Grew Originations +21%, Revenue +20%, and Total Assets +13% in First Quarter Compared to Prior Year
Exceeded $100 Billion in Lifetime Originations
SAN FRANCISCO, April 29, 2025 -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the first quarter ended March 31, 2025.
"We're off to a great start for 2025, growing total net revenue and originations more than 20% year over year to cross $100 billion in lifetime originations," said Scott Sanborn, LendingClub CEO. "We'll continue to build on that momentum with additional investments in marketing to further originations growth while maintaining strong credit discipline and innovating on member products and experiences."
First Quarter 2025 Results
Highlights:
- Achieved $2.0 billion in origination volume
- Improved marketplace loan sales pricing for fifth straight quarter
- Delivered four years of credit outperformance enabled by proprietary underwriting models informed by billions of cells of data through economic cycles
- Improved consumer held-for-investment portfolio net charge-off rate to 4.7%, compared to 8.1% in the prior year
- Closed first rated Structured Certificates transaction for $100 million with a major insurance company
- Enhanced popular TopUp feature to enable refinancing of competitor's loans
- Acquired the intellectual property and select talent behind Cushion, an AI-powered spending intelligence platform
- Purchased a San Francisco headquarters in April at a fraction of the pre-pandemic cost with potential future upside and no material financial impact
Balance Sheet:
- Total assets of $10.5 billion increased 13% compared to $9.2 billion in the prior year, driven primarily by the success of the Structured Certificates program as well as the purchase of a $1.3 billion LendingClub-issued loan portfolio in the third quarter of 2024.
- Deposits of $8.9 billion increased 18% compared to $7.5 billion in the prior year, driven by the continued success of our savings and CD offerings.
- Multi-award winning LevelUp Savings account, which launched in the third quarter of 2024, reached $1.9 billion in balances at quarter end.
- 87% of total deposits are FDIC-insured.
- Robust available liquidity of $3.1 billion.
- Strong capital position with a consolidated Tier 1 leverage ratio of 11.7% and a CET1 capital ratio of 17.8%.
- Book value per common share was $11.95, compared to $11.40 in the prior year.
- Tangible book value per common share was $11.22, compared to $10.61 in the prior year.
Financial Performance:
- Loan originations grew 21% to $2.0 billion, compared to $1.6 billion in the prior year, driven by the successful execution of product and marketing initiatives combined with strong marketplace investor demand.
- Total net revenue increased 20% to $217.7 million, compared to $180.7 million in the prior year, driven by higher net interest income on a larger balance sheet with lower deposit funding costs and improved marketplace loan sales pricing.
- Net Interest Margin increased to 5.97%, compared to 5.75% in the prior year.
- Provision for credit losses of $58.1 million, compared to $31.9 million in the prior year, primarily driven by a 136% increase in held-for-investment whole loan retention and additional economic qualitative allowance to reflect macroeconomic uncertainty.
- Improved net charge-offs in the held-for-investment at amortized cost loan portfolio to $48.9 million, compared to $80.5 million in the prior year.
- Net income of $11.7 million, compared to $12.3 million in the prior year.
- Net income for the first quarter of 2025 included the negative impact of $8.1 million on allowance and net fair value adjustments due to macroeconomic uncertainty.
- Return on Equity (ROE) of 3.5%, with a Return on Tangible Common Equity (ROTCE) of 3.7%, compared to an ROE of 3.9% in the prior year, with an ROTCE of 4.2%.
- Pre-Provision Net Revenue (PPNR) increased 52% to $73.8 million, compared to $48.5 million in the prior year.
Three Months Ended | ||||||
($ in millions, except per share amounts) | March 31, | December 31, | March 31, | |||
Total net revenue | $ 217.7 | $ 217.2 | $ 180.7 | |||
Non-interest expense | 143.9 | 142.9 | 132.2 | |||
Pre-provision net revenue (1) | 73.8 | 74.3 | 48.5 | |||
Provision for credit losses | 58.1 | 63.2 | 31.9 | |||
Income before income tax expense | 15.7 | 11.1 | 16.5 | |||
Income tax expense | (4.0) | (1.4) | (4.3) | |||
Net income | $ 11.7 | $ 9.7 | $ 12.3 | |||
Diluted EPS | $ 0.10 | $ 0.08 | $ 0.11 | |||
(1) | See page 3 of this release for additional information on our use of non-GAAP financial measures. |
For a calculation of Pre-Provision Net Revenue, Tangible Book Value Per Common Share, and Return on Tangible Common Equity, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.
Financial Outlook
Second Quarter 2025 | ||
Loan originations | $2.1B to $2.3B | |
Pre-provision net revenue (PPNR) | $70M to $80M |
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 hundreds of billions of cells of data and over $100 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 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 first quarter 2025 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, April 29, 2025. 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 (404) 975-4839, or outside the U.S. +1 (833) 470-1428, with Access Code 691326, 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 May 6, 2025, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 161474. LendingClub has used, and intends to use, its investor relations website, X (formerly Twitter) handles (@LendingClub and @LendingClubIR) 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
This News is brought to you by Qube Mark, your trusted source for the latest updates and insights in marketing technology. Stay tuned for more groundbreaking innovations in the world of technology.
