Lendingclub Corporation · NYSE:LC
Lendingclub — Q1 2022 Earnings Presentation
18 slides from Lendingclub's earnings presentation, Apr 27, 2022
Slide 1: First Quarter 2022 Results
First Quarter 2022 Results April 27, 2022
Slide 2: 1Q 2022 Results & Financial Metrics
1Q 2022 Results & Financial Metrics
Slide 3: Disclaimer
Disclaimer Some of the statements below, 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,” “pla
Slide 4: The Problem We're Solving
The Problem We’re Solving Many American households have LendingClub’s 4+ million Our direct-to-consumer digital turned to credit cards to manage their members have already come to marketplace bank features a finances, which has resulted in ~40% us to access lower-cost credit. vertically integrated m
Slide 5: Award-Winning Member-Focused Digital Marketplace Bank
Award-Winning Member-Focused Digital Marketplace Bank Members1 Originations1 Vision Mission Promise Become To champion the 4+ $70+ America’s Empower Our Members financial success of our members Million Billion Financial Health Club. on Their Path to Financial with fairness, simplicity, and Health. h
Slide 6: 1Q22 Highlights: Exceeded All Targets
1Q22 Highlights: Exceeded All Targets 1Q22 Guidance Targets Actuals Commentary Net Revenue up 10% QoQ and 174% YoY driven by: ▪ Marketplace revenue driven by origination growth of 5% and strong loan investor Net Revenue $255M to $265M $289.5M demand QoQ ▪ Net interest income accelerated by growing t
Slide 7: 1Q22 Highlights: Transformative Financial Profile Emerging
1Q22 Highlights: Transformative Financial Profile Emerging NET REVENUE GAAP NET INCOME NET INTEREST INCOME 174% Net Revenue up 174% YoY $41M Record GAAP Net Income, $100M Net Interest Income 439% YoY to $289.5M, up 10% over up 40% QoQ, and +$87.9M YoY growth last quarter’s record NET INTEREST MARGIN
Slide 8: Best of Both Worlds
Best of Both Worlds Positioned well against both the fintech and bank competitive sets 1 Fintechs Banks Ability to efficiently serve a broad range of customers ✓ Industry leading marketing efficiency; 4M+ customers ✓ ✗ Capital-light, high-ROE marketplace earnings stream ✓ $190M Non-Interest Income ✓
Slide 9: New Vertically Integrated Marketplace Bank Model Drives Superior Performance
New Vertically Integrated Marketplace Bank Model Drives Superior Performance vs. Pure Marketplace Model Prior Record New Marketplace Variance Net Income Bank Model (4Q19 to 1Q22) (4Q19) (1Q22) Originations $3.1B $3.2B +$0.1B Net Interest Income $25.5M $99.7M +$74.2M Similar Non-Interest Income $162.
Slide 10: Net Income Growth Driven by Strong Revenue Growth and Operating Leverage
Net Income Growth Driven by Strong Revenue Growth and Operating Leverage Pre-Tax, Pre-Provision Income GAAP Net Income (Loss) ($ in millions) ($ in millions) Acquisition Acquisition New Model Closed 2/1/21 New Model $40.8 Closed 2/1/21 $98.3 $27.2 $29.1 $74.0 $67.4 $9.4 $44.2 ($28.4) ($47.1) 1Q21 2Q
Slide 11: Topline Growth Driven by Recurring Net Interest Income Stream
Topline Growth Driven by Recurring Net Interest Income Stream Combined With Strong Marketplace Revenue Non-Interest Income Total $289.5 Net Revenue1 Net Interest Income $262.2 Net Interest Income $246.2 ($ in millions) 439% YoY growth reflects $99.7 $204.4 $83.1 average loan growth of 65% $65.3 and
Slide 12: Loan Originations Driving Higher Revenues
Loan Originations Driving Higher Revenues Marketplace Revenue Reflects Higher Marketplace Originations and Strong Loan Investor Demand Quarterly Loan Originations1,2 Quarterly Marketplace Revenue ($ in millions) ($ in millions) Retained Loans Marketplace Originations $3,217 $3,107 $3,069 $2,722 Mark
Slide 13: Interest Income from HFI Portfolio Grew 19% QoQ
Interest Income from HFI Portfolio Grew 19% QoQ as Consumer Loan Portfolio Momentum Builds Bank Average Held for Investment Balances1 Bank Interest Income from Held for Investment Loans2 ($ in millions) ($ in millions) Consumer Loans $91.4 Commercial/PPP Loans 3 $3,136 $2,923 $77.0 $10.8 $2,509 $843
Slide 14: Growing Consumer Loan Portfolio Mix Drives Net Interest Margin Expansion
Growing Consumer Loan Portfolio Mix Drives Net Interest Margin Expansion to 8.61% Key Bank Balance Sheet Data Average Balances Average Yield (Average balances; $ in millions) 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Unsecured consumer loans $147 $512 $991 $1,542 $2,060 13.85% 15.24% 15.95%
Slide 15: High Quality Prime Portfolio Driving Strong HFI Credit Performance
High Quality Prime Portfolio Driving Strong HFI Credit Performance1 Servicing 30+ Day Delinquencies Portfolio1 HFI Portfolio3 2.5% Personal Loan Credit Performance ▪ PL Prime originations focused on Avg. FICO 722 727 2.0% customers with average FICO 700+ and average income $100K+ PL Prime2 Avg. Inco
Slide 16: Improving Operating Leverage While Continuing to Invest in Long-term Growth
Improving Operating Leverage While Continuing to Invest in Long-term Growth Efficiency Ratio Total Non-interest Expense1 (Non-interest Expense as a % of Net Revenue1) ($ in millions) ($ in millions) Efficiency Ratio 1Q21 2Q21 3Q21 4Q21 1Q22 127% Non-Interest Expense less Marketing Compensation & Ben
Slide 17: Raising 2022 Full Year Outlook
Raising 2022 Full Year Outlook Year-over-year net revenue growth up 40% to 53% As of 04/27/22 As of 01/26/22 vs. Prior 2Q22 Guidance FY22 Guidance FY22 Guidance Commentary $295M to $305M $1.15B to $1.25B Net Revenue +$50M +44% to 49% YoY +40% to 53% YoY Increasing origination target top end by $500M
Slide 18: LendingClub
= LendingClub