SAN FRANCISCO — LendingClub posted sharply higher lending activity in the fourth quarter, driven by rapid growth in its LevelUp savings and checking products and improved performance across its digital marketplace, the company said Wednesday.
Loan originations rose 40% from a year earlier to $2.6 billion, with gains across all product lines, according to earnings materials released after markets closed. CEO Scott Sanborn said the increase reflected product enhancements, expanded marketing efforts and improved marketplace pricing, along with what he described as sustained credit outperformance.
Marketplace revenue climbed 36% year over year, supported by higher loan volumes and pricing that moved back toward historical ranges.
A growing share of LendingClub’s activity is tied to LevelUp, the company’s savings and checking platform that management views as a gateway to deeper, repeat customer engagement. 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.
Building a ‘Cushion’
Personal loan borrowers accounted for more than 15% of new deposit accounts during the quarter, while customers who had repaid their loans held average savings balances exceeding $15,000. LevelUp checking also expanded 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 told analysts on a conference call.
Total deposits reached $9.8 billion at quarter end, up 8% from a year earlier, reflecting LendingClub’s operating model following its acquisition of Radius Bank. The deposit growth provided funding for loan expansion and supported net interest income.
‘Stable’ Credit Performance
CFO Drew LaBenne said balance sheet growth and stable credit performance defined 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, while net charge-offs declined 80 basis points year over year. LaBenne said delinquency and charge-off metrics remained below those of competitors.
Looking Forward
Looking ahead, LendingClub forecast first-quarter 2026 originations of $2.55 billion to $2.65 billion, representing growth of 28% to 33%. Full-year originations are expected to total $11.6 billion to $12.6 billion, up 21% to 31%.
Despite the outlook, LendingClub shares fell about 7% in after-hours trading, as investors appeared to focus on margin dynamics and higher marketing costs. LaBenne said the company is increasing marketing and modeling investments to support growth in 2026.
