SoFi Is Starting to See the Benefits From Becoming a Bank
It took SoFi Technologies (NASDAQ: SOFI) a long time to close its acquisition of Golden Pacific Bancorp, but the company finally did it earlier this year, obtaining the long-coveted bank charter that came with the acquisition.
It took a little time to get the bank integrated and positioned within the company, but now SoFi is starting to see the benefits of being a bank. This is evidenced by its second-quarter results, which beat analyst estimates and pleased the market, sending shares surging more than 28% on the day after SoFi reported earnings.
Prior to the bank charter, SoFi didn't hold loans on its balance sheet for very long but sold them to investors because the company didn't have the funding capacity and needed investors to fund and purchase the loans they originated. Prior to the bank charter, SoFi on average would hold loans for roughly three months.
Source Fool.com
