SAN FRANCISCO—LendingClub reported growth across its business in the first quarter as it prepares to rebrand as Happen Bank and expand further into areas such as home improvement, according to company statements and earnings materials.
“All of our consumer businesses showed strong growth, supported by the compelling experience and value we deliver,” Chief Financial Officer Drew LaBenne said during the company’s April 27 earnings call, according to LendingClub.
The company said it recorded a 31% year-over-year increase in loan originations, reaching $2.7 billion in the first quarter, while deposits grew 14% to $10.2 billion, based on its earnings release. LendingClub attributed the growth in originations to strong borrower demand as well as its marketing and product initiatives, according to the company.
CEO Scott Sanborn said during the earnings call that the company is focused on serving what it described as the “motivated middle”—consumers with relatively high credit scores and incomes who are focused on financial progress.
Present at ‘Point of Decision’
“Our strong funding and proven ability to underwrite loans through a seamless experience is extensible to other categories where the motivated middle is able to make responsible use of credit through our major purchase finance business,” Sanborn said, according to LendingClub. “We’re increasingly present with them at the point of decision, whether they’re getting braces for their kids or trying to start a family with fertility treatments.”
The company said the results come as it continues to broaden its product offerings and prepare for its planned rebranding, which it has said reflects its evolution into a more diversified, digital-first bank.
