0001409970FALSE00014099702022-10-262022-10-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM			8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2022

LendingClub Corporation
(Exact name of registrant as specified in its charter)

 

Commission File Number: 001-36771

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)

Registrant’s telephone number, including area code: 415 632-5600

Former name or former address, if changed since last report: N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			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))

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.			☐

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Item 2.02						Results of Operations and Financial Condition

On October 26, 2022, LendingClub Corporation (“LendingClub”) issued a press release (the “Earnings Press Release”) regarding its financial results for the quarter ended September 30, 2022. A copy of the Earnings Press Release is attached as Exhibit 99.1 to this Form 8-K and is incorporated by reference herein.

The information set forth in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01						Financial Statements and Exhibits
(d)						Exhibits

Exhibit Number						Exhibit Title or Description
99.1						Press Release dated October 26, 2022
104						Cover Page Interactive Data File (Cover page XBRL tags are embedded within the Inline XBRL document)

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SIGNATURE(S)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						LendingClub Corporation
Date:			October 26, 2022			By:			/s/ ANDREW LABENNE
									Andrew LaBenne
									Chief Financial Officer
									(duly authorized officer)

                                    EXHIBIT 99.1

LendingClub 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
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
Provision for credit losses			82.7						70.6						37.5
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
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.

			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

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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:

[email protected]

Media Contact:

[email protected]

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.

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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.

*****

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LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS

(In thousands, except percentages or as noted)

(Unaudited)

			As of and for the three months ended																														% Change
			September 30, 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		%
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		%
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		%
Return on average equity (ROE)			14.2		%				33.8		%				18.7		%				14.1		%				13.8		%
Return on average total assets (ROA)			2.5		%				5.5		%				3.1		%				2.4		%				2.4		%
Marketing expense as a % of loan originations			1.3		%				1.6		%				1.7		%				1.7		%				1.6		%
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		%
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		%
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		%
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		%

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LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS (Continued)

(In thousands, except percentages or as noted)

(Unaudited)

			As of and for the three months ended																														% Change
			September 30, 2022						June 30, 2022						March 31, 2022						December 31, 2021						September 30, 2021						Q/Q						Y/Y
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		%

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.

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LENDINGCLUB CORPORATION

LOANS AND LEASES HELD FOR INVESTMENT

(In thousands)

(Unaudited)

			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
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)

			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
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

			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
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)

			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)		%
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		%
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)		%

8

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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)		%

9

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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

10

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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

11

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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

12

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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		%

13

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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.

14

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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

15

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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

16