During the first quarter, LendingClub is typically affected by the seasonality of the lending business so it’s beneficial to look both at the last quarter as well as the prior year period. In the first quarter of 2018, LendingClub posted originations of $2.3 billion. This represents a 5% decrease from the previous quarter, but an increase of 18% from the prior year period.
Revenue came in at $151.7 million, down 3% from the previous quarter but up 22% from the prior year period. They incurred a GAAP net loss of $31.2 million which included legal expenses related to legacy issues of $17 million.
One of the most interesting things to look at every quarter is LendingClub’s platform mix. Below I’ve included data which includes platform mix all of the way back to Q1 2015. Together, these charts tell the story of LendingClub’s evolution over time. In Q1 2018 banks funded 48% of loans on the platform. Over time we’ve also seen loans funded by retail investors, marked “self-directed” below continue to fall to its lowest point in the data included below. Individual investors funded $222 million of loans in Q1 2018 or about 10% of originations. [Read more…]