LendingClub Releases Q1 2020 Earnings, Anticipates Originations to fall 90% in Q2

We are now getting a sense of the impact of the coronavirus crisis on lenders; yesterday, LendingClub announced their Q1 2020 earnings; just two weeks ago the company made a 30% reduction in their staff; the company is moving forward under five guiding principles: keep employees safe, preserve liquidity, protect investor returns, support members and stay on track for the Radius bank acquisition; In Q1 2020 net losses were $(48.1) million which was impacted by a fair value markdown of $(101.7) million; originations were $2.5 billion in the quarter but LendingClub anticipates originations to fall 90% in the next quarter; they have continued to tighten credit criteria and have also introduced a skip-a-pay program; so far 11% of outstanding loans are enrolled in this program; in this blog post we delve deeper into their earnings including their current plans with the Radius acquisition and the models they are running to ensure they can stay afloat. Lend Academy