NYSE$LC

LendingClub Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Delivered record full year revenue and earnings growth despite challenging environment.

LendingClub Corporation reported fourth quarter results, demonstrating the benefits of its evolution into a marketplace bank. Recurring revenue grew significantly to offset the expected reduction in marketplace volumes. The company streamlined operations and will maintain underwriting discipline while remaining profitable.

  • Total net revenue of $262.7 million was comparable to the prior-year period, as strong growth in net interest income offset lower marketplace revenue.
  • Net income of $23.6 million compared to $29.1 million year over year, reflecting higher credit provisioning due to growth in the held-for-investment portfolio, partially offset by favorable marketing efficiency.
  • Loan originations were $2.5 billion, compared to $3.1 billion in the prior-year period.
  • Total assets increased 63% year over year to $8.0 billion, primarily reflecting growth in loans held for investment, including the acquisition of a $1.05 billion outstanding principal loan portfolio in the fourth quarter of 2022.

Headline financials

Total Revenue

$263M

Previous: $262M+0.2%
EPS (adj)

$0.19

Previous: $0.27-29.6%
Total loan originations

$2.5B

Previous: $3.07B-18.5%
Net interest margin

7.8%

Previous: 7.6%+2.6%
Efficiency ratio

68.5%

Previous: 71.8%-4.6%
Common equity Tier 1 capital ratio

15.8%

Previous: 16.7%-5.4%
Tier 1 leverage ratio

14.1%

Previous: 14.3%-1.4%
Book value per common share

$10.93

No prior period
Tangible book value per common share

$10.06

No prior period
Net Income

$23.6M

Previous: $29.1M-18.9%
Operating Income

$21.2M

No prior period
Cash & Equivalents

$1.06B

No prior period
Total Assets

$7.98B

No prior period

Revenue & EPS history

LendingClub · Revenue · Quarterly

$263M

Q4 2022+0.2%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

LendingClub · $60.9M total across 1 segment · Q3 2023

  • Marketplace revenue
    $60.9M

Forward guidance

Given the rapid change in the economic environment, the company is currently providing guidance for the first quarter of 2023 and expects loan originations and pre-provision net revenue to be in the ranges below. For 2023, the company intends to remain profitable, while investing in-period earnings into loan retention to support future earnings.

Tailwinds

  • Loan originations are expected to be $1.9B to $2.2B.
  • Pre-Provision Net Revenue is expected to be $55M to $70M.
  • Company plans to maintain held-for-investment loan balances in line with the fourth quarter of 2022.
  • Company intends to remain profitable.
  • Company will invest in-period earnings into loan retention to support future earnings.

Headwinds

  • Guidance is only provided for the first quarter of 2023.
  • Outlook for loan originations reflects the impact of rising rates on marketplace demand.
  • Outlook reflects continued prudent underwriting.
  • Economic environment is rapidly changing.
  • No specific EPS or revenue guidance provided.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+0.6%

Avg return

Earnings day

+3.3%

Avg return

5 days after

+1.9%

Avg return

30 days after

51%

23 / 45 earnings

Positive

+50.7%

Q2 2021

Best reaction

-42.3%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-0.7%-0.9%
Q4 2025-16.2%-17.7%-23.8%
Q3 2025+9.7%+9.1%-1.3%
Q1 2025-11.3%-6.4%-8.9%
Q4 2024-14.3%-23.0%-24.0%
Q3 2024+11.5%+14.8%+34.9%
Q2 2024+12.4%-4.4%+8.9%
Q1 2024+15.2%+18.8%+13.3%
Q4 2023+0.2%+0.4%-9.9%
Q3 2023-5.8%-4.7%+5.5%
Q2 2023-20.6%-17.1%-32.5%
Q1 2023-0.6%+2.4%+13.7%
Q4 2022-10.4%+9.1%+6.5%
Q3 2022-10.5%-9.7%-10.4%
Q2 2022-2.6%-2.2%-2.9%
Q1 2022+17.9%+13.4%+13.0%
Q4 2021-26.1%-12.9%-12.9%
Q3 2021+21.2%+37.2%+2.8%
Q2 2021+50.7%+61.9%+80.3%
Q1 2021+6.9%+0.8%+2.1%
Q4 2020+14.6%+53.3%+41.4%
Q3 2020+3.7%+5.0%+65.1%
Q2 2020+5.2%+7.8%+5.4%
Q1 2020-17.5%-16.7%-13.7%
Q4 2019-1.4%-1.1%-28.2%
Q3 2019+7.4%+7.6%-7.1%
Q2 2019+9.4%+12.5%+0.4%
Q1 2019+7.7%+6.3%-11.9%
Q4 2018-5.3%-12.1%-15.7%
Q3 2018+5.7%-0.6%-9.2%
Q2 2018-7.1%-6.8%-8.1%
Q1 2018+24.5%+21.6%+28.6%
Q4 2017-1.3%-15.2%-8.4%
Q3 2017-21.5%-26.5%-38.6%
Q2 2017+23.8%+11.3%+17.9%
Q1 2017-4.8%-2.5%-7.3%
Q4 2016-5.8%-15.7%-17.8%
Q3 2016+12.3%+19.7%+14.2%
Q2 2016+0.8%+13.7%+13.9%
Q1 2016-42.3%
Q4 2015+8.1%
Q3 2015+1.3%
Q2 2015+0.4%
Q1 2015-1.0%
Q4 2014-13.7%
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012

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