Lendingclub Corporation · NYSE:LC
Lendingclub — Q1 2025 Earnings Presentation
22 slides from Lendingclub's earnings presentation, Apr 29, 2025
Slide 1: First Quarter 2025 Results
First Quarter 2025 Results April 29, 2025
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation, including statements regarding our competitive advantages, loan and financial performance, business outlook, and demand for our loan programs, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
Slide 3: Award-Winning, Member-Focused Digital Marketplace Bank
Award-Winning, Member-Focused Digital Marketplace Bank Members1 Originations1 5+ $100+ Million Billion Best Checking Best High Yield Best Personal Loan for Account Overall Savings Account Debt Consolidation Average Customer Net Promoter Review2 Score (NPS)3 4.83 Out of 5 stars 81 1) Total members an
Slide 4: Historically Large Total Addressable Market
Historically Large Total Addressable Market Historically High Outstanding Historically High Credit Card Revolving Consumer Credit1 Interest Rates2 (in thousands; February 2010 to February 2025, seasonally adjusted) (February 2010 to February 2025) 21.37% 23 $1.32T $1,350 21 $1,250 Commercial bank av
Slide 5: LendingClub Offers Consumers a Compelling Value Proposition
LendingClub Offers Consumers a Compelling Value Proposition Historically High & LendingClub Delivers And Our Members Costly Credit Card Debt Compelling Value Love Us for It 48% of American households carry Members save on average over 30% Our Net Promoter Score (NPS) is over $1.3 trillion of revolvi
Slide 6: Consumer Strategy: Building Lifetime Lending Relationships
Consumer Strategy: Building Lifetime Lending Relationships 1 2 3 Acquire new Drive member Offer additional members through engagement with products and our core personal compelling products, features to meet loans franchise tools, and features their evolving needs Competitive rates / terms Mobil
Slide 7: Products Designed to Deeply Engage Members & Improve Financial Outcomes
Products Designed to Deeply Engage Members & Improve Financial Outcomes Award-winning high yield savings An easy way for members to refinance account that rewards members for their existing loan, add funds, and Best Personal Loan for Debt Consolidation positive savings behavior maintain a single mon
Slide 8: Strategically Positioned for Long-term Success
Strategically Positioned for Long-term Success 1 Traditional Fintechs Banks Ability to efficiently serve a broad range of customers Industry-leading marketing efficiency; 5M members ✓ ✓ ✗ Capital-light, high-ROE marketplace earnings stream $67.8M Non-Interest Income ✓ ✓ ✗ Economics Profitable earnin
Slide 9: 1Q25 Highlights: Exceeded Financial Targets
1Q25 Highlights: Exceeded Financial Targets 1Q25 Guidance Targets Actuals Commentary Total originations of $2B consisting of approximately: Total $1.8B to $1.9B $2.0B $675M of held-for-investment loans Originations +21% YoY $545M of marketplace whole-loan sales $525M sold through the structure
Slide 10: Continued Credit Outperformance vs. Competitive Set
Continued Credit Outperformance vs. Competitive Set Proprietary underwriting models informed by billions of cells of data on over $100 billion in loan originations driving over four years of credit outperformance LendingClub vs. Competitive Set: 30-day+ Delinquencies & Hardships at Month on Book 9 b
Slide 11: Multiple Loan Disposition Channels Available to Optimize Earnings
Multiple Loan Disposition Channels Available to Optimize In-Period Earnings and Return on Capital HIGHER Day-1 Contribution LOWER Day-1 Contribution LOWER lifetime value, capital usage, and credit risk HIGHER lifetime value, capital usage, and credit risk WHOLE LOAN STRUCTURED EXTENDED HELD FOR SALE
Slide 12: Driving Strong Originations Growth
Driving Strong Originations Growth Increased volumes and loan retention on balance sheet Consumer Loan Originations1 ($ in millions) +21% $2,100 - $2,300 YoY $1,989 $1,913 $1,813 $1,846 Whole Loan Sales $1,646 Whole Loan Sales 17% Whole Loan Sales Whole Loan Sales 15% 27% Whole Loan Sales + Structur
Slide 13: 20% Revenue Growth Driven by Marketplace and Net Interest Income
20% Revenue Growth Driven by Marketplace and Net Interest Income Total Net Revenue ($ in millions) +20% $217.2 $217.7 NON-INTEREST INCOME 17% year-over-year increase driven by growth in origination $180.7 volumes and continued improvement in loan sales prices due $74.8 $67.8 to strong loan buyer dem
Slide 14: 18% Growth in Average Interest-Earning Assets with 6% Net Interest Margin
18% Growth in Average Interest-Earning Assets with Attractive 6% Net Interest Margin Average Balances3 Average Yield3 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Cash and Other Interest-Earning Assets1 $1,217 $976 $940 $1,194 $893 5.42% 5.40% 5.30% 4.76% 4.30% Securities Available for Sale at
Slide 15: Disciplined Expense Management & Higher Marketing Investment
Disciplined Expense Management & Higher Marketing Investment Incremental marketing spend to support originations growth Efficiency Ratio Total Non-Interest Expense1 (Non-Interest Expense as a % of Net Revenue) ($ in millions) Efficiency Ratio 1Q24 2Q24 3Q24 4Q24 1Q25 Non-Interest Expense Less Market
Slide 16: 52% Growth in Pre-Provision Net Revenue
52% Growth in Pre-Provision Net Revenue Continued profitability while adding qualitative reserves due to macroeconomic uncertainty $8.1M qualitative allowance Pre-Provision Net Income and net fair value adjustments Net Revenue (PPNR)1 ($ in millions) due to macroeconomic uncertainty (after-tax)3 ($
Slide 17: Held for Investment Personal Loan Credit Performance by Vintage
Held for Investment Personal Loan Credit Performance by Vintage Continue to expect marginal ROEs exceeding 20% for all annual vintages Expected Personal Loans Lifetime Net Loss Rate1,3 LEGEND 2022 Vintage 2023 Vintage 2024 Vintage 9.3% 9.3% 9.5% The 2024 vintage contains Future Provision 0.9% 0.5%
Slide 18: Continued Growth in Originations; Maintaining 4Q Guidance
Continued Growth in Originations; Maintaining 4Q Guidance Outlook Context 2Q25 Guidance 4Q25 Guidance Continued positive momentum in originations Total $2.1B to $2.3B Total >$2.3B 2Q PPNR guide assumes Originations Originations growing revenue partially offset +16% to 27% YoY +25% YoY by investm
Slide 19: Reconciliation of GAAP to Non-GAAP Measures: Pre-Provision Net Revenue
Reconciliation of GAAP to Non-GAAP Measures: Pre-Provision Net Revenue1 For the three months ended In thousands March 31, 2025 December 31, 2024 March 31, 2024 GAAP Net income $ 11,671 $ 9,720 $ 12,250 Less: Provision for credit losses (58,149) (63,238) (31,927) Less: Income tax expense (4,024) (1,3
Slide 20: Reconciliation of GAAP to Non-GAAP Measures: Tangible Book Value Per Share
Reconciliation of GAAP to Non-GAAP Measures: Tangible Book Value Per Common Share1 In thousands, except share and per share data. March 31, 2025 December 31, 2024 March 31, 2024 Tangible common equity: GAAP common equity $ 1,364,517 $ 1,341,731 $ 1,266,286 Less: Goodwill (75,717) (75,717) (75,717) L
Slide 21: Reconciliation of GAAP to Non-GAAP Measures: Return on Tangible Common Equity
Reconciliation of GAAP to Non-GAAP Measures: Return On Tangible Common Equity1 In thousands, except ratios. March 31, 2025 December 31, 2024 March 31, 2024 Average tangible common equity: Average GAAP common equity $ 1,349,473 $ 1,335,730 $ 1,257,237 Less: Average goodwill (75,717) (75,717) (75,717)
Slide 22: LendingClub
= LendingClub