LendingClub Corporation Q1 FY2026 earnings call

• 2026 started well with 31% year - on - year growth in originations, record pre - tax earnings and return on tangible common equity. - Expanding into new home improvement vertical, leveraging AI for efficiency and customer experience improvement. - Introducing rebrand to Happen Bank, centered around 'the motivated middle' customers. - Major purchase finance delivered third consecutive quarter of record issuance. - Home improvement loans started underwriting and issuing through partnership with wisetac. - Lending and banking products work together to deliver value to members. - Over 90% of loan issuance is fully automated, reducing time to submit debt consolidation application by nearly 60% and achieving record low production cost per issued personal loan.

In Q1 2026, Lending Club delivered 31% year - on - year growth in originations to $2.7 billion. Record pre - tax earnings were $67 million and return on tangible common equity was 14.5%. Interest income increased 18% to $176 million, an all - time high. Non - interest income was $76 million, up 12% year over year but down sequentially due to the move to fair value option. Net interest margin expanded to 6.3%, up 30 basis points over the prior quarter. Provision for credit losses was less than $1 million. Total assets grew to $11.9 billion, and deposits ended the quarter at $10.2 billion, up 14% year over year.

• Maintained full - year guidance with originations expected to be $11.6 to $12.6 billion and diluted EPS $1.65 to $1.80. - Q2 2026 expected loan originations $3.0 to $3.1 billion, representing 23% to 27% year - over - year growth. - Q2 2026 expected diluted earnings per share $0.40 to $0.45. - Assumption of no Fed cuts for remainder of the year which is a headwind to revenue but offset by solid unit economics.

• Broader environment uncertainty. - Impact of interest rate changes on revenue and fair value adjustments. - Uncertainty around new capital rules and their potential impact on capital levels.

Q: When do you plan to get back to your historical peak originations levels?

A: Expect to get beyond historical peak, with medium - term target of 20 billion in annual originations as laid out in Investor Day materials.

Q: Any additional insights beyond home improvement in product roadmap?

A: Live in home improvement, still work to be done on product front there, and mortgage and HELOC could be next logical steps after home improvement is up and running.

Q: Any appetite for acquisitions this year or next?

A: Always looking to accelerate roadmap, staying disciplined on price, and transactions like Mosaic, Cushion AI, Tally have been executed in the past