PR Newswire | Jan 26, 2022 04:07PM EST

01/26 15:06 CST

LendingClub Reports Fourth Quarter and Full Year 2021 ResultsRecord Q4 Revenue and Net Income Exceed High End of Guidance and Drive Full Year Profitability2022 Outlook Reflects Revenue Growth of approximately 40% and Net Income Growth of $100+ Million SAN FRANCISCO, Jan. 26, 2022

SAN FRANCISCO, Jan. 26, 2022 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2021.

"We have closed out a transformative year at LC by delivering the growth, innovation, and efficiency of a fintech along with the funding advantages, revenue diversity, and regulatory clarity of a bank," said Scott Sanborn, LendingClub's CEO. "We expect our transformed business model and data and membership advantages to help drive more than $100 million in incremental earnings in 2022 as we continue to evolve our member-focused business into a multi-product, digital marketplace bank."

Record Full Year 2021 Results Driven by Return to Growth, Transformed Business Economics and Increased Operational Efficiency

* Revenue of $818.6 million, up 157% compared to 2020, with marketplace revenue 136% higher and the new recurring stream of net interest income 259% higher year-over-year. * Achieved GAAP profitability during 2021, with net income of $18.6 million for the year ended December 31, 2021, compared to a net loss of $187.5 million in 2020. * Results driven by initiatives undertaken in 2021 and in prior years to improve efficiency, as well as the transformational business model changes with the bank acquisition, both of which position LendingClub well to generate continued strong revenue and earnings growth. * Key achievements for the year include acquiring and integrating the bank, consolidating the personal, auto refinance and purchase finance loans onto one origination platform, and accelerating membership acquisition.

Record Fourth Quarter 2021 Results Exceed Expectations

* Revenue of $262.2 million, with sequential growth of 7% outpacing growth in originations. * New recurring stream of net interest income grew 27% sequentially to $83.1 million, as the bank's loan portfolio (excluding PPP loans and including $248.9 million of yacht loans transferred to held for sale) grew 22% from September 30, 2021. * Marketplace revenue of $170.6 million declined 2% sequentially, primarily reflecting a reduction in loans sold through the marketplace as loan retention increased from 20% in the third quarter of 2021 to 25% of total originations in the fourth quarter of 2021, driving 43% growth in the personal loan portfolio retained on the balance sheet at period end. * Deposits grew 10% sequentially to $3.1 billion, in line with growth in our loans held for investment.

* Net income of $29.1 million, up 7% sequentially, and diluted earnings per share of $0.27 as strong revenue growth exceeded the impact of investments in loan retention, marketing and technology. * Net income was negatively impacted by $56.6 million of notable items: $39.5 million of Current Expected Credit Loss (CECL) provisioning, less net charge-offs, and $17.1 million of net revenue deferrals both driven by strong retained loan growth. These items reduced our earnings per share by $0.53 in the fourth quarter of 2021.

Three Months Ended Year Ended

($ in millions) December 31,September 30,December 31,December 31,December 31, 2021 2021 2020 2021 2020

Loan originations^(1) $ 3,069.1 $3,106.7 $ 912.0 $ 10,381.3 $ 4,343.4

Total revenue $ 262.2 $246.2 $ 75.9 $ 818.6 $ 318.1

Consolidated net income (loss)$ 29.1 $27.2 $ (26.7) $ 18.6 $ (187.5)

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

Financial Outlook

First Quarter Full Year (millions) 2022 2022

Total revenue $255M to $265M$1.1B to $1.2B

Consolidated net income$25M to $30M $130M to $150M

Notable Items Impacting Fourth Quarter 2021 Consolidated Net Income

Per (millions) Consolidated Net Commentary Income Impact^(1)Diluted Share Impact

Origination fee and cost deferrals, net of Revenue deferrals, net of amortization $(17.1) $0.16 interest income amortization during the period

Primarily for consumer loans Provision for credit losses, less net charge-offs$(39.5) $0.37 originated and retained in the quarter

Total $(56.6) $0.53

^(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 $70 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 3.9 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 fourth 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, January 26, 2022. 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 1727043, 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 February 2, 2022, by calling +1 (877) 344-7529 or outside the U.S. +1 (412) 317-0088, with Conference ID 5387149. 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 and evolve 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 consolidatedLendingClub Corporation, unless specifically noted for LendingClub Bank, thecompany's wholly-owned subsidiary:

As of and for the three months ended % Change

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

Operating Highlights:

Non-interest income $ 179,111 $ 180,878 $ 158,476 $ 87,334 $ 72,597 (1) % 147 %

Net interest income $ 83,132 $ 65,288 $ 45,905 $ 18,506 2,899 27 % N/M

Total net revenue $ 262,243 $ 246,166 $ 204,381 $ 105,840 $ 75,496 7 % 247 %

Consolidated net income (loss) $ 29,108 $ 27,185 $ $ (47,084) $ 7 % N/M 9,371 (26,655)

Basic EPS - common stockholders $ $ $ $ $ 7 % N/M 0.29 0.27 0.10 (0.49) (0.29)

Diluted EPS - common stockholders $ $ $ $ $ 4 % N/M 0.27 0.26 0.09 (0.49) (0.29)

LendingClub Bank Performance Metrics:

Net interest margin 8.3 % 7.1 % 5.5 % 3.3 % N/A

Efficiency ratio ^(1) 69.5 % 67.5 % 69.0 % 104.8 % N/A

Return on average equity (ROE) 21.7 % 26.5 % 34.7 % N/A N/A

Return on average total assets (ROA) 3.10 % 3.7 % 4.7 % N/A N/A

LendingClub Bank Capital Ratios:

Common Equity Tier 1 Capital Ratio 16.7 % 18.0 % 18.7 % 20.9 % N/A

Tier 1 Leverage Ratio 14.3 % 14.1 % 13.5 % 12.9 % N/A

Consolidated LendingClub Corporation Performance Metrics:

Net interest margin 7.6 % 6.3 % 4.7 % 1.8 % 0.7 %

Efficiency ratio ^(1) 71.8 % 72.6 % 78.4 % 126.8 % N/A

Return on average equity (ROE) 14.1 % 13.8 % 5.0 % N/A N/A

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

Marketing expense as a % of loan originations 1.7 % 1.6 % 1.3 % 1.3 % 0.9 %

Loan originations (in millions) ^(2):

Marketplace loans $ $ $ $ 1,139 $ (7) % 153 % 2,308 2,471 2,182 912

Loan originations held for investment $ $ $ $ $ 20 % N/A 761 636 541 344 -

Total loan originations $ $ $ $ 1,483 $ (1) % 237 % 3,069 3,107 2,722 912

Servicing portfolio AUM $ 12,463 $ 11,592 $ 10,741 $ 10,271 $ 11,002 8 % (6) %(in millions)^ (3)

Balance Sheet Data:

Loans and leases held for investment, net, excluding PPP loans $ 2,486,440 $ 2,235,698 $ 1,791,492 $ 1,414,900 $ 11 % N/A -

PPP loans $ 268,297 $ 367,558 $ 507,553 $ 664,400 $ (27) % N/A -

Total loans and leases held for investment, net $ 2,754,737 $ 2,603,256 $ 2,299,045 $ 2,079,300 $ 6 % N/A -

Total assets $ 4,900,319 $ 4,750,760 $ 4,370,101 $ 4,491,089 $ 1,863,293 3 % 163 %

Total deposits $ 3,135,788 $ 2,838,719 $ 2,539,704 $ 2,373,437 $ 10 % N/A -

Total liabilities $ 4,050,077 $ 3,945,970 $ 3,607,742 $ 3,757,954 $ 1,139,122 3 % 256 %

Total equity $ 850,242 $ 804,790 $ 762,359 $ 733,135 $ 724,171 6 % 17 %

Allowance Ratios:

Allowance for loan and lease losses to total loans and leases held for 5.0 % 3.9 % 3.0 % 1.7 % N/Ainvestment

Allowance for loan and lease losses to total loans and leases held for 5.5 % 4.5 % 3.8 % 2.5 % N/Ainvestment, excluding PPP loans

Allowance for loan and lease losses to consumer loans and leases held for 6.4 % 5.2 % 4.3 % 2.3 % N/Ainvestment

Allowance for loan and lease losses to commercial loans and leases held for 1.8 % 1.6 % 1.5 % 1.3 % N/Ainvestment

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

N/M - Not meaningful

N/A - Not applicable

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

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

^ Loans serviced on our platform, which includes personal and auto loans(3) 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)

December 31, September 30, 2021 2021

Unsecured personal $ $ 1,804,578 1,258,279

Residential mortgages 151,362 141,200

Secured consumer 65,976 314,539

Other consumer - 1,220

Total consumer loans held for investment 2,021,916 1,715,238

Equipment finance^ (1) 149,155 157,457

Commercial real estate 310,399 316,135

Commercial and industrial^ (2) 417,656 519,162

Total commercial loans and leases held for 877,210 992,754investment

Total loans and leases held for investment 2,899,126 2,707,992

Allowance for loan and lease losses (144,389) (104,736)

Loans and leases held for investment, net $ $ 2,754,737 2,603,256

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

Includes $268.3 million and $367.6 million of Paycheck Protection Program^ (PPP) loans as of December 31, 2021 and September 30, 2021, respectively.(2) Such loans are guaranteed by the Small Business Association and, therefore, the Company determined no allowance for expected credit losses is required on these loans.

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands, except percentages or as noted)

(Unaudited)

Three Months Ended

December 31, 2021 September 30, 2021

Consumer Commercial Total Consumer Commercial Total

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

Credit loss expense for loans and leases held for investment 45,595 (306) 45,289 37,695 (562) 37,133

Charge-offs (5,557) (313) (5,870) (3,142) (1,194) (4,336)

Recoveries 143 91 234 20 838 858

Allowance for loan and lease losses, end of period $ 128,812 $ 15,577 $ 144,389 $ 88,631 $ 16,105 $ 104,736

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended

December 31, September 30, Change (%) 2021 2021

Non-interest income:

Marketplace revenue^ (1) $ 170,562 $ 174,556 (2) %

Other non-interest income 8,549 6,322 35 %

Total non-interest income 179,111 180,878 (1) %

Interest income:

Interest on loans held for sale 7,153 8,536 (16) %

Interest and fees on loans and leases held for investment 76,964 57,644 34 %

Interest on retail and certificate loans held for investment at fair value 9,236 12,172 (24) %

Interest on other loans held for investment at fair value 762 973 (22) %

Interest on securities available for sale 3,071 3,180 (3) %

Other interest income 469 355 32 %

Total interest income 97,655 82,860 18 %

Interest expense:

Interest on deposits 2,616 1,899 38 %

Interest on short-term borrowings 561 849 (34) %

Interest on retail notes, certificates and secured borrowings 9,236 12,172 (24) %

Interest on Structured Program borrowings 1,642 2,120 (23) %

Interest on other long-term debt 468 532 (12) %

Total interest expense 14,523 17,572 (17) %

Net interest income 83,132 65,288 27 %

Total net revenue 262,243 246,166 7 %

Provision for credit losses 45,149 37,524 20 %

Non-interest expense:

Compensation and benefits 78,741 73,304 7 %

Marketing 50,708 50,782 - %

Equipment and software 12,019 10,297 17 %

Occupancy 4,706 6,486 (27) %

Depreciation and amortization 10,462 10,549 (1) %

Professional services 12,699 11,750 8 %

Other non-interest expense 18,885 15,607 21 %

Total non-interest expense 188,220 178,775 5 %

Income before income tax expense (benefit) 28,874 29,867 (3) %

Income tax expense (benefit) (234) 2,682 N/M

Consolidated net income $ 29,108 $ 27,185 7 %

Net income per share attributable to common stockholders - Basic $ $ 0.29 0.27

Net income per share attributable to common stockholders - Diluted $ $ 0.27 0.26

Weighted-average common shares - Basic 100,320,691 99,073,507

Weighted-average common shares - Diluted 108,096,823 106,108,662

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

December 31, September 30, Change (%) 2021 2021

Origination fees $ $ (8) % 118,353 129,125

Servicing fees 20,940 20,819 1 %

Gain on sales of loans 20,569 21,907 (6) %

Net fair value 10,700 2,705 N/Madjustments

Total marketplace revenue $ $ (2) % 170,562 174,556

LENDINGCLUB CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

Year Ended December 31,

2021 2020^(1) Change (%)

Non-interest income:

Marketplace revenue^ (2) $ 578,580 $ 245,314 136 %

Other non-interest income 27,219 13,442 102 %

Total non-interest income 605,799 258,756 134 %

Interest income:

Interest on loans held for sale 29,540 72,876 (59) %

Interest and fees on loans and leases held for investment 188,977 - N/M

Interest on retail and certificate loans held for investment at fair value 57,684 115,952 (50) %

Interest on other loans held for investment at fair value 4,436 7,688 (42) %

Interest on securities available for sale 11,025 12,125 (9) %

Other interest income 1,170 1,053 11 %

Total interest income 292,832 209,694 40 %

Interest expense:

Interest on deposits 7,228 - N/M

Interest on short-term borrowings 3,677 17,837 (79) %

Interest on retail notes, certificates and secured borrowings 57,684 115,952 (50) %

Interest on Structured Program borrowings 9,638 16,204 (41) %

Interest on other long-term debt 1,774 373 N/M

Total interest expense 80,001 150,366 (47) %

Net interest income 212,831 59,328 259 %

Total net revenue 818,630 318,084 157 %

Provision for credit losses 138,800 3,382 N/M

Non-interest expense:

Compensation and benefits 288,390 252,517 14 %

Marketing 156,142 51,518 203 %

Equipment and software 39,490 26,842 47 %

Occupancy 24,249 27,870 (13) %

Depreciation and amortization 44,285 54,030 (18) %

Professional services 47,572 41,780 14 %

Other non-interest expense 61,258 47,762 28 %

Total non-interest expense 661,386 502,319 32 %

Income (Loss) before income tax expense (benefit) 18,444 (187,617) N/M

Income tax expense (benefit) (136) (79) N/M

Consolidated net income (loss) $ 18,580 $ (187,538) N/M

Basic EPS - common stockholders $ 0.19 $ (2.63)

Diluted EPS - common stockholders $ 0.18 $ (2.63)

Weighted-average common shares - Basic 97,486,754 77,934,302

Weighted-average common shares - Diluted 102,147,353 77,934,302

Basic EPS - preferred stockholders $ 0.19 $ 1.39

Diluted EPS - preferred stockholders $ 0.00 $ 1.39

Weighted-average common shares, as converted - Basic 653,118 12,505,393

Weighted-average common shares, as converted - Diluted - 12,505,393

N/M - Not meaningful

^(1) Prior period amounts have been reclassified to conform to the currentperiod presentation.

^(2) Marketplace revenue consists of the following:

Year Ended December 31,

2021 2020 Change (%)

Origination fees $ 416,839 $ 207,640 101 %

Servicing fees 87,639 111,864 (22) %

Gain on sales of loans 70,116 30,812 128 %

Net fair value adjustments 3,986 (105,002) N/M

Total marketplace revenue $ 578,580 $ 245,314 136 %

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT

(In thousands, except share and per share data)

(Unaudited)

Three months ended December 31, 2021

LendingClub LendingClub Intercompany Corporation Total Bank Eliminations (Parent only)

Non-interest income:

Marketplace revenue $ 146,936 $ 23,626 $ - $ 170,562

Other non-interest income 21,520 4,199 (17,170) 8,549

Total non-interest income 168,456 27,825 (17,170) 179,111

Interest income:

Interest income 83,310 14,345 - 97,655

Interest expense (2,923) (11,600) - (14,523)

Net interest income 80,387 2,745 - 83,132

Total net revenue 248,843 30,570 (17,170) 262,243

Reversal of (provision for) credit losses (45,244) 95 - (45,149)

Non-interest expense (173,017) (32,373) 17,170 (188,220)

Income (Loss) before income tax benefit (expense) 30,582 (1,708) - 28,874

Income tax benefit (expense) 1,305 20,192 (21,263) 234

Consolidated net income (loss) $ 31,887 $ 18,484 $ (21,263) $ 29,108

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 39,718 (9,851) - 29,867

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

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

LENDINGCLUB BANK

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)

LendingClub Bank

Three Months Ended Three Months Ended

December 31, 2021 September 30, 2021

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

Interest-earning assets^ (1)

Cash, cash equivalents and restricted cash $ 651,003 $ 468 0.29 % $ 695,294 $ 352 0.20 %

Securities available for sale at fair value 200,091 680 1.36 % 182,882 632 1.38 %

Loans held for sale 122,007 5,199 17.04 % 145,262 5,978 16.46 %

Loans and leases held for investment:

Unsecured personal loans 1,542,285 60,383 15.66 % 991,297 39,532 15.95 %

Secured consumer loans 436,260 4,029 3.69 % 464,194 4,688 4.04 %

Commercial loans and leases 619,648 8,663 5.59 % 616,823 7,887 5.11 %

PPP loans 325,133 3,888 4.78 % 436,785 5,537 5.07 %

Loans and leases held for investment 2,923,326 76,963 10.53 % 2,509,099 57,644 9.19 %

Total interest-earning assets 3,896,427 83,310 8.55 % 3,532,537 64,606 7.32 %

Cash and due from banks 23,362 29,290

Allowance for loan and lease losses (125,120) (86,686)

Other non-interest earning assets 326,402 270,594

Total assets $ 4,121,071 $ 3,745,735

Interest-bearing liabilities

Interest-bearing deposits

Checking and money market accounts $ 2,146,687 $ 1,716 0.32 % $ 2,221,365 $ 1,707 0.30 %

Savings accounts and certificates of deposit 580,361 900 0.62 % 307,807 192 0.25 %

Interest-bearing deposits 2,727,048 2,616 0.38 % 2,529,172 1,899 0.30 %

Short-term borrowings 282 - - % 321 - - %

Advances from PPPLF 342,335 307 0.36 % 416,748 371 0.36 %

Total interest-bearing liabilities 3,069,665 2,923 0.38 % 2,946,241 2,270 0.31 %

Non-interest bearing deposits 283,066 114,065

Other liabilities 179,752 155,806

Total liabilities $ 3,532,483 $ 3,216,112

Total equity $ 588,588 $ 529,623

Total liabilities and equity $ 4,121,071 $ 3,745,735

Interest rate spread 8.17 % 7.01 %

Net interest income and net interest margin $ 80,387 8.25 % $ 62,336 7.06 %

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

LENDINGCLUB CORPORATION

NET INTEREST INCOME (Continued)

(In thousands, except percentages or as noted)

(Unaudited)

Three Months Ended December 31, 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 $ $ 0.29 % $ 59,469 $ 0.01 % $ $ 0.26 % 651,003 467 2 710,472 469

Securities available for sale at fair value 200,091 680 1.36 % 65,049 2,391 14.70 % 265,140 3,071 4.63 %

Loans held for sale at fair value 122,007 5,199 17.04 % 62,701 1,954 12.47 % 184,708 7,153 15.49 %

Loans and leases held for investment:

Unsecured personal loans 1,542,285 60,384 15.66 % - - - % 1,542,285 60,384 15.66 %

Secured consumer loans 436,260 4,029 3.69 % - - - % 436,260 4,029 3.69 %

Commercial loans and leases 619,648 8,663 5.59 % - - - % 619,648 8,663 5.59 %

PPP loans 325,133 3,888 4.78 % - - - % 325,133 3,888 4.78 %

Loans and leases held for investment 2,923,326 76,964 10.53 % - - - % 2,923,326 76,964 10.53 %

Retail and certificate loans held for investment at fair value - - - % 262,548 9,236 14.07 % 262,548 9,236 14.07 %

Other loans held for investment at fair value - - - % 24,184 762 12.60 % 24,184 762 12.60 %

Total interest-earning assets 3,896,427 83,310 8.55 % 473,951 14,345 12.11 % 4,370,378 97,655 8.94 %

Cash and due from banks and restricted cash 23,362 121,270 73,258

Allowance for loan and lease losses (125,120) - (125,120)

Other non-interest earning assets 326,402 763,808 465,010

Total assets $ 4,121,071 $ 1,359,029 $ 4,783,526

Interest-bearing liabilities

Interest-bearing deposits:

Checking and money market accounts $ 2,146,687 $ 0.32 % $ $ - - % $ 2,146,687 $ 0.32 % 1,716 - 1,716

Savings accounts and certificates of deposit 580,361 900 0.62 % - - - % 580,361 900 0.62 %

Interest-bearing deposits 2,727,048 2,616 0.38 % - - - % 2,727,048 2,616 0.38 %

Short-term borrowings 282 - - % 36,541 561 6.13 % 36,823 561 6.08 %

Advances from PPPLF 342,335 307 0.36 % - - - % 342,335 307 0.36 %

Retail notes, certificates and secured borrowings - - - % 262,548 9,236 14.07 % 262,548 9,236 14.07 %

Structured Program borrowings - - - % 77,354 1,642 8.49 % 77,354 1,642 8.49 %

Other long-term debt - - - % 15,514 161 4.15 % 15,514 161 4.15 %

Total interest-bearing liabilities 3,069,665 2,923 0.38 % 391,957 11,600 11.84 % 3,461,622 14,523 1.68 %

Non-interest bearing deposits 283,066 - 211,692

Other liabilities 179,752 162,938 282,339

Total liabilities $ 3,532,483 $ 554,895 $ 3,955,653

Total equity $ $ 804,134 $ 588,588 827,873

Total liabilities and equity $ 4,121,071 $ 1,359,029 $ 4,783,526

Interest rate spread 8.17 % 0.27 % 7.26 %

Net interest income and net interest margin $ 80,387 8.25 % $ 2,745 2.32 % $ 83,132 7.61 %

^ Consolidated presentation reflects intercompany eliminations.(1)

^ Nonaccrual loans and any related income are included in their respective(2) 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 $ 62,336 7.06 % $ 2,952 1.89 % $ 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

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

December 31, December 31, 2021 2020

Assets

Cash and due from banks $ 35,670 $ 5,197

Interest-bearing deposits in banks 651,456 519,766

Total cash and cash equivalents 687,126 524,963

Restricted cash 76,460 103,522

Securities available for sale at fair value (includes $256,170 and $159,164 at 263,530 142,226amortized cost, respectively)

Loans held for sale (includes $142,370 and $121,902 at fair value, 391,248 121,902respectively)

Loans and leases held for investment 2,899,126 -

Allowance for loan and lease losses (144,389) -

Loans and leases held for investment, net 2,754,737 -

Retail and certificate loans held for investment at fair value 229,719 636,686

Other loans held for investment at fair value 21,240 49,954

Property, equipment and software, net 97,996 96,641

Goodwill 75,717 -

Other assets 302,546 187,399

Total assets $ 4,900,319 $ 1,863,293

Liabilities and Equity

Deposits:

Interest-bearing $ 2,919,203 $ -

Noninterest-bearing 216,585 -

Total deposits 3,135,788 -

Short-term borrowings 27,780 104,989

Advances from Paycheck Protection Program Liquidity Facility (PPPLF) 271,933 -

Retail notes, certificates and secured borrowings at fair value 229,719 636,774

Payable on Structured Program borrowings 65,451 152,808

Other long-term debt 15,455 -

Other liabilities 303,951 244,551

Total liabilities 4,050,077 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; 101,043,924 and 1,010 88188,149,510 shares issued and outstanding, respectively

Additional paid-in capital 1,609,820 1,508,020

Accumulated deficit (767,634) (786,214)

Accumulated other comprehensive income 7,046 1,484

Total equity 850,242 724,171

Total liabilities and equity $ 4,900,319 $ 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)

December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 2021 2020

Assets

Total cash and cash equivalents $ $ $ 88,268 $ 524,963 $ (61,061) $ $ 687,126 $ 524,963 659,919 - -

Restricted cash - - 76,540 103,522 (80) - 76,460 103,522

Securities available for sale at fair value 205,730 - 57,800 142,226 - - 263,530 142,226

Loans held for sale 335,449 - 55,799 121,902 - - 391,248 121,902

Loans and leases held for investment, net 2,754,737 - - - - - 2,754,737 -

Retail and certificate loans held for investment at fair value - - 229,719 636,686 - - 229,719 636,686

Other loans held for investment at fair value - - 21,240 49,954 - - 21,240 49,954

Property, equipment and software, net 36,424 - 61,572 96,641 - - 97,996 96,641

Investment in subsidiary - - 557,577 - (557,577) - - -

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

Other assets 254,075 - 168,042 187,399 (119,571) - 302,546 187,399

Total assets 4,322,051 - 1,316,557 1,863,293 (738,289) - 4,900,319 1,863,293

Liabilities and Equity

Total deposits 3,196,929 - - - (61,141) - 3,135,788 -

Short-term borrowings 165 - 27,615 104,989 - - 27,780 104,989

Advances from PPPLF 271,933 - - - - - 271,933 -

Retail notes, certificates and secured borrowings at fair value - - 229,719 636,774 - - 229,719 636,774

Payable on Structured Program borrowings - - 65,451 152,808 - - 65,451 152,808

Other long-term debt - - 15,455 - - - 15,455 -

Other liabilities 218,775 - 150,727 244,551 (65,551) - 303,951 244,551

Total liabilities 3,687,802 - 488,967 1,139,122 (126,692) - 4,050,077 1,139,122

Total equity 634,249 - 827,590 724,171 (611,597) - 850,242 724,171

Total liabilities and equity $ 4,322,051 $ $ 1,316,557 $ 1,863,293 $ (738,289) $ $ 4,900,319 $ 1,863,293 - -

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SOURCE LendingClub Corporation