Core Insights - LendingClub's loan originations increased by 37% year over year to $2.6 billion, marking the highest level in three years, driven by strong consumer demand and investor interest [1][3][4] - The LevelUp checking product has seen a sevenfold increase in new account openings, with nearly 60% of these accounts being opened by borrowers, indicating deeper engagement within the ecosystem [1][5] Loan Originations and Financial Performance - The company reported a 32% year-over-year increase in revenues, reaching $266 million [3] - Marketplace revenues surged by 75% to $108 million, and structured certificate sales exceeded $1 billion [4] LevelUp Checking Product - The LevelUp checking offering has led to a significant increase in account openings, with 84% of surveyed respondents more likely to consider a LendingClub loan due to the 2% cash back incentive for on-time payments [5] - Monthly app logins from borrowers increased by nearly 50%, contributing to a higher rate of repeat loan issuance through the app [5] Deposit Trends and Portfolio Management - Total deposits at the end of the quarter were $9.4 billion, slightly down from the previous year, primarily due to a $100 million decrease in brokered deposits [6] - The LevelUp savings product has accumulated $3 billion in balances, driving deposit growth [6] Market Position and Investor Appetite - The company is currently competing more with FinTechs than traditional banks, but maintains strong underwriting standards [7] - Investor appetite for loans remains robust, with no signs of decline in interest for various loan products [7] Stock Performance - Shares of LendingClub rose by 7% in after-hours trading following the release of the third-quarter results [8]

Core Insights - LendingClub reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and showing significant growth from $0.13 per share a year ago, resulting in an earnings surprise of +23.33% [1] - The company achieved revenues of $266.23 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.70% and increasing from $201.88 million year-over-year [2] - LendingClub has outperformed consensus EPS estimates three times in the last four quarters and has topped revenue estimates four times in the same period [2] Future Outlook - The sustainability of LendingClub's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $256.57 million, while for the current fiscal year, the estimate is $1.04 on revenues of $979.4 million [7] - The Zacks Rank for LendingClub is currently 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which LendingClub belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported a 37% growth in originations year-over-year, reaching $2.62 billion, exceeding guidance [4][10] - Revenue increased by 32% to $266 million, driven by higher marketplace volume and improved loan sales prices [10][14] - Diluted earnings per share nearly tripled to $0.37, with return on tangible common equity improving to 13.2% [10][18] - Pre-provision net revenue grew 58% to $104 million, reflecting the scalability of the business model [10][14] Business Line Data and Key Metrics Changes - Marketplace revenue surged by 75%, marking the highest level in three years, with structured certificate sales exceeding $1 billion [7][10] - Non-interest income rose to $108 million, benefiting from higher marketplace sales volumes and improved loan sales prices [13] - Net interest income reached an all-time high of $158 million, supported by a larger portfolio of interest-earning assets [14] Market Data and Key Metrics Changes - Total assets grew to $11.1 billion, up 3% compared to the prior quarter, indicating a strong balance sheet [16] - Total deposits ended the quarter at $9.4 billion, with a notable increase in relationship deposits [14] Company Strategy and Development Direction - The company aims to leverage its competitive advantages and innovative products to drive sustainable, profitable growth [4][10] - Plans to invest in marketing to support growth initiatives and expand the balance sheet while maintaining a disciplined approach to underwriting [15][19] - The introduction of new products like LevelUp Checking is designed to enhance member engagement and drive repeat loan issuance [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong loan investor demand and improving loan sales pricing, anticipating originations of $2.5 to $2.6 billion in Q4 [18][19] - The company expects to see a normalized effective tax rate of 25.5% and anticipates two interest rate cuts in Q4 [19] - Management remains cautious about potential seasonality effects on originations due to the holiday season [18] Other Important Information - The company has secured a memorandum of understanding with BlackRock for the purchase of up to $1 billion through its marketplace programs [7] - The tangible book value per share now stands at $11.95, reflecting the company's strong capital position [18] Q&A Session Summary Question: Future disposition plans between various channels - Management indicated a steady approach to held-for-investment targeting roughly $500 million, with strong demand for structured certificates and rated products [23][24] Question: Competitive state of the market and underwriting standards - Management confirmed that they have not seen pressure on underwriting standards despite increased origination volumes across the industry [26][27] Question: Dynamics of loan reserves and fair value adjustments - The increase in loan reserves was attributed to a re-estimation of lifetime losses and growth in businesses like purchase finance [36][32] Question: Demand for marketplace loans and investor appetite - Management noted strong demand for their asset class, with a positive outlook for the fourth quarter despite broader market concerns [46][47] Question: Credit performance and delinquency trends - Management reported stable credit performance with no significant changes in delinquency trends, maintaining a restrictive approach to underwriting [52][53] Question: Updates on product roadmap and new products - Management highlighted ongoing product development, including LevelUp Checking and LevelUp Savings, with more to come [101]

Financial Data and Key Metrics Changes - The company reported a 37% growth in originations year-over-year, reaching $2.62 billion, exceeding guidance [4][10] - Revenue increased by 32% to $266 million, driven by higher marketplace volume and improved loan sales prices [10][14] - Diluted earnings per share nearly tripled to $0.37, with return on tangible common equity improving to 13.2% [10][18] Business Line Data and Key Metrics Changes - Marketplace revenue grew by 75%, marking the highest level in three years, with structured certificate sales exceeding $1 billion [7][10] - Non-interest income rose to $108 million, benefiting from higher marketplace sales volumes and improved loan sales prices [13] - Net interest income reached an all-time high of $158 million, supported by a larger portfolio of interest-earning assets [14] Market Data and Key Metrics Changes - Total deposits ended the quarter at $9.4 billion, with a notable increase in relationship deposits [14] - The company maintained a disciplined approach to deposit pricing while providing value for customers [15] - The balance sheet grew to $11.1 billion, reflecting a 3% increase compared to the prior quarter [16] Company Strategy and Development Direction - The company aims to leverage its competitive advantages and innovative products to drive sustainable, profitable growth [4][10] - Plans to invest in marketing to support growth initiatives and expand origination channels in 2026 [19] - The introduction of new products like LevelUp Checking is designed to enhance member engagement and drive repeat loan issuance [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong loan investor demand and improving loan sales pricing [18] - The company anticipates a typical seasonal decline in originations during Q4 but expects year-over-year growth of 35%-41% [18] - Management noted that credit performance remains strong, with delinquency and charge-off metrics in line with expectations [15][16] Other Important Information - The company has secured a memorandum of understanding with BlackRock for up to $1 billion in purchases through 2026 [7] - The tangible book value per share is now $11.95, reflecting the company's strong capital position [18] Q&A Session Summary Question: Future disposition plans between various channels - Management indicated a steady approach to held-for-investment (HFI) targets, with a focus on maintaining demand for structured certificates and rated products [23][24] Question: Competitive state of the market and underwriting standards - Management confirmed that they have not seen pressure on underwriting standards despite increased origination volumes across the industry [26][27] Question: Dynamics of loan reserves and fair value adjustments - The increase in loan reserves was attributed to a combination of factors, including growth in the purchase finance business and a one-time adjustment from the previous quarter [36][32] Question: Demand for marketplace loans and investor appetite - Management noted strong demand for their asset class, with a positive outlook for the fourth quarter despite broader market concerns [45][46] Question: Insights on marketing expenses and acquisition costs - Management emphasized a focus on profitable, sustainable growth, with ongoing optimization of marketing channels to improve customer acquisition costs [75][76]

Financial Data and Key Metrics Changes - The company reported a 37% growth in originations year-over-year, reaching $2.62 billion, exceeding guidance [4][10] - Revenue increased by 32% to $266 million, driven by higher marketplace volume and improved loan sales prices [10][12] - Diluted earnings per share nearly tripled to $0.37, with return on tangible common equity improving to 13.2% [10][18] - Pre-provision net revenue grew 58% to $104 million, reflecting the scalability of the business model [10][12] Business Line Data and Key Metrics Changes - Marketplace revenue surged by 75%, marking the highest level in three years, with structured certificate sales exceeding $1 billion [6][10] - Non-interest income rose to $108 million, benefiting from higher marketplace sales volumes and improved loan sales prices [12][13] - Net interest income reached an all-time high of $158 million, supported by a larger portfolio of interest-earning assets [13] Market Data and Key Metrics Changes - Total deposits ended the quarter at $9.4 billion, with a slight decrease attributed to a drop in broker deposits [13][14] - The company maintained a disciplined approach to deposit pricing while providing value to customers [14] Company Strategy and Development Direction - The company is focused on sustainable, profitable growth, leveraging its digital marketplace bank model [10][19] - Plans to invest in marketing to support growth initiatives and expand origination channels in 2026 [19] - The introduction of innovative products like LevelUp Checking is aimed at enhancing member engagement and driving new product adoption [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong loan investor demand and improving loan sales pricing, anticipating continued growth [18][19] - The company expects originations in Q4 to be between $2.5 billion and $2.6 billion, reflecting a year-over-year increase of 35% to 41% [18] - Management noted that the competitive landscape remains stable, with no significant pressure on underwriting standards [26][27] Other Important Information - The company has secured a memorandum of understanding with BlackRock for up to $1 billion in purchases through 2026 [6] - The balance sheet remains strong, with total assets growing to $11.1 billion, allowing for recurring revenue generation [16][17] Q&A Session Summary Question: Future disposition plans between various channels - Management indicated a steady approach to held-for-investment targets, with a focus on maintaining a balanced mix across channels [21][22][23] Question: Competitive state of the market and underwriting standards - Management confirmed that they have not seen pressure on underwriting standards, maintaining discipline in their approach [25][26][27] Question: Dynamics of loan reserves and fair value adjustments - Management explained that the increase in reserves was due to growth in certain businesses and a re-estimation of lifetime losses [36][37] Question: Demand for marketplace loans and investor appetite - Management noted strong demand for their loans and highlighted their established track record as a competitive advantage [44][45] Question: Credit performance and delinquency trends - Management reported stable credit performance, with no significant changes in application quality despite broader economic concerns [51][52] Question: Updates on product roadmap and new products - Management confirmed ongoing product development, including LevelUp Checking and LevelUp Savings, with more to come [99]

Financial Data and Key Metrics Changes - The company reported a 37% growth in originations, reaching $2,620,000,000, which exceeded guidance [6][12] - Revenue increased by 32% to $266,000,000, driven by higher marketplace volume and improved loan sales prices [12][22] - Diluted earnings per share nearly tripled to $0.37, and return on tangible common equity improved to 13.2% [21][22] - Pre-provision net revenue grew 58% to $104,000,000, reflecting the scalability of the business model [12][22] Business Line Data and Key Metrics Changes - Marketplace revenue surged by 75% to its highest level in three years, with structured certificate sales totaling over $1,000,000,000 [7][12] - Non-interest income also grew by 75% to $108,000,000, benefiting from higher marketplace sales volumes and improved loan sales prices [15][22] - Net interest income reached an all-time high of $158,000,000, supported by a larger portfolio of interest-earning assets [16][22] Market Data and Key Metrics Changes - Total assets grew to $11,100,000,000, up 3% compared to the prior quarter [20] - Total deposits ended the quarter at $9,400,000,000, with a slight decrease attributed to a drop in brokered deposits [17] - The Level Up savings product approached $3,000,000,000 in balances, representing the majority of deposit growth this year [18] Company Strategy and Development Direction - The company aims to leverage its competitive advantages, including strong credit performance and innovative products, to drive sustainable growth [5][9] - There is a focus on expanding marketing efforts and enhancing member engagement through new products like LevelUp checking [10][11] - The company plans to continue growing its held-for-investment portfolio while maintaining a disciplined approach to underwriting [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for loans and the resilience of the balance sheet, which is expected to support future growth [5][22] - The company anticipates a typical seasonal decline in originations during Q4 but expects to deliver originations of $2,500,000,000 to $2,600,000,000, representing a year-over-year increase of 35% to 41% [22][23] - Management noted that the charge-off ratio is expected to revert to more normalized levels as recent vintages mature [19] Other Important Information - The company secured a memorandum of understanding with BlackRock for the purchase of up to $1,000,000,000 through its marketplace programs [8] - The company is in the final stages of planning a potential rebranding to broaden its market appeal [116] Q&A Session Summary Question: Future disposition plans between various channels - Management indicated a steady approach for held-for-investment targets, with a focus on structured certificates and maintaining demand for those products [27][30] Question: Competitive state of the market and underwriting standards - Management confirmed that they have not seen pressure on underwriting standards despite increased competition, maintaining a disciplined approach [32][34] Question: Higher loss in net fair value adjustment - The decrease in fair value adjustment was attributed to a smaller positive adjustment compared to the previous quarter and natural roll-down from a larger extended seasoning portfolio [39][41] Question: Loan reserve dynamics - The increase in reserves was due to a one-time adjustment in the previous quarter and the longer duration of new business lines, which requires higher upfront charges [43] Question: Demand for marketplace loans and investor appetite - Management noted strong demand for their asset class, with no significant fade in appetite from institutional investors [54][56] Question: Credit performance and delinquency trends - Management reported that they are not seeing significant changes in credit quality, maintaining strict underwriting standards [62][64] Question: BlackRock program and insurance sales channel - Management clarified that the BlackRock program involves institutional investors and emphasized the depth of the insurance capital pool [94][95]

Third Quarter 2025 Results October 22, 2025 Disclaimer 2 Award-Winning, Member-Focused Digital Marketplace Bank Members1 5+ Million Originations1 $100+ Billion Best Personal Loan for Debt Consolidation Best Checking Account Overall Average Customer Review2 4.83 Out of 5 stars Net Promoter Score (NPS)3 81 Best High Yield Savings Account 1) Totalmembers and originations based on lifetime volume across all consumer products as of March 31, 2025. "Members" defined as consumers who have taken a LendingClub produ ...

LendingClub (NYSE:LC) shares shot up 12% in Wednesday after-hours trading after posting better-than-expected earnings for Q3 2025, with pre-provision net revenue and loan origination volume both rising markedly. The consumer finance company also issued guidance for Q4 2025. Loan originations are ...

Financial Performance - Achieved record pre-tax income of $57 million, with a return on equity (ROE) of 12.4% and return on tangible common equity (ROTCE) of 13.2%[2] - Diluted earnings per share (EPS) nearly tripled to $0.37 compared to the prior year, reflecting a 185% increase[6] - Net income for the quarter was $44,274 thousand, up 16% Q/Q and 206% Y/Y[22] - Basic EPS rose to $0.39, an 18% Q/Q increase and 200% Y/Y growth[22] - Pre-provision net revenue (PPNR) increased by 58% to $103.5 million compared to $65.5 million in the prior year[6] - Total net revenue reached $266,231 thousand, reflecting a 7% Q/Q and 32% Y/Y increase[22] - Non-interest income increased to $107,792 thousand, a 14% quarter-over-quarter (Q/Q) and 75% year-over-year (Y/Y) growth[22] Loan Originations and Portfolio - Loan originations reached $2.6 billion, representing a 37% increase year-over-year, while total net revenue increased by 32% to $266.2 million[6] - Total loan originations amounted to $2,622 million, representing a 10% Q/Q and 37% Y/Y increase[22] - Future loan originations are projected between $2.5 billion and $2.6 billion for the fourth quarter of 2025[8] - Total loans and leases held for investment amounted to $4,890,619 thousand with a net interest income of $141,530 thousand, resulting in a yield of 11.58% for the three months ended September 30, 2025[32] Asset and Deposit Growth - Total assets grew to $11.1 billion, up 4% year-to-date, with deposits of $9.4 billion, slightly down from $9.5 billion in the prior year[6] - Total assets increased to $11,072,515 thousand as of September 30, 2025, compared to $10,630,509 thousand at December 31, 2024, reflecting a growth of approximately 4.16%[35] - Total deposits increased by 3% quarter-over-quarter to $9,388,233, but decreased by 1% year-over-year[24] - The company’s total deposits reached $9,388,233 thousand, an increase from $9,068,237 thousand at December 31, 2024[35] Credit Quality and Risk Management - Net charge-offs in the held-for-investment loan portfolio improved to $31.1 million, down from $55.8 million in the prior year, indicating strong credit performance[6] - Net charge-offs for the quarter were $31,122, resulting in a net charge-off ratio of 2.9%[24] - The allowance for loan and lease losses increased by 6% quarter-over-quarter to $267,774, reflecting a 21% increase year-over-year[24] - Provision for credit losses increased to $46,280,000 in Q3 2025, a 16% increase from $39,733,000 in Q2 2025 but a 3% decrease from $47,541,000 in Q3 2024[30] Efficiency and Cost Management - Efficiency ratio improved to 61%, down from 68% in the prior year, driven by effective cost management and the implementation of AI technologies[6] - Total non-interest expense was $162,713,000 in Q3 2025, a 5% increase from $154,718,000 in Q2 2025 and a 19% increase from $136,332,000 in Q3 2024[30] Future Outlook and Strategic Initiatives - The company announced a memorandum of understanding (MOU) with BlackRock for up to $1 billion investment through LendingClub's marketplace programs by 2026[2] - The company plans to hold an Investor Day on November 5, 2025, to discuss future strategies and performance[6]

Third Quarter 2025 Results Highlights : Balance Sheet: Financial Performance: | Three Months Ended | % Change | | | | | | --- | --- | --- | --- | --- | --- | | ($ in millions, except per share amounts) | September 30, 2025 | June 30, 2025 | September 30, 2024 | Q/Q | Y/Y | | Total net revenue | $Â Â Â Â Â Â Â Â Â Â Â Â | | $Â Â Â Â Â Â Â Â Â Â Â Â 248.4 $Â Â Â Â Â Â Â Â Â Â Â Â 201.9 7Â % | | 32Â % | | | 266.2 | | | | | | Non-interest expense | 162.7 | 154.7 | 136.3 | 5Â % | 19Â % | | Pre-provision net reve ...