Enova International withdrew applications to the Office of the Comptroller of the Currency and Federal Reserve relating to its proposed acquisition of Grasshopper Bancorp. The company announced the withdrawal on 14 September. It maintained its financial guidance and plans to accelerate share repurchases.
The proposed $369 million transaction was announced in December, Banking Dive reported. It formed part of Enova’s effort to acquire a bank. The lender serves consumers and small businesses that it describes as underserved by traditional banks.
DISPUTE OVER BANKING APPROVAL STANDARDS
Chief executive Steve Cunningham criticised what he described as unclear regulatory standards for nonbanks seeking bank status.
Banking Dive reported that 20 state and district attorneys general and Democratic senators Elizabeth Warren and Chris Van Hollen had urged regulators to reject the transaction, citing concerns that Enova could use a bank charter to avoid state interest-rate limits. The OCC and Federal Reserve did not immediately comment to the publication.
GUIDANCE AND BUYBACK CAPACITY
Enova retained forecasts for 20%–25% revenue growth and 30%–35% adjusted earnings-per-share growth in 2026.
Enova said it intends to accelerate share repurchases during the remainder of 2026. At 30 June, it had $218 million of capacity under senior-note covenants and $349 million under its board authorisation, which runs until 30 June 2027.