The company’s financial results come on the heels of its acquisition of Radius, which is now known as LendingClub Bank.
“We had a great start to the year, accelerating personal loan origination growth by leveraging our strategic advantages including our customer base of 3 million members, our data and technology capabilities, and our newly acquired digital bank,” LendingClub CEO Scott Sanborn said in the announcement.
Management said in the announcement that the company moved to having each of its new personal loan originations being issued via LendingClub Bank as it left the quarter. The move saved on issuing fees that were paid to a third-party issuing bank partner in the past.
As for its overall first quarter results, LendingClub posted a consolidated net loss of $47.1 million on $105.8 million in total revenue, according to the announcement.
Management said in the announcement that the $47 million net loss for the first quarter included “$21 million of Current Expected Credit Loss (CECL) expenses related to acquired loans and loan growth, $14 million of net revenue deferrals on retained loans, and $9 million of non-recurring expenses related to the acquisition of Radius.”
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In March, LendingClub reported as part of its fourth quarter earnings that originations increased 56 percent quarter over quarter.
“We are encouraged by the continued growth in loan originations with volume above the upper end of our fourth quarter guidance range,” Chief Financial Officer Tom Casey said in the firm’s fourth quarter earnings announcement.
As for its overall fourth quarter results, LendingClub posted an adjusted loss of 24 cents per share on $75.9 million in net revenue.
Anuj Nayar, vice president and U.S. financial health officer at LendingClub, previously told PYMNTS that the combination of LendingClub/Radius would make the U.S.’s inaugural publicly traded neobank, with a branchless digital-first approach to financial services.
