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

Lahaina art gallery turns tragedy into technology with FIRST LOOK

Published

12 minutes ago

April 22, 2026

Harte International Galleries to launch first of its kind “gallery in your pocket”.

LAHAINA, Hawaii, April 21, 2026 /PRNewswire/ — Following the devastating Maui wildfire of August 8, 2023, which destroyed its Lahaina gallery, Harte International Galleries announces the launch of FIRST LOOK, an innovative digital application designed to bring investment grade art directly to collectors. This new “gallery in your pocket” app ensures continued access to masterworks and new releases, embodying the gallery’s resilience and commitment to its clientele.

Maui art gallery turns tragedy into innovation with a fine art APP that’s a gallery in your pocket, called FIRST LOOK.

To explore the FIRST LOOK app and discover its unique offerings, please visit: www.hartegalleries.com

Reimagining Art Access

“FIRST LOOK from Harte International Galleries is not just an app; it’s a vibrant new chapter for art enthusiasts, offering an engaging and informative way to discover masterpieces by iconic artists such as Picasso, Chagall, Miro, Salvador Dali and even Sir Anthony Hopkins at discounted prices, thanks to the elimination of traditional gallery overheads, making world-class art more accessible and enjoyable than ever before,” said Glenn Harte.

With physical rebuilding efforts in Lahaina currently stalled, Glenn and Devon Harte, owners of Harte International Galleries, developed FIRST LOOK as a direct response to the loss of their physical space. This digital platform allows the gallery to rebuild its inventory and continue serving loyal collectors without the overhead of a traditional brick-and-mortar location. The app provides a fun, informative, and accessible way to engage with fine art.

Direct Access to Masterworks

FIRST LOOK offers collectors unparalleled, immediate access to new acquisitions and exclusive releases. Members receive instant notifications on their mobile phones, complete with images, detailed descriptions, and pricing for each piece. This direct communication channel allows members to inquire about art with a single tap, connecting them directly with the gallery owners.

The app features a curated selection of renowned artists and masterworks, including:

Masterworks: Picasso, Chagall, Miro, Matisse, Rembrandt, Durer, Salvador Dali.New Releases: Sir Anthony Hopkins and famed graffiti artist Rascal.

By leveraging FIRST LOOK, Harte International Galleries continues its legacy of providing access to exceptional art, adapting to new realities while maintaining the highest standards of quality and authenticity. Further information about the app and its offerings is available at: www.hartegalleries.com

Harte International Galleries, formerly of Lahaina, Maui has rebuilt with a digital gallery for serious collectors, called FIRST LOOK.

Known for offering museum grade art from Picasso, Chagall, Miro, Matisse, Dali, Rembrandt, Durer, Sir Anthony Hopkins and Rascal – Harte International Galleries uses innovation to create a digital gallery.

go to: www.hartegalleries.com

Media Contact:
Glenn Harte
glennharte@hartegalleries.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/lahaina-art-gallery-turns-tragedy-into-technology-with-first-look-302749439.html

SOURCE Harte International Galleries

Technology

As homes get smarter, new global research names Aiper as the world’s No.1 smart robotic pool cleaner brand

Published

12 minutes ago

April 22, 2026

New research reveals Aiper holds the position of the world’s No.1 brand of smart robotic pool cleaners based on 2026 manufacturer sales volume worldwide

SYDNEY, April 22, 2026 /PRNewswire/ — As technologies like artificial intelligence (AI) become embedded in everyday life1, homeowners are embracing innovation more than ever. This trend is reflected in new global research which names Aiper the world’s No.1 brand of smart robotic pool cleaners*. From robot vacuums indoors to smart security, lighting and energy systems, homeowners are now seeking systems that help optimise energy use, align with cost-saving goals and reduce environmental impact, without sacrificing comfort or convenience.

According to independent research by Euromonitor International, completed in December 2025, Aiper ranked No.1 globally based on manufacturer sales volume worldwide. The findings come as smart home adoption accelerates globally, valued at more than $147 billion USD in 2025 and projected to grow rapidly over the next decade2, as households prioritise automation that improves efficiency and supports sustainability goals.

Pool care is following the same trajectory. With more than 3.1 million Australians living in homes with a swimming pool or spa3, demand is growing for intelligent, low-effort systems that can operate autonomously, efficiently and reliably, while helping households manage energy use and ongoing maintenance costs.

Aiper’s innovation-led approach was formally recognised at the 2026 Consumer Electronics Show (CES) in Las Vegas, where Euromonitor International presented Aiper with an official certificate acknowledging its global sales leadership. The recognition highlights not only the brand’s growth, but the accelerating mainstream adoption of intelligent robotics in outdoor living.

Aiper’s next innovation, the Scuba V3, is the world’s first cognitive AI-powered robotic pool cleaner. Lightweight and easy to use, it cleans 10x faster with AI vision that identifies 20+ debris types in 3 seconds. Using Cognitive AI Navium™ mode, it automatically adapts cleaning paths, suction, and frequency to each pool, delivering a true set-it-and-forget-it experience for crystal-clear water. Demonstrating how robotics and AI can support more sustainable, low-effort outdoor living while helping households better manage energy and water use.This model will be available in the Australia market during Spring season.

This growing momentum is also being recognised by Aiper’s key retail partner in Australia, Clark Rubber. “At Clark Rubber, we’re seeing strong growth in demand for smarter, more efficient pool care solutions as Australian households look to reduce maintenance time, energy use and overall costs. Aiper’s global recognition reflects the increasing role that innovation and intelligent technology are playing in outdoor living. As a key retail partner, we’re excited to bring these advanced solutions to Australian consumers and support the shift toward more sustainable, low-effort pool ownership.” said Anthony Grice, CEO Clark Rubber.

For Australian households, long swimming seasons, outdoor lifestyles, and rising energy costs make smart, efficient systems a practical necessity. Aiper’s global recognition marks a turning point for smart outdoor living, where advanced robotics and AI are increasingly powerful, accessible, and sustainable, shaping the way modern homes evolve. For more information, visit https://aiper.com/au/home

Research and Citations

https://hai.stanford.edu/ai-index/2025-ai-index-report https://www.fortunebusinessinsights.com/industry-reports/smart-home-market-101900 https://www.roymorgan.com/findings/9311-australian-swimming-pool-ownership-march-2023

About Aiper

Aiper is the global pioneer of cordless robotic pool cleaning technology and a leader in smart yard product solutions. Aiper empowers homeowners to transform their backyards into a personal vacation retreat with the help of innovative, smarter, and greener product solutions. Aiper has been recognised as a CES Innovation Awards honouree in 2023, 2024, and 2025, underscoring its commitment to pioneering smart yard solutions.

*Aiper is the No.1 brand of smart robotic pool cleaner in the world in terms of sales volume.

Source: Euromonitor International Co., Ltd., in terms of 2025 manufacturer sales volume (units) in the world. Smart robotic pool cleaner is
defined as: intelligent service robots integrating mechanical, electronic, software algorithm and sensor technologies. They autonomously or
with minimal human intervention perform pool cleaning and maintenance tasks, typically featuring smart navigation, path planning, and
multiple cleaning modes. Research completed in 2026/3.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/as-homes-get-smarter-new-global-research-names-aiper-as-the-worlds-no1-smart-robotic-pool-cleaner-brand-302748601.html

SOURCE Aiper

Technology

Slip And Fall Vs Premises Liability Explained By HelloNation Featuring Personal Injury Attorney Joe Stanley

Published

12 minutes ago

April 22, 2026

The article clarifies how property owner responsibility and legal negligence affect injury claims under New York law.

WATERTOWN, N.Y., April 21, 2026 /PRNewswire/ — What is the difference between slip and fall incidents and premises liability when someone is injured on another person’s property? The answer is addressed in a HelloNation article featuring insights from Joe Stanley of Stanley Law Offices LLP in Watertown, New York.

The HelloNation article explains that, while slip-and-fall and premises liability are often used interchangeably, they are not the same under New York law. A slip and fall refers to the actual event in which a person slips, trips, or falls due to a condition on a property. Premises liability, however, is the legal framework used to determine whether a property owner is responsible for an injury. This distinction is important because not every slip-and-fall incident results in a valid injury claim.

According to the article, property owner responsibility in Watertown NY, depends on whether the owner knew or should have known about a hazardous condition. New York law requires property owners to maintain safe premises and to warn visitors about known dangers. This duty applies broadly to commercial properties, rental units, and private homes that welcome guests. The article notes that hazards such as wet floors, icy walkways, or poor lighting may result in premises liability if they are not addressed in a reasonable time.

The article further emphasizes that legal negligence is the key factor in determining liability. Courts evaluating injury claims consider whether a property owner took reasonable steps to inspect and maintain the property. This includes reviewing maintenance practices, prior complaints, and the foreseeability of the risk. If a hazard appeared suddenly and the property owner had no reasonable opportunity to correct it, premises liability may not apply, even if a slip and fall occurred.

The HelloNation article also highlights how property owner responsibility extends to regular inspections, timely repairs, and proper warning signs. In Watertown NY, failing to clear snow or ice, ignoring spills, or neglecting adequate lighting can contribute to legal negligence. At the same time, the article explains that property owners who actively maintain their premises and provide clear warnings are less likely to face liability under New York law.

For individuals pursuing injury claims, understanding the distinction between slip-and-fall incidents and premises liability is essential. The article advises that documenting the scene, taking photographs, and seeking prompt medical attention can help support a claim. These steps are important in establishing whether legal negligence played a role and whether the property owner’s responsibility can be demonstrated.

The article also explains that not all accidents meet the legal threshold for premises liability. A slip and fall caused by an unexpected personal item or hazard that could not have been anticipated may not result in a valid claim. This reinforces the importance of evaluating each case based on the facts and the standards set by New York law.

By clarifying these distinctions, the HelloNation article provides readers in Watertown NY with practical guidance on how slip and fall incidents are evaluated within the broader concept of premises liability. Understanding how legal negligence and property owner responsibility are applied can help individuals better navigate injury claims and make informed decisions after an accident.

Slip and Fall vs. Premises Liability in Watertown, NY features insights from Joe Stanley, an attorney in Watertown, New York, on HelloNation.

About HelloNation
HelloNation is a premier media platform that connects readers with trusted professionals and businesses across various industries. Through its innovative “edvertising” approach that blends educational content with storytelling, HelloNation delivers expert-driven, good-news articles that inform, inspire, and empower. Covering topics from home improvement and health to business strategy and lifestyle, HelloNation highlights leaders making a meaningful impact in their communities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/slip-and-fall-vs-premises-liability-explained-by-hellonation-featuring-personal-injury-attorney-joe-stanley-302749443.html

SOURCE HelloNation