Lendingclub Corporation · NYSE:LC
Lendingclub — Q4 2024 Earnings Presentation
22 slides from Lendingclub's earnings presentation, Jan 28, 2025
Slide 1: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results January 28, 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+ $95+ 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 85 1) Total members and
Slide 4: Total Addressable Market Has Never Been Greater
Total Addressable Market Has Never Been Greater Record High Outstanding Record High Credit Card Revolving Consumer Credit1 Interest Rates2 (in thousands; November 2009 to November 2024, seasonally adjusted) (November 2009 to November 2024) $1,350 $1,250 $1.36T Total outstanding 23% 21% 21.47% revolv
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 47% 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 add funds account that rewards members for to their existing loan while maintaining Best Personal Loan for Debt Consolidation positive savings behavior a single monthly
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 $74.8M Non-Interest Income ✓ ✓ ✗ Economics Profitable earnin
Slide 9: 4Q24 Highlights: Achieved Financial Targets
4Q24 Highlights: Achieved Financial Targets 4Q24 Guidance Targets Actuals Commentary Total originations of $1.85B consisting of approximately: Q4 Total $605M of Held-for-Investment loans Originations $1.8B to $1.9B $1.85B $575M of marketplace whole-loan sales $560M through the structured certi
Slide 10: Continued Credit Outperformance vs. Competitive Set
Continued Credit Outperformance vs. Competitive Set LendingClub vs. Competitive Set: 30-day+ Delinquencies & Hardships at Month on Book 9 by Quarterly Vintage1,2 LendingClub Competitive Set3 FICO 660-719 FICO 720-779 FICO 780-850 7% 46% 7% 7% 6% 6% 6% 5% 4.7% 5% 5% 4.4% 4.3% 4% 4% 44% 4% 3% 3% 2.4%
Slide 11: Proven Multiple Loan Disposition Channels Available
Proven Multiple Loan Disposition Channels Available to Optimize In-Period Earnings and Return on Capital HIGHER Day-1 Contribution LOWER Day-1 Contribution LOWER lifetime value, capital usage, and credit risk HIGHER lifetime value, capital usage, and credit risk WHOLE LOAN STRUCTURED EXTENDED HELD F
Slide 12: 13% Year-Over-Year Growth in 4Q'24 Originations
13% Year-Over-Year Growth in 4Q’24 Originations Growth in whole loan sales to banks and Held-for-investment loans +13% Consumer Loan Originations1 ($ in millions) vs. 4Q23 $1,913 $1,813 $1,846 $1,800 - $1,900 Whole Loan Sales $1,630 $1,646 Whole Loan Sales 17% 15% Whole Loan Sales Whole Loan Sales W
Slide 13: 17% Year-Over-Year Revenue Increase
17% Year-Over-Year Revenue Increase Driven by both Marketplace Revenue and Net Interest Income +17% Total Net Revenue ($ in millions) vs. 4Q23 $217.2 $201.9 $185.6 NON-INTEREST INCOME 38% year-over-year increase driven by growth in origination $74.8 $61.6 volumes and continued improvement in loan sa
Slide 14: 28% Growth in Average Interest-Earning Assets with Attractive Net Interest Margin
28% Growth in Average Interest-Earning Assets with Attractive Net Interest Margin Average Balances3 Average Yield3 Higher average cash balances 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 causing temporary Cash and Other Interest-Earning Assets1 $1,191 $1,217 $976 $940 $1,194 5.47% 5.42% 5.40%
Slide 15: Disciplined Expense Management Driving Improved Efficiency Ratio
Disciplined Expense Management and Revenue Growth Driving Improved Efficiency Ratio Efficiency Ratio Total Non-Interest Expense1 (Non-Interest Expense as a % of Net Revenue) ($ in millions) Efficiency Ratio 4Q23 1Q24 2Q24 3Q24 4Q24 Non-Interest Expense Less Marketing Marketing as % of Net Revenue Co
Slide 16: Net Income of $9.7M, Including Impact of Non-Cash Impairment
Net Income of $9.7M, Including Impact of $3.2M Non-Cash Impairment Related to Tally Code-Base Acquisition Pre-Provision Net Revenue (PPNR)1 Net Income ($ in millions) ($ in millions) $3.2M non-cash software impairment 34% charge (after-tax)2 $74.3 $14.5 $65.5 $55.6 $10.2 $9.7 4Q23 3Q24 4Q24 4Q23 3Q2
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 2022 Vintage 2023 Vintage LEGEND 2023 vintage incorporates higher level of 9.2% 9.3% 8.5% - 8.8% 8.5% - 8.8% qual
Slide 18: 2025 Guidance
2025 Guidance Outlook Context 1Q25 Guidance 4Q25 Guidance Maintain positive GAAP Net Income and improving Total Total >$2.3B performance through the year Originations $1.8B to $1.9B Originations +25% YoY Macroeconomic assumptions: One 25bps Fed interest rate reduction in the second half of the
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 December 31, 2024 September 30, 2024 December 31, 2023 GAAP Net income $ 9,720 $ 14,457 $ 10,155 Less: Provision for credit losses (63,238) (47,541) (41,907) Less: Income tax expense (1,38
Slide 20: 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 Share1 In thousands, except share and per share data. December 31, 2024 September 30, 2024 December 31, 2023 Tangible common equity: GAAP common equity $ 1,341,731 $ 1,342,895 $ 1,251,822 Less: Goodwill (75,717) (75,717) (75
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. December 31, 2024 September 30, 2024 December 31, 2023 Average tangible common equity: Average GAAP common equity $ 1,335,730 $ 1,307,521 $ 1,221,425 Less: Average goodwill (75,717) (75,717) (
Slide 22: LendingClub
= LendingClub