Latest news with #ScottSanborn
Yahoo
31-07-2025
- Business
- Yahoo
We Set Ourselves Up to Thrive in Stable Rate Environment: Sanborn
LendingClub shares surge as much as 32%, the biggest intraday gain since Oct. 2021, after the financial services company forecast new originations for the third quarter, and its guidance beat the average analyst estimate. LendingClub CEO Scott Sanborn has more on the story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
30-07-2025
- Business
- Bloomberg
Countdown to the FOMC Decision
"Bloomberg Markets" follows the market moves across every global asset class and discusses the biggest issues for Wall Street. Today's guests; TCW CIO Bryan Whalen, LendingClub CEO Scott Sanborn, Stifel Chairman and CCEO Ron Kruszewski, Teva CEO Richard Francis, and JPMorgan Investment Management Fixed Income Executive Director Kelsey Berro. (Source: Bloomberg)
Bloomberg
30-07-2025
- Business
- Bloomberg
We Set Ourselves Up to Thrive in Stable Rate Environment: Sanborn
LendingClub shares surge as much as 32%, the biggest intraday gain since Oct. 2021, after the financial services company forecast new originations for the third quarter, and its guidance beat the average analyst estimate. LendingClub CEO Scott Sanborn has more on the story. (Source: Bloomberg)
Yahoo
30-07-2025
- Business
- Yahoo
LendingClub Corp (LC) Q2 2025 Earnings Call Highlights: Robust Revenue Growth and Strategic ...
Revenue: $248 million, up 33% year-over-year. Net Income: $38 million, up 156% compared to the same quarter last year. Loan Originations: $2.4 billion, a 32% increase year-over-year. Net Interest Income: $154 million, up 20% year-over-year. Non-Interest Income: $94 million, up 60% year-over-year. Net Interest Margin: Improved to 6.1%. Non-Interest Expense: $155 million, up 17% year-over-year. Pre-Provision Net Revenue: $94 million, up 70% year-over-year. Provision for Credit Losses: $40 million, compared to $36 million in the same quarter last year. Net Charge-Off Ratio: Improved to 3% from 6.2% in the same quarter last year. Return on Tangible Common Equity (ROTCE): Nearly 12%. Diluted EPS: $0.33 per share. Tangible Book Value per Share: $11.53. Warning! GuruFocus has detected 4 Warning Signs with LC. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points LendingClub Corp (NYSE:LC) achieved a 32% year-on-year growth in originations and a 33% increase in revenue. The company more than doubled its GAAP net income to $38 million compared to $15 million last year. LendingClub Corp (NYSE:LC) extended its Forward Flow Agreement with Blue Owl for up to $3.4 billion of new originations. The company successfully closed its first transaction with BlackRock, enabled by its Fitch-rated Structured Certificates program. LendingClub Corp (NYSE:LC) introduced LevelUp Checking, offering cashback rewards for on-time loan payments, which has led to a sixfold increase in daily checking account openings. Negative Points Marketing expenses increased by 26% compared to the prior year, impacting overall expenses. The net charge-off ratio for the held-for-investment loan portfolio is expected to rise modestly as more recent vintages season. The company anticipates some seasonal headwinds to origination volumes in the fourth quarter. Despite strong performance, the company acknowledges that some of the credit performance improvements may not repeat in future quarters. The effective tax rate was higher this quarter due to a change in California tax law, impacting deferred tax assets. Q & A Highlights Q: Can you provide insights on the competitive landscape and any potential risks you foresee? A: Scott Sanborn, CEO, explained that LendingClub is well-positioned to compete effectively, having grown volume by 32% year-on-year and maintained marketing efficiency. The company is confident in its ability to compete, despite the competitive environment, due to its diverse product offerings and robust infrastructure. Q: How should we think about future marketing efficiency and costs? A: Scott Sanborn, CEO, noted that while marketing costs are expected to rise, so are originations. The company has seen strong responses from new channels, particularly from existing members, and aims to maintain a balance between new and repeat customers. Q: What are your thoughts on credit quality and the impact of the student loan moratorium ending? A: Andrew LaBenne, CFO, stated that credit performance continues to improve, with no significant changes observed since the resumption of student loan payments. LendingClub had proactively reduced exposure to the student loan population and implemented monitoring programs. Q: Can you elaborate on your guidance philosophy and any conservatism in your projections? A: Scott Sanborn, CEO, explained that the company anticipated growth in Q2 due to favorable seasonality and improved loan sales prices. The guidance reflects a cautious approach to absorbing market volatility, with a focus on profitable growth and expanding ROTCE. Q: How do you view the mix of originations between held-for-investment and marketplace loans? A: Andrew LaBenne, CFO, emphasized the importance of balancing growth in both the balance sheet and marketplace to generate attractive returns. The company aims to fulfill strong investor demand while maintaining a resilient income stream through held loans. Q: What is the impact of new deposit programs on funding costs and engagement? A: Scott Sanborn, CEO, highlighted that the strategic driver of new deposit products like LevelUp Checking is increased engagement and lifetime value rather than immediate funding cost reduction. These products are expected to enhance customer interaction and cross-sell opportunities. Q: How does the company plan to manage net interest margin (NIM) in light of potential Fed rate cuts? A: Andrew LaBenne, CFO, indicated that while the company maintains a growth posture for its deposit franchise, it will manage rate adjustments thoughtfully to ensure deposit growth. Any Fed rate cuts may not be matched 100% in deposit rate reductions. Q: Are there any updates on a potential rebranding and the mobile-first multi-platform offering? A: Scott Sanborn, CEO, mentioned that a rebranding effort is underway, with a new brand expected next year to coincide with broader product launches. The mobile-first platform is live, enhancing product integration and customer experience across LendingClub's offerings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
LendingClub Corp (LC) Q2 2025 Earnings Call Highlights: Robust Revenue Growth and Strategic ...
Revenue: $248 million, up 33% year-over-year. Net Income: $38 million, up 156% compared to the same quarter last year. Loan Originations: $2.4 billion, a 32% increase year-over-year. Net Interest Income: $154 million, up 20% year-over-year. Non-Interest Income: $94 million, up 60% year-over-year. Net Interest Margin: Improved to 6.1%. Non-Interest Expense: $155 million, up 17% year-over-year. Pre-Provision Net Revenue: $94 million, up 70% year-over-year. Provision for Credit Losses: $40 million, compared to $36 million in the same quarter last year. Net Charge-Off Ratio: Improved to 3% from 6.2% in the same quarter last year. Return on Tangible Common Equity (ROTCE): Nearly 12%. Diluted EPS: $0.33 per share. Tangible Book Value per Share: $11.53. Warning! GuruFocus has detected 4 Warning Signs with LC. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points LendingClub Corp (NYSE:LC) achieved a 32% year-on-year growth in originations and a 33% increase in revenue. The company more than doubled its GAAP net income to $38 million compared to $15 million last year. LendingClub Corp (NYSE:LC) extended its Forward Flow Agreement with Blue Owl for up to $3.4 billion of new originations. The company successfully closed its first transaction with BlackRock, enabled by its Fitch-rated Structured Certificates program. LendingClub Corp (NYSE:LC) introduced LevelUp Checking, offering cashback rewards for on-time loan payments, which has led to a sixfold increase in daily checking account openings. Negative Points Marketing expenses increased by 26% compared to the prior year, impacting overall expenses. The net charge-off ratio for the held-for-investment loan portfolio is expected to rise modestly as more recent vintages season. The company anticipates some seasonal headwinds to origination volumes in the fourth quarter. Despite strong performance, the company acknowledges that some of the credit performance improvements may not repeat in future quarters. The effective tax rate was higher this quarter due to a change in California tax law, impacting deferred tax assets. Q & A Highlights Q: Can you provide insights on the competitive landscape and any potential risks you foresee? A: Scott Sanborn, CEO, explained that LendingClub is well-positioned to compete effectively, having grown volume by 32% year-on-year and maintained marketing efficiency. The company is confident in its ability to compete, despite the competitive environment, due to its diverse product offerings and robust infrastructure. Q: How should we think about future marketing efficiency and costs? A: Scott Sanborn, CEO, noted that while marketing costs are expected to rise, so are originations. The company has seen strong responses from new channels, particularly from existing members, and aims to maintain a balance between new and repeat customers. Q: What are your thoughts on credit quality and the impact of the student loan moratorium ending? A: Andrew LaBenne, CFO, stated that credit performance continues to improve, with no significant changes observed since the resumption of student loan payments. LendingClub had proactively reduced exposure to the student loan population and implemented monitoring programs. Q: Can you elaborate on your guidance philosophy and any conservatism in your projections? A: Scott Sanborn, CEO, explained that the company anticipated growth in Q2 due to favorable seasonality and improved loan sales prices. The guidance reflects a cautious approach to absorbing market volatility, with a focus on profitable growth and expanding ROTCE. Q: How do you view the mix of originations between held-for-investment and marketplace loans? A: Andrew LaBenne, CFO, emphasized the importance of balancing growth in both the balance sheet and marketplace to generate attractive returns. The company aims to fulfill strong investor demand while maintaining a resilient income stream through held loans. Q: What is the impact of new deposit programs on funding costs and engagement? A: Scott Sanborn, CEO, highlighted that the strategic driver of new deposit products like LevelUp Checking is increased engagement and lifetime value rather than immediate funding cost reduction. These products are expected to enhance customer interaction and cross-sell opportunities. Q: How does the company plan to manage net interest margin (NIM) in light of potential Fed rate cuts? A: Andrew LaBenne, CFO, indicated that while the company maintains a growth posture for its deposit franchise, it will manage rate adjustments thoughtfully to ensure deposit growth. Any Fed rate cuts may not be matched 100% in deposit rate reductions. Q: Are there any updates on a potential rebranding and the mobile-first multi-platform offering? A: Scott Sanborn, CEO, mentioned that a rebranding effort is underway, with a new brand expected next year to coincide with broader product launches. The mobile-first platform is live, enhancing product integration and customer experience across LendingClub's offerings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
