LendingClub Corp Files Q3 2024 10-Q

TL;DR

LendingClub's Q3 2024 10-Q is in. Check financials.

AI Summary

LendingClub Corp filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Specific financial figures and operational metrics are presented, reflecting the company's standing in the personal credit institutions sector.

Why It Matters

This filing provides investors and analysts with the latest financial health and strategic direction of LendingClub, a key player in the fintech lending space.

Risk Assessment

Risk Level: medium — As a financial institution, LendingClub is subject to regulatory changes, credit risk, and market volatility, which can impact its performance.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-10-30 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 1231 — Fiscal Year End (Specifies the end of the company's fiscal year.)

Key Players & Entities

• LendingClub Corp (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-10-30 (date) — Filing date
• 595 MARKET STREET SUITE 200 (address) — Company's business and mailing address
• SAN FRANCISCO (location) — Company's city
• DE (location) — State of incorporation

FAQ

Key Financial Figures

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

Filing Documents

• lc-20240930.htm (10-Q) — 4659KB
• lc09302024q3ex311.htm (EX-31.1) — 10KB
• lc09302024q3ex312.htm (EX-31.2) — 8KB
• lc09302024q3ex321.htm (EX-32.1) — 6KB
• 0001409970-24-000049.txt ( ) — 21838KB
• lc-20240930.xsd (EX-101.SCH) — 95KB
• lc-20240930_cal.xml (EX-101.CAL) — 139KB
• lc-20240930_def.xml (EX-101.DEF) — 591KB
• lc-20240930_lab.xml (EX-101.LAB) — 1025KB
• lc-20240930_pre.xml (EX-101.PRE) — 882KB
• lc-20240930_htm.xml (XML) — 5393KB

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 (Loss) 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 18 Note 6. Securitizations and Variable Interest Entities 28 Note 7. Fair Value Measurements 29 Note 8. Derivative Instruments and Hedging Activities 39 Note 9. Property, Equipment and Software, net 41 Note 10. Goodwill and Intangible Assets 41 Note 11. Other Assets 42 Note 12. Deposits 42 Note 13. Borrowings 43 Note 14. Other Liabilities 44 Note 15. Employee Incentive Plans 44 Note 16. Income Taxes 45 Note 17. Leases 46 Note 18. Commitments and Contingencies 48 Note 19. Regulatory Requirements 49 Note 20. Segment Reporting 50 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 54 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 Inclu

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: 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 base; the impact of the continuation of, or changes in, the short-term and long-term interest rate environ

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) September 30, 2024 December 31, 2023 Assets Cash and due from banks $ 25,558 $ 14,993 Interest-bearing deposits in banks 991,372 1,237,511 Total cash and cash equivalents 1,016,930 1,252,504 Restricted cash (1) 33,347 41,644 Securities available for sale at fair value ($ 3,319,988 and $ 1,663,990 at amortized cost, respectively) 3,311,418 1,620,262 Loans held for sale at fair value 849,967 407,773 Loans and leases held for investment 4,108,329 4,850,302 Allowance for loan and lease losses ( 220,564 ) ( 310,387 ) Loans and leases held for investment, net 3,887,765 4,539,915 Loans held for investment at fair value (1)(2) 1,287,495 272,678 Property, equipment and software, net 167,809 161,517 Goodwill 75,717 75,717 Other assets (1) 407,059 455,453 Total assets $ 11,037,507 $ 8,827,463 Liabilities and Equity Deposits: Interest-bearing $ 9,099,092 $ 7,001,680 Noninterest-bearing 360,516 331,806 Total deposits 9,459,608 7,333,486 Borrowings (1)(2) 2,683 19,354 Other liabilities (1) 232,321 222,801 Total liabilities 9,694,612 7,575,641 Equity Common stock, $ 0.01 par value; 180,000,000 shares authorized; 112,401,990 and 110,410,602 shares issued and outstanding, respectively 1,124 1,104 Additional paid-in capital 1,692,538 1,669,828 Accumulated deficit ( 347,196 ) ( 388,806 ) Accumulated other comprehensive loss ( 3,571 ) ( 30,304 ) Total equity 1,342,895 1,251,822 Total liabilities and equity $ 11,037,507 $ 8,827,463 (1) Includes amounts in consolidated VIEs as of December 31, 2023. 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 C

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View this 10-Q filing on SEC EDGAR