Shares of digital consumer bank LendingClub (LC 18.08%) blasted up roughly 21%, as of 10:49 a.m. ET today. The company reported blowout second-quarter earnings and raised guidance.

An inflection point

After somewhat disappointing first-quarter results, largely due to higher marketing spend and the chaos around tariffs, LendingClub, which is largely in the business of refinancing credit card debt, delivered big in the second-quarter, generating earnings per share of $0.33 on total revenue of roughly $248.5 million. The fintech company easily beat Wall Street consensus estimates of $0.15 EPS and about $227.5 million of revenue.

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EPS also increased 154% year over year, while revenue rose 33%. A big reason for the beat can be attributed to strong credit performance, with expected loan losses and the provision for loan losses coming in much lower than expected.

However, LendingClub also generated stronger origination volume than expected, with quarterly originations of nearly $2.4 billion. Management also raised its guidance for the third quarter, saying it expects to generate $2.55 billion of quarterly originations at the midpoint of guidance, $95 million of pre-provision net revenue, and a return on tangible common equity (ROTCE) in the range of 10% to 11.5%.

"This quarter marks an inflection point in both our strategic and financial trajectory," LendingClub's CEO Scott Sanborn said on the second-quarter earnings call.

The stock can keep moving higher

Even after the big move, LendingClub still only trades at about 138% of its tangible book value. That's not the same bargain it once was, but also not expensive, considering management is now projecting as high as an 11.5% ROTCE on an inflated capital base. If the company's capital levels were lower and closer to peers, ROTCE would likely be much higher.

Given the momentum of the business, strong credit quality, and the inflection point for earnings, I continue to believe the stock is a buy.