LendingClub (LC) Q4 2024 earnings summary

Executive summary

• Originations grew 13% year-over-year in Q4 2024, with total net revenue up 17% to $217.2M and pre-provision net revenue up 34% to $74.3M, driven by strong loan buyer demand and product innovation.

• Net income for Q4 was $9.7M, including a $3.2M post-tax non-cash impairment from the Tally acquisition.

• Deposit base increased 24% year-over-year to $9.1B, with LevelUp Savings balances at $1.2B and 87% FDIC-insured.

• Maintained credit outperformance, with delinquencies over 40% better than competitors and disciplined expense management improving efficiency.

• Successfully exited the new bank operating agreement and considering a rebranding to reflect a broader neobank strategy.

Financial highlights

• Q4 2024 originations exceeded $1.8B, with $605M held-for-investment, $575M marketplace whole-loan sales, and $560M structured certificate program.

• Total Q4 net revenue was $217.2M, up 17% year-over-year; non-interest income rose 38% to $75M, and net interest income increased 8% to $142M.

• Net interest margin was 5.42%, with average interest-earning assets up 28% year-over-year.

• Net income for Q4 was $9.7M, with diluted EPS of $0.08; book value per share was $11.83 and tangible book value per share was $11.09.

• Efficiency ratio improved to 55.0% in Q4 2024, reflecting disciplined expense management.

Outlook and guidance

• Q1 2025 originations expected at $1.8–$1.9B, with PPNR guidance of $60–$70M.

• Q4 2025 originations targeted at or above $2.3B, about 25% above current levels, and ROTCE above 8%.

• Guidance assumes stable employment, inflation, and one 25bps Fed rate cut in the second half of 2025.

• Goal to exit 2025 with an 8% ROTCE, with further improvement expected beyond.