## LendingClub

### First Quarter 2022 Results
April 27, 2022

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### 1Q 2022 Results & Financial Metrics

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### The Problem We’re Solving

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Many American households have turned to credit cards to manage their finances, which has resulted in ~40% of American households carrying over **$1 trillion of revolving debt.** Much of this debt is overpriced and LendingClub exists to provide Americans with a better way to access affordable credit.

**LendingClub’s 4+ million** members have already come to us to access lower-cost credit. While we serve a broad range of members, our average income is $100K with a high FICO (+700 avg.), but they also have high debt.

**And 83% tell us they want to do more with us!**

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**Our direct-to-consumer digital marketplace bank** features a vertically integrated model that allows us to reimagine banking, including lending, spending, and savings for our members.

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### Award-Winning Member-Focused Digital Marketplace Bank

Members¹

# 4+

# Million

Originations¹

# $70+

# Billion

**Become**  
**America’s**  
**Financial**  
**Health Club.**

**Empower**  
**Our Members**  
**on Their Path**  
**to Financial**  
**Health.**

### Promise

**To champion the**  
**financial success**  
**of our members**  
**with fairness,**  
**simplicity, and**  
**heart.**

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**Best Checking**  
**Account Overall**

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**Best Overall Checking**  
**Account, April 2021**

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### 1Q22 Highlights: Exceeded All Targets

|  | 1Q22 Guidance Targets | Actuals | Commentary |
| --- | --- | --- | --- |
| Net Revenue | $255M to $265M | ✔$289.5M | Net Revenue up 10% QoQ and 174% YoY driven by:
■ Marketplace revenue driven by origination growth of 5% and strong loan investor demand QoQ
■ Net interest income accelerated by growing the average bank loan portfolio 7% QoQ and 65% YoY |
| GAAP Net Income | $25M to $30M | ✔$40.8M | Record GAAP Net Income, up 40% QoQ,and $87.9M YoY driven by revenue growth and strong operating leverage through expense management |

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### 1Q22 Highlights: Transformative Financial Profile Emerging

#### NET REVENUE

#### 174%

Net Revenue up **174% YoY** to **$289.5M,** up 10% over last quarter’s record

#### GAAP NET INCOME

**$41M**

Record GAAP Net Income, **up 40% QoQ**, and **+$87.9M YoY**

#### NET INTEREST INCOME

**$100M**

Net Interest Income **439% YoY** growth

#### NET INTEREST MARGIN

## 8.6%

Net Interest Margin expansion to **8.6%** from 3.3% a year ago

#### DEPOSITS

## 68%

Deposit growth **up 68%** from a year ago to **$4.0B**

#### BANK LOAN PORTFOLIO

## 65%

Average loan portfolio growing **65%** year-over-year to **$3.1B**

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### Best of Both Worlds

|  |  | LendingClub¹ | Fintechs | Banks |
| --- | --- | --- | --- | --- |
| Economics | Ability to efficiently serve a broad range of customers | √Industry leading marketing efficiency;4M+ customers | √ | X |
| Economics | Capital-light, high-ROE marketplace earnings stream | √$190M Non-Interest Income | √ | X |
| Economics | Highly profitable earnings via loan portfolio | √$100M Net Interest Income | X | √ |
| Economics | Lower-cost deposit funding | √0.42% average cost of funds | X | √ |
| Economics | Fully integrated originations and deposit model | √$3.2B originations;$4B deposits | X | √ |
| Scale&Scalability | National digital-first consumer footprint | √Multi-award-winning digital experience | √ | X |
| Scale&Scalability | Vast data advantage from serving millions of personal loan customers | √150B+ cells of data;2K+ attributes | X | X |
| Scale&Scalability | Unencumbered by high-cost branch network and legacy systems | √Tech-first highly automated marketplace platform | √ | X |
| Scale&Scalability | Strong growth trajectory | √174% net revenue growth rate YoY | √ | X |
| Resiliency | Recurring revenue stream | √41% recurring revenue(NII+Servicing Fees) | X | √ |
| Resiliency | Stability of funding | √Low-cost deposits and diverse investor funding | X | √ |
| Resiliency | Clear and consistent regulatory framework | √Strong control & compliance infrastructure | X | √ |

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### New Vertically Integrated Marketplace Bank Model

#### Drives Superior Performance vs. Pure Marketplace Model

|  | Prior Record Net Income (4Q19) | New Marketplace Bank Model(1Q22) | Variance(4Q19 to 1Q22) |
| --- | --- | --- | --- |
| Originations | $3.1B | $3.2B | +$0.1B |
| Net Interest Income | $25.5M | $99.7M | +$74.2M |
| Non-Interest Income | $162.9M | $189.9M | +$27M |
| Net Revenue | $188.5M | $289.5M | +$101M |
| GAAP Net Income | $0.2M | $40.8M | +$40.6M |

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### Net Income Growth Driven by Strong Revenue Growth and Operating Leverage

#### Pre-Tax, Pre-Provision Income

($ in millions)

| N/M | N/M | 52% | 10% | 33% |
| --- | --- | --- | --- | --- |

#### Provision for Credit Losses

| 21.5 | 34.6 | 37.5 | 45.1 | 52.5 |
| --- | --- | --- | --- | --- |

#### Income Tax Benefit (Expense)

| 2.8 | (0.2) | (2.7) | 0.2 | (5.0) |
| --- | --- | --- | --- | --- |

#### GAAP Net Income (Loss)

($ in millions)

| N/M | N/M | 190% | 7% | 40% |
| --- | --- | --- | --- | --- |

#### Diluted EPS

| ($0.49) | $0.09 | $0.26 | $0.27 | $0.39 |
| --- | --- | --- | --- | --- |

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### Topline Growth Driven by Recurring Net Interest Income Stream

### Combined With Strong Marketplace Revenue

1) Note: There may be differences between the sum of the quarterly results due to rounding.

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### Net Interest Income

**439% YoY growth** reflects average loan growth of 65% and NIM expansion to 8.6%

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### Non-Interest Income

Marketplace revenue reflects YoY marketplace origination growth of $1.2B and stronger loan investor demand

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|  | Loan Originations Driving Higher Revenues | | Marketplace Revenue Reflects Higher Marketplace Originations and Strong Loan Investor Demand |
|---|---|---|---|
| Quarterly Loan Originations | 1,2 | | Quarterly Marketplace Revenue | |
| ($ in millions) Retained Loans | Marketplace Originations | | ($ in millions) | |
| $1,483 $1,139 $344 | $2,722 $2,182 $541 | $3,107 $2,471 $636 | $3,069 $2,308 $761 | $3,217 $2,360 $856 | Revenue | Marketplace Originations Drive Marketplace |
| 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 |
| Loan Origination Growth (% QoQ) | | | | | | Marketplace Revenue Growth (% QoQ) | |
| 63% 23% | 84% Held for Investment % of Originations 20% 1) 2) | 14% 20% | (1%) 25% Note: There may be differences between the sum of the quarterly results due to rounding. Quarterly Loan Originations include Personal Loans, Education and Patient Finance Loans, and Auto Loans. | 5% 27% | | 18% | 86% | 15% | (2%) | 6% |

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### Interest Income from HFI Portfolio Grew 19% QoQ as Consumer Loan Portfolio Momentum Builds

**Bank Average Held for Investment Balances¹**

($ in millions)

**Bank Interest Income from Held for Investment Loans²**

($ in millions)

**Bank HFI Balances (% QoQ)**

| Consumer Loans | 56% | 39% | 36% | 16% |
| --- | --- | --- | --- | --- |
| Commercial/PPP Loans | 1% | (15%) | (10%) | (11%) |
| HFI Total | 21% | 10% | 17% | 7% |

**Bank HFI Interest Income (% QoQ)**

| Consumer Loans | 273% | 79% | 46% | 25% |
| --- | --- | --- | --- | --- |
| Commercial/PPP Loans | 66% | (7%) | (7%) | (14%) |
| HFI Total | 155% | 48% | 34% | 19% |

1) LC Consumer Loans Held for Investment (including both unsecured and secured consumer loans) are net of deferred fees and amortization. Please see next page for additional detail.

2) 1Q21 interest income includes 2 months of Radius Bank financials after the 02/01/2021 acquisition.

3) Commercial/ PPP Loans includes PPP average balances that have declined from $621M in 1Q21 to $223M in 1Q22.

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### Growing Consumer Loan Portfolio Mix Drives Net Interest Margin Expansion to 8.61%

### Key Bank Balance Sheet Data

### (Average balances; $ in millions)

|  | Average Balances |  |  |  |  | Average Yield |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 |
| Unsecured consumer loans | $147 | $512 | $991 | $1,542 | $2,060 | 13.85% | 15.24% | 15.95% | 15.66% | 15.22% |
| Secured consumer loans | $521 | $532 | $464 | $436 | $232 | 3.70% | 3.89% | 4.04% | 3.69% | 3.92% |
| Commercial loans and leases | $605 | $624 | $617 | $620 | $621 | 5.07% | 5.81% | 5.11% | 5.59% | 4.89% |
| PPP loans | $621 | $616 | $437 | $325 | $223 | 3.45% | 3.46% | 5.07% | 4.78% | 5.76% |
| HFI Loans | $1,895 | $2,284 | $2,509 | $2,923 | $3,136 | 4.84% | 6.84% | 9.19% | 10.53% | 11.66% |
| Other interest-earning assets2 | $1,034 | $862 | $1,023 | $973 | $1,332 | 1.27% | 2.91% | 2.72% | 2.61% | 2.52% |
| Total Interest-earning Assets | $2,929 | $3,145 | $3,533 | $3,896 | $4,468 | 3.58% | 5.76% | 7.32% | 8.55% | 8.94% |
| Non-interest bearing deposits | $156 | $103 | $114 | $283 | $300 |  |  |  |  |  |
| Interest-bearing deposits | $2,059 | $2,373 | $2,529 | $2,727 | $3,312 | 0.30% | 0.29% | 0.30% | 0.38% | 0.42% |
| Advances from PPPLF/Other | $411 | $315 | $417 | $342 | $235 | 0.35% | 0.35% | 0.36% | 0.36% | 0.35% |
| Total Interest-bearing Liabilities | $2,470 | $2,688 | $2,946 | $3,069 | $3,546 | 0.31% | 0.29% | 0.31% | 0.38% | 0.42% |
| Interest Rate Spread |  |  |  |  |  | 3.27% | 5.47% | 7.01% | 8.17% | 8.52% |
| Net Interest Margin |  |  |  |  |  | 3.33% | 5.51% | 7.06% | 8.25% | 8.61% |

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### High Quality Prime Portfolio Driving Strong HFI Credit Performance

#### Strong HFI Credit Performance 
|  | Servicing Portfolio¹ | HFI Portfolio³ |
| --- | --- | --- |
| Avg. FICO | 722 | 727 |
| Avg. Income ($000)⁴ | $112 | $113 |
| Avg. Debt-to-Income⁵ | 20% | 19% |
| Avg. Coupon | 13.1% | 11.6% |

**Personal Loan Credit Performance**

▪ PL Prime originations focused on customers with average FICO 700+ and average income $100K+

▪ Delinquency rates remain well below pre-pandemic levels, beginning to normalize in-line with expectations

▪ Held for Investment (HFI) portfolio delinquencies growing as portfolio grows and matures

▪ High yielding avg. coupon rates drive net interest income as HFI portfolio grows and consumer asset mix increases

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### Improving Operating Leverage While Continuing to Invest in Long-term Growth

### Total Non-interest Expense 
**Efficiency Ratio** (Non-interest Expense as a % of Net Revenue¹)  
($ in millions)

1  
**Total Non-interest Expense**

($ in millions)

|  | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 |
| --- | --- | --- | --- | --- | --- |
| Compensation&Benefits | 64.4 | 71.9 | 73.3 | 78.7 | 81.6 |
| Marketing | 19.5 | 35.1 | 50.8 | 50.7 | 55.1 |
| Equipment&Software | 7.9 | 9.3 | 10.3 | 12.0 | 11.0 |
| Occupancy | 6.9 | 6.2 | 6.5 | 4.7 | 6.0 |
| Depreciation&Amortization | 11.8 | 11.5 | 10.5 | 10.5 | 11.1 |
| ProfessionalServices | 11.6 | 11.5 | 11.7 | 12.7 | 12.4 |
| OtherNon-interestExpense | 12.1 | 14.6 | 15.6 | 18.9 | 14.0 |
| TotalNon-InterestExpense | 134.3 | 160.1 | 178.8 | 188.2 | 191.2 |

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### Raising 2022 Full Year Outlook

|  | As of 04/27/22 |  | As of 01/26/22 |  |
| --- | --- | --- | --- | --- |
|  | 2Q22 Guidance | FY22 Guidance | vs. Prior FY22 Guidance | Commentary |
| Net Revenue | $295M to $305M+44% to 49% YoY | $1.15B to $1.25B+40% to 53% YoY | +$50M | Increasing origination target top end by $500M to $13.5B for FY22 |
| GAAP Net Income | $40M to $45M4.2X to 4.8X YoY | $145M to $165M7.8X to 8.9X YoY | +$15M | Increasing origination target top end by $500M to $13.5B for FY22 |

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### LendingClub