LendingClub Corp. (LC, Financials) shares fell 17.9% to $13.81 as of 10:37 a.m. ET on Jan. 29 after the digital marketplace bank reported a 13% increase in fourth-quarter loan originations and a 17% rise in total net revenue.
Driven by better marketplace loan sales pricing and a bigger balance sheet that helped to generate more net interest income, the business said revenue rose to $217.2 million from year before. From its held-for-sale portfolio, LendingClub also completed a $400 million loan transaction to a new bank buyer.
Supported by the Structured Certificates program and the third quarter acquisition of a $1.3 billion LendingClub-issued loan portfolio, total assets increased 20% year over year to $10.6 billion. Deposits grew 24% to $9.1 billion; the Federal Deposit Insurance Corp. insures 87% of all deposits.
Slightly below the $10.2 million seen in the previous year, LendingClub reported net income of $9.7 million for the quarter. Among the outcomes were a one-time, post-tax $3.2 million non-cash impairment cost associated with Tally acquired internally generated software. Return on tangible common equity was 3.1%; return on equity of the corporation was 2.9%.
Key indicator of operational effectiveness, pre-provision net incomewhich climbed 34% from $55.6 million in the previous yeargushed $74.3 million.
In the first quarter of 2025 LendingClub anticipates loan originations between $1.8 billion and $1.9 billion. The business projects originations over $2.3 billion and a return on tangible common equity above 8% for the fourth quarter of 2025.
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