Core Insights - LendingClub Corporation has successfully closed a $100 million LendingClub Structured Loan Certificates (SLCLC) program transaction, securing an investment grade rating from Fitch Ratings, which enhances its appeal to investors [1][2] - The SLCLC program has seen significant growth since its launch in April 2023, reaching over $4 billion in total originations by December 31, 2024, indicating strong investor interest [2][3] - The company aims to broaden its investor distribution channels and diversify its funding profile by offering rated transactions, particularly targeting insurance companies with over $8.5 trillion in assets [2] Company Overview - LendingClub Corporation is the parent company of LendingClub Bank, recognized as America's leading digital marketplace bank, providing a wide range of financial products and services [4] - The company utilizes advanced credit decisioning and machine-learning models, based on extensive data, to facilitate access to credit and generate attractive risk-adjusted returns for loan investors [4] - Since its inception, LendingClub has served over 5 million members, helping them achieve their financial goals through innovative product structures [4]

Core Thesis - The financial sector is expected to outperform in 2025 due to decreasing inflation, an uninverted yield curve, and low valuations compared to the market [1] Financial Sector Overview - Fintech stocks, particularly LendingClub, were significantly impacted by rising interest rates in 2022-2023, but may rebound as rates decline [2] - LendingClub's stock fell approximately 20% after its Q4 earnings report, despite slightly beating revenue expectations [5] LendingClub's Performance - LendingClub's Q4 originations were $1.846 billion, a 13% increase year-over-year, but management projects Q1 originations to be flat at $1.8 billion to $1.9 billion, below analyst expectations of $2.01 billion [6] - The company’s prior originations peaked at $3.8 billion in Q2 2022, leading to disappointment in the slower growth rate [7] Market Position and Strategy - LendingClub's marketing spend decreased year-over-year, while its underwriting performance showed delinquencies 44% to 50% lower than peers [8] - The company has shifted focus to lower-cost marketing channels and engaging previous customers due to the downturn [10] Loan Pricing and Accounting - Loan sale pricing improved to about 98 cents on the dollar, allowing LendingClub to consider re-entering higher-cost marketing channels [11] - LendingClub's accounting method requires it to take immediate reserves against "held-for-investment" loans, impacting reported earnings [15][16] Comparative Analysis with SoFi - LendingClub trades at 1.2 times tangible book value, significantly cheaper than SoFi's 3.4 times, despite SoFi's recent revenue growth of 19% [13][14] - When adjusting for accounting differences, LendingClub's pre-provision net revenue was $74.4 million, up 33.7% year-over-year, indicating stronger underlying performance than reported [17][18]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to investment positions and opinions [1][2]. Summary by Categories - **Company Analysis**: No specific company analysis or insights are provided in the article [1][2]. - **Industry Insights**: The article does not contain any industry-related insights or analysis [1][2].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with LendingClub (LC) currently holding a Momentum Style Score of A [2][3] Group 2: LendingClub Performance Metrics - LendingClub has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3] - Over the past week, LC shares increased by 2.34%, while the Zacks Financial - Miscellaneous Services industry rose by only 0.1% [5] - In the last quarter, LC shares rose by 20.21%, and over the past year, they increased by 92.56%, significantly outperforming the S&P 500's gains of 4.45% and 25.58% respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for LC is 1,399,071 shares, which is a bullish indicator when combined with rising stock prices [7] - In the past two months, four earnings estimates for LC have increased, raising the consensus estimate from $0.78 to $0.86 [9] - For the next fiscal year, three estimates have also moved upwards, with no downward revisions noted [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, LendingClub is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

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 ...