LendingClub Reports Fourth Quarter and Full Year 2021 Results - 26.01.22 - News

SAN FRANCISCO, Jan. 26, 2022

"We have closed out a transformative year at LC by delivering the growth, innovation, and efficiency of a fintech along with the funding advantages, revenue diversity, and regulatory clarity of a bank," said Scott Sanborn, LendingClub's CEO. "We expect our transformed business model and data and membership advantages to help drive more than $100 million in incremental earnings in 2022 as we continue to evolve our member-focused business into a multi-product, digital marketplace bank."

Record Full Year 2021 Results Driven by Return to Growth, Transformed Business Economics and Increased Operational Efficiency

Revenue of $818.6 million, up 157% compared to 2020, with marketplace revenue 136% higher and the new recurring stream of net interest income 259% higher year-over-year.
Achieved GAAP profitability during 2021, with net income of $18.6 million for the year ended December 31, 2021, compared to a net loss of $187.5 million in 2020.
Results driven by initiatives undertaken in 2021 and in prior years to improve efficiency, as well as the transformational business model changes with the bank acquisition, both of which position LendingClub well to generate continued strong revenue and earnings growth.
Key achievements for the year include acquiring and integrating the bank, consolidating the personal, auto refinance and purchase finance loans onto one origination platform, and accelerating membership acquisition.

Record Fourth Quarter 2021 Results Exceed Expectations

Revenue of $262.2 million, with sequential growth of 7% outpacing growth in originations.

New recurring stream of net interest income grew 27% sequentially to $83.1 million, as the bank's loan portfolio (excluding PPP loans and including $248.9 million of yacht loans transferred to held for sale) grew 22% from September 30, 2021.
Marketplace revenue of $170.6 million declined 2% sequentially, primarily reflecting a reduction in loans sold through the marketplace as loan retention increased from 20% in the third quarter of 2021 to 25% of total originations in the fourth quarter of 2021, driving 43% growth in the personal loan portfolio retained on the balance sheet at period end.
Deposits grew 10% sequentially to $3.1 billion, in line with growth in our loans held for investment.

Net income of $29.1 million, up 7% sequentially, and diluted earnings per share of $0.27 as strong revenue growth exceeded the impact of investments in loan retention, marketing and technology.
Net income was negatively impacted by $56.6 million of notable items: $39.5 million of Current Expected Credit Loss (CECL) provisioning, less net charge-offs, and $17.1 million of net revenue deferrals both driven by strong retained loan growth. These items reduced our earnings per share by $0.53 in the fourth quarter of 2021.

Three Months Ended

ARIVA.DE Börsen-Geflüster

Kurse

Lending Club Usd0.01

-

0,00%

Year Ended

($ in millions)

December 31,
2021

September 30,
2021

December 31,
2020

December 31,
2021

December 31,
2020

Loan originations⁽¹⁾

$

3,069.1

$

3,106.7

$

912.0

$

10,381.3

$

4,343.4

Total revenue

$

262.2

$

246.2

$

75.9

$

818.6

$

318.1

Consolidated net income (loss)

$

29.1

$

27.2

$

(26.7)

$

18.6

$

(187.5)

⁽¹⁾	Includes unsecured personal loans, auto loans, and education and patient finance loans only.

Financial Outlook

(millions)

First Quarter

2022

Full Year

2022

Total revenue

$255M to $265M

$1.1B to $1.2B

Consolidated net income

$25M to $30M

$130M to $150M

Notable Items Impacting Fourth Quarter 2021 Consolidated Net Income

(millions)	Consolidated Net Income Impact⁽¹⁾	Per Diluted Share Impact	Commentary
Revenue deferrals, net of amortization	$(17.1)	$0.16	Origination fee and cost deferrals, net of interest income amortization during the period
Provision for credit losses, less net charge-offs	$(39.5)	$0.37	Primarily for consumer loans originated and retained in the quarter
Total	$(56.6)	$0.53

⁽¹⁾	Amounts presented net of tax.

About LendingClub

LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $70 billion in loans, our artificial intelligence-driven credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 3.9 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 fourth 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, January 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 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 1727043, 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 February 2, 2022, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 5387149. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), Twitter handle (@LendingClub) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

Contacts

For Investors:
IR@lendingclub.com

Media Contact:
Press@lendingclub.com

Safe Harbor Statement

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

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS

(In thousands, except percentages or as noted)

(Unaudited)

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

As of and for the three months ended

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