LendingClub Reports Q2 Earnings, Top and Bottom Line Decline

LendingClub (NYSE: LC), a federally chartered digital bank, announced financial results for Q2 2023 today, delivering a positive earnings number while showing declines in both the top and bottom line.

Total net revenue for Q2 was $232.5 million compared to $245.7 million during Q1. Total revenue for Q2 of 2022 was significantly higher at $330.1 million.

Net income arrived at $10.1 million, or diluted EPS of $0.09, compared to $13.7 million, or diluted EPS of $0.13, in Q1. During Q2 of 2022, LendingClub booked an EPS of $1.73.

Q2 loan originations were $2.0 billion compared to $2.3 billion in Q1.

Deposits were reported at $6.8 billion compared to $7.2 billion in the prior quarter, primarily due to the “planned maturity of brokered deposits.” LendingClub noted that FDIC-insured deposits represented approximately 85% of total deposits.

LendingClub guided for Q3 stating they expect loan originations to come in at between $1.4 billion to $1.7 billion.

Scott Sanborn, LendingClub CEO, issued the following statement on the company’s performance.

“We’re leaning into our data, membership, and business model advantages to deliver continued profitability in a difficult environment. While we expect the headwinds in the marketplace to persist, we’re managing the business prudently, continuing our disciplined credit underwriting, and developing new structures to meet the evolving needs of loan investors. We are maintaining strong liquidity and capital and remain positioned to capture the massive long-term growth opportunities to help our members keep more of what they earn and earn more on what they save.”

Shares in LendingClub traded lower in after-hours trading.

The earnings presentation is available here.

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