# EDGAR Filing Document

**Accession Number:** 0001409970
**File Stem:** 0001409970-23-000009
**Filing Date:** 2023-1
**Character Count:** 55079
**Document Hash:** 6898189c0cf035d6277fb156609e8d17
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001409970-23-000009.hdr.sgml**: 20230125

**ACCESSION NUMBER**: 0001409970-23-000009

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230125

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230125

**DATE AS OF CHANGE**: 20230125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LendingClub Corp
- **CENTRAL INDEX KEY:** 0001409970
- **STANDARD INDUSTRIAL CLASSIFICATION:** PERSONAL CREDIT INSTITUTIONS [6141]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36771
- **FILM NUMBER:** 23552572

**BUSINESS ADDRESS:**
- **STREET 1:** 595 MARKET STREET
- **STREET 2:** SUITE 200
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105
- **BUSINESS PHONE:** 415-632-5600

**MAIL ADDRESS:**
- **STREET 1:** 595 MARKET STREET
- **STREET 2:** SUITE 200
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105

?xml version="1.0" ? lc-20230125

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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| | |
|:---|:---|
| **FORM** | **8-K** |

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| |
|:---|
| **CURRENT REPORT** |
| **Pursuant to Section 13 or 15(d)<br>of the Securities Exchange Act of 1934** |

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**Date of Report (Date of earliest event reported): January 25, 2023**

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| |
|:---|
| **LendingClub Corporation** |
| (Exact name of registrant as specified in its charter) |

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**Commission File Number: 001-36771** 

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| | |
|:---|:---|
| **Delaware** | **51-0605731** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) |

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| | | | |
|:---|:---|:---|:---|
| | **595 Market Street, Suite 200,** | **595 Market Street, Suite 200,** | **595 Market Street, Suite 200,** |
| | **San Francisco,** | **CA** | **94105** |
| (Address of principal executive offices and zip code) | (Address of principal executive offices and zip code) | (Address of principal executive offices and zip code) | (Address of principal executive offices and zip code) |

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Registrant's telephone number, including area code: 415 632-5600

Former name or former address, if changed since last report: N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol</u> | <u>Name of each exchange on which registered</u> |
| Common stock, par value $0.01 per share | LC | New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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| | |
|:---|:---|
| Emerging growth company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition** |

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On January 25, 2023, LendingClub Corporation ("LendingClub") issued a press release (the "Earnings Press Release") regarding its financial results for the fourth quarter and full year ended December 31, 2022. A copy of the Earnings Press Release is attached as Exhibit 99.1 to this Form 8-K and is incorporated by reference herein.

The information set forth in this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits** |
| (d) | Exhibits |

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| | |
|:---|:---|
| **Exhibit<br>Number** | **Exhibit Title or Description** |
| <u>[99.1](q422exhibit991er.htm)</u> | <u>[Press Release dated January 25, 2023](q422exhibit991er.htm)</u> |
| 104 | Cover Page Interactive Data File (Cover page XBRL tags are embedded within the Inline XBRL document) |

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**SIGNATURE(S)**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
| | | **LendingClub Corporation** | **LendingClub Corporation** |
| Date: | January 25, 2023 | By: | /s/ ANDREW LABENNE |
|  |  |  | Andrew LaBenne |
|  |  |  | Chief Financial Officer |
|  |  |  | (duly authorized officer) |

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## Exhibit 99.1

![lendingclublogonewa02.jpg](lendingclublogonewa02.jpg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EXHIBIT 99.1**

**LendingClub Reports Fourth Quarter and Full Year 2022 Results**

*Delivers Record Full Year Revenue and Earnings Growth Despite Challenging Environment*

SAN FRANCISCO – January 25, 2023 – <u>LendingClub Corporation</u> (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, 2022.

"Our fourth quarter results clearly demonstrated the benefits of our evolution into a marketplace bank. We significantly grew recurring revenue to offset the expected reduction in marketplace volumes," said Scott Sanborn, LendingClub CEO. "Looking ahead, in anticipation of a more challenging environment, we have streamlined our operations and will maintain our underwriting discipline. We also intend to remain profitable, while investing in-period earnings into loan retention to support future earnings. These actions will allow us to capitalize on growth opportunities as economic pressures abate."

**<u>Full Year 2022 Results Reflect Ongoing Transformation and Positioning for Long-Term Sustained Success</u>**

• 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.

• Deposits of $6.4 billion more than doubled, primarily due to growth in online savings deposits.

• Total net revenue of $1.2 billion up 45% year over year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net interest income, a recurring stream of earnings, increased over 100% to $474.8 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Marketplace revenue grew 18% year over year to $683.6 million.

• Pre-tax income of $153.0 million compared to $18.4 million in the prior year, reflecting solid revenue growth combined with improved operating efficiency.

• Implemented significant cost reduction plan to more closely align the company's expense base with anticipated loan volume in 2023.

**<u>Fourth Quarter 2022 Results</u>**

• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net interest income increased 63% year over year to $135.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Total loans and leases held for investment grew 104%, primarily reflecting growth in personal loan originations held for investment and the acquisition of a $1.05 billion loan portfolio in the fourth quarter of 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Net interest margin expanded to 7.8% from 7.6% in the prior-year period, primarily reflecting a greater mix of personal loans which generate a higher yield than the other loans held for investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Marketplace revenue was $123.4 million compared to $170.6 million year over year, reflecting a reduction in volumes consistent with the change in total origination volume due to the pace of Federal Reserve interest rate increases and tighter underwriting standards implemented by the company.

• Loan originations were $2.5 billion, compared to $3.1 billion in the prior-year period.

• Credit quality of the held-for-investment prime loan portfolio remained strong, with delinquency rates continuing to normalize as the portfolio seasons.

• Provision for credit losses of $61.5 million primarily reflects $700.8 million of quarterly loan originations held for investment and ongoing recognition of provision expense for discounted lifetime losses at origination.

• Efficiency ratio improved to 69% from 72% in the prior-year period due to better marketing efficiency.

• Pre-provision net revenue of $82.7 million grew 12% year over year, driven by improved operating efficiency.

• 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.

• Total equity of $1.2 billion grew $314.1 million from December 31, 2021, primarily reflecting net income generated over the period and the release of the deferred tax asset valuation allowance.

• Book value per common share of $10.93 increased 30% from December 31, 2021. Tangible book value per common share of $10.06 increased 35% from December 31, 2021. The increases in book value and tangible book value per share were consistent with the growth in total equity.

• Substantial capital with a consolidated Tier 1 leverage ratio of 14.1% and consolidated Common Equity Tier 1 capital ratio of 15.8%.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|<br>($ in millions, except per share amounts) | **December 31,<br>2022** | **September 30,<br>2022** | **December 31,<br>2021** | **December 31,<br>2022** | **December 31,<br>2021** |
| Total net revenue | $262.7 | $304.9 | $262.2 | $1187.2 | $818.6 |
| Non-interest expense | 180.0 | 186.2 | 188.2 | 766.9 | 661.4 |
| Pre-provision net revenue <sup>(1)</sup> | 82.7 | 118.7 | 74.0 | 420.3 | 157.2 |
| Provision for credit losses | 61.5 | 82.7 | 45.1 | 267.3 | 138.8 |
| Income before income tax benefit | 21.2 | 36.0 | 28.9 | 153.0 | 18.4 |
| Income tax benefit | 2.4 | 7.2 | 0.2 | 136.6 | 0.1 |
| Net income | $23.6 | $43.2 | $29.1 | $289.7 | $18.6 |
| Diluted EPS | $0.22 | $0.41 | $0.27 | $2.79 | $0.18 |
| Income tax benefit from release of tax valuation allowance | $3.2 | $5.0 | $— | $143.5 | $— |
| Net income excluding income tax benefit <sup>(12)</sup> | $20.4 | $38.2 | $29.1 | $146.2 | $18.6 |
| Diluted EPS excluding income tax benefit <sup>(12)</sup> | $0.19 | $0.36 | $0.27 | $1.41 | $0.18 |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>See page 3 of this release for additional information on our use of non-GAAP financial measures.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Fourth and third quarters of 2022 and the year ended December 31, 2022, include income tax benefit of $3.2 million, $5.0 million, and $143.5 million, respectively, due to the release of a deferred tax asset valuation allowance.

For a calculation of Pre-Provision Net Revenue, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share, refer to the "*Reconciliation of GAAP to Non-GAAP Financial Measures*" tables at the end of this release.

**<u>Financial Outlook</u>**

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. The outlook for loan originations reflects the impact of rising rates on marketplace demand combined with continued prudent underwriting. The company plans to maintain held-for-investment loan balances in line with the fourth quarter of 2022. For 2023, the company intends to remain profitable, while investing in-period earnings into loan retention to support future earnings.

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| | |
|:---|:---|
| | **First Quarter 2023** |
| Loan Originations | $1.9B to $2.2B |
| Pre-Provision Net Revenue | $55M to $70M |

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**About LendingClub**

LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $80 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.5 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.

**Conference Call and Webcast Information**

The LendingClub fourth quarter 2022 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday, January 25, 2023. A live webcast of the call will be available at <u>http://ir.lendingclub.com</u> under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (844) 200-6205, or outside the U.S. +1 (929) 526-1599, with Access Code 786729, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at <u>http://ir.lendingclub.com</u>. An audio replay will also be available 1 hour after the end of the call until February 1, 2023, by calling +1 (866) 813-9403 or outside the U.S. +44 (204) 525-0658, with Access Code 636433. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), Twitter handle (@LendingClub) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

**Contacts**

For Investors:

<u>IR@lendingclub.com</u>

Media Contact:

<u>Press@lendingclub.com</u>

**Non-GAAP Financial Measures**

To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Pre-Provision Net Revenue, Net Income Excluding Income Tax Benefit, Diluted EPS Excluding Income Tax Benefit, and Tangible Book Value Per Common Share. Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.

We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.

We believe Pre-Provision Net Revenue, Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit are important measures because they reflect the financial performance of our business operations. Pre-Provision Net Revenue is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income. Net Income Excluding Income Tax Benefit adjusts for the release of a deferred tax asset valuation allowance in the fourth, third and second quarters of 2022. Diluted EPS Excluding Income Tax Benefit is a non-GAAP financial measure calculated by dividing Net Income Excluding Income Tax Benefit by the weighted-average diluted common shares outstanding.

We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company's use of equity. TBV Per Common Share is a non-GAAP financial measure representing common equity reduced by goodwill and intangible assets, divided by ending common shares issued and outstanding.

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For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables beginning on page 14 of this release.

**Safe Harbor Statement**

*Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, 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 statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing customers; our ability to realize the expected benefits from recent initiatives, including our cost reduction plan and the acquisition of a $1 billion loan portfolio; competition; overall economic conditions; the interest rate environment; the regulatory environment; demand for the types of loans facilitated by us; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.*

*\*\*\*\*\**

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**LENDINGCLUB CORPORATION**

**OPERATING HIGHLIGHTS**

(In thousands, except percentages or as noted)

(Unaudited)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **% Change** | **% Change** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** | **Q/Q** | **Y/Y** |
| **Operating Highlights:** | **Operating Highlights:** | **Operating Highlights:** | **Operating Highlights:** | **Operating Highlights:** | **Operating Highlights:** | **Operating Highlights:** | **Operating Highlights:** |
| Non-interest income | $127465 | $181237 | $213832 | $189857 | $179111 | (30)% | (29)% |
| Net interest income | 135243 | 123676 | 116226 | 99680 | 83132 | 9% | 63% |
| Total net revenue | 262708 | 304913 | 330058 | 289537 | 262243 | (14)% | —% |
| Non-interest expense | 180044 | 186219 | 209386 | 191204 | 188220 | (3)% | (4)% |
| Pre-provision net revenue<sup>(1)</sup> | 82664 | 118694 | 120672 | 98333 | 74023 | (30)% | 12% |
| Provision for credit losses | 61512 | 82739 | 70566 | 52509 | 45149 | (26)% | 36% |
| Income before income tax benefit (expense) | 21152 | 35955 | 50106 | 45824 | 28874 | (41)% | (27)% |
| Income tax benefit (expense) | 2439 | 7243 | 131954 | (4988) | 234 | N/M | NM |
| Net income | 23591 | 43198 | 182060 | 40836 | 29108 | N/M | N/M |
| Income tax benefit from release of tax valuation allowance | 3180 | 5015 | 135300 |  |  | N/M | N/M |
| Net income excluding income tax benefit<sup>(1)(2)</sup> | $20411 | $38183 | $46760 | $40836 | $29108 | (47)% | (30)% |
| Basic EPS – common stockholders | $0.22 | $0.41 | $1.77 | $0.40 | $0.29 | (46)% | (24)% |
| Diluted EPS – common stockholders | $0.22 | $0.41 | $1.73 | $0.39 | $0.27 | (46)% | (19)% |
| Diluted EPS excluding income tax benefit<sup>(1)(2)</sup> | $0.19 | $0.36 | $0.45 | $0.39 | $0.27 | (47)% | (30)% |
| **LendingClub Corporation Performance Metrics:** | **LendingClub Corporation Performance Metrics:** | **LendingClub Corporation Performance Metrics:** | **LendingClub Corporation Performance Metrics:** | **LendingClub Corporation Performance Metrics:** | **LendingClub Corporation Performance Metrics:** | **LendingClub Corporation Performance Metrics:** | **LendingClub Corporation Performance Metrics:** |
| Net interest margin | 7.8% | 8.3% | 8.5% | 8.3% | 7.6% |  |  |
| Efficiency ratio<sup>(3)</sup> | 68.5% | 61.1% | 63.4% | 66.0% | 71.8% |  |  |
| Return on average equity (ROE) | 7.2% | 14.2% | 33.8% | 18.7% | 14.1% |  |  |
| Return on average total assets (ROA) | 1.1% | 2.5% | 5.5% | 3.1% | 2.4% |  |  |
| Marketing expense as a % of loan originations | 1.4% | 1.3% | 1.6% | 1.7% | 1.7% |  |  |
| **LendingClub Corporation Capital Metrics:** | **LendingClub Corporation Capital Metrics:** | **LendingClub Corporation Capital Metrics:** | **LendingClub Corporation Capital Metrics:** | **LendingClub Corporation Capital Metrics:** | **LendingClub Corporation Capital Metrics:** | **LendingClub Corporation Capital Metrics:** | **LendingClub Corporation Capital Metrics:** |
| Common Equity Tier 1 Capital Ratio | 15.8% | 18.3% | 20.0% | 20.6% | 21.3% |  |  |
| Tier 1 Leverage Ratio | 14.1% | 15.7% | 16.2% | 15.6% | 16.5% |  |  |
| Book Value per Common Share | $10.93 | $10.67 | $10.41 | $8.68 | $8.41 | 2% | 30% |
| Tangible Book Value per Common Share<sup>(1)</sup> | $10.06 | $9.78 | $9.50 | $7.75 | $7.46 | 3% | 35% |
| **Loan Originations (in millions)**<sup>(4)</sup>**:** |  |  |  |  |  |  |  |
| Total loan originations | $2524 | $3539 | $3840 | $3217 | $3069 | (29)% | (18)% |
| &nbsp;&nbsp;&nbsp;Marketplace loans | $1824 | $2386 | $2819 | $2360 | $2308 | (24)% | (21)% |
| &nbsp;&nbsp;&nbsp;Loan originations held for investment | $701 | $1153 | $1021 | $856 | $761 | (39)% | (8)% |
| Loan originations held for investment as a % of total loan originations | 28% | 33% | 27% | 27% | 25% |  |  |
| **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** | **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** | **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** | **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** | **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** | **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** | **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** | **Servicing Portfolio AUM (in millions)**<sup>(5)</sup>**:** |
| Total servicing portfolio | $16157 | $15929 | $14783 | $13341 | $12463 | 1% | 30% |
| Loans serviced for others | $10819 | $11807 | $11382 | $10475 | $10124 | (8)% | 7% |

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**LENDINGCLUB CORPORATION**

**OPERATING HIGHLIGHTS** (Continued)

(In thousands, except percentages or as noted)

(Unaudited)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **% Change** | **% Change** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** | **Q/Q** | **Y/Y** |
| **Balance Sheet Data:** | **Balance Sheet Data:** | **Balance Sheet Data:** | **Balance Sheet Data:** | **Balance Sheet Data:** | **Balance Sheet Data:** | **Balance Sheet Data:** | **Balance Sheet Data:** |
| Loans and leases held for investment at amortized cost, net, excluding PPP loans | $4638331 | $4414347 | $3692667 | $3049325 | $2486440 | 5% | 87% |
| PPP loans | $66971 | $89379 | $118794 | $184986 | $268297 | (25)% | (75)% |
| Total loans and leases held for investment at amortized cost, net<sup>(6)</sup> | $4705302 | $4503726 | $3811461 | $3234311 | $2754737 | 4% | 71% |
| Loans held for investment at fair value | $925938 | $15057 | $20583 | $15384 | $21 | N/M | N/M |
| Total loans and leases held for investment | $5631240 | $4518783 | $3832044 | $3249695 | $2754758 | 25% | 104% |
| Total assets | $7979747 | $6775074 | $6186765 | $5574425 | $4900319 | 18% | 63% |
| Total deposits | $6392553 | $5123506 | $4527672 | $3977477 | $3135788 | 25% | 104% |
| Total liabilities | $6815453 | $5653664 | $5107648 | $4686991 | $4050077 | 21% | 68% |
| Total equity | $1164294 | $1121410 | $1079117 | $887434 | $850242 | 4% | 37% |

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N/M – Not meaningful

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Represents a non-GAAP financial measure. See "*Reconciliation of GAAP to Non-GAAP Financial Measures.*"

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Excludes fourth, third and second quarter 2022 income tax benefit of $3.2 million, $5.0 million and $135.3 million, respectively, due to the release of a deferred tax asset valuation allowance.

<sup>(3)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Calculated as the ratio of non-interest expense to total net revenue.

<sup>(4)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Includes unsecured personal loans, auto loans, and education and patient finance loans only.

<sup>(5)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and held for investment by the company.

<sup>(6)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Excludes loans held for investment at fair value, which primarily consists of a loan portfolio that was acquired in the fourth quarter of 2022.

The asset quality metrics presented in the following table are for loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** | **As of and for the three months ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| **Asset Quality Metrics:** | **Asset Quality Metrics:** | **Asset Quality Metrics:** | **Asset Quality Metrics:** | **Asset Quality Metrics:** | **Asset Quality Metrics:** |
| Allowance for loan and lease losses to total loans and leases held for investment | 6.5% | 6.3% | 6.0% | 5.5% | 5.0% |
| Allowance for loan and lease losses to total loans and leases held for investment, excluding PPP loans | 6.6% | 6.4% | 6.2% | 5.8% | 5.5% |
| Allowance for loan and lease losses to consumer loans and leases held for investment | 7.3% | 7.2% | 6.9% | 6.6% | 6.4% |
| Allowance for loan and lease losses to commercial loans and leases held for investment | 2.0% | 1.9% | 2.0% | 1.8% | 1.8% |
| Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans | 2.2% | 2.2% | 2.3% | 2.6% | 2.6% |
| Net charge-offs | $37148 | $22658 | $13987 | $8673 | $5636 |
| Net charge-off ratio<sup>(1)</sup> | 3.0% | 2.1% | 1.6% | 1.2% | 0.9% |

---

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period, excluding PPP loans.

------

**LENDINGCLUB CORPORATION**

**LOANS AND LEASES HELD FOR INVESTMENT**

(In thousands)

(Unaudited)

The following table presents loans and leases held for investment at amortized cost and loans held for investment at fair value:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,<br>2022** | **September 30, 2022** | **December 31, 2021** |
| Unsecured personal | $3866373 | $3642254 | $1804578 |
| Residential mortgages | 199601 | 197776 | 151362 |
| Secured consumer | 194634 | 180768 | 65976 |
| &nbsp;&nbsp;&nbsp;Total consumer loans held for investment | 4260608 | 4020798 | 2021916 |
| Equipment finance <sup>(1)</sup> | 160319 | 167447 | 149155 |
| Commercial real estate | 373501 | 372406 | 310399 |
| Commercial and industrial <sup>(2)</sup> | 238726 | 246276 | 417656 |
| &nbsp;&nbsp;&nbsp;Total commercial loans and leases held for investment | 772546 | 786129 | 877210 |
| Total loans and leases held for investment at amortized cost | 5033154 | 4806927 | 2899126 |
| Allowance for loan and lease losses | (327852) | (303201) | (144389) |
| Loans and leases held for investment at amortized cost, net | $4705302 | $4503726 | $2754737 |
| Loans held for investment at fair value | $925938 | $15057 | $21 |
| Total loans and leases held for investment | $5631240 | $4518783 | $2754758 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Comprised of sales-type leases for equipment.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes $67.0 million, $89.4 million, and $268.3 million of Paycheck Protection Program (PPP) loans as of December 31, 2022, September 30, 2022, and December 31, 2021, respectively. Such loans are guaranteed by the Small Business Association and, therefore, the company determined no allowance for expected credit losses is required on these loans.

**LENDINGCLUB CORPORATION**

**ALLOWANCE FOR LOAN AND LEASE LOSSES**

(In thousands)

(Unaudited)

The following tables present the allowance for loan and lease losses on loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **September 30, 2022** |
| | **Consumer** | **Commercial** | **Total** | **Consumer** | **Commercial** | **Total** |
| Allowance for loan and lease losses, beginning of period | $288138 | $15063 | $303201 | $228184 | $15076 | $243260 |
| Credit loss expense for loans and leases held for investment | 61392 | 407 | 61799 | 81935 | 664 | 82599 |
| Charge-offs | (38579) | (225) | (38804) | (22944) | (784) | (23728) |
| Recoveries | 1538 | 118 | 1656 | 963 | 107 | 1070 |
| Allowance for loan and lease losses, end of period | $312489 | $15363 | $327852 | $288138 | $15063 | $303201 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | **Consumer** | **Commercial** | **Total** |
| Allowance for loan and lease losses, beginning of period | $88631 | $16105 | $104736 |
| Credit loss expense for loans and leases held for investment | 45595 | (306) | 45289 |
| Charge-offs | (5557) | (313) | (5870) |
| Recoveries | 143 | 91 | 234 |
| Allowance for loan and lease losses, end of period | $128812 | $15577 | $144389 |

---

------

**LENDINGCLUB CORPORATION**

**PAST DUE LOANS AND LEASES HELD FOR INVESTMENT**

(In thousands)

(Unaudited)

The following tables present past due loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2022** | **30-59<br>Days** | **60-89<br>Days** | **90 or More<br>Days** | **Total Days Past Due** |
| Unsecured personal | $21016 | $16418 | $16255 | $53689 |
| Residential mortgages |  | 254 | 331 | 585 |
| Secured consumer | 1720 | 382 | 188 | 2290 |
| Total consumer loans held for investment | $22736 | $17054 | $16774 | $56564 |
| Equipment finance | $3172 | $— | $859 | $4031 |
| Commercial real estate |  | 102 |  | 102 |
| Commercial and industrial <sup>(1)</sup> |  |  | 1643 | 1643 |
| Total commercial loans and leases held for investment <sup>(1)</sup> | $3172 | $102 | $2502 | $5776 |
| Total loans and leases held for investment at amortized cost <sup>(1)</sup> | $25908 | $17156 | $19276 | $62340 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **September 30, 2022** | **30-59<br>Days** | **60-89<br>Days** | **90 or More<br>Days** | **Total Days Past Due** |
| Unsecured personal | $14799 | $12463 | $10601 | $37863 |
| Residential mortgages |  |  | 337 | 337 |
| Secured consumer | 985 | 504 | 162 | 1651 |
| Total consumer loans held for investment | $15784 | $12967 | $11100 | $39851 |
| Equipment finance | $— | $— | $— | $— |
| Commercial real estate |  | 101 | 452 | 553 |
| Commercial and industrial <sup>(1)</sup> |  |  | 1650 | 1650 |
| Total commercial loans and leases held for investment <sup>(1)</sup> | $— | $101 | $2102 | $2203 |
| Total loans and leases held for investment at amortized cost <sup>(1)</sup> | $15784 | $13068 | $13202 | $42054 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2021** | **30-59<br>Days** | **60-89<br>Days** | **90 or More<br>Days** | **Total Days Past Due** |
| Unsecured personal | $3624 | $2600 | $1676 | $7900 |
| Residential mortgages | 142 | 92 | 1069 | 1303 |
| Secured consumer | 171 | 53 | 3011 | 3235 |
| Total consumer loans held for investment | $3937 | $2745 | $5756 | $12438 |
| Equipment finance | $— | $— | $— | $— |
| Commercial real estate | 104 |  | 609 | 713 |
| Commercial and industrial <sup>(1)</sup> |  |  | 1410 | 1410 |
| Total commercial loans and leases held for investment <sup>(1)</sup> | $104 | $— | $2019 | $2123 |
| Total loans and leases held for investment at amortized cost <sup>(1)</sup> | $4041 | $2745 | $7775 | $14561 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Past due PPP loans are excluded from the tables.

------

**LENDINGCLUB CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

(In thousands, except share and per share data)

(Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change (%)** | **Change (%)** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **December 31,<br>2021** | **Q4 2022<br>vs <br>Q4 2021** | **Q4 2022 <br>vs <br>Q3 2022** |
| **Non-interest income:** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Origination fees | $100692 | $127142 | $118353 | (15)% | (21)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Servicing fees | 20169 | 23760 | 20940 | (4)% | (15)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sales of loans | 18352 | 23554 | 20569 | (11)% | (22)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net fair value adjustments | (15774) | (619) | 10700 | (247)% | N/M |
| &nbsp;&nbsp;Marketplace revenue | 123439 | 173837 | 170562 | (28)% | (29)% |
| &nbsp;&nbsp;Other non-interest income | 4026 | 7400 | 8549 | (53)% | (46)% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-interest income** | 127465 | 181237 | 179111 | (29)% | (30)% |
| Total interest income | 173999 | 143220 | 97655 | 78% | 21% |
| Total interest expense | 38756 | 19544 | 14523 | 167% | 98% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 135243 | 123676 | 83132 | 63% | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total net revenue** | 262708 | 304913 | 262243 | —% | (14)% |
| **Provision for credit losses** | 61512 | 82739 | 45149 | 36% | (26)% |
| **Non-interest expense:** |  |  |  |  |  |
| &nbsp;&nbsp;Compensation and benefits | 87768 | 84916 | 78741 | 11% | 3% |
| &nbsp;&nbsp;Marketing | 35139 | 46031 | 50708 | (31)% | (24)% |
| &nbsp;&nbsp;Equipment and software | 13200 | 12491 | 12019 | 10% | 6% |
| &nbsp;&nbsp;Occupancy | 4698 | 5051 | 4706 | —% | (7)% |
| &nbsp;&nbsp;Depreciation and amortization | 11554 | 10681 | 10462 | 10% | 8% |
| &nbsp;&nbsp;Professional services | 10029 | 11943 | 12699 | (21)% | (16)% |
| &nbsp;&nbsp;Other non-interest expense | 17656 | 15106 | 18885 | (7)% | 17% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-interest expense** | 180044 | 186219 | 188220 | (4)% | (3)% |
| **Income before income tax benefit** | 21152 | 35955 | 28874 | (27)% | (41)% |
| Income tax benefit | 2439 | 7243 | 234 | N/M | N/M |
| **Net income** | $23591 | $43198 | $29108 | (19)% | (45)% |
| **Net income per share:**  |  |  |  |  |  |
| Net income per share attributable to common stockholders – Basic | $0.22 | $0.41 | $0.29 | (24)% | (46)% |
| Net income per share attributable to common stockholders – Diluted | $0.22 | $0.41 | $0.27 | (19)% | (46)% |
| Weighted-average common shares – Basic | 105650177 | 104215594 | 100320691 | 5% | 1% |
| Weighted-average common shares – Diluted | 105984612 | 105853938 | 108096823 | (2)% | —% |

---

N/M – Not meaningful

------

**LENDINGCLUB CORPORATION**

**CONSOLIDATED STATEMENTS OF INCOME**

(In thousands, except share and per share data)

(Unaudited)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | |
| | **2022** | **2021** |<br>**Change (%)** |
| **Non-interest income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Origination fees | $499179 | $416839 | 20% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Servicing fees | 80609 | 87639 | (8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sales of loans | 95335 | 70116 | 36% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net fair value adjustments | 8503 | 3986 | 113% |
| &nbsp;&nbsp;Marketplace revenue | 683626 | 578580 | 18% |
| &nbsp;&nbsp;Other non-interest income | 28765 | 27219 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-interest income** | 712391 | 605799 | 18% |
| Total interest income | 557340 | 292832 | 90% |
| Total interest expense | 82515 | 80001 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 474825 | 212831 | 123% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total net revenue** | 1187216 | 818630 | 45% |
| **Provision for credit losses** | 267326 | 138800 | 93% |
| **Non-interest expense:** |  |  |  |
| &nbsp;&nbsp;Compensation and benefits | 339397 | 288390 | 18% |
| &nbsp;&nbsp;Marketing | 197747 | 156142 | 27% |
| &nbsp;&nbsp;Equipment and software | 49198 | 39490 | 25% |
| &nbsp;&nbsp;Occupancy | 21977 | 24249 | (9)% |
| &nbsp;&nbsp;Depreciation and amortization | 43831 | 44285 | (1)% |
| &nbsp;&nbsp;Professional services | 50516 | 47572 | 6% |
| &nbsp;&nbsp;Other non-interest expense | 64187 | 61258 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-interest expense** | 766853 | 661386 | 16% |
| **Income before income tax benefit** | 153037 | 18444 | 730% |
| Income tax benefit | 136648 | 136 | N/M |
| **Net income** | $289685 | $18580 | N/M |
| **Net income per share:**  |  |  |  |
| Net income per share attributable to common stockholders – Basic | $2.80 | $0.19 | N/M |
| Net income per share attributable to common stockholders – Diluted | $2.79 | $0.18 | N/M |
| Weighted-average common shares – Basic | 103547305 | 97486754 | 6% |
| Weighted-average common shares – Diluted | 104001288 | 102147353 | 2% |

---

N/M – Not meaningful

------

**LENDINGCLUB CORPORATION**

**NET INTEREST INCOME**

(In thousands, except percentages or as noted)

(Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> |
| | **Three Months Ended<br>December 31, 2022** | **Three Months Ended<br>December 31, 2022** | **Three Months Ended<br>December 31, 2022** | **Three Months Ended<br>September 30, 2022** | **Three Months Ended<br>September 30, 2022** | **Three Months Ended<br>September 30, 2022** | **Three Months Ended<br>December 31, 2021** | **Three Months Ended<br>December 31, 2021** | **Three Months Ended<br>December 31, 2021** |
| | **Average<br>Balance** | **Interest Income/<br>Expense** | **Average Yield/<br>Rate** | **Average<br>Balance** | **Interest Income/<br>Expense** | **Average Yield/<br>Rate** | **Average<br>Balance** | **Interest Income/<br>Expense** | **Average Yield/<br>Rate** |
| **Interest-earning assets** <sup>(2)</sup> | | | | | | | | | |
| Cash, cash equivalents, restricted cash and other | $1139887 | $10595 | 3.72% | $893655 | $5017 | 2.25% | $710472 | $469 | 0.26% |
| Securities available for sale at fair value | 349512 | 3359 | 3.84% | 396556 | 3820 | 3.85% | 265140 | 3071 | 4.63% |
| Loans held for sale | 114851 | 5724 | 19.93% | 126487 | 5879 | 18.59% | 184708 | 7153 | 15.49% |
| Loans and leases held for investment: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unsecured personal loans | 3825808 | 125872 | 13.16% | 3268649 | 110446 | 13.52% | 1542285 | 60384 | 15.66% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and other consumer loans | 1164326 | 15197 | 5.22% | 1135474 | 13582 | 4.78% | 1381041 | 16580 | 4.80% |
| Loans and leases held for investment at amortized cost | 4990134 | 141069 | 11.31% | 4404123 | 124028 | 11.26% | 2923326 | 76964 | 10.53% |
| Loans held for investment at fair value <sup>(3)</sup> | 308570 | 10862 | 14.08% | 17763 | 791 | 17.83% | 24184 | 762 | 12.60% |
| Total loans and leases held for investment | 5298704 | 151931 | 11.47% | 4421886 | 124819 | 11.29% | 2947510 | 77726 | 10.55% |
| Retail and certificate loans held for investment at fair value | 66469 | 2390 | 14.38% | 104010 | 3685 | 14.17% | 262548 | 9236 | 14.07% |
| **Total interest-earning assets** | 6969423 | 173999 | 9.99% | 5942594 | 143220 | 9.64% | 4370378 | 97655 | 8.94% |
| Cash and due from banks and restricted cash | 64907 |  |  | 58411 |  |  | 73258 |  |  |
| Allowance for loan and lease losses | (314861) |  |  | (254849) |  |  | (125120) |  |  |
| Other non-interest earning assets | 613664 |  |  | 597169 |  |  | 465010 |  |  |
| **Total assets** | $7333133 |  |  | $6343325 |  |  | $4783526 |  |  |
| **Interest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Checking and money market accounts | $1929260 | $7500 | 1.54% | $2192904 | $4575 | 0.83% | $2146687 | $1716 | 0.32% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts and certificates of deposit | 3576205 | 28251 | 3.13% | 2260170 | 10609 | 1.86% | 580361 | 900 | 0.62% |
| Interest-bearing deposits | 5505465 | 35751 | 2.58% | 4453074 | 15184 | 1.35% | 2727048 | 2616 | 0.38% |
| Short-term borrowings | 3875 | 63 | 6.52% | 6848 | 87 | 5.09% | 36823 | 561 | 6.08% |
| Advances from PPPLF | 77199 | 69 | 0.36% | 104897 | 93 | 0.36% | 342335 | 307 | 0.36% |
| Retail notes, certificates and secured borrowings | 66469 | 2390 | 14.38% | 104010 | 3685 | 14.17% | 262548 | 9236 | 14.07% |
| Structured Program borrowings | 9956 | 159 | 6.39% | 13859 | 225 | 6.50% | 77354 | 1642 | 8.49% |
| Other long-term debt | 14804 | 324 | 8.76% | 15300 | 270 | 7.04% | 15514 | 161 | 4.15% |
| **Total interest-bearing liabilities** | 5677768 | 38756 | 2.71% | 4697988 | 19544 | 1.65% | 3461622 | 14523 | 1.68% |

---

------

**LENDINGCLUB CORPORATION**

**NET INTEREST INCOME** (Continued)

(In thousands, except percentages or as noted)

(Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> | **Consolidated LendingClub Corporation** <sup>(1)</sup> |
| | **Three Months Ended<br>December 31, 2022** | **Three Months Ended<br>December 31, 2022** | **Three Months Ended<br>December 31, 2022** | **Three Months Ended<br>September 30, 2022** | **Three Months Ended<br>September 30, 2022** | **Three Months Ended<br>September 30, 2022** | **Three Months Ended<br>December 31, 2021** | **Three Months Ended<br>December 31, 2021** | **Three Months Ended<br>December 31, 2021** |
| | **Average<br>Balance** | **Interest Income/<br>Expense** | **Average Yield/<br>Rate** | **Average<br>Balance** | **Interest Income/<br>Expense** | **Average Yield/<br>Rate** | **Average<br>Balance** | **Interest Income/<br>Expense** | **Average Yield/<br>Rate** |
| Non-interest bearing deposits | 251686 |  |  | 284134 |  |  | 211692 |  |  |
| Other liabilities | 266558 |  |  | 250086 |  |  | 282339 |  |  |
| **Total liabilities** | $6196012 |  |  | $5232208 |  |  | $3955653 |  |  |
| **Total equity** | $1137121 |  |  | $1111117 |  |  | $827873 |  |  |
| **Total liabilities and equity** | $7333133 |  |  | $6343325 |  |  | $4783526 |  |  |
| **Interest rate spread** |  |  | 7.28% |  |  | 7.99% |  |  | 7.26% |
| **Net interest income and net interest margin** |  | $135243 | 7.76% |  | $123676 | 8.32% |  | $83132 | 7.61% |

---

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Consolidated presentation reflects intercompany eliminations.

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans and any related income are included in their respective loan categories.

<sup>(3)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Fourth quarter 2022 average balance includes the acquisition of a $1.05 billion outstanding principal loan portfolio in December 2022.

------

**LENDINGCLUB CORPORATION**

**CONSOLIDATED BALANCE SHEETS** 

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | **December 31, 2021** |
| **Assets** | | |
| &nbsp;&nbsp;Cash and due from banks | $23125 | $35670 |
| &nbsp;&nbsp;Interest-bearing deposits in banks | 1033905 | 651456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 1057030 | 687126 |
| &nbsp;&nbsp;Restricted cash | 67454 | 76460 |
| &nbsp;&nbsp;Securities available for sale at fair value ($399,668 and $256,170 at amortized cost, respectively) | 345702 | 263530 |
| &nbsp;&nbsp;Loans held for sale (includes $110,400 and $142,370 at fair value, respectively) | 110400 | 391248 |
| &nbsp;&nbsp;Loans and leases held for investment | 5033154 | 2899126 |
| &nbsp;&nbsp;Allowance for loan and lease losses | (327852) | (144389) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and leases held for investment, net | 4705302 | 2754737 |
| &nbsp;&nbsp;Loans held for investment at fair value | 925938 | 21240 |
| &nbsp;&nbsp;Retail and certificate loans held for investment at fair value | 55425 | 229719 |
| &nbsp;&nbsp;Property, equipment and software, net | 136473 | 97996 |
| &nbsp;&nbsp;Goodwill | 75717 | 75717 |
| &nbsp;&nbsp;Other assets | 500306 | 302546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $7979747 | $4900319 |
| **Liabilities and Equity** |  |  |
| &nbsp;&nbsp;Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | $6158560 | $2919203 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | 233993 | 216585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 6392553 | 3135788 |
| &nbsp;&nbsp;Short-term borrowings | 2619 | 27780 |
| &nbsp;&nbsp;Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 64154 | 271933 |
| &nbsp;&nbsp;Retail notes, certificates and secured borrowings at fair value | 55425 | 229719 |
| &nbsp;&nbsp;Payable on Structured Program borrowings | 8085 | 65451 |
| &nbsp;&nbsp;Other long-term debt |  | 15455 |
| &nbsp;&nbsp;Other liabilities | 292617 | 303951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 6815453 | 4050077 |
| Equity |  |  |
| &nbsp;&nbsp;Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; — shares issued and outstanding |  |  |
| &nbsp;&nbsp;Common stock, $0.01 par value; 180,000,000 shares authorized; 106,546,995 and 101,043,924 shares issued and outstanding, respectively | 1065 | 1010 |
| &nbsp;&nbsp;Additional paid-in capital | 1628590 | 1559616 |
| &nbsp;&nbsp;Accumulated deficit | (427745) | (717430) |
| &nbsp;&nbsp;Accumulated other comprehensive income (loss) | (37616) | 7046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 1164294 | 850242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $7979747 | $4900319 |

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**LENDINGCLUB CORPORATION**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES**

(In thousands, except share and per share data)

(Unaudited)

**<u>Pre-Provision Net Revenue</u>**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the three months ended** | | | **For the year ended** | **For the year ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2022** | **December 31,<br>2021** |
| GAAP Net income | $23591 | $43198 | $182060 | $40836 | $29108 | $289685 | $18580 |
| Less: Provision for credit losses | (61512) | (82739) | (70566) | (52509) | (45149) | (267326) | (138800) |
| Less: Income tax benefit (expense) | 2439 | 7243 | 131954 | (4988) | 234 | 136648 | 136 |
| Pre-provision net revenue | $82664 | $118694 | $120672 | $98333 | $74023 | $420363 | $157244 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the three months ended** | | | **For the year ended** | **For the year ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2022** | **December 31,<br>2021** |
| Non-interest income | $127465 | $181237 | $213832 | $189857 | $179111 | $712391 | $605799 |
| Net interest income | 135243 | 123676 | 116226 | 99680 | 83132 | 474825 | 212831 |
| Total net revenue | 262708 | 304913 | 330058 | 289537 | 262243 | 1187216 | 818630 |
| Non-interest expense | (180044) | (186219) | (209386) | (191204) | (188220) | (766853) | (661386) |
| Pre-provision net revenue | 82664 | 118694 | 120672 | 98333 | 74023 | 420363 | 157244 |
| Provision for credit losses | (61512) | (82739) | (70566) | (52509) | (45149) | (267326) | (138800) |
| Income before income tax benefit | 21152 | 35955 | 50106 | 45824 | 28874 | 153037 | 18444 |
| Income tax benefit | 2439 | 7243 | 131954 | (4988) | 234 | 136648 | 136 |
| GAAP Net income | $23591 | $43198 | $182060 | $40836 | $29108 | $289685 | $18580 |

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**<u>Net Income Excluding Income Tax Benefit and Diluted EPS Excluding Income Tax Benefit</u>**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **For the three months ended** | **For the three months ended** | **For the three months ended** | **For the <br>year ended** |
| | | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **December 31,<br>2022** |
| GAAP Net income | GAAP Net income | $23591 | $43198 | $182060 | $289685 |
| Less: Income tax benefit from release of tax valuation allowance | Less: Income tax benefit from release of tax valuation allowance | 3180 | 5015 | 135300 | 143495 |
| Net income excluding income tax benefit | Net income excluding income tax benefit | $20411 | $38183 | $46760 | $146190 |
| GAAP Diluted EPS – common stockholders | GAAP Diluted EPS – common stockholders | $0.22 | $0.41 | $1.73 | $2.79 |
| (A) | Income tax benefit from release of tax valuation allowance | $3180 | $5015 | $135300 | $143495 |
| (B) | Weighted-average common shares – Diluted | 105984612 | 105853938 | 105042626 | 104001288 |
| (A/B) | Diluted EPS impact of income tax benefit | $0.03 | $0.05 | $1.29 | $1.38 |
| Diluted EPS excluding income tax benefit | Diluted EPS excluding income tax benefit | $0.19 | $0.36 | $0.44 | $1.41 |

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**LENDINGCLUB CORPORATION**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES** (Continued)

(In thousands, except share and per share data)

(Unaudited)

**<u>Tangible Book Value Per Common Share</u>**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| GAAP common equity | $1164294 | $1121410 | $1079117 | $887434 | $850242 |
| &nbsp;&nbsp;Less: Goodwill | (75717) | (75717) | (75717) | (75717) | (75717) |
| &nbsp;&nbsp;Less: Intangible assets | (16334) | (17512) | (18690) | (19886) | (21181) |
| **Tangible common equity** | $1072243 | $1028181 | $984710 | $791831 | $753344 |
| **<u>Book value per common share</u>** |  |  |  |  |  |
| GAAP common equity | $1164294 | $1121410 | $1079117 | $887434 | $850242 |
| Common shares issued and outstanding | 106546995 | 105088761 | 103630776 | 102194037 | 101043924 |
| **Book value per common share** | $10.93 | $10.67 | $10.41 | $8.68 | $8.41 |
| **<u>Tangible book value per common share</u>** |  |  |  |  |  |
| Tangible common equity | $1072243 | $1028181 | $984710 | $791831 | $753344 |
| Common shares issued and outstanding | 106546995 | 105088761 | 103630776 | 102194037 | 101043924 |
| **Tangible book value per common share** | $10.06 | $9.78 | $9.50 | $7.75 | $7.46 |

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