Enova International Inc. (NYSE: ENVA) announced Tuesday that it has withdrawn its regulatory applications for the proposed acquisition of Grasshopper Bancorp Inc., ending its bid to take over the community bank.
The lending company pulled the filings from both the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System. It plans to redirect capital previously earmarked for the deal toward an acceleration of share repurchases for the remainder of 2026.
Under existing senior note covenants, Enova has $218 million available for buybacks. An additional $349 million remains authorized by its board, with that authorization expiring June 30, 2027.
CEO Steve Cunningham said the company worked extensively with regulators throughout the application process, responding to requests and building what it believed met statutory approval criteria. But he also expressed frustration with the regulatory framework itself.
"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," Cunningham said, according to the company's remarks.
Despite dropping the bank acquisition, Enova reaffirmed its full-year and third-quarter 2026 outlook issued on its July 23 earnings call. The company expects third-quarter revenue growth of approximately 25% year over year and adjusted earnings per share growth of around 30%. For the full year, it projects revenue growth of 20% to 25% and adjusted EPS growth of 30% to 35%.
Enova provides online financial services to small businesses and consumers. Over its roughly 20-year history, the company has originated more than $72 billion in loans and financing to over 15 million customers.
The company held a conference call at 4:00 p.m. Central Time on the day of the announcement to discuss the developments with investors and analysts.
