lc-20210728
0001409970FALSE00014099702021-07-282021-07-28

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): July 28, 2021
LendingClub Corporation
(Exact name of registrant as specified in its charter)
 
Commission File Number: 001-36771
Delaware51-0605731
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
595 Market Street, Suite 200,
San Francisco,CA94105
(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))

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.
☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, par value $0.01 per shareLCNew York Stock Exchange



Item 2.02Results of Operations and Financial Condition

On July 28, 2021, LendingClub Corporation (“LendingClub”) issued a press release (the “Earnings Press Release”) regarding its financial results for the quarter ended June 30, 2021. 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 9.01Financial Statements and Exhibits
(d)Exhibits

Exhibit
Number		Exhibit Title or Description
104Cover Page Interactive Data File (Cover page XBRL tags are embedded within the Inline XBRL document)



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: July 28, 2021By:/s/ Thomas W. Casey
Thomas W. Casey
Chief Financial Officer
(duly authorized officer)


lendingclublogonewa02.jpg                                    EXHIBIT 99.1
LendingClub Reports Second Quarter 2021 Results
Delivers Record Net Income on 93% Growth in Revenue
Raising Full Year Revenue Target by +45% with Net Income Guidance of $25-$35 Million for the Second Half of 2021
    
SAN FRANCISCO – July 28, 2021 – LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the second quarter ended June 30, 2021.
“Our first full quarter operating a digital bank was the most profitable quarter in LendingClub’s history,” said Scott Sanborn, LendingClub’s CEO. “This is the beginning of a dramatically enhanced earnings trajectory for the business. Our transformation is fueled by our competitive advantages, which include our 3.5 million-plus members, deep data capabilities, marketplace model as well as our more efficient operating platform. Our earnings are being bolstered by our bank, which is generating a new stream of recurring net interest income that is only beginning to contribute to our bottom line results.”

Strong Revenue Growth and Accelerated Return to Profitability Reflects Effective Execution on Strategic Priorities.

•Total sequential revenue growth of 93%, reflecting growth in marketplace revenue and increased net interest income from the retained portfolio of consumer loans.
◦Marketplace revenue grew 86% sequentially, primarily reflecting 105% growth in origination fees and a 132% increase in gains on loan sales as loans sold through the marketplace doubled.
◦Net interest income grew 148% sequentially to $45.9 million, as the bank’s loan portfolio (excluding PPP loans) grew 27% sequentially, propelled by growth in the consumer loan portfolio of 145% to $795M.
◦Deposits grew to $2.5 billion, helping fund growth in the bank’s loan portfolio.
•Sequential origination growth of 84% as we returned to market leadership and leveraged our expanded predictive science and credit decisioning capabilities, which drove a substantial increase in our end-to-end application conversion rate.
•Strong revenue growth and positive operating leverage drove record earnings and an accelerated return to profitability.
•Consolidated net income of $9.4 million included $56.7 million of notable items: $34.6 million of Current Expected Credit Loss (CECL) provisioning which reduced reported earnings and reflects rapid growth in the bank’s loan portfolio, $19.6 million of net revenue deferrals on retained loans, and $2.5 million of non-recurring expenses.
•Entered into a settlement agreement with the Federal Trade Commission (FTC), which concludes the agency’s previously disclosed investigation and litigation. Pursuant to the terms of the settlement, LendingClub will make an $18 million payment for consumer remediation, an amount already accrued for in prior periods.

Three Months Ended  
($ in millions)June 30,
2021		March 31,
2021		QoQ
Change
Loan originations(1)
$2,722.4 $1,483.2 $1,239.2 
Total revenue$204.4 $105.8 $98.6 
Consolidated net income (loss)$9.4 $(47.1)$56.5 
(1)     Includes unsecured personal loans, auto loans, and education and patient finance loans only.


1

Financial Outlook – Raising Full Year Targets

(millions)Third Quarter
2021		Full Year
2021		Versus Prior
Full Year 2021 Guidance
Loan originations(1)
$2.8B to $3.0B$9.8B to $10.2B+$2.9B to +$3.0B
Total revenue$215M to $230M$750M to $780M+$240M to +$250M
Consolidated net income (loss)$10M to $15M($13M) to ($3M)+$139M to +$154M
(1)     Includes unsecured personal loans, auto loans, and education and patient finance loans only.

Items Impacting Q2’21 Consolidated Net Income

(millions)Consolidated Net Income ImpactPer
Diluted Share Impact		Commentary
Revenue deferrals, net of amortization$(19.6)$0.19Revenue deferrals, net of deferred costs and amortization during the period
Provision for credit losses$(34.6)$0.34Primarily for consumer loans originated and retained in the quarter
Non-recurring expenses$(2.5)$0.02Non-recurring expenses primarily related to the acquisition of Radius Bank
Total$(56.7)$0.56
.

2

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 US. Members can gain access to a broad range of financial products and services through a technology-driven platform, designed to help them pay less when borrowing and earn more when saving. Since 2007, more than 3 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 second 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, July 28, 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 4824215, 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 August 4, 2021, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 10158362. 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]

Safe Harbor Statement
Some of the statements above, including statements regarding the benefits of our bank acquisition, 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.

*****
3

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
June 30,
2021		March 31,
2021		December 31,
2020		September 30,
2020		June 30,
2020		Q/QY/Y
Operating Highlights:
Noninterest income$158,476 $87,334 $72,597 $57,750 $21,421 81 %640 %
Net interest income$45,905 $18,506 $2,899 $13,294 18,937 148 %142 %
Total net revenue (1)
$204,381 $105,840 $75,496 $71,044 $40,358 93 %406 %
Consolidated net income (loss)$9,371 $(47,084)$(26,655)$(34,325)$(78,471)N/MN/M
EPS – basic$0.10 $(0.49)$(0.29)$(0.38)$(0.87)N/MN/M
EPS – diluted$0.09 $(0.49)$(0.29)$(0.38)$(0.87)N/MN/M
LendingClub Bank net interest margin5.51 %3.33 %N/AN/AN/A
Servicing portfolio AUM
(in millions) (2)
$10,741$10,271$11,002$12,267$13,9625 %(23)%
Loan originations (in millions) (3):
Marketplace loans$2,182 $1,139 $912 $584 $326 92 %569 %
Loan originations held for investment$541 $344 $— $— $— 57 %N/M
Total loan originations$2,722 $1,483 $912 $584 $326 84 %735 %
Balance Sheet Data:
Loans and leases held for investment, net, excluding PPP loans$1,791,492 $1,414,900 $— $— $— 27 %N/M
PPP loans$507,553 $664,400 $— $— $— (24)%N/M
Total loans and leases held for investment, net$2,299,045 $2,079,300 $— $— $— 11 %N/M
Total assets$4,370,101 $4,491,089 $1,863,293 $1,979,457 $2,452,599 (3)%78 %
Total deposits$2,539,704 $2,373,437 $— $— $— 7 %N/M
Total liabilities$3,607,742 $3,757,954 $1,139,122 $1,245,565 $1,706,457 (4)%111 %
Total equity$762,359 $733,135 $724,171 $733,892 $746,142 4 %2 %
Asset Quality Ratios:
Allowance for loan and lease losses to loans and leases held for investment3.00 %1.71 %N/AN/AN/A
Allowance for loan and lease losses to loans and leases held for investment, excluding PPP loans3.82 %2.49 %N/AN/AN/A
Allowance for loan and lease losses to nonaccruing loans and leases held for investment417.78 %302.69 %N/AN/AN/A
Nonaccruing loans and leases to loans and leases held for investment0.72 %0.56 %N/AN/AN/A
Nonaccruing loans and leases to loans and leases held for investment, excluding PPP loans0.91 %0.82 %N/AN/AN/A
LendingClub Bank Capital Ratios:
Common Equity Tier 1 Capital Ratio18.7 %20.9 %N/AN/AN/A
Tier 1 Leverage Ratio13.5 %12.9 %N/AN/AN/A
N/M – Not meaningful
N/A – Not applicable
(1)     Prior period total net revenue balances have been recast related to credit valuation adjustments on securities available for sale being reclassified from net fair value adjustments to provision for credit losses.
(2)    Includes unsecured personal loans and auto loans only.
(3)    Includes unsecured personal loans, auto loans, and education and patient finance loans only.
4

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

June 30, 2021March 31, 2021
Unsecured personal$776,338 $321,104 
Residential mortgages152,528 164,002 
Secured consumer326,318 387,244 
Other consumer157 34 
Total consumer loans held for investment1,255,341 872,384 
Equipment finance (1)
161,465 145,885 
Commercial real estate294,954 302,445 
Commercial and industrial (2)
658,366 794,718 
Total commercial loans and leases held for investment1,114,785 1,243,048 
Total loans and leases held for investment2,370,126 2,115,432 
Allowance for loan and lease losses(71,081)(36,132)
Loans and leases held for investment, net$2,299,045 $2,079,300 
(1)    Comprised of sales-type leases for equipment.
(2)    Includes $507.6 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
June 30, 2021March 31, 2021
ConsumerCommercialTotalConsumerCommercialTotal
Allowance for loan and lease losses, beginning of period$19,785 $16,347 $36,132 $— $— $— 
Credit loss expense for loans and leases held for investment34,317 659 34,976 19,182 4,371 23,553 
Initial allowance for PCD loans acquired during the period
— — — 603 11,837 12,440 
Charge-offs(90)(156)(246)— — — 
Recoveries46 173 219 — 139 139 
Allowance for loan and lease losses, end of period$54,058 $17,023 $71,081 $19,785 $16,347 $36,132 

5

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
June 30,March 31,
 20212021Change (%)
Non-interest income:
Marketplace revenue (1)
$151,735 $81,727 86 %
Other non-interest income6,741 5,607 20 %
Total non-interest income158,476 87,334 81 %
Interest income:
Interest on loans held for sale8,694 5,157 69 %
Interest and fees on loans and leases held for investment39,068 15,301 155 %
Interest on retail and certificate loans held for investment at fair value16,014 20,262 (21)%
Interest on other loans held for investment at fair value1,222 1,479 (17)%
Interest on securities available for sale2,539 2,235 14 %
Other interest income190 156 22 %
Total interest income67,727 44,590 52 %
Interest expense:
Interest on deposits1,699 1,014 68 %
Interest on short-term borrowings1,003 1,264 (21)%
Interest on retail notes, certificates and secured borrowings16,014 20,262 (21)%
Interest on Structured Program borrowings2,668 3,208 (17)%
Interest on other long-term debt438 336 30 %
Total interest expense21,822 26,084 (16)%
Net interest income45,905 18,506 148 %
Total net revenue204,381 105,840 93 %
Provision for credit losses34,634 21,493 61 %
Non-interest expense:
Compensation and benefits71,925 64,420 12 %
Marketing35,107 19,545 80 %
Equipment and software9,281 7,893 18 %
Occupancy6,157 6,900 (11)%
Depreciation and amortization11,508 11,766 (2)%
Professional services11,520 11,603 (1)%
Other non-interest expense14,641 12,125 21 %
Total non-interest expense160,139 134,252 19 %
Income (Loss) before income tax expense9,608 (49,905)N/M
Income tax expense (benefit)237 (2,821)N/M
Consolidated net income (loss)$9,371 $(47,084)N/M
Net income (loss) per share attributable to common stockholders – Basic$0.10 $(0.49)
Net income (loss) per share attributable to common stockholders – Diluted$0.09 $(0.49)
Weighted-average common shares – Basic97,785,089 92,666,169 
Weighted-average common shares – Diluted102,031,088 92,666,169 
Net income (loss) per share attributable to preferred stockholders – Basic and Diluted$— $(0.49)
Weighted-average common shares, as converted – Basic and Diluted— 2,648,758 
N/M – Not meaningful
6

(1)    Marketplace revenue consists of the following:
Three Months Ended
June 30, 2021March 31, 2021Change (%)
Origination fees$113,802 $55,559 105 %
Servicing fees22,714 23,166 (2)%
Gain on sales of loans19,317 8,323 132 %
Net fair value adjustments(4,098)(5,321)(23)%
Total marketplace revenue$151,735 $81,727 86 %

7

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30, 2021
LendingClub
Corporation
(Parent only)		LendingClub
Bank		Intercompany
Eliminations		Total
Non-interest income:
Marketplace revenue$23,021 $128,714 $— $151,735 
Other non-interest income4,281 28,340 (25,880)6,741 
Total non-interest income27,302 157,054 (25,880)158,476 
Interest income:
Interest income22,402 45,325 — 67,727 
Interest expense(19,850)(1,972)— (21,822)
Net interest income2,552 43,353 — 45,905 
Total net revenue29,854 200,407 (25,880)204,381 
Reversal of (provision for) credit losses322 (34,956)— (34,634)
Non-interest expense(47,837)(138,182)25,880 (160,139)
Income (Loss) before income tax benefit (expense)(17,661)27,269 — 9,608 
Income tax benefit (expense)8,922 12,513 (21,672)(237)
Consolidated net income (loss)$(8,739)$39,782 $(21,672)$9,371 

Three Months Ended March 31, 2021
LendingClub
Corporation
(Parent only)
LendingClub
Bank (1)
Intercompany
Eliminations		Total
Non-interest income:
Marketplace revenue$45,665 $36,062 $— $81,727 
Other non-interest income4,098 19,700 (18,191)5,607 
Total non-interest income49,763 55,762 (18,191)87,334 
Interest income:
Interest income27,092 17,498 — 44,590 
Interest expense(24,837)(1,247)— (26,084)
Net interest income2,255 16,251 — 18,506 
Total net revenue52,018 72,013 (18,191)105,840 
Reversal of (provision for) credit losses2,470 (23,963)— (21,493)
Non-interest expense(76,944)(75,499)18,191 (134,252)
Loss before income tax benefit(22,456)(27,449)— (49,905)
Income tax benefit2,292 23 506 2,821 
Consolidated net loss$(20,164)$(27,426)$506 $(47,084)
(1)    For the two month period from February 1, 2021 through March 31, 2021, for LendingClub Bank.
8
LENDINGCLUB BANK
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
LendingClub Bank
Three Months Ended
June 30, 2021
Two Months Ended
March 31, 2021(1)
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 %$737,555 $138 0.11 %
Securities available for sale at fair value165,579 348 0.84 %232,001 444 1.15 %
Loans held for sale144,037 5,723 15.89 %64,720 1,615 14.97 %
Loans and leases held for investment:
Unsecured personal loans511,787 19,499 15.24 %146,925 3,392 13.85 %
Secured consumer loans532,426 5,173 3.89 %521,399 3,215 3.70 %
Commercial loans and leases623,735 9,062 5.81 %605,495 5,119 5.07 %
PPP loans615,942 5,334 3.46 %621,292 3,575 3.45 %
Loans and leases held for investment2,283,890 39,068 6.84 %1,895,111 15,301 4.84 %
Total interest-earning assets3,145,401 45,325 5.76 %2,929,387 17,498 3.58 %
Cash and due from banks34,612 42,683 
Allowance for loan and lease losses(51,109)(30,357)
Other non-interest earning assets221,870 187,785 
Total assets$3,350,774 $3,129,498 
Interest-bearing liabilities
Interest-bearing deposits
Checking and money market accounts$2,071,112 $1,618 0.31 %$1,735,274 $913 0.33 %
Savings accounts and certificates of deposit301,939 81 0.11 %323,800 101 0.19 %
Interest-bearing deposits2,373,051 1,699 0.29 %2,059,074 1,014 0.30 %
Short-term borrowings2,138 1 0.06 %1,829 0.3 0.09 %
Advances from PPPLF312,168 272 0.35 %405,989 233 0.35 %
Other long-term debt708 — — %2,834 — — %
Total interest-bearing liabilities2,688,065 1,972 0.29 %2,469,726 1,247 0.31 %
Non-interest bearing deposits102,709 156,034 
Other liabilities100,835 68,510 
Total liabilities$2,891,609 $2,694,270 
Total equity$459,165 $435,228 
Total liabilities and equity$3,350,774 $3,129,498 
Interest rate spread5.47 %3.27 %
Net interest income and net interest margin$43,353 5.51 %$16,251 3.33 %
(1)    Prior period amounts have been reclassified to include non-interest earning assets, non-interest bearing liabilities and equity to conform to current period presentation.
(2)    Nonaccrual loans and any related income are included in their respective loan categories.
9
LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
Three Months Ended June 30, 2021
LendingClub BankLendingClub 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 value165,579 348 0.84 %108,377 2,191 8.09 %273,956 2,539 3.71 %
Loans held for sale144,037 5,723 15.89 %99,408 2,971 11.96 %243,445 8,694 14.29 %
Loans and leases held for investment:
Unsecured personal loans511,787 19,499 15.24 %— — — %511,787 19,499 15.24 %
Secured consumer loans532,426 5,173 3.89 %— — — %532,426 5,173 3.89 %
Commercial loans and leases623,735 9,062 5.81 %— — — %623,735 9,062 5.81 %
PPP loans615,942 5,334 3.46 %— — — %615,942 5,334 3.46 %
Loans and leases held for investment2,283,890 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 assets3,145,401 45,325 5.76 %794,688 22,402 11.28 %3,930,957 67,727 6.89 %
Cash and due from banks and restricted cash34,612 111,274 144,897 
Allowance for loan and lease losses(51,109)— (51,109)
Other non-interest earning assets221,870 749,674 447,826 
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 deposit301,939 81 0.11 %— — — %301,939 81 0.11 %
Interest-bearing deposits2,373,051 1,699 0.29 %— — — %2,373,051 1,699 0.29 %
Short-term borrowings2,138 1 0.06 %77,373 1,002 5.19 %79,511 1,003 5.05 %
Advances from PPPLF312,168 272 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 debt708 — — %15,696 166 4.22 %16,404 166 4.04 %
Total interest-bearing liabilities2,688,065 1,972 0.29 %663,864 19,850 11.96 %3,351,929 21,822 2.61 %
10
LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
Three Months Ended June 30, 2021
LendingClub BankLendingClub 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
Non-interest bearing deposits102,709 — 92,588 
Other liabilities100,835 225,521 276,723 
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 spread5.47 %(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.
11
LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
Three Months Ended March 31, 2021(1)(2)
LendingClub BankLendingClub Corporation
(Parent only)
Consolidated
LendingClub Corporation(3)
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(4)
Cash, cash equivalents and restricted cash$737,555 $138 0.11 %$216,698 $18 0.03 %$918,148 $156 0.10 %
Securities available for sale at fair value232,001 444 1.15 %130,620 1,791 5.48 %362,621 2,235 2.71 %
Loans held for sale64,720 1,615 14.97 %133,872 3,542 10.58 %198,592 5,157 12.01 %
Loans and leases held for investment:
Unsecured personal loans146,925 3,392 13.85 %— — — %146,925 3,392 13.85 %
Secured consumer loans521,399 3,215 3.70 %— — — %521,399 3,215 3.70 %
Commercial loans and leases605,495 5,119 5.07 %— — — %605,495 5,119 5.07 %
PPP loans621,292 3,575 3.45 %— — — %621,292 3,575 3.45 %
Loans and leases held for investment1,895,111 15,301 4.84 %— — — %1,895,111 15,301 4.84 %
Retail and certificate loans held for investment at fair value— — — %574,158 20,262 14.12 %574,158 20,262 14.12 %
Other loans held for investment at fair value— — — %46,212 1,479 12.80 %46,212 1,479 12.80 %
Total interest-earning assets2,929,387 17,498 3.58 %1,101,560 27,092 9.84 %3,994,842 44,590 5.34 %
Cash and due from banks and restricted cash42,683 95,190 137,216 
Allowance for loan and lease losses(30,357)— (30,357)
Other non-interest earning assets187,785 618,194 326,040 
Total assets$3,129,498 $1,814,944 $4,427,741 
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts$1,735,274 $913 0.33 %$— $— — %$1,735,274 $913 0.33 %
Savings accounts and certificates of deposit323,800 101 0.19 %— — — %323,800 101 0.19 %
Interest-bearing deposits2,059,074 1,014 0.30 %— — — %2,059,074 1,014 0.30 %
Short-term borrowings1,829 0.3 0.09 %96,989 1,264 5.21 %98,818 1,264 5.12 %
Advances from PPPLF405,989 233 0.35 %— — — %405,989 233 0.35 %
Retail notes, certificates and secured borrowings— — — %574,192 20,262 14.12 %574,192 20,262 14.12 %
Structured Program borrowings— — — %143,045 3,208 8.97 %143,045 3,208 8.97 %
Other long-term debt2,834 — — %15,771 103 2.61 %18,605 103 2.21 %
Total interest-bearing liabilities2,469,726 1,247 0.31 %829,997 24,837 11.97 %3,299,723 26,084 3.24 %
12
LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
Three Months Ended March 31, 2021(1)(2)
LendingClub BankLendingClub Corporation
(Parent only)
Consolidated
LendingClub Corporation(3)
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 deposits156,034 — 119,272 
Other liabilities68,510 245,177 286,907 
Total liabilities$2,694,270 $1,075,174 $3,705,902 
Total equity$435,228 $739,770 $721,839 
Total liabilities and equity$3,129,498 $1,814,944 $4,427,741 
Interest rate spread3.27 %(2.13)%2.11 %
Net interest income and net interest margin$16,251 3.33 %$2,255 0.82 %$18,506 2.67 %
(1)    For the two month period from February 1, 2021 through March 31, 2021, for LendingClub Bank.
(2)    Prior period amounts have been reclassified to include non-interest earning assets, non-interest bearing liabilities and equity to conform to current period presentation.
(3)     Consolidated presentation reflects intercompany eliminations.
(4)    Nonaccrual loans and any related income are included in their respective loan categories.
13

LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
June 30, 2021December 31, 2020
Assets
Cash and due from banks$55,773 $5,197 
Interest-bearing deposits in banks512,873 519,766 
Total cash and cash equivalents568,646 524,963 
Restricted cash123,896 103,522 
Securities available for sale at fair value (includes $272,869 and $159,164 at amortized cost, respectively)277,505 142,226 
Loans held for sale (includes $180,061 and $121,902 at fair value, respectively)226,328 121,902 
Loans and leases held for investment2,370,126 — 
Allowance for loan and lease losses(71,081)— 
Loans and leases held for investment, net2,299,045 — 
Retail and certificate loans held for investment at fair value391,362 636,686 
Other loans held for investment at fair value34,523 49,954 
Property, equipment and software, net94,676 96,641 
Goodwill75,717 — 
Other assets278,403 187,399 
Total assets$4,370,101 $1,863,293 
Liabilities and Equity
Deposits:
Interest-bearing$2,445,518 $— 
Noninterest-bearing94,186 — 
Total deposits2,539,704 — 
Short-term borrowings68,781 104,989 
Advances from Paycheck Protection Program Liquidity Facility (PPPLF)195,481 370,086 
Retail notes, certificates and secured borrowings at fair value391,384 507,203 
Payable on Structured Program borrowings110,871 133,499 
Other long-term debt15,650 — 
Other liabilities285,871 244,551 
Total liabilities3,607,742 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; 98,601,148 and 88,149,510 shares issued and outstanding, respectively986 881 
Additional paid-in capital
1,580,518 1,508,020 
Accumulated deficit(823,927)(786,214)
Treasury stock, at cost; 4,251 and 0 shares, respectively(92)— 
Accumulated other comprehensive income4,874 1,484 
Total equity762,359 724,171 
Total liabilities and equity$4,370,101 $1,863,293 

14

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

LendingClub
Corporation
(Parent only)		LendingClub
Bank		Intercompany
Eliminations		Total
 June 30, 2021December 31, 2020June 30, 2021December 31, 2020June 30, 2021December 31, 2020June 30, 2021December 31, 2020
Assets
Total cash and cash equivalents$72,458 $524,963 $493,915 $— $2,273 $— $568,646 $524,963 
Restricted cash127,781 103,522 — — (3,885)— 123,896 103,522 
Securities available for sale at fair value95,378 142,226 182,127 — — — 277,505 142,226 
Loans held for sale92,509 121,902 133,819 — — — 226,328 121,902 
Loans and leases held for investment, net— — 2,299,045 — — — 2,299,045 — 
Retail and certificate loans held for investment at fair value391,362 636,686 — — — — 391,362 636,686 
Other loans held for investment at fair value34,523 49,954 — — — — 34,523 49,954 
Property, equipment and software, net78,288 96,641 16,388 — — — 94,676 96,641 
Investment in subsidiary483,696 — — — (483,696)— — — 
Goodwill— — 75,717 — — — 75,717 — 
Other assets189,567 187,399 156,886 — (68,050)— 278,403 187,399 
Total assets1,565,562 1,863,293 3,357,897 — (553,358)— 4,370,101 1,863,293 
Liabilities and Equity
Total deposits— — 2,541,317 — (1,613)— 2,539,704 — 
Short-term borrowings68,460 104,989 321 — — — 68,781 104,989 
Advances from PPPLF— — 195,481 — — — 195,481 — 
Retail notes, certificates and secured borrowings at fair value391,384 636,774 — — — — 391,384 636,774 
Payable on Structured Program borrowings110,871 152,808 — — — — 110,871 152,808 
Other long-term debt15,650 — — — — — 15,650 — 
Other liabilities206,525 244,551 125,790 — (46,444)— 285,871 244,551 
Total liabilities792,890 1,139,122 2,862,909 — (48,057)— 3,607,742 1,139,122 
Total equity772,672 724,171 494,988 — (505,301)— 762,359 724,171 
Total liabilities and equity$1,565,562 $1,863,293 $3,357,897 $— $(553,358)$— $4,370,101 $1,863,293 
15

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.
June 30, 2021December 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$— $— $568,646 $568,646 $— $— $524,963 $524,963 
Restricted cash— 14,156 109,740 123,896 — 13,473 90,049 103,522 
Securities available for sale at fair value — — 277,505 277,505 — — 142,226 142,226 
Loans held for sale (4)
— 65,305 161,023 226,328 — 92,802 29,100 121,902 
Loans and leases held for investment, net— — 2,299,045 2,299,045 — — — — 
Retail and certificate loans held for investment at fair value367,552 23,810 — 391,362 584,066 52,620 — 636,686 
Other loans held for investment at fair
value (4)
— 31,149 3,374 34,523 — 46,120 3,834 49,954 
Property, equipment and software, net— — 94,676 94,676 — — 96,641 96,641 
Goodwill— — 75,717 75,717 — — — — 
Other assets
2,323 647 275,433 278,403 3,797 1,134 182,468 187,399 
Total assets$369,875 $135,067 $3,865,159 $4,370,101 $587,863 $206,149 $1,069,281 $1,863,293 
Liabilities and Equity
Total deposits$— $— $2,539,704 $2,539,704 $— $— $— $— 
Short-term borrowings— — 68,781 68,781 — — 104,989 104,989 
Advances from PPPLF— — 195,481 195,481 — — — — 
Retail notes, certificates and secured borrowings at fair value367,552 23,810 22 391,384 584,066 52,620 88 636,774 
Payable on Structured Program borrowings (4)
— 110,871 — 110,871 — 152,808 — 152,808 
Other long-term debt— — 15,650 15,650 — — — — 
Other liabilities2,323 386 283,162 285,871 3,797 721 240,033 244,551 
Total liabilities369,875 135,067 3,102,800 3,607,742 587,863 206,149 345,110 1,139,122 
Total equity— — 762,359 762,359 — — 724,171 724,171 
Total liabilities and equity
$369,875 $135,067 $3,865,159 $4,370,101 $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 $33.2 million and $53.8 million was equally matched and offset by interest income from the related loans of $33.2 million and $53.8 million for the first halves 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 $9.0 million and $20.6 million was equally matched and offset by interest income on the loans of $9.0 million and $20.6 million for the first halves 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,” “Other loans held for investment at fair value” and
16

“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” and the related “Payable on Structured Program borrowings.”
17