Enova Abandons $350 Million Bank Acquisition, Pays $4 Million Exit Fee
Company Background
Enova International is a Chicago-based online lender — roughly $4.4 billion in market capitalization — serving consumers and small businesses that traditional banks do not reach. Its two main brands are NetCredit, on the consumer side, and OnDeck, for small businesses. The company funds its loan book almost entirely through asset-backed securitizations rather than deposits, a structure that is flexible but more expensive than bank funding.
Financial performance has been strong. Full-year 2025 revenue was $3.15 billion, up 19% from 2024, and net income rose 47% to $308 million. In the first half of 2026, revenue reached $1.8 billion, up 20% year-over-year, with net income of $196 million. Management has guided for full-year 2026 revenue growth of 20% to 25% and adjusted EPS growth of 30% to 35%.
Despite the healthy core business, Enova spent much of the past year trying to fundamentally change its funding model. In December 2025 it announced a deal to buy Grasshopper Bancorp, the parent of Grasshopper Bank N.A., a national bank with roughly $1.4 billion in total assets and approximately $3 billion in deposits. The stated rationale: gaining a bank charter would let Enova fund new originations with lower-cost deposits and expand its product footprint across more states.
What Was Disclosed
Enova and Grasshopper Bancorp entered into a Mutual Termination Agreement and Release on October 16, 2026, formally unwinding the merger agreement that had been signed on December 10, 2025 and amended on December 18, 2025. Under the terms of the termination, Enova made a $4 million cash payment to Grasshopper. Neither party will pay any additional fees or carry any further liabilities to the other in connection with the merger agreement.