Banking

LendingTree swings to profit in 2nd quarter

Doug Lebda, founder and CEO of Lending Tree. On Monday, the Ballantyne-based company reported a profit of $4.7 million in the second quarter, compared with a loss of $248,000 a year earlier.
Doug Lebda, founder and CEO of Lending Tree. On Monday, the Ballantyne-based company reported a profit of $4.7 million in the second quarter, compared with a loss of $248,000 a year earlier. jsimmons@charlotteobserver.com

Charlotte-based LendingTree said Monday it made a profit in the second quarter, compared with a loss a year ago, as it posted record revenue in its mortgage business.

The Ballantyne-based company, which pairs customers with mortgage and other types of lenders, earned $4.7 million in the quarter. A year ago, it posted a loss of $248,000, which it attributed to operating losses associated with the sale of its mortgage origination subsidiary in 2012 to Discover Financial Services.

LendingTree, which sells leads to lenders who compete for borrowers shopping online for various types of loans, said it made record revenue of $55.1 million in the second quarter, up about 31 percent from a year ago. Fees made from leads it sold to providers of personal loans helped boost its non-mortgage revenue about 139 percent, to $17.9 million.

"We couldn’t be more pleased with this quarter’s results,” said CEO Doug Lebda in a statement.

Earlier this year, the company announced a change in its name from Tree.com, a move designed to emphasize the well-known LendingTree brand. On Monday, the company said its selling and marketing expenses in the second quarter totaled $36.9 million, up about 27 percent from the same period last year.

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