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]