LendingClub(US:LC)2022-05-03 16:00Financial Performance - Marketplace revenue for the three months ended March 31, 2022, was $179,966 thousand, a significant increase of 120.0% compared to $81,727 thousand for the same period in 2021 [25]. - Total non-interest income reached $189,857 thousand for the first quarter of 2022, up from $87,334 thousand in the same quarter of 2021, marking an increase of 117.0% [25]. - Consolidated net income for the three months ended March 31, 2022, was $40,836 thousand, compared to a net loss of $47,084 thousand for the same period in 2021, indicating a turnaround in profitability [28]. - Basic earnings per share (EPS) for common stockholders was $0.40 for the first quarter of 2022, compared to a loss of $0.49 in the same quarter of 2021 [28]. - Total comprehensive income for the three months ended March 31, 2022, was $20,649 thousand, compared to a loss of $46,880 thousand in the same period of 2021 [31]. Assets and Liabilities - Total assets increased to $5,574,425 thousand as of March 31, 2022, up from $4,900,319 thousand at December 31, 2021, representing a growth of approximately 13.7% [18]. - Total liabilities rose to $4,686,991 thousand as of March 31, 2022, up from $4,050,077 thousand at December 31, 2021, representing an increase of approximately 15.7% [19]. - Total deposits increased to $3,977,477 thousand as of March 31, 2022, from $3,135,788 thousand at December 31, 2021, reflecting a growth of approximately 26.9% [19]. - Total cash, cash equivalents, and restricted cash at the end of the period was $1,113,732, compared to $970,880 at the end of the same period in 2021 [36]. - Total assets as of March 31, 2022, amounted to $92,031 million, a decrease from $162,323 million as of December 31, 2021 [109]. Credit Losses and Provisions - Provision for credit losses was $52,509 thousand for the first quarter of 2022, compared to $21,493 thousand in the same quarter of 2021, indicating an increase in expected credit losses [25]. - The company reported a credit loss expense of $52,228 thousand for loans and leases held for investment during the first quarter of 2022 [81]. - The allowance for loan and lease losses (ALLL) increased to $187,985 thousand, up from $144,389 thousand, indicating a rise of 30% [79]. Cash Flow - Net cash provided by operating activities was $40,673 for the three months ended March 31, 2022, compared to a cash used of $51,366 in the same period of 2021 [36]. - Net cash used for investing activities was $(360,224) for the three months ended March 31, 2022, compared to cash provided of $287,908 in the prior year [36]. - Net cash provided by financing activities was $669,697 for the three months ended March 31, 2022, compared to $105,853 in the same period of 2021 [36]. Securities and Investments - The fair value of U.S. agency residential mortgage-backed securities was $227,135 million as of March 31, 2022, compared to $123,699 million on December 31, 2021, indicating a significant increase [65]. - The company reported gross unrealized losses of $15,224 million for total securities available for sale as of March 31, 2022, compared to $3,744 million on December 31, 2021, representing a substantial increase in losses [66]. - The total fair value of municipal securities was $2,872 million as of March 31, 2022, down from $3,252 million as of December 31, 2021, indicating a decrease of approximately 11.66% [65]. Loans and Leases - Total loans and leases held for investment increased to $3,422,296 thousand as of March 31, 2022, up from $2,899,126 thousand as of December 31, 2021, representing a growth of 18% [78]. - Total consumer loans held for investment rose to $2,621,509 thousand, a 30% increase from $2,021,916 thousand in the previous period [79]. - The company reported a total of $218,801 in certificates of deposit as of March 31, 2022, significantly up from $68,405 as of December 31, 2021, marking a growth of about 220.5% [158]. Regulatory and Compliance - The Company is subject to regulatory examinations and actions, which may impact its business practices and compliance with licensing requirements [198]. - The Company is required to obtain a written determination of non-objection from the OCC before declaring any dividends, and no dividends were declared during the first quarters of 2022 and 2021 [212]. - The Company has resolved past legal matters without material impact on its financial operations, but future outcomes remain uncertain [200]. Stock-Based Compensation - Stock-based compensation for the three months ended March 31, 2022, was $15,694, compared to $14,801 in the same period of 2021 [36]. - The company granted 3,784,854 Restricted Stock Units (RSUs) with an aggregate fair value of $53.9 million during the first quarter of 2022 [172]. - As of March 31, 2022, there was $140.4 million of unrecognized compensation cost related to unvested RSUs, expected to be recognized over the next 2.2 years [173].