Core Insights - LendingClub reported growth in key metrics such as loan originations and deposits, but faced a deceleration in growth rates in the final quarter of the year, leading to a 23% drop in shares after hours [1][2]. Financial Performance - Consumer loan originations in Q4 reached $1.8 billion, a 13% year-on-year increase, but down from a 23% growth rate in Q3 [2]. - Revenues increased by 17% to $217.2 million, while deposits rose by 24% year-on-year to $9.1 billion [2]. Guidance and Projections - The company projects Q1 loan originations between $1.8 billion and $1.9 billion, indicating a growth of 12.5% to 18% compared to the previous year [3]. - Pre-provision net revenue guidance for the current quarter is set at $60 million to $70 million, slightly below the consensus estimate of $73 million [9]. Credit Metrics - The net charge-off ratio for the held-for-investment portfolio improved to 4.5%, down from 6.6% the previous year [4]. - CEO Scott Sanborn highlighted that delinquencies were over 40% better than competitors, attributing this to the company's data advantage and disciplined risk management [5]. Product and Technology Developments - The "top up" offering has seen an 80% increase in issuance dollars per member compared to traditional personal loans [6]. - The DebtIQ tool has led to a 50% increase in member engagement and a 25% boost in loan issuance for enrolled members [7]. Marketing and Growth Strategy - CFO Drew LaBenne indicated that marketing expenses will rise, with expectations of continued loan volume growth as the company enters the seasonally favorable second and third quarters [8]. - The LevelUp savings product has generated $1.2 billion in deposits since its launch in August 2024, with over 70% of customers actively adding to their savings [10].

Financial Data and Key Metrics Changes - In Q4 2024, originations increased by 13% year-on-year, reaching over $1.8 billion [25] - Pre-provision net revenue (PPNR) rose by 34% to $74 million compared to $56 million in the same quarter last year [27] - Total net revenue for the quarter was $217 million, up 17% from $186 million in the same quarter of the prior year [28] - Non-interest income increased by 38% to $75 million, driven by improved loan sales prices [29] - Net interest income was $142 million, an 8% increase from $131 million in the same quarter last year [30] - Provision for credit losses was $63 million, up from $42 million in the same quarter last year [36] - Net income for the quarter was $9.7 million, including a $3.2 million post-tax, non-cash software impairment [39] Business Line Data and Key Metrics Changes - The company maintained credit outperformance with delinquencies over 40% better than the competitive set [9] - Loan sales prices increased for four consecutive quarters, up by 170 basis points year-on-year [12] - The demand from banks for loans increased significantly, accounting for roughly one-third of the volume in Q4, up from less than 5% at the beginning of the year [12] Market Data and Key Metrics Changes - The company experienced a 24% increase in its deposit base, driven by the launch of the LevelUp Savings product [10] - The marketplace loan demand is increasingly coming from banks, indicating a shift in buyer composition [12] Company Strategy and Development Direction - The company aims to accelerate growth by reactivating dormant marketing channels and enhancing mobile app engagement [15][22] - The strategy includes improving loan sales pricing and expanding into new marketing channels as the market conditions improve [14][22] - The company is working towards obtaining an investment-grade rating for its structured certificate program to attract more institutional investors [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow originations and improve shareholder returns in 2025 [22][42] - The management noted that credit card balances and interest rates are at historic highs, presenting a significant savings opportunity for members [16] - The company anticipates a gradual improvement in earnings and return on tangible common equity (ROTCE) as it moves through 2025 [42] Other Important Information - The company has activated plans to support customers affected by the devastating fires in Los Angeles [44] - The management highlighted the importance of maintaining discipline on credit while exploring new marketing opportunities [49] Q&A Session Summary Question: First quarter volume guidance - Management indicated that Q4 and Q1 are typically challenging seasonal quarters, and they plan to reactivate marketing channels as they exit Q1 [48][50] Question: Long-term volume and ROE metrics - Management expressed confidence in returning to $3 billion to $4 billion quarterly run rates in the future, despite tighter credit standards [56] Question: Loan performance across consumer cohorts - Management reported stable performance across all consumer cohorts, with some outperformance in the near-prime segment [64] Question: Changes in loan performance and capital deployment strategy - Management plans to retain a healthy level of held-for-investment loans while also increasing the held-for-sale portfolio [70][72] Question: Deposit costs and customer response - Management noted a significant decrease in deposit costs due to exiting a high-cost commercial deposit customer and effective repricing strategies [78][81] Question: Marketing expenses and volume growth - Management expects an increase in marketing expenses as they expand acquisition channels, but they also anticipate improved marketing efficiency [101] Question: Funding channels and pricing dynamics - Management emphasized the importance of optimizing funding channels and pricing strategies to enhance returns and maintain growth [120][124] Question: Opportunities for second looks on declined applications - Management confirmed that there is potential to open up second look opportunities as they generate more volume [134]

LendingClub (LC) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company that connects borrowers and lenders online would post earnings of $0.07 per share when it actually produced earnings of $0.13, delivering a surprise of 85.71%.Over th ...

Fourth Quarter 2024 Results January 28, 2025 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," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking state ...

EXHIBIT 99.1 LendingClub Reports Fourth Quarter and Full Year 2024 Results Grew Originations +13%, Revenue +17%, and Total Assets +20% in Fourth Quarter Compared to Prior Year Executed $400 Million Loan Sale out of the Held-for-Sale Portfolio to a New Bank Buyer SAN FRANCISCO – January 28, 2025 – LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2024 ...

Grew Originations +13%, Revenue +17%, and Total Assets +20% in Fourth Quarter Compared to Prior Year Executed $400 Million Loan Sale out of the Held-for-Sale Portfolio to a New Bank BuyerSAN FRANCISCO, Jan. 28, 2025 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2024."We executed well in 2024, exiting the year with growth in origin ...

LendingClub Corporation (LC) is slated to announce fourth-quarter and full-year 2024 results on Jan. 28, after market close. Its quarterly earnings and revenues are expected to have witnessed a year-over-year increase.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.LendingClub’s third-quarter 2024 earnings surpassed the Zacks Consensus Estimate. Results were aided by a rise in total net revenues.LendingClub has an impressive earnings surprise history. Its earnings surpassed the Zack ...

LendingClub (NYSE: LC ) launched in 2007 as a peer-to-peer lender and one of the pioneers of the then-burgeoning fintech landscape. The company went public in 2014 and then made a major pivot in 2020, shutting down its P2P lending platformWriting about banks, fintech, mutual banks, and other financials and sectors occasionally. Interested in the growing intersection between banks and fintech companies. Have now covered banking for five years.Analyst’s Disclosure: I/we have a beneficial long position in the ...

Core Viewpoint - LendingClub Corporation will report its fourth quarter and full year 2024 earnings on January 28, 2025, and will host a conference call to discuss the results [1] Group 1: Earnings Announcement - The earnings report will be released after market closes on January 28, 2025 [1] - A conference call to discuss the financial results will take place at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day [1] Group 2: Conference Call Participation - Analysts can submit questions via email before 12:00 p.m. Pacific Time on January 27, 2025 [2] - A live webcast of the call will be available on the company's investor relations website [3] - Participants can register for the call or join by dialing the provided phone numbers with an access code [3] Group 3: Replay Information - An audio archive of the call will be accessible on the investor relations website [4] - The audio replay will be available one hour after the call until February 4, 2025 [4] Group 4: Company Overview - LendingClub Corporation is the parent company of LendingClub Bank, a leading digital marketplace bank in the U.S. [5] - The bank offers a wide range of financial products and services aimed at helping members save on borrowing and earn more on savings [5] - The company utilizes advanced credit decisioning and machine-learning models based on extensive data to enhance access to credit and generate returns for loan investors [5]

After a very strong bull-run in 2024, LendingClub Corporation (NYSE: LC ) is off to another strong start. Valuation still remains well below historical levels, though one can easily argue that the historical multiple was overpriced. However, given the growthAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am n ...