LendingClub Grows LevelUp Base as Loan Originations Rise

Core Insights - LendingClub experienced a significant increase in lending activity, with loan originations rising 40% year over year to $2.6 billion, driven by product changes, marketing expansion, and improved pricing [2][3] - The company's LevelUp products, which include savings and checking offerings, are becoming a key driver of engagement and growth, with double-digit growth rates reported [4][5] Lending Activity - Loan originations reached $2.6 billion, a 40% increase year over year, with contributions from all product lines [2] - Marketplace revenue increased by 36% from the previous year, supported by higher volumes and improved loan sale pricing [3] LevelUp Product Performance - LevelUp savings is growing at double-digit rates, generating 20% to 30% more monthly logins compared to legacy products [4] - Personal loan borrowers accounted for over 15% of new deposit accounts, with average savings balances exceeding $15,000 for those who repaid loans [4] Financial Metrics - Total deposits reached $9.8 billion, an 8% increase year over year, providing funding for loan growth [5] - Net interest margin rose to 6%, up 56 basis points from the prior year, indicating improved profitability [6] Credit Performance - Provision for credit losses totaled $47 million, with net charge-offs declining by 80 basis points year over year [7] - Delinquency and charge-off metrics remained below competitors, attributed to strong underwriting discipline [7] Future Outlook - For Q1 2026, LendingClub expects loan originations between $2.55 billion and $2.65 billion, representing 28% to 33% growth [8] - Full-year guidance anticipates originations of $11.6 billion to $12.6 billion, reflecting a 21% to 31% increase [8] - Despite growth expectations, shares declined by 7% post-earnings, possibly due to concerns over margin dynamics and increased marketing costs [8][9]