PR Newswire | Oct 27, 2021 04:07PM EDT

10/27 15:06 CDT

LendingClub Reports Third Quarter 2021 ResultsRecord Revenues Up 20% SequentiallyNet Income up 190% SequentiallyRaising Full Year Outlook SAN FRANCISCO, Oct. 27, 2021

SAN FRANCISCO, Oct. 27, 2021 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the third quarter ended September 30, 2021.

"Our strong revenue and earnings growth trajectory has become evident following our transformation into a digital marketplace bank," said Scott Sanborn, LendingClub's CEO. "Our success continues to be driven by our competitive advantages, including our growing base of 3.8 million members, our exceptional data science capabilities, and our proven marketplace model. With our enhanced operating leverage, digital first infrastructure, and the ongoing move of consumers toward online banking, there's no better time to grow a next generation digital bank like LendingClub."

Record Revenue and Net Income Reflects Strong Execution and Business Model Transformation.

* Record revenue of $246.2 million with total sequential revenue growth of 20% outpacing origination growth of 14%. * New recurring stream of net interest income grew 42% sequentially to $65.3 million, as the bank's loan portfolio (excluding PPP loans) grew 25% from June 30, 2021. * Marketplace revenue grew 15% sequentially, reflecting higher origination fees associated with loan origination growth. * Deposits grew 12% sequentially to $2.8 billion, in line with growth in our loans held for investment.

* Record net income of $27.2 million, up 190% sequentially, highlighting positive operating leverage in the fully integrated digital bank business model. * Net income of $27.2 million and earnings per share of $0.26 were negatively impacted by $51.5 million of notable items: $34.0 million of Current Expected Credit Loss (CECL) provisioning and $17.5 million of net revenue deferrals both driven by strong retained loan growth. These items reduced our earnings per share by $0.49 in the third quarter of 2021.

Three Months Ended

($ in millions) September 30,June 30, QoQ QoQ 2021 2021 $ Change% Change

Loan originations^(1) $ 3,106.7 $2,722.4$384.314 %

Total revenue $ 246.2 $204.4 $41.8 20 %

Consolidated net income$ 27.2 $9.4 $17.8 190 %

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

Financial Outlook - Raising Full Year Targets

Fourth QuarterFull Year Versus Prior (millions) 2021 2021 Full Year 2021 Guidance

Loan originations^(1) $2.8B to $3.0B$10.1B to +$100M to +$300M $10.3B

Total revenue $240M to $250M$796M to $806M +$26M to +$46M

Consolidated net income$20M to $25M $9M to $14M +$17M to +$22M

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

Notable Items Impacting Q3'21 Consolidated Net Income

Per (millions) Consolidated Net DilutedCommentary Income Impact^(1)Share Impact

Origination fee and cost deferrals, net of Revenue deferrals, net of amortization $(17.5) $0.17 interest income amortization during the period

Primarily for consumer loans Provision for credit losses, less net charge-offs$(34.0) $0.32 originated and retained in the quarter

Total $(51.5) $0.49

^(1) Amounts presented net of tax.

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 more than 150 billion cells of data and over $65 billion in loans, our artificial intelligence-driven 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 3.8 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 third 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, October 27, 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 3514635, 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 November 3, 2021, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 10160701. 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.

Contacts

For Investors:IR@lendingclub.com

Media Contact: Press@lendingclub.com

Safe Harbor Statement

Some of the statements above, including statements regarding our competitive advantages, ability to grow our business, 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

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

Operating Highlights:

Non-interest income $180,878 $158,476 $87,334 $72,597 $57,750 14 %213%

Net interest income $65,288 $45,905 $18,506 $2,899 13,294 42 %391%

Total net revenue $246,166 $204,381 $105,840 $75,496 $71,044 20 %246%



Consolidated net income (loss) $27,185 $9,371 $(47,084) $(26,655) $(34,325) 190 %N/M



EPS - basic $0.27 $0.10 $(0.49) $(0.29) $(0.38) 170 %N/M

EPS - diluted $0.26 $0.09 $(0.49) $(0.29) $(0.38) 189 %N/M



LendingClub Bank Performance Metrics:

Net interest margin 7.1 %5.5 %3.3 %N/A N/A

Efficiency ratio ^(1) 67.5 %69.0 %104.8 %N/A N/A

Return on average equity (ROE) 26.5 %34.7 %N/A N/A N/A

Return on average total assets (ROA) 3.7 %4.7 %N/A N/A N/A



LendingClub Bank Capital Ratios:

Common Equity Tier 1 Capital Ratio 18.0 %18.7 %20.9 %N/A N/A

Tier 1 Leverage Ratio 14.1 %13.5 %12.9 %N/A N/A



Consolidated LendingClub Corporation Performance Metrics:

Net interest margin 6.3 %4.7 %1.8 %0.7 %2.9 %

Efficiency ratio ^(1) 72.6 %78.4 %126.8 %N/A N/A

Return on average equity (ROE) 13.8 %5.0 %N/A N/A N/A

Return on average total assets (ROA) 2.4 %0.8 %N/A N/A N/A

Marketing expense as a % of loan originations 1.6 %1.3 %1.3 %0.9 %0.4 %



Loan originations (in millions) ^(2):

Marketplace loans $2,471 $2,182 $1,139 $912 $584 13 %323%

Loan originations held for investment $636 $541 $344 $- $- 18 %N/A

Total loan originations $3,107 $2,722 $1,483 $912 $584 14 %432%



Servicing portfolio AUM $11,592 $10,741 $10,271 $11,002 $12,267 8 %(6)%(in millions)^ (3)



Balance Sheet Data:

Loans and leases held for investment, net, excluding PPP loans $2,235,698 $1,791,492 $1,414,900 $- $- 25 %N/A

PPP loans $367,558 $507,553 $664,400 $- $- (28)%N/A

Total loans and leases held for investment, net $2,603,256 $2,299,045 $2,079,300 $- $- 13 %N/A

Total assets $4,750,760 $4,370,101 $4,491,089 $1,863,293 $1,979,457 9 %140%

Total deposits $2,838,719 $2,539,704 $2,373,437 $- $- 12 %N/A

Total liabilities $3,945,970 $3,607,742 $3,757,954 $1,139,122 $1,245,565 9 %217%

Total equity $804,790 $762,359 $733,135 $724,171 $733,892 6 %10 %



Allowance Ratios:

Allowance for loan and lease losses to total loans and leases held for 3.9 %3.0 %1.7 %N/A N/A investment

Allowance for loan and lease losses to total loans and leases held for 4.5 %3.8 %2.5 %N/A N/A investment, excluding PPP loans

Allowance for loan and lease losses to consumer loans and leases held for 5.2 %4.3 %2.3 %N/A N/A investment

Allowance for loan and lease losses to commercial loans and leases held for 1.6 %1.5 %1.3 %N/A N/A investment

Allowance for loan and lease losses to commercial loans and leases held for 2.6 %2.8 %1.7 %N/A N/A investment, excluding PPP loans

N/M - Not meaningful

N/A - Not applicable

(1) Calculated as the ratio of non-interest expense to total net revenue.

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

(3) Loans serviced on our platform, which includes personal and auto loans serviced for others and retained for investment by the Company.

LENDINGCLUB CORPORATION LOANS AND LEASES HELD FOR INVESTMENT (In thousands, except percentages or as noted) (Unaudited)



September 30,June 30, 2021 2021

Unsecured personal $1,258,279 $776,338

Residential mortgages 141,200 152,528

Secured consumer 314,539 326,318

Other consumer 1,220 157

Total consumer loans held for investment 1,715,238 1,255,341

Equipment finance^ (1) 157,457 161,465

Commercial real estate 316,135 294,954

Commercial and industrial^ (2) 519,162 658,366

Total commercial loans and leases held for investment992,754 1,114,785

Total loans and leases held for investment 2,707,992 2,370,126

Allowance for loan and lease losses (104,736) (71,081)

Loans and leases held for investment, net $2,603,256 $2,299,045

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

^ Includes $367.6 million of Paycheck Protection Program (PPP) loans. The(2) 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

September 30, 2021 June 30, 2021

Consumer CommercialTotal Consumer CommercialTotal

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

Credit loss expense for loans and leases held for investment37,695 (562) 37,133 34,317 659 34,976

Charge-offs (3,142) (1,194) (4,336) (90) (156) (246)

Recoveries 20 838 858 46 173 219

Allowance for loan and lease losses, end of period $88,631$16,105 $104,736$54,058$17,023 $71,081

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



Three Months Ended

September 30,June 30, Change 2021 (%) 2021

Non-interest income:

Marketplace revenue^ (1) $ 174,556 $ 151,735 15 %

Other non-interest income 6,322 6,741 (6) %

Total non-interest income 180,878 158,476 14 %



Interest income:

Interest on loans held for sale 8,536 8,694 (2) %

Interest and fees on loans and leases held for investment 57,644 39,068 48 %

Interest on retail and certificate loans held for investment at fair value12,172 16,014 (24) %

Interest on other loans held for investment at fair value 973 1,222 (20) %

Interest on securities available for sale 3,180 2,539 25 %

Other interest income 355 190 87 %

Total interest income 82,860 67,727 22 %



Interest expense:

Interest on deposits 1,899 1,699 12 %

Interest on short-term borrowings 849 1,003 (15) %

Interest on retail notes, certificates and secured borrowings 12,172 16,014 (24) %

Interest on Structured Program borrowings 2,120 2,668 (21) %

Interest on other long-term debt 532 438 21 %

Total interest expense 17,572 21,822 (19) %



Net interest income 65,288 45,905 42 %



Total net revenue 246,166 204,381 20 %



Provision for credit losses 37,524 34,634 8 %



Non-interest expense:

Compensation and benefits 73,304 71,925 2 %

Marketing 50,782 35,107 45 %

Equipment and software 10,297 9,281 11 %

Occupancy 6,486 6,157 5 %

Depreciation and amortization 10,549 11,508 (8) %

Professional services 11,750 11,520 2 %

Other non-interest expense 15,607 14,641 7 %

Total non-interest expense 178,775 160,139 12 %



Income before income tax expense 29,867 9,608 211 %

Income tax expense 2,682 237 N/M

Consolidated net income $ 27,185 $ 9,371 190 %



Net income per share attributable to common stockholders - Basic $ 0.27 $ 0.10

Net income per share attributable to common stockholders - Diluted $ 0.26 $ 0.09

Weighted-average common shares - Basic 99,073,507 97,785,089

Weighted-average common shares - Diluted 106,108,662 102,031,088

N/M - Not meaningful

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



(1) Marketplace revenue consists of the following:



Three Months Ended

September 30,June 30, Change (%) 2021 2021

Origination fees $129,125 $113,802 13 %

Servicing fees 20,819 22,714 (8) %

Gain on sales of loans 21,907 19,317 13 %

Net fair value adjustments 2,705 (4,098) N/M

Total marketplace revenue $174,556 $151,735 15 %

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



Three months ended September 30, 2021

LendingClub LendingClub Intercompany Corporation Total Bank Eliminations (Parent only)

Non-interest income:

Marketplace revenue $ 151,109$23,447 $ - $174,556

Other non-interest income 25,393 4,140 (23,211) 6,322

Total non-interest income 176,502 27,587 (23,211) 180,878



Interest income:

Interest income 64,606 18,254 - 82,860

Interest expense (2,270) (15,302) - (17,572)

Net interest income 62,336 2,952 - 65,288



Total net revenue 238,838 30,539 (23,211) 246,166



Reversal of (provision for) credit losses (38,019) 495 - (37,524)

Non-interest expense (161,101) (40,885) 23,211 (178,775)

Income (Loss) before income tax benefit (expense)39,718 (9,851) - 29,867

Income tax benefit (expense) (4,670) 12,607 (10,619) (2,682)

Consolidated net income (loss) $ 35,048 $2,756 $ (10,619)$27,185

Three Months Ended June 30, 2021

LendingClub LendingClub Intercompany Corporation Total Bank Eliminations (Parent only)

Non-interest income:

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

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

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



Interest income:

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

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

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



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



Reversal of (provision for) credit (34,956) 322 - (34,634) losses

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

Income (Loss) before income tax benefit27,269 (17,661) - 9,608

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

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

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



LendingClub Bank

Three Months Ended Three Months Ended September 30, 2021 June 30, 2021

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

Interest-earning assets^ (1)

Cash, cash equivalents and restricted cash $695,294 $352 0.20 %$551,895 $186 0.13 %

Securities available for sale at fair value 182,882 632 1.38 %165,579 348 0.84 %

Loans held for sale 145,262 5,978 16.46%144,037 5,723 15.89%

Loans and leases held for investment:

Unsecured personal loans 991,297 39,532 15.95%511,787 19,499 15.24%

Secured consumer loans 464,194 4,688 4.04 %532,426 5,173 3.89 %

Commercial loans and leases 616,823 7,887 5.11 %623,735 9,062 5.81 %

PPP loans 436,785 5,537 5.07 %615,942 5,334 3.46 %

Loans and leases held for investment 2,509,099 57,644 9.19 %2,283,890 39,068 6.84 %

Total interest-earning assets 3,532,537 64,606 7.32 %3,145,401 45,325 5.76 %



Cash and due from banks 29,290 34,612

Allowance for loan and lease losses (86,686) (51,109)

Other non-interest earning assets 270,594 221,870

Total assets $3,745,735 $3,350,774



Interest-bearing liabilities

Interest-bearing deposits

Checking and money market accounts $2,221,365$1,707 0.30 %$2,071,112$1,618 0.31 %

Savings accounts and certificates of deposit307,807 192 0.25 %301,939 81 0.11 %

Interest-bearing deposits 2,529,172 1,899 0.30 %2,373,051 1,699 0.29 %

Short-term borrowings 321 - - %2,138 1 0.06 %

Advances from PPPLF 416,748 371 0.36 %312,168 272 0.35 %

Other long-term debt - - - %708 - - %

Total interest-bearing liabilities 2,946,241 2,270 0.31 %2,688,065 1,972 0.29 %



Non-interest bearing deposits 114,065 102,709

Other liabilities 155,806 100,835

Total liabilities $3,216,112 $2,891,609

Total equity $529,623 $459,165

Total liabilities and equity $3,745,735 $3,350,774



Interest rate spread 7.01 % 5.47 %



Net interest income and net interest margin $62,3367.06 % $43,3535.51 %

^ Nonaccrual loans and any related income are included in their respective(1) loan categories.

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



Three Months Ended September 30, 2021

LendingClub Corporation Consolidated LendingClub Bank (Parent only) LendingClub Corporation

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

Interest-earning assets^ (1)

Cash, cash equivalents and restricted cash $695,294 $ 352 0.20 % $83,405 $ 3 0.01 % $778,667 $355 0.18 %

Securities available for sale at fair value 182,882 632 1.38 % 83,804 2,548 12.16 % 266,686 3,180 4.77 %

Loans held for sale at fair value 145,262 5,978 16.46 % 81,160 2,558 12.60 % 226,422 8,536 15.08 %

Loans and leases held for investment:

Unsecured personal loans 991,297 39,532 15.95 % - - - % 991,297 39,532 15.95 %

Secured consumer loans 464,194 4,688 4.04 % - - - % 464,194 4,688 4.04 %

Commercial loans and leases 616,823 7,887 5.11 % - - - % 616,823 7,887 5.11 %

PPP loans 436,785 5,537 5.07 % - - - % 436,785 5,537 5.07 %

Loans and leases held for investment 2,509,099 57,644 9.19 % - - - % 2,509,099 57,644 9.19 %

Retail and certificate loans held for investment at fair value- - - % 344,205 12,172 14.15 % 344,205 12,172 14.15 %

Other loans held for investment at fair value - - - % 30,981 973 12.58 % 30,981 973 12.58 %

Total interest-earning assets 3,532,537 64,606 7.32 % 623,555 18,254 11.71 % 4,156,060 82,860 7.97 %



Cash and due from banks and restricted cash 29,290 99,985 96,733

Allowance for loan and lease losses (86,686) - (86,686)

Other non-interest earning assets 270,594 760,131 449,964

Total assets $3,745,735 $1,483,671 $4,616,071



Interest-bearing liabilities

Interest-bearing deposits:

Checking and money market accounts $2,221,365$ 1,707 0.30 % $- $ - - % $2,221,365$1,707 0.30 %

Savings accounts and certificates of deposit 307,807 192 0.25 % - - - % 307,807 192 0.25 %

Interest-bearing deposits 2,529,172 1,899 0.30 % - - - % 2,529,172 1,899 0.30 %

Short-term borrowings 321 - - % 56,903 849 5.97 % 57,224 849 5.93 %

Advances from PPPLF 416,748 371 0.36 % - - - % 416,748 371 0.36 %

Retail notes, certificates and secured borrowings - - - % 344,087 12,173 14.15 % 344,087 12,173 14.15 %

Structured Program borrowings - - - % 100,178 2,119 8.46 % 100,178 2,119 8.46 %

Other long-term debt - - - % 15,606 161 4.13 % 15,606 161 4.13 %

Total interest-bearing liabilities 2,946,241 2,270 0.31 % 516,774 15,302 11.84 % 3,463,015 17,572 2.03 %



Non-interest bearing deposits 114,065 - 81,491

Other liabilities 155,806 183,962 285,292

Total liabilities $3,216,112 $700,736 $3,829,798



Total equity $529,623 $782,935 $786,273

Total liabilities and equity $3,745,735 $1,483,671 $4,616,071



Interest rate spread 7.01 % (0.13) % 5.95 %



Net interest income and net interest margin $ 62,3367.06 % $ 2,9521.89 % $65,288 6.28 %

^(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 June 30, 2021

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

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

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

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

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

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

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

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

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

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

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



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

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

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

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



Interest-bearing liabilities

Interest-bearing deposits:

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

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

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 borrowings - - - % 449,057 16,014 14.27 % 449,057 16,014 14.27 %

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

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

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



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

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



Interest rate spread 5.47 % (0.68) % 4.29 %



Net interest income and net interest margin $ 43,3535.51 % $ 2,5521.28 % $45,905 4.67 %

^(1) Consolidated presentation reflects intercompany eliminations.

^(2) 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)



September 30,December 31, 2021 2020

Assets

Cash and due from banks $22,604 $5,197

Interest-bearing deposits in banks 839,547 519,766

Total cash and cash equivalents 862,151 524,963

Restricted cash 77,577 103,522

Securities available for sale at fair value (includes $268,732 and $159,164 at 274,930 142,226 amortized cost, respectively)

Loans held for sale at fair value 152,160 121,902

Loans and leases held for investment 2,707,992 -

Allowance for loan and lease losses (104,736) -

Loans and leases held for investment, net 2,603,256 -

Retail and certificate loans held for investment at fair value 298,541 636,686

Other loans held for investment at fair value 27,229 49,954

Property, equipment and software, net 96,073 96,641

Goodwill 75,717 -

Other assets 283,126 187,399

Total assets $4,750,760 $1,863,293

Liabilities and Equity

Deposits:

Interest-bearing $2,614,663 $-

Noninterest-bearing 224,056 -

Total deposits 2,838,719 -

Short-term borrowings 46,110 104,989

Advances from Paycheck Protection Program Liquidity Facility (PPPLF) 391,945 -

Retail notes, certificates and secured borrowings at fair value 298,541 636,774

Payable on Structured Program borrowings 89,252 152,808

Other long-term debt 15,563 -

Other liabilities 265,840 244,551

Total liabilities 3,945,970 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; 99,782,192 and 998 881 88,149,510 shares issued and outstanding, respectively

Additional paid-in capital 1,594,646 1,508,020

Accumulated deficit (796,742) (786,214)

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

Accumulated other comprehensive income 5,980 1,484

Total equity 804,790 724,171

Total liabilities and equity $4,750,760 $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)

September 30,December 31,September 30,December 31,September 30,December 31,September 30,December 31, 2021 2020 2021 2020 2021 2020 2021 2020

Assets

Total cash and cash equivalents $825,538 $ - $100,815 $524,963 $(64,202) $ - $862,151 $524,963

Restricted cash - - 84,827 103,522 (7,250) - 77,577 103,522

Securities available for sale at fair value 201,438 - 73,492 142,226 - - 274,930 142,226

Loans held for sale at fair value 82,483 - 69,677 121,902 - - 152,160 121,902

Loans and leases held for investment, net 2,603,256 - - - - - 2,603,256 -

Retail and certificate loans held for investment at fair value - - 298,541 636,686 - - 298,541 636,686

Other loans held for investment at fair value - - 27,229 49,954 - - 27,229 49,954

Property, equipment and software, net 26,457 - 69,616 96,641 - - 96,073 96,641

Investment in subsidiary - - 511,394 - (511,394) - - -

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

Other assets 199,050 - 176,994 187,399 (92,918) - 283,126 187,399

Total assets 4,013,939 - 1,412,585 1,863,293 (675,764) - 4,750,760 1,863,293

Liabilities and Equity

Total deposits 2,910,171 - - - (71,452) - 2,838,719 -

Short-term borrowings 321 - 45,789 104,989 - - 46,110 104,989

Advances from PPPLF 391,945 - - - - - 391,945 -

Retail notes, certificates and secured borrowings at fair value- - 298,541 636,774 - - 298,541 636,774

Payable on Structured Program borrowings - - 89,252 152,808 - - 89,252 152,808

Other long-term debt - - 15,563 - - - 15,563 -

Other liabilities 154,521 - 171,764 244,551 (60,445) - 265,840 244,551

Total liabilities 3,456,958 - 620,909 1,139,122 (131,897) - 3,945,970 1,139,122

Total equity 556,981 - 791,676 724,171 (543,867) - 804,790 724,171

Total liabilities and equity $4,013,939 $ - $1,412,585 $1,863,293$(675,764) $ - $4,750,760 $1,863,293

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.



September 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 equivalents $- $- $862,151 $862,151 $- $- $524,963 $524,963

Restricted cash - 12,537 65,040 77,577 - 13,473 90,049 103,522

Securities available for sale at fair value - - 274,930 274,930 - - 142,226 142,226

Loans held for sale at fair value ^(4) - 52,175 99,985 152,160 - 92,802 29,100 121,902

Loans and leases held for investment, net - - 2,603,256 2,603,256 - - - -

Retail and certificate loans held for investment at fair value 283,153 15,388 - 298,541 584,066 52,620 - 636,686

Other loans held for investment at fair value ^(4) - 24,333 2,896 27,229 - 46,120 3,834 49,954

Property, equipment and software, net - - 96,073 96,073 - - 96,641 96,641

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

Other assets 1,761 491 280,874 283,126 3,797 1,134 182,468 187,399

Total assets $284,914$104,924 $4,360,922$4,750,760$587,863$206,149 $1,069,281$1,863,293

Liabilities and Equity

Total deposits $- $- $2,838,719$2,838,719$- $- $- $-

Short-term borrowings - - 46,110 46,110 - - 104,989 104,989

Advances from PPPLF - - 391,945 391,945 - - - -

Retail notes, certificates and secured borrowings at fair value283,153 15,388 - 298,541 584,066 52,620 88 636,774

Payable on Structured Program borrowings ^(4) - 89,252 - 89,252 - 152,808 - 152,808

Other long-term debt - - 15,563 15,563 - - - -

Other liabilities 1,761 284 263,795 265,840 3,797 721 240,033 244,551

Total liabilities 284,914 104,924 3,556,132 3,945,970 587,863 206,149 345,110 1,139,122

Total equity - - 804,790 804,790 - - 724,171 724,171

Total liabilities and equity $284,914$104,924 $4,360,922$4,750,760$587,863$206,149 $1,069,281$1,863,293

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 balances, interest rates^ and maturities are matched and offset by an equal balance of notes with the(1) exact same interest rates and maturities. We do not retain any economic interests from our Retail Program. Interest expense on Retail Program notes of $44.5 million and $77.2 million was equally matched and offset by interest income from the related loans of $44.5 million and $77.2 million for the first nine months 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 $11.9 million and $106.4 million was(2) equally matched and offset by interest income on the loans of $11.9 million and $106.4 million for the first nine months 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 at fair value," "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 related to our Retail Program and certain consolidated VIEs, but(3) 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^ consolidated, resulting in an increase to "Other loans held for investment(4) at fair value," "Loans held for sale at fair value" and the related "Payable on Structured Program borrowings."

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SOURCE LendingClub Corporation