FILE PHOTO: A Lending Club banner hangs on the facade of the the New York Stock Exchange in New York, New York, United States December 11, 2014. REUTERS/Brendan McDermid/File Photo
NEW YORK (Reuters) – LendingClub Corp (LC.N) on Tuesday agreed to acquire U.S. digital lender Radius Bank in a cash-and-stock deal valued at $185 million, as it looks to offer a broader suite of banking services.
LendingClub had previously disclosed that it was assessing options to secure a national bank charter in order to benefit from lower cost of funding and diversify its revenue streams.
Separately, the online lender reported a better-than-expected fourth-quarter profit helped by higher loan originations.
LendingClub forecast full-year 2020 revenue between $790 million and $820 million, below analysts’ estimates of $869.6 million. The company said it expects to post an adjusted net income of $17 million to $37 million for FY 2020, the mid-point of which is below expectations of $34.5 million.
LendingClub shares were down 3.6% in trading after the bell.
Reporting by Anna Irrera in New York and Abhishek Manikandan in Bengaluru; Editing by Franklin Paul and Shailesh Kuber