LendingClub Corp. saw total deposits increase by almost 13% in the first quarter as the collapse of three regional banks roiled the US financial system last month.
(Bloomberg) — LendingClub Corp. saw total deposits increase by almost 13% in the first quarter as the collapse of three regional banks roiled the US financial system last month.
The San Francisco-based online lender reported $7.22 billion in total deposits at the end of the first quarter, up from $6.39 billion as of Dec. 31, the firm said in a statement Wednesday.
“While we expect continued industry and macro headwinds,” advantages including a growing online consumer deposit business “provide us with a range of options to navigate the current macro environment,” Chief Executive Officer Scott Sanborn said in the statement.
Soon after Silicon Valley Bank collapsed into government receivership last month, LendingClub disclosed that it had deposits stuck at the bank, making it one of many businesses directly impacted by the tumult.
The cost of borrowing has skyrocketed, and some fintech lenders have struggled to keep pace with the Federal Reserve’s interest-rate hikes. LendingClub has differentiated itself from other fintech lenders by acquiring a bank charter, although the measure hasn’t entirely insulated the bank from the higher-rate environment. LendingClub’s total loan originations have been on the decline since the second quarter of last year.
The company reported a 66% decline in net income to $13.7 million from a year earlier. Earnings of 13 cents a share topped the 7-cent average estimate in a Bloomberg survey.
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