LendingClub Reports First Quarter 2026 Results
LendingClub Reports First Quarter 2026 Results
April 27, 2026
Strong Performance Across Key Metrics
Delivered Record $67.3 Million Pre-Tax Income, 13.7% ROE, and 14.5% ROTCE
Increased Originations +31% and Delivered Diluted EPS of $0.44, +340%
Rebranding to Happen Bank in Summer 2026
SAN FRANCISCO, April 27, 2026 /PRNewswire/ -- LendingClub Corporation (NYSE: LC) today announced financial results for the first quarter ended March 31, 2026.
"We're starting 2026 with exceptional momentum, delivering 31% year-over-year growth in originations while achieving record pre-tax earnings of $67 million and ROTCE of 14.5%," said Scott Sanborn, LendingClub CEO. "At the same time, we advanced key strategic priorities, including the upcoming rebrand to Happen Bank, expanding into the $500 billion home improvement loan category, and maintaining our credit outperformance. Our focused, proven strategy is successfully attracting and retaining high-quality members as we continue generating consistent, durable returns."
First Quarter 2026 Results
Highlights:
- Announced new brand, Happen Bank, launching summer 2026, reflecting both our expanded banking capabilities and our core mission: to clear the way for people going places.
- Began underwriting and originating home improvement loans in April, leveraging distinct advantages over incumbents and opening meaningful opportunity for growth.
- Achieved $2.7 billion in origination volume, up 31% compared to the prior year, driven in part by the successful execution of product and marketing initiatives.
- Diluted EPS of $0.44, more than quadrupled compared to the prior year.
- Continued credit outperformance vs. competitor set, with over 40% lower delinquencies.
- AI-powered automation and agent support tools led to record personal loans operations production efficiency in the first quarter and a record-high >90% automation rate for issued loans.
- Executed $26 million of the $100 million Stock Repurchase and Acquisition Program, with cumulative utilization through March totaling $38 million.
Balance Sheet:
- Total assets of $11.9 billion, up 14% year-over-year, primarily due to growth in loans and securities.
- Deposits of $10.2 billion, up 14% year-over-year, with 88% of deposits FDIC-insured.
- Robust available liquidity of $3.7 billion.
- Strong capital position with a consolidated Tier 1 leverage ratio of 11.9% and a CET1 capital ratio of 17.0%.
Financial Performance:
- Loan originations grew 31% to $2.7 billion, compared to $2.0 billion in the prior year, driven by the successful execution of product and marketing initiatives.
- Total net revenue increased 16% to $252.3 million, compared to $217.7 million in the prior year, driven by higher loan sales and loan sale pricing and higher net interest margin on a larger balance sheet.
- Net interest margin expanded to 6.28%, compared to 5.97% in the prior year, driven primarily by improved deposit funding costs.
- Provision for credit losses of $0.4 million, compared to $58.1 million in the prior year, due to strong credit performance and the 2026 election of fair value option (FVO) accounting for all new originations.
- Net charge-offs on total loans and leases held for investment improved to $42.5 million, compared to $76.1 million in the same quarter in the prior year, supported by strong credit performance.
Net income and Diluted EPS more than quadrupled to $51.6 million and $0.44, respectively, compared to $11.7 million and $0.10 in the prior year, respectively.
Profit margin (pre-tax) of 26.7%, compared to 7.2% in the prior year.
Return on Equity (ROE) of 13.7% with a Return on Tangible Common Equity (ROTCE) of 14.5%.
Summary Financial Highlights:
| Three Months Ended | |||
|---|---|---|---|
| ($ in millions, except per share amounts) | March 31,2026 | December 31,2025 | March 31,2025 |
| Total net revenue | 252.3 | 266.5 | 217.7 |
| Provision for credit losses | 0.4 | 47.2 | 58.1 |
| Non-interest expense | 184.5 | 169.3 | 143.9 |
| Income before income tax expense | 67.3 | 50.0 | 15.7 |
| Income tax expense | (15.7) | (8.5) | (4.0) |
| Net income | 51.6 | 41.6 | 11.7 |
| Diluted EPS | 0.44 | 0.35 | 0.10 |
2026 Strategic Priorities & Investments
LendingClub has made important progress on several strategic initiatives:
Corporate Rebrand:
Rebranding to Happen Bank, a bank that clears the way for people going places, providing fast and easy access to award-winning products that help them save more of what they earn and earn more on what they save. The new brand reflects LendingClub's transition from a pioneering online lender to a diversified digital-first bank that combines deposits, lending, and a capital-light marketplace bank model. The company will transition to the new brand this summer. Rebrand-related costs are included in the 2026 financial guidance.
Home Improvement Financing:
Having previously acquired foundational technology and key talent, LendingClub is now underwriting and originating home improvement loans through its initial partnership with the Wisetack platform. Inbound interest from additional potential partners has been significant. Home improvement financing is a $500 billion market where LendingClub has distinct advantages over incumbents and a meaningful opportunity for growth.
AI and Operating Efficiency:
The company has over 60 active AI initiatives underway across marketing, product, engineering, operations, customer experience, and compliance, with the goal of improving efficiency and supporting margin expansion over time. AI-powered automation and agent support tools have already led to record personal loans operations production efficiency and a record-high >90% automation rate for issued loans in the first quarter.
New Marketing Channel Investment:
LendingClub accelerated investments in new acquisition channels, including paid social and display, ahead of normal seasonal timing in order to build attribution models and data capabilities for the full-year 2026 growth plan. Successful execution of marketing and product initiatives contributed to a 31% year-over-year increase in originations growth in the first quarter.
Transition to Fair Value Option Accounting:
Starting first quarter of 2026, LendingClub has adopted FVO accounting for all new originations of loans held for investment. This change aligns the accounting treatment for loans held for investment and held for sale, creating a consistent framework across the business and removing the front-loaded CECL reserve impact that corresponds to balance sheet growth. The company expects this transition will, over time, result in higher return on invested capital.
From a financial reporting perspective, under FVO, new loans are marked to fair value at origination, with subsequent changes in fair value, reflecting both credit performance and market conditions, flowing through non-interest income each quarter rather than through a separate provision for credit losses. The company will no longer record a CECL provision on new loan originations.
Financial Outlook
| Second Quarter 2026 | |
|---|---|
| Loan originations | $3.0B to $3.1B |
| Diluted EPS | $0.40 to $0.45 |
| Full Year 2026 | |
| Loan originations | $11.6B to $12.6B |
| Diluted EPS | $1.65 to $1.80 |
About LendingClub
LendingClub Bank (soon to be Happen Bank) is a digital bank built for the Motivated Middle: high-FICO, high-income, digitally savvy consumers actively managing their financial lives. Our products are aligned by design to reward our five million plus members when they take positive financial steps, like saving regularly or making loan payments on time.
Our success is fueled by our advanced credit underwriting, a proprietary technology platform engineered for innovation, and a marketplace bank model that drives value for members, loan investors, and shareholders alike. The result is affordable credit, meaningful value, and a trusted banking relationship delivered consistently and profitably at scale.
As we look to our next chapter, we're choosing a name that reflects why we exist: to clear the way for our members to make it happen.
LENDINGCLUB CORPORATION OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
| As of and for the three months ended | % Change | ||||||
|---|---|---|---|---|---|---|---|
| March 31,2026 | December 31,2025 | September 30,2025 | June 30,2025 | March 31,2025 | Q/Q | Y/Y | |
| Operating Highlights: | |||||||
| Net interest income | $176,234 | $163,027 | $158,439 | $154,249 | $149,957 | 8% | 18% |
| Non-interest income | 76,017 | 103,444 | 107,792 | 94,186 | 67,754 | (27)% | 12% |
| Total net revenue | 252,251 | 266,471 | 266,231 | 248,435 | 217,711 | (5)% | 16% |
| Provision for credit losses | 390 | 47,158 | 46,280 | 39,733 | 58,149 | (99)% | (99)% |
| Non-interest expense | 184,533 | 169,284 | 162,713 | 154,718 | 143,867 | 9% | 28% |
| Income before income tax expense | 67,328 | 50,029 | 57,238 | 53,984 | 15,695 | 35% | 329% |
| Income tax expense | (15,725) | (8,475) | (12,964) | (15,806) | (4,024) | 86% | 291% |
| Net income | $51,603 | $41,554 | $44,274 | $38,178 | $11,671 | 24% | 342% |
| Diluted EPS | $0.44 | $0.35 | $0.37 | $0.33 | $0.10 | 26% | 340% |
| Total loan originations(in millions)(1) | $2,669 | $2,637 | $2,656 | $2,433 | $2,032 | 1% | 31% |
| Current period originations sold or held for sale | $1,717 | $2,090 | $2,027 | $1,702 | $1,314 | (18)% | 31% |
| Current period originations held for investment | $952 | $547 | $629 | $731 | $717 | 74% | 33% |
| Total servicing portfolio(in millions)(2) | $13,854 | $13,423 | $12,986 | $12,524 | $12,241 | 3% | 13% |
| Loans serviced for others | $7,750 | $7,601 | $7,612 | $7,185 | $7,130 | 2% | 9% |
| Performance Metrics: | |||||||
| Net interest margin | 6.28% | 5.98% | 6.18% | 6.14% | 5.97% | ||
| Profit margin(3) | 26.7% | 18.8% | 21.5% | 21.7% | 7.2% | ||
| Return on average equity (ROE)(4) | 13.7% | 11.3% | 12.4% | 11.1% | 3.5% | ||
| Return on tangible common equity (ROTCE)(5)(6) | 14.5% | 11.9% | 13.2% | 11.8% | 3.7% | ||
| Return on average total assets (ROA)(7) | 1.8% | 1.5% | 1.7% | 1.5% | 0.4% | ||
| Marketing expense as a % of loan originations(1) | 2.08% | 1.73% | 1.53% | 1.38% | 1.44% | ||
| Average balance - total loans and leases held for investment | $4,797,639 | $4,767,573 | $4,890,619 | $4,899,272 | $5,030,204 | 1% | (5)% |
| Net charge-offs - total loans and leases held for investment | $42,493 | $47,852 | $41,899 | $46,078 | $76,128 | (11)% | (44)% |
| Net charge-off ratio - total loans and leases held for investment(8) | 3.5% | 4.0% | 3.4% | 3.8% | 6.1% | ||
| Capital Metrics: | |||||||
| Common equity Tier 1 capital ratio | 17.0% | 17.4% | 18.0% | 17.5% | 17.8% | ||
| Tier 1 leverage ratio | 11.9% | 12.0% | 12.3% | 12.2% | 11.7% | ||
| Book value per common share | $13.19 | $13.01 | $12.68 | $12.25 | $11.95 | 1% | 10% |
LENDINGCLUB CORPORATION LOANS AND LEASES HELD FOR INVESTMENT BY DELINQUENCY STATUS
(In thousands)
(Unaudited)
The following tables present loans and leases held for investment (at amortized cost and fair value) by delinquency status(1):
| March 31,2026 | Current | 30-59 Days | 60-89 Days | 90 or More Days | Total | Guaranteed Amount(2) |
|---|---|---|---|---|---|---|
| Unsecured consumer(3) | $3,703,293 | $22,006 | $18,305 | $16,826 | $3,760,430 | $— |
| Residential mortgages | 147,730 | 1,719 | — | 25 | 149,474 | — |
| Secured consumer | 341,829 | 3,012 | 545 | 237 | 345,623 | — |
| Total consumer loans held for investment | 4,192,852 | 26,737 | 18,850 | 17,088 | 4,255,527 | — |
| Equipment finance(4) | 32,824 | — | — | 3,623 | 36,447 | — |
| Commercial real estate(5) | 480,877 | — | 399 | 10,295 | 491,571 | 38,372 |
| Commercial and industrial | 129,103 | 3,662 | 1,417 | 20,122 | 154,304 | 107,816 |
| Total commercial loans and leases held for investment | 642,804 | $3,662 | $1,816 | $34,040 | $682,322 | $146,188 |
| Total loans and leases held for investment | $4,835,656 | $30,399 | $20,666 | $51,128 | $4,937,849 | $146,188 |
LENDINGCLUB CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended | Change(%) | ||||
|---|---|---|---|---|---|
| March 31,2026 | December 31,2025 | March 31,2025 | Q1 2026vsQ4 2025 | Q1 2026vsQ1 2025 | |
| Interest income: | |||||
| Interest on loans(1) | $199,897 | $185,814 | $166,173 | 8% | 20% |
| Interest on securities available for sale | 54,411 | 55,948 | 56,280 | (3)% | (3)% |
| Other interest income | 6,899 | 8,824 | 9,606 | (22)% | (28)% |
| Total interest income | $261,207 | $250,586 | $232,059 | 4% | 13% |
| Interest expense: | |||||
| Interest on deposits | 84,971 | 87,558 | 82,100 | (3)% | 3% |
| Other interest expense | 2 | 1 | 2 | 100% | - |
| Total interest expense | 84,973 | 87,559 | 82,102 | (3)% | 3% |
| Net interest income | 176,234 | 163,027 | 149,957 | 8% | 18% |
| Non-interest income: | |||||
| Origination fees(2) | 130,088 | 109,562 | 69,944 | 19% | 86% |
| Servicing fees(2) | 13,113 | 12,845 | 12,748 | 2% | 3% |
| Gain on sales of loans(2) | 16,269 | 15,546 | 12,202 | 5% | 33% |
| Net fair value adjustments(2) | (88,925) | (39,451) | (29,251) | (125)% | (204)% |
| Other non-interest income | 5,472 | 4,942 | 2,111 | 11% | 159% |
| Total non-interest income | 76,017 | 103,444 | 67,754 | (27)% | 12% |
| Total net revenue | 252,251 | 266,471 | 217,711 | (5)% | 16% |
| Provision for credit losses | 390 | 47,158 | 58,149 | (99)% | (99)% |
| Non-interest expense: | |||||
|---|---|---|---|---|---|
| Compensation and benefits | 65,514 | 60,638 | 58,389 | 8% | 12% |
| Marketing | 55,415 | 45,680 | 29,239 | 21% | 90% |
| Equipment and software | 15,293 | 14,410 | 14,644 | 6% | 4% |
| Depreciation and amortization | 15,819 | 16,641 | 13,909 | (5)% | 14% |
| Professional services | 11,767 | 11,353 | 9,764 | 4% | 21% |
| Occupancy | 6,391 | 5,457 | 4,345 | 17% | 47% |
| Other non-interest expense | 14,334 | 15,105 | 13,577 | (5)% | 6% |
| Total non-interest expense | 184,533 | 169,284 | 143,867 | 9% | 28% |
| Income before income tax expense | 67,328 | 50,029 | 15,695 | 35% | 329% |
| Income tax expense | (15,725) | (8,475) | (4,024) | 86% | 291% |
| Net income | $ 51,603 | $ 41,554 | $ 11,671 | 24% | 342% |
| Net income per share: | |||||
| Basic EPS | $ 0.45 | $ 0.36 | $ 0.10 | 25% | 350% |
| Diluted EPS | $ 0.44 | $ 0.35 | $ 0.10 | 26% | 340% |
| Weighted-average common shares-Basic | 115,400,564 | 115,334,621 | 113,693,399 | —% | 2% |
| Weighted-average common shares-Diluted | 117,333,435 | 118,855,315 | 116,176,898 | (1)% | 1% |
| Total interest-earning assets | 11,220,240 | 261,207 | 9.31% | 10,899,604 | 250,586 | 9.20% | 10,044,954 | 232,059 | 9.24% |
|---|---|---|---|---|---|---|---|---|---|
| Cash and due from banks and restricted cash | 26,343 | 32,308 | 30,084 | ||||||
| Allowance for loan and lease losses | (262,466) | (275,187) | (239,608) | ||||||
| Other non-interest earning assets | 668,486 | 644,221 | 593,740 | ||||||
| Total assets | $11,652,603 | $11,300,946 | $10,429,170 | ||||||
| Interest-bearing liabilities | |||||||||
| Interest-bearing deposits(3): | |||||||||
| Savings and money market accounts | 6,694,780 | 58,714 | 3.56% | 6,478,888 | 60,960 | 3.73% | 5,917,852 | 55,881 | 3.83% |
| Certificates of deposit | 2,488,015 | 25,174 | 4.10% | 2,400,374 | 25,377 | 4.19% | 2,172,242 | 24,866 | 4.64% |
| Checking accounts | 393,963 | 1,083 | 1.12% | 396,430 | 1,221 | 1.22% | 430,449 | 1,353 | 1.27% |
| Interest-bearing deposits | 9,576,758 | 84,971 | 3.60% | 9,275,692 | 87,559 | 3.75% | 8,520,543 | 82,100 | 3.91% |
| Other interest-bearing liabilities | 222 | 2 | 3.79% | 109 | 1 | 4.28% | 222 | 2 | 4.47% |
| Total interest-bearing liabilities | 9,576,980 | 84,973 | 3.60% | 9,275,801 | 87,559 | 3.75% | 8,520,765 | 82,102 | 3.91% |
| Noninterest-bearing deposits | 334,136 | 311,147 | 321,777 | ||||||
| Other liabilities | 233,776 | 240,642 | 237,155 | ||||||
| Total liabilities | $10,144,892 | $9,827,590 | $9,079,697 | ||||||
| Total equity | $1,507,711 | $1,473,356 | $1,349,473 | ||||||
| Total liabilities and equity | $11,652,603 | $11,300,946 | $10,429,170 |