LendingClub Reports Second Quarter 2025 Results
Grew Originations +32%, Revenue +33%, and Net Income +156% Compared to Prior Year
Revenue growth combined with expense discipline delivers 11% ROE and 12% ROTCE
Announced up to $3.4 billion loan funding partnership extension with Blue Owl
SAN FRANCISCO, July 29, 2025 /PRNewswire/ -- LendingClub Corporation (NYSE:LC) today announced financial results for the second quarter ended June 30, 2025.
"We had an exceptional quarter with year-over-year originations and revenue growth of 32% and 33%, respectively. Strong revenue growth combined with credit outperformance resulted in $38 million of net income, delivering double digit ROTCE in excess of our target and ahead of schedule," said Scott Sanborn, LendingClub CEO. "We also announced a long-term loan sales partnership extension and launched another new product with our innovative LevelUp Checking account. I'm energized by the results across the business and look forward to building on the momentum over the second half of the year."
Second Quarter 2025 Results
Highlights:
Achieved $2.4 billion in origination volume, up 32% compared to the prior year.
Continued to deliver credit outperformance versus competitor set, with +40% better performance.
Extended funding partnership with Blue Owl for structured certificates, totaling up to $3.4 billion over two years.
Closed first transaction with funds and accounts managed by BlackRock, leveraging our Fitch-rated Structured Certificates program.
Launched LevelUp Checking, the first product in market to offer cash back for on-time loan payments.
Balance Sheet:
Total assets of $10.8 billion increased 12% compared to $9.6 billion in the prior year, driven primarily by the success of the Structured Certificates program as well as loan growth.
Deposits of $9.1 billion increased 13% compared to $8.1 billion in the prior year, driven by the continued success of our savings offerings.
86% of total deposits are FDIC-insured.
Robust available liquidity of $3.8 billion.
Strong capital position with a consolidated Tier 1 leverage ratio of 12.2% and a CET1 capital ratio of 17.5%.
Book value per common share was $12.25, compared to $11.52 in the prior year.
Tangible book value per common share was $11.53, compared to $10.75 in the prior year.
Financial Performance:
Loan originations grew 32% to $2.4 billion, compared to $1.8 billion in the prior year, driven by the successful execution of product and marketing initiatives.
Total net revenue increased 33% to $248.4 million, compared to $187.2 million in the prior year, driven by higher marketplace sales and loan pricing, credit outperformance, and higher net interest income on a larger balance sheet with lower deposit funding costs.
Net interest margin increased to 6.14%, compared to 5.75% in the prior year.
Provision for credit losses of $39.7 million, compared to $35.6 million in the prior year, primarily driven by increased held-for-investment loan retention.
Improved net charge-offs in the held-for-investment at amortized cost loan portfolio to $31.8 million, compared to $66.8 million in the prior year.
Net income of $38.2 million, compared to $14.9 million in the prior year.
Diluted EPS of $0.33 compared to $0.13 in the prior year.
Return on Equity (ROE) of 11.1% with a Return on Tangible Common Equity (ROTCE) of 11.8%.
Pre-Provision Net Revenue (PPNR) increased 70% to $93.7 million, compared to $55.0 million in the prior year.
Three Months Ended
($ in millions, except per share amounts)
June 30,2025
March 31,2025
June 30,2024
Total net revenue
$ 248.4
$ 217.7
$ 187.2
Non-interest expense
154.7
143.9
132.3
Pre-provision net revenue (1)
93.7
73.8
55.0
Provision for credit losses
39.7
58.1
35.6
Income before income tax expense
54.0
15.7
19.4
Income tax expense
(15.8)
(4.0)
(4.5)
Net income
$ 38.2
$ 11.7
$ 14.9
Diluted EPS
$ 0.33
$ 0.10
$ 0.13
(1)
See page 3 of this release for additional information on our use of non-GAAP financial measures.
For a calculation of Pre-Provision Net Revenue, Tangible Book Value Per Common Share, and Return on Tangible Common Equity, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.
Financial Outlook
Third Quarter 2025
Loan originations
$2.5B to $2.6B
Pre-provision net revenue (PPNR)
$90M to $100M
Return on Tangible Common Equity (ROTCE)
10% to 11.5%
About LendingClub
LendingClub is reimagining what a bank can be by building our business around a simple belief: when our members win, we win. Leveraging innovative technology and engaging mobile-first experiences, our integrated suite of financial products helps people keep more of what they earn and earn more on what they save. Our 5+ million members love us for providing quick and easy access to affordable credit and rewarding their smart financial choices, like making on-time payments, saving regularly, and taking control of debt.
Getting credit right is a key driver of our success. Our AI-powered underwriting models are informed by over 150 billion cells of proprietary data, derived from tens of millions of repayment events across economic cycles. Our leading credit expertise combined with our resilient bank foundation, capital-light loan marketplace, decades of lending experience, and talented team have enabled us to deliver lasting value to members, loan investors, and stockholders alike. And we're just getting started.
LendingClub Corporation (NYSE:LC) is the parent company and operator of LendingClub Bank, National Association, Member FDIC. For more information about LendingClub, visit https://www.lendingclub.com
Conference Call and Webcast Information
The LendingClub second quarter 2025 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, July 29, 2025. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (404) 975-4839, or outside the U.S. +1 (833) 470-1428, with Access Code 667676, 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 http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until August 5, 2025, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 516031. LendingClub has used, and intends to use, its investor relations website, X (formerly Twitter) handles (@LendingClub and @LendingClubIR) 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.
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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 (PPNR), Tangible Book Value (TBV) Per Common Share, and Return on Tangible Common Equity (ROTCE). 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 PPNR is an important measure because it reflects the financial performance of our business operations. PPNR is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income.
We believe 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 tangible common equity (common equity reduced by goodwill and customer relationship intangible assets), divided by the ending number of common shares issued and outstanding.
We believe ROTCE is an important measure because it reflects the company's ability to generate income from its core assets. ROTCE is a non-GAAP financial measure calculated by dividing annualized net income by the average tangible common equity for the applicable period.
For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on pages 13 and 14 of this release.
We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue and Return on Tangible Common Equity to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense and goodwill, respectively, with reasonable certainty without unreasonable effort.
Safe Harbor Statement
Some of the statements above, including statements regarding long-term loan funding and 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 loan performance, our ability to continue to attract and retain new and existing borrowers and marketplace investors (including retaining long-term investors through the duration of their expected partnership and achieving the anticipated level of loan or Structured Certificates program purchases); competition; overall economic conditions; the interest rate environment; the regulatory environment; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, 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.
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended
% Change
June 30,2025
March 31,2025
December 31,
2024
September 30,
2024
June 30,2024
Q/Q
Y/Y
Operating Highlights:
Non-interest income
$ 94,186
$ 67,754
$ 74,817
$ 61,640
$ 58,713
39 %
60 %
Net interest income
154,249
149,957
142,384
140,241
128,528
3 %
20 %
Total net revenue
248,435
217,711
217,201
201,881
187,241
14 %
33 %
Non-interest expense
154,718
143,867
142,855
136,332
132,258
8 %
17 %
Pre-provision net revenue(1)
93,717
73,844
74,346
65,549
54,983
27 %
70 %
Provision for credit losses
39,733
58,149
63,238
47,541
35,561
(32) %
12 %
Income before income tax expense
53,984
15,695
11,108
18,008
19,422
244 %
178 %
Income tax expense
(15,806)
(4,024)
(1,388)
(3,551)
(4,519)
293 %
250 %
Net income
$ 38,178
$ 11,671
$ 9,720
$ 14,457
$ 14,903
227 %
156 %
Basic EPS
$ 0.33
$ 0.10
$ 0.09
$ 0.13
$ 0.13
230 %
154 %
Diluted EPS
$ 0.33
$ 0.10
$ 0.08
$ 0.13
$ 0.13
230 %
154 %
LendingClub Corporation Performance Metrics:
Net interest margin
6.14 %
5.97 %
5.42 %
5.63 %
5.75 %
Efficiency ratio(2)
62.3 %
66.1 %
65.8 %
67.5 %
70.6 %
Return on average equity (ROE)(3)
11.1 %
3.5 %
2.9 %
4.4 %
4.7 %
Return on tangible common equity (ROTCE)(1)(4)
11.8 %
3.7 %
3.1 %
4.7 %
5.1 %
Return on average total assets (ROA)(5)
1.5 %
0.4 %
0.4 %
0.6 %
0.6 %
Marketing expense as a % of loan originations
1.40 %
1.47 %
1.27 %
1.37 %
1.47 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio
17.5 %
17.8 %
17.3 %
15.9 %
17.9 %
Tier 1 leverage ratio
12.2 %
11.7 %
11.0 %
11.3 %
12.1 %
Book value per common share
$ 12.25
$ 11.95
$ 11.83
$ 11.95
$ 11.52
3 %
6 %
Tangible book value per common share(1)
$ 11.53
$ 11.22
$ 11.09
$ 11.19
$ 10.75
3 %
7 %
Loan Originations (in millions)(6):
Total loan originations
$ 2,391
$ 1,989
$ 1,846
$ 1,913
$ 1,813
20 %
32 %
Marketplace loans
$ 1,702
$ 1,314
$ 1,241
$ 1,403
$ 1,477
30 %
15 %
Loan originations held for investment
$ 689
$ 675
$ 605
$ 510
$ 336
2 %
105 %
Loan originations held for investment as a % of total loan originations
29 %
34 %
33 %
27 %
19 %
Servicing Portfolio AUM (in millions)(7):
Total servicing portfolio
$ 12,524
$ 12,241
$ 12,371
$ 12,674
$ 12,999
2 %
(4) %
Loans serviced for others
$ 7,185
$ 7,130
$ 7,207
$ 7,028
$ 8,337
1 %
(14) %
(1)
Represents a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures."
(2)
Calculated as the ratio of non-interest expense to total net revenue.
(3)
Calculated as annualized net income divided by average equity for the period presented.
(4)
Calculated as annualized net income divided by average tangible common equity for the period presented.
(5)
Calculated as annualized net income divided by average total assets for the period presented.
(6)
Includes unsecured personal loans and auto loans only.
(7)
Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and retained by the Company.
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
As of the three months ended
% Change
June 30,2025
March 31,2025
December 31,
2024
September 30,
2024
June 30,2024
Q/Q
Y/Y
Balance Sheet Data:
Securities available for sale
$ 3,527,142
$ 3,426,571
$ 3,452,648
$ 3,311,418
$ 2,814,383
3 %
25 %
Loans held for sale at fair value
$ 1,008,168
$ 703,378
$ 636,352
$ 849,967
$ 791,059
43 %
27 %
Loans and leases held for investment at amortized cost
$ 4,386,321
$ 4,215,449
$ 4,125,818
$ 4,108,329
$ 4,228,391
4 %
4 %
Gross allowance for loan and lease losses (1)
$ (293,707)
$ (288,308)
$ (285,686)
$ (274,538)
$ (285,368)
2 %
3 %
Recovery asset value (2)
$ 40,718
$ 44,115
$ 48,952
$ 53,974
$ 56,459
(8) %
(28) %
Allowance for loan and lease losses
$ (252,989)
$ (244,193)
$ (236,734)
$ (220,564)
$ (228,909)
4 %
11 %
Loans and leases held for investment at amortized cost, net
$ 4,133,332
$ 3,971,256
$ 3,889,084
$ 3,887,765
$ 3,999,482
4 %
3 %
Loans held for investment at fair value
$ 631,736
$ 818,882
$ 1,027,798
$ 1,287,495
$ 339,222
(23) %
86 %
Total loans and leases held for investment
$ 4,765,068
$ 4,790,138
$ 4,916,882
$ 5,175,260
$ 4,338,704
(1) %
10 %
