10 Best Small Cap Bank Stocks To Invest In Now

3. LendingClub Corp. (NYSE:LC)

Market Capitalization as of March 28: $1.18 billion

Number of Hedge Fund Holders: 26

LendingClub Corp. (NYSE:LC) is a bank holding company that provides financial products and services in the US. It offers deposit products and loan products. It also operates a lending marketplace platform, where the company connects borrowers with investors.

The company’s Marketplace Investor Segment is a significant revenue driver which is fueled by the company’s strong asset performance. Throughout 2024, the company experienced consecutive quarterly improvements in loan sales prices, which resulted in a 1.7% year-over-year rise. Participation of banks in the marketplace has also grown and purchased about one-third of LendingClub Corp.’s (NYSE:LC) loan volume in Q4.

The demand from private credit investors is also improving and bringing consistent returns. The improving marketplace economics is driven by higher loan sales prices and higher investor demand, which enables LendingClub Corp. (NYSE:LC) to reinvest and retain high-yielding and portfolio loans. The company expects to exit Q4 2025 with $2.3 billion in quarterly originations.