Seasoned, Quality Portfolio to Support Growth
in Recurring Revenue
SAN
FRANCISCO, Dec. 2, 2022 /PRNewswire/ -- LendingClub
Corporation (NYSE: LC) announced an agreement to acquire a
$1.05 billion loan portfolio. The
portfolio consists of personal loans that were originated through
LendingClub's marketplace and will support its growing revenue
stream of recurring net interest income.
The personal loans were previously acquired by MUFG Union Bank
and became available for purchase following U.S. Bancorp's recently
completed acquisition of MUFG Union Bank's core regional banking
franchise. The loans are currently being serviced by LendingClub
and have a current outstanding principal weighted average FICO
score of 729.
"LendingClub utilized its strong balance sheet to support
marketplace liquidity while mitigating a slowdown in marketplace
revenue by adding a high-quality loan portfolio that will generate
attractive returns," said Scott
Sanborn, LendingClub's CEO. "This portfolio was acquired
through a competitive bidding process and exemplifies a mutually
beneficial transaction."
Expenses associated with the acquisition are expected to be
approximately $4 million, primarily
related to the derecognition of the associated servicing asset,
which will be more than offset over time by interest income from
the loan portfolio. Due to the short remaining duration of the
acquired loan portfolio, LendingClub has elected to account for the
held for investment loan portfolio under the fair value option,
which will not require upfront credit loss provisioning under the
Current Expected Credit Loss (CECL) methodology.
LendingClub expects the acquisition of the loan portfolio to be
completed by the end of 2022.
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of
LendingClub Bank, National Association, Member FDIC. LendingClub
Bank is the leading digital marketplace bank in the U.S., where
members can access a broad range of financial products and services
designed to help them pay less when borrowing and earn more when
saving. Based on more than 150 billion cells of data and over
$80 billion in loans, our advanced
credit decisioning and machine-learning models are used across the
customer lifecycle to expand seamless access to credit for our
members, while generating compelling risk-adjusted returns for our
loan investors. Since 2007, more than 4 million members have joined
the Club to help reach their financial goals. For more information
about LendingClub, visit https://www.lendingclub.com.
Safe Harbor Statement
Some of the statements in this press release, including
statements regarding future financial results and the timing,
accounting and expected benefits of the acquisition of the loan
portfolio from MUFG Union Bank, are "forward-looking statements."
The words "anticipate," "believe," "estimate," "expect," "intend,"
"may," "outlook," "plan," "predict," "project," "will," "would" and
similar expressions may identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Factors that could cause actual results to
differ materially from those contemplated by these forward-looking
statements include: the failure of the transaction with MUFG Union
Bank to be completed; our ability to continue to attract and retain
new and existing customers; competition; overall economic
conditions; the regulatory environment; demand for the types of
loans facilitated by us; default rates and those factors set forth
in the section titled "Risk Factors" in our most recent Annual
Report on Form 10-K, as filed with the Securities and Exchange
Commission, as well as in our subsequent filings with the
Securities and Exchange Commission. We may not actually achieve the
plans, intentions or expectations disclosed in forward-looking
statements, and you should not place undue reliance on
forward-looking statements. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
forward-looking statements. We do not assume any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
CONTACT: For Investors: IR@lendingclub.com; Media Contact:
Press@lendingclub.com
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SOURCE LendingClub Corporation