LendingClub Corp
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
HAPN$15.96-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001409970-25-000018
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001409970-25-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 184 previous paragraphs and 198 current paragraphs.
121 unchanged; 46 reworded; 28 added; 17 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 28 previous and 36 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
◦Loan originations held for sale (HFS) for the second quarter of 2025 increased $225.0 million, or 15%, year over year, driven by an increase in marketplace investor demand and a higher retention of HFS loans into our Extended Seasoning program. Loan originations HFS as a percentage of loan originations was 71% and 81% for the second quarters of 2025 and 2024, respectively.
Current report
◦Marketplace revenue: Marketplace revenue for the second quarter of 2025 increased $33.3 million, or 59%, year over year. The increase was primarily due to higher origination volumes of marketplace loans, improved loan sales prices and lower fair value adjustments based on improved credit performance in the second quarter of 2025.
Current report
•Net income: Net income for the second quarter of 2025 increased $23.3 million, or 156%, year over year.
Current report
Sequential: Origination fees were $87.6 million and $69.9 million for the second and first quarters of 2025, respectively, an increase of 25%.
Current report
Six Months Over Six Months: Origination fees were $157.5 million and $147.2 million for the first halves of 2025 and 2024, respectively, an increase of 7%.
Current report
The increases in origination fees were primarily due to higher origination volumes of marketplace loans.
Current report
Sequential: Servicing fees were $16.4 million and $12.7 million for the second and first quarters of 2025, respectively, an increase of 29%. The increase was primarily due to the prior-quarter reduction in the fair value of the servicing asset, which was based on higher future expected borrower prepayments.
Current report
Sequential: Gain on sales of loans was $13.5 million and $12.2 million for the second and first quarters of 2025, respectively, an increase of 11%. The increase was primarily driven by the increase in the volume of marketplace loans sold.
Current report
Six Months Over Six Months: Gain on sales of loans was $25.7 million and $21.7 million for the first halves of 2025 and 2024, respectively, an increase of 19%. The increase was primarily driven by the increase in the volume of marketplace loans sold as well as higher Structured Program transaction expenses in the first half of 2024.
Current report
Sequential: Net fair value adjustments were $(27.9) million and $(29.3) million for the second and first quarters of 2025, respectively, a decreased loss of $1.4 million.
Current report
Six Months Over Six Months: Net fair value adjustments were $(57.1) million and $(96.1) million for the first halves of 2025 and 2024, respectively, a decreased loss of $39.0 million.
Current report
The reductions were primarily due to improved loan sale prices and lower fair value adjustments based on improved credit performance in the second quarter of 2025, partially offset by an increase in the origination volume of marketplace loans.
Current report
Sequential: The provision for credit losses was $39.7 million and $58.1 million for the second and first quarters of 2025, respectively, a decrease of 32%. The decrease was primarily driven by improved credit performance in the second quarter of 2025. In addition, in the first quarter of 2025 we recorded an additional economic qualitative allowance to reflect macroeconomic uncertainty.
Current report
Six Months Over Six Months: The provision for credit losses was $97.9 million and $67.5 million for the first halves of 2025 and 2024, respectively, an increase of 45%. The increase was primarily driven by an increase in the initial provision for credit losses from a higher volume of originated loans retained as HFI at amortized cost as well as an additional economic qualitative allowance that was recorded in the first quarter of 2025 to reflect macroeconomic uncertainty. The increase was offset by improved credit performance in the second quarter of 2025.
Current report
Sequential: Compensation and benefits expense increased $3.6 million, or 6%, for the second quarter of 2025 compared to the first quarter of 2025. The increase in compensation and benefits expense was primarily due to an increase in variable compensation expense.
Current report
Six Months Over Six Months: Compensation and benefits expense increased $4.3 million, or 4%, for the first half of 2025 compared to the same period in 2024. The increase was primarily due to an increase in headcount.
Current report
Sequential: Marketing expense increased $4.3 million, or 15%, for the second quarter of 2025 compared to the first quarter of 2025.
Current report
Six Months Over Six Months: Marketing expense increased $12.0 million, or 24%, for the first half of 2025 compared to the same period in 2024.
Current report
Sequential: Equipment and software expense decreased $0.1 million, or 1%, for the second quarter of 2025 compared to the first quarter of 2025.
Current report
Six Months Over Six Months: Equipment and software expense increased $4.1 million, or 16%, for the first half of 2025 compared to the same period in 2024.
Current report
Sequential: Depreciation and amortization expense increased $1.6 million, or 11%, for the second quarter of 2025 compared to the first quarter of 2025.
Current report
Six Months Over Six Months: Depreciation and amortization expense increased $3.6 million, or 14%, for the first half of 2025 compared to the same period in 2024.
Current report
Sequential: Professional services increased $0.5 million, or 5%, for the second quarter of 2025 compared to the first quarter of 2025.
Current report
Six Months Over Six Months: Professional services increased $5.2 million, or 35%, for the first half of 2025 compared to the same period in 2024.
Current report
Six Months Over Six Months: Occupancy expense increased $1.3 million, or 17%, for the first half of 2025 compared to the same period in 2024.
Current report
Sequential: Other non-interest expense increased $0.5 million, or 4%, for the second quarter of 2025 compared to the first quarter of 2025.
Current report
Six Months Over Six Months: Other non-interest expense increased $3.6 million, or 15%, for the first half of 2025 compared to the same period in 2024.
Current report
The Company is evaluating the impact of the One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025. The OBBBA addresses key business tax provisions including the restoration of 100% bonus depreciation and domestic research cost expensing. The Company does not expect the OBBBA to have a significant impact on the effective tax rate but expects the updated tax provisions to reduce current taxes payable.
Removed paragraphs (17)
Previous report
◦Loan originations HFI at amortized cost as a percentage of loan originations was 34% and 17% for the first quarters of 2025 and 2024, respectively. The percentage of loan originations HFI in any period is dependent on many factors, including quarterly loan origination volume, risk-adjusted returns, liquidity and general regulatory capital considerations.
Previous report
◦Marketplace revenue: Marketplace revenue for the first quarter of 2025 increased $9.8 million, or 17%, year over year. The increase was primarily due to improved loan sales prices, partially offset by a decrease in loan balances serviced for others.
Previous report
•Net income: Net income for the first quarter of 2025 decreased $0.6 million, or 5%, year over year. Net income for the first quarter of 2025 included the negative impact of $8.1 million on allowance and net fair value adjustments due to macroeconomic uncertainty.
Previous report
(3)The balances at March 31, 2025 and December 31, 2024 include a loan portfolio that was purchased with a $1.3 billion outstanding principal balance during the third quarter of 2024. This portfolio consisted of loans which we previously originated and sold.
Previous report
Sequential: Origination fees were $69.9 million and $64.7 million for the first quarter of 2025 and fourth quarter of 2024, respectively, an increase of 8%. The increase was primarily due to the increase in the origination volume of marketplace loans.
Previous report
Sequential: Gain on sales of loans was $12.2 million and $15.0 million for the first quarter of 2025 and fourth quarter of 2024, respectively, a decrease of 19%. The decrease was primarily driven by the decrease in the volume of marketplace loans sold.
Previous report
Sequential: Net fair value adjustments were $(29.3) million and $(25.0) million for the first quarter of 2025 and fourth quarter of 2024, respectively, an increased loss of $4.3 million. The increase was primarily due to an increase in the origination volume of marketplace loans and higher future expected borrower prepayments.
Previous report
(1) Volume and rate changes have been allocated on a consistent basis using the respective percentage changes in average balances and average rates.
Previous report
(1) Volume and rate changes have been allocated on a consistent basis using the respective percentage changes in average balances and average rates.
Previous report
Sequential: The provision for credit losses was $58.1 million and $63.2 million for the first quarter of 2025 and fourth quarter of 2024, respectively, a decrease of 8%. The decrease was primarily driven by higher future expected borrower prepayments and a $3.5 million provision in our Commercial Real Estate (CRE) portfolio due to one office loan, which was recognized in the fourth quarter of 2024. The CRE office loan portfolio balance was under $35 million as of March 31, 2025. The decrease in the provision for credit losses was partially offset by additional economic qualitative allowance to reflect macroeconomic uncertainty.
Previous report
Sequential: Compensation and benefits expense remained relatively flat for the first quarter of 2025 compared to the fourth quarter of 2024.
Previous report
Sequential: Marketing expense increased $5.8 million, or 25%, for the first quarter of 2025 compared to the fourth quarter of 2024.
Previous report
Sequential: Equipment and software expense increased $1.3 million, or 10%, for the first quarter of 2025 compared to the fourth quarter of 2024.
Previous report
Sequential: Depreciation and amortization expense decreased $5.8 million, or 30%, for the first quarter of 2025 compared to the fourth quarter of 2024. The decrease was primarily due to the impairment expense for internally-developed software recorded in the fourth quarter of 2024.
Previous report
Sequential: Professional services increased $0.6 million, or 7%, for the first quarter of 2025 compared to the fourth quarter of 2024.
Previous report
Sequential: Other non-interest expense decreased $1.0 million, or 7%, for the first quarter of 2025 compared to the fourth quarter of 2024.
Previous report
(1) Total net income from reportable segments reflects net income on a consolidated basis.
Reworded paragraphs (46)
Previous wording
The following is a summary of our results for thefirst quarter of 2025 compared to the same period in 2024, reflecting growth in loan originations, total net revenue and total assets:
Current wording
The following is a summary of our results for thesecond quarter of 2025 compared to the same period in 2024, reflecting growth in loan originations, total net revenue and net income:
Previous wording
•Loan originations: Loan originations for the first quarter of 2025 increased $342.4 million, or 21%, year over year. The increase was driven by an increase in unsecured personal loan origination volume.
Current wording
•Loan originations: Loan originations for the second quarter of 2025 increased $578.6 million, or 32%, year over year. The increase was driven by an increase in unsecured personal loan origination volume.
Previous wording
◦Loan originations held for investment (HFI) at amortized cost for the first quarter of 2025 increased $389.4 million, or 136%, year over year.
Current wording
◦Loan originations held for investment (HFI) at amortized cost for the second quarter of 2025 increased $353.6 million, or 105%, year over year. Loan originations HFI at amortized cost as a percentage of loan originations was 29% and 19% for the second quarters of 2025 and 2024, respectively.
Previous wording
•Total net revenue: Total net revenue for the first quarter of 2025 increased $37.0 million, or 20%, year over year.
Current wording
•Total net revenue: Total net revenue for the second quarter of 2025 increased $61.2 million, or 33%, year over year.
Previous wording
◦Net interest income: Net interest income for the first quarter of 2025 increased $27.1 million, or 22%, year over year primarily due to an increase in total interest-earning assets and a decrease in interest expense associated with a lower average rate on interest-bearing deposits.
Current wording
◦Net interest income: Net interest income for the second quarter of 2025 increased $25.7 million, or 20%, year over year primarily due to an increase in total interest-earning assets and a decrease in interest expense associated with a lower average rate on interest-bearing deposits.
Previous wording
◦Net interest margin: Net interest margin for the first quarter of 2025 was 5.97%, increasing from 5.75% in the first quarter of 2024.
Current wording
◦Net interest margin: Net interest margin for the second quarter of 2025 was 6.14%, increasing from 5.75% in the second quarter of 2024.
Previous wording
•Provision for credit losses: Provision for credit losses for the first quarter of 2025 increased $26.2 million, or 82%, year over year. The increase was primarily driven by an increase in initial provision for credit losses from a higher volume of originated loans retained as HFI at amortized cost and additional economic qualitative allowance to reflect macroeconomic uncertainty.
Current wording
•Provision for credit losses: Provision for credit losses for the second quarter of 2025 increased $4.2 million, or 12%, year over year. The increase was primarily driven by an increase in initial provision for credit losses from a higher volume of originated loans retained as HFI at amortized cost. The increase was offset by improved credit performance in the second quarter of 2025.
Previous wording
•Total non-interest expense: Total non-interest expense for the first quarter of 2025 increased $11.6 million, or 9%, year over year. The increase was primarily due to an increase in marketing expense based on higher origination volume as well as the resumption of certain marketing initiatives.
Current wording
•Total non-interest expense: Total non-interest expense for the second quarter of 2025 increased $22.5 million, or 17%, year over year. The increase was primarily due to an increase in marketing expense based on higher origination volume and the resumption of certain marketing initiatives. The increase was also due to an increase in compensation and benefits expense based on higher variable compensation expense and an increase in headcount.
Previous wording
•Diluted earnings per share (EPS): Diluted EPS was $0.10, compared to $0.11 for the first quarter of 2024.
Current wording
•Diluted earnings per share (EPS): Diluted EPS was $0.33, compared to $0.13 for the second quarter of 2024.
Previous wording
•Pre-provision net revenue (PPNR): PPNR for the first quarter of 2025 increased $25.4 million, or 52%, year over year, driven by an increase in total net revenue, partially offset by an increase in non-interest expense.
Current wording
•Pre-provision net revenue (PPNR): PPNR for the second quarter of 2025 increased $38.7 million, or 70%, year over year, driven by an increase in total net revenue, partially offset by an increase in non-interest expense.
Previous wording
•Total assets: Total assets as of March 31, 2025 increased $1.2 billion, or 13%, year over year. The increase primarily reflects growth in securities related to our Structured Certificates program and our HFI and held for sale (HFS) loan portfolios at fair value.
Current wording
•Total assets: Total assets as of June 30, 2025 increased $1.2 billion, or 12%, year over year. The increase primarily reflects growth in securities related to our Structured Program transactions as well as in our loan portfolios.
Previous wording
•Deposits: Total deposits as of March 31, 2025 increased $1.4 billion, or 18%, year over year. The increase was primarily due to growth in high-yield savings and certificates of deposit. Federal Deposit Insurance Corporation (FDIC)-insured deposits represent approximately 87% of total deposits as of March 31, 2025.
Current wording
•Deposits: Total deposits as of June 30, 2025 increased $1.0 billion, or 13%, year over year. The increase was primarily due to growth in our high-yield savings deposits. Federal Deposit Insurance Corporation (FDIC)-insured deposits represent approximately 86% of total deposits as of June 30, 2025.
Previous wording
(4)Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.
Current wording
(3)Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.
Previous wording
(5)Calculated as annualized net charge-offs divided by average outstanding loans and leases HFI at amortized cost, net, during the period.
Current wording
(4)Calculated as annualized net charge-offs divided by average outstanding loans and leases HFI at amortized cost, net, during the period.
Previous wording
The analysis below is presented for the following periods: First quarter of 2025 compared to the fourth quarter of 2024 (sequential) and first quarter of 2025 compared to the first quarter of 2024 (year over year).
Current wording
The analysis below is presented for the following periods: Second quarter of 2025 compared to the first quarter of 2025 (sequential), second quarter of 2025 compared to the second quarter of 2024 (year over year) and first half of 2025 compared to the first half of 2024 (six months over six months).
Previous wording
Year Over Year: Origination fees were $69.9 million and $70.1 million for the first quarters of 2025 and 2024, respectively, remaining relatively flat.
Current wording
Year Over Year: Origination fees were $87.6 million and $77.1 million for the second quarters of 2025 and 2024, respectively, an increase of 14%.
Previous wording
In addition to the loans serviced on our marketplace platform, we serviced $93.1 million, $102.0 million and $124.4 million in outstanding principal balance of commercial loans sold as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
Current wording
In addition to the loans serviced on our marketplace platform, we serviced $52.8 million, $93.1 million and $111.6 million in outstanding principal balance of commercial loans sold as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
Previous wording
Year Over Year: Servicing fees were $12.7 million and $19.6 million for the first quarters of 2025 and 2024, respectively, a decrease of 35%. The decrease was primarily due to a lower principal balance of loans serviced.
Current wording
Year Over Year: Servicing fees were $16.4 million and $19.9 million for the second quarters of 2025 and 2024, respectively, a decrease of 17%. The decrease was primarily due to a lower principal balance of loans serviced and a reduction in servicing fees on delinquent loan collections.
Previous wording
Sequential: Servicing fees were $12.7 million and $17.4 million for the first quarter of 2025 and fourth quarter of 2024, respectively, a decrease of 27%. The decrease was primarily due to a decrease in the fair value of the servicing asset based on higher future expected borrower prepayments and a reduction in servicing fees on delinquent loan collections.
Current wording
Six Months Over Six Months: Servicing fees were $29.1 million and $39.5 million for the first halves of 2025 and 2024, respectively, a decrease of 26%. The decrease was primarily due to a lower principal balance of loans serviced and a reduction in servicing fees on delinquent loan collections. In addition, the decrease was also due to the prior-quarter reduction in the fair value of the servicing asset, which was based on higher future expected borrower prepayments.
Previous wording
Year Over Year: Gain on sales of loans was $12.2 million and $10.9 million for the first quarters of 2025 and 2024, respectively, an increase of 12%. The increase was due to higher Structured Program transaction expenses in the first quarter of 2024.
Current wording
Year Over Year: Gain on sales of loans was $13.5 million and $10.7 million for the second quarters of 2025 and 2024, respectively, an increase of 26%. The increase was primarily driven by the increase in the volume of marketplace loans sold as well as higher Structured Program transaction expenses in the second quarter of 2024.
Previous wording
Year Over Year: Net fair value adjustments were $(29.3) million and $(44.7) million for the first quarters of 2025 and 2024, respectively, a decreased loss of $15.4 million. The decrease was primarily due to improved loan sale prices.
Current wording
Year Over Year: Net fair value adjustments were $(27.9) million and $(51.4) million for the second quarters of 2025 and 2024, respectively, a decreased loss of $23.5 million.
Previous wording
Year Over Year: The provision for credit losses was $58.1 million and $31.9 million for the first quarters of 2025 and 2024, respectively, an increase of 82%. The increase was primarily driven by an increase in the initial provision for credit losses from a higher volume of originated loans retained as HFI at amortized cost and additional economic qualitative allowance to reflect macroeconomic uncertainty.
Current wording
Year Over Year: The provision for credit losses was $39.7 million and $35.6 million for the second quarters of 2025 and 2024, respectively, an increase of 12%. The increase was primarily driven by an increase in the initial provision for credit losses from a higher volume of originated loans retained as HFI at amortized cost. The increase was offset by improved credit performance in the second quarter of 2025.
Previous wording
(1)The first quarter of 2025 included an $8.0 million charge-off related to one office loan within our CRE portfolio, which was fully reserved for in prior periods.
Current wording
(1)The first quarter of 2025 included an $8.0 million charge-off related to one office loan within our CRE portfolio, which was fully reserved for in prior periods. The CRE office loan portfolio balance was under $35 million as of June 30, 2025.
Previous wording
(2)Relates to $96.3 million, $105.0 million and $72.1 million of unfunded commitments as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
Current wording
(2)Relates to $103.4 million, $96.3 million and $91.5 million of unfunded commitments as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
Previous wording
The following table presents information regarding average loan and lease balances, net charge-offs and the annualized ratio of net charge-offs to average outstanding loans and leases HFI at amortized cost, net, during the period:
Current wording
The following table presents information regarding average loan and lease balances, net charge-offs and the annualized ratio of net charge-offs to average outstanding loans and leases HFI at amortized cost, net, during the period. Net charge-offs are impacted by the expected timing of the charge-offs, anticipated recoveries and the age of the overall portfolio.
Previous wording
Loans and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection does not warrant further accrual. Unsecured personal loans are charged-off no later than 120 days past due.
Current wording
Loans and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection does not warrant further accrual. Unsecured personal loans are generally charged-off when a borrower is contractually 120 days past due.
Previous wording
Year Over Year: Compensation and benefits expense decreased $1.2 million, or 2%, for the first quarter of 2025 compared to the same period in 2024. The decrease in compensation and benefits expense was primarily due to a decrease in variable compensation expense.
Current wording
Year Over Year: Compensation and benefits expense increased $5.4 million, or 10%, for the second quarter of 2025 compared to the same period in 2024. The increase in compensation and benefits expense was primarily due to an increase in variable compensation expense and an increase in headcount.
Previous wording
Year Over Year: Marketing expense increased $5.1 million, or 21%, for the first quarter of 2025 compared to the same period in 2024.
Current wording
Year Over Year: Marketing expense increased $6.9 million, or 26%, for the second quarter of 2025 compared to the same period in 2024.
Previous wording
Year Over Year: Equipment and software expense increased $2.0 million, or 15%, for the first quarter of 2025 compared to the same period in 2024.
Current wording
Year Over Year: Equipment and software expense increased $2.1 million, or 17%, for the second quarter of 2025 compared to the same period in 2024.
Previous wording
Year Over Year: Depreciation and amortization expense increased $1.2 million, or 10%, for the first quarter of 2025 compared to the same period in 2024. The increase was primarily due to an increase in the amortization of internally-developed software.
Current wording
Year Over Year: Depreciation and amortization expense increased $2.4 million, or 18%, for the second quarter of 2025 compared to the same period in 2024.
Previous wording
Year Over Year: Professional services increased $2.7 million, or 38%, for the first quarter of 2025 compared to the same period in 2024.
Current wording
Year Over Year: Professional services increased $2.5 million, or 32%, for the second quarter of 2025 compared to the same period in 2024.
Previous wording
The increases in professional services expense were primarily due to an increase in business consulting and compliance advisory services.
Current wording
The increases in professional services expense were primarily due to an increase in business consulting services.
Previous wording
Sequential: Occupancy expense increased $0.4 million, or 9%, for the first quarter of 2025 compared to the fourth quarter of 2024.
Current wording
Sequential: Occupancy expense increased $0.4 million, or 10%, for the second quarter of 2025 compared to the first quarter of 2025.
Previous wording
Year Over Year: Occupancy expense increased $0.5 million, or 13%, for the first quarter of 2025 compared to the same period in 2024.
Current wording
Year Over Year: Occupancy expense increased $0.8 million, or 21%, for the second quarter of 2025 compared to the same period in 2024.
Previous wording
The increases in occupancy expense were primarily due to an increase in office maintenance expenses.
Current wording
The increases in occupancy expense were primarily related to operating expenses associated with the office building we purchased in April 2025.
Previous wording
Year Over Year: Other non-interest expense increased $1.3 million, or 11%, for the first quarter of 2025 compared to the same period in 2024.
Current wording
Year Over Year: Other non-interest expense increased $2.2 million, or 19%, for the second quarter of 2025 compared to the same period in 2024.
Previous wording
The changes in other non-interest expense were primarily due to increases or decreases in miscellaneous operating expenses.
Current wording
The increases in other non-interest expense were primarily due to increases in miscellaneous operating expenses.
Previous wording
For the first quarter 2025, we recorded an income tax expense of $4.0 million, representing an effective tax rate of 25.6%. For the first quarter 2024, we recorded an income tax expense of $4.3 million, representing an effective tax rate of 25.9%. The effective tax rates differ from the federal statutory rate due to state taxes, the favorable impact of recurring items such as tax credits, the unfavorable impact of the non-deductible portions of executive compensation, and the net discrete impact of stock-based compensation.
Current wording
For the second quarter and first half of 2025, we recorded an income tax expense of $15.8 million and $19.8 million, respectively, representing an effective tax rate of 29.3% and 28.5%, respectively. For the second quarter and first half of 2024, we recorded an income tax expense of $4.5 million and $8.8 million, respectively, representing an effective tax rate of 23.3% and 24.5%, respectively. The 2024 and 2025 effective tax rates differ from the federal statutory rate due to state taxes, the favorable impact of recurring items such as tax credits, the unfavorable impact of the non-deductible portions of executive compensation, and the net discrete impact of stock-based compensation. Additionally, on June 27, 2025, California Senate Bill 132 was signed into law, requiring that banks and financial companies transition from an equally weighted three-factor apportionment formula to a single-sales-factor apportionment formula, effective for tax years beginning in 2025. As a result, the Company’s 2025 state tax rate decreased, requiring a revaluation of its deferred tax assets. This revaluation resulted in the recognition of a discrete tax expense in the second quarter of 2025.
Previous wording
We are subject to supervision, regulation, examination and enforcement by multiple federal banking regulatory bodies. Specifically, as a bank holding company, the Company is subject to ongoing and comprehensive supervision, regulation, examination and enforcement by the Board of Governors of the Federal Reserve System (FRB). Further, as a national bank, LC Bank is subject to ongoing and comprehensive supervision, regulation, examination and enforcement by the Office of the Comptroller of the Currency (OCC). Accordingly, we have been and continue to invest in regulatory compliance and be subject to certain parameters, obligations and/or limitations set forth by the banking regulations and regulators with respect to the operation of our business.
Current wording
We are subject to supervision, regulation, examination and enforcement by multiple federal banking regulatory bodies. Specifically, as a bank holding company, the Company is subject to ongoing and comprehensive supervision, regulation, examination and enforcement by the Board of Governors of the Federal Reserve System (FRB). Further, as a national bank, LC Bank is subject to ongoing and comprehensive supervision, regulation, examination and enforcement by the Office of the Comptroller of the Currency (OCC). Additionally, as of June 30, 2025, LC Bank became a depository institution with assets over $10 billion for four consecutive quarters and therefore is subject to supervision and enforcement authority relating to federal consumer financial laws and regulations by the Consumer Financial Protection Bureau (CFPB). Accordingly, we have been and continue to invest in regulatory compliance and be subject to certain parameters, obligations and/or limitations set forth by the banking regulations and regulators with respect to the operation of our business.
Previous wording
(2)As of March 31, 2025 and December 31, 2024, the Company had $3.0 billion and $3.2 billion in loans pledged under the FRB Discount Window, respectively.
Current wording
(2)As of June 30, 2025 and December 31, 2024, the Company had $4.0 billion and $3.2 billion in loans pledged under the FRB Discount Window, respectively.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
An analysis of the six months over six months changes in the categories of interest revenue and interest expense resulting from changes in volume and rate is as follows:
Current report — wording carried from elsewhere
(1) Nonaccrual loans and any related income are included in their respective loan categories.
Current report — wording carried from elsewhere
The increases in depreciation and amortization expense were primarily due to an increase in the amortization of internally-developed software.