Loan originations rose 40% year over year to $2.6 billion, with all product lines contributing, according to earnings material. CEO Scott Sanborn said growth reflected product changes, marketing expansion and improved marketplace pricing, alongside what he described as sustained credit outperformance.
Marketplace revenue increased 36% from a year earlier, supported by higher volumes and loan sale pricing moving back toward historical ranges.
A growing portion of activity is now tied to LevelUp, LendingClub’s savings and checking offerings, which management positioned as an entry point for repeat engagement.
LevelUp Activity Surges
Sanborn said LevelUp savings is growing at double-digit rates and generating 20% to 30% more monthly logins than the company’s legacy savings product. Personal loan borrowers represented more than 15% of new deposit accounts, while customers who had repaid loans accumulated average savings balances above $15,000. LevelUp checking also grew at a double-digit pace, with 60% of new accounts coming from personal loan borrowers.
“Borrowers who have paid off their loans are using the product to build a financial cushion,” Sanborn said in a call with analysts.
The expansion of deposits reflects LendingClub’s operating model after having acquired Radius Bank. Total deposits reached $9.8 billion at quarter end, up 8% year over year, providing funding for loan growth and supporting net interest income.
As Sanborn told analysts on the call, “our digital marketplace bank business model combines the speed of a FinTech and the resiliency of a bank…the best of both worlds.”
CFO Drew LaBenne pointed to balance sheet growth and stable credit as defining features of the quarter.
LendingClub expanded its held-for-sale extended seasoning portfolio to $1.8 billion and retained nearly $500 million of loans in its held-for-investment portfolio. Net interest margin rose to 6%, up 56 basis points from the prior year.
Provision for credit losses totaled $47 million. Net charge-offs declined 80 basis points year over year, even as newer vintages continued to season. LaBenne said delinquency and charge-off metrics remained below those of competitors, attributing performance to underwriting discipline and stable consumer behavior.
For the first quarter of 2026, LendingClub expects originations of $2.55 billion to $2.65 billion, representing 28% to 33% growth. Full-year guidance calls for $11.6 billion to $12.6 billion in originations, up 21% to 31%.
Despite the growth outlook, LendingClub shares declined 7% after hours on Wednesday, perhaps reflecting investor attention to margin dynamics and higher marketing costs.
LaBenne said on the call: “We’re continuing to invest in ramping our marketing channels, improving our capabilities, improving our modeling,” adding that “this investment is to help 2026 performance.”
