Enova withdrew its applications with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board of Governors, according to the release.
The company said in the release that throughout the process, it worked constructively and transparently with regulators.
Enova CEO Steve Cunningham said in the release that the company withdrew the applications after determining that this is the best decision for the company and its shareholders, and that bank regulatory guidelines have not kept pace with the realities of meeting the credit needs of consumers and small businesses who are underserved by traditional banks.
“Regulators do not have clear standards for nonbanks that want to become banks and that serve customers whose credit needs today are met mostly outside of the banking system,” Cunningham said. “Without clearly articulated standards, the process is susceptible to political pressure and outside advocacy, rather than being guided strictly by the statutory factors that should govern it.”
Enova announced in December 2025 that it planned to acquire Grasshopper Bancorp and its wholly owned subsidiary Grasshopper Bank for $369 million to create what it said would be a “stronger, more diversified financial services provider.”
The company said in December that the transaction was expected to close during the second half of 2026, subject to Grasshopper shareholder approval, regulatory approvals and other customary closing conditions. It said that after the closing of the transaction, Enova would be a newly formed bank holding company, while Grasshopper Bank would be its bank subsidiary.
PYMNTS reported in July that 20 state attorneys general asked the Federal Reserve, the OCC and the Federal Deposit Insurance Corporation (FDIC) in a letter to deny banking privileges to companies they contended use bank partnerships to circumvent state interest-rate limits. The letter specifically identified Enova’s proposed acquisition of Grasshopper as well as online lending platform OppFi’s acquisition of BNCCORP and BNC National Bank.
Enova said in SEC filings that required approvals could impose conditions that reduce the anticipated benefits of the merger and that completion was conditioned on receiving the required approvals without a “burdensome condition,” according to the July report.
In the Tuesday press release, Cunningham said: “Enova has proven capabilities, a clear strategy and the best team in the industry. We will continue to leverage these strengths, as well as new products and innovation, to meet the credit needs of the consumers and small businesses that traditional banks are leaving behind. Our future growth and success do not depend on becoming a bank.”
Enova reaffirmed the full-year and third-quarter 2026 guidance it provided during its July 23 earnings call. This includes year-over-year growth of 25% in revenue and around 30% in adjusted EPS growth in the third quarter, 20% to 25% in revenue and 30% to 35% in adjusted EPS growth for the full year, according to the release.
“The growth and credit trends we’ve seen so far this quarter give us confidence in our outlook,” Enova Chief Financial Officer Scott Cornelis said in the release.
