LendingClub Corp
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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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.
Mar 31, 2026 · Filed Apr 30, 2026
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 2025-09-30; filed 2025-10-30.
0001409970-25-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001409970-26-000062
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewThe 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 198 previous paragraphs and 25 current paragraphs.
6 unchanged; 5 reworded; 14 added; 187 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 37 previous and 6 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 (14)
Current report
Effective January 1, 2026, we elected the fair value option to account for held for investment (HFI) loans that were originated on or after that date (fair value option election). Prior to this election, loans that were originated as HFI were, and will continue to be, accounted for at amortized cost, which required the initial recognition of a CECL allowance for lifetime expected credit losses. We believe that applying the fair value option, rather than amortized cost accounting with the CECL methodology, to HFI loans more accurately reflects the in-period economic performance of the loans by better aligning the value of the loan to its then fair value. Under the fair value option, origination fee revenue and marketing costs are recognized in earnings at the time of loan origination, rather than being deferred. Fair value adjustments on loans are recognized in current period earnings within “Net fair value adjustments” and include the impact of credit losses that previously would have been recorded as a provision expense under CECL. Further, by applying the fair value option to HFI loans, we are applying the same accounting methodology to all loans we originate on or after January 1, 2026, as both HFI and held for sale (HFS) loans are now measured at fair value.
Current report
We delivered several financial achievements in the first quarter of 2026, including total net revenue of $252.3 million, an increase of 16% compared to the same period in the prior year. This growth was primarily driven by an increase in loan origination volume along with higher loan sales, improved loan sale pricing, and a higher net interest margin. Net income grew to $51.6 million, with diluted EPS of $0.44, compared to $11.7 million, with diluted EPS of $0.10, in the prior year.
Current report
(1) Beginning in the first quarter of 2026, includes all loans originated during the respective periods (unsecured consumer loans, auto loans and small business loans). Previously this included unsecured consumer loans and auto loans only. In the first quarter of 2026, this update included $15 million of small business loan originations. Prior periods have been reclassified to conform to the current period presentation.
Current report
(4) Calculated as annualized net income divided by average equity for the period presented.
Current report
(7) Calculated as annualized net income divided by average total assets for the period presented.
Current report
(8) Beginning in the first quarter of 2026, the net charge-off ratio is calculated as annualized net charge-offs for total loans and leases held for investment (at amortized cost and fair value) divided by average total outstanding loans and leases held for investment during the period. Prior to the first quarter of 2026, this was calculated based on loans and leases held for investment at amortized cost only. Prior period amounts have been reclassified to conform to the current period presentation.
Current report
We evaluate the credit quality of our loan and leases held for investment based on delinquency status and payment activity. The following tables present loans and leases held for investment (at amortized cost and fair value) by delinquency status:
Current report
(1) Represents loan balances guaranteed by the Small Business Administration (SBA).
Current report
(2) Excludes basis adjustment for loans previously designated in fair value hedges under the portfolio layer method of $0.8 million and $1.6 million as of March 31, 2026 and December 31, 2025, respectively.
Current report
(4) Includes $307.0 million and $286.8 million in loans originated through the SBA as of March 31, 2026 and December 31, 2025, respectively.
Removed paragraphs (187)
Previous report
Executive Summary
Previous report
The following is a summary of our results for thethird quarter of 2025 compared to the same period in 2024, reflecting growth in loan originations, total net revenue and net income:
Previous report
•Loan originations: Loan originations for the third quarter of 2025 increased $708.8 million, or 37%, year over year. The increase was driven by an increase in unsecured personal loan origination volume.
Previous report
◦Marketplace loan originations for the third quarter of 2025 increased $624.1 million, or 44%, year over year, driven by a higher retention of held for sale (HFS) loans into our Extended Seasoning program and an increase in marketplace investor demand. Loan originations HFS as a percentage of loan originations was 77% and 73% for the third quarters of 2025 and 2024, respectively.
Previous report
◦Loan originations held for investment (HFI) at amortized cost for the third quarter of 2025 increased $84.7 million, or 17%, year over year. Loan originations HFI at amortized cost as a percentage of loan originations was 23% and 27% for the third quarters of 2025 and 2024, respectively.
Previous report
•Total net revenue: Total net revenue for the third quarter of 2025 increased $64.4 million, or 32%, year over year.
Previous report
◦Marketplace revenue: Marketplace revenue for the third quarter of 2025 increased $43.8 million, or 75%, year over year. The increase was primarily due to higher origination volumes of marketplace loans and improved loan sales prices.
Previous report
◦Net interest income: Net interest income for the third quarter of 2025 increased $18.2 million, or 13%, year over year primarily due to lower deposit funding costs and an increase in total interest-earning assets.
Previous report
◦Net interest margin: Net interest margin for the third quarter of 2025 was 6.18%, increasing from 5.63% in the third quarter of 2024.
Previous report
•Provision for credit losses: Provision for credit losses for the third quarter of 2025 decreased $1.3 million, or 3%, year over year. The decrease was primarily driven by improved credit performance, partially offset by a higher volume of originated loans retained as HFI at amortized cost.
Previous report
•Total non-interest expense: Total non-interest expense for the third quarter of 2025 increased $26.4 million, or 19%, 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 increases in the amortization of internally-developed software and compensation and benefits expense resulting from an increase in headcount.
Previous report
•Net income: Net income for the third quarter of 2025 increased $29.8 million, or 206%, year over year.
Previous report
•Diluted earnings per share (EPS): Diluted EPS grew to $0.37, compared to $0.13 for the third quarter of 2024.
Previous report
•Pre-provision net revenue (PPNR): PPNR for the third quarter of 2025 increased $38.0 million, or 58%, year over year, driven by an increase in total net revenue, partially offset by an increase in non-interest expense.
Previous report
•Total assets: Total assets were $11.1 billion as of September 30, 2025 compared to $11.0 billion in the prior year. Total assets were comparable year-over-year due to a portfolio acquisition in the same quarter of the prior year.
Previous report
•Deposits: Total deposits were $9.4 billion as of September 30, 2025, compared to $9.5 billion in the prior year, primarily due to a $0.6 billion decrease in brokered deposits, mostly offset by an increase in non-brokered deposits.
Previous report
We regularly review several metrics to evaluate our business, measure our performance, identify trends, formulate financial projections and make strategic decisions. The following presents our select financial metrics for the periods presented:
Previous report
(3) Includes unsecured personal loans and auto loans only.
Previous report
(2)Represents the negative allowance for expected recoveries of amounts previously charged-off.
Previous report
(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 report
(4)Calculated as annualized net charge-offs divided by average outstanding loans and leases HFI at amortized cost, net, during the period.
Previous report
Results of Operations
Previous report
The following table sets forth the Condensed Consolidated Statements of Income (Income Statement) data for each of the periods presented:
Previous report
The analysis below is presented for the following periods: Third quarter of 2025 compared to the second quarter of 2025 (sequential), third quarter of 2025 compared to the third quarter of 2024 (year over year) and first nine months of 2025 compared to the first nine months of 2024 (nine months over nine months).
Previous report
Marketplace Revenue
Previous report
Marketplace revenue consists of the following:
Previous report
We elected to account for HFS loans under the fair value option. With the election of the fair value option, origination fees, net fair value adjustments prior to the sales of the loans, and servicing asset gains on the sales of the loans, are reported as separate components within “Marketplace revenue.”
Previous report
Origination Fees
Previous report
Origination fees recorded as a component of marketplace revenue are primarily fees earned related to originating and issuing unsecured personal loans that are HFS.
Previous report
The following table presents loan origination volume during each of the periods set forth below:
Previous report
(1) Includes unsecured personal loans and auto loans only.
Previous report
Sequential: Origination fees were $105.7 million and $87.6 million for the third and second quarters of 2025, respectively, an increase of 21%.
Previous report
Year Over Year: Origination fees were $105.7 million and $71.5 million for the third quarters of 2025 and 2024, respectively, an increase of 48%.
Previous report
Nine Months Over Nine Months: Origination fees were $263.3 million and $218.7 million for the first nine months of 2025 and 2024, respectively, an increase of 20%.
Previous report
The increases in origination fees were primarily due to higher origination volumes of marketplace loans.
Previous report
Servicing Fees
Previous report
We receive servicing fees to compensate us for servicing loans on behalf of investors, including managing payments from borrowers, collections and payments to those investors. Servicing fee revenue related to loans sold also includes the change in fair value of servicing assets associated with the loans.
Previous report
The table below illustrates the average balance of loans sold and subsequently serviced on behalf of the investor for the periods presented (in millions):
Previous report
In addition to the loans serviced on our marketplace platform, we serviced $53.0 million, $52.8 million and $106.5 million in outstanding principal balance of commercial loans sold as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
Previous report
Sequential: Servicing fees were $17.0 million and $16.4 million for the third and second quarters of 2025, respectively, an increase of 4%. The increase was primarily due to a lower market servicing rate assumption, which resulted in an increase in the fair value of the servicing asset, and a higher average principal balance of loans serviced. This was partially offset by a reduction in servicing fees on delinquent loan collections.
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Reworded paragraphs (5)
Previous wording
LendingClub operates a leading, nationally chartered, digital marketplace bank that aims to advantage our members with the information, tools, and guidance needed to achieve their own version of financial success. We do this through a smart, simple, and rewarding digital experience that leverages data and technology to increase access to credit, lower borrowing costs, and improve returns on savings.
Current wording
LendingClub operates a leading, nationally chartered, digital marketplace bank that leverages data and technology to increase access to credit, reduce borrowing costs, and improve returns on savings for our members.
Previous wording
(4) Assets under management (AUM) reflects loans serviced on our platform, which includes outstanding balances of unsecured personal loans, auto refinance loans and education and patient finance loans serviced for others and retained by the Company as of the end of the periods presented.
Current wording
(2) Reflects loans serviced on our platform, which includes outstanding balances of unsecured consumer loans and auto loans serviced for others for which servicing rights are retained by the Company.
Previous wording
(2) Calculated as the ratio of non-interest expense to total net revenue.
Current wording
(3) Calculated as the ratio of income before income tax expense to total net revenue.
Previous wording
We believe ROTCE is an important measure because it reflects the Company's ability to generate income from its core assets. ROTCE is a non-GAAP financial measure calculated by dividing annualized net income by the average tangible common equity for the applicable period.
Current wording
(5) Calculated as annualized net income divided by average tangible common equity for the period presented.
Previous wording
◦Federal Deposit Insurance Corporation (FDIC)-insured deposits represent approximately 88% of total deposits as of September 30, 2025.
Current wording
(1) As of March 31, 2026, Federal Deposit Insurance Corporation (FDIC)-insured deposits represent approximately 88% of total deposits.