12. Net Interest Income

Revenues primarily result from interest income and fees. We classify interest and fees earned on our Member Loans together as interest income on these consolidated financial statements.

The following table summarizes interest income, interest expense and net interest income as follows:


	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Interest income:

Member Loans at fair value:
Interest income	$	6,277,944		$	2,621,387		$	11,269,335		$	4,505,972
Origination fees		2,940,193			1,521,953			5,384,137			2,666,910

Total interest income, Member Loans at fair value		9,218,137			4,143,340			16,653,472			7,172,882

Member Loans at amortized cost		155,376			223,512			343,528			450,339

Cash and cash equivalents		4,271			10,485			10,042			16,803


Total interest income	$	9,377,784		$	4,377,337		$	17,007,042		$	7,640,024


Interest expense:
Notes:

Interest expense	$	6,224,160		$	2,621,387		$	11,215,551		$	4,505,972
Interest expense reduction for servicing fee		(281,837	)		(111,919	)		(507,759	)		(217,074	)

Net interest expense, Notes		5,942,323			2,509,468			10,707,792			4,288,898

Loans Payable:
Interest expense		46,295			179,902			114,700			400,583
Amortization of loan discounts		23,134			74,834			57,117			149,668

Total interest expense, Loans Payable		69,429			254,736			171,817			550,251


Total interest expense	$	6,011,752		$	2,764,204		$	10,879,609		$	4,839,149


Net Interest Income	$	3,366,032		$	1,613,133		$	6,127,433		$	2,800,875

We had net interest income of $3,366,032 and $1,613,133 for the three months ended September 30, 2011 and 2010, respectively, and $6,127,433 and $2,800,875 for the six months ended September 2011 and 2010, respectively. Our net interest revenue is primarily comprised of loan origination fees we collect from borrower members and, to a lesser extent, the servicing fees we collect from investor members. Loan origination fees recognized in income at the time of origination of Member Loans at fair value were $2,940,193 and $1,521,953 for the three months ended September 30, 2011 and 2010, respectively, and $5,384,137 and $2,666,910 for the six months ended September 2011 and 2010, respectively. Servicing fees collected from investor members were $281,837 and $111,919 for the three months ended September 30, 2011 and 2010, respectively, and $507,759 and $217,074 for the six months ended September 2011 and 2010, respectively.