EX-99.1 2 q422exhibit991er.htm EX-99.1 Document
lendingclublogonewa02.jpg                                    EXHIBIT 99.1
LendingClub Reports Fourth Quarter and Full Year 2022 Results
Delivers Record Full Year Revenue and Earnings Growth Despite Challenging Environment

SAN FRANCISCO – January 25, 2023 – LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2022.
“Our fourth quarter results clearly demonstrated the benefits of our evolution into a marketplace bank. We significantly grew recurring revenue to offset the expected reduction in marketplace volumes,” said Scott Sanborn, LendingClub CEO. “Looking ahead, in anticipation of a more challenging environment, we have streamlined our operations and will maintain our underwriting discipline. We also intend to remain profitable, while investing in-period earnings into loan retention to support future earnings. These actions will allow us to capitalize on growth opportunities as economic pressures abate.”

Full Year 2022 Results Reflect Ongoing Transformation and Positioning for Long-Term Sustained Success
•Total assets increased 63% year over year to $8.0 billion, primarily reflecting growth in loans held for investment, including the acquisition of a $1.05 billion outstanding principal loan portfolio in the fourth quarter of 2022.
•Deposits of $6.4 billion more than doubled, primarily due to growth in online savings deposits.
•Total net revenue of $1.2 billion up 45% year over year
◦Net interest income, a recurring stream of earnings, increased over 100% to $474.8 million.
◦Marketplace revenue grew 18% year over year to $683.6 million.
•Pre-tax income of $153.0 million compared to $18.4 million in the prior year, reflecting solid revenue growth combined with improved operating efficiency.
•Implemented significant cost reduction plan to more closely align the company’s expense base with anticipated loan volume in 2023.

Fourth Quarter 2022 Results
•Total net revenue of $262.7 million was comparable to the prior-year period, as strong growth in net interest income offset lower marketplace revenue.
◦Net interest income increased 63% year over year to $135.2 million.
▪Total loans and leases held for investment grew 104%, primarily reflecting growth in personal loan originations held for investment and the acquisition of a $1.05 billion loan portfolio in the fourth quarter of 2022.
▪Net interest margin expanded to 7.8% from 7.6% in the prior-year period, primarily reflecting a greater mix of personal loans which generate a higher yield than the other loans held for investment.
◦Marketplace revenue was $123.4 million compared to $170.6 million year over year, reflecting a reduction in volumes consistent with the change in total origination volume due to the pace of Federal Reserve interest rate increases and tighter underwriting standards implemented by the company.
•Loan originations were $2.5 billion, compared to $3.1 billion in the prior-year period.
•Credit quality of the held-for-investment prime loan portfolio remained strong, with delinquency rates continuing to normalize as the portfolio seasons.
•Provision for credit losses of $61.5 million primarily reflects $700.8 million of quarterly loan originations held for investment and ongoing recognition of provision expense for discounted lifetime losses at origination.
•Efficiency ratio improved to 69% from 72% in the prior-year period due to better marketing efficiency.
•Pre-provision net revenue of $82.7 million grew 12% year over year, driven by improved operating efficiency.
•Net income of $23.6 million compared to $29.1 million year over year, reflecting higher credit provisioning due to growth in the held-for-investment portfolio, partially offset by favorable marketing efficiency.
•Total equity of $1.2 billion grew $314.1 million from December 31, 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 $10.93 increased 30% from December 31, 2021. Tangible book value per common share of $10.06 increased 35% from December 31, 2021. The increases in book value and tangible book value per share were consistent with the growth in total equity.
•Substantial capital with a consolidated Tier 1 leverage ratio of 14.1% and consolidated Common Equity Tier 1 capital ratio of 15.8%.
1


Three Months EndedYear Ended
($ in millions, except per share amounts)December 31,
2022		September 30,
2022		December 31,
2021		December 31,
2022		December 31,
2021
Total net revenue$262.7 $304.9 $262.2 $1,187.2 $818.6 
Non-interest expense180.0 186.2 188.2 766.9 661.4 
Pre-provision net revenue (1)
82.7 118.7 74.0 420.3 157.2 
Provision for credit losses61.5 82.7 45.1 267.3 138.8 
Income before income tax benefit21.2 36.0 28.9 153.0 18.4 
Income tax benefit2.4 7.2 0.2 136.6 0.1 
Net income$23.6 $43.2 $29.1 $289.7 $18.6 
Diluted EPS$0.22 $0.41 $0.27 $2.79 $0.18 
Income tax benefit from release of tax valuation allowance$3.2 $5.0 $— $143.5 $— 
Net income excluding income tax benefit (1,2)
$20.4 $38.2 $29.1 $146.2 $18.6 
Diluted EPS excluding income tax benefit (1,2)
$0.19 $0.36 $0.27 $1.41 $0.18 
(1)    See page 3 of this release for additional information on our use of non-GAAP financial measures.
(2)    Fourth and third quarters of 2022 and the year ended December 31, 2022, include income tax benefit of $3.2 million, $5.0 million, and $143.5 million, respectively, due to the release of a deferred tax asset valuation allowance.

For a calculation of Pre-Provision Net Revenue, 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

Given the rapid change in the economic environment, the company is currently providing guidance for the first quarter of 2023 and expects loan originations and pre-provision net revenue to be in the ranges below. The outlook for loan originations reflects the impact of rising rates on marketplace demand combined with continued prudent underwriting. The company plans to maintain held-for-investment loan balances in line with the fourth quarter of 2022. For 2023, the company intends to remain profitable, while investing in-period earnings into loan retention to support future earnings.
First Quarter 2023
Loan Originations$1.9B to $2.2B
Pre-Provision Net Revenue$55M to $70M

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 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 4.5 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 2022 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, January 25, 2023. 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 786729, 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 1, 2023, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 636433. 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

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: Pre-Provision Net Revenue, 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 Pre-Provision Net Revenue, 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. Pre-Provision Net Revenue is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in the fourth, 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.

3

For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables beginning on page 14 of this release.

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; our ability to realize the expected benefits from recent initiatives, including our cost reduction plan and the acquisition of a $1 billion loan portfolio; competition; overall economic conditions; the interest rate environment; 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 and Quarterly Report on Form 10-Q, each 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.

*****
4
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended% Change
December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021		Q/QY/Y
Operating Highlights:
Non-interest income$127,465 $181,237 $213,832 $189,857 $179,111 (30)%(29)%
Net interest income135,243 123,676 116,226 99,680 83,132 9 %63 %
Total net revenue262,708 304,913 330,058 289,537 262,243 (14)%— %
Non-interest expense180,044 186,219 209,386 191,204 188,220 (3)%(4)%
Pre-provision net revenue(1)
82,664 118,694 120,672 98,333 74,023 (30)%12 %
Provision for credit losses61,512 82,739 70,566 52,509 45,149 (26)%36 %
Income before income tax benefit (expense)21,152 35,955 50,106 45,824 28,874 (41)%(27)%
Income tax benefit (expense)2,439 7,243 131,954 (4,988)234 N/MNM
Net income23,591 43,198 182,060 40,836 29,108 N/MN/M
Income tax benefit from release of tax valuation allowance3,180 5,015 135,300 — — N/MN/M
Net income excluding income tax benefit(1)(2)
$20,411 $38,183 $46,760 $40,836 $29,108 (47)%(30)%
Basic EPS – common stockholders$0.22 $0.41 $1.77 $0.40 $0.29 (46)%(24)%
Diluted EPS – common stockholders$0.22 $0.41 $1.73 $0.39 $0.27 (46)%(19)%
Diluted EPS excluding income tax benefit(1)(2)
$0.19 $0.36 $0.45 $0.39 $0.27 (47)%(30)%
LendingClub Corporation Performance Metrics:
Net interest margin7.8 %8.3 %8.5 %8.3 %7.6 %
Efficiency ratio(3)
68.5 %61.1 %63.4 %66.0 %71.8 %
Return on average equity (ROE)7.2 %14.2 %33.8 %18.7 %14.1 %
Return on average total assets (ROA)1.1 %2.5 %5.5 %3.1 %2.4 %
Marketing expense as a % of loan originations1.4 %1.3 %1.6 %1.7 %1.7 %
LendingClub Corporation Capital Metrics:
Common Equity Tier 1 Capital Ratio15.8 %18.3 %20.0 %20.6 %21.3 %
Tier 1 Leverage Ratio14.1 %15.7 %16.2 %15.6 %16.5 %
Book Value per Common Share$10.93 $10.67 $10.41 $8.68 $8.41 2 %30 %
Tangible Book Value per Common Share(1)
$10.06 $9.78 $9.50 $7.75 $7.46 3 %35 %
Loan Originations (in millions)(4):
Total loan originations$2,524 $3,539 $3,840 $3,217 $3,069 (29)%(18)%
Marketplace loans$1,824 $2,386 $2,819 $2,360 $2,308 (24)%(21)%
Loan originations held for investment$701 $1,153 $1,021 $856 $761 (39)%(8)%
Loan originations held for investment as a % of total loan originations28 %33 %27 %27 %25 %
Servicing Portfolio AUM (in millions)(5):
Total servicing portfolio$16,157$15,929$14,783$13,341$12,4631 %30 %
Loans serviced for others$10,819$11,807$11,382$10,475$10,124(8)%7 %
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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
December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021		Q/QY/Y
Balance Sheet Data:
Loans and leases held for investment at amortized cost, net, excluding PPP loans$4,638,331 $4,414,347 $3,692,667 $3,049,325 $2,486,440 5 %87 %
PPP loans$66,971 $89,379 $118,794 $184,986 $268,297 (25)%(75)%
Total loans and leases held for investment at amortized cost, net(6)
$4,705,302 $4,503,726 $3,811,461 $3,234,311 $2,754,737 4 %71 %
Loans held for investment at fair value$925,938 $15,057 $20,583 $15,384 $21 N/MN/M
Total loans and leases held for investment$5,631,240 $4,518,783 $3,832,044 $3,249,695 $2,754,758 25 %104 %
Total assets$7,979,747 $6,775,074 $6,186,765 $5,574,425 $4,900,319 18 %63 %
Total deposits$6,392,553 $5,123,506 $4,527,672 $3,977,477 $3,135,788 25 %104 %
Total liabilities$6,815,453 $5,653,664 $5,107,648 $4,686,991 $4,050,077 21 %68 %
Total equity$1,164,294 $1,121,410 $1,079,117 $887,434 $850,242 4 %37 %
N/M – Not meaningful
(1)    Represents a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Financial Measures.”
(2)    Excludes fourth, third and second quarter 2022 income tax benefit of $3.2 million, $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance.
(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.
(6)    Excludes loans held for investment at fair value, which primarily consists of a loan portfolio that was acquired in the fourth quarter of 2022.

The asset quality metrics presented in the following table are for loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
As of and for the three months ended
December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021
Asset Quality Metrics:
Allowance for loan and lease losses to total loans and leases held for investment6.5 %6.3 %6.0 %5.5 %5.0 %
Allowance for loan and lease losses to total loans and leases held for investment, excluding PPP loans6.6 %6.4 %6.2 %5.8 %5.5 %
Allowance for loan and lease losses to consumer loans and leases held for investment7.3 %7.2 %6.9 %6.6 %6.4 %
Allowance for loan and lease losses to commercial loans and leases held for investment2.0 %1.9 %2.0 %1.8 %1.8 %
Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans2.2 %2.2 %2.3 %2.6 %2.6 %
Net charge-offs$37,148 $22,658 $13,987 $8,673 $5,636 
Net charge-off ratio(1)
3.0 %2.1 %1.6 %1.2 %0.9 %
(1)    Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period, excluding PPP loans.

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LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
The following table presents loans and leases held for investment at amortized cost and loans held for investment at fair value:
December 31,
2022		September 30, 2022December 31, 2021
Unsecured personal$3,866,373 $3,642,254 $1,804,578 
Residential mortgages199,601 197,776 151,362 
Secured consumer194,634 180,768 65,976 
Total consumer loans held for investment4,260,608 4,020,798 2,021,916 
Equipment finance (1)
160,319 167,447 149,155 
Commercial real estate373,501 372,406 310,399 
Commercial and industrial (2)
238,726 246,276 417,656 
Total commercial loans and leases held for investment772,546 786,129 877,210 
Total loans and leases held for investment at amortized cost5,033,154 4,806,927 2,899,126 
Allowance for loan and lease losses(327,852)(303,201)(144,389)
Loans and leases held for investment at amortized cost, net$4,705,302 $4,503,726 $2,754,737 
Loans held for investment at fair value$925,938 $15,057 $21 
Total loans and leases held for investment$5,631,240 $4,518,783 $2,754,758 
(1)    Comprised of sales-type leases for equipment.
(2)    Includes $67.0 million, $89.4 million, and $268.3 million of Paycheck Protection Program (PPP) loans as of December 31, 2022, 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)
The following tables present the allowance for loan and lease losses on loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
Three Months Ended
December 31, 2022September 30, 2022
ConsumerCommercialTotalConsumerCommercialTotal
Allowance for loan and lease losses, beginning of period$288,138 $15,063 $303,201 $228,184 $15,076 $243,260 
Credit loss expense for loans and leases held for investment61,392 407 61,799 81,935 664 82,599 
Charge-offs(38,579)(225)(38,804)(22,944)(784)(23,728)
Recoveries1,538 118 1,656 963 107 1,070 
Allowance for loan and lease losses, end of period$312,489 $15,363 $327,852 $288,138 $15,063 $303,201 
Three Months Ended
December 31, 2021
ConsumerCommercialTotal
Allowance for loan and lease losses, beginning of period$88,631 $16,105 $104,736 
Credit loss expense for loans and leases held for investment45,595 (306)45,289 
Charge-offs(5,557)(313)(5,870)
Recoveries143 91 234 
Allowance for loan and lease losses, end of period$128,812 $15,577 $144,389 
7
LENDINGCLUB CORPORATION
PAST DUE LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
The following tables present past due loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
December 31, 202230-59
Days		60-89
Days		90 or More
Days		Total Days Past Due
Unsecured personal$21,016 $16,418 $16,255 $53,689 
Residential mortgages— 254 331 585 
Secured consumer1,720 382 188 2,290 
Total consumer loans held for investment$22,736 $17,054 $16,774 $56,564 
Equipment finance$3,172 $— $859 $4,031 
Commercial real estate— 102 — 102 
Commercial and industrial (1)
— — 1,643 1,643 
Total commercial loans and leases held for investment (1)
$3,172 $102 $2,502 $5,776 
Total loans and leases held for investment at amortized cost (1)
$25,908 $17,156 $19,276 $62,340 
September 30, 202230-59
Days		60-89
Days		90 or More
Days		Total Days Past Due
Unsecured personal$14,799 $12,463 $10,601 $37,863 
Residential mortgages— — 337 337 
Secured consumer985 504 162 1,651 
Total consumer loans held for investment$15,784 $12,967 $11,100 $39,851 
Equipment finance$— $— $— $— 
Commercial real estate— 101 452 553 
Commercial and industrial (1)
— — 1,650 1,650 
Total commercial loans and leases held for investment (1)
$— $101 $2,102 $2,203 
Total loans and leases held for investment at amortized cost (1)
$15,784 $13,068 $13,202 $42,054 
December 31, 202130-59
Days		60-89
Days		90 or More
Days		Total Days Past Due
Unsecured personal$3,624 $2,600 $1,676 $7,900 
Residential mortgages142 92 1,069 1,303 
Secured consumer171 53 3,011 3,235 
Total consumer loans held for investment$3,937 $2,745 $5,756 $12,438 
Equipment finance$— $— $— $— 
Commercial real estate104 — 609 713 
Commercial and industrial (1)
— — 1,410 1,410 
Total commercial loans and leases held for investment (1)
$104 $— $2,019 $2,123 
Total loans and leases held for investment at amortized cost (1)
$4,041 $2,745 $7,775 $14,561 
(1)    Past due PPP loans are excluded from the tables.
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LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months EndedChange (%)
 December 31,
2022		September 30,
2022		December 31,
2021		Q4 2022
vs
Q4 2021		Q4 2022
vs
Q3 2022
Non-interest income:
Origination fees$100,692 $127,142 $118,353 (15)%(21)%
Servicing fees20,169 23,760 20,940 (4)%(15)%
Gain on sales of loans18,352 23,554 20,569 (11)%(22)%
Net fair value adjustments(15,774)(619)10,700 (247)%N/M
Marketplace revenue123,439 173,837 170,562 (28)%(29)%
Other non-interest income4,026 7,400 8,549 (53)%(46)%
Total non-interest income127,465 181,237 179,111 (29)%(30)%
Total interest income173,999 143,220 97,655 78 %21 %
Total interest expense38,756 19,544 14,523 167 %98 %
Net interest income135,243 123,676 83,132 63 %9 %
Total net revenue262,708 304,913 262,243 — %(14)%
Provision for credit losses61,512 82,739 45,149 36 %(26)%
Non-interest expense:
Compensation and benefits87,768 84,916 78,741 11 %3 %
Marketing35,139 46,031 50,708 (31)%(24)%
Equipment and software13,200 12,491 12,019 10 %6 %
Occupancy4,698 5,051 4,706 — %(7)%
Depreciation and amortization11,554 10,681 10,462 10 %8 %
Professional services10,029 11,943 12,699 (21)%(16)%
Other non-interest expense17,656 15,106 18,885 (7)%17 %
Total non-interest expense180,044 186,219 188,220 (4)%(3)%
Income before income tax benefit21,152 35,955 28,874 (27)%(41)%
Income tax benefit2,439 7,243 234 N/MN/M
Net income$23,591 $43,198 $29,108 (19)%(45)%
Net income per share:
Net income per share attributable to common stockholders – Basic$0.22 $0.41 $0.29 (24)%(46)%
Net income per share attributable to common stockholders – Diluted$0.22 $0.41 $0.27 (19)%(46)%
Weighted-average common shares – Basic105,650,177 104,215,594 100,320,691 5 %1 %
Weighted-average common shares – Diluted105,984,612 105,853,938 108,096,823 (2)%— %
N/M – Not meaningful

9
LENDINGCLUB CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)

Year Ended December 31,
 20222021Change (%)
Non-interest income:
Origination fees$499,179 $416,839 20 %
Servicing fees80,609 87,639 (8)%
Gain on sales of loans95,335 70,116 36 %
Net fair value adjustments8,503 3,986 113 %
Marketplace revenue683,626 578,580 18 %
Other non-interest income28,765 27,219 6 %
Total non-interest income712,391 605,799 18 %
Total interest income557,340 292,832 90 %
Total interest expense82,515 80,001 3 %
Net interest income474,825 212,831 123 %
Total net revenue1,187,216 818,630 45 %
Provision for credit losses267,326 138,800 93 %
Non-interest expense:
Compensation and benefits339,397 288,390 18 %
Marketing197,747 156,142 27 %
Equipment and software49,198 39,490 25 %
Occupancy21,977 24,249 (9)%
Depreciation and amortization43,831 44,285 (1)%
Professional services50,516 47,572 6 %
Other non-interest expense64,187 61,258 5 %
Total non-interest expense766,853 661,386 16 %
Income before income tax benefit153,037 18,444 730 %
Income tax benefit136,648 136 N/M
Net income$289,685 $18,580 N/M
Net income per share:
Net income per share attributable to common stockholders – Basic$2.80 $0.19 N/M
Net income per share attributable to common stockholders – Diluted$2.79 $0.18 N/M
Weighted-average common shares – Basic103,547,305 97,486,754 6 %
Weighted-average common shares – Diluted104,001,288 102,147,353 2 %
N/M – Not meaningful

10
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1)
Three Months Ended
December 31, 2022		Three Months Ended
September 30, 2022		Three Months Ended
December 31, 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$1,139,887 $10,595 3.72 %$893,655 $5,017 2.25 %$710,472 $469 0.26 %
Securities available for sale at fair value349,512 3,359 3.84 %396,556 3,820 3.85 %265,140 3,071 4.63 %
Loans held for sale114,851 5,724 19.93 %126,487 5,879 18.59 %184,708 7,153 15.49 %
Loans and leases held for investment:
Unsecured personal loans3,825,808 125,872 13.16 %3,268,649 110,446 13.52 %1,542,285 60,384 15.66 %
Commercial and other consumer loans1,164,326 15,197 5.22 %1,135,474 13,582 4.78 %1,381,041 16,580 4.80 %
Loans and leases held for investment at amortized cost4,990,134 141,069 11.31 %4,404,123 124,028 11.26 %2,923,326 76,964 10.53 %
Loans held for investment at fair value (3)
308,570 10,862 14.08 %17,763 791 17.83 %24,184 762 12.60 %
Total loans and leases held for investment5,298,704 151,931 11.47 %4,421,886 124,819 11.29 %2,947,510 77,726 10.55 %
Retail and certificate loans held for investment at fair value66,469 2,390 14.38 %104,010 3,685 14.17 %262,548 9,236 14.07 %
Total interest-earning assets6,969,423 173,999 9.99 %5,942,594 143,220 9.64 %4,370,378 97,655 8.94 %
Cash and due from banks and restricted cash64,907 58,411 73,258 
Allowance for loan and lease losses(314,861)(254,849)(125,120)
Other non-interest earning assets613,664 597,169 465,010 
Total assets$7,333,133 $6,343,325 $4,783,526 
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts$1,929,260 $7,500 1.54 %$2,192,904 $4,575 0.83 %$2,146,687 $1,716 0.32 %
Savings accounts and certificates of deposit3,576,205 28,251 3.13 %2,260,170 10,609 1.86 %580,361 900 0.62 %
Interest-bearing deposits5,505,465 35,751 2.58 %4,453,074 15,184 1.35 %2,727,048 2,616 0.38 %
Short-term borrowings3,875 63 6.52 %6,848 87 5.09 %36,823 561 6.08 %
Advances from PPPLF77,199 69 0.36 %104,897 93 0.36 %342,335 307 0.36 %
Retail notes, certificates and secured borrowings66,469 2,390 14.38 %104,010 3,685 14.17 %262,548 9,236 14.07 %
Structured Program borrowings9,956 159 6.39 %13,859 225 6.50 %77,354 1,642 8.49 %
Other long-term debt14,804 324 8.76 %15,300 270 7.04 %15,514 161 4.15 %
Total interest-bearing liabilities5,677,768 38,756 2.71 %4,697,988 19,544 1.65 %3,461,622 14,523 1.68 %
11
LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1)
Three Months Ended
December 31, 2022		Three Months Ended
September 30, 2022		Three Months Ended
December 31, 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 deposits251,686 284,134 211,692 
Other liabilities266,558 250,086 282,339 
Total liabilities$6,196,012 $5,232,208 $3,955,653 
Total equity$1,137,121 $1,111,117 $827,873 
Total liabilities and equity$7,333,133 $6,343,325 $4,783,526 
Interest rate spread7.28 %7.99 %7.26 %
Net interest income and net interest margin$135,243 7.76 %$123,676 8.32 %$83,132 7.61 %
(1)    Consolidated presentation reflects intercompany eliminations.
(2)    Nonaccrual loans and any related income are included in their respective loan categories.
(3)    Fourth quarter 2022 average balance includes the acquisition of a $1.05 billion outstanding principal loan portfolio in December 2022.

12
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
December 31,
2022		December 31, 2021
Assets
Cash and due from banks$23,125 $35,670 
Interest-bearing deposits in banks1,033,905 651,456 
Total cash and cash equivalents1,057,030 687,126 
Restricted cash67,454 76,460 
Securities available for sale at fair value ($399,668 and $256,170 at amortized cost, respectively)
345,702 263,530 
Loans held for sale (includes $110,400 and $142,370 at fair value, respectively)
110,400 391,248 
Loans and leases held for investment5,033,154 2,899,126 
Allowance for loan and lease losses(327,852)(144,389)
Loans and leases held for investment, net4,705,302 2,754,737 
Loans held for investment at fair value925,938 21,240 
Retail and certificate loans held for investment at fair value55,425 229,719 
Property, equipment and software, net136,473 97,996 
Goodwill75,717 75,717 
Other assets500,306 302,546 
Total assets$7,979,747 $4,900,319 
Liabilities and Equity
Deposits:
Interest-bearing$6,158,560 $2,919,203 
Noninterest-bearing233,993 216,585 
Total deposits6,392,553 3,135,788 
Short-term borrowings2,619 27,780 
Advances from Paycheck Protection Program Liquidity Facility (PPPLF)64,154 271,933 
Retail notes, certificates and secured borrowings at fair value55,425 229,719 
Payable on Structured Program borrowings8,085 65,451 
Other long-term debt— 15,455 
Other liabilities292,617 303,951 
Total liabilities6,815,453 4,050,077 
Equity
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; — shares issued and outstanding
— — 
Common stock, $0.01 par value; 180,000,000 shares authorized; 106,546,995 and 101,043,924 shares issued and outstanding, respectively
1,065 1,010 
Additional paid-in capital1,628,590 1,559,616 
Accumulated deficit(427,745)(717,430)
Accumulated other comprehensive income (loss)(37,616)7,046 
Total equity1,164,294 850,242 
Total liabilities and equity$7,979,747 $4,900,319 

13
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
Pre-Provision Net Revenue
For the three months endedFor the year ended
December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021		December 31,
2022		December 31,
2021
GAAP Net income$23,591 $43,198 $182,060 $40,836 $29,108 $289,685 $18,580 
Less: Provision for credit losses(61,512)(82,739)(70,566)(52,509)(45,149)(267,326)(138,800)
Less: Income tax benefit (expense)2,439 7,243 131,954 (4,988)234 136,648 136 
Pre-provision net revenue$82,664 $118,694 $120,672 $98,333 $74,023 $420,363 $157,244 

For the three months endedFor the year ended
December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021		December 31,
2022		December 31,
2021
Non-interest income$127,465 $181,237 $213,832 $189,857 $179,111 $712,391 $605,799 
Net interest income135,243 123,676 116,226 99,680 83,132 474,825 212,831 
Total net revenue262,708 304,913 330,058 289,537 262,243 1,187,216 818,630 
Non-interest expense(180,044)(186,219)(209,386)(191,204)(188,220)(766,853)(661,386)
Pre-provision net revenue82,664 118,694 120,672 98,333 74,023 420,363 157,244 
Provision for credit losses(61,512)(82,739)(70,566)(52,509)(45,149)(267,326)(138,800)
Income before income tax benefit21,152 35,955 50,106 45,824 28,874 153,037 18,444 
Income tax benefit2,439 7,243 131,954 (4,988)234 136,648 136 
GAAP Net income$23,591 $43,198 $182,060 $40,836 $29,108 $289,685 $18,580 

Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit
For the three months endedFor the
year ended
December 31,
2022		September 30,
2022		June 30,
2022		December 31,
2022
GAAP Net income$23,591 $43,198 $182,060 $289,685 
Less: Income tax benefit from release of tax valuation allowance3,180 5,015 135,300 143,495 
Net income excluding income tax benefit$20,411 $38,183 $46,760 $146,190 
GAAP Diluted EPS – common stockholders$0.22 $0.41 $1.73 $2.79 
(A)Income tax benefit from release of tax valuation allowance$3,180 $5,015 $135,300 $143,495 
(B)Weighted-average common shares – Diluted105,984,612 105,853,938 105,042,626 104,001,288 
(A/B)Diluted EPS impact of income tax benefit$0.03 $0.05 $1.29 $1.38 
Diluted EPS excluding income tax benefit$0.19 $0.36 $0.44 $1.41 

14
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Continued)
(In thousands, except share and per share data)
(Unaudited)
Tangible Book Value Per Common Share
December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021
GAAP common equity$1,164,294 $1,121,410 $1,079,117 $887,434 $850,242 
Less: Goodwill(75,717)(75,717)(75,717)(75,717)(75,717)
Less: Intangible assets(16,334)(17,512)(18,690)(19,886)(21,181)
Tangible common equity$1,072,243 $1,028,181 $984,710 $791,831 $753,344 
Book value per common share
GAAP common equity$1,164,294 $1,121,410 $1,079,117 $887,434 $850,242 
Common shares issued and outstanding106,546,995 105,088,761 103,630,776 102,194,037 101,043,924 
Book value per common share$10.93 $10.67 $10.41 $8.68 $8.41 
Tangible book value per common share
Tangible common equity$1,072,243 $1,028,181 $984,710 $791,831 $753,344 
Common shares issued and outstanding106,546,995 105,088,761 103,630,776 102,194,037 101,043,924 
Tangible book value per common share$10.06 $9.78 $9.50 $7.75 $7.46 
15