective loan categories.

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)



September 30,
2021


December 31,
2020

Assets




Cash and due from banks

$

22,604



$

5,197


Interest-bearing deposits in banks

839,547



519,766


Total cash and cash equivalents

862,151



524,963


Restricted cash

77,577



103,522


Securities available for sale at fair value (includes $268,732 and $159,164 at amortized cost, respectively)

274,930



142,226


Loans held for sale at fair value

152,160



121,902


Loans and leases held for investment

2,707,992




Allowance for loan and lease losses

(104,736)




Loans and leases held for investment, net

2,603,256




Retail and certificate loans held for investment at fair value

298,541



636,686


Other loans held for investment at fair value

27,229



49,954


Property, equipment and software, net

96,073



96,641


Goodwill

75,717




Other assets

283,126



187,399


Total assets

$

4,750,760



$

1,863,293


Liabilities and Equity




Deposits:




Interest-bearing

$

2,614,663



$


Noninterest-bearing

224,056




Total deposits

2,838,719




Short-term borrowings

46,110



104,989


Advances from Paycheck Protection Program Liquidity Facility (PPPLF)

391,945




Retail notes, certificates and secured borrowings at fair value

298,541



636,774


Payable on Structured Program borrowings

89,252



152,808


Other long-term debt

15,563




Other liabilities

265,840



244,551


Total liabilities

3,945,970



1,139,122


Equity




Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 and 43,000 shares issued and outstanding, respectively




Common stock, $0.01 par value; 180,000,000 shares authorized; 99,782,192 and 88,149,510 shares issued and outstanding, respectively

998



881


Additional paid-in capital

1,594,646



1,508,020


Accumulated deficit

(796,742)



(786,214)


Treasury stock, at cost; 4,251 and 0 shares, respectively

(92)




Accumulated other comprehensive income

5,980



1,484


Total equity

804,790



724,171


Total liabilities and equity

$

4,750,760



$

1,863,293


LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)



LendingClub

Bank


LendingClub

Corporation

(Parent only)


Intercompany

Eliminations


Total


September 30,
2021


December 31,
2020


September 30,
2021


December 31,
2020


September 30,
2021


December 31,
2020


September 30,
2021


December 31,
2020

Assets
















Total cash and cash equivalents

$

825,538



$



$

100,815



$

524,963



$

(64,202)



$



$

862,151



$

524,963


Restricted cash





84,827



103,522



(7,250)





77,577



103,522


Securities available for sale at fair value

201,438





73,492



142,226







274,930



142,226


Loans held for sale at fair value

82,483





69,677



121,902







152,160



121,902


Loans and leases held for investment, net

2,603,256













2,603,256




Retail and certificate loans held for investment at fair value





298,541



636,686







298,541



636,686


Other loans held for investment at fair value





27,229



49,954







27,229



49,954


Property, equipment and software, net

26,457





69,616



96,641







96,073



96,641


Investment in subsidiary





511,394





(511,394)








Goodwill

75,717













75,717




Other assets

199,050





176,994



187,399



(92,918)





283,126



187,399


Total assets

4,013,939





1,412,585



1,863,293



(675,764)





4,750,760



1,863,293


Liabilities and Equity
















Total deposits

2,910,171









(71,452)





2,838,719




Short-term borrowings

321





45,789



104,989







46,110



104,989


Advances from PPPLF

391,945













391,945




Retail notes, certificates and secured borrowings at fair value





298,541



636,774







298,541



636,774


Payable on Structured Program borrowings





89,252



152,808







89,252



152,808


Other long-term debt





15,563









15,563




Other liabilities

154,521





171,764



244,551



(60,445)





265,840



244,551


Total liabilities

3,456,958





620,909



1,139,122



(131,897)





3,945,970



1,139,122


Total equity

556,981





791,676



724,171



(543,867)





804,790



724,171


Total liabilities and equity

$

4,013,939



$



$

1,412,585



$

1,863,293



$

(675,764)



$



$

4,750,760



$

1,863,293



LENDINGCLUB CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands)
(Unaudited)


The following table is provided to delineate between the assets and liabilities belonging to our member payment dependent self-directed retail program (Retail Program) note holders and certain VIEs that we are required to consolidate in accordance with GAAP. Such assets are not legally ours and the associated liabilities are payable only from the cash flows generated by those assets (i.e. Pass-throughs). As such, these debt holders do not have a secured interest in any other assets of LendingClub. We believe this is a useful measure because it illustrates the overall financial stability and operating leverage of the Company.



September 30, 2021


December 31, 2020


Retail Program (1)

Consolidated VIEs (2)(4)

All Other LendingClub (3)

Condensed Consolidated Balance Sheet


Retail Program (1)

Consolidated VIEs (2)(4)

All Other LendingClub (3)

Condensed Consolidated Balance Sheet

Assets










Total cash and cash equivalents

$


$


$

862,151


$

862,151



$


$


$

524,963


$

524,963


Restricted cash


12,537


65,040


77,577




13,473


90,049


103,522


Securities available for sale at fair value



274,930


274,930





142,226


142,226


Loans held for sale at fair value (4)


52,175


99,985


152,160




92,802


29,100


121,902


Loans and leases held for investment, net



2,603,256


2,603,256







Retail and certificate loans held for investment at fair value

283,153


15,388



298,541



584,066


52,620



636,686


Other loans held for investment at fair value (4)


24,333


2,896


27,229




46,120


3,834


49,954


Property, equipment and software, net



96,073


96,073





96,641


96,641


Goodwill



75,717


75,717







Other assets

1,761


491


280,874


283,126



3,797


1,134


182,468


187,399


Total assets

$

284,914


$

104,924


$

4,360,922


$

4,750,760



$

587,863


$

206,149


$

1,069,281


$

1,863,293


Liabilities and Equity










Total deposits

$


$


$

2,838,719


$

2,838,719



$


$


$


$


Short-term borrowings



46,110


46,110





104,989


104,989


Advances from PPPLF



391,945


391,945







Retail notes, certificates and secured borrowings at fair value

283,153


15,388



298,541



584,066


52,620


88


636,774


Payable on Structured Program borrowings (4)


89,252



89,252




152,808



152,808


Other long-term debt



15,563


15,563







Other liabilities

1,761


284


263,795


265,840



3,797


721


240,033


244,551


Total liabilities

284,914


104,924


3,556,132


3,945,970



587,863


206,149


345,110


1,139,122


Total equity



804,790


804,790





724,171


724,171


Total liabilities and equity

$

284,914


$

104,924


$

4,360,922


$

4,750,760



$

587,863


$

206,149


$

1,069,281


$

1,863,293


(1)

Represents loans held for investment at fair value that are funded directly by our Retail Program notes. The liabilities are only payable from the cash flows generated by the associated assets. We do not assume principal or interest rate risk on loans facilitated through our lending marketplace that are funded by our Retail Program because loan balances, interest rates and maturities are matched and offset by an equal balance of notes with the exact same interest rates and maturities. We do not retain any economic interests from our Retail Program. Interest expense on Retail Program notes of $44.5 million and $77.2 million was equally matched and offset by interest income from the related loans of $44.5 million and $77.2 million for the first nine months of 2021 and 2020, respectively, resulting in no net effect on our net interest income.

(2)

Represents assets and equal and offsetting liabilities of certain VIEs that we are required to consolidate in accordance with GAAP, but which are not legally ours. The liabilities are only payable from the cash flows generated by the associated assets. The creditors of the VIEs have no recourse to the general credit of the Company. Interest expense on these liabilities owned by third parties of $11.9 million and $106.4 million was equally matched and offset by interest income on the loans of $11.9 million and $106.4 million for the first nine months of 2021 and 2020, respectively, resulting in no net effect on our net interest income. Economic interests held by LendingClub, including retained interests, residuals and equity of the VIEs, are reflected in "Loans held for sale at fair value," "Other loans held for investment at fair value" and "Restricted cash," respectively, within the "All Other LendingClub" column.

(3)

Represents all other assets and liabilities of LendingClub, other than those related to our Retail Program and certain consolidated VIEs, but includes any economic interests held by LendingClub, including retained interests, residuals and equity of those consolidated VIEs.

(4)

The Company has sponsored Structured Program transactions that have been consolidated, resulting in an increase to "Other loans held for investment at fair value," "Loans held for sale at fair value" and the related "Payable on Structured Program borrowings."

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SOURCE LendingClub Corporation