LendingClub Corp (LC) Reports Q3 2023 Earnings: Key Highlights
LendingClub Corp (NYSE:LC) reported total assets of $8.5 billion, up from $8.3 billion in the previous quarter.
Net income for Q3 2023 was $5.0 million, compared to $10.1 million in the prior quarter.
Loan originations stood at $1.5 billion, down from $2.0 billion in the previous quarter.
The company's total net revenue was $200.8 million, compared to $232.5 million in the prior quarter.
On October 25, 2023, LendingClub Corp (NYSE:LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, announced its financial results for the third quarter ended September 30, 2023. The company reported its tenth consecutive quarter of GAAP profitability, demonstrating its strong financial position and disciplined execution.
Financial Performance
LendingClub Corp (NYSE:LC) reported total assets of $8.5 billion, up from $8.3 billion in the previous quarter. This growth primarily reflects the growth in securities related to the structured certificate program. The company's net income for Q3 2023 was $5.0 million, or diluted EPS of $0.05, compared to $10.1 million, or diluted EPS of $0.09, in the prior quarter.
Loan originations stood at $1.5 billion, down from $2.0 billion in the previous quarter due to reduced purchases by bank loan investors. The company's total net revenue was $200.8 million, compared to $232.5 million in the prior quarter. This decrease was primarily due to lower pricing on sold marketplace volumes, partially offset by a one-time benefit related to recouping volume-based purchase incentives from the bank investor channel.
Balance Sheet Highlights
The company reported deposits of $7.0 billion, up from $6.8 billion in the prior quarter, primarily due to an increase in customer certificates of deposit. Loans and leases held for investment stood at $5.2 billion, down from $5.6 billion in the prior quarter. The company's strong capital position was reflected in a consolidated Tier 1 leverage ratio of 13.2% and a consolidated Common Equity Tier 1 capital ratio of 16.9%.
Looking Ahead
CEO Scott Sanborn stated,
Looking ahead, these actions combined with our strong foundation and capital base have us well positioned to capture a historic refinance opportunity as market conditions stabilize."
This indicates the company's confidence in its financial stability and growth prospects.
Financial Outlook
For the fourth quarter of 2023, LendingClub Corp (NYSE:LC) expects loan originations to be between $1.5 billion to $1.7 billion and pre-provision net revenue (PPNR) to be between $35 million to $45 million.
Explore the complete 8-K earnings release (here) from LendingClub Corp for further details.
This article first appeared on GuruFocus.
