Q3 2024 LendingClub Corp Earnings Call Transcript
Key Points
- LendingClub Corp (LC) reported a strong quarter with originations growing 6% sequentially to $1.9 billion and revenue increasing by 8% to over $200 million.
- The company successfully acquired a $1.3 billion portfolio of previously sold loans, which is expected to be immediately accretive to earnings.
- LendingClub Corp (LC) welcomed back banks to its platform, with expectations of over a billion dollars in additional loan purchases over the next 12 months.
- The company acquired technology from Tally to enhance its credit card management solutions, accelerating its product roadmap.
- LendingClub Corp (LC) launched a new savings product, Level Up Savings, which has already gathered over $500 million in deposits, providing a new lever for managing deposit costs.
- The provision for credit losses increased to $48 million from $36 million in the prior quarter, driven by higher day one CECL on held-for-investment loans.
- Net interest margin slightly decreased to 5.63%, primarily due to growth in senior securities from structured certificates.
- Non-interest expenses increased by $4 million to $136 million, with expectations of further increases in the fourth quarter.
- The company anticipates a potential decline in the balance sheet in the next quarter before resuming growth in 2025.
- Despite improvements, loan sale pricing is still below historical averages, limiting the ability to fully reopen dormant marketing channels.
Attention. Everyone. Please remain holding the call will begin momentarily again. Please remain holding the call will begin momentarily.
Good afternoon. Thank you for attending today's Lending Club third quarter, 2024 Ernie's conference call. My name is Janey Whiteside and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. And I'd like to turn the conference over to our host, Aum Nelly, that co head of Investor Relations auto. You may proceed.
Thank you and good afternoon. Welcome to Lending Club's third quarter earnings conference call. Joining me today to talk about our results are Scott Sanborn CEO and Drew LaBenne CFO. You can find the presentation accompanying our earnings release on the investor relations section of our website on the call. In addition to questions from analysts, we will also be answering some of the questions that were submitted for consideration via email.
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