LendingClub Stock Slides Despite Revenue Beat As Credit Loss Provisions Weigh On Q1 — Retail Bulls Hold Ground

The parent of LendingClub Bank reported first-quarter revenue of $217.7 million, topping Wall Street’s expectations of $214 million.

LendingClub Corp (LC) stock fell 6.7% in premarket trading on Wednesday after a rise in provision for credit losses took the shine off a first-quarter revenue beat.

The parent of LendingClub Bank reported first-quarter revenue of $217.7 million, topping Wall Street’s expectations of $214 million.

The San Francisco-based firm’s total assets rose 13% to $10.5 billion, compared to $9.2 billion in the prior year, driven primarily by the success of its Structured Certificates program, as well as the acquisition of a $1.3 billion loan portfolio issued by LendingClub in the third quarter of 2024.

LendingClub reported a net income of $11.7 million, or $0.10 per share, for the three months ended March 31, compared with $9.7 million, or $0.08 per share, a year earlier.

Its provision for credit losses rose to $58.1 million, compared with $31.9 million, driven by a rise in held-for-investment whole loan retention and additional allowance to reflect macroeconomic uncertainty.

The company’s net interest margin increased to 5.97%, compared to 5.75% in the prior year quarter.

LendingClub said deposits to the bank rose 18% to $8.9 billion compared to $7.5 billion in the prior year.

The company projected loan originations between $2.1 billion and $2.3 billion in the second quarter.

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (92/100) territory from ‘bullish’(67/100) a day ago, while retail chatter rose to ‘extremely high.’

One retail trader said under the current “Trump Climate,” the company’s earnings report was excellent.

LendingClub stock has fallen 33% year to date (YTD).

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