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LendingClub Reports Second Quarter 2024 Results

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2 years ago

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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 %

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 %

0.5 %

0.2 %

0.5 %

Marketing expense as a % of loan originations

1.47 %

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 %

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) %

(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

87

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

vs

Q1 2024

Q2 2024

vs

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

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)

(75,717)

(75,717)

(75,717)

(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

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-second-quarter-2024-results-302210183.html

SOURCE LendingClub Corporation

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Alethios Unveils a Comprehensive Decentralized Data Collection Suite for Human Health Research

Published

6 minutes ago

on

October 22, 2026

By

Live, no-code integrations let researchers combine participant-reported outcomes, wearables and sensors, AI-powered digital biomarkers, and at-home lab tests in a single study at a fraction of the cost of traditional research.

SAN FRANCISCO, Oct. 22, 2026 /PRNewswire/ — Alethios, the software platform delivering research infrastructure for human health, today launched a comprehensive suite of decentralized data collection tools. Researchers can now combine participant-reported outcomes, wearable and sensor data, digital biomarkers, and at-home biomarker testing in a single study, without writing code, managing multiple vendors, or requiring clinic visits.

Alethios powers studies across nutraceuticals, functional foods, academia, consumer health, medical devices, biotech, and the life sciences. Study designs range from consumer perception studies to pivotal, randomized, double-blind, placebo-controlled trials all run on the same software platform. Customers  including Givaudan, Thorne, PLT Health Solutions, Applied Food Sciences, Hofseth BioCare, Helaina, Samphire Neuroscience, and Sonoran University use the platform to generate rigorous evidence from participants’ homes. The new integrations build on the company’s founding belief that rigorous, multimodal research should be within reach for teams of every size and budget, across the human health ecosystem.

The suite spans four layers of data, each available as a no-code integration within the Alethios Study Planner and Study Operator:

Reported data: participant-submitted photo, video, audio, and text, plus a library of clinically validated instruments, both publicly available and licensed.Generated health data: personal wearables and health platforms including Apple Watch, Google Health, Garmin, Oura, Whoop, and Fitbit, and sensors including Abbott’s continuous glucose monitors and Withings and InBody bioimpedance scales.Digital biomarkers: validated cognitive batteries powered by BrainHQ, skin health selfies for dermatology and cosmetic studies powered by Haut.ai, and 3D body composition scans powered by Prism Labs.At-home biomarker testing: dried blood spot cards, Tasso blood collection devices, and at-home microbiome kits. Standard panels, including male and female hormones, cardiovascular, metabolic, inflammation, vitamin D, and hydration, run through Choose Health. Next-generation tests include epigenetic clocks from Muhdo and TruDiagnostic, and gut and vaginal microbiome sequencing from GutID and other shotgun metagenomic sequencing partners.

Adding a data type takes a few clicks. In the Study Planner, researchers select the data types their study needs and place each one on the participant schedule. For at-home kits, Alethios can handle ordering, shipping, and unique ID verification to keep every sample matched with the right participant, and results flow back into the platform. Once a study is live, the Study Operator brings every data stream into one real-time monitoring dashboard.

Compliant Data Collection by Default

Every integration runs on the platform’s existing infrastructure, where validation and data integrity assurances are built in and each one is designed to encourage participant adherence without compromising data quality. Researchers can:

Schedule each integration on the study timeline, so every data point is accurately time-stamped.Tie completion and compliance to milestone-based tracking and compensation, for example releasing a $50 gift card once a participant’s kit is accessioned at the lab.Monitor adherence across multiple data types in real-time from the Study Operator, so missed wearable syncs, late surveys, or unreturned kits are caught before they turn into missing data.

Every data point is cleaned and aligned to its participant automatically, so research teams receive one analysis-ready dataset rather than stitching together exports from multiple vendors.

“We built Alethios for researchers across human health,” said Zeenia Framroze, Founder and CEO of Alethios. “There are so many new ways to collect data at home, and we want to give research teams the best of them, wherever they sit. Whether someone is designing a claims substantiation study for a supplement or running post-marketing surveillance for a drug, we want to make it easy to collect robust subjective and objective data from Alethiad participants around the nation. The better and more accessible data collection is, the more we move the needle on our understanding of all of human health.”

A Home for Next-Generation Health Measurement

“So many novel devices and at-home tests are being developed today,” said Gurpreet Atwal, CTO of Alethios. “We want Alethios to be the tool scientists and innovators use to rapidly develop and validate new methods of data collection, and the home for the newest, best-in-class technologies for measuring human health. With rapid recruitment through the Alethiad Participant Community, those technologies can be tested with diverse, representative participants from day one.”

Companies developing novel devices, tests, or digital biomarkers can apply to integrate with Alethios here.

About Alethios

Alethios is a software platform delivering research infrastructure for human health. Its AI-powered, full-stack software delivers the capabilities of a study team without the overhead. The platform unifies protocol design, IRB coordination, recruitment, participant management, multimodal data collection, and reporting for decentralized clinical trials. Principal investigators, sponsors, and CROs rely on Alethios to generate rigorous real-world evidence across human health industries, setting up a study in minutes with plans starting at $100 per month. Through the Study Planner, Study Operator, and the Alethiad Participant Community, research teams can use the software in a self-service, hybrid, or fully turn-key model, at a fraction of the cost of traditional research.Alethios is a 2026 Nutra Healthspan Innovator Award winner, a 2026 Vitafoods Europe Startup Challenge finalist, and a 2025 NutraIngredients-USA Startup Award finalist. Get started at Alethios.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/alethios-unveils-a-comprehensive-decentralized-data-collection-suite-for-human-health-research-302916518.html

SOURCE Alethios, Inc.

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7 out of 10 Individuals Hit by Data Breaches Via Third Party, Kroll Finds

Published

6 minutes ago

on

October 22, 2026

By

Breaches at technology and insurance firms affected the most individuals
in Kroll cases, highlighting the wider damage a single incident can cause

NEW YORK, Oct. 22, 2026 /PRNewswire/ — Kroll, the leading independent provider of financial and risk advisory solutions, today revealed that two-thirds of organizations surveyed (69%) suffered a data breach in the past year. More than a third (34%) were breached more than once, according to its 2026 annual Data Breach Outlook.

Further analysis showed that financial services accounted for the largest share of organizations breached in Kroll’s cases, at 20%, but a single breach at a technology provider can expose data belonging to customers of hundreds of businesses that use its services.

Of the incidents handled by Kroll in the twelve months between June 2025 and June 2026, 69% of affected individuals were impacted by a third-party breach. 79% of those individuals were affected by a breach from the technology sector, which is significantly higher compared to the finance (9%), insurance (6%) or healthcare (5%) sectors.

Breaches at technology firms accounted for the largest number of affected individuals, followed by insurers, despite ranking seventh and ninth respectively for the total number of organizations breached.

Data and Trends from the Kroll Data Breach Outlook 2026

Repeated breaches are common. Of the 250 leaders surveyed by Kroll, 69% said their organization had suffered a breach in the previous 12 months, while 34% reported experiencing more than one.IT teams are far more concerned about third parties than senior leaders. More than half (54%) of IT and technology leaders identified vendor and third-party breaches as their biggest compliance risk, compared with 40% of C-suite executives and 30% of risk and compliance leaders.Third-party relationships complicate the response. Dependence on vendors was among the top four challenges leaders faced when making breach-response decisions, cited by 41% of respondents.A small number of breaches can have a wide impact. Technology ranked seventh for the number of organizations breached but first for the total number of individuals affected. Insurance ranked ninth for the number of organizations breached but second for the total number of individuals affected.

Denyl Green, Global Head of Breach Notification at Kroll says, “Kroll handles thousands of incidents every year. Across most of the major incidents we handled over the past year, a vendor, software supplier or service provider was the link between the initial breach and the organizations affected. One incident can reach businesses and individuals who have never dealt directly with the company where the compromise began.”

“As AI agents are given more access to systems and sensitive data, breach risk rises across both human on non-human identities. Data and identity governance are becoming even more complex, and we expect AI to feature more prominently in Kroll’s Data Breach Outlook next year, both as a tool used by attackers and as a source of exposure for businesses adopting it.”

“When a supplier is breached, every client needs to determine whose data was affected and whether customers and regulators need to be notified. The businesses that respond most effectively have already mapped their third-party relationships and the subsequent domino effect, with an agreed plan in place before an incident happens. That preparation can reduce both the complexity and the cost of managing a breach, as well as give greater peace of mind.”

Katherine Keefe, Global Cyber Insurance Industry Lead at Kroll says, “Kroll’s breach data shows a single supplier breach can trigger dozens or even hundreds of cyber insurance claims from businesses whose only connection is that they use the same provider. These scenarios exponentially increase potential cyber insurance losses compared to breaches affecting a single business.”

“Cyber underwriters are already responding, not only by more closely scrutinizing how businesses manage their suppliers, but also by identifying potential single points of failure which may be caused by vendors and suppliers serving wide swaths of industry. Cyber insurance claims teams managing aggregated losses are also impacted and require efficient incident response and breach notification best practices when multiple policyholders are affected by the same event.”

“Cyber insurers now know that identifying dependencies on common vendors is critical to assessing and minimizing the risk that one breach will impact many policyholders.”

Kroll’s Cyber and Data Resilience (CDR) practice guides organizations through cyber crises, from incident response and cyber risk strategy to process and software controls and managed security operations. Within CDR, the Data Breach team handles some of the largest and most complex notification programs in the world. Often serving as part of a broader cyber incident response, Kroll’s data breach notification services help organizations rapidly navigate multi-jurisdictional requirements, including call center and credit monitoring services, to meet regulatory obligations and protect their reputation. Learn more: https://www.kroll.com/en/services/cyber/breach-notification.

About the Data Breach Outlook 2026 report

The Data Breach Outlook 2026, launched in October 2026, draws on two sources: an analysis of data breach incidents handled by Kroll’s Cyber and Data Resilience practice between June 2025 and June 2026, and a companion survey of 250 risk and compliance leaders and C-suite executives and board members, conducted by Kroll in 2026, examining how organizations experience and respond to breach events, including the role of vendor and third-party relationships.

About Kroll

As the leading independent provider of financial and risk advisory solutions, Kroll leverages our unique insights, data and technology to help clients stay ahead of complex valuation demands. Kroll’s team of more than 6,500 professionals worldwide continues the firm’s nearly 100-year history of trusted expertise spanning risk, governance, transactions and valuation. Our advanced solutions and intelligence provide clients the foresight they need to create an enduring competitive advantage. At Kroll, our values define who we are and how we partner with clients and communities. Learn more at kroll.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/7-out-of-10-individuals-hit-by-data-breaches-via-third-party-kroll-finds-302916280.html

SOURCE Kroll Associates

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Innodisk Launches All-in-One GMSL2™ Camera Starter Kit to Accelerate Edge AI Vision Deployment

Published

6 minutes ago

on

October 22, 2026

By

TAIPEI, Oct. 22, 2026 /PRNewswire/ — Innodisk, a leading global AI solution provider, today announced the Innodisk GMSL2™ Camera Starter Kit, an all-in-one vision solution that bundles four 3MP GMSL2™ camera modules, a capture card, FAKRA cables, and other necessary accessories.

A milestone in Innodisk’s edge AI vision strategy, the kit lets customers set up a multi-camera system and begin validation right out of the box, shortening the path from proof of concept (PoC) to deployment. Full camera source code is included, giving customers flexibility throughout development and maintenance.

As AI vision moves toward multi-camera perception in robotics and intelligent vehicles, integrating cameras, capture cards, drivers, and host platforms has become increasingly complex, often taking six months or more before validation. The starter kit’s pre-integrated hardware and software driver enable system integrators to speed up time-to-market.

All-in-One Multi-Camera Integration for Faster Setup and Validation

GMSL2™ is a high-speed video transmission technology that originated in automotive applications and offers long-distance connectivity. Unlike plug-and-play USB cameras, it requires a dedicated capture card and platform-specific drivers. The starter kit includes four 3MP fixed-focus GMSL2™ camera modules, a capture card, four FAKRA cables, a power adapter, power cords, and a quick start guide. It also provides camera source code for the widely adopted NVIDIA Jetson Orin Nano Super Developer Kit, so users can bypass component sourcing, system-level integration, driver debugging, and tuning.

“The biggest challenge in a multi-camera AI vision project is often not the AI application itself, but the camera integration and system tuning that come before it,” said CK Hsu, Senior Manager of the Camera Product Business Department at Innodisk. “With the GMSL2™ Camera Starter Kit, Innodisk takes on the complexity of early-stage integration so customers can focus on development and move into PoC sooner.”

Source Code Included for Seamless Customization

With the camera source code in hand, engineering teams can independently adapt the software driver to their own requirements and use the kit as a working foundation for further development. Innodisk also provides comprehensive customization services from hardware fine-tuning to application deployment, helping customers move smoothly into design-in and mass production.

Expanding GMSL2™ Portfolio for Diverse Edge AI Scenarios

The kit supports edge AI scenarios including blind spot detection and advanced driver assistance systems (ADAS) for heavy-duty vehicles, object recognition and environmental perception for humanoid robots and AMRs.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/innodisk-launches-all-in-one-gmsl2-camera-starter-kit-to-accelerate-edge-ai-vision-deployment-302916771.html

SOURCE Innodisk Corporation

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