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]