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LendingClub Reports Third Quarter 2024 Results

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2 years ago

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Originations and Revenue Growth Supported by Return of Bank Buyers

Total Assets Grew 25% Year to Date Driven by $1.3 Billion Purchase of LendingClub Loans

Acquired Tally’s Technology in October to Accelerate Product Roadmap

SAN FRANCISCO, Oct. 23, 2024 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the third quarter ended September 30, 2024.

“We had a standout quarter, with credit outperformance and the return of bank buyers driving improved loan sales pricing, our capital strategy delivering a 25% larger balance sheet year to date, and strong financial performance translating to a meaningful improvement in book value per common share over the past 12 months,” said Scott Sanborn, LendingClub CEO. “Looking ahead, our acquisition of Tally’s award-winning credit card debt monitoring and management technology will allow us to accelerate our product roadmap and further seize on the historically large $1.3 trillion credit card refinance opportunity.”

Third Quarter 2024 Results

Balance Sheet:

Total assets of $11.0 billion compared to $9.6 billion in the prior quarter, primarily due to growth in whole loans held on the balance sheet and securities related to the structured certificates program:Whole loans held on the balance sheet of $6.0 billion, compared to $5.1 billion in the prior quarter, primarily reflecting the purchase of a $1.3 billion LendingClub-issued loan portfolio.Securities available for sale of $3.3 billion, compared to $2.8 billion in the prior quarter, primarily reflecting growth in structured certificate securities.Deposits of $9.5 billion compared to $8.1 billion in the prior quarter, primarily due to an increase in consumer deposits and brokered certificates of deposit to fund the loan portfolio purchase.Launched new direct-to-consumer LevelUp Savings product and seeing positive consumer response.88% of total deposits are FDIC-insured.Strong liquidity profile with $3.6 billion in readily available liquidity.Strong capital position with a consolidated Tier 1 leverage ratio of 11.3% and consolidated Common Equity Tier 1 capital ratio of 15.9%.Book value per common share increased to $11.95, compared to $11.52 in the prior quarter.Tangible book value per common share increased to $11.19, compared to $10.75 in the prior quarter.

Financial Performance:

Loan originations grew to $1.9 billion, compared to $1.8 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 increased to $201.9 million, compared to $187.2 million in the prior quarter, driven by higher net interest income from a larger balance sheet and improved marketplace loan sales pricing.Provision for credit losses of $47.5 million, compared to $35.6 million in the prior quarter, driven by higher held-for-investment whole loan retention during the quarter.Decline in net charge-offs in the held-for-investment at amortized cost loan portfolio to $55.8 million, down from $66.8 million in the prior quarter; net charge-off ratio of 5.4% compared to 6.2% in the prior quarter.Net income was $14.5 million, compared to $14.9 million in the prior quarter, with diluted EPS of $0.13 in both periods.Pre-Provision Net Revenue (PPNR) increased to $65.5 million, compared to $55.0 million in the prior quarter, driven by a $14.7 million increase in total net revenue partially offset by a $4.0 million increase in non-interest expense.

Three Months Ended

($ in millions, except per share amounts)

September 30,
2024

June 30,
2024

September 30,
2023

Total net revenue

$              201.9

$              187.2

$              200.8

Non-interest expense

136.3

132.3

128.0

Pre-provision net revenue (1)

65.5

55.0

72.8

Provision for credit losses

47.5

35.6

64.5

Income before income tax expense

18.0

19.4

8.3

Income tax expense

(3.6)

(4.5)

(3.3)

Net income

$                14.5

$                14.9

$                  5.0

Diluted EPS

$                0.13

$                0.13

$                0.05

(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

Fourth Quarter 2024

Loan originations

$1.8B to $1.9B

Pre-provision net revenue (PPNR)

$60M to $70M

 

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 5 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.

Conference Call and Webcast Information

The LendingClub third quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, October 23, 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 834946, 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 October 30, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 106763. 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 13 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

September 30,
2024

June 30,
2024

March 31,

2024

December 31,

2023

September 30,
2023

Q/Q

Y/Y

Operating Highlights:

Non-interest income

$         61,640

$    58,713

$    57,800

$         54,129

$         63,844

5 %

(3) %

Net interest income

140,241

128,528

122,888

131,477

137,005

9 %

2 %

Total net revenue

201,881

187,241

180,688

185,606

200,849

8 %

1 %

Non-interest expense

136,332

132,258

132,233

130,015

128,035

3 %

6 %

Pre-provision net revenue(1)

65,549

54,983

48,455

55,591

72,814

19 %

(10) %

Provision for credit losses

47,541

35,561

31,927

41,907

64,479

34 %

(26) %

Income before income tax expense

18,008

19,422

16,528

13,684

8,335

(7) %

116 %

Income tax expense

(3,551)

(4,519)

(4,278)

(3,529)

(3,327)

(21) %

7 %

Net income

$         14,457

$    14,903

$    12,250

$         10,155

$           5,008

(3) %

189 %

Basic EPS

$             0.13

$        0.13

$        0.11

$             0.09

$             0.05

— %

160 %

Diluted EPS

$             0.13

$        0.13

$        0.11

$             0.09

$             0.05

— %

160 %

LendingClub Corporation Performance Metrics:

Net interest margin

5.63 %

5.75 %

5.75 %

6.40 %

6.91 %

Efficiency ratio(2)

67.5 %

70.6 %

73.2 %

70.0 %

63.7 %

Return on average equity (ROE)(3)

4.4 %

4.7 %

3.9 %

3.3 %

1.7 %

Return on average total assets (ROA)(4)

0.6 %

0.6 %

0.5 %

0.5 %

0.2 %

Marketing expense as a % of loan originations

1.37 %

1.47 %

1.47 %

1.44 %

1.30 %

LendingClub Corporation Capital Metrics:

Common equity Tier 1 capital ratio

15.9 %

17.9 %

17.6 %

17.9 %

16.9 %

Tier 1 leverage ratio

11.3 %

12.1 %

12.5 %

12.9 %

13.2 %

Book value per common share

$           11.95

$      11.52

$      11.40

$           11.34

$           11.02

4 %

8 %

Tangible book value per common share(1)

$           11.19

$      10.75

$      10.61

$           10.54

$           10.21

4 %

10 %

Loan Originations (in millions)(5):

Total loan originations

$           1,913

$      1,813

$      1,646

$           1,630

$           1,508

6 %

27 %

Marketplace loans

$           1,403

$      1,477

$      1,361

$           1,432

$           1,182

(5) %

19 %

Loan originations held for investment

$              510

$         336

$         285

$              198

$              326

52 %

56 %

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

27 %

19 %

17 %

12 %

22 %

Servicing Portfolio AUM (in millions)(6):

Total servicing portfolio

$          12,674

$     12,999

$     13,437

$          14,122

$          14,818

(3) %

(14) %

Loans serviced for others

$            7,028

$       8,337

$       8,671

$            9,336

$            9,601

(16) %

(27) %

(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

September 30,
2024

June 30,
2024

March 31,

2024

December 31,

2023

September 30,
2023

Q/Q

Y/Y

Balance Sheet Data:

Securities available for sale

$       3,311,418

$    2,814,383

$    2,228,500

$        1,620,262

$           795,669

18 %

316 %

Loans held for sale at fair value

$          849,967

$       791,059

$       550,415

$           407,773

$           362,789

7 %

134 %

Loans and leases held for investment at amortized cost

$       4,108,329

$    4,228,391

$    4,505,816

$        4,850,302

$        5,237,277

(3) %

(22) %

Gross allowance for loan and lease losses (1)

$        (274,538)

$     (285,368)

$     (311,794)

$         (355,773)

$         (388,156)

(4) %

(29) %

Recovery asset value (2)

$            53,974

$         56,459

$         52,644

$             45,386

$             37,661

(4) %

43 %

Allowance for loan and lease losses

$        (220,564)

$     (228,909)

$     (259,150)

$         (310,387)

$         (350,495)

(4) %

(37) %

Loans and leases held for investment at amortized cost, net

$       3,887,765

$    3,999,482

$    4,246,666

$        4,539,915

$        4,886,782

(3) %

(20) %

Loans held for investment at fair value (3)(4)

$       1,287,495

$       339,222

$       427,396

$           272,678

$           344,417

280 %

274 %

Total loans and leases held for investment (3)(4)

$       5,175,260

$    4,338,704

$    4,674,062

$        4,812,593

$        5,231,199

19 %

(1) %

Whole loans held on balance sheet (4)(5)

$       6,025,227

$    5,129,763

$    5,224,477

$        5,220,366

$        5,593,988

17 %

8 %

Total assets

$     11,037,507

$    9,586,050

$    9,244,828

$        8,827,463

$        8,472,351

15 %

30 %

Total deposits

$       9,459,608

$    8,095,328

$    7,521,655

$        7,333,486

$        7,000,263

17 %

35 %

Total liabilities

$       9,694,612

$    8,298,105

$    7,978,542

$        7,575,641

$        7,264,132

17 %

33 %

Total equity

$       1,342,895

$    1,287,945

$    1,266,286

$        1,251,822

$        1,208,219

4 %

11 %

(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)

The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.

(5)

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

September 30,
2024

June 30,
2024

March 31,
2024

December 31,
2023

September 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 %

5.4 %

5.8 %

6.4 %

6.7 %

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

3.1 %

2.7 %

1.9 %

1.8 %

2.0 %

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

5.8 %

5.9 %

6.4 %

7.2 %

7.4 %

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

7.3 %

7.5 %

7.8 %

8.3 %

8.2 %

Net charge-offs

$          55,805

$          66,818

$          80,483

$          82,511

$          68,795

Net charge-off ratio (2)

5.4 %

6.2 %

6.9 %

6.6 %

5.1 %

(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:

September 30,
2024

December 31,
2023

Unsecured personal

$       3,068,078

$       3,726,830

Residential mortgages

175,345

183,050

Secured consumer

239,206

250,039

Total consumer loans held for investment

3,482,629

4,159,919

Equipment finance (1)

74,674

110,992

Commercial real estate

371,796

380,322

Commercial and industrial

179,230

199,069

Total commercial loans and leases held for investment

625,700

690,383

Total loans and leases held for investment at amortized cost

4,108,329

4,850,302

Allowance for loan and lease losses

(220,564)

(310,387)

Loans and leases held for investment at amortized cost, net

$       3,887,765

$       4,539,915

Loans held for investment at fair value (2)(3)

1,287,495

272,678

Total loans and leases held for investment (3)

$       5,175,260

$       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.

(3)

The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.

 

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:

September 30, 2024

December 31, 2023

Gross allowance for loan and lease losses (1)

$                 274,538

$                 355,773

Recovery asset value (2)

(53,974)

(45,386)

Allowance for loan and lease losses

$                 220,564

$                 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

September 30, 2024

June 30, 2024

Consumer

Commercial

Total

Consumer

Commercial

Total

Allowance for loan and lease losses, beginning of period

$    210,729

$        18,180

$ 228,909

$    246,280

$        12,870

$ 259,150

Credit loss expense for loans and leases held for investment

45,813

1,647

47,460

30,760

5,817

36,577

Charge-offs

(68,388)

(721)

(69,109)

(77,494)

(594)

(78,088)

Recoveries

12,745

559

13,304

11,183

87

11,270

Allowance for loan and lease losses, end of period

$    200,899

$        19,665

$ 220,564

$    210,729

$        18,180

$ 228,909

Three Months Ended

September 30, 2023

Consumer

Commercial

Total

Allowance for loan and lease losses, beginning of period

$    341,161

$        14,002

$ 355,163

Credit loss expense for loans and leases held for investment

63,733

394

64,127

Charge-offs

(73,644)

(534)

(74,178)

Recoveries

5,038

345

5,383

Allowance for loan and lease losses, end of period

$    336,288

$        14,207

$ 350,495

 

 

 

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:

September 30, 2024

30-59
Days

60-89
Days

90 or More
Days

Total Days
Past Due

Guaranteed
Amount (1)

Unsecured personal

$      25,749

$      20,156

$      22,352

$             68,257

$                     —

Residential mortgages

—

145

167

312

—

Secured consumer

2,283

675

242

3,200

—

Total consumer loans held for investment

$      28,032

$      20,976

$      22,761

$             71,769

$                     —

Equipment finance

$              —

$              —

$         4,850

$               4,850

$                     —

Commercial real estate

3,882

678

6,106

10,666

8,681

Commercial and industrial

417

8,207

7,232

15,856

12,347

Total commercial loans and leases held for investment

$         4,299

$         8,885

$      18,188

$             31,372

$             21,028

Total loans and leases held for investment at amortized cost

$      32,331

$      29,861

$      40,949

$           103,141

$             21,028

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 (%)

September 30,
2024

June 30,
2024

September 30,
2023

Q3 2024

vs

Q2 2024

Q3 2024

vs

Q3 2023

Non-interest income:

Origination fees

$          71,465

$        77,131

$          60,912

(7) %

17 %

Servicing fees

8,081

19,869

32,768

(59) %

(75) %

Gain on sales of loans

12,433

10,748

8,572

16 %

45 %

Net fair value adjustments

(33,595)

(51,395)

(41,366)

(35) %

(19) %

Marketplace revenue

58,384

56,353

60,886

4 %

(4) %

Other non-interest income

3,256

2,360

2,958

38 %

10 %

Total non-interest income

61,640

58,713

63,844

5 %

(3) %

Total interest income

240,377

219,634

207,412

9 %

16 %

Total interest expense

100,136

91,106

70,407

10 %

42 %

Net interest income

140,241

128,528

137,005

9 %

2 %

Total net revenue

201,881

187,241

200,849

8 %

1 %

Provision for credit losses

47,541

35,561

64,479

34 %

(26) %

Non-interest expense:

Compensation and benefits

57,408

56,540

58,497

2 %

(2) %

Marketing

26,186

26,665

19,555

(2) %

34 %

Equipment and software

12,789

12,360

12,631

3 %

1 %

Depreciation and amortization

13,341

13,072

11,250

2 %

19 %

Professional services

8,014

7,804

8,414

3 %

(5) %

Occupancy

4,005

3,941

4,612

2 %

(13) %

Other non-interest expense

14,589

11,876

13,076

23 %

12 %

Total non-interest expense

136,332

132,258

128,035

3 %

6 %

Income before income tax expense

18,008

19,422

8,335

(7) %

116 %

Income tax expense

(3,551)

(4,519)

(3,327)

(21) %

7 %

Net income

$          14,457

$        14,903

$            5,008

(3) %

189 %

Net income per share: 

Basic EPS

$              0.13

$           0.13

$              0.05

— %

160 %

Diluted EPS

$              0.13

$           0.13

$              0.05

— %

160 %

Weighted-average common shares – Basic

112,042,202

111,395,025

109,071,180

1 %

3 %

Weighted-average common shares – Diluted

113,922,256

111,466,497

109,073,194

2 %

4 %

 

LENDINGCLUB CORPORATION

NET INTEREST INCOME

(In thousands, except percentages or as noted)

(Unaudited)

Consolidated LendingClub Corporation (1)

Three Months Ended

September 30, 2024

Three Months Ended

June 30, 2024

Three Months Ended

September 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

$     939,611

$  12,442

5.30 %

$    976,330

$  13,168

5.40 %

$ 1,249,087

$  16,798

5.38 %

Securities available for sale at fair value

3,047,305

52,476

6.89 %

2,406,767

42,879

7.13 %

601,512

9,467

6.30 %

Loans held for sale at fair value

899,434

30,326

13.49 %

838,143

26,721

12.75 %

286,111

9,582

13.40 %

Loans and leases held for investment:

Unsecured personal loans

3,045,150

103,291

13.57 %

3,243,161

108,425

13.37 %

4,257,360

142,118

13.35 %

Commercial and other consumer loans

1,057,688

15,497

5.86 %

1,097,846

16,394

5.97 %

1,147,130

16,842

5.87 %

Loans and leases held for investment at amortized cost

4,102,838

118,788

11.58 %

4,341,007

124,819

11.50 %

5,404,490

158,960

11.76 %

Loans held for investment at fair value (3)(4)

972,698

26,345

10.83 %

383,872

12,047

12.55 %

385,148

12,605

13.09 %

Total loans and leases held for investment (3)(4)

5,075,536

145,133

11.44 %

4,724,879

136,866

11.59 %

5,789,638

171,565

11.85 %

Total interest-earning assets

9,961,886

240,377

9.65 %

8,946,119

219,634

9.82 %

7,926,348

207,412

10.47 %

Cash and due from banks and restricted cash

41,147

55,906

69,442

Allowance for loan and lease losses

(225,968)

(245,478)

(354,263)

Other non-interest earning assets

624,198

632,253

691,641

Total assets

$  10,401,263

$ 9,388,800

$ 8,333,168

Interest-bearing liabilities

Interest-bearing deposits:

Checking and money market accounts

$  1,092,376

$  10,146

3.70 %

$ 1,097,696

$  10,084

3.69 %

$ 1,271,720

$    9,541

2.98 %

Savings accounts and certificates of deposit

6,944,586

86,717

4.97 %

6,449,061

80,109

5.00 %

5,357,717

59,968

4.44 %

Interest-bearing deposits

8,036,962

96,863

4.79 %

7,546,757

90,193

4.81 %

6,629,437

69,509

4.16 %

Other interest-bearing liabilities (3)

486,736

3,273

2.69 %

56,628

913

6.45 %

35,878

898

10.03 %

Total interest-bearing liabilities

8,523,698

100,136

4.67 %

7,603,385

91,106

4.82 %

6,665,315

70,407

4.19 %

Non-interest bearing deposits

344,577

303,199

183,728

Other liabilities

225,467

215,608

271,118

Total liabilities

$  9,093,742

$ 8,122,192

$ 7,120,161

Total equity

$  1,307,521

$ 1,266,608

$ 1,213,007

Total liabilities and equity

$  10,401,263

$ 9,388,800

$ 8,333,168

Interest rate spread

4.98 %

5.00 %

6.28 %

Net interest income and net interest margin

$  140,241

5.63 %

$ 128,528

5.75 %

$ 137,005

6.91 %

(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.

(4)

The average balance for the third quarter of 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the quarter.

 

LENDINGCLUB CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

September 30,
2024

December 31,
2023

Assets

Cash and due from banks

$            25,558

$         14,993

Interest-bearing deposits in banks

991,372

1,237,511

Total cash and cash equivalents

1,016,930

1,252,504

Restricted cash

33,347

41,644

Securities available for sale at fair value ($3,319,988 and $1,663,990 at amortized cost, respectively)

3,311,418

1,620,262

Loans held for sale at fair value

849,967

407,773

Loans and leases held for investment

4,108,329

4,850,302

Allowance for loan and lease losses

(220,564)

(310,387)

Loans and leases held for investment, net

3,887,765

4,539,915

Loans held for investment at fair value (1)(2)

1,287,495

272,678

Property, equipment and software, net

167,809

161,517

Goodwill

75,717

75,717

Other assets

407,059

455,453

Total assets

$      11,037,507

$     8,827,463

Liabilities and Equity

Deposits:

Interest-bearing

$        9,099,092

$     7,001,680

Noninterest-bearing

360,516

331,806

Total deposits

9,459,608

7,333,486

Borrowings (1)

2,683

19,354

Other liabilities

232,321

222,801

Total liabilities

9,694,612

7,575,641

Equity

Common stock, $0.01 par value; 180,000,000 shares authorized; 112,401,990 and 110,410,602 shares issued and outstanding, respectively

1,124

1,104

Additional paid-in capital

1,692,538

1,669,828

Accumulated deficit

(347,196)

(388,806)

Accumulated other comprehensive loss

(3,571)

(30,304)

Total equity

1,342,895

1,251,822

Total liabilities and equity

$      11,037,507

$     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.

(2)

The balance at September 30, 2024 includes a $1.3 billion loan outstanding principal portfolio that was acquired during the third quarter of 2024.

 

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

September 30,
2024

June 30,

2024

March 31,

2024

December 31,

2023

September 30,
2023

GAAP Net income

$                14,457

$                14,903

$                12,250

$                10,155

$                  5,008

Less: Provision for credit losses

(47,541)

(35,561)

(31,927)

(41,907)

(64,479)

Less: Income tax expense

(3,551)

(4,519)

(4,278)

(3,529)

(3,327)

Pre-provision net revenue

$                65,549

$                54,983

$                48,455

$                55,591

$                72,814

For the three months ended

September 30,
2024

June 30,

2024

March 31,

2024

December 31,

2023

September 30,
2023

Non-interest income

$                61,640

$                58,713

$                57,800

$                54,129

$                63,844

Net interest income

140,241

128,528

122,888

131,477

137,005

Total net revenue

201,881

187,241

180,688

185,606

200,849

Non-interest expense

(136,332)

(132,258)

(132,233)

(130,015)

(128,035)

Pre-provision net revenue

65,549

54,983

48,455

55,591

72,814

Provision for credit losses

(47,541)

(35,561)

(31,927)

(41,907)

(64,479)

Income before income tax expense

18,008

19,422

16,528

13,684

8,335

Income tax expense

(3,551)

(4,519)

(4,278)

(3,529)

(3,327)

GAAP Net income

$                14,457

$                14,903

$                12,250

$                10,155

$                  5,008

Tangible Book Value Per Common Share

September 30,
2024

June 30,

2024

March 31,

2024

December 31,

2023

September 30,
2023

GAAP common equity

$         1,342,895

$          1,287,945

$          1,266,286

$          1,251,822

$          1,208,219

Less: Goodwill

(75,717)

(75,717)

(75,717)

(75,717)

(75,717)

Less: Intangible assets

(9,439)

(10,293)

(11,165)

(12,135)

(13,151)

Tangible common equity

$         1,257,739

$          1,201,935

$          1,179,404

$          1,163,970

$          1,119,351

Book value per common share

GAAP common equity

$         1,342,895

$          1,287,945

$          1,266,286

$          1,251,822

$          1,208,219

Common shares issued and outstanding

112,401,990

111,812,215

111,120,415

110,410,602

109,648,769

Book value per common share

$                11.95

$                 11.52

$                 11.40

$                 11.34

$                 11.02

Tangible book value per common share

Tangible common equity

$         1,257,739

$          1,201,935

$          1,179,404

$          1,163,970

$          1,119,351

Common shares issued and outstanding

112,401,990

111,812,215

111,120,415

110,410,602

109,648,769

Tangible book value per common share

$                11.19

$                 10.75

$                 10.61

$                 10.54

$                 10.21

 

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SOURCE LendingClub Corporation

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Great Place To Work names Invisors on the 2026 Best Workplaces for Women List, Ranking no.65

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31 minutes ago

on

July 24, 2026

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Invisors named a UK’s Best Workplaces for Women™!

GLASGOW, Scotland, July 24, 2026 /PRNewswire/ — Invisors, a Workday Services Partner has officially been recognized as one of UK’s Best Workplaces for Women 2026™, in 65th place out of the 350 ranked organisations.

Invisors’ values and culture are among the reasons women at our organisation say it is a great place to work. Discover how the team brings this philosophy to life at invisors.com/company-overview.

The 2026 UK’s Best Workplaces for Women list is made up of employers whose people have told Great Place To Work® UK they work for a place that is inclusive and equitable for all. The 350 companies on the list are committed to ensuring a reasonable balance of women and men across the organisation; removing barriers to women’s career advancement; and creating workplaces where all employees, regardless of gender, can flourish.

“I’m incredibly proud to see Invisors recognized as a Top Place for Women to Work. This award reflects the culture we’ve built together—one that values inclusivity, flexibility and empowerment. It’s a place where people are supported to bring their whole selves to work, grow their careers and strive for excellence every day.” Jennifer Donnelly-Corbett, EMEA Manager, HCM and Absence at Invisors.

Benedict Gautrey, Managing Director of Great Place To Work UK says:

“This year’s UK’s Best Workplaces for Women list celebrates businesses making a genuine difference day to day, not just in what they say, but in how people experience work. What matters most is that this recognition comes directly from women working in these organisations, who tell us they feel supported, valued, and able to grow.

Our research demonstrates that these organisations creating high-trust environments deliver stronger results, whether in financial outcomes, impact, or service delivery, alongside greater agility and resilience in the face of change.

Congratulations to Invisors for creating an environment where inclusion is clearly felt in practice.” 

Matt Smith, Managing Director, Global HR Operations, Invisors “Being named as one of the UK’s Best Workplaces for Women list is an achievement because it reflects what our people actually experience, not just what we aspire to. We’ve worked to build an environment where career growth and success aren’t something women have to fight for — it’s built into how we operate. This recognition is a great step in the journey, not the finish line, and we’re committed to keeping that bar high as Invisors grows within the UK.”

About Invisors

As a certified Workday Services Partner, Invisors helps clients leverage their organisational data to make better-informed business decisions through the deployment of Workday. Invisors’ success is measured by their clients’ ability to achieve their big-picture vision. From initial deployments to ongoing projects, Invisors is dedicated to elevating perspectives and transforming results. To learn more, visit invisors.com. 

About Great Place To Work®

Great Place To Work® is the global authority on workplace culture, helping organisations to create exceptional, high-performing workplaces where employees feel trusted and valued. The UK’s Best Workplaces for Women™ enables these outstanding organisations to celebrate their achievements, build their employer brand, and inspire others to take action. For more information, visit www.greatplacetowork.co.uk.

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SOURCE Invisors

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Auction Direct USA in Raleigh, NC, Makes It Easy to Shop for Used Vehicles Online

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July 24, 2026

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RALEIGH, N.C., July 24, 2026 /PRNewswire/ — Auction Direct USA in Raleigh, NC, helps shoppers browse used-vehicle inventory, compare options, and complete key steps of the buying process online for a faster, more convenient shopping experience.

Auction Direct USA in Raleigh, NC, is simplifying the used vehicle shopping experience by offering convenient online tools that help drivers browse inventory, compare options, and begin the purchasing process from the comfort of home.

With a user-friendly website, shoppers can explore an extensive selection of used cars, trucks, and SUVs that fit a variety of budgets and lifestyles. Detailed vehicle listings provide important information, including photos, key features, specifications, pricing, and availability, allowing customers to make informed decisions before visiting the dealership.

The online platform also makes it easy to narrow vehicle choices using search filters for make, model, body style, price range, mileage, model year, and other preferences. These features help shoppers quickly find vehicles that meet their individual needs while saving valuable time.

In addition to browsing inventory, customers can use several digital shopping tools to streamline the buying process. Visitors can estimate monthly payments, value a trade-in, complete a finance application, and schedule a test drive online. These resources allow shoppers to prepare for their dealership visit with greater confidence and convenience.

Auction Direct USA in Raleigh, NC, regularly updates its online inventory, giving customers access to fresh vehicle selections as they become available. Whether someone is searching for a dependable commuter car, a family-friendly SUV, or a capable pickup truck, the website provides an efficient way to explore available options before stepping into the showroom.

The dealership remains committed to delivering a straightforward, customer-focused buying experience by combining a wide range of high-quality used vehicles with digital tools that simplify every stage of the shopping journey.

Drivers looking to begin their search can visit Auction Direct USA in Raleigh, NC, or browse the current inventory online to compare vehicles and take advantage of convenient shopping resources before visiting the dealership in person.

About Auction Direct USA in Raleigh, NC

Auction Direct USA in Raleigh, NC, offers a diverse inventory of quality used cars, trucks, and SUVs to meet a wide range of driving needs and budgets. By combining a customer-focused approach with convenient online shopping tools, the dealership helps make finding and purchasing a used vehicle simple, efficient, and enjoyable.

Media Contact: Tony Kicinski, 844-678-8048, tonyk@auctiondirectusa.com

 

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SOURCE Auction Direct USA

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FLAGSTAR BANK, N.A. ANNOUNCES $250 MILLION SHARE REPURCHASE PROGRAM

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July 24, 2026

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Board of Directors Authorizes Repurchase of Up to $250 Million of Outstanding Common Stock, Reflecting the Bank’s Strong Capital Position and Commitment to Long-Term Shareholder Value

HICKSVILLE, N.Y., July 24, 2026 /PRNewswire/ — Flagstar Bank, N.A. (NYSE: FLG) (the “Bank”) today announced that its Board of Directors has authorized a common stock repurchase program under which the Bank may repurchase up to $250 million of its outstanding common stock over the next 12-month period.

Commenting on the repurchase program, Joseph M. Otting, Executive Chairman and Chief Executive Officer stated, “We are pleased to announce our stock buyback program, which reflects the meaningful progress we have made in executing our strategic plan, the strength of the balance sheet, and Flagstar’s long-term growth prospects. We have consistently maintained capital levels well above regulatory requirements, and we believe that returning capital to our shareholders through a share repurchase program represents a compelling and disciplined use of our excess capital at this time.

“We remain deeply committed to serving our customers and communities and we are confident that this program — alongside our continued investment in our people, products, systems, and technology — will deliver sustainable, long-term value for our shareholders.”

Repurchases may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of any share repurchases will be subject to a variety of factors, including the availability of stock for repurchases, the Bank’s capital position and financial performance, regulatory considerations, and general market conditions. The share repurchase program does not obligate the Bank to acquire any specific number of shares and may be modified, suspended, or discontinued at any time without prior notice. Any future stock repurchase programs would be subject to the approval of the Board of Directors and other various factors, including the Bank’s liquidity, capital position and financial performance, accounting and regulatory considerations, and general market conditions.

Flagstar Bank, N.A.

Flagstar Bank, N.A. is one of the largest regional banks in the country and is headquartered in Hicksville, New York. At June 30, 2026, the Bank had $87.7 billion of assets, $61.2 billion of loans, deposits of $67.5 billion, and total stockholders’ equity of $8.1 billion. Flagstar Bank, N.A. operates approximately 340 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast.

Cautionary Statements Regarding Forward-Looking Language

This press release may include forward‐looking statements by us and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding, among other things: (a) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matters; (b) the future costs and benefits of the actions we may take; (c) our assessments of credit risk and probable losses on loans and associated allowances and reserves; (d) our assessments of interest rate and other market risks; (e) our ability to achieve profitability goals within projected timeframes and to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; (f) our ability to execute our capital management strategies, including our ability to complete our current stock repurchase program and to implement future stock repurchase programs; (g) our ability to attract, incentivize, and retain key personnel and the roles of key personnel; (h) our ability to achieve our financial and other strategic goals, including those related to our recent holding company reorganization, which was completed in October 2025 (the “Reorganization”), our merger with Flagstar Bancorp, Inc., which was completed in December 2022, our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023, and our ability to comply with the heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; (i) the impact of the $1.05 billion capital raise we completed in March 2024; (j) the conversion or exchange of shares of our preferred stock; (k) the payment of dividends on shares of our capital stock, including adjustments to the amount of dividends payable on shares of our preferred stock; (l) the dilution of existing equity holders associated with future equity awards and stock issuances; (m) the effects of the reverse stock split we effected in July 2024; and (n) the impact of the 2024 sale of our mortgage servicing operations, third party mortgage loan origination business, and mortgage warehouse business.

Forward‐looking statements are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “should,” “confident,” and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward‐looking statements speak only as of the date they are made; we do not assume any duty, and do not undertake, to update our forward‐looking statements. Furthermore, because forward‐looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future performance could differ materially from our historical results.

Our forward‐looking statements are subject to, among others, the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios, including associated allowances and reserves; changes in future allowance for credit losses, including changes required under relevant accounting and regulatory requirements; the ability to pay future dividends; the ability to implement future stock repurchase programs, which are subject to the approval of the Board of Directors and other various factors, including the Bank’s liquidity, capital position, and financial performance, accounting and regulatory considerations, as well as general market conditions; changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; our ability to achieve the anticipated benefits of the Reorganization; changes in our Board of Directors and our executive management team; changes in our strategic plan, including changes in our internal resources, procedures and systems, and our ability to successfully implement such plan; changes in competitive pressures among financial institutions or from non‐financial institutions; changes in legislation, regulations, and policies; changes relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; the impact of changing political conditions or federal government shutdowns; the imposition of restrictions on our operations by bank regulators; the outcome of pending or threatened litigation, or of investigations or any other matters before regulatory agencies, whether currently existing or commencing in the future; our ability to comply with heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; the restructuring of our mortgage business; our ability to achieve anticipated cost savings and enhanced efficiencies with respect to our balance sheet and expense reduction strategies; the impact of failures or disruptions in or breaches of our operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the impact of natural disasters, extreme weather events, civil unrest, international military conflict, terrorism or other geopolitical events; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control. Our forward-looking statements are also subject to the following principal risks and uncertainties with respect to our merger with Flagstar Bancorp, which was completed in December 2022, and our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023: the possibility that the anticipated benefits of the transactions will not be realized when expected or at all; the possibility of increased legal and compliance costs, including with respect to any litigation or regulatory actions related to the business practices of acquired companies or the combined business; diversion of management’s attention from ongoing business operations and opportunities; the possibility that we may be unable to achieve expected synergies and operating efficiencies in or as a result of the transactions within the expected timeframes or at all; and revenues following the transactions may be lower than expected.

More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10‐K for the year ended December 31, 2025, and in other reports we file with the Office of the Comptroller of the Currency (the “OCC”) and voluntarily file with the Securities and Exchange Commission (the “SEC”), and which are also available on our Investor Relations website. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our securities disclosure filings. All such files are accessible on our website at ir.flagstar.com, on the OCC’s website at www.occ.gov, and on the SEC’s website at www.sec.gov.

Investor Contact:
Salvatore J. DiMartino
(516) 683-4286

Media Contact:
Jessica Torchia
(248) 312-6451

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SOURCE Flagstar Bank, N.A.

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