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EX - 99.1 2 q121 exhibit991er.htm EX - 99.1 LendingClub EXHIBIT 99.1 LendingClub Reports First Quarter 2021 Results Sequential Revenue Growth of 40 % Exceeds High End of Guidance Raising Full Year Outlook SAN FRANCISCO - April 28 , 2021 – LendingClub Corporation ( NYSE : LC ) , America's leading digital marketplace bank , today announced financial results for the first quarter ended March 31 , 2021 . " 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 , " said Scott Sanborn , CEO of LendingClub . “ Personal loans are paving the road to our broader ambitions as our vertically integrated model delivers a new and recurring revenue stream , lowers our issuance costs and generates strong and sustained growth . " Results Reflect Completed Acquisition of Radius ( now LendingClub Bank ) and Strong Sequential Growth • 63 % sequential growth in origination volume . • • • 40 % sequential growth in total revenue , driven by growth in originations , partially offset by revenue deferrals on originations retained on the balance sheet . 。 20 % sequential growth in non - interest income , representing 83 % of total revenue . ° New , recurring revenue stream of net interest income of $ 18.5 million compared to $ 2.9 million in the fourth quarter of 2020 . Stronger first quarter revenue growth improved bottom line results versus our guidance . First quarter 2021 net loss of $ 47 million included $ 44 million of the following notable items : $ 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 . ( $ in millions ) Loan originations Total revenue Consolidated net loss March 31 , 2021 Three Months Ended December 31 , 2020 QoQ % $ 1,483.2 $ 105.8 $ ( 47.1 ) $ 912.0 75.5 63 % 40 % ( 26.7 ) 76 % Strategic and Financial Benefits of Digital Bank Acquisition Are Being Realized Immediately . • Successfully transitioned to all new personal loan originations being issued through LendingClub Bank as we exited the quarter , saving on issuing fees previously paid to a third - party issuing bank partner . Retained $ 344 million of personal loans , building an attractive and recurring revenue stream which generates approximately 3x the earnings of loans sold through the marketplace . • • Benefited from a core deposit base of over $ 2 billion from the acquisition , reducing overall funding costs by approximately 300 basis points compared to 2020 . Leveraged new digital banking capabilities and extended support of the Paycheck Protection Program ( PPP ) , which has cumulatively facilitated over $ 870 million of loans to help small businesses keep over 75,000 people employed . 1