Grew Originations +13%, Revenue +17%, and Total Assets +20% in Fourth Quarter Compared to Prior Year
Executed $400 Million Loan Sale out of the Held-for-Sale Portfolio to a New Bank Buyer
SAN FRANCISCO, Jan. 28, 2025 -- 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, 2024.
"We executed well in 2024, exiting the year with growth in originations, continued credit outperformance, successful new products and experiences, and more than five million members," said Scott Sanborn, LendingClub CEO. "From this strong foundation, we are well-positioned to accelerate as we move through 2025 and further grow originations, revenue, and return on equity while continuing to innovate for our members."
Fourth Quarter 2024 Results
Balance Sheet:
- Total assets of $10.6 billion increased 20% compared to $8.8 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 $9.1 billion increased 24% compared to $7.3 billion in the prior year, driven by the continued success of our savings and CD offerings.
- LevelUp Savings, launched in the third quarter of 2024, reached balances of nearly $1.2 billion at year end.
- 87% of total deposits are FDIC-insured.
- Robust available liquidity of $3.3 billion.
- Strong capital position with a consolidated Tier 1 leverage ratio of 11.0% and a CET1 capital ratio of 17.3%.
- Book value per common share was $11.83, compared to $11.34 in the prior year.
- Tangible book value per common share was $11.09, compared to $10.54 in the prior year.
Financial Performance:
- Loan originations increased 13% to $1.85 billion, compared to $1.63 billion in the prior year, driven by the successful execution of new consumer loan initiatives combined with strong marketplace investor demand.
- Total net revenue increased 17% to $217.2 million, compared to $185.6 million in the prior year, driven by improved marketplace loan sales pricing and higher net interest income on a larger balance sheet.
- Provision for credit losses of $63.2 million, compared to $41.9 million in the prior year, primarily driven by higher held-for-investment whole loan retention.
- Improved net charge-offs in the held-for-investment at amortized cost loan portfolio to $46.0 million, compared to $82.5 million in the prior year.
- Net charge-off ratio of 4.5% compared to 6.6% in the prior year.
- Net income of $9.7 million, compared to $10.2 million in the prior year.
- Net income for the fourth quarter of 2024 includes a one-time, post-tax $3.2 million non-cash impairment expense, as a result of the Tally acquisition, for internally-developed software.
- Return on Equity (ROE) of 2.9%, with a Return on Tangible Common Equity (ROTCE) of 3.1%, compared to an ROE of 3.3% in the prior year, with an ROTCE of 3.6%.
- Pre-Provision Net Revenue (PPNR) increased 34% to $74.3 million, compared to $55.6 million in the prior year.
Three Months Ended | Year Ended | |||||||||
($ in millions, except per share amounts) | December 31, | September 30, | December 31, | December 31, | December 31, | |||||
Total net revenue | $ 217.2 | $ 201.9 | $ 185.6 | $ 787.0 | $ 864.6 | |||||
Non-interest expense | 142.9 | 136.3 | 130.0 | 543.7 | 566.4 | |||||
Pre-provision net revenue (1) | 74.3 | 65.5 | 55.6 | 243.3 | 298.2 | |||||
Provision for credit losses | 63.2 | 47.5 | 41.9 | 178.3 | 243.6 | |||||
Income before income tax expense | 11.1 | 18.0 | 13.7 | 65.1 | 54.6 | |||||
Income tax expense | (1.4) | (3.6) | (3.5) | (13.7) | (15.7) | |||||
Net income | $ 9.7 | $ 14.5 | $ 10.2 | $ 51.3 | $ 38.9 | |||||
Diluted EPS | $ 0.08 | $ 0.13 | $ 0.09 | $ 0.45 | $ 0.36 | |||||
(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
First Quarter 2025 | ||
Loan originations | $1.8B to $1.9B | |
Pre-provision net revenue (PPNR) | $60M to $70M | |
Fourth Quarter 2025 | ||
Loan originations | >$2.3B | |
Return on tangible common equity (ROTCE) | >8% |
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 $95 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 fourth quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, January 28, 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 507312, 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 4, 2025, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 167509. 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
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