LendingClub Corp Files Q2 2024 10-Q

TL;DR

LendingClub's Q2 10-Q is in: check financials for latest performance.

AI Summary

LendingClub Corp filed its 10-Q for the period ending June 30, 2024. The company reported its financial performance and position, including details on its assets and liabilities. Specific financial figures and operational details are available within the full filing.

Why It Matters

This filing provides investors and analysts with a detailed look into LendingClub's financial health and operational performance for the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details within can reveal significant risks or opportunities.

Key Numbers

• N/A — Total Assets (Specific asset values are not detailed in the provided header.)
• N/A — Total Liabilities (Specific liability values are not detailed in the provided header.)
• N/A — Revenue (Revenue figures are not detailed in the provided header.)

Key Players & Entities

• LendingClub Corp (company) — Filer of the 10-Q
• 20240630 (date) — Period of report
• 20240801 (date) — Filing date
• 595 MARKET STREET SUITE 200 (address) — Company business and mail address
• SAN FRANCISCO (location) — Company city

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share LC New York Stock Exchange

Filing Documents

• lc-20240630.htm (10-Q) — 4608KB
• exhibit31asfiledon8124.htm (EX-3.1) — 41KB
• exhibit101asfiledon8124.htm (EX-10.1) — 76KB
• lc06302024q2ex311.htm (EX-31.1) — 10KB
• lc06302024q2ex312.htm (EX-31.2) — 8KB
• lc06302024q2ex321.htm (EX-32.1) — 6KB
• 0001409970-24-000039.txt ( ) — 21778KB
• lc-20240630.xsd (EX-101.SCH) — 93KB
• lc-20240630_cal.xml (EX-101.CAL) — 139KB
• lc-20240630_def.xml (EX-101.DEF) — 595KB
• lc-20240630_lab.xml (EX-101.LAB) — 1020KB
• lc-20240630_pre.xml (EX-101.PRE) — 883KB
• lc-20240630_htm.xml (XML) — 5332KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Income 7 Condensed Consolidated Statements of Comprehensive Income 8 Condensed Consolidated Statements of Changes in Equity 9 Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 12 Note 1. Summary of Significant Accounting Policies 12 Note 2. Marketplace Revenue 13 Note 3. Earnings Per Share 14 Note 4. Securities Available for Sale 15 Note 5. Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses 19 Note 6. Securitizations and Variable Interest Entities 29 Note 7. Fair Value Measurements 30 Note 8. Derivative Instruments and Hedging Activities 40 Note 9. Property, Equipment and Software, net 41 Note 10. Goodwill and Intangible Assets 42 Note 11. Other Assets 43 Note 12. Deposits 43 Note 13. Borrowings 44 Note 14. Other Liabilities 45 Note 15. Employee Incentive Plans 45 Note 16. Income Taxes 46 Note 17. Leases 47 Note 18. Commitments and Contingencies 48 Note 19. Regulatory Requirements 49 Note 20. Segment Reporting 51 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 55 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 85 Item 4.

Controls and Procedures

Controls and Procedures 85

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 85 Item 1A.

Risk Factors

Risk Factors 85 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 86 Item 3. Defaults Upon Senior Securities 86 Item 4. Mine Safety Disclosures 86 Item 5. Other Information 86 Item 6. Exhibits 87

Signatures

Signatures 88 1 Glossary The following is a list of common acronyms and terms LendingClub Corporation regularly uses in its financial reporting: ACL Allowance for Credit Losses (includes the allowance for loan and lease losses, allowance for securities available for sale and reserve for unfunded lending commitments) Acquisition Acquisition of Radius Bancorp, Inc. AFS Available for Sale ALLL Allowance for Loan and Lease Losses Annual Report Annual Report on Form 10-K for the year ended December 31, 2023 ASU Accounting Standards Update AUM Assets Under Management (outstanding balances of Loan Originations serviced by the Company including loans sold to investors as well as loans held for investment and held for sale by the Company) Balance Sheet Condensed Consolidated Balance Sheets CECL Current Expected Credit Losses (Accounting Standards Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) CET1 Common Equity Tier 1 CET1 Capital Ratio Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the Basel III capital framework DCF Discounted Cash Flow EPS Earnings Per Share Exchange Act Securities Exchange Act of 1934, as amended FRB or Federal Reserve Board of Governors of the Federal Reserve System and, as applicable, Federal Reserve Bank(s) GAAP Accounting Principles Generally Accepted in the United States of America HFI Loans which are retained by the Company and held for investment HFS Held for sale loans expected to be sold to investors, including Marketplace Loans Income Statement Condensed Consolidated Statements of Income LC Bank or LendingClub Bank LendingClub Bank, National Association LendingClub, LC, the Company, we, us, or our LendingClub Corporation and its subsidiaries Loan Originations Unsecured personal loans and auto refinance loans originated by the Company or facilitated by third-party issuing banks Marketplace Loans Loan

Forward-looking Statements

Forward-looking Statements This Quarterly Report on Form 10-Q (Report) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). Forward-looking statements in this Report include, without limitation, statements regarding borrowers, credit scoring, our strategy, future operations, expected losses, future financial position, future revenue, projected costs, prospects, plans, objectives of management, expected market growth and the impact on our business. You can identify these forward-looking statements by words such as "anticipate," "appear," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "intend," "may," "opportunity," "plan," "predict," "project," "should," "strategy," "target," "will," "would," or similar expressions. These forward-looking statements include, among other things, statements about: The impact of, and our ability to successfully navigate, the current interest rate and economic climate; our compliance, and that of third-party partners or providers, with applicable local, state and federal laws, regulations and regulatory developments or court decisions affecting our business; the impact of accounting standards or policies, including the Current Expected Credit Losses (CECL) standard; the results of examinations of us by regulatory authorities and the possibility that any such regulatory authority may, among other things, require us to limit our business activities, increase our allowance for loan losses, increase our capital levels, or affect our ability to borrow funds or maintain or increase deposits; our ability to effectively manage capital or liquidity to support our evolving business or operational needs, while remaining compliant with regulatory or supervisory requirements and appropriate risk-management standards; the impact of changes to our deposit b

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements LENDINGCLUB CORPORATION Condensed Consolidated Balance Sheets (In Thousands, Except Share and Per Share Amounts) (Unaudited) June 30, 2024 December 31, 2023 Assets Cash and due from banks $ 19,099 $ 14,993 Interest-bearing deposits in banks 919,020 1,237,511 Total cash and cash equivalents 938,119 1,252,504 Restricted cash (1) 31,332 41,644 Securities available for sale at fair value ($ 2,869,880 and $ 1,663,990 at amortized cost, respectively) 2,814,383 1,620,262 Loans held for sale at fair value 791,059 407,773 Loans and leases held for investment 4,228,391 4,850,302 Allowance for loan and lease losses ( 228,909 ) ( 310,387 ) Loans and leases held for investment, net 3,999,482 4,539,915 Loans held for investment at fair value (1)(2) 339,222 272,678 Property, equipment and software, net 166,150 161,517 Goodwill 75,717 75,717 Other assets (1) 430,586 455,453 Total assets $ 9,586,050 $ 8,827,463 Liabilities and Equity Deposits: Interest-bearing $ 7,759,632 $ 7,001,680 Noninterest-bearing 335,696 331,806 Total deposits 8,095,328 7,333,486 Borrowings (1)(2) 5,474 19,354 Other liabilities (1) 197,303 222,801 Total liabilities 8,298,105 7,575,641 Equity Common stock, $ 0.01 par value; 180,000,000 shares authorized; 111,812,215 and 110,410,602 shares issued and outstanding, respectively 1,118 1,104 Additional paid-in capital 1,685,865 1,669,828 Accumulated deficit ( 361,653 ) ( 388,806 ) Accumulated other comprehensive loss ( 37,385 ) ( 30,304 ) Total equity 1,287,945 1,251,822 Total liabilities and equity $ 9,586,050 $ 8,827,463 (1) Includes amounts in consolidated VIEs. See " Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities ." (2) Prior period amounts have been reclassified to conform to the current period presentation. See Notes to Condensed Consolidated Financial Statements. 6 LENDINGCLUB CORPORATION Condensed Consolidated

View Full Filing

View this 10-Q filing on SEC EDGAR