EX-99.1 2 q123exhibit991er.htm EX-99.1 Document
                                    EXHIBIT 99.1
lendingclublogonewa02.jpg
LendingClub Reports First Quarter 2023 Results
Net Income of $13.7M, Driven by 7% Sequential Increase in Pre-Provision Net Revenue (PPNR)
Deposits Up 13% Sequentially to $7.2B; $1.6B in Cash

SAN FRANCISCO – April 26, 2023 – LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the first quarter ended March 31, 2023.
“We delivered a solid quarter driven by our strategic advantages, including over 15 years of cycle-tested data, prudent and agile underwriting, and our digital marketplace bank model,” said Scott Sanborn, LendingClub CEO. “While we expect continued industry and macro headwinds, these significant advantages, along with our growing online consumer deposit franchise and high-yielding short duration assets, provide us with a range of options to navigate the current macro environment while we build toward an ambitious future for the company and our growing membership base.”

First Quarter 2023 Results
Balance Sheet:
•Total assets grew 10% sequentially to $8.8 billion from $8.0 billion at December 31, 2022.
•Deposits up 13% sequentially to $7.2 billion; FDIC-insured deposits represent approximately 86% of total deposits.
◦Cash of $1.6 billion increased 55% from December 31, 2022.
◦Available aggregate borrowing capacity of $4.1 billion as of April 26, 2023.
•Loans and leases held for investment portfolio grew 4.6% sequentially from $5.6 billion to $5.9 billion.
•Substantial capital with a consolidated Tier 1 leverage ratio of 12.8% and consolidated Common Equity Tier 1 capital ratio of 15.6%.
•Book value per common share of $11.08, up 1.4% from $10.93 at December 31, 2022.
•Tangible book value per common share of $10.23, up 1.7% from $10.06 at December 31, 2022.

Financial Performance:
•Loan originations were $2.3 billion compared to $2.5 billion in the prior quarter.
•Total net revenue was $245.7 million compared to $262.7 million in the prior quarter, as growth in net interest income was offset by lower marketplace revenue.
◦Net interest income increased 8% from the prior quarter to $146.7 million, primarily due to higher balance sheet growth and partially offset by lower net interest margin due to higher cost of deposits.
◦Marketplace revenue was $95.6 million compared to $123.4 million in the prior quarter, reflecting a reduction in sold marketplace volumes.
•Net income of $13.7 million, or diluted EPS of $0.13, compared to $23.6 million, or diluted EPS of $0.22, in the prior quarter, reflecting higher credit provisioning due to growth in the held-for-investment portfolio as well as higher tax expense.
•Pre-provision net revenue (PPNR) of $88.4 million grew 7% over the prior quarter, driven by the Company’s cost reduction actions and a $9.0 million one-time revenue benefit primarily due to slower prepayments.
•Credit quality of the held-for-investment prime loan portfolio performing in-line with expectations as portfolio seasons; provision for credit losses of $70.6 million primarily reflects $1.0 billion of quarterly loan originations held for investment.
•Efficiency ratio improved to 64.0% from 68.5% in the prior quarter due to cost reduction actions and marketing efficiency.

1

Three Months Ended
($ in millions, except per share amounts)March 31,
2023		December 31,
2022		March 31,
2022
Total net revenue$245.7 $262.7 $289.5 
Non-interest expense157.3 180.0 191.2 
Pre-provision net revenue (1)
88.4 82.7 98.3 
Provision for credit losses70.6 61.5 52.5 
Income before income tax benefit (expense)17.8 21.2 45.8 
Income tax benefit (expense)(4.1)2.4 (5.0)
Net income$13.7 $23.6 $40.8 
Diluted EPS$0.13 $0.22 $0.39 
Income tax benefit from release of tax valuation allowance$— $3.2 $— 
Net income excluding income tax benefit (1)
$13.7 $20.4 $40.8 
Diluted EPS excluding income tax benefit (1)
$0.13 $0.19 $0.39 
(1)    See page 3 of this release for additional information on our use of non-GAAP financial measures.

For a calculation of Pre-Provision Net Revenue, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share, refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables at the end of this release.

Financial Outlook
Second Quarter 2023
Loan Originations$1.9B to $2.1B
Pre-Provision Net Revenue (PPNR)$60M to $70M

2

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 $80 billion in loans, our advanced 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 4.7 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 first quarter 2023 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, April 26, 2023. 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 (404) 975-4839, or outside the U.S. +1 (929) 526-1599, with Access Code 900462, 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 May 3, 2023, by calling +1 (929) 458-6194 or outside the U.S. +44 (204) 525-0658, with Access Code 850910. 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

Non-GAAP Financial Measures
To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Pre-Provision Net Revenue, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share. Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.

We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.

We believe Pre-Provision Net Revenue, Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are important measures because they reflect the financial performance of our business operations. Pre-Provision Net Revenue is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in 2022. Diluted EPS Excluding Income Tax Benefit is a non-GAAP financial measure calculated by dividing Net Income Excluding Income Tax Benefit by the weighted-average diluted common shares outstanding.

We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company’s use of equity. TBV Per Common Share is a non-GAAP financial measure representing common equity reduced by goodwill and intangible assets, divided by ending common shares issued and outstanding.

3

For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables beginning on page 13 of this release.

Safe Harbor Statement
Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, 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; our ability to realize the expected benefits from recent initiatives, including our cost reduction plan and the acquisition of a $1 billion loan portfolio; competition; overall economic conditions; the interest rate environment; 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 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings 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.

*****
4
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended% Change
March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		Q/QY/Y
Operating Highlights:
Non-interest income$98,990 $127,465 $181,237 $213,832 $189,857 (22)%(48)%
Net interest income146,704 135,243 123,676 116,226 99,680 8 %47 %
Total net revenue245,694 262,708 304,913 330,058 289,537 (6)%(15)%
Non-interest expense157,308 180,044 186,219 209,386 191,204 (13)%(18)%
Pre-provision net revenue(1)
88,386 82,664 118,694 120,672 98,333 7 %(10)%
Provision for credit losses70,584 61,512 82,739 70,566 52,509 15 %34 %
Income before income tax benefit (expense)17,802 21,152 35,955 50,106 45,824 (16)%(61)%
Income tax benefit (expense)(4,136)2,439 7,243 131,954 (4,988)N/M(17)%
Net income13,666 23,591 43,198 182,060 40,836 (42)%(67)%
Income tax benefit from release of tax valuation allowance— 3,180 5,015 135,300 — N/MN/M
Net income excluding income tax benefit(1)(2)
$13,666 $20,411 $38,183 $46,760 $40,836 (33)%(67)%
Basic EPS – common stockholders$0.13 $0.22 $0.41 $1.77 $0.40 (41)%(68)%
Diluted EPS – common stockholders$0.13 $0.22 $0.41 $1.73 $0.39 (41)%(67)%
Diluted EPS excluding income tax benefit(1)(2)
$0.13 $0.19 $0.36 $0.45 $0.39 (32)%(67)%
LendingClub Corporation Performance Metrics:
Net interest margin7.5 %7.8 %8.3 %8.5 %8.3 %
Efficiency ratio(3)
64.0 %68.5 %61.1 %63.4 %66.0 %
Return on average equity (ROE)(4)
4.6 %7.2 %14.2 %33.8 %18.7 %
Return on average total assets (ROA)(5)
0.7 %1.1 %2.5 %5.5 %3.1 %
Marketing expense as a % of loan originations1.2 %1.4 %1.3 %1.6 %1.7 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio15.6 %15.8 %18.3 %20.0 %20.6 %
Tier 1 leverage ratio12.8 %14.1 %15.7 %16.2 %15.6 %
Book value per common share$11.08 $10.93 $10.67 $10.41 $8.68 1 %28 %
Tangible book value per common share(1)
$10.23 $10.06 $9.78 $9.50 $7.75 2 %32 %
Loan Originations (in millions)(6):
Total loan originations$2,288 $2,524 $3,539 $3,840 $3,217 (9)%(29)%
Marketplace loans$1,286 $1,824 $2,386 $2,819 $2,360 (29)%(46)%
Loan originations held for investment$1,002 $701 $1,153 $1,021 $856 43 %17 %
Loan originations held for investment as a % of total loan originations44 %28 %33 %27 %27 %
Servicing Portfolio AUM (in millions)(7):
Total servicing portfolio$16,060$16,157$15,929$14,783$13,341(1)%20 %
Loans serviced for others$10,504$10,819$11,807$11,382$10,475(3)%— %
5
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended% Change
March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022		Q/QY/Y
Balance Sheet Data:
Loans and leases held for investment at amortized cost, net, excluding PPP loans$5,091,969 $4,638,331 $4,414,347 $3,692,667 $3,049,325 10 %67 %
PPP loans$51,112 $66,971 $89,379 $118,794 $184,986 (24)%(72)%
Total loans and leases held for investment at amortized cost, net(8)
$5,143,081 $4,705,302 $4,503,726 $3,811,461 $3,234,311 9 %59 %
Loans held for investment at fair value$748,618 $925,938 $15,057 $20,583 $15,384 (19)%4,766 %
Total loans and leases held for investment$5,891,699 $5,631,240 $4,518,783 $3,832,044 $3,249,695 5 %81 %
Total assets$8,754,018 $7,979,747 $6,775,074 $6,186,765 $5,574,425 10 %57 %
Total deposits$7,218,854 $6,392,553 $5,123,506 $4,527,672 $3,977,477 13 %81 %
Total liabilities$7,563,276 $6,815,453 $5,653,664 $5,107,648 $4,686,991 11 %61 %
Total equity$1,190,742 $1,164,294 $1,121,410 $1,079,117 $887,434 2 %34 %
N/M – Not meaningful
(1)    Represents a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Financial Measures.”
(2)    Excludes fourth, third and second quarter 2022 income tax benefit of $3.2 million, $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance.
(3)    Calculated as the ratio of non-interest expense to total net revenue.
(4)    Calculated as annualized net income (which excludes the income tax benefit from the release of the deferred tax asset valuation allowance in the periods it did not occur) divided by average equity for the period presented.
(5)    Calculated as annualized net income (which excludes the income tax benefit from the release of the deferred tax asset valuation allowance in the periods it did not occur) divided by average total assets for the period presented.
(6)    Includes unsecured personal loans and auto loans only.
(7)    Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and held for investment by the company.
(8)    Excludes loans held for investment at fair value, which primarily consists of a loan portfolio that was acquired in the fourth quarter of 2022.

The asset quality metrics presented in the following table are for loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
As of and for the three months ended
March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Asset Quality Metrics:
Allowance for loan and lease losses to total loans and leases held for investment6.4 %6.5 %6.3 %6.0 %5.5 %
Allowance for loan and lease losses to consumer loans and leases held for investment7.1 %7.3 %7.2 %6.9 %6.6 %
Allowance for loan and lease losses to commercial loans and leases held for investment2.0 %2.0 %1.9 %2.0 %1.8 %
Net charge-offs$49,845 $37,148 $22,658 $14,778 $8,632 
Net charge-off ratio(1)
3.8 %3.0 %2.1 %1.6 %1.2 %
(1)    Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period, excluding PPP loans.

6
LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
The following table presents loans and leases held for investment at amortized cost and loans held for investment at fair value:
March 31,
2023		December 31, 2022
Unsecured personal$4,319,148 $3,866,373 
Residential mortgages197,728 199,601 
Secured consumer212,748 194,634 
Total consumer loans held for investment4,729,624 4,260,608 
Equipment finance (1)
153,905 160,319 
Commercial real estate372,770 373,501 
Commercial and industrial (2)
235,639 238,726 
Total commercial loans and leases held for investment762,314 772,546 
Total loans and leases held for investment at amortized cost5,491,938 5,033,154 
Allowance for loan and lease losses(348,857)(327,852)
Loans and leases held for investment at amortized cost, net$5,143,081 $4,705,302 
Loans held for investment at fair value748,618 925,938 
Total loans and leases held for investment$5,891,699 $5,631,240 
(1)    Comprised of sales-type leases for equipment.
(2)    Includes $51.1 million and $67.0 million of Paycheck Protection Program (PPP) loans as of March 31, 2023 and December 31, 2022, respectively. 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)
(Unaudited)
The following tables present the allowance for loan and lease losses on loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
Three Months Ended
March 31, 2023December 31, 2022
ConsumerCommercialTotalConsumerCommercialTotal
Allowance for loan and lease losses, beginning of period$312,489 $15,363 $327,852 $288,138 $15,063 $303,201 
Credit loss expense for loans and leases held for investment70,684 166 70,850 61,392 407 61,799 
Charge-offs(52,212)(351)(52,563)(38,579)(225)(38,804)
Recoveries2,585 133 2,718 1,538 118 1,656 
Allowance for loan and lease losses, end of period$333,546 $15,311 $348,857 $312,489 $15,363 $327,852 
Three Months Ended
March 31, 2022
ConsumerCommercialTotal
Allowance for loan and lease losses, beginning of period$128,812 $15,577 $144,389 
Credit loss expense for loans and leases held for investment53,718 (1,490)52,228 
Charge-offs(9,017)(72)(9,089)
Recoveries344 113 457 
Allowance for loan and lease losses, end of period$173,857 $14,128 $187,985 
7
LENDINGCLUB CORPORATION
PAST DUE LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
The following tables present past due loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
March 31, 202330-59
Days		60-89
Days		90 or More
Days		Total Days Past Due
Unsecured personal$26,941 $19,759 $18,984 $65,684 
Residential mortgages230 — 167 397 
Secured consumer1,922 260 187 2,369 
Total consumer loans held for investment$29,093 $20,019 $19,338 $68,450 
Equipment finance$3,020 $— $771 $3,791 
Commercial real estate8,251 2,112 103 10,466 
Commercial and industrial (1)
941 — 1,608 2,549 
Total commercial loans and leases held for investment (1)
$12,212 $2,112 $2,482 $16,806 
Total loans and leases held for investment at amortized cost (1)
$41,305 $22,131 $21,820 $85,256 
December 31, 202230-59
Days		60-89
Days		90 or More
Days		Total Days Past Due
Unsecured personal$21,016 $16,418 $16,255 $53,689 
Residential mortgages— 254 331 585 
Secured consumer1,720 382 188 2,290 
Total consumer loans held for investment$22,736 $17,054 $16,774 $56,564 
Equipment finance$3,172 $— $859 $4,031 
Commercial real estate— 102 — 102 
Commercial and industrial (1)
— — 1,643 1,643 
Total commercial loans and leases held for investment (1)
$3,172 $102 $2,502 $5,776 
Total loans and leases held for investment at amortized cost (1)
$25,908 $17,156 $19,276 $62,340 
(1)    Past due PPP loans are excluded from the tables.
8
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months EndedChange (%)
 March 31,
2023		December 31,
2022		March 31,
2022		Q1 2023
vs
Q4 2022		Q1 2023
vs
Q1 2022
Non-interest income:
Origination fees$70,543 $100,692 $122,093 (30)%(42)%
Servicing fees26,380 20,169 18,514 31 %42 %
Gain on sales of loans14,125 18,352 24,110 (23)%(41)%
Net fair value adjustments(15,414)(15,774)15,249 (2)%(201)%
Marketplace revenue95,634 123,439 179,966 (23)%(47)%
Other non-interest income3,356 4,026 9,891 (17)%(66)%
Total non-interest income98,990 127,465 189,857 (22)%(48)%
Total interest income202,413 173,999 111,653 16 %81 %
Total interest expense55,709 38,756 11,973 44 %365 %
Net interest income146,704 135,243 99,680 8 %47 %
Total net revenue245,694 262,708 289,537 (6)%(15)%
Provision for credit losses70,584 61,512 52,509 15 %34 %
Non-interest expense:
Compensation and benefits73,307 87,768 81,610 (16)%(10)%
Marketing26,880 35,139 55,080 (24)%(51)%
Equipment and software13,696 13,200 11,046 4 %24 %
Depreciation and amortization12,354 11,554 11,039 7 %12 %
Professional services9,058 10,029 12,406 (10)%(27)%
Occupancy4,310 4,698 6,019 (8)%(28)%
Other non-interest expense17,703 17,656 14,004 — %26 %
Total non-interest expense157,308 180,044 191,204 (13)%(18)%
Income before income tax benefit (expense)17,802 21,152 45,824 (16)%(61)%
Income tax benefit (expense)(4,136)2,439 (4,988)N/M(17)%
Net income$13,666 $23,591 $40,836 (42)%(67)%
Net income per share:
Basic EPS – common stockholders$0.13 $0.22 $0.40 (41)%(68)%
Diluted EPS – common stockholders$0.13 $0.22 $0.39 (41)%(67)%
Weighted-average common shares – Basic106,912,139 105,650,177 101,493,561 1 %5 %
Weighted-average common shares – Diluted106,917,770 105,984,612 105,052,904 1 %2 %
N/M – Not meaningful

9
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1)
Three Months Ended
March 31, 2023		Three Months Ended
December 31, 2022		Three Months Ended
March 31, 2022
Average
Balance		Interest Income/
Expense		Average Yield/
Rate		Average
Balance		Interest Income/
Expense		Average Yield/
Rate		Average
Balance		Interest Income/
Expense		Average Yield/
Rate
Interest-earning assets (2)
Cash, cash equivalents, restricted cash and other$1,220,677 $13,714 4.49 %$1,139,887 $10,595 3.72 %$892,921 $688 0.31 %
Securities available for sale at fair value362,960 3,900 4.30 %349,512 3,359 3.84 %325,155 4,511 5.55 %
Loans held for sale at fair value110,580 5,757 20.83 %114,851 5,724 19.93 %255,139 7,450 11.68 %
Loans and leases held for investment:
Unsecured personal loans4,066,713 133,687 13.15 %3,825,808 125,872 13.16 %2,060,323 78,376 15.22 %
Commercial and other consumer loans1,175,504 16,780 5.71 %1,164,326 15,197 5.22 %1,075,412 13,066 4.86 %
Loans and leases held for investment at amortized cost5,242,217 150,467 11.48 %4,990,134 141,069 11.31 %3,135,735 91,442 11.66 %
Loans held for investment at fair value836,313 26,892 12.86 %308,570 10,862 14.08 %18,523 593 12.80 %
Total loans and leases held for investment6,078,530 177,359 11.67 %5,298,704 151,931 11.47 %3,154,258 92,035 11.67 %
Retail and certificate loans held for investment at fair value46,525 1,683 14.47 %66,469 2,390 14.38 %198,813 6,969 14.02 %
Total interest-earning assets7,819,272 202,413 10.35 %6,969,423 173,999 9.99 %4,826,286 111,653 9.25 %
Cash and due from banks and restricted cash71,878 64,907 92,683 
Allowance for loan and lease losses(338,359)(314,861)(163,631)
Other non-interest earning assets666,650 613,664 486,363 
Total assets$8,219,441 $7,333,133 $5,241,701 
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts$1,633,691 $7,568 1.88 %$1,929,260 $7,500 1.54 %$2,240,450 $1,724 0.31 %
Savings accounts and certificates of deposit4,747,478 45,705 3.90 %3,576,205 28,251 3.13 %1,071,133 1,714 0.64 %
Interest-bearing deposits6,381,169 53,273 3.39 %5,505,465 35,751 2.58 %3,311,583 3,438 0.42 %
Retail notes, certificates and secured borrowings46,525 1,683 14.47 %66,469 2,390 14.38 %198,813 6,969 14.02 %
Other interest-bearing liabilities107,520 753 2.80 %105,834 615 2.33 %312,690 1,566 2.00 %
Total interest-bearing liabilities6,535,214 55,709 3.46 %5,677,768 38,756 2.71 %3,823,086 11,973 1.25 %
Non-interest bearing deposits241,954 251,686 227,337 
Other liabilities263,868 266,558 319,241 
Total liabilities$7,041,036 $6,196,012 $4,369,664 
10
LENDINGCLUB CORPORATION
NET INTEREST INCOME (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1)
Three Months Ended
March 31, 2023		Three Months Ended
December 31, 2022		Three Months Ended
March 31, 2022
Average
Balance		Interest Income/
Expense		Average Yield/
Rate		Average
Balance		Interest Income/
Expense		Average Yield/
Rate		Average
Balance		Interest Income/
Expense		Average Yield/
Rate
Total equity$1,178,405 $1,137,121 $872,037 
Total liabilities and equity$8,219,441 $7,333,133 $5,241,701 
Interest rate spread6.90 %7.28 %8.00 %
Net interest income and net interest margin$146,704 7.50 %$135,243 7.76 %$99,680 8.26 %
(1)    Consolidated presentation reflects intercompany eliminations.
(2)    Nonaccrual loans and any related income are included in their respective loan categories.

11
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
March 31,
2023		December 31, 2022
Assets
Cash and due from banks$22,732 $23,125 
Interest-bearing deposits in banks1,614,265 1,033,905 
Total cash and cash equivalents1,636,997 1,057,030 
Restricted cash47,342 67,454 
Securities available for sale at fair value ($428,395 and $399,668 at amortized cost, respectively)
380,028 345,702 
Loans held for sale at fair value44,647 110,400 
Loans and leases held for investment5,491,938 5,033,154 
Allowance for loan and lease losses(348,857)(327,852)
Loans and leases held for investment, net5,143,081 4,705,302 
Loans held for investment at fair value748,618 925,938 
Retail and certificate loans held for investment at fair value38,855 55,425 
Property, equipment and software, net144,041 136,473 
Goodwill75,717 75,717 
Other assets494,692 500,306 
Total assets$8,754,018 $7,979,747 
Liabilities and Equity
Deposits:
Interest-bearing$7,018,014 $6,158,560 
Noninterest-bearing200,840 233,993 
Total deposits7,218,854 6,392,553 
Borrowings52,980 74,858 
Retail notes, certificates and secured borrowings at fair value38,855 55,425 
Other liabilities252,587 292,617 
Total liabilities7,563,276 6,815,453 
Equity
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 shares issued and outstanding
— — 
Common stock, $0.01 par value; 180,000,000 shares authorized; 107,460,734 and 106,546,995 shares issued and outstanding, respectively
1,075 1,065 
Additional paid-in capital1,637,283 1,628,590 
Accumulated deficit(414,079)(427,745)
Accumulated other comprehensive loss(33,537)(37,616)
Total equity1,190,742 1,164,294 
Total liabilities and equity$8,754,018 $7,979,747 

12
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
Pre-Provision Net Revenue
For the three months ended
March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
GAAP Net income$13,666 $23,591 $43,198 $182,060 $40,836 
Less: Provision for credit losses(70,584)(61,512)(82,739)(70,566)(52,509)
Less: Income tax benefit (expense)(4,136)2,439 7,243 131,954 (4,988)
Pre-provision net revenue$88,386 $82,664 $118,694 $120,672 $98,333 

For the three months ended
March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Non-interest income$98,990 $127,465 $181,237 $213,832 $189,857 
Net interest income146,704 135,243 123,676 116,226 99,680 
Total net revenue245,694 262,708 304,913 330,058 289,537 
Non-interest expense(157,308)(180,044)(186,219)(209,386)(191,204)
Pre-provision net revenue88,386 82,664 118,694 120,672 98,333 
Provision for credit losses(70,584)(61,512)(82,739)(70,566)(52,509)
Income before income tax benefit (expense)17,802 21,152 35,955 50,106 45,824 
Income tax benefit (expense)(4,136)2,439 7,243 131,954 (4,988)
GAAP Net income$13,666 $23,591 $43,198 $182,060 $40,836 

Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit
For the three months ended
December 31,
2022		September 30,
2022		June 30,
2022
GAAP Net income$23,591 $43,198 $182,060 
Less: Income tax benefit from release of tax valuation allowance3,180 5,015 135,300 
Net income excluding income tax benefit$20,411 $38,183 $46,760 
GAAP Diluted EPS – common stockholders$0.22 $0.41 $1.73 
(A)Income tax benefit from release of tax valuation allowance$3,180 $5,015 $135,300 
(B)Weighted-average common shares – Diluted105,984,612 105,853,938 105,042,626 
(A/B)Diluted EPS impact of income tax benefit$0.03 $0.05 $1.29 
Diluted EPS excluding income tax benefit$0.19 $0.36 $0.44 

13
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Continued)
(In thousands, except share and per share data)
(Unaudited)
Tangible Book Value Per Common Share
March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
GAAP common equity$1,190,742 $1,164,294 $1,121,410 $1,079,117 $887,434 
Less: Goodwill(75,717)(75,717)(75,717)(75,717)(75,717)
Less: Intangible assets(15,201)(16,334)(17,512)(18,690)(19,886)
Tangible common equity$1,099,824 $1,072,243 $1,028,181 $984,710 $791,831 
Book value per common share
GAAP common equity$1,190,742 $1,164,294 $1,121,410 $1,079,117 $887,434 
Common shares issued and outstanding107,460,734 106,546,995 105,088,761 103,630,776 102,194,037 
Book value per common share$11.08 $10.93 $10.67 $10.41 $8.68 
Tangible book value per common share
Tangible common equity$1,099,824 $1,072,243 $1,028,181 $984,710 $791,831 
Common shares issued and outstanding107,460,734 106,546,995 105,088,761 103,630,776 102,194,037 
Tangible book value per common share$10.23 $10.06 $9.78 $9.50 $7.75 

14