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  • Lending Club might need more than webbank

    well this is concerning:

    "If LendingClub meets expected growth expectations, it could be looking at managed receivables portfolio of over $30 billion by the end of 2017. We believe it will be able to avoid any “risk retention requirements,” but are not confident that bank regulators will allow sponsoring banks to continue in their current role without requiring a significant increase in risk-management/compliance systems and capital. To date, the company indicated it has not begun to explore the cost and requirements of licensing its lending operations in all 50 states."

    In barron's online today

  • #2
    good find man! That is definitely worrisome if they think that their web bank relationship will last forever and be all that they need.
    Last edited by sean bash; 01-13-2015, 12:01 PM.


    • #3
      does anybody have a contact person at webbank I can call?


      • #4
        I admit I still have my eye on this stock. Did anyone catch this recently?

        Steel Partners: Significant Discount To NAV With Hidden Exposure To P2P & Small Business Finance


        9/30/14 NAV of $25 (from 10-Q info) vs. price of $17 (+47% return to NAV). NAV has further increased since 9/30/14 10-Q yielding current $27 NAV (+57% return to NAV).

        In addition, NAV stated above ignores full value of WebBank, which produced $20.4 mm 9-month annualized and $24.1 mm LQA Pre-Tax NI for Sep-14 (+16% and +27% YoY, respectively).

        At a 10x-15x Pre-Tax NI range, WebBank is worth $204-$305 mm, or $171-$273 mm of incremental value to NAV above the $33 mm value attributed in the previously stated NAV.

        SPLP’s Adj. NAV is worth $33-$37 once including WebBank’s value, vs. the current price of $17 (+93-115% return to NAV), or more realistically worth $26.50-$29.50 assuming 20% holdco discount (+54-72%).

        Tender offers and a WebBank value realization event (i.e. M&A, etc.) should provide meaningful catalysts on a go-forward basis.