Lendingclub Corporation · NYSE:LC
Lendingclub — Q3 2022 Earnings Presentation
19 slides from Lendingclub's earnings presentation, Oct 26, 2022
Slide 1: Third Quarter 2022 Results
Third Quarter 2022 Results October 26, 2022
Slide 2: 3Q 2022 Results & Financial Metrics
3Q 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 40% of American households carry over LendingClub’s 4+ million members Our direct-to-consumer digital $1 trillion of revolving debt, paying an have already come to us to access marketplace bank features a estimated $111 billion in fees and lower-cost credit. While we serve
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+ $80+ 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: 3Q22 Highlights: Exceeded Revenue and Net Income Targets
3Q22 Highlights: Exceeded Revenue and Net Income Targets 3Q22 Guidance Targets Actuals Commentary Net Revenue up 24% YoY driven by: ▪ Marketplace revenue flat YoY Net Revenue $280M to $300M $304.9M ▪ Net interest income up 89% driven by growth in the consumer loan portfolio GAAP Net Income of $43.2M
Slide 7: 3Q22 YoY Highlights: Marketplace Bank Model Supporting Strong Results
3Q22 YoY Highlights: Marketplace Bank Model Supporting Strong Results Despite Less Favorable Environment NET REVENUE NET INTEREST INCOME AVG. HFI LOAN PORTFOLIO 24% 89% Net Interest Income of $123.7M, 76% Average Held for Investment Net Revenue growth driven by Net Interest Income driven by average
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+ members ✓ ✓ ✗ Capital-light, high-ROE marketplace earnings stream $181.2M Non-Interest Income ✓ ✓
Slide 9: A Self-Reinforcing Flywheel
A Self-Reinforcing Flywheel ~75-80% of originations ~20-25%of originations Our capital-light Our HFI portfolio core marketplace delivers interest business drives Market- income from high- Earnings Portfolio scale and place quality, high-yield fee revenue loans funded by low-cost deposits Fintech Ban
Slide 10: Revenue Growth Driven by Net Interest Income from Held for Investment Consumer Loan Portfolio
Revenue Growth Driven by Net Interest Income from Held for Investment Consumer Loan Portfolio Total Net Revenue1 ($ in millions) 24% Net Interest Income Non-Interest Income $304.9 NET INTEREST INCOME $246.2 $123.7 89% YoY growth reflects consumer loan growth $65.3 89% and Net Interest Margin expansi
Slide 11: Non-Interest Income: Marketplace Revenue Flat on Higher Retained Loans
Non-Interest Income: Marketplace Revenue Flat on Higher Retained Loans Quarterly Loan Originations1,2 Quarterly Marketplace Revenue ($ in millions) ($ in millions) Marketplace Originations 14% Retained Loans $3,539 $3,107 Marketplace Sold Loans $2,386 Drive -3% Marketplace $2,471 Revenue $174.6 $173
Slide 12: Interest Income from HFI Portfolio Grew 115% YoY
Interest Income from HFI Portfolio Grew 115% YoY as Consumer Loan Portfolio Balances Grew Average Held for Investment Interest Income from Held Balances1 ($ in millions) 76% for Investment Loans2 ($ in millions) 115% $4,404 $124.0 Commercial/PPP Loans Consumer Loans $798 $10.5 $798 HFI Portfolio $2,
Slide 13: Continued Balance Sheet Remix to High-Yielding Consumer Loans Supports Strong Net Interest Margin
Continued Balance Sheet Remix to High-Yielding Consumer Loans Supports Strong Net Interest Margin Consolidated Net Interest Margin (Average balances; $ in millions) Average Balances Average Yield 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 Unsecured consumer Unsecured consumer loans $991 $1,54
Slide 14: Expense Management and Temporary Favorability in Marketing Drives Improved Efficiency Ratio
Expense Management and Temporary Favorability in Marketing Drives Improved In-Period Efficiency Ratio Efficiency Ratio Total Non-Interest Expense1 (Non-Interest Expense as a % of Net Revenue1) ($ in millions) ($ in millions) Efficiency Ratio 3Q21 4Q21 1Q22 2Q22 3Q22 Non-Interest Expense Less Marketi
Slide 15: Net Income Growth Driven by Strong Revenue Growth and Positive Operating Leverage
Net Income Growth Driven by Strong Revenue Growth and Positive Operating Leverage Net Income Pre-Tax, ($ in millions) Pre-Provision Income ($ in millions) 76% $43.2 $118.7 $27.2 59% $67.4 3Q21 3Q22 3Q21 3Q22 Diluted Provision for $0.26 $0.41 Credit Losses ($37.5) ($82.7) EPS Book Value Per Common Sh
Slide 16: High Quality Prime Portfolio Driving Strong HFI Credit Performance
High Quality Prime Portfolio Driving Strong HFI Credit Performance1 Servicing HFI 30+ Day Delinquencies Portfolio1 Portfolio3 4.0% Personal Loan 3.5% Credit Performance Avg. FICO 718 730 3.0% ▪ PL Prime originations focused on customers with average 2.5% FICO 700+ and average Avg. income $100K+ Inco
Slide 17: Guidance
Guidance 4Q22 Guidance FY22 Outlook Total Net $255M to $265M $1,180M to $1,190M Revenue Net Income $15M to $25M $280M to $290M 17
Slide 18: Reconciliation of GAAP to Non-GAAP Measures: Tangible Book Value Per Common Share
Reconciliation of GAAP to Non-GAAP Measures: Tangible Book Value Per Common Share We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company’s use of equity. In thousands, except share and per share data. September 30, 2022 September 30, 2021 GAAP comm
Slide 19: LendingClub
-: LendingClub