Scott Sanborn: Yes. In terms of the partners, it’s a combination. We had some investors that had were sidelined due to the cost of the warehouse lines that we’ve brought back, but we’ve also added several new partners to the platform, sort of, the bigger names in private credit have come onto the — some of the key names have come onto the platform. And as we mentioned, what we like is these are players that have got significant capital to deploy and they are looking for, kind of, visibility into longer term flows. So we’ve got agreements now that extend out through Q1. Obviously returns have got to keep coming in and we won’t call that committed capital, but the fact that we’ve got people who’ve signed up to make purchases of the $2 billion over the next six to eight months we think is a real strength.
In terms of moving further down the spectrum, we certainly think that was the area that we really tightened the most and the longest ago, and we’re certainly seeing solid returns from that segment. So we do think over time as more of that data comes in to show what we’re able to deliver there’ll be an opportunity for us to potentially grow that marginally. But right now investor appetite is lower and it certainly it’s not out of the question that it could go into a structure like the Structural Certificate Program. Drew anything to add?
Drew LaBenne: Yes, it would clearly though have a different structure right the advance rate would be much lower on something that has a higher credit loss content than what we’ve been doing now. But, yes, we’re definitely able to offer that structure. We could probably even sell some of our season loans through that structure eventually if we wanted to. So we haven’t done that yet, but certainly possible.
Reggie Smitt: There was actually another question I had for you guys, but it’s good to know that, that’s an option as well. Okay, thanks a lot.
Operator: Our next question comes from Tim Switzer with KBW. Please proceed.
Tim Switzer: Hey, I’m on for Mike Perito. Thanks for taking my question. I was hoping you guys could expand — hey there. I was hoping you guys could expand on the comments you guys made earlier near the beginning of the question session where you mentioned about there’s more competition in the higher side of credit quality, higher FICO space among the personal lending market. And can you help quantify maybe how many competitors, who have stepped up from lower FICO to higher FICO and kind of crept into your space a little bit and maybe how that’s impacted your market share specifically? I don’t know if you have any numbers behind that, but just curious.
Scott Sanborn: No, I mean, I guess the number of offers that are visible to customers has certainly come down, if you look at a key place like some of the aggregators, like a lending tree or a credit karma. So the number of people participating has come down. It’s more pronounced in the lower FICO than in the high FICO. And in terms of share, yes, the best source of data for that will be TU, which comes out on a big lag. I’ll tell you, we’re not — long-term, we’ve consistently been a leader in the space in this particular market. That is not a metric that we’re managing to. We’re most focused on delivering a predictable return for ourselves and our buyers. But what I would expect to see is that certainly some of the banks that are playing in prime, that are direct banks, right, that are their business model is to be adding the assets to the balance sheet, you know, are going to continue to operate.
Tim Switzer: Okay. And about your guys’ comments about the first-half of ‘24 probably looking similar to Q4. Does that mean we should probably assume a similar outlook on expenses or is there actions you guys could take that would maybe help lower one way or if there’s any investments you would want to make that could have it go up?
Scott Sanborn: I would say think of expenses as being roughly flat. There’s always a little bit of friction as time goes on, merit increases, things of that nature that come through, but I would say roughly flat to slightly up as we go into next year.
Drew LaBenne: Roughly flat from the Q4 number. From the Q4.
Tim Switzer: Right, from Q2.
Scott Sanborn: From Q2.
Tim Switzer: All right, yes, that’s understood. And then, yes, that’s all for me. Thank you, guys.
Operator: Thank you for your questions. There are no questions waiting at this time, so I will pass the conference back over to Artem Nalivayko for some additional questions.
Artem Nalivayko: Thank you, Sierra. So, Scott and Drew, we’ve got a couple questions for you here that were submitted by our shareholders. The first question is, have you considered rebranding to another name since LendingClub’s more than just a lender now?
Scott Sanborn: Great question. So as we talked about, you know, the ways we can serve our members is evolving. As, you know, we get to a place where we’ve got an integrated app that will cover spending and savings in addition to lending. That’s part of the reason why we brought in Mark, who I talked about on the call, to oversee marketing brand communications and bring also that deposit expertise. So I don’t expect any imminent shifts, but I will say that will be one of the key things on his mind is how we integrate these new offerings into the brand and what evolutions we may need to make.
Artem Nalivayko: Great, thank you. And here’s a second question. So with the shares trading at such a steep discount to tangible book value. Is there a reason the company is not buying back shares?
Drew LaBenne: Yes, well, I think it’s probably worth just a reminder to everyone, we’re in the third year of our operating agreement that we entered into as part of the Radius acquisition. And some of the restrictions around that operating agreement make it difficult for us to execute any type of share buyback at this point.
Scott Sanborn: I will add, however, that the discount that we’re seeing is certainly not lost on us. And I don’t believe it represents the value that we will be creating with this business. I’m one of the largest individual shareholders in the company. I’ve not been selling any shares and at the recent board meeting I indicated, I post this earnings that I would be considering to purchase in the open market and wouldn’t be surprised if some of the board members did the same.
Artem Nalivayko: All right, great. Thank you. So with that, we’ll wrap up our third quarter earnings conference call. Thank you for joining us today. And if you have any additional questions, please email us at IR at lendingclub.com. Thank you.
Operator: That will conclude today’s conference call. Thank you all for your participation. You may now disconnect your line.
