LendingClub Corporation

Ladies and gentlemen, thank you for joining us and welcome to the Lending Club Q4 2025.

Drew Laben, CFO. You can find the presentation accompanying our earnings release on the investor relations section of our website. On the call, in addition to questions from analysts, we will also be answering some of the questions that were submitted for consideration via email or through the SAIT Technologies platform. Our remarks today will include forward-looking statements, including with respect to our competitive advantages, demand for our loans and marketplace products, and future business and financial performance. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and earnings presentation. Any forward-looking statements that we make on this call are based on current expectations and assumptions and we undertake no obligation to update these statements as a result of new information or future events. Our remarks also include non-GAAP measures relating to our performance, including tangible book value per common share, pre-provisioned net revenue, and return on tangible common equity. You can find more information on our use of non-GAAP measures and a reconciliation to the most directly comparable GAAP measures in today's earnings release and presentation. Finally, please note all financial comparisons in today's prepared remarks are to the prior year period unless otherwise noted. And now I'd like to turn the call over to Scott.

All right, thank you, Artem. Welcome, everyone. We had a strong close to what was one of the best years in LendingClub's history. Our results are validating our strategy and demonstrating our commitment to deliver a combination of growth, profitability, and shareholder returns. In the quarter, we grew originations 40% year on year to $2.6 billion, with all product lines contributing to the growth. we also more than tripled return on tangible common equity to almost 12%. For the full year, we grew originations by 33% to nearly 10 billion and more than doubled earnings per share. And we are looking forward to building on our success. Our substantial originations growth was driven by continued product innovation and marketing expansion, while also supported by improved marketplace pricing and sustained credit outperformance. Our discipline, combined with our advanced underwriting capabilities, delivered 40% to 50% better credit performance versus our competitive set, and we're seeing stable performance and consistency in our borrowers' behavior. Strong credit performance continues to support loan investor demand, with marketplace revenue increasing 36% year-on-year, driven by higher marketplace volumes and loan sales pricing improving back towards our historical range. We introduced a rated structured certificate product in 2025 designed to meet the needs of insurance capital. Insurance investors have a cost of funds and a risk appetite similar to banks, and so growth in this segment should further support the marketplace. In Q4, we initiated our first direct forward flow agreement with a top U.S. insurance company, which is a nice addition to the previously announced agreements with BlackRock and BlueOwl. Investors remain selective about who they choose as partners. Our depth of credit data, performance history, and stability as a bank positions Lending Club as a counterparty of choice. Turning to our bank, our balance sheet is continuing to grow, with our loan portfolio driving net interest income up 14% year over year. Our funding is supported by our award-winning deposit products that deliver real value to customers while also driving ongoing engagement with Lending Club, supporting efficient revenue growth over the long term. Level Up Savings, which rewards good savings behavior, is growing by double digits and driving 20% to 30% more logins per month than our legacy savings product. Personal loan borrowers account for over 15% of new accounts, and borrowers who have paid off their loans are using the product to build a financial cushion, accumulating average balances of over $15,000. Our more recently launched level-up checking is also growing by double digits, with 60% of new accounts coming from personal loan borrowers, 84% of whom say they are now more likely to consider a Lending Club loan in the future. This virtuous cycle is exactly how our engagement model is designed to work. Importantly, we entered 2026 in a great position with multiple competitive strengths. First is our unmatched underwriting advantage enabled by proprietary models and informed by over 150 billion cells of data. Second are our products that attract members for life by delivering instant meaningful value. Third are our experiences that keep members coming back. Fourth is our agile, scalable technology foundation, which is engineered for innovation. And fifth is our digital marketplace bank business model that combines the speed of a FinTech and the resiliency of a bank, the best of both worlds. These competitive strengths are driving success in our core personal loan debt consolidation use case and have application far beyond, opening additional vectors for growth. Our significant advantages in funding reliability, underwriting, and user experience are allowing us to win over the competition and expand our major purchase finance business. Building on this momentum, last quarter we shared our planned entry into the half trillion dollar home improvement financing market, an industry that aligns well with our capabilities. With our acquisition of foundational technology, hiring of leadership and key talent, and our first distribution partnership signed, we are well positioned for growth over the medium term. We are currently integrating the acquired code base and remain on track to launch the partnership mid-year. Our announced entry has also generated substantial inbound interest from additional partners, presenting potential opportunities to strengthen our trajectory. We're excited about the year ahead and expect our marketing investments to continue scaling, credit performance to remain best in class, and operating discipline and AI-driven efficiencies to help expand margins. We're also excited to launch our new brand later in the year to better reflect the scale of our ambition. Before I turn it over to Drew, I want to take a moment to thank Hans Morris, who will be stepping down from our board in March after 13 years of extraordinary contributions. Hans has been instrumental to me and to Lending Club, from early investor to long serving board chair, and his impact on the company is difficult to overstate. I am deeply grateful for his leadership and support. We are very fortunate that Tim Myopoulos, who's been a high-impact member of the Lending Club Board for nearly a decade and who brings extensive experience in banking and FinTech, will be assuming the role of Chairman.