PR Newswire | Jul 28, 2021 04:07PM EDT

07/28 15:06 CDT

LendingClub Reports Second Quarter 2021 ResultsDelivers Record Net Income on 93% Growth in RevenueRaising Full Year Revenue Target by +45% with Net Income Guidance of $25-$35 Million for the Second Half of 2021 SAN FRANCISCO, July 28, 2021

SAN FRANCISCO, July 28, 2021 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the second quarter ended June 30, 2021.

"Our first full quarter operating a digital bank was the most profitable quarter in LendingClub's history," said Scott Sanborn, LendingClub's CEO. "This is the beginning of a dramatically enhanced earnings trajectory for the business. Our transformation is fueled by our competitive advantages, which include our 3.5 million-plus members, deep data capabilities, marketplace model as well as our more efficient operating platform. Our earnings are being bolstered by our bank, which is generating a new stream of recurring net interest income that is only beginning to contribute to our bottom line results."

Strong Revenue Growth and Accelerated Return to Profitability Reflects Effective Execution on Strategic Priorities.

* Total sequential revenue growth of 93%, reflecting growth in marketplace revenue and increased net interest income from the retained portfolio of consumer loans. * Marketplace revenue grew 86% sequentially, primarily reflecting 105% growth in origination fees and a 132% increase in gains on loan sales as loans sold through the marketplace doubled. * Net interest income grew 148% sequentially to $45.9 million, as the bank's loan portfolio (excluding PPP loans) grew 27% sequentially, propelled by growth in the consumer loan portfolio of 145% to $795M. * Deposits grew to $2.5 billion, helping fund growth in the bank's loan portfolio.

* Sequential origination growth of 84% as we returned to market leadership and leveraged our expanded predictive science and credit decisioning capabilities, which drove a substantial increase in our end-to-end application conversion rate. * Strong revenue growth and positive operating leverage drove record earnings and an accelerated return to profitability. * Consolidated net income of $9.4 million included $56.7 million of notable items: $34.6 million of Current Expected Credit Loss (CECL) provisioning which reduced reported earnings and reflects rapid growth in the bank's loan portfolio, $19.6 million of net revenue deferrals on retained loans, and $2.5 million of non-recurring expenses. * Entered into a settlement agreement with the Federal Trade Commission (FTC), which concludes the agency's previously disclosed investigation?and litigation. Pursuant to the terms of the settlement, LendingClub will make an $18 million payment for consumer remediation, an amount already accrued for in prior periods.

Three Months Ended

($ in millions) June 30, March 31, QoQ 2021 2021 Change

Loan originations^(1) $2,722.4$1,483.2$1,239.2

Total revenue $204.4 $105.8 $98.6

Consolidated net income (loss)$9.4 $(47.1) $56.5



^(1) Includes unsecured personal loans, auto loans, and education and patient finance loans only.

Financial Outlook - Raising Full Year Targets



Third Quarter Full Year Versus Prior (millions) 2021 2021 Full Year 2021 Guidance

Loan originations^(1) $2.8B to $3.0B$9.8B to $10.2B+$2.9B to +$3.0B

Total revenue $215M to $230M$750M to $780M +$240M to +$250M

Consolidated net income $10M to $15M ($13M) to ($3M)+$139M to +$154M (loss)



^(1) Includes unsecured personal loans, auto loans, and education and patient finance loans only.

Items Impacting Q2'21 Consolidated Net Income



Per Consolidated Net (millions) Income Impact DilutedCommentary Share Impact

Revenue deferrals, net of amortization$(19.6) $0.19 Revenue deferrals, net of deferred costs and amortization during the period

Provision for credit losses $(34.6) $0.34 Primarily for consumer loans originated and retained in the quarter

Non-recurring expenses $(2.5) $0.02 Non-recurring expenses primarily related to the acquisition of Radius Bank

Total $(56.7) $0.56

About LendingClubLendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the US. Members can gain access to a broad range of financial products and services through a technology-driven platform, designed to help them pay less when borrowing and earn more when saving. Since 2007, more than 3 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 InformationThe LendingClub second quarter 2021 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, July 28, 2021. 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 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 4824215, 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 August 4, 2021, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 10158362. LendingClub has used, and intends to use, its investor relations website, blog ( http://blog.lendingclub.com), Twitter handle (@LendingClub) 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.

ContactsFor Investors:IR@lendingclub.comMedia Contact:Press@lendingclub.com

Safe Harbor StatementSome of the statements above, including statements regarding the benefits of our bank acquisition, anticipated future performance and financial results, 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 and retain new and existing customers; competition; overall economic conditions; the regulatory environment, demand for the types of loans facilitated by us; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, each as filed with the Securities and Exchange Commission, as well as our subsequent reports on Form 10-Q and 10-K each as filed 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.

*****

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS

(In thousands, except percentages or as noted)

(Unaudited)



The information in the following tables is presented for the consolidated LendingClub Corporation, unless specifically noted for LendingClub Bank, the company's wholly-owned subsidiary:



As of and for the three months ended % Change

June 30, March 31, December 31, September 30,June 30, 2021 2021 2020 Q/Q Y/Y 2020 2020

Operating Highlights:

Noninterest income $ 158,476 $87,334 $ 72,597 $ 57,750 $ 21,421 81 %640 %

Net interest income $ 45,905 $18,506 $ 2,899 $ 13,294 18,937 148 %142 %

Total net revenue ^(1) $ 204,381 $105,840 $ 75,496 $ 71,044 $ 40,358 93 %406 %



Consolidated net income (loss) $ 9,371 $(47,084) $ (26,655) $ (34,325) $ (78,471) N/M N/M



EPS - basic $ 0.10 $(0.49) $ (0.29) $ (0.38) $ (0.87) N/M N/M

EPS - diluted $ 0.09 $(0.49) $ (0.29) $ (0.38) $ (0.87) N/M N/M

LendingClub Bank net interest margin 5.51 % 3.33 %N/A N/A N/A

Servicing portfolio AUM

(in millions) ^(2) $ 10,741 $10,271 $ 11,002 $ 12,267 $ 13,962 5 %(23) %



Loan originations (in millions) ^(3):

Marketplace loans $ 2,182 $1,139 $ 912 $ 584 $ 326 92 %569 %

Loan originations held for investment $ 541 $344 $ - $ - $ - 57 %N/M

Total loan originations $ 2,722 $1,483 $ 912 $ 584 $ 326 84 %735 %



Balance Sheet Data:

Loans and leases held for investment, $ 1,791,492 $1,414,900 $ - $ - $ - 27 %N/M net, excluding PPP loans

PPP loans $ 507,553 $664,400 $ - $ - $ - (24) %N/M

Total loans and leases held for investment, net $ 2,299,045 $2,079,300 $ - $ - $ - 11 %N/M

Total assets $ 4,370,101 $4,491,089 $ 1,863,293$ 1,979,457$ 2,452,599 (3) %78 %

Total deposits $ 2,539,704 $2,373,437 $ - $ - $ - 7 %N/M

Total liabilities $ 3,607,742 $3,757,954 $ 1,139,122$ 1,245,565$ 1,706,457 (4) %111 %

Total equity $ 762,359 $733,135 $ 724,171 $ 733,892 $ 746,142 4 %2 %



Asset Quality Ratios:

Allowance for loan and lease losses to loans and leases held for 3.00 % 1.71 %N/A N/A N/A investment



Allowance for loan and lease losses to loans and leases held for 3.82 % 2.49 %N/A N/A N/A investment, excluding PPP loans



Allowance for loan and lease losses to nonaccruing loans and leases 417.78 % 302.69 %N/A N/A N/A held for investment



Nonaccruing loans and leases to loans and leases held for 0.72 % 0.56 %N/A N/A N/A investment



Nonaccruing loans and leases to loans and leases held for 0.91 % 0.82 %N/A N/A N/A investment, excluding PPP loans



LendingClub Bank Capital Ratios:

Common Equity Tier 1 Capital Ratio 18.7 % 20.9 %N/A N/A N/A

Tier 1 Leverage Ratio 13.5 % 12.9 %N/A N/A N/A

N/M - Not meaningful

N/A - Not applicable

Prior period total net revenue balances have been recast related to credit ^(1) valuation adjustments on securities available for sale being reclassified from net fair value adjustments to provision for credit losses.

^(2) Includes unsecured personal loans and auto loans only.

^(3) Includes unsecured personal loans, auto loans, and education and patient finance loans only.

LENDINGCLUB CORPORATION

LOANS AND LEASES HELD FOR INVESTMENT

(In thousands, except percentages or as noted)

(Unaudited)



June 30, March 31, 2021 2021

Unsecured personal $776,338 $321,104

Residential mortgages 152,528 164,002

Secured consumer 326,318 387,244

Other consumer 157 34

Total consumer loans held for investment 1,255,341 872,384

Equipment finance^ (1) 161,465 145,885

Commercial real estate 294,954 302,445

Commercial and industrial^ (2) 658,366 794,718

Total commercial loans and leases held for investment1,114,785 1,243,048

Total loans and leases held for investment 2,370,126 2,115,432

Allowance for loan and lease losses (71,081) (36,132)

Loans and leases held for investment, net $2,299,045$2,079,300

^(1) Comprised of sales-type leases for equipment.

^(2) Includes $507.6 million of Paycheck Protection Program (PPP) loans. The Company determined no allowance for expected credit losses is needed on these loans.

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands, except percentages or as noted)

(Unaudited)



Three Months Ended

June 30, 2021 March 31, 2021

Consumer CommercialTotal Consumer CommercialTotal

Allowance for loan and lease $19,785$16,347 $36,132$- $- $- losses, beginning of period

Credit loss expense for loans 34,317 659 34,976 19,182 4,371 23,553 and leases held for investment



Initial allowance for PCD loans- - - 603 11,837 12,440 acquired during the period

Charge-offs (90) (156) (246) - - -

Recoveries 46 173 219 - 139 139

Allowance for loan and lease $54,058$17,023 $71,081$19,785$16,347 $36,132losses, end of period

LENDINGCLUB CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited)

Three Months Ended

June 30, March 31,

2021 2021 Change (%)

Non-interest income:

Marketplace revenue^ (1) $ 151,735 $81,727 86 %

Other non-interest income 6,741 5,607 20 %

Total non-interest income 158,476 87,334 81 %



Interest income:

Interest on loans held for sale 8,694 5,157 69 %

Interest and fees on loans and leases held for investment 39,068 15,301 155 %

Interest on retail and certificate loans held for investment at fair value16,014 20,262 (21) %

Interest on other loans held for investment at fair value 1,222 1,479 (17) %

Interest on securities available for sale 2,539 2,235 14 %

Other interest income 190 156 22 %

Total interest income 67,727 44,590 52 %



Interest expense:

Interest on deposits 1,699 1,014 68 %

Interest on short-term borrowings 1,003 1,264 (21) %

Interest on retail notes, certificates and secured borrowings 16,014 20,262 (21) %

Interest on Structured Program borrowings 2,668 3,208 (17) %

Interest on other long-term debt 438 336 30 %

Total interest expense 21,822 26,084 (16) %



Net interest income 45,905 18,506 148 %



Total net revenue 204,381 105,840 93 %



Provision for credit losses 34,634 21,493 61 %



Non-interest expense:

Compensation and benefits 71,925 64,420 12 %

Marketing 35,107 19,545 80 %

Equipment and software 9,281 7,893 18 %

Occupancy 6,157 6,900 (11) %

Depreciation and amortization 11,508 11,766 (2) %

Professional services 11,520 11,603 (1) %

Other non-interest expense 14,641 12,125 21 %

Total non-interest expense 160,139 134,252 19 %



Income (Loss) before income tax expense 9,608 (49,905) N/M

Income tax expense (benefit) 237 (2,821) N/M

Consolidated net income (loss) $ 9,371 $(47,084)N/M



Net income (loss) per share attributable to common stockholders - Basic $ 0.10 $(0.49)

Net income (loss) per share attributable to common stockholders - Diluted $ 0.09 $(0.49)

Weighted-average common shares - Basic 97,785,089 92,666,169

Weighted-average common shares - Diluted 102,031,08892,666,169

Net income (loss) per share attributable to preferred stockholders - Basic$ - $(0.49) and Diluted

Weighted-average common shares, as converted - Basic and Diluted - 2,648,758

N/M - Not meaningful

^(1)Marketplace revenue consists of the following:

Three Months Ended

June 30, March 31,Change (%) 2021 2021

Origination fees $113,802$55,559105 %

Servicing fees 22,714 23,166 (2) %

Gain on sales of loans 19,317 8,323 132 %

Net fair value adjustments(4,098) (5,321) (23) %

Total marketplace revenue $151,735$81,72786 %

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended June 30, 2021

LendingClub LendingClubIntercompany Corporation Total Bank Eliminations (Parent only)

Non-interest income:

Marketplace revenue $23,021 $ 128,714$ - $151,735

Other non-interest income 4,281 28,340 (25,880) 6,741

Total non-interest income 27,302 157,054 (25,880) 158,476



Interest income:

Interest income 22,402 45,325 - 67,727

Interest expense (19,850) (1,972) - (21,822)

Net interest income 2,552 43,353 - 45,905



Total net revenue 29,854 200,407 (25,880) 204,381



Reversal of (provision for) credit losses322 (34,956) - (34,634)

Non-interest expense (47,837) (138,182) 25,880 (160,139)

Income (Loss) before income tax benefit (17,661) 27,269 - 9,608 (expense)

Income tax benefit (expense) 8,922 12,513 (21,672) (237)

Consolidated net income (loss) $(8,739) $ 39,782 $ (21,672)$9,371

Three Months Ended March 31, 2021

LendingClub LendingClubIntercompany Corporation Total Bank ^(1) Eliminations (Parent only)

Non-interest income:

Marketplace revenue $45,665 $36,062 $ - $81,727

Other non-interest income 4,098 19,700 (18,191) 5,607

Total non-interest income 49,763 55,762 (18,191) 87,334



Interest income:

Interest income 27,092 17,498 - 44,590

Interest expense (24,837) (1,247) - (26,084)

Net interest income 2,255 16,251 - 18,506



Total net revenue 52,018 72,013 (18,191) 105,840



Reversal of (provision for) credit losses2,470 (23,963) - (21,493)

Non-interest expense (76,944) (75,499) 18,191 (134,252)

Loss before income tax benefit (22,456) (27,449) - (49,905)

Income tax benefit 2,292 23 506 2,821

Consolidated net loss $(20,164) $(27,426)$ 506 $(47,084)

^(1) For the two month period from February 1, 2021 through March 31, 2021, for LendingClub Bank.

LENDINGCLUB BANK NET INTEREST INCOME (In thousands, except percentages or as noted) (Unaudited)



LendingClub Bank

Three Months Ended Two Months Ended June 30, 2021 March 31, 2021^(1)

Average Interest AverageAverage Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate

Interest-earning assets^ (2)

Cash, cash equivalents and restricted cash $551,895 $186 0.13 %$737,555 $138 0.11 %

Securities available for sale at fair value 165,579 348 0.84 %232,001 444 1.15 %

Loans held for sale 144,037 5,723 15.89%64,720 1,615 14.97%

Loans and leases held for investment:

Unsecured personal loans 511,787 19,499 15.24%146,925 3,392 13.85%

Secured consumer loans 532,426 5,173 3.89 %521,399 3,215 3.70 %

Commercial loans and leases 623,735 9,062 5.81 %605,495 5,119 5.07 %

PPP loans 615,942 5,334 3.46 %621,292 3,575 3.45 %

Loans and leases held for investment 2,283,890 39,068 6.84 %1,895,111 15,301 4.84 %

Total interest-earning assets 3,145,401 45,325 5.76 %2,929,387 17,498 3.58 %



Cash and due from banks 34,612 42,683

Allowance for loan and lease losses (51,109) (30,357)

Other non-interest earning assets 221,870 187,785

Total assets $3,350,774 $3,129,498



Interest-bearing liabilities

Interest-bearing deposits

Checking and money market accounts $2,071,112$1,618 0.31 %$1,735,274$913 0.33 %

Savings accounts and certificates of deposit301,939 81 0.11 %323,800 101 0.19 %

Interest-bearing deposits 2,373,051 1,699 0.29 %2,059,074 1,014 0.30 %

Short-term borrowings 2,138 1 0.06 %1,829 0.3 0.09 %

Advances from PPPLF 312,168 272 0.35 %405,989 233 0.35 %

Other long-term debt 708 - - %2,834 - - %

Total interest-bearing liabilities 2,688,065 1,972 0.29 %2,469,726 1,247 0.31 %



Non-interest bearing deposits 102,709 156,034

Other liabilities 100,835 68,510

Total liabilities $2,891,609 $2,694,270

Total equity $459,165 $435,228

Total liabilities and equity $3,350,774 $3,129,498



Interest rate spread 5.47 % 3.27 %



Net interest income and net interest margin $43,3535.51 % $16,2513.33 %



^(1) Prior period amounts have been reclassified to include non-interest earning assets, non-interest bearing liabilities and equity to conform to current period presentation.

^(2) Nonaccrual loans and any related income are included in their respective loan categories.

LENDINGCLUB CORPORATION NET INTEREST INCOME (Continued) (In thousands, except percentages or as noted) (Unaudited)



Three Months Ended June 30, 2021

LendingClub Corporation Consolidated LendingClub Bank (Parent only) LendingClub Corporation^(1)

Average Interest AverageAverage Interest Average Average Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate Expense Rate

Interest-earning assets^ (2)

Cash, cash equivalents $551,895 $186 0.13 %$99,419 $4 0.02 %$642,182 $190 0.12 %and restricted cash

Securities available for 165,579 348 0.84 %108,377 2,191 8.09 %273,956 2,539 3.71 %sale at fair value

Loans held for sale 144,037 5,723 15.89%99,408 2,971 11.96 %243,445 8,694 14.29%

Loans and leases held for investment:

Unsecured personal 511,787 19,499 15.24%- - - %511,787 19,499 15.24%loans

Secured consumer 532,426 5,173 3.89 %- - - %532,426 5,173 3.89 %loans

Commercial loans and 623,735 9,062 5.81 %- - - %623,735 9,062 5.81 %leases

PPP loans 615,942 5,334 3.46 %- - - %615,942 5,334 3.46 %

Loans and leases held for 2,283,890 39,068 6.84 %- - - %2,283,890 39,068 6.84 %investment

Retail and certificate loans held for - - - %448,822 16,014 14.27 %448,822 16,014 14.27%investment at fair value

Other loans held for investment at fair - - - %38,662 1,222 12.64 %38,662 1,222 12.64%value

Total interest-earning 3,145,401 45,325 5.76 %794,688 22,402 11.28 %3,930,957 67,727 6.89 %assets



Cash and due from banks 34,612 111,274 144,897 and restricted cash

Allowance for loan (51,109) - (51,109) and lease losses

Other non-interest 221,870 749,674 447,826 earning assets

Total assets $3,350,774 $1,655,636 $4,472,571



Interest-bearing liabilities

Interest-bearing deposits:

Checking and money $2,071,112$1,618 0.31 %$- $- - %$2,071,112$1,618 0.31 %market accounts

Savings accounts and 301,939 81 0.11 %- - - %301,939 81 0.11 %certificates of deposit

Interest-bearing deposits 2,373,051 1,699 0.29 %- - - %2,373,051 1,699 0.29 %

Short-term borrowings 2,138 1 0.06 %77,373 1,002 5.19 %79,511 1,003 5.05 %

Advances from PPPLF 312,168 272 0.35 %- - - %312,168 272 0.35 %

Retail notes, certificates and secured - - - %449,057 16,014 14.27 %449,057 16,014 14.27%borrowings

Structured Program - - - %121,738 2,668 8.77 %121,738 2,668 8.77 %borrowings

Other long-term debt 708 - - %15,696 166 4.22 %16,404 166 4.04 %

Total interest-bearing 2,688,065 1,972 0.29 %663,864 19,850 11.96 %3,351,929 21,822 2.61 %liabilities



Non-interest bearing 102,709 - 92,588 deposits

Other liabilities 100,835 225,521 276,723

Total liabilities $2,891,609 $889,385 $3,721,240



Total equity $459,165 $766,251 $751,331

Total liabilities and $3,350,774 $1,655,636 $4,472,571 equity



Interest rate spread 5.47 % (0.68)% 4.29 %



Net interest income and $43,353 5.51 % $2,552 1.28 % $45,9054.67 %net interest margin

^(1) Consolidated presentation reflects intercompany eliminations.

^(2) Nonaccrual loans and any related income are included in their respective loan categories.

LENDINGCLUB CORPORATION NET INTEREST INCOME (Continued) (In thousands, except percentages or as noted) (Unaudited)



Three Months Ended March 31, 2021^(1)(2)

LendingClub Corporation Consolidated LendingClub Bank (Parent only) LendingClub Corporation^(3)

Average Interest AverageAverage Interest Average Average Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate Expense Rate

Interest-earning assets^ (4)

Cash, cash equivalents $737,555 $138 0.11 %$216,698 $18 0.03 %$918,148 $156 0.10 %and restricted cash

Securities available for 232,001 444 1.15 %130,620 1,791 5.48 %362,621 2,235 2.71 %sale at fair value

Loans held for sale 64,720 1,615 14.97%133,872 3,542 10.58 %198,592 5,157 12.01%

Loans and leases held for investment:

Unsecured personal 146,925 3,392 13.85%- - - %146,925 3,392 13.85%loans

Secured consumer 521,399 3,215 3.70 %- - - %521,399 3,215 3.70 %loans

Commercial loans and 605,495 5,119 5.07 %- - - %605,495 5,119 5.07 %leases

PPP loans 621,292 3,575 3.45 %- - - %621,292 3,575 3.45 %

Loans and leases held for 1,895,111 15,301 4.84 %- - - %1,895,111 15,301 4.84 %investment

Retail and certificate loans held for - - - %574,158 20,262 14.12 %574,158 20,262 14.12%investment at fair value

Other loans held for investment at fair - - - %46,212 1,479 12.80 %46,212 1,479 12.80%value

Total interest-earning 2,929,387 17,498 3.58 %1,101,560 27,092 9.84 %3,994,842 44,590 5.34 %assets



Cash and due from banks 42,683 95,190 137,216 and restricted cash

Allowance for loan and (30,357) - (30,357) lease losses

Other non-interest 187,785 618,194 326,040 earning assets

Total assets $3,129,498 $1,814,944 $4,427,741



Interest-bearing liabilities

Interest-bearing deposits:

Checking and money $1,735,274$913 0.33 %$- $- - %$1,735,274$913 0.33 %market accounts

Savings accounts and 323,800 101 0.19 %- - - %323,800 101 0.19 %certificates of deposit

Interest-bearing deposits 2,059,074 1,014 0.30 %- - - %2,059,074 1,014 0.30 %

Short-term borrowings 1,829 0.3 0.09 %96,989 1,264 5.21 %98,818 1,264 5.12 %

Advances from PPPLF 405,989 233 0.35 %- - - %405,989 233 0.35 %

Retail notes, certificates and secured - - - %574,192 20,262 14.12 %574,192 20,262 14.12%borrowings

Structured Program - - - %143,045 3,208 8.97 %143,045 3,208 8.97 %borrowings

Other long-term debt 2,834 - - %15,771 103 2.61 %18,605 103 2.21 %

Total interest-bearing 2,469,726 1,247 0.31 %829,997 24,837 11.97 %3,299,723 26,084 3.24 %liabilities



Non-interest bearing 156,034 - 119,272 deposits

Other liabilities 68,510 245,177 286,907

Total liabilities $2,694,270 $1,075,174 $3,705,902



Total equity $435,228 $739,770 $721,839

Total liabilities and $3,129,498 $1,814,944 $4,427,741 equity



Interest rate spread 3.27 % (2.13)% 2.11 %



Net interest income and $16,251 3.33 % $2,255 0.82 % $18,5062.67 %net interest margin

^(1)For the two month period from February 1, 2021 through March 31, 2021, for LendingClub Bank.

^(2)Prior period amounts have been reclassified to include non-interest earning assets, non-interest bearing liabilities and equity to conform to current period presentation.

^(3)Consolidated presentation reflects intercompany eliminations.

^(4)Nonaccrual loans and any related income are included in their respective loan categories.

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)



June 30, December 31, 2021 2020

Assets

Cash and due from banks $55,773 $5,197

Interest-bearing deposits in banks 512,873 519,766

Total cash and cash equivalents 568,646 524,963

Restricted cash 123,896 103,522

Securities available for sale at fair value (includes $272,869 and $159,164 at amortized 277,505 142,226 cost, respectively)

Loans held for sale (includes $180,061 and $121,902 at fair value, 226,328 121,902 respectively)

Loans and leases held for investment 2,370,126 -

Allowance for loan and lease losses (71,081) -

Loans and leases held for investment, net 2,299,045 -

Retail and certificate loans held for investment at fair value 391,362 636,686

Other loans held for investment at fair value 34,523 49,954

Property, equipment and software, net 94,676 96,641

Goodwill 75,717 -

Other assets 278,403 187,399

Total assets $4,370,101$1,863,293

Liabilities and Equity

Deposits:

Interest-bearing $2,445,518$-

Noninterest-bearing 94,186 -

Total deposits 2,539,704 -

Short-term borrowings 68,781 104,989

Advances from Paycheck Protection Program Liquidity Facility (PPPLF) 195,481 370,086

Retail notes, certificates and secured borrowings at fair value 391,384 507,203

Payable on Structured Program borrowings 110,871 133,499

Other long-term debt 15,650 -

Other liabilities 285,871 244,551

Total liabilities 3,607,742 1,139,122

Equity

Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 and 43,000 - - shares issued and outstanding, respectively

Common stock, $0.01 par value; 180,000,000 shares authorized; 98,601,148 and 986 881 88,149,510 shares issued and outstanding, respectively

Additional paid-in capital 1,580,518 1,508,020

Accumulated deficit (823,927) (786,214)

Treasury stock, at cost; 4,251 and 0 shares, respectively (92) -

Accumulated other comprehensive income 4,874 1,484

Total equity 762,359 724,171

Total liabilities and equity $4,370,101$1,863,293

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS BY SEGMENT

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)



LendingClub LendingClub Intercompany Corporation Total Bank Eliminations (Parent only)

June 30, December 31, June 30, December 31,June 30, December 31,June 30, December 31, 2021 2020 2021 2020 2020 2020 2021 2021

Assets

Total cash and cash $72,458 $524,963 $493,915 $ - $2,273 $ - $568,646 $524,963 equivalents

Restricted cash 127,781 103,522 - - (3,885) - 123,896 103,522

Securities available for sale 95,378 142,226 182,127 - - - 277,505 142,226 at fair value

Loans held for sale 92,509 121,902 133,819 - - - 226,328 121,902

Loans and leases held for - - 2,299,045 - - - 2,299,045 - investment, net

Retail and certificate loans held for investment at fair 391,362 636,686 - - - - 391,362 636,686 value

Other loans held for 34,523 49,954 - - - - 34,523 49,954 investment at fair value

Property, equipment and 78,288 96,641 16,388 - - - 94,676 96,641 software, net

Investment in subsidiary 483,696 - - - (483,696) - - -

Goodwill - - 75,717 - - - 75,717 -

Other assets 189,567 187,399 156,886 - (68,050) - 278,403 187,399

Total assets 1,565,562 1,863,293 3,357,897 - (553,358) - 4,370,101 1,863,293

Liabilities and Equity

Total deposits - - 2,541,317 - (1,613) - 2,539,704 -

Short-term borrowings 68,460 104,989 321 - - - 68,781 104,989

Advances from PPPLF - - 195,481 - - - 195,481 -

Retail notes, certificates and secured borrowings at fair 391,384 636,774 - - - - 391,384 636,774 value

Payable on Structured 110,871 152,808 - - - - 110,871 152,808 Program borrowings

Other long-term debt 15,650 - - - - - 15,650 -

Other liabilities 206,525 244,551 125,790 - (46,444) - 285,871 244,551

Total liabilities 792,890 1,139,122 2,862,909 - (48,057) - 3,607,742 1,139,122

Total equity 772,672 724,171 494,988 - (505,301) - 762,359 724,171

Total liabilities and $1,565,562$1,863,293 $3,357,897$ - $(553,358)$ - $4,370,101$1,863,293 equity

LENDINGCLUB CORPORATION SUPPLEMENTAL FINANCIAL INFORMATION (In thousands) (Unaudited)



The following table is provided to delineate between the assets and liabilities belonging to our member payment dependent self-directed retail program (Retail Program) note holders and certain VIEs that we are required to consolidate in accordance with GAAP. Such assets are not legally ours and the associated liabilities are payable only from the cash flows generated by those assets (i.e. Pass-throughs). As such, these debt holders do not have a secured interest in any other assets of LendingClub. We believe this is a useful measure because it illustrates the overall financial stability and operating leverage of the Company.



June 30, 2021 December 31, 2020

Retail All Other Condensed Retail All Other Condensed Program ^ ConsolidatedLendingClub ConsolidatedProgram ^ ConsolidatedLendingClub Consolidated (1) VIEs ^(2)(4)^(3) Balance (1) VIEs ^(2)(4)^(3) Balance Sheet Sheet

Assets

Total cash and cash $- $- $568,646 $568,646 $- $- $524,963 $524,963 equivalents

Restricted cash - 14,156 109,740 123,896 - 13,473 90,049 103,522

Securities available for sale at- - 277,505 277,505 - - 142,226 142,226 fair value

Loans held for sale^ (4) - 65,305 161,023 226,328 - 92,802 29,100 121,902

Loans and leases held for - - 2,299,045 2,299,045 - - - - investment, net

Retail and certificate loans held for investment at fair 367,552 23,810 - 391,362 584,066 52,620 - 636,686 value

Other loans held for investment at fair - 31,149 3,374 34,523 - 46,120 3,834 49,954 value ^(4)

Property, equipment and - - 94,676 94,676 - - 96,641 96,641 software, net

Goodwill - - 75,717 75,717 - - - -

Other assets 2,323 647 275,433 278,403 3,797 1,134 182,468 187,399

Total assets $369,875$135,067 $3,865,159$4,370,101$587,863$206,149 $1,069,281$1,863,293

Liabilities and Equity

Total deposits $- $- $2,539,704$2,539,704$- $- $- $-

Short-term borrowings - - 68,781 68,781 - - 104,989 104,989

Advances from PPPLF - - 195,481 195,481 - - - -

Retail notes, certificates and secured borrowings at fair 367,552 23,810 22 391,384 584,066 52,620 88 636,774 value

Payable on Structured - 110,871 - 110,871 - 152,808 - 152,808 Program borrowings ^(4)

Other long-term debt - - 15,650 15,650 - - - -

Other liabilities 2,323 386 283,162 285,871 3,797 721 240,033 244,551

Total liabilities 369,875 135,067 3,102,800 3,607,742 587,863 206,149 345,110 1,139,122

Total equity - - 762,359 762,359 - - 724,171 724,171

Total liabilities and $369,875$135,067 $3,865,159$4,370,101$587,863$206,149 $1,069,281$1,863,293equity



Represents loans held for investment at fair value that are funded directly by our Retail Program notes. The liabilities are only payable from the cash flows generated by the associated assets. We do not assume principal or interest rate risk on loans facilitated through our lending marketplace that are funded by our Retail Program because loan ^(1) balances, interest rates and maturities are matched and offset by an equal balance of notes with the exact same interest rates and maturities. We do not retain any economic interests from our Retail Program. Interest expense on Retail Program notes of $33.2 million and $53.8 million was equally matched and offset by interest income from the related loans of $33.2 million and $53.8 million for the first halves of 2021 and 2020, respectively, resulting in no net effect on our net interest income.

Represents assets and equal and offsetting liabilities of certain VIEs that we are required to consolidate in accordance with GAAP, but which are not legally ours. The liabilities are only payable from the cash flows generated by the associated assets. The creditors of the VIEs have no recourse to the general credit of the Company. Interest expense on these liabilities owned by third parties of $9.0 million and $20.6 million was ^(2) equally matched and offset by interest income on the loans of $9.0 million and $20.6 million for the first halves of 2021 and 2020, respectively, resulting in no net effect on our net interest income. Economic interests held by LendingClub, including retained interests, residuals and equity of the VIEs, are reflected in "Loans held for sale," "Other loans held for investment at fair value" and "Restricted cash," respectively, within the "All Other LendingClub" column.

Represents all other assets and liabilities of LendingClub, other than those ^(3) related to our Retail Program and certain consolidated VIEs, but includes any economic interests held by LendingClub, including retained interests, residuals and equity of those consolidated VIEs.

The Company has sponsored Structured Program transactions that have been ^(4) consolidated, resulting in an increase to "Other loans held for investment at fair value," "Loans held for sale" and the related "Payable on Structured Program borrowings."

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SOURCE LendingClub Corporation