LendingClub
Analysis
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Edited by General
LendingClub online bank is an FDIC-insured online bank that was acquired by LendingClub, a company which prior to the acquisition had a failed peer-to-peer lending model, from Radius Bank in 2021. It was rebranded following the acquisition and converted from a online bank with a competitive rewards checking to one that now also offers competitive online savings accounts and online CDs.
Advantages
- LendingClub's savings and CD rates are attractive, and its rewards checking account has a loyal customer following.
- The bank does ordinarily does not charge fees, and its checking account does not have any overdraft fees.
Disadvantages
- LendingClub was fortunate that all depositors at Silicon Valley Bank were bailed out in 2023, but its exposure at the time of the latter's failure may give some customers pause.
Financial Details
LendingClub Ratio Analysis
The following ratios and data are available to help you better understand the financial condition of LendingClub. The data is provided by the FDIC. All banks listed on BestCashCow.com are FDIC-insured. No depositor has ever lost deposits that have been within the FDIC insurance limits.
Texas Ratio
| LendingClub | U.S. Bank Average |
|---|---|
| 5.18% | 4.48% |
The Texas Ratio compares the bank’s non performing assets (non-performing loans and real estate owned) with its tangible common equity and its loan loss reserves. A lower Texas ratio indicates better coverage of problem loans. The closer the Texas Ratio is to 1-to-1 or 100%, the less capital and reserves a bank has to absorb its loan losses.
As of June 30, 2024, LendingClub had $67,001,000 in non-current loans and $0 in owned real estate. To cover these potential losses it had $1,064,776,000 in equity and $228,909,000 in loans loss reserves. That gives it a Texas Ratio of 5.18%.
Return on Equity
| LendingClub | U.S. Bank Average |
|---|---|
| 4.47% | 10.46% |
LendingClub has a Return on Equity of 4.47% versus the BestCashCow average of 10.46%. Return on equity measures how efficiently a bank is making money from its capital. A bank with a consistently high ROE can be considered well run. A bank with a consistently low ROE can be considered poorly run.
Capitalization
| LendingClub | U.S. Bank Average |
|---|---|
| 11.3% | 10.84% |
LendingClub has a Capitalization of 11.3% versus the BestCashCow average of 10.84. Capitalization measures how much equity capital a bank has to underpin loans and other assets on its balance sheet. The higher the capitalization number the more secure a bank is considered.
LendingClub Balance Sheet Analysis
As of June 30, 2024, LendingClub had assets of $9,424,574,000, loans of $5,121,366,000, and deposits of $8,215,812,000. Long-term increases in deposits shows a bank's ability to raise funds to grow its loans and assets. Loan and asset growth may rise or fall depending on a bank's strategy for growth. Sharp rises and falls in assets, deposits, and loans can be problematic, indicating a loosening of lending standards, or financial distress leading to reduced lending. A big change in these figured can also be from a bank acquisition or merger.
Summary Balance Sheet
June 30, 2024| ASSETS | |
|---|---|
| Cash & Balances due from depository institutions | $ 917.69 million |
| Interest-bearing balances | $ 908.11 million |
| Total securities | $ 2.81 billion |
| Federal funds sold and reverse repurchase | N.A. |
| Net loans and leases | $ 5.12 billion |
| Loan loss allowance | $ 228.91 million |
| Trading account assets | N.A. |
| Bank premises and fixed assets | N.A. |
| Other real estate owned | N.A. |
| Goodwill and other intangibles | $ 133.07 million |
| All other assets | $ 285.83 million |
| Total Assets | $ 8.36 billion |
| LIABILITIES | |
|---|---|
| Total deposits | $ 8.22 billion |
| Interest-bearing deposits | $ 7.76 billion |
| Deposits held in domestic offices | $ 8.22 billion |
| % insured (estimated) | 86.60% |
| Federal funds purchased and repurchase agreements | N.A. |
| Trading liabilities | N.A. |
| Other borrowed funds | $ 123.44 million |
| Subordinated debt | N.A. |
| All other liabilities | $ 187.09 million |
| Total Liabilities | $ 8.36 billion |
| Shareholders’ Equity | $ 1,064.78 million |
Summary Income Statement
June 30, 2024| INCOME AND EXPENSES | |
|---|---|
| Total Interest Income | $ 422.62 million |
| Total Interest Expense | $ 175.01 million |
| Net interest income | $ 247.61 million |
| Provision for loan and lease losses | $ 67.49 million |
| Total non interest income | $ 104.13 million |
| Total non interest expense | $ 253.35 million |
| Pre-tax Net Operating Income | $ 107.41 million |
Bank Loan Profile?
The top three loan types in LendingClub’s loan portfolio are Commercial Real Estate, Commercial and Industrial Loans, and 1-4 Family Residential Loans.
Compared to other banks in Utah, LendingClub Bank, National Association has a significantly higher percent of 1-4 Family Residential Loans, Multifamily Mortgages, Consumer Auto Loans, Small Business Loans, Construction and Development Loans, Commercial Real Estate, Commercial and Industrial Loans on its balance sheet, potentially indicating a specialty in that lending area.
Note: Percentages may not sum to 100% due to rounding and double categorization of some loan types. All data from the FDIC. Additional information about this table.
| % Loans |
% Comparison to Other Banks |
|||
|---|---|---|---|---|
| Low | Med | High | ||
| 1-4 Family Residential Loans | 3.45 | ✓ | ||
| Multifamily Mortgages |
0.52 | ✓ | ||
| Credit Card Loans | 0.00 | ✓ | ||
| Consumer Auto Loans | 2.74 | ✓ | ||
| Small Business Loans | 0.56 | ✓ | ||
| Construction and Development Loans | 0.40 | ✓ | ||
| Commercial Real Estate | 5.70 | ✓ | ||
| Commercial and Industrial Loans | 5.20 | ✓ | ||
| Farm Loans | 0.00 | ✓ | ||
Savings Fees
| Fee Type | |
|---|---|
| Non Sufficient Funds | $0.00 |
| Maintenance | $0.00 |
| Out-of-network ATM | $0.00 |
| Excessive Transaction | $0.00 |
| Incoming Wires | $0.00 |
LendingClub Reviews
overdrawn
November 12, 2022 |
I was shopping for deposit rates in August, and NerdWallet, a site I had previously trusted, had it on their list. I was unaware they took deposits. They are the only bank that ever duplicated a transaction on me in my iife! They overdrew me, but fortunately, Discover was very helpful, and walked me through the overdraft protection process, including temporarily removing it, so LendingClub could not take even more. Rates have not kept up, and Discover now nearly pays as much. I did receive a $100 courtesy credit from LendingClub, but honestly, I could have done without the stress! Online transfers of depoists and withdrawals have been working normally. They are slower on withdrawals than I am accustomed to, and the day to expect it to transact is listed in the email they send. I have made adjustments to the date based on the email (reset earlier).
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