Technology

LendingClub Reports Second Quarter 2024 Results

Published

2 years ago

July 30, 2024

10% Sequential Originations Growth

Strong Balance Sheet Growth with Stable Net Interest Margin Drives Increase in Revenue

SAN FRANCISCO, July 30, 2024 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the second quarter ended June 30, 2024.

“Our second quarter results mark an inflection point, with our business calibrated to the current rate environment and positioned to accelerate as conditions improve,” said Scott Sanborn, LendingClub CEO. “Thanks to our unique product innovations, we were able to capture strong borrower and marketplace investor demand, delivering growth in originations, revenue, and profitability. I look forward to building on our momentum in the quarters ahead.”

Second Quarter 2024 Results

Balance Sheet:

Total assets of $9.6 billion compared to $9.2 billion in the prior quarter, primarily due to growth in securities related to the structured certificates program and growth in the extended seasoning portfolio.Securities available for sale of $2.8 billion, compared to $2.2 billion in the prior quarter, primarily reflecting growth in the structured certificates program.Whole loans held on the balance sheet of $5.1 billion, which consists of loans and leases held for investment and loans held for sale, were roughly flat compared to the prior quarter.Deposits of $8.1 billion compared to $7.5 billion in the prior quarter, primarily due to an increase in high-yield savings and certificates of deposit.87% of total deposits are FDIC-insured.Strong liquidity profile with $3.0 billion in readily available liquidity.Strong capital position with a consolidated Tier 1 leverage ratio of 12.1% and consolidated Common Equity Tier 1 capital ratio of 17.9%.Book value per common share increased to $11.52, compared to $11.40 in the prior quarter.Tangible book value per common share increased to $10.75, compared to $10.61 in the prior quarter.

Financial Performance:

Loan originations of $1.8 billion, compared to $1.6 billion in the prior quarter, driven by the successful execution of new consumer loan initiatives combined with marketplace investor demand for structured certificates and higher whole loan retention.Total net revenue of $187.2 million, compared to $180.7 million in the prior quarter, driven by:Marketplace revenue of $56.4 million, compared to $55.9 million in the prior quarter, primarily reflecting higher marketplace loan originations and improved loan sale pricing partially offset by the expected fair value adjustments on the maturing Held for Sale portfolio.Net interest income of $128.5 million, compared to $122.9 million in the prior quarter, primarily reflecting growth in total interest-earning assets at a stable net interest margin of 5.75%.Provision for credit losses of $35.6 million, compared to $31.9 million in the prior quarter.Net income increased to $14.9 million, with diluted EPS of $0.13, compared to $12.3 million, with diluted EPS of $0.11, in the prior quarter. The increase was primarily driven by higher net interest income from growth in the balance sheet.Pre-Provision Net Revenue (PPNR) of $55.0 million, compared to $48.5 million in the prior quarter, primarily driven by higher total net revenue while maintaining stable expenses.

Three Months Ended

($ in millions, except per share amounts)

June 30,
2024

March 31,
2024

June 30,
2023

Total net revenue

$ 187.2

$ 180.7

$ 232.5

Non-interest expense

132.3

132.2

151.1

Pre-provision net revenue (1)

55.0

48.5

81.4

Provision for credit losses

35.6

31.9

66.6

Income before income tax expense

19.4

16.5

14.8

Income tax expense

(4.5)

(4.3)

(4.7)

Net income

$ 14.9

$ 12.3

$ 10.1

Diluted EPS

$ 0.13

$ 0.11

$ 0.09

(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 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

Third Quarter 2024

Loan originations

$1.8B to $1.9B

Pre-provision net revenue (PPNR)

$40M to $50M

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 hundreds of billions of cells of data and over $90 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 4.9 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 second quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, July 30, 2024. 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 (833) 470-1428, with Access Code 895739, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until August 6, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 305717. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), X (formerly Twitter) handles (@LendingClub and @LendingClubIR) 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 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 is an important measure because it reflects 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.

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.

For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on page 14 of this release.

We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense with reasonable certainty without unreasonable effort.

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 borrowers and platform investors; competition; overall economic conditions; the interest rate environment; the regulatory environment; 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.

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS

(In thousands, except percentages or as noted)

(Unaudited)

As of and for the three months ended

% Change

June 30,
2024

March 31,
2024

December 31,

2023

September 30,

2023

June 30,
2023

Q/Q

Y/Y

Operating Highlights:

Non-interest income

$ 58,713

$ 57,800

$ 54,129

$ 63,844

$ 85,818

2 %

(32) %

Net interest income

128,528

122,888

131,477

137,005

146,652

5 %

(12) %

Total net revenue

187,241

180,688

185,606

200,849

232,470

4 %

(19) %

Non-interest expense

132,258

132,233

130,015

128,035

151,079

0 %

(12) %

Pre-provision net revenue(1)

54,983

48,455

55,591

72,814

81,391

13 %

(32) %

Provision for credit losses

35,561

31,927

41,907

64,479

66,595

11 %

(47) %

Income before income tax expense

19,422

16,528

13,684

8,335

14,796

18 %

31 %

Income tax expense

(4,519)

(4,278)

(3,529)

(3,327)

(4,686)

6 %

(4) %

Net income

$ 14,903

$ 12,250

$ 10,155

$ 5,008

$ 10,110

22 %

47 %

Basic EPS

$ 0.13

$ 0.11

$ 0.09

$ 0.05

$ 0.09

18 %

44 %

Diluted EPS

$ 0.13

$ 0.11

$ 0.09

$ 0.05

$ 0.09

18 %

44 %

LendingClub Corporation Performance Metrics:

Net interest margin

5.75 %

6.40 %

6.91 %

7.09 %

Efficiency ratio(2)

70.6 %

73.2 %

70.0 %

63.7 %

65.0 %

Return on average equity (ROE)(3)

4.7 %

3.9 %

3.3 %

1.7 %

3.4 %

Return on average total assets (ROA)(4)

0.6 %

0.5 %

0.2 %

0.5 %

Marketing expense as a % of loan originations

1.47 %

1.44 %

1.30 %

1.19 %

LendingClub Corporation Capital Metrics:

Common equity Tier 1 capital ratio

17.9 %

17.6 %

17.9 %

16.9 %

16.1 %

Tier 1 leverage ratio

12.1 %

12.5 %

12.9 %

13.2 %

12.4 %

Book value per common share

$ 11.52

$ 11.40

$ 11.34

$ 11.02

$ 11.09

1 %

4 %

Tangible book value per common share(1)

$ 10.75

$ 10.61

$ 10.54

$ 10.21

$ 10.26

1 %

5 %

Loan Originations (in millions)(5):

Total loan originations

$ 1,813

$ 1,646

$ 1,630

$ 1,508

$ 2,011

10 %

(10) %

Marketplace loans

$ 1,477

$ 1,361

$ 1,432

$ 1,182

$ 1,353

9 %

Loan originations held for investment

$ 336

$ 285

$ 198

$ 326

$ 657

18 %

(49) %

Loan originations held for investment as a % of total loan originations

19 %

17 %

12 %

22 %

33 %

Servicing Portfolio AUM (in millions)(6):

Total servicing portfolio

$ 12,999

$ 13,437

$ 14,122

$ 14,818

$ 15,669

(3) %

(17) %

Loans serviced for others

$ 8,337

$ 8,671

$ 9,336

$ 9,601

$ 10,204

(4) %

(18) %

(1)

Represents a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Financial Measures.”

(2)

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

(3)

Calculated as annualized net income divided by average equity for the period presented.

(4)

Calculated as annualized net income divided by average total assets for the period presented.

(5)

Includes unsecured personal loans and auto loans only.

(6)

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.

LENDINGCLUB CORPORATION

OPERATING HIGHLIGHTS (Continued)

(In thousands, except percentages or as noted)

(Unaudited)

As of and for the three months ended

% Change

June 30,
2024

March 31,
2024

December 31,

2023

September 30,

2023

June 30,
2023

Q/Q

Y/Y

Balance Sheet Data:

Securities available for sale

$ 2,814,383

$ 2,228,500

$ 1,620,262

$ 795,669

$ 523,579

26 %

438 %

Loans held for sale at fair value

$ 791,059

$ 550,415

$ 407,773

$ 362,789

$ 250,361

44 %

216 %

Loans and leases held for investment at amortized cost

$ 4,228,391

$ 4,505,816

$ 4,850,302

$ 5,237,277

$ 5,533,349

(6) %

(24) %

Gross allowance for loan and lease losses (1)

$ (285,368)

$ (311,794)

$ (355,773)

$ (388,156)

$ (383,960)

(8) %

(26) %

Recovery asset value (2)

$ 56,459

$ 52,644

$ 45,386

$ 37,661

$ 28,797

7 %

96 %

Allowance for loan and lease losses

$ (228,909)

$ (259,150)

$ (310,387)

$ (350,495)

$ (355,163)

(12) %

(36) %

Loans and leases held for investment at amortized cost, net

$ 3,999,482

$ 4,246,666

$ 4,539,915

$ 4,886,782

$ 5,178,186

(6) %

(23) %

Loans held for investment at fair value (3)

$ 339,222

$ 427,396

$ 272,678

$ 344,417

$ 430,956

(21) %

Total loans and leases held for investment (3)

$ 4,338,704

$ 4,674,062

$ 4,812,593

$ 5,231,199

$ 5,609,142

(7) %

(23) %

Whole loans held on balance sheet (4)

$ 5,129,763

$ 5,224,477

$ 5,220,366

$ 5,593,988

$ 5,859,503

(2) %

(12) %

Total assets

$ 9,586,050

$ 9,244,828

$ 8,827,463

$ 8,472,351

$ 8,342,506

4 %

15 %

Total deposits

$ 8,095,328

$ 7,521,655

$ 7,333,486

$ 7,000,263

$ 6,843,535

8 %

18 %

Total liabilities

$ 8,298,105

$ 7,978,542

$ 7,575,641

$ 7,264,132

$ 7,136,983

4 %

16 %

Total equity

$ 1,287,945

$ 1,266,286

$ 1,251,822

$ 1,208,219

$ 1,205,523

2 %

7 %

(1)

Represents the allowance for future estimated net charge-offs on existing portfolio balances.

(2)

Represents the negative allowance for expected recoveries of amounts previously charged-off.

(3)

Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amounts have been reclassified to conform to the current period presentation.

(4)

Includes loans held for sale at fair value, loans and leases held for investment at amortized cost, net of allowance for loan and lease losses, and loans held for investment at fair value.

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

June 30,
2024

March 31,
2024

December 31,
2023

September 30,
2023

June 30,
2023

Asset Quality Metrics (1):

Allowance for loan and lease losses to total loans and leases held
for investment at amortized cost

5.4 %

5.8 %

6.4 %

6.7 %

6.4 %

Allowance for loan and lease losses to commercial loans and leases
held for investment at amortized cost

2.7 %

1.9 %

1.8 %

2.0 %

1.9 %

Allowance for loan and lease losses to consumer loans and leases
held for investment at amortized cost

5.9 %

6.4 %

7.2 %

7.4 %

7.1 %

Gross allowance for loan and lease losses to consumer loans and
leases held for investment at amortized cost

7.5 %

7.8 %

8.3 %

8.2 %

7.7 %

Net charge-offs

$ 66,818

$ 80,483

$ 82,511

$ 68,795

$ 59,884

Net charge-off ratio (2)

6.2 %

6.9 %

6.6 %

5.1 %

4.4 %

(1)

Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.

(2)

Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period.

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:

June 30,
2024

December 31,
2023

Unsecured personal

$ 3,144,504

$ 3,726,830

Residential mortgages

178,290

183,050

Secured consumer

244,288

250,039

Total consumer loans held for investment

3,567,082

4,159,919

Equipment finance (1)

83,770

110,992

Commercial real estate

381,873

380,322

Commercial and industrial

195,666

199,069

Total commercial loans and leases held for investment

661,309

690,383

Total loans and leases held for investment at amortized cost

4,228,391

4,850,302

Allowance for loan and lease losses

(228,909)

(310,387)

Loans and leases held for investment at amortized cost, net

$ 3,999,482

$ 4,539,915

Loans held for investment at fair value (2)

339,222

272,678

Total loans and leases held for investment

$ 4,338,704

$ 4,812,593

(1)

Comprised of sales-type leases for equipment.

(2)

Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amount has been reclassified to conform to the current period presentation.

LENDINGCLUB CORPORATION

ALLOWANCE FOR LOAN AND LEASE LOSSES

(In thousands)

(Unaudited)

The following table presents the components of the allowance for loan and lease losses on loans and leases held for investment at amortized cost:

June 30, 2024

December 31, 2023

Gross allowance for loan and lease losses (1)

$ 285,368

$ 355,773

Recovery asset value (2)

(56,459)

(45,386)

Allowance for loan and lease losses

$ 228,909

$ 310,387

(1)

Represents the allowance for future estimated net charge-offs on existing portfolio balances.

(2)

Represents the negative allowance for expected recoveries of amounts previously charged-off.

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

June 30, 2024

March 31, 2024

Consumer

Commercial

Total

Consumer

Commercial

Total

Allowance for loan and lease losses, beginning of period

$ 246,280

$ 12,870

$ 259,150

$ 298,061

$ 12,326

$ 310,387

Credit loss expense for loans and leases held for investment

30,760

5,817

36,577

27,686

1,560

29,246

Charge-offs

(77,494)

(594)

(78,088)

(89,110)

(1,232)

(90,342)

Recoveries

11,183

11,270

9,643

216

9,859

Allowance for loan and lease losses, end of period

$ 210,729

$ 18,180

$ 228,909

$ 246,280

$ 12,870

$ 259,150

Three Months Ended

June 30, 2023

Consumer

Commercial

Total

Allowance for loan and lease losses, beginning of period

$ 333,546

$ 15,311

$ 348,857

Credit loss expense (benefit) for loans and leases held for investment

66,874

(684)

66,190

Charge-offs

(63,345)

(924)

(64,269)

Recoveries

4,086

299

4,385

Allowance for loan and lease losses, end of period

$ 341,161

$ 14,002

$ 355,163

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:

June 30, 2024

30-59
Days

60-89
Days

90 or More
Days

Total Days
Past Due

Guaranteed
Amount (1)

Unsecured personal

$ 24,837

$ 22,869

$ 23,825

$ 71,531

$ —

Residential mortgages

—

147

—

147

—

Secured consumer

1,825

622

258

2,705

—

Total consumer loans held for investment

$ 26,662

$ 23,638

$ 24,083

$ 74,383

$ —

Equipment finance

$ 18

$ —

$ 8

$ 26

$ —

Commercial real estate

7,422

384

8,569

16,375

10,894

Commercial and industrial

8,715

774

5,869

15,358

12,736

Total commercial loans and leases held for investment

$ 16,155

$ 1,158

$ 14,446

$ 31,759

$ 23,630

Total loans and leases held for investment at amortized cost

$ 42,817

$ 24,796

$ 38,529

$ 106,142

$ 23,630

December 31, 2023

30-59
Days

60-89
Days

90 or More
Days

Total Days
Past Due

Guaranteed
Amount (1)

Unsecured personal

$ 32,716

$ 29,556

$ 30,132

$ 92,404

$ —

Residential mortgages

1,751

—

1,751

—

Secured consumer

2,076

635

217

2,928

—

Total consumer loans held for investment

$ 36,543

$ 30,191

$ 30,349

$ 97,083

$ —

Equipment finance

$ 1,265

$ —

$ 1,265

$ —

Commercial real estate

—

3,566

1,618

5,184

4,047

Commercial and industrial

12,261

1,632

1,515

15,408

11,260

Total commercial loans and leases held for investment

$ 13,526

$ 5,198

$ 3,133

$ 21,857

$ 15,307

Total loans and leases held for investment at amortized cost

$ 50,069

$ 35,389

$ 33,482

$ 118,940

$ 15,307

(1) Represents loan balances guaranteed by the Small Business Association.

LENDINGCLUB CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended

Change (%)

June 30,
2024

March 31,
2024

June 30,
2023

Q2 2024

Q1 2024

Q2 2024

Q2 2023

Non-interest income:

Origination fees

$ 77,131

$ 70,079

$ 70,989

10 %

9 %

Servicing fees

19,869

19,592

22,015

1 %

(10) %

Gain on sales of loans

10,748

10,909

13,221

(1) %

(19) %

Net fair value adjustments

(51,395)

(44,689)

(23,442)

15 %

119 %

Marketplace revenue

56,353

55,891

82,783

1 %

(32) %

Other non-interest income

2,360

1,909

3,035

24 %

(22) %

Total non-interest income

58,713

57,800

85,818

2 %

(32) %

Total interest income

219,634

207,351

214,486

6 %

2 %

Total interest expense

91,106

84,463

67,834

8 %

34 %

Net interest income

128,528

122,888

146,652

5 %

(12) %

Total net revenue

187,241

180,688

232,470

4 %

(19) %

Provision for credit losses

35,561

31,927

66,595

11 %

(47) %

Non-interest expense:

Compensation and benefits

56,540

59,554

71,553

(5) %

(21) %

Marketing

26,665

24,136

23,940

10 %

11 %

Equipment and software

12,360

12,684

13,968

(3) %

(12) %

Depreciation and amortization

13,072

12,673

11,638

3 %

12 %

Professional services

7,804

7,091

9,974

10 %

(22) %

Occupancy

3,941

3,861

4,684

2 %

(16) %

Other non-interest expense

11,876

12,234

15,322

(3) %

(22) %

Total non-interest expense

132,258

132,233

151,079

— %

(12) %

Income before income tax expense

19,422

16,528

14,796

18 %

31 %

Income tax expense

(4,519)

(4,278)

(4,686)

6 %

(4) %

Net income

$ 14,903

$ 12,250

$ 10,110

22 %

47 %

Net income per share:

Basic EPS

$ 0.13

$ 0.11

$ 0.09

18 %

44 %

Diluted EPS

$ 0.13

$ 0.11

$ 0.09

18 %

44 %

Weighted-average common shares – Basic

111,395,025

110,685,796

107,892,590

1 %

3 %

Weighted-average common shares – Diluted

111,466,497

110,687,380

107,895,072

1 %

3 %

LENDINGCLUB CORPORATION

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)

Consolidated LendingClub Corporation (1)

Three Months Ended

June 30, 2024

Three Months Ended

March 31, 2024

Three Months Ended

June 30, 2023

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

$ 976,330

$ 13,168

5.40 %

$ 1,217,395

$ 16,503

5.42 %

$ 1,512,700

$ 19,134

5.06 %

Securities available for sale at fair value

2,406,767

42,879

7.13 %

1,972,561

35,347

7.17 %

437,473

5,948

5.44 %

Loans held for sale at fair value

838,143

26,721

12.75 %

467,275

14,699

12.58 %

106,865

4,433

16.59 %

Loans and leases held for investment:

Unsecured personal loans

3,243,161

108,425

13.37 %

3,518,101

116,055

13.20 %

4,360,506

145,262

13.33 %

Commercial and other consumer loans

1,097,846

16,394

5.97 %

1,115,931

16,338

5.86 %

1,156,751

16,823

5.82 %

Loans and leases held for investment at amortized cost

4,341,007

124,819

11.50 %

4,634,032

132,393

11.43 %

5,517,257

162,085

11.75 %

Loans held for investment at fair value (3)

383,872

12,047

12.55 %

256,335

8,409

13.12 %

703,729

22,886

13.01 %

Total loans and leases held for investment (3)

4,724,879

136,866

11.59 %

4,890,367

140,802

11.52 %

6,220,986

184,971

11.89 %

Total interest-earning assets

8,946,119

219,634

9.82 %

8,547,598

207,351

9.70 %

8,278,024

214,486

10.36 %

Cash and due from banks and restricted cash

55,906

58,440

78,221

Allowance for loan and lease losses

(245,478)

(291,168)

(354,348)

Other non-interest earning assets

632,253

631,468

686,956

Total assets

$ 9,388,800

$ 8,946,338

$ 8,688,853

Interest-bearing liabilities

Interest-bearing deposits:

Checking and money market accounts

$ 1,097,696

$ 10,084

3.69 %

$ 1,054,614

$ 9,410

3.59 %

$ 1,397,302

$ 7,760

2.23 %

Savings accounts and certificates of deposit

6,449,061

80,109

5.00 %

6,069,942

74,553

4.94 %

5,546,862

58,761

4.25 %

Interest-bearing deposits

7,546,757

90,193

4.81 %

7,124,556

83,963

4.74 %

6,944,164

66,521

3.84 %

Other interest-bearing liabilities (3)

56,628

913

6.45 %

26,571

500

7.53 %

64,169

1,313

8.18 %

Total interest-bearing liabilities

7,603,385

91,106

4.82 %

7,151,127

84,463

4.75 %

7,008,333

67,834

3.88 %

Non-interest bearing deposits

303,199

317,430

205,750

Other liabilities

215,608

220,544

272,142

Total liabilities

$ 8,122,192

$ 7,689,101

$ 7,486,225

Total equity

$ 1,266,608

$ 1,257,237

$ 1,202,628

Total liabilities and equity

$ 9,388,800

$ 8,946,338

$ 8,688,853

Interest rate spread

5.00 %

4.95 %

6.48 %

Net interest income and net interest margin

$ 128,528

5.75 %

$ 122,888

5.75 %

$ 146,652

7.09 %

(1)

Consolidated presentation reflects intercompany eliminations.

(2)

Nonaccrual loans and any related income are included in their respective loan categories.

(3)

Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Other interest-bearing liabilities.” Prior period amounts have been reclassified to conform to the current period presentation.

LENDINGCLUB CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

June 30,
2024

December 31,
2023

Assets

Cash and due from banks

$ 19,099

$ 14,993

Interest-bearing deposits in banks

919,020

1,237,511

Total cash and cash equivalents

938,119

1,252,504

Restricted cash

31,332

41,644

Securities available for sale at fair value ($2,869,880 and $1,663,990 at amortized cost, respectively)

2,814,383

1,620,262

Loans held for sale at fair value

791,059

407,773

Loans and leases held for investment

4,228,391

4,850,302

Allowance for loan and lease losses

(228,909)

(310,387)

Loans and leases held for investment, net

3,999,482

4,539,915

Loans held for investment at fair value (1)

339,222

272,678

Property, equipment and software, net

166,150

161,517

Goodwill

75,717

Other assets

430,586

455,453

Total assets

$ 9,586,050

$ 8,827,463

Liabilities and Equity

Deposits:

Interest-bearing

$ 7,759,632

$ 7,001,680

Noninterest-bearing

335,696

331,806

Total deposits

8,095,328

7,333,486

Borrowings (1)

5,474

19,354

Other liabilities

197,303

222,801

Total liabilities

8,298,105

7,575,641

Equity

Common stock, $0.01 par value; 180,000,000 shares authorized; 111,812,215 and 110,410,602 shares issued and outstanding, respectively

1,118

1,104

Additional paid-in capital

1,685,865

1,669,828

Accumulated deficit

(361,653)

(388,806)

Accumulated other comprehensive loss

(37,385)

(30,304)

Total equity

1,287,945

1,251,822

Total liabilities and equity

$ 9,586,050

$ 8,827,463

(1)

Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Borrowings.” Prior period amounts have been reclassified to conform to the current period presentation.

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

June 30,
2024

March 31,

2024

December 31,

2023

September 30,

2023

June 30,
2023

GAAP Net income

$ 14,903

$ 12,250

$ 10,155

$ 5,008

$ 10,110

Less: Provision for credit losses

(35,561)

(31,927)

(41,907)

(64,479)

(66,595)

Less: Income tax expense

(4,519)

(4,278)

(3,529)

(3,327)

(4,686)

Pre-provision net revenue

$ 54,983

$ 48,455

$ 55,591

$ 72,814

$ 81,391

For the three months ended

June 30,
2024

March 31,

2024

December 31,

2023

September 30,

2023

June 30,
2023

Non-interest income

$ 58,713

$ 57,800

$ 54,129

$ 63,844

$ 85,818

Net interest income

128,528

122,888

131,477

137,005

146,652

Total net revenue

187,241

180,688

185,606

200,849

232,470

Non-interest expense

(132,258)

(132,233)

(130,015)

(128,035)

(151,079)

Pre-provision net revenue

54,983

48,455

55,591

72,814

81,391

Provision for credit losses

(35,561)

(31,927)

(41,907)

(64,479)

(66,595)

Income before income tax expense

19,422

16,528

13,684

8,335

14,796

Income tax expense

(4,519)

(4,278)

(3,529)

(3,327)

(4,686)

GAAP Net income

$ 14,903

$ 12,250

$ 10,155

$ 5,008

$ 10,110

Tangible Book Value Per Common Share

June 30,
2024

March 31,

2024

December 31,

2023

September 30,

2023

June 30,
2023

GAAP common equity

$ 1,287,945

$ 1,266,286

$ 1,251,822

$ 1,208,219

$ 1,205,523

Less: Goodwill

(75,717)

Less: Intangible assets

(10,293)

(11,165)

(12,135)

(13,151)

(14,167)

Tangible common equity

$ 1,201,935

$ 1,179,404

$ 1,163,970

$ 1,119,351

$ 1,115,639

Book value per common share

GAAP common equity

$ 1,287,945

$ 1,266,286

$ 1,251,822

$ 1,208,219

$ 1,205,523

Common shares issued and outstanding

111,812,215

111,120,415

110,410,602

109,648,769

108,694,120

Book value per common share

$ 11.52

$ 11.40

$ 11.34

$ 11.02

$ 11.09

Tangible book value per common share

Tangible common equity

$ 1,201,935

$ 1,179,404

$ 1,163,970

$ 1,119,351

$ 1,115,639

Common shares issued and outstanding

111,812,215

111,120,415

110,410,602

109,648,769

108,694,120

Tangible book value per common share

$ 10.75

$ 10.61

$ 10.54

$ 10.21

$ 10.26

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SOURCE LendingClub Corporation

Technology

VeriPark selected by Queensland Country Bank to support major technology transformation

Published

2 minutes ago

September 3, 2026

LONDON, Sept. 4, 2026 /PRNewswire/ — VeriPark, a global financial services technology provider, announced that Queensland Country Bank has selected its customer experience solutions as part of a major transformation program designed to deliver more connected, and member-focused banking experiences.

Queensland Country Bank will implement VeriPark’s VeriChannel digital banking platform, VeriTouch CRM platform and VeriLoan loan origination system. Together, the solutions will support digital banking, onboarding, lending and customer engagement across digital and assisted channels.

The broader transformation also includes Fiserv’s Finxact core banking platform and Vision Next card management solution. By bringing these technologies together, Queensland Country Bank is creating a future-ready environment spanning core banking, cards, lending, customer relationship management and digital channels.

The program will help the bank progressively modernize its platforms, reduce technology complexity and create more integrated experiences across member touchpoints, while preserving its community and member-owned focus.

“This is an important step in the next chapter of Queensland Country Bank,” said Shawn Anderson, Chief Transformation Officer of Queensland Country Bank. “Our Members expect banking to be simple, reliable and personal. By partnering with Fiserv and VeriPark, we are investing in the foundations that will help us deliver better experiences, support our people and continue serving Queensland communities well into the future.”

“We are proud to partner with Queensland Country Bank as it builds the foundations for its next generation of Member experiences,” said David Dervish, Chief Revenue Officer at VeriPark. “By connecting digital banking, lending and customer engagement, our platform will help the bank deliver more personalised and seamless journeys while giving its teams a more unified view of every Member. We look forward to turning this transformation vision into tangible value for Members and employees.”

QCB (www.queenslandcountry.bank)
Queensland Country Bank is a member-owned bank committed to helping Queenslanders live better lives through better financial wellbeing achieved through personal service, local understanding and community-focused banking. With roots across regional Queensland, the bank provides a range of banking products and services for Members across the state.

VeriPark (veripark.com) 
VeriPark is a global solutions provider enabling financial institutions to become digital leaders by placing Customer Experience at the core of digital transformation. From Omnichannel Delivery and Customer Engagement to Branch Automation and Loan Origination, VeriPark helps financial institutions accelerate digital transformation, increase productivity, and achieve tangible business outcomes.

View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/veripark-selected-by-queensland-country-bank-to-support-major-technology-transformation-302869499.html

Technology

Intouch Insight to Unveil Annual Drive-Thru Study at QSR Evolution Conference

Published

1 hour ago

September 3, 2026

Intouch Insight (INX: CA) to reveal the results of its annual Drive-Thru Study during the main stage session at the QSR Evolution Conference in AtlantaMain stage reveal to be delivered by VP Sales, Marketing & Product Strategy Sarah Beckett and Chief Revenue Officer Laura Livers on Thursday, September 10, 2026, ahead of the day’s keynoteBeckett and Livers will also moderate a panel of quick service restaurant operators on the technologies shaping the drive-thru of the future

OTTAWA, ON, Sept. 3, 2026 /CNW/ — Intouch Insight Ltd. (OTCQX: INXSF) (“Intouch” or the “Company”), a provider of customer experience measurement solutions, today announced that it will present the findings of its annual Drive-Thru Study on the main stage at the QSR Evolution Conference, taking place September 8-10, 2026, at the Hyatt Regency Atlanta. This marks the fourth consecutive year Intouch has partnered with QSR Magazine and Arrowfly, formerly WTWH Media, to bring the study’s results to the conference stage.

The main stage session, “Intouch Insight Drive-Thru Report Reveal,” is scheduled for Thursday, September 10, 2026, at 8:45 a.m. Eastern Time, immediately ahead of the day’s keynote. Sarah Beckett, VP Sales,Marketing & Product Strategy, and Laura Livers, Chief Revenue Officer, will give attendees an early, exclusive look at the fastest, most accurate, and best customer service drive-thrus in America.

Beckett and Livers will also moderate a panel session, “Unveiling the Drive-Thru of the Future,” which goes deeper into the technologies and innovations separating winning brands, and what it takes to run a modern drive-thru that delivers consistency and experience at scale. Panelists include Taylor Crookston-Grace, Director, Brand Standard, BK US&C Operations; Michael MacLennan, Cofounder and Co-CEO, Tryarc; Chris Cheek, Chief Development Officer, Newk’s Eatery; Trace Miller, Founder & CEO, Konala; and Tim Sharpe, COO, Oliver’s Real Food.

Now in its fourth year, the QSR Evolution Conference brings together senior leaders from across the quick service restaurant industry for practitioner-led sessions on operations, technology, and customer experience. Intouch’s participation on the main stage reflects its continued work in customer experience measurement and operational audits for restaurant operators and other multi-location brands.

Cameron Watt, President and Chief Executive Officer of Intouch Insight, said:

“The drive-thru study has become one of the most anticipated benchmarks in the industry, and the main stage at QSR Evolution is the right place to reveal it. Our research shows where brands are winning on speed, accuracy, and service, and where the gaps still are. We are looking forward to putting that data in front of the operators who can act on it, and to a fourth year of partnering with QSR Magazine and Arrowfly to make it happen.”

About Intouch Insight

Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, geolocation data capture and event marketing automation solutions. For more information, visit intouchinsight.com.

Certain statements included in this news release including those related to the Company’s quarterly results, future products, opportunities and cost initiatives, strategies, and other statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions, are forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements that are made as of the date hereof, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company’s current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management cautions the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties. Please refer to the risks set forth in the Company’s most recent annual MD&A and the Company’s continuous disclosure documents that can be found on SEDAR+ at www.sedarplus.ca. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Intouch Insight Ltd.

Technology

Lyntris Completes CDR for KSAT Hyperion Satellite Program

Published

1 hour ago

September 3, 2026

Tri-band RF system advances for KSAT’s next-generation HYPER relay network

WASHINGTON, Sept. 3, 2026 /PRNewswire/ — Lyntris Inc. (NYSE: LYNX), a defense technology company delivering sense-to-act connectivity solutions for the modern connected battlespace has completed Critical Design Review (CDR) for the tri-band antenna system in development for Kongsberg Satellite Services (KSAT)’s two-satellite Hyperion mission, marking a key milestone as the program advances toward hardware integration, qualification, and flight.

Hyperion is the pathfinder for HYPER, KSAT’s next-generation hybrid RF and optical relay network designed to extend global connectivity into orbit. The architecture will enable spacecraft to move mission data through relay satellites when direct ground-station access is unavailable, reducing latency and increasing access to time-sensitive information.

Delivering tri-band performance in a single antenna system is a demanding engineering problem. Each frequency band has to be tightly controlled — filtering out unwanted signals, isolating the bands from each other, and minimizing signal loss. But optimizing for one band can easily degrade performance in another. Meeting those requirements for all three simultaneously, inside a compact, space-qualified envelope, leaves little room for error.

That difficulty compounds when the design moves from RF engineering into flight hardware, and the completed system then has to be validated in test facilities capable of characterizing performance across all three bands at once, a capability few organizations maintain in-house.

Completion of CDR as planned demonstrates the technical maturity of the design and reflects the close engineering partnership between Lyntris and KSAT as both teams move toward flight hardware.

Lyntris brings RF engineering, manufacturing, system integration, and multi-band testing together under one roof. That combination — along with proprietary design and process IP — is what allows a design as demanding as the tri-band antenna to move from requirements to flight hardware.

“Hyperion is an important step toward a more connected and resilient space architecture,” said Madison Dye, Lyntris’ Vice President of C5ISR. “We’re proud to partner with KSAT and provide the advanced RF technology needed to make that architecture work. Completing CDR on schedule demonstrates our ability to move complex antenna systems from requirements to flight-ready hardware with speed and discipline.”

About Lyntris

Lyntris is a defense technology company delivering sense-to-act connectivity solutions for the modern, connected battlespace. Combining differentiated hardware, software and mission expertise, Lyntris helps customers detect threats earlier, decide faster and act with precision in contested, multi-domain environments.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “expect,” “believe,” “anticipate,” “may,” “could,” “intend,” “plan,” “estimate,” “target,” “predict,” “project,” “will,” “should,” “forecast,” “outlook” or similar expressions, or by discussion of strategies, plans or intentions.

Forward-looking statements in this press release include, but are not limited to, statements regarding: the expected timeline and progress of the Hyperion antenna program; the anticipated technical performance and capabilities of the tri-band antenna system; expected production and delivery schedules; the role of the antenna in KSAT’s HYPER relay network architecture; Lyntris’ ability to move complex antenna systems from requirements to flight-ready hardware; statements regarding Lyntris’ manufacturing, integration and qualification capabilities; and the potential for expanded business opportunities.

These statements are based on current expectations, estimates, assumptions and projections of Lyntris’ management and are neither predictions nor guarantees of future events, circumstances or performance. Forward-looking statements are inherently subject to known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. Important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, without limitation: dependence on KSAT’s program decisions, priorities, funding and continued support for the Hyperion demonstration mission and HYPER relay network; technical risks inherent in developing, qualifying, integrating and operating space-qualified hardware; the risk that completion of CDR does not guarantee successful qualification, integration or flight; the competitive environment for RF and antenna technologies; supply chain disruptions, shortages or constraints affecting specialized materials and components; schedule delays, technical challenges or cost overruns in complex space and defense programs; uncertainties in U.S. government and commercial space budgets, appropriations and customer spending; changes in applicable laws, regulations or government procurement policies; and other factors described under “Risk Factors” and elsewhere in Lyntris’ filings with the Securities and Exchange Commission, including its registration statement on Form S-1, as amended, copies of which are available free of charge on the SEC’s website at www.sec.gov under Lyntris Inc.

The forward-looking statements included in this press release are only made as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Nothing in this press release, including use or display of third parties’ trademarks, service marks, trade name or products, should be construed as an approval, endorsement, guarantee or sponsorship by any third parties of Lyntris Inc., its products, business or financial performance or any aspect of this press release.

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SOURCE Lyntris