LendingClub Reports Third Quarter 2025 Results

Core Insights - LendingClub Corporation reported a record pre-tax income of $57 million, achieving a return on equity (ROE) of 12.4% and a return on tangible common equity (ROTCE) of 13.2% for Q3 2025 [1][2] - The company experienced significant growth, with originations increasing by 37%, revenue rising by 32%, and diluted earnings per share (EPS) nearly tripling to $0.37 compared to the previous year [1][8] - An MOU was secured with BlackRock for an investment of up to $1 billion through LendingClub's marketplace programs by 2026 [1] Financial Performance - Total net revenue for Q3 2025 was $266.2 million, a 32% increase from $201.9 million in Q3 2024 [4][8] - Non-interest expense rose to $162.7 million, reflecting a 19% increase year-over-year [4][8] - Pre-provision net revenue (PPNR) increased by 58% to $103.5 million compared to $65.5 million in the prior year [4][8] - Provision for credit losses was $46.3 million, slightly down from $47.5 million in the previous year, indicating strong credit performance [4][8] Balance Sheet Highlights - Total assets reached $11.1 billion, up 4% year-to-date, with total deposits at $9.4 billion [8][22] - The company maintained a strong capital position with a Tier 1 leverage ratio of 12.3% and a CET1 capital ratio of 18.0% [8][22] - Book value per common share increased to $12.68 from $11.95 in the prior year, while tangible book value per common share grew to $11.95 from $11.19 [8][22] Operational Metrics - Loan originations totaled $2.6 billion, a 37% increase from $1.9 billion in the prior year [8][22] - The net interest margin expanded to 6.18%, up from 5.63% in the previous year, driven by improved deposit funding costs [8][22] - The efficiency ratio improved to 61% from 68% in the prior year, reflecting better expense management [8][22] Future Outlook - For Q4 2025, the company projects loan originations between $2.5 billion and $2.6 billion, with PPNR expected to be between $90 million and $100 million [6][8] - ROTCE is anticipated to be in the range of 10% to 11.5% [6]