LendingClub(US:LC)2025-10-22 20:19Financial 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]