LendingClub records certain loans and leases held for investment (HFI) at amortized cost, whereas loans initially classified as held for sale (HFS) are recorded at fair value. 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. Accrued interest within that caption related to loans and leases HFI was $27.0 million and $15.6 million as of September 30, 2022 and December 31, 2021, respectively.


	September 30, 2022		December 31, 2021
Unsecured personal	$	3,642,254	$	1,804,578
Residential mortgages	197,776		151,362
Secured consumer	180,768		65,976

Total consumer loans held for investment	4,020,798		2,021,916
Equipment finance (1)	167,447		149,155
Commercial real estate	372,406		310,399
Commercial and industrial (2)	246,276		417,656
Total commercial loans and leases held for investment	786,129		877,210
Total loans and leases held for investment	4,806,927		2,899,126
Allowance for loan and lease losses	(303,201)		(144,389)
Loans and leases held for investment, net (3)	$	4,503,726	$	2,754,737


September 30, 2022	Gross		ALLL		Net		Allowance Ratios (1)
Total consumer loans held for investment	$	4,020,798	$	288,138	$	3,732,660	7.2	%
Total commercial loans and leases held for investment (2)	786,129		15,063		771,066		1.9	%
Total loans and leases held for investment (2)	$	4,806,927	$	303,201	$	4,503,726	6.3	%


December 31, 2021	Gross		ALLL		Net		Allowance Ratios (1)
Total consumer loans held for investment	$	2,021,916	$	128,812	$	1,893,104	6.4	%
Total commercial loans and leases held for investment (2)	877,210		15,577		861,633		1.8	%
Total loans and leases held for investment (2)	$	2,899,126	$	144,389	$	2,754,737	5.0	%

(2) As of September 30, 2022, excluding the $89.4 million of PPP loans, the ALLL represented 2.2% of commercial loans and leases HFI and 6.4% of total loans and leases HFI. As of December 31, 2021, excluding $268.3 million of PPP loans, the ALLL represented 2.6% of commercial loans and leases HFI and 5.5% of total loans and leases HFI. PPP loans are guaranteed by the Small Business Administration (SBA) and, therefore, the Company determined no ACL is required on these loans.


	Three Months Ended September 30,
	2022						2021
	Consumer		Commercial		Total		Consumer		Commercial		Total
Allowance for loan and lease losses, beginning of period	$	228,184	$	15,076	$	243,260	$	54,058	$	17,023	$	71,081
Credit loss expense for loans and leases held for investment	81,935		664		82,599		37,695		(562)		37,133

Charge-offs (1)	(22,944)		(784)		(23,728)		(3,142)		(1,194)		(4,336)
Recoveries	963		107		1,070		20		838		858
Allowance for loan and lease losses, end of period	$	288,138	$	15,063	$	303,201	$	88,631	$	16,105	$	104,736

Reserve for unfunded lending commitments, beginning of period	$	136	$	1,889	$	2,025	$	—	$	390	$	390
Credit loss expense for unfunded lending commitments	(78)		218		140		50		837		887
Reserve for unfunded lending commitments, end of period (2)	$	58	$	2,107	$	2,165	$	50	$	1,227	$	1,277


	Nine Months Ended September 30,
	2022						2021
	Consumer		Commercial		Total		Consumer		Commercial		Total
Allowance for loan and lease losses, beginning of period	$	128,812	$	15,577	$	144,389	$	—	$	—	$	—
Credit loss expense for loans and leases held for investment (3)	203,967		913		204,880		91,194		4,468		95,662
Initial allowance for PCD loans acquired during the period (4)	—		—		—		603		11,837		12,440
Charge-offs (1)	(46,668)		(2,001)		(48,669)		(3,232)		(1,350)		(4,582)
Recoveries	2,027		574		2,601		66		1,150		1,216
Allowance for loan and lease losses, end of period	$	288,138	$	15,063	$	303,201	$	88,631	$	16,105	$	104,736

Reserve for unfunded lending commitments, beginning of period	$	—	$	1,231	$	1,231	$	—	$	—	$	—
Credit loss expense for unfunded lending commitments	58		876		934		50		1,227		1,277
Reserve for unfunded lending commitments, end of period (2)	$	58	$	2,107	$	2,165	$	50	$	1,227	$	1,277

(4) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date for the first quarter of 2021. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off

policy, an ACL of $18.0 million included as part of the grossed-up loan balance at Acquisition was immediately written-off during the first quarter of 2021. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million for the first quarter of 2021.

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:


September 30, 2022	Term Loans and Leases by Origination Year
	2022		2021		2020		2019		2018		Prior		Total
Unsecured personal
Current	$	2,458,166	$	1,146,225	$	—	$	—	$	—	$	—	$	3,604,391
30-59 days past due	5,758		9,041		—		—		—		—		14,799
60-89 days past due	4,038		8,425		—		—		—		—		12,463
90 or more days past due	2,520		8,081		—		—		—		—		10,601
Total unsecured personal	2,470,482		1,171,772		—		—		—		—		3,642,254
Residential mortgages
Current	43,130		59,682		33,680		21,835		4,573		34,539		197,439
30-59 days past due	—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—
90 or more days past due	—		—		—		—		4		333		337
Total residential mortgages	43,130		59,682		33,680		21,835		4,577		34,872		197,776
Secured consumer
Current	133,644		42,910		—		2,563		—		—		179,117
30-59 days past due	596		389		—		—		—		—		985
60-89 days past due	270		234		—		—		—		—		504
90 or more days past due	67		95		—		—		—		—		162
Total secured consumer	134,577		43,628		—		2,563		—		—		180,768






Total consumer loans held for investment	$	2,648,189	$	1,275,082	$	33,680	$	24,398	$	4,577	$	34,872	$	4,020,798


December 31, 2021	Term Loans and Leases by Origination Year
	2021		2020		2019		2018		2017		Prior		Within Revolving Period		Total
Unsecured personal
Current	$	1,796,678	$	—	$	—	$	—	$	—	$	—	$	—	$	1,796,678
30-59 days past due	3,624		—		—		—		—		—		—		3,624
60-89 days past due	2,600		—		—		—		—		—		—		2,600
90 or more days past due	1,676		—		—		—		—		—		—		1,676
Total unsecured personal	1,804,578		—		—		—		—		—		—		1,804,578
Residential mortgages
Current	36,732		37,620		26,798		7,277		2,682		37,685		1,265		150,059
30-59 days past due	—		—		—		—		—		142		—		142
60-89 days past due	—		—		—		—		92		—		—		92
90 or more days past due	—		—		—		—		251		818		—		1,069
Total residential mortgages	36,732		37,620		26,798		7,277		3,025		38,645		1,265		151,362
Secured consumer
Current	62,731		—		—		—		—		—		10		62,741
30-59 days past due	171		—		—		—		—		—		—		171
60-89 days past due	53		—		—		—		—		—		—		53
90 or more days past due	—		—		—		2,629		382		—		—		3,011
Total secured consumer	62,955		—		—		2,629		382		—		10		65,976






Total consumer loans held for investment	$	1,904,265	$	37,620	$	26,798	$	9,906	$	3,407	$	38,645	$	1,275	$	2,021,916

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 borrowers 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:

Special Mention – Loans and leases with a potential weakness that deserves 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 obligator 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.


September 30, 2022	Term Loans and Leases by Origination Year
	2022		2021		2020		2019		2018		Prior		Total
Equipment finance
Pass	$	55,947	$	42,853	$	28,066	$	20,145	$	12,751	$	3,704	$	163,466
Special mention	—		2,198		—		1,603		—		—		3,801
Substandard	—		—		—		—		180		—		180
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—
Total equipment finance	55,947		45,051		28,066		21,748		12,931		3,704		167,447
Commercial real estate
Pass	84,608		56,575		50,985		52,967		38,941		63,589		347,665
Special mention	—		—		8,415		262		1,242		842		10,761
Substandard	—		—		—		658		2,403		10,364		13,425
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		555		555
Total commercial real estate	84,608		56,575		59,400		53,887		42,586		75,350		372,406
Commercial and industrial
Pass	37,626		126,661		26,382		15,190		4,702		12,710		223,271
Special mention	—		176		1,962		1,852		166		473		4,629
Substandard	—		4,746		4,678		3,812		1,668		1,839		16,743
Doubtful	—		—		111		—		—		287		398
Loss	—		—		—		—		6		1,229		1,235
Total commercial and industrial (1)	37,626		131,583		33,133		20,854		6,542		16,538		246,276
Total commercial loans and leases held for investment	$	178,181	$	233,209	$	120,599	$	96,489	$	62,059	$	95,592	$	786,129


December 31, 2021	Term Loans and Leases by Origination Year
	2021		2020		2019		2018		2017		Prior		Within Revolving Period		Total
Equipment finance
Pass	$	52,440	$	35,398	$	26,918	$	15,457	$	6,184	$	8,814	$	—	$	145,211
Special mention	1,531		—		1,810		—		—		—		—		3,341
Substandard	—		—		—		603		—		—		—		603
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total equipment finance	53,971		35,398		28,728		16,060		6,184		8,814		—		149,155
Commercial real estate
Pass	55,613		55,202		54,460		39,981		22,366		57,235		—		284,857
Special mention	—		8,397		—		1,366		1,018		7,242		—		18,023
Substandard	—		—		277		2,496		—		4,179		—		6,952
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		567		—		567
Total commercial real estate	55,613		63,599		54,737		43,843		23,384		69,223		—		310,399
Commercial and industrial
Pass	241,368		108,574		24,106		7,874		14,756		8,058		599		405,335
Special mention	—		—		2,207		463		1,467		40		—		4,177
Substandard	—		1,122		862		1,858		1,525		1,571		87		7,025
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		52		4		1,063		—		1,119
Total commercial and industrial (1)	241,368		109,696		27,175		10,247		17,752		10,732		686		417,656
Total commercial loans and leases held for investment	$	350,952	$	208,693	$	110,640	$	70,150	$	47,320	$	88,769	$	686	$	877,210


September 30, 2022	30-59 Days		60-89 Days		90 or More Days		Total
Equipment finance	$	—	$	—	$	—	$	—
Commercial real estate	—		101		452		553
Commercial and industrial (1)	—		—		1,650		1,650
Total commercial loans and leases held for investment	$	—	$	101	$	2,102	$	2,203


December 31, 2021	30-59 Days		60-89 Days		90 or More Days		Total
Equipment finance	$	—	$	—	$	—	$	—
Commercial real estate	104		—		609		713
Commercial and industrial (1)	—		—		1,410		1,410
Total commercial loans and leases held for investment	$	104	$	—	$	2,019	$	2,123


	September 30, 2022				December 31, 2021
	Nonaccrual(1)		Nonaccrual with no related ACL(2)		Nonaccrual(1)		Nonaccrual with no related ACL(2)
Unsecured personal	$	10,601	$	—	$	1,676	$	—
Residential mortgages	337		337		1,373		1,373
Secured consumer	162		—		3,011		3,011

Total nonaccrual consumer loans held for investment	11,100		337		6,060		4,384

Equipment finance	180		—		603		—
Commercial real estate	1,013		1,013		989		989
Commercial and industrial	12,214		1,338		2,333		1,061
Total nonaccrual commercial loans and leases held for investment	13,407		2,351		3,925		2,050

Total nonaccrual loans and leases held for investment	$	24,507	$	2,688	$	9,985	$	6,434


	September 30, 2022				December 31, 2021
	Nonaccrual		Nonaccrual Ratios (1)		Nonaccrual		Nonaccrual Ratios (1)
Total nonaccrual consumer loans held for investment	$	11,100	0.28	%	$	6,060	0.30	%
Total nonaccrual commercial loans and leases held for investment	13,407		1.71	%	3,925		0.45	%
Total nonaccrual loans and leases held for investment (2)	$	24,507	0.51	%	$	9,985	0.34	%

Certain loans on non-accrual status and certain TDR loans 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 or operation of the collateral. 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.

Acquired loans are recorded at their fair value, which may result in the recognition of a discount or premium. In addition, the purchase price of PCD loans is grossed-up upon acquisition for the initial estimate of ACL. Subsequent changes to the ACLs are recorded as additions to or reversals of credit losses on the Condensed Consolidated Statements of Income (Income Statement).

(1) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date for the first quarter of 2021. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, an ACL of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off during the first quarter of 2021. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million for the first quarter of 2021.