v3.25.2
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses
LendingClub records certain loans and leases held for investment (HFI) at amortized cost. Other HFI and all HFS loans are recorded at fair value with the Company’s election of the fair value option. Accrued interest receivable is excluded from the amortized cost basis of loans and leases HFI and is reported within “Other assets” on the Balance Sheet. Net accrued interest receivable related to loans and leases HFI at amortized cost was $32.4 million and $30.4 million as of June 30, 2025 and December 31, 2024, respectively.

Loans and Leases Held for Investment at Amortized Cost

The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable:
June 30, 2025December 31, 2024
Unsecured personal$3,314,978 $3,106,472 
Residential mortgages166,568 172,711 
Secured consumer242,517 230,232 
Total consumer loans held for investment3,724,063 3,509,415 
Equipment finance (1)
49,891 64,232 
Commercial real estate449,604 373,785 
Commercial and industrial162,763 178,386 
Total commercial loans and leases held for investment662,258 616,403 
Total loans and leases held for investment4,386,321 4,125,818 
Allowance for loan and lease losses(252,989)(236,734)
Loans and leases held for investment, net
$4,133,332 $3,889,084 
(1)    Comprised of sales-type leases for equipment. See “Note 17. Leases” for additional information.

The following table presents the components of the allowance for loan and lease losses (ALLL):
June 30, 2025December 31, 2024
Gross allowance for loan and lease losses (1)
$293,707 $285,686 
Recovery asset value (2)
(40,718)(48,952)
Allowance for loan and lease losses$252,989 $236,734 
(1)    Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2)    Represents the negative allowance for expected recoveries of amounts previously charged-off.

June 30, 2025ConsumerCommercialTotal
Loans and leases held for investment$3,724,063 $662,258 $4,386,321 
Allowance for loan and lease losses$237,433 $15,556 $252,989 
Allowance ratio (1)
6.4 %2.3 %5.8 %
Gross allowance for loan and lease losses$278,151 $15,556 $293,707 
Gross allowance ratio (1)
7.5 %2.3 %6.7 %
December 31, 2024ConsumerCommercialTotal
Loans and leases held for investment
$3,509,415 $616,403 $4,125,818 
Allowance for loan and lease losses
$212,598 $24,136 $236,734 
Allowance ratio (1)
6.1 %3.9 %5.7 %
Gross allowance for loan and lease losses
$261,550 $24,136 $285,686 
Gross allowance ratio (1)
7.5 %3.9 %6.9 %
(1)    Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.

The activity in the ACL by portfolio segment was as follows:
Three Months Ended June 30,
20252024
ConsumerCommercialTotalConsumerCommercialTotal
Allowance for loan and lease losses:
Beginning of period
$227,608 $16,585 $244,193 $246,280 $12,870 $259,150 
Credit loss expense (benefit)
41,133 (537)40,596 30,760 5,817 36,577 
Charge-offs
(48,956)(898)(49,854)(77,494)(594)(78,088)
Recoveries17,648 406 18,054 11,183 87 11,270 
End of period
$237,433 $15,556 $252,989 $210,729 $18,180 $228,909 
Reserve for unfunded lending commitments:
Beginning of period
$— $1,629 $1,629 $— $1,662 $1,662 
Credit loss benefit
— (44)(44)— (207)(207)
End of period (1)
$— $1,585 $1,585 $— $1,455 $1,455 

Six Months Ended June 30,
20252024
ConsumerCommercialTotalConsumerCommercialTotal
Allowance for loan and lease losses:
Beginning of period
$212,598 $24,136 $236,734 $298,061 $12,326 $310,387 
Credit loss expense (benefit)
97,081 (103)96,978 58,446 7,377 65,823 
Charge-offs (2)
(107,300)(9,130)(116,430)(166,604)(1,826)(168,430)
Recoveries35,054 653 35,707 20,826 303 21,129 
End of period
$237,433 $15,556 $252,989 $210,729 $18,180 $228,909 
Reserve for unfunded lending commitments:
Beginning of period
$— $1,183 $1,183 $— $1,873 $1,873 
Credit loss expense (benefit)
— 402 402 — (418)(418)
End of period (1)
$— $1,585 $1,585 $— $1,455 $1,455 
(1)    Relates to $103.4 million and $91.5 million of unfunded commitments as of June 30, 2025 and 2024, respectively.
(2)    Includes an $8.0 million charge-off recorded in the first quarter of 2025 related to one office loan within the Company’s Commercial Real Estate portfolio, which was fully reserved for in prior periods.
The following table presents charge-offs by origination year for the first half of 2025:
Gross Charge-Offs by Origination Year
20252024202320222021PriorTotal
Unsecured personal (1)
$1,232 $22,629 $36,217 $37,438 $8,718 $— $106,234 
Residential mortgages— — — — — — — 
Secured consumer— 114 533 295 124 — 1,066 
Total consumer loans held for investment1,232 22,743 36,750 37,733 8,842 — 107,300 
Equipment finance— — — — — — — 
Commercial real estate— — — — — 8,597 8,597 
Commercial and industrial— 172 — 328 33 — 533 
Total commercial loans and leases held for investment— 172 — 328 33 8,597 9,130 
Total loans and leases held for investment$1,232 $22,915 $36,750 $38,061 $8,875 $8,597 $116,430 
(1)    Unsecured personal loans are generally charged-off when a borrower is contractually 120 days past due.

Consumer Lending Credit Quality Indicators

The Company evaluates the credit quality of its consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is based upon borrower payment activity relative to the contractual terms of the loan. The following tables present the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year:
June 30, 2025 Term Loans and Leases by Origination Year
20252024202320222021PriorTotal
Unsecured personal
Current $1,150,427 $1,037,882 $523,442 $466,704 $83,440 $— $3,261,895 
30-59 days past due 2,102 5,780 5,163 4,507 1,105 — 18,657 
60-89 days past due 1,487 4,829 5,085 4,755 1,033 — 17,189 
90 or more days past due 617 4,527 4,389 4,828 1,157 — 15,518 
Total unsecured personal (1)
1,154,633 1,053,018 538,079 480,794 86,735 — 3,313,259 
Residential mortgages
Current — — — 45,197 50,894 70,405 166,496 
30-59 days past due — — — — — — — 
60-89 days past due — — — — — — — 
90 or more days past due — — — — — 72 72 
Total residential mortgages — — — 45,197 50,894 70,477 166,568 
Secured consumer
Current69,522 62,340 58,196 40,116 6,652 2,325 239,151 
30-59 days past due2 307 764 884 230 — 2,187 
60-89 days past due78 67 250 423 33 — 851 
90 or more days past due— 113 93 116 6 — 328 
Total secured consumer69,602 62,827 59,303 41,539 6,921 2,325 242,517 
Total consumer loans held for investment$1,224,235 $1,115,845 $597,382 $567,530 $144,550 $72,802 $3,722,344 
(1)    Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of June 30, 2025, the basis adjustment totaled $1.7 million and represents an increase to the amortized cost of the hedged loans. See “Note 8. Derivative Instruments and Hedging Activities” for additional information.
December 31, 2024 Term Loans and Leases by Origination Year
20242023202220212020PriorTotal
Unsecured personal
Current $1,347,685 $787,936 $762,223 $142,546 $— $— $3,040,390 
30-59 days past due 4,981 7,344 8,952 2,253 — — 23,530 
60-89 days past due 2,448 6,933 7,920 1,992 — — 19,293 
90 or more days past due 2,364 7,920 8,853 2,250 — — 21,387 
Total unsecured personal (1)
1,357,478 810,133 787,948 149,041 — — 3,104,600 
Residential mortgages
Current — — 45,828 52,679 28,176 45,789 172,472 
30-59 days past due — — — — — 151 151 
60-89 days past due — — — — — 88 88 
90 or more days past due — — — — — — — 
Total residential mortgages — — 45,828 52,679 28,176 46,028 172,711 
Secured consumer
Current79,161 78,081 56,766 10,573 — 2,372 226,953 
30-59 days past due98 824 1,199 221 — — 2,342 
60-89 days past due11 147 338 104 — — 600 
90 or more days past due36 157 99 45 — — 337 
Total secured consumer79,306 79,209 58,402 10,943 — 2,372 230,232 
Total consumer loans held for investment$1,436,784 $889,342 $892,178 $212,663 $28,176 $48,400 $3,507,543 
(1)    Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of December 31, 2024, the basis adjustment totaled $1.9 million and represents an increase to the amortized cost of the hedged loans. See “Note 8. Derivative Instruments and Hedging Activities” for additional information.

Commercial Lending Credit Quality Indicators

The Company evaluates the credit quality of its commercial loan portfolio based on regulatory risk ratings. The Company categorizes loans and leases into risk ratings based on relevant information about the quality and realizable value of collateral, if any, and the ability of obligors to service their debts, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on their associated credit risk and performs this analysis whenever credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. Risk rating classifications consist of the following:

Pass – Loans and leases that the Company believes will fully repay in accordance with the contractual loan terms.

Special Mention – Loans and leases with a potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date.

Substandard – Loans and leases that are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Normal payment from the borrower is in jeopardy, although loss of principal, while still possible, is not imminent.
Doubtful – Loans and leases that have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

Loss – Loans and leases that are considered uncollectible and of little value.

The following tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year:
June 30, 2025 Term Loans and Leases by Origination Year
20252024202320222021PriorTotal
Guaranteed Amount (1)
Equipment finance
Pass $— $— $774 $28,073 $4,434 $11,458 $44,739 $— 
Special mention— — — 254 416 — 670 — 
Substandard — — — 197 4,285 — 4,482 — 
Doubtful — — — — — — — — 
Loss— — — — — — — — 
Total equipment finance— — 774 28,524 9,135 11,458 49,891 — 
Commercial real estate
Pass 50,805 38,178 75,608 97,608 32,920 125,765 420,884 36,397 
Special mention— — — — — 6,177 6,177 — 
Substandard — — — 433 8,439 11,767 20,639 7,238 
Doubtful — — — — — 63 63 — 
Loss— — — 1,121 271 449 1,841 1,543 
Total commercial real estate50,805 38,178 75,608 99,162 41,630 144,221 449,604 45,178 
Commercial and industrial
Pass 6,143 33,356 25,317 17,935 23,286 13,110 119,147 77,117 
Special mention— — — 9,179 2,605 72 11,856 9,776 
Substandard — — 6,028 7,967 2,631 2,223 18,849 12,875 
Doubtful — — — 3,646 1,431 508 5,585 4,660 
Loss— 744 1,914 4,661 — 7 7,326 7,326 
Total commercial and industrial6,143 34,100 33,259 43,388 29,953 15,920 162,763 111,754 
Total commercial loans and leases held for investment$56,948 $72,278 $109,641 $171,074 $80,718 $171,599 $662,258 $156,932 
(1)    Represents loan balances guaranteed by the Small Business Association (SBA).
December 31, 2024 Term Loans and Leases by Origination Year
20242023202220212020PriorTotal
Guaranteed Amount (1)
Equipment finance
Pass $— $1,519 $32,544 $7,790 $9,101 $6,643 $57,597 $— 
Special mention— — 335 602 — — 937 — 
Substandard — — 776 4,922 — — 5,698 — 
Doubtful — — — — — — — — 
Loss— — — — — — — — 
Total equipment finance— 1,519 33,655 13,314 9,101 6,643 64,232 — 
Commercial real estate
Pass 22,847 67,692 89,903 21,174 27,947 106,060 335,623 31,499 
Special mention— — — — 252 6,276 6,528 — 
Substandard — — 2,430 8,441 7,987 10,791 29,649 8,940 
Doubtful — — — — — — — — 
Loss— — 1,121 271 — 593 1,985 1,543 
Total commercial real estate22,847 67,692 93,454 29,886 36,186 123,720 373,785 41,982 
Commercial and industrial
Pass 28,030 29,186 31,697 27,474 5,503 12,678 134,568 85,269 
Special mention635 — 5,165 2,652 76 — 8,528 7,065 
Substandard — 4,071 13,110 2,311 1,399 1,670 22,561 14,879 
Doubtful — — 3,279 1,477 506 285 5,547 4,671 
Loss282 2,094 4,224 568 — 14 7,182 7,182 
Total commercial and industrial28,947 35,351 57,475 34,482 7,484 14,647 178,386 119,066 
Total commercial loans and leases held for investment$51,794 $104,562 $184,584 $77,682 $52,771 $145,010 $616,403 $161,048 
(1)    Represents loan balances guaranteed by the SBA.

The following tables present an analysis of the past due loans and leases HFI at amortized cost within the commercial portfolio segment:
June 30, 202530-59
Days		60-89
Days		90 or More
Days
Total Days Past Due
Guaranteed Amount (1)
Equipment finance$— $— $4,042 $4,042 $— 
Commercial real estate— 528 10,222 10,750 8,456 
Commercial and industrial
1,057 672 18,215 19,944 16,825 
Total commercial loans and leases held for investment$1,057 $1,200 $32,479 $34,736 $25,281 
December 31, 202430-59
Days		60-89
Days		90 or More
Days
Total Days Past Due
Guaranteed Amount (1)
Equipment finance$67 $— $4,551 $4,618 $— 
Commercial real estate8,320 483 9,731 18,534 8,456 
Commercial and industrial
6,257 1,182 15,971 23,410 18,512 
Total commercial loans and leases held for investment$14,644 $1,665 $30,253 $46,562 $26,968 
(1)    Represents loan balances guaranteed by the SBA.
Loan Modifications

The Company has loan modification programs to assist borrowers experiencing financial difficulty and to mitigate losses and maximize collections for loans serviced by the Company. The table below presents the amortized cost of loans that were modified during the periods presented, by modification type:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Short-term payment reduction
$6,892 $10,926 $12,686 $22,445 
Permanent loan modification
1,764 1,778 3,286 3,092 
Debt settlement
2,859 6,153 2,903 6,264 
Total loan modifications – unsecured personal loans
$11,515 $18,857 $18,875 $31,801 
% of unsecured personal loans at amortized cost as of period end
0.3 %0.6 %0.6 %1.0 %

The Company expanded its digital channels to enable borrowers experiencing financial difficulty to qualify for a short-term payment reduction modification program. Under this program, borrowers may receive a temporary payment reduction for three months. If the borrower meets the temporary payment reduction requirements during the first three-month term, they may qualify for a payment reduction for an additional three months. Receiving an additional three months of payment reduction is considered an other-than-insignificant payment delay and becomes a short-term payment reduction modification. The short-term payment reduction modification results in a term extension of five to eight months compared to the original maturity date of the loan and does not include any principal or interest forgiveness. At the time of receiving a payment reduction, a delinquent loan resets to current status. However, if a borrower fails to comply with the modified terms, the delinquency status returns to the original contractual terms of the loan. Borrowers who were in their first three months of temporary payment reduction had a total of $11.7 million of loan balances at amortized cost outstanding as of June 30, 2025, and may subsequently be eligible for a short-term payment reduction modification.

Permanent loan modifications include both a reduction in contractual interest rates and an extension to the contractual maturity date of up to twelve months and do not include any principal forgiveness. To qualify for this modification, borrowers must meet the Company’s debt-to-income ratio requirements. During the second quarter and first half of 2025, the weighted-average interest rate reduction under this program was approximately 8.0% and 8.1%, respectively. During the second quarter and first half of 2024, the weighted-average interest rate reduction under this program was approximately 7.5% and 7.9%, respectively. The weighted-average maturity date extension was approximately twelve months for all periods.

Debt settlement modifications, which include engaging with third-party debt settlement companies, reduce the principal and interest amounts owed by borrowers. The Company typically charges-off such loans within a few months following the modification, as payments under the modified agreement are less than the original contractual amounts.
The following table presents the delinquency status of the amortized cost of loan modifications as of the periods presented below that were modified during the preceding twelve months:
June 30, 2025June 30, 2024
Short-term Payment ReductionPermanent Loan ModificationDebt SettlementShort-term Payment ReductionPermanent Loan ModificationDebt Settlement
Unsecured personal loans
Current$17,743 $5,433 $— $21,215 $4,317 $161 
30-59 days1,372 135 — 1,850 177 23 
60-89 days1,240 242 535 1,526 281 616 
90 or more days1,074 153 2,374 896 148 5,622 
Total loan modifications$21,429 $5,963 $2,909 $25,487 $4,923 $6,422 

A modified loan is generally charged-off in the event of a borrower defaulting at 120 days past due. The table below presents the total amount of charge-offs during the period for loan modifications that were entered into within the preceding twelve months of charge-off:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Short-term payment reduction
$2,132 $1,367 $4,718 $1,560 
Permanent loan modification
381 489 903 928 
Debt settlement
8,829 20,197 22,165 41,972 
Total loan modifications – unsecured personal loans
$11,342 $22,053 $27,786 $44,460 

Nonaccrual Assets

Nonaccrual loans and leases are those for which accrual of interest has been suspended. 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.

Certain loans on nonaccrual status may be considered collateral-dependent loans if the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale of the collateral. Such loans are secured by various types of collateral, including real estate, auto, equipment, among others. Expected credit losses for the Company’s collateral-dependent loans are calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. The fair value of the underlying collateral is generally based on third-party appraisals, which are updated on a case-by-case basis.
The following table presents nonaccrual loans and leases:
June 30, 2025December 31, 2024
Nonaccrual
Nonaccrual with no related ACL (1)
Nonaccrual
Nonaccrual with no related ACL (1)
Unsecured personal$15,518 $— $21,387 $— 
Residential mortgages358 358 295 295 
Secured consumer328 — 337 — 
Total nonaccrual consumer loans held for investment16,204 358 22,019 295 
Equipment finance4,042 — 4,516 — 
Commercial real estate10,809 5,896 18,280 5,345 
Commercial and industrial25,909 9,197 27,489 7,501 
Total nonaccrual commercial loans and leases held for investment (2)
40,760 15,093 50,285 12,846 
Total nonaccrual loans and leases held for investment$56,964 $15,451 $72,304 $13,141 
(1)     Subset of total nonaccrual loans and leases.
(2)     Includes $29.5 million and $31.2 million in loan balances guaranteed by the SBA as of June 30, 2025 and December 31, 2024, respectively.

June 30, 2025December 31, 2024
Nonaccrual
Nonaccrual Ratios (1)
Nonaccrual
Nonaccrual Ratios (1)
Total nonaccrual consumer loans held for investment$16,204 0.4 %$22,019 0.6 %
Total nonaccrual commercial loans and leases held for investment40,760 6.2 %50,285 8.2 %
Total nonaccrual loans and leases held for investment$56,964 1.3 %$72,304 1.8 %
(1)     Calculated as the ratio of non-accruing loans and leases to loans and leases HFI at amortized cost.