EXHIBIT 99.1LendingClub Reports First Quarter 2021 Results
Sequential Revenue Growth of 40% Exceeds High End of Guidance
Raising Full Year Outlook
SAN FRANCISCO – April 28, 2021 – LendingClub Corporation (NYSE: LC), America’s leading digital marketplace bank, today announced financial results for the first quarter ended March 31, 2021.
“We had a great start to the year, accelerating personal loan origination growth by leveraging our strategic advantages including our customer base of 3 million members, our data and technology capabilities, and our newly acquired digital bank,” said Scott Sanborn, CEO of LendingClub. “Personal loans are paving the road to our broader ambitions as our vertically integrated model delivers a new and recurring revenue stream, lowers our issuance costs and generates strong and sustained growth.”
Results Reflect Completed Acquisition of Radius (now LendingClub Bank) and Strong Sequential Growth
•63% sequential growth in origination volume.
•40% sequential growth in total revenue, driven by growth in originations, partially offset by revenue deferrals on originations retained on the balance sheet.
◦20% sequential growth in non-interest income, representing 83% of total revenue.
◦New, recurring revenue stream of net interest income of $18.5 million compared to $2.9 million in the fourth quarter of 2020.
•Stronger first quarter revenue growth improved bottom line results versus our guidance.
•First quarter 2021 net loss of $47 million included $44 million of the following notable items: $21 million of Current Expected Credit Loss (CECL) expenses related to acquired loans and loan growth, $14 million of net revenue deferrals on retained loans, and $9 million of non-recurring expenses related to the acquisition of Radius.
| Three Months Ended | |||||||||||||||||
| ($ in millions) | March 31, 2021 | December 31, 2020 | QoQ % | ||||||||||||||
| Loan originations | $ | 1,483.2 | $ | 912.0 | 63 | % | |||||||||||
| Total revenue | $ | 105.8 | $ | 75.5 | 40 | % | |||||||||||
| Consolidated net loss | $ | (47.1) | $ | (26.7) | 76 | % | |||||||||||
Strategic and Financial Benefits of Digital Bank Acquisition Are Being Realized Immediately
•Successfully transitioned to all new personal loan originations being issued through LendingClub Bank as we exited the quarter, saving on issuing fees previously paid to a third-party issuing bank partner.
•Retained $344 million of personal loans, building an attractive and recurring revenue stream which generates approximately 3x the earnings of loans sold through the marketplace.
•Benefited from a core deposit base of over $2 billion from the acquisition, reducing overall funding costs by approximately 300 basis points compared to 2020.
•Leveraged new digital banking capabilities and extended support of the Paycheck Protection Program (PPP), which has cumulatively facilitated over $870 million of loans to help small businesses keep over 75,000 people employed.
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Financial Outlook – Raising Full Year Targets
| (millions) | Second Quarter 2021 | Full Year 2021 | Versus Prior Full Year 2021 Guidance | ||||||||
| Loan originations | $1.7B to $1.9B | $6.8B to $7.3B | +$500M to +$1B | ||||||||
| Total revenue | $130M to $140M | $500M to $530M | +$12M to +$42M | ||||||||
| Consolidated net loss | ($40M) to ($30M) | ($167M) to ($142M) | +$33M | ||||||||
Items Impacting Q1’21 Consolidated Net Loss
| (millions) | Consolidated Net Loss Impact | Per Share Impact | Commentary | ||||||||
| Revenue deferrals, net of amortization | $(14.0) | $(0.14) | Deferred revenue, net of deferred expense and amortization during the period | ||||||||
| Provision for credit losses | $(21.5) | $(0.22) | Includes $6.9 million Day 1 CECL adjustment for legacy Radius assets | ||||||||
| Non-recurring expenses | $(8.9) | $(0.09) | Non-recurring expenses primarily related to the acquisition of Radius | ||||||||
| Total | $(44.4) | $(0.46) | |||||||||
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About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. It 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 first 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, April 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 0419659, 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 March 17, 2021, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 10151870. 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:
Media Contact:
Safe Harbor Statement
Some of the statements above, including statements regarding future products and services, our ability to effectuate and the effectiveness of certain strategy initiatives, anticipated future financial results, value delivery for customers and stockholders, and the impact of the Radius acquisition and resulting bank charter on our business 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: the outcomes of pending governmental investigations and pending or threatened litigation, which are inherently uncertain; the impact of management changes and the ability to continue to retain key personnel; our ability to achieve cost savings from restructurings; our ability to continue to attract and retain new and existing borrowers and investors; our ability to obtain or add bank functionality and a bank charter; competition; overall economic conditions; 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.
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LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2021 | 2020 | 2020 | |||||||||||||||
Non-interest income (1): | |||||||||||||||||
| Marketplace revenue | $ | 81,727 | $ | 69,322 | $ | 102,477 | |||||||||||
| Other non-interest income | 5,607 | 3,276 | 4,511 | ||||||||||||||
| Total non-interest income | 87,334 | 72,598 | 106,988 | ||||||||||||||
Interest income (1): | |||||||||||||||||
| Interest on loans held for sale | 5,157 | 5,297 | 27,376 | ||||||||||||||
| Interest and fees on loans and leases held for investment | 15,301 | — | — | ||||||||||||||
| Interest on retail and certificate loans held for investment at fair value | 20,262 | 23,759 | 35,376 | ||||||||||||||
| Interest on other loans held for investment at fair value | 1,479 | 1,666 | 1,999 | ||||||||||||||
| Interest on securities available for sale | 2,235 | 2,194 | 3,779 | ||||||||||||||
| Other interest income | 156 | 34 | 881 | ||||||||||||||
| Total interest income | 44,590 | 32,950 | 69,411 | ||||||||||||||
Interest expense (1): | |||||||||||||||||
| Interest on deposits | 1,014 | — | — | ||||||||||||||
| Interest on short-term borrowings | 1,264 | 1,506 | 7,398 | ||||||||||||||
| Interest on retail notes, certificates and secured borrowings | 20,262 | 23,759 | 35,376 | ||||||||||||||
| Interest on Structured Program borrowings | 3,208 | 4,786 | 2,299 | ||||||||||||||
| Interest on other long-term debt | 336 | — | 140 | ||||||||||||||
| Total interest expense | 26,084 | 30,051 | 45,213 | ||||||||||||||
Net interest income (1) | 18,506 | 2,899 | 24,198 | ||||||||||||||
Total net revenue (1) | 105,840 | 75,497 | 131,186 | ||||||||||||||
Provision for credit losses (1) | 21,493 | (417) | 10,980 | ||||||||||||||
Non-interest expense (1): | |||||||||||||||||
| Compensation and benefits | 64,420 | 52,527 | 75,545 | ||||||||||||||
| Marketing | 19,545 | 8,488 | 39,081 | ||||||||||||||
| Equipment and software | 7,893 | 5,911 | 6,490 | ||||||||||||||
| Occupancy | 6,900 | 5,629 | 6,813 | ||||||||||||||
| Depreciation and amortization | 11,766 | 12,198 | 12,873 | ||||||||||||||
| Professional services | 11,603 | 9,057 | 14,141 | ||||||||||||||
| Other non-interest expense | 12,125 | 9,083 | 13,031 | ||||||||||||||
| Total non-interest expense | 134,252 | 102,893 | 167,974 | ||||||||||||||
| Loss before income tax expense | (49,905) | (26,979) | (47,768) | ||||||||||||||
| Income tax expense (benefit) | (2,821) | (324) | 319 | ||||||||||||||
| Consolidated net loss | $ | (47,084) | $ | (26,655) | $ | (48,087) | |||||||||||
Net loss per share attributable to common stockholders – Basic and Diluted (2) | $ | (0.49) | $ | (0.29) | $ | (1.10) | |||||||||||
Weighted-average common shares – Basic and Diluted (2) | 92,666,169 | 81,368,674 | 86,505,560 | ||||||||||||||
Net income (loss) per share attributable to preferred stockholders – Basic and Diluted (2) | $ | (0.49) | $ | (0.29) | $ | 18.36 | |||||||||||
Weighted-average common shares, as converted – Basic and Diluted (2) | 2,648,758 | 10,512,486 | 2,579,710 | ||||||||||||||
(1) Prior period amounts have been reclassified to conform to the current period presentation.
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(2) The following table details the computation of the Company’s basic and diluted net income (loss) per share of common stock and preferred stock (presented on an as-converted basis):
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| March 31, 2021 | December 31, 2021 | March 31, 2020 | |||||||||||||||||||||||||||||||||
| Common Stock | Preferred Stock | Common Stock | Preferred Stock | Common Stock | Preferred Stock | ||||||||||||||||||||||||||||||
| Allocation of undistributed consolidated net loss | $ | (45,776) | $ | (1,308) | $ | (23,605) | $ | (3,050) | $ | (45,240) | $ | (2,847) | |||||||||||||||||||||||
| Deemed dividend | — | — | — | — | (50,204) | 50,204 | |||||||||||||||||||||||||||||
Net income (loss) attributable to stockholders (3) | $ | (45,776) | $ | (1,308) | $ | (23,605) | $ | (3,050) | $ | (95,444) | $ | 47,357 | |||||||||||||||||||||||
Weighted-average common shares – Basic and Diluted | 92,666,169 | 2,648,758 | 81,368,674 | 10,512,486 | 86,505,560 | 2,579,710 | |||||||||||||||||||||||||||||
Net income (loss) per share attributable to stockholders – Basic and Diluted | $ | (0.49) | $ | (0.49) | $ | (0.29) | $ | (0.29) | $ | (1.10) | $ | 18.36 | |||||||||||||||||||||||
(3) For the first quarter of 2020, reflects a deemed dividend paid to our largest stockholder upon the exchange of all shares of LendingClub common stock held by it for newly issued shares of mandatorily convertible, non-voting, LendingClub Series A preferred stock.
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LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages and number of employees, or as noted)
(Unaudited)
| Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | Q/Q | Y/Y | |||||||||||||||||||||||||||||||||||
| Operating Highlights: | |||||||||||||||||||||||||||||||||||||||||
Loan originations (in millions) (1) | $ | 1,483 | $ | 912 | $ | 584 | $ | 326 | $ | 2,521 | 63 | % | (41) | % | |||||||||||||||||||||||||||
Total revenue (2) | $ | 105,840 | $ | 75,497 | $ | 71,043 | $ | 40,357 | $ | 131,187 | 40 | % | (19) | % | |||||||||||||||||||||||||||
| Consolidated net loss | $ | (47,084) | $ | (26,655) | $ | (34,325) | $ | (78,471) | $ | (48,087) | (77) | % | (2) | % | |||||||||||||||||||||||||||
EPS (common stockholders) – diluted (3) | $ | (0.49) | $ | (0.29) | $ | (0.38) | $ | (0.87) | $ | (1.10) | (69) | % | (55) | % | |||||||||||||||||||||||||||
| Loan Originations by Investor Type: | |||||||||||||||||||||||||||||||||||||||||
| Banks | 29 | % | 33 | % | 41 | % | 68 | % | 43 | % | |||||||||||||||||||||||||||||||
| Self-directed retail investors | — | % | 8 | % | 13 | % | 17 | % | 4 | % | |||||||||||||||||||||||||||||||
| LendingClub Bank | 23 | % | — | % | — | % | — | % | — | % | |||||||||||||||||||||||||||||||
LendingClub inventory (4) | 5 | % | 1 | % | 2 | % | 5 | % | 20 | % | |||||||||||||||||||||||||||||||
| Managed accounts and other institutional | 43 | % | 58 | % | 44 | % | 10 | % | 33 | % | |||||||||||||||||||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
| Servicing Portfolio by Method Financed (in millions, at end of period): | |||||||||||||||||||||||||||||||||||||||||
| Whole loans sold | $ | 9,185 | $ | 10,139 | $ | 11,249 | $ | 12,421 | $ | 14,118 | (9) | % | (35) | % | |||||||||||||||||||||||||||
| Retail notes, certificates and secured borrowings | 537 | 680 | 756 | 851 | 991 | (21) | % | (46) | % | ||||||||||||||||||||||||||||||||
| LendingClub Bank | 399 | 57 | 79 | 109 | 147 | N/M | 171 | % | |||||||||||||||||||||||||||||||||
| Other loans invested in by the Company | 150 | 183 | 262 | 690 | 866 | (18) | % | (83) | % | ||||||||||||||||||||||||||||||||
| Total | $ | 10,271 | $ | 11,002 | $ | 12,267 | $ | 13,962 | $ | 15,975 | (7) | % | (36) | % | |||||||||||||||||||||||||||
Employees and contractors (5) | 1,192 | 1,030 | 998 | 1,008 | 1,542 | 16 | % | (23) | % | ||||||||||||||||||||||||||||||||
N/M – Not meaningful
(1) Includes unsecured personal loans, auto loans, and education and patient finance loans.
(2) 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.
(3) For the first quarter of 2020, reflects a $50.2 million deemed dividend paid to our largest stockholder upon the exchange of all shares of LendingClub common stock held by it for newly issued shares of mandatorily convertible, non-voting, LendingClub Series A preferred stock.
(4) LendingClub inventory reflects loans purchased or pending purchase by the Company during the period, excluding loans held by the Company through consolidated trusts, if applicable, and not yet sold as of the period end.
(5) As of the end of each respective period.
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LENDINGCLUB CORPORATION
ALLOWANCE FOR LOAN AND LEASE LOSSES
(In thousands, except percentages or as noted)
(Unaudited)
The activity in the allowance for expected credit losses for the quarter ended March 31, 2021 was as follows:
| March 31, 2021 | |||||
| Allowance for loan and lease losses, beginning of period | $ | — | |||
| Credit loss expense for loans and leases held for investment | 23,553 | ||||
Initial allowance for PCD assets acquired during the period | 12,440 | ||||
| Charge-offs | — | ||||
| Recoveries | 139 | ||||
| Allowance for loan and lease losses, end of period | $ | 36,132 | |||
| Reserve for unfunded lending commitments, beginning of period | $ | — | |||
| Credit loss expense for unfunded lending commitments | 410 | ||||
| Reserve for unfunded lending commitments, end of period | $ | 410 | |||
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LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
| March 31, 2021 | December 31, 2020 | ||||||||||
Assets (1) | |||||||||||
| Cash and due from banks | $ | 34,261 | $ | 5,197 | |||||||
| Interest-bearing deposits in banks | 797,539 | 519,766 | |||||||||
| Total cash and cash equivalents | 831,800 | 524,963 | |||||||||
| Restricted cash | 139,080 | 103,522 | |||||||||
| Securities available for sale at fair value (includes $273,331 and $159,164 at amortized cost, respectively) | 274,419 | 142,226 | |||||||||
| Loans held for sale at fair value | 166,623 | 121,902 | |||||||||
| Loans and leases held for investment | 2,115,432 | — | |||||||||
| Allowance for loan and lease losses | (36,132) | — | |||||||||
| Loans and leases held for investment, net | 2,079,300 | — | |||||||||
| Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | |||||||||
| Other loans held for investment at fair value | 42,485 | 49,954 | |||||||||
| Property, equipment and software, net | 95,313 | 96,641 | |||||||||
| Goodwill | 75,717 | — | |||||||||
| Other assets | 279,195 | 187,399 | |||||||||
| Total assets | $ | 4,491,089 | $ | 1,863,293 | |||||||
Liabilities and Equity (1) | |||||||||||
| Deposits: | |||||||||||
| Interest-bearing | $ | 2,229,827 | $ | — | |||||||
| Noninterest-bearing | 143,610 | — | |||||||||
| Total deposits | 2,373,437 | — | |||||||||
| Short-term borrowings | 90,091 | 104,989 | |||||||||
| Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 370,086 | — | |||||||||
| Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | |||||||||
| Payable on Structured Program borrowings | 133,499 | 152,808 | |||||||||
| Other long-term debt | 18,572 | — | |||||||||
| Other liabilities | 265,066 | 244,551 | |||||||||
| Total liabilities | 3,757,954 | 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; 97,228,126 and 88,149,510 shares issued and outstanding, respectively | 972 | 881 | |||||||||
Additional paid-in capital | 1,563,865 | 1,508,020 | |||||||||
| Accumulated deficit | (833,298) | (786,214) | |||||||||
| Treasury stock, at cost; 4,251 and 0 shares, respectively | (92) | — | |||||||||
| Accumulated other comprehensive income | 1,688 | 1,484 | |||||||||
| Total equity | 733,135 | 724,171 | |||||||||
| Total liabilities and equity | $ | 4,491,089 | $ | 1,863,293 | |||||||
(1) Prior period amounts have been reclassified to conform to the current period presentation.
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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 | ||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Total cash and cash equivalents | $ | 75,950 | $ | 524,963 | $ | 792,701 | $ | — | $ | (36,851) | $ | — | $ | 831,800 | $ | 524,963 | |||||||||||||||||||||||||||||||
| Restricted cash | 139,080 | 103,522 | — | — | — | — | 139,080 | 103,522 | |||||||||||||||||||||||||||||||||||||||
| Securities available for sale at fair value | 122,766 | 142,226 | 151,653 | — | — | — | 274,419 | 142,226 | |||||||||||||||||||||||||||||||||||||||
| Loans held for sale at fair value | 105,792 | 121,902 | 60,831 | — | — | — | 166,623 | 121,902 | |||||||||||||||||||||||||||||||||||||||
| Loans and leases held for investment, net | — | — | 2,079,300 | — | — | — | 2,079,300 | — | |||||||||||||||||||||||||||||||||||||||
| Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | — | — | — | — | 507,157 | 636,686 | |||||||||||||||||||||||||||||||||||||||
| Other loans held for investment at fair value | 42,485 | 49,954 | — | — | — | — | 42,485 | 49,954 | |||||||||||||||||||||||||||||||||||||||
| Property, equipment and software, net | 88,364 | 96,641 | 6,949 | — | — | — | 95,313 | 96,641 | |||||||||||||||||||||||||||||||||||||||
| Goodwill | — | — | 75,717 | — | — | — | 75,717 | — | |||||||||||||||||||||||||||||||||||||||
| Other assets | 206,756 | 187,399 | 123,227 | — | (50,788) | — | 279,195 | 187,399 | |||||||||||||||||||||||||||||||||||||||
| Total assets | 1,747,267 | 1,863,293 | 3,290,378 | — | (546,556) | — | 4,491,089 | 1,863,293 | |||||||||||||||||||||||||||||||||||||||
| Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | — | — | 2,410,288 | — | (36,851) | — | 2,373,437 | — | |||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 87,347 | 104,989 | 2,744 | — | — | — | 90,091 | 104,989 | |||||||||||||||||||||||||||||||||||||||
| Advances from PPPLF | — | — | 370,086 | — | — | — | 370,086 | — | |||||||||||||||||||||||||||||||||||||||
| Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | — | — | — | — | 507,203 | 636,774 | |||||||||||||||||||||||||||||||||||||||
| Payable on Structured Program borrowings | 133,499 | 152,808 | — | — | — | — | 133,499 | 152,808 | |||||||||||||||||||||||||||||||||||||||
| Other long-term debt | 15,738 | — | 2,834 | — | — | — | 18,572 | — | |||||||||||||||||||||||||||||||||||||||
| Other liabilities | 240,486 | 244,551 | 75,875 | — | (51,295) | — | 265,066 | 244,551 | |||||||||||||||||||||||||||||||||||||||
| Total liabilities | 984,273 | 1,139,122 | 2,861,827 | — | (88,146) | — | 3,757,954 | 1,139,122 | |||||||||||||||||||||||||||||||||||||||
| Total equity | 762,994 | 724,171 | 428,551 | — | (458,410) | — | 733,135 | 724,171 | |||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 1,747,267 | $ | 1,863,293 | $ | 3,290,378 | $ | — | $ | (546,556) | $ | — | $ | 4,491,089 | $ | 1,863,293 | |||||||||||||||||||||||||||||||
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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.
| March 31, 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 (5) | |||||||||||||||||||||||||||||
| Total cash and cash equivalents | $ | — | $ | — | $ | 831,800 | $ | 831,800 | $ | — | $ | — | $ | 524,963 | $ | 524,963 | |||||||||||||
| Restricted cash | — | 15,229 | 123,851 | 139,080 | — | 13,473 | 90,049 | 103,522 | |||||||||||||||||||||
| Securities available for sale at fair value | — | — | 274,419 | 274,419 | — | — | 142,226 | 142,226 | |||||||||||||||||||||
Loans held for sale at fair value (4) | — | 79,281 | 87,342 | 166,623 | — | 92,802 | 29,100 | 121,902 | |||||||||||||||||||||
| Loans and leases held for investment, net | — | — | 2,079,300 | 2,079,300 | — | — | — | — | |||||||||||||||||||||
| Retail and certificate loans held for investment at fair value | 470,880 | 36,277 | — | 507,157 | 584,066 | 52,620 | — | 636,686 | |||||||||||||||||||||
Other loans held for investment at fair value (4) | — | 38,680 | 3,805 | 42,485 | — | 46,120 | 3,834 | 49,954 | |||||||||||||||||||||
| Property, equipment and software, net | — | — | 95,313 | 95,313 | — | — | 96,641 | 96,641 | |||||||||||||||||||||
| Goodwill | — | — | 75,717 | 75,717 | — | — | — | — | |||||||||||||||||||||
Other assets | 2,879 | 828 | 275,488 | 279,195 | 3,797 | 1,134 | 182,468 | 187,399 | |||||||||||||||||||||
| Total assets | $ | 473,759 | $ | 170,295 | $ | 3,847,035 | $ | 4,491,089 | $ | 587,863 | $ | 206,149 | $ | 1,069,281 | $ | 1,863,293 | |||||||||||||
Liabilities and Equity(5) | |||||||||||||||||||||||||||||
| Total deposits | $ | — | $ | — | $ | 2,373,437 | $ | 2,373,437 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
| Short-term borrowings | — | — | 90,091 | 90,091 | — | — | 104,989 | 104,989 | |||||||||||||||||||||
| Advances from PPPLF | — | — | 370,086 | 370,086 | — | — | — | — | |||||||||||||||||||||
| Retail notes, certificates and secured borrowings at fair value | 470,880 | 36,277 | 46 | 507,203 | 584,066 | 52,620 | 88 | 636,774 | |||||||||||||||||||||
Payable on Structured Program borrowings (4) | — | 133,499 | — | 133,499 | — | 152,808 | — | 152,808 | |||||||||||||||||||||
| Other long-term debt | — | — | 18,572 | 18,572 | — | — | — | — | |||||||||||||||||||||
| Other liabilities | 2,879 | 519 | 261,668 | 265,066 | 3,797 | 721 | 240,033 | 244,551 | |||||||||||||||||||||
| Total liabilities | 473,759 | 170,295 | 3,113,900 | 3,757,954 | 587,863 | 206,149 | 345,110 | 1,139,122 | |||||||||||||||||||||
| Total equity | — | — | 733,135 | 733,135 | — | — | 724,171 | 724,171 | |||||||||||||||||||||
Total liabilities and equity | $ | 473,759 | $ | 170,295 | $ | 3,847,035 | $ | 4,491,089 | $ | 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 $18.4 million and $28.9 million was equally matched and offset by interest income from the related loans of $18.4 million and $28.9 million for the first quarters 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 $5.1 million and $10.5 million was equally matched and offset by interest income on the loans of $5.1 million and $10.5 million for the first quarters of 2021 and 2020, respectively, resulting in no net effect on our net interest income. Economic interests held by LendingClub, including
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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.”
(5) Prior period amounts have been reclassified to conform to the current period presentation.
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