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Fourth Quarter 2024 Results January 28, 2025
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Disclaimer 2 Some of the statements in this presentation, including statements regarding our competitive advantages, loan and financial performance,business outlook, and demand for our loan programs, 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 new and retain existing borrowers and platform investors; competition; overall economic conditions; the interest rate environment; the regulatory environment; default rates and those factors set forth in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K 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. This presentation contains non-GAAP financial measures relating to our performance – Risk-Adjusted Revenue, Pre-Provision NetRevenue and Tangible Book Value Per Common Share and Return on Tangible Common Equity. Our non-GAAP financial measures have limitations as analytical tools, are not prepared under any comprehensive set of accounting rules or principles and should not be considered inisolation or as a substitute for our results under accounting principles generally accepted in the United States (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.You can find the reconciliation of thesenon-GAAP financial measure to the most directly comparable GAAP measures on pages 16, 19, 20 and 21, as applicable, of this presentation. We do not provide a reconciliation of the forward-looking Pre-Provision Net Revenue and Return on Tangible Common Equity, as disclosed on page 18 of this presentation, to the most directly comparable GAAP reported financial measure on a forward-looking basis because we are unable to predict future provision expense and goodwill, respectively, with reasonable certainty without unreasonable effort. LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC.
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Award-Winning, Member-Focused Digital Marketplace Bank 3 1) Total members and originations based on lifetime volume across all consumer products as of December 31, 2024. “Members” defined as consumers who have taken a LendingClub product. 2) Based on over 68,000 reviews collected and authenticated by BazaarVoice. 3) LendingClub internal data as of December 31, 2024. NPS measures customers’ willingness to not only return for another purchase or service but also make a recommendation to their family, friends or colleagues. Members1 5+ Million Originations1 $95+ Billion Best Personal Loan for Debt Consolidation Best Checking Account Overall Average Customer Review2 4.83 Out of 5 stars Net Promoter Score (NPS) 3 85 Best High Yield Savings Account
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11% 13% 15% 17% 19% 21% 23% Nov 09 Nov 10 Nov 11 Nov 12 Nov 13 Nov 14 Nov 15 Nov 16 Nov 17 Nov 18 Nov 19 Nov 20 Nov 21 Nov 22 Nov 23 Nov 24 $750 $850 $950 $1,050 $1,150 $1,250 $1,350 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Nov-21 Nov-22 Nov-23 Nov-24 Record High Credit Card Interest Rates2 (November 2009 to November 2024) Record High Outstanding Revolving Consumer Credit 1 (in thousands; November 2009 to November 2024, seasonally adjusted) Total Addressable Market Has Never Been Greater 1) Revolving Consumer Credit Owned and Securitized, seasonally adjusted, G.19 Release, Federal Reserve Bank of St. Louis, November 2024 2) Commercial Bank Interest Rate on Credit Card Plans, G.19 Release, Federal Reserve Bank of St. Louis, November 2024 4 $1.36T Total outstanding revolving consumer credit (November 2024) 21.47% Commercial bank average interest rate on credit card plans (November 2024)
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LendingClub Offers Consumers a Compelling Value Proposition 5 47% of American households carry over $1.3 trillion of revolving debt1,2 Since November 2021, average credit card rates have increased by more than 700bps to nearly 22% 1 A quarter of Americans direct 20-40% of their paycheck toward paying off credit card debt3 Historically High & Costly Credit Card Debt Members save on average over 30% when they consolidate credit card debt through LendingClub 4 Members who consolidate debt see an average 48-point improvement in their credit score 5 Approved applications typically funded in less than 24 hours 6 LendingClub Delivers Compelling Value Our Net Promoter Score (NPS) is 85 and our mobile app is rated 4.8 in the Apple app store 7 87% of our members feel more confident managing their debt after joining us 3 83% of our members want to do more with us And Our Members Love Us for It 1. Bankrate.com. 2. Revolving Consumer Credit Owned and Securitized, seasonally adjusted, G.19 Release, Federal Reserve Bank of St. Louis, November 2024. 3. LendingClub Consumer Debt Survey conducted with Propeller Insights of 1,013 consumers May 13-21, 2024. 4. On average, prime Personal Loans from LendingClub Bank are offered at an APR of 14.3%, based an analysis of historical borrower data between April 2024 and June 2024. This is compared to an average credit card APR of 21.8% for August 2024, according to Commercial Bank Interest Rate on Credit Card Plans, G.19 Release, Federal Reserve Bank of St. Louis. 5. Based on borrowers who were issued a loan between October 2021 and May 2023, and have completed a Balance Transfer loan for debt consolidation. This assumes borrowers refinance at least 51% of their outstanding debt within the first three months of taking a loan, and no new debt is incurred. Data is subject to change. 6. LendingClub internal data. 7. LendingClub internal data as of December 31, 2024. NPS measures customers’ willingness to not only return for another purchase or service but also make a recommendation to their family, friends or colleagues.
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Consumer Strategy: Building Lifetime Lending Relationships 6 1Acquire new members through our core personal loans franchise Competitive rates / terms Compelling value Proprietary underwriting Differentiated features Membership benefits World-class experience 2Drive member engagement with compelling products, tools, and features Mobile app combining lending and deposits Tools like DebtIQ to increase transparency and highlight value High-engagement products like LevelUp Savings Member Growth Member Performance 3Offer additional products and features to meet their evolving needs Highlight existing products Launch new products that uniquely meet member needs Offer an integrated system of products that work together to unlock additional member value Deeper Relationship
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7 Products Designed to Deeply Engage Members & Improve Financial Outcomes Award-winning high yield savings account that rewards members for positive savings behavior Competitive base APY with a higher rate for members who contribute at least $250 per month into their savings account More than 27,000 accounts totaling over $1.2 billion in deposits since August 2024 launch1 ~70% of LevelUp account holders, representing ~90% of total balances, are meeting the $250 monthly savings threshold 1 An easy way for members to add funds to their existing loan while maintaining a single monthly payment 1. As of December 31, 2024 Reduces borrower’s monthly payment 20-30% due to extended term ~80% increase in issuance per member compared to offering a repeat personal loan Net Promoter Score of 821 MEMBER FEEDBACK: “I LOVE LendingClub. You’ve helped me out many times over the years and this new ability to lower my interest rate, while getting extra cash with a lower payment is awesome.” Best Personal Loan for Debt Consolidation
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Strategically Positioned for Long-term Success Fintechs Traditional Banks Economics Ability to efficiently serve a broad range of customers Industry-leading marketing efficiency; 5M members ✓ ✓ ✗ Capital-light, high-ROE marketplace earnings stream $74.8M Non-Interest Income ✓ ✓ ✗ Profitable earnings via loan portfolio $142.4M Net Interest Income ✓ ✗ ✓ Lower-cost deposit funding 4.33% avg. cost of interest-bearing deposits ✓ ✗ ✓ Scale & Scalability National digital-first consumer footprint Multi-award-winning digital experience ✓ ✓ ✗ Vast data advantage from serving millions of PL customers 150B+ cells of data; 2K+ attributes; 15+ years ✓ ✗ ✗ Unencumbered by high-cost branches or legacy systems Tech-first highly automated marketplace platform ✓ ✓ ✗ Bank balance sheet growth 44% CAGR since bank acquisition in Q1’21 ✓ ✗ ✓ Resiliency Recurring revenue stream 74% recurring revenue (NII + Servicing Fees) ✓ ✗ ✓ Stability of funding Lower-cost deposits (87% insured) and diverse investor funding; with $3.3B in additional borrowing capacity available ✓ ✗ ✓ Clear and consistent regulatory framework Strong governance and compliance infrastructure ✓ ✗ ✓ 8 1 1) Data as of December 31, 2024; all financials quarterly unless otherwise noted
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4Q24 Highlights: Achieved Financial Targets 9 4Q24 Guidance Targets Actuals Commentary Q4 Total Originations $1.8B to $1.9B $1.85B Total originations of $1.85B consisting of approximately: $605M of Held-for-Investment loans $575M of marketplace whole-loan sales $560M through the structured certificate program $110M of Held-for-Sale extended seasoning loans Q4 Pre-Provision Net Revenue (PPNR)1 $60M to $70M $74.3M Pre-Provision Net Revenue driven by: Continued improvement in loan sales prices due to strong loan buyer demand, including a $400M loan sale to a new bank buyer Higher Net Interest Income driven by higher average interest earning assets and lower deposit funding costs 1) PPNR is a non-GAAP financial measure. See pages 2, 19, 20 and 21 for additional information on our use of non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measures.
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1.0% 0.8%0.8% 1.9% 1.6%1.8% 0% 1% 2% 3% 4% 5% 6% 7% 1.4%1.3% 1.3% 2.4% 2.2% 2.3% 0% 1% 2% 3% 4% 5% 6% 7% 2.4% 2.4% 2.4% 4.7% 4.4% 4.3% 0% 1% 2% 3% 4% 5% 6% 7% Continued Credit Outperformance vs. Competitive Set 10 LendingClub vs. Competitive Set: 30-day+ Delinquencies & Hardships at Month on Book 9 by Quarterly Vintage1,2 1) This data is provided by dv01 to be used for informational purposes only. dv01 is not liable for use of this data. The data is the property and confidential information of dv01. Distribution outside of this presentation is prohibited. 2) Delinquencies include 30+ day delinquencies for each respective quarterly vintage at month on book 9, including loans that are actively in hardship plans. 3) Competitive set includes marketplace lenders and direct competitors. LendingClub Competitive Set3 FICO 660-719 FICO 720-779 FICO 780-850 46% 44% 50%
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Proven Multiple Loan Disposition Channels Available to Optimize In-Period Earnings and Return on Capital 11 Graphic is for illustrative purposes only 1) Loans in Extended Seasoning are categorized as Held for Sale; It is the Company’s intention to sell these loans before maturity, but for comparative purposes the above chart depicts lifetime economics. 2) Day-1 Contribution = Day-1 Revenue – variable expenses – provision for loan losses; Post Day-1 Contribution = Total net revenue – variable expenses – provision for loan losses – Day-1 Contribution. $0 WHOLE LOAN SALES STRUCTURED CERTIFICATES EXTENDED SEASONING1 HELD FOR INVESTMENT LIFETIME VALUE (Illustrative Economics) HIGHER Day-1 Contribution LOWER lifetime value, capital usage, and credit risk LOWER Day-1 Contribution HIGHER lifetime value, capital usage, and credit risk Maximum LTV if held to maturityDay-1 Contribution2 Post Day-1 Contribution2 Most capital efficient Highly scalable Serves broadest credit spectrum Preferred structure for bank partners Credit risk remote for LC Highest returns on risk- based capital Removes friction for loan investors Preferred structure for private credit Highest Post Day-1 Contribution Not marketplace dependent Provides investors opportunity for larger purchases Strong returns while on balance sheet No CECL provision Post Day-1 Contribution Day-1 CECL Provision Impact
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4Q23 2Q241Q24 $1,646 $1,813 $1,630 Whole Loan Sales 20% Structured Certificate Program2 48% Ext. Seasoning HFS 15% Whole Loan Sales 22% Structured Certificate Program2 61% Ext. Seasoning HFS 5% Retained HFI 12% Whole Loan Sales 15% Structured Certificate Program2 49% Ext. Seasoning HFS 18% Retained HFI 19% 3Q24 $1,913 Whole Loan Sales 17% Structured Certificate Program2 43% Ext. Seasoning HFS 12% Retained HFI 27%Retained HFI 17% 4Q24 $1,846 Whole Loan Sales 31% Structured Certificate Program2 30% Ext. Seasoning HFS 6% Retained HFI 33% Ext. Seasoning HFS + Retained HFI 40% Whole Loan Sales + Structured Certificate Program2 60% 1Q25 Estimate 13% Year-Over-Year Growth in 4Q’24 Originations Growth in whole loan sales to banks and Held-for-investment loans 12 Consumer Loan Originations1 ($ in millions) 1) There may be differences between the sum of the quarterly results due to rounding. 2) Structured Certificate Program loans are sold into a trust. In most cases, LendingClub retains a 5% vertical slice of the loan pool as a security as well as a risk-remote senior note, also in the form of a security. $1,800 - $1,900 +13% vs. 4Q23
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17% Year-Over-Year Revenue Increase Driven by both Marketplace Revenue and Net Interest Income Total Net Revenue ($ in millions) 13 1) Risk-Adjusted Revenue is a non-GAAP financial measure and is equal to Total Net Revenue less Provision for Credit Losses, as reflected and reconciledabove to Total Net Revenue (the most directly comparable GAAP measure).We believe Risk-Adjusted Revenue is an important measurereflecting the credit risk-adjusted financial performance of our business operations. NET INTEREST INCOME 8% year-over-year increase in Net Interest Income driven by higher average interest-earning assets NON-INTEREST INCOME 38% year-over-year increase driven by growth in origination volumes and continued improvement in loan sales prices due to strong loan buyer demand, which included banks Net Interest Income Non-Interest Income Risk-Adjusted Revenue1 $143.7 $154.0 $154.3 RISK-ADJUSTED REVENUE1 7% year-over-year increase driven by revenue growth described above, partially offset by higher loan retention during the quarter driving higher day-1 credit provision Provision for Credit Losses ($41.9) ($63.2)($47.5) $131.5 $140.2 $142.4 $54.1 $61.6 $74.8 $185.6 $201.9 $217.2 4Q23 3Q24 4Q24 +17% vs. 4Q23
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Average Balances3 Average Yield3 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Cash and Other Interest-Earning Assets1 $1,191 $1,217 $976 $940 $1,194 5.47% 5.42% 5.40% 5.30% 4.76% Securities Available for Sale at Fair Value $1,198 $1,973 $2,407 $3,047 $3,390 6.99% 7.17% 7.13% 6.89% 6.76% Loans Held for Sale at Fair Value $502 $467 $838 $899 $673 12.66% 12.58% 12.75% 13.49% 12.30% Unsecured Consumer Loans $3,890 $3,518 $3,243 $3,045 $3,081 13.18% 13.20% 13.37% 13.57% 13.50% Secured Consumer, Commercial & PPP Loans $1,126 $1,116 $1,098 $1,058 $1,023 6.05% 5.86% 5.97% 5.86% 5.55% Loans Held for Investment at Fair Value $307 $256 $384 $973 $1,153 13.07% 13.12% 12.55% 10.83% 10.49% Total Interest-Earning Assets $8,213 $8,548 $8,946 $9,962 $10,514 10.15% 9.70% 9.82% 9.65% 9.15% Interest-Bearing Deposits $6,802 $7,125 $7,547 $8,037 $9,020 4.45% 4.74% 4.81% 4.79% 4.33% All Other Interest-Bearing Liabilities2 $24 $27 $57 $487 $1 9.74% 7.53% 6.45% 2.69% nm Total Interest-Bearing Liabilities $6,826 $7,151 $7,603 $8,524 $9,021 4.47% 4.75% 4.82% 4.67% 4.33% Net Interest Margin 6.40% 5.75% 5.75% 5.63% 5.42% 28% Growth in Average Interest-Earning Assets with Attractive Net Interest Margin 14 1) Includes cash, cash equivalents, restricted cash and all other interest-earning assets. 2) In the third quarter, the seller provided low-cost short-term financing to support the $1.3B loan portfolio purchase of previously issued LendingClub loans 3) There may be differences between the sum of the quarterly results due to rounding. $400M loan sale to a bank buyer from extended seasoning portfolio Deposit cost improvement aided by planned exit of a high-cost, legacy commercial deposit customer 28% YoY growth in interest-earning assets Higher average cash balances causing temporary compression in Net Interest Margin
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Disciplined Expense Management and Revenue Growth Driving Improved Efficiency Ratio 15 1) There may be differences between the sum of the quarterly results due to rounding. 2) 4Q24 included a non-cash $4.4 million pre-tax impairment of internally developed software related to the Tally code-base acquisition Total Non-Interest Expense1 ($ in millions) Efficiency Ratio (Non-Interest Expense as a % of Net Revenue) 4Q23 1Q24 2Q24 3Q24 4Q24 Compensation& Benefits 58.6 59.6 56.5 57.4 58.7 Marketing 23.5 24.1 26.7 26.2 23.4 Equipment & Software 13.2 12.7 12.4 12.8 13.4 Depreciation & Amortization2 12.0 12.7 13.1 13.3 19.7 Professional Services 7.7 7.1 7.8 8.0 9.1 Occupancy 3.9 3.9 3.9 4.0 4.0 Other Non-interest Expense 11.2 12.2 11.9 14.6 14.5 Total Non-Interest Expense 130.0 132.2 132.3 136.3 142.9 70.0% 73.2% 70.6% 67.5% 65.8% 57.4% 59.8% 56.4% 54.6% 55.0% 12.6% 13.4% 14.2% 13.0% 10.8% 4Q23 1Q24 2Q24 3Q24 4Q24 Efficiency Ratio Non-Interest Expense Less Marketing Marketing as % of Net Revenue
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$0.08 $11.83 $11.09 Diluted EPS Book Value Per Common Share Tangible Book Value Per Common Share 1 $0.09 $11.34 $10.54 $0.13 $11.95 $11.19 $10.2 $14.5 $9.7 4Q23 3Q24 4Q24 $55.6 $65.5 $74.3 4Q23 3Q24 4Q24 ($ in millions) 16 Provision for Credit Losses Income Tax Expense ($3.5) ($1.4) Net Income ($ in millions) Net Income of $9.7M, Including Impact of $3.2M Non-Cash Impairment Related to Tally Code-Base Acquisition 1) Pre-Provision Net Revenue and Tangible Book Value per Common Share are non-GAAP financial measures. Please see pages 2, 19, 20 and 21 for additional information on our use of non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measures 2) 4Q24 included a non-cash $4.4 million pre-tax, $3.2 million after-tax, impairment of internally developed software related to the Tally code-base acquisition ($3.6) Pre-Provision Net Revenue (PPNR)1 ($41.9) ($63.2)($47.5) $3.2M non-cash software impairment charge (after-tax)2 34%
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7.9% 8.4% 4.5% 5.6% 1.2% 0.9% 3.7% 2.9% LEGEND Held for Investment Personal Loan Credit Performance by Vintage Continue to expect marginal ROEs exceeding 20% for all annual vintages 17 1) Estimates at 12/31/24 reflect current loss forecast expectations, including qualitative loss estimates; future results could differ materially from estimates, including impacts from economic outlook 2) Future provision estimate primarily reflects ongoing recognition of provision expense for discounted lifetime losses at origination (using discounted CECL methodology) 3) There may be differences between the sum of the quarterly results due to rounding. Expected Personal Loans Lifetime Net Loss Rate1,3 Net Charge-offs to Date Allowance on Book (reserve taken for expected future charge-offs + qualitative reserve, net of future recoveries) Future Provision Estimate2 (to be recognized in future periods) $56.4M $60.5M 2023 vintage incorporates higher level of qualitative reserves compared to earlier vintages 2022 vintage updated for lower recovery expectations and modest increase in lifetime losses Gross Allowance (as of 12/31/24) Total allowance for loan losses in 2022 and 2023 is $82M, comprised of gross allowance of $117M for future estimated charge-offs on existing portfolio balances, net of $35M of estimated recoveries on previously charged-off loans 9/30/24 12/31/24 2023 Vintage2022 Vintage 9.3%9.2% 8.5% - 8.8% 9/30/24 12/31/24 8.5% - 8.8% 0.3% - 0.6% 0.0% - 0.3%
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2025 Guidance 18 1Q25 Guidance Total Originations $1.8B to $1.9B Pre-Provision Net Revenue (PPNR) $60M to $70M Outlook Context Maintain positive GAAP Net Income and improving performance through the year Macroeconomic assumptions: One 25bps Fed interest rate reduction in the second half of the year Stable employment and inflation 4Q25 Guidance Total Originations >$2.3B +25% YoY ROTCE >8% +2.5X YoY
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Reconciliation of GAAP to Non-GAAP Measures: Pre-Provision Net Revenue1 19 For the three months ended In thousands December 31, 2024 September 30, 2024 December 31, 2023 GAAP Net income $ 9,720 $ 14,457 $ 10,155 Less: Provision for credit losses (63,238) (47,541) (41,907) Less: Income tax expense (1,388) (3,551) (3,529) Pre-provision net revenue $ 74,346 $ 65,549 $ 55,591 For the three months ended In thousands December 31, 2024 September 30, 2024 December 31, 2023 Non-interest income $ 74,817 $ 61,640 $ 54,129 Net interest income 142,384 140,241 131,477 Total net revenue 217,201 201,881 185,606 Non-interest expense (142,855) (136,332) (130,015) Pre-provision net revenue $ 74,346 $ 65,549 $ 55,591 Provision for credit losses (63,238) (47,541) (41,907) Income before income tax expense 11,108 18,008 13,684 Income tax expense (1,388) (3,551) (3,529) GAAP Net income $ 9,720 $ 14,457 $ 10,155 1) We believe Pre-Provision Net Revenue (PPNR) is an important measurereflecting the financial performance of our business operations.
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Reconciliation of GAAP to Non-GAAP Measures: Tangible Book Value Per Common Share1 In thousands, except share and per share data. December 31, 2024 September 30, 2024 December 31, 2023 Tangible common equity: GAAP common equity $ 1,341,731 $ 1,342,895 $ 1,251,822 Less: Goodwill (75,717) (75,717) (75,717) Less: Customer relationship intangible assets (8,586) (9,439) (12,135) Tangible common equity $ 1,257,428 $ 1,257,739 $ 1,163,970 Book value per common share: GAAP common equity $ 1,341,731 $ 1,342,895 $ 1,251,822 Common shares issued and outstanding 113,383,917 112,401,990 110,410,602 Book value per common share $ 11.83 $ 11.95 $ 11.34 Tangible book value per common share: Tangible common equity $ 1,257,428 $ 1,257,739 $ 1,163,970 Common shares issued and outstanding 113,383,917 112,401,990 110,410,602 Tangible book value per common share $ 11.09 $ 11.19 $ 10.54 20 1) We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company's use of equity.
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Reconciliation of GAAP to Non-GAAP Measures: Return On Tangible Common Equity1 In thousands, except ratios. December 31, 2024 September 30, 2024 December 31, 2023 Average tangible common equity: Average GAAP common equity $ 1,335,730 $ 1,307,521 $ 1,221,425 Less: Average goodwill (75,717) (75,717) (75,717) Less: Average customer relationship intangible assets (9,013) (9,866) (12,643) Average tangible common equity $ 1,251,000 $ 1,221,938 $ 1,133,065 Return on average equity: Annualized GAAP net income $ 38,880 $ 57,828 $ 40,620 Average GAAP common equity $ 1,335,730 $ 1,307,521 $ 1,221,425 Return on average equity 2.9% 4.4% 3.3% Return on tangible common equity: Annualized GAAP net income $ 38,880 $ 57,828 $ 40,620 Average tangible common equity $ 1,251,000 $ 1,221,938 $ 1,133,065 Return on tangible common equity 3.1% 4.7% 3.6% 21 1) We believe Return on Tangible Common Equity (ROTCE) is an important measure because it reflects the company's ability to generate income from its core assets.