LendingClub (NYSE:LC) reported Q4 earnings today generating a net income of $10.2 million and a diluted EPS of $0.09.
A year prior in the same quarter, LendingClub generated a net income of $38.9 million and a diluted EPS of $0.36.
Scott Sanborn, CEO of LendingClub, said the digital bank remained one of the few Fintechs to sustain GAAP profitability during a “turbulent macro environment, which positions us well for future acceleration.”
“Since acquiring our bank charter three years ago, we have transformed our financial profile and business – tripling our balance sheet, building tangible book value by approximately 2X, growing deposits by almost 4X, and delivering 12 straight quarters of credit out performance. Furthermore, we continue to innovate with offerings like our structured certificates and we’ve made tangible progress towards a multi-product mobile-first experience. This foundation will enable us to capture the ongoing historic multi-billion-dollar refinance opportunity, engage our members in entirely new ways, and build long-term shareholder value,” said Sanborn.
Loan originations stood at $1.6 billion compared to $1.5 billion in the prior quarter. Loan originations in Q4 2022 were $2.524 billion. Deposits increased to $7.3 billion from $7 billion in Q3 – this was due to an increase in certificate of deposits. FDIC insured deposits were reported at 87% of the total.
LendingClub guided loan originations of $1.5 billion to $1.7 billion in Q1 2024. Pre provision net revenue is expected to be between $30 million to $40 million.
LendingClub says it has $1.3 billion in cash on hand.
Shares in LendingClub were down slightly in after hours trading.
The earnings presentation is available here.