LendingClub Reports Top Line Revenue of $180.7 Million, Net Income of $12.3 Million. Earnings Beat Expectations

LendingClub (NYSE:LC) reported Q1 earnings today, surpassing analyst expectations.

According to the digital bank, net revenue during the quarter was $180.7 million, compared to $185.6 million in the prior quarter. While this was higher than Q4, it was far below Q1 of 2023 when the company reported $245.7 million in revenue.

Net income for the quarter was $12.3 million, or a diluted EPS of $0.11, compared to $10.2 million, or a diluted EPS of $0.09, in the prior quarter. For the first quarter of 2023, LendingClub reported $0.13 in EPS.

LendingClub highlighted the following metrics:

  • Total assets of $9.2 billion compared to $8.8 billion in the prior quarter, primarily reflecting growth in securities related to the structured certificate program.
  • Deposits were $7.5 billion compared to $7.3 billion in the prior quarter, primarily due to an increase in high-yield savings and certificates of deposit, partially offset by a decrease in brokered deposits.FDIC-insured deposits represent approximately 87% of total deposits.
  • Securities available for sale of $2.2 billion, compared to $1.6 billion in the prior quarter, primarily reflecting growth in the structured certificate program.
  • Whole loans held on the balance sheet, which consists of loans and leases held for investment and loans held for sale, remained flat at $5.2 billion compared to the prior quarter, as the company increased loan retention and repurchased a portfolio of LendingClub-originated loans, largely offsetting amortization of the existing portfolio.
  • Strong capital position with a consolidated Tier 1 leverage ratio of 12.5% and consolidated Common Equity Tier 1 capital ratio of 17.6%.
  • Book value per common share increased to $11.40, compared to $11.34 in the prior quarter.
  • Tangible book value per common share increased to $10.61, compared to $10.54 in the prior quarter.

Loan originations were$1.6 billion, slightly below Q4 of 2023 ($185.6 million)

LendingClub forecasted a Q2 2024 outlook of $1.6 to $1. 8 billion of loan originations and “Pre-Provision Net Revenue (PPNR)” of $30 to $40 million.

Scott Sanborn, LendingClub CEO, said they were pleased with the results of Q1 and the company “executing well against the factors we can control.”

“Our operating discipline, strong credit performance, and continued innovation are resulting in a sustainable operating rhythm that is delivering real value to our members and has us well positioned to seize the historic opportunity in front of us.”

Shares of LendingClub rose slightly in after-hours trading as the results topped analyst expectations. Currently trading at $7.81, shares have traded from $4.73 to $10.92 a share in the past 52 weeks.


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