Skip to main content

Author Topic: LC Cash on Balance Sheet Down

R
  • ****
  • Sr. Member
  • Posts: 483
LC Cash on Balance Sheet Down
OP: November 08, 2017, 12:00:00 AM
From Scott Sanborn prepared remarks:

"We ended the quarter with $604 million of cash and securities available for sale and no debt. We also held about $187 million in loans on the balance sheet, most of which we will use for our fourth quarter securitization."

And from the Q&A:

--------------------------------------------------------------------------------

Michael Matthew Tarkan, Compass Point Research & Trading, LLC, Research Division - MD, Director of Research, & Senior Research Analyst [34]

--------------------------------------------------------------------------------

Okay. And then last one, just on the cash level. And I know it went down. I know you're doing more securitization, but how should think about that move or that pushing through to the end of the year? Like, how should we think about cash level moving forward?

--------------------------------------------------------------------------------

Thomas W. Casey, LendingClub Corporation - CFO [35]

--------------------------------------------------------------------------------

I think, as I mentioned in my prepared remarks, we want to continue to maintain high levels of liquidity. That's first and foremost. The cash balance that you see moved down is just being redeployed into loans available for sale, which is part of the securitization that we had. So $187 million of loans are sitting in available for sale that is utilizing that cash.

--------------------------------------------------------------------------------
  • IP logged

j

jd

  • Posts: 22
LC Cash on Balance Sheet Down
#1: November 08, 2017, 12:00:00 AM
Questions Rob:

Are those numbers in any meaningful way different from ones you spoke of in the past? 

What do you think of their announcements today in regards to the health of the company? 

Thanks

Eddie

  • IP logged

T
  • *****
  • Hero Member
  • Posts: 6586

T
  • *****
  • Hero Member
  • Posts: 6586
LC Cash on Balance Sheet Down
#3: November 08, 2017, 12:00:00 AM
Quote
  • IP logged

T
  • *****
  • Hero Member
  • Posts: 6586
LC Cash on Balance Sheet Down
#4: November 08, 2017, 12:00:00 AM
One important thing did occur to me. The loans purchased by LC added to their originations THIS QUARTER big time.
Total originations this quarter were $2,443m. Of this $266m or about 10.8% were purchased by LC and put onto their books!
Were it not for these, originations this quarter would have been only $2,117m and would have resulted in a slight DROP in originations from the previous quarter (from $2,147).
Think that would have been seen as a disaster. Basically they had to buy those loans.

Edit: fixed typo.. was $2.443m and of course s/b $2,443m
  • IP logged

T
  • Posts: 10
LC Cash on Balance Sheet Down
#5: November 08, 2017, 12:00:00 AM
EXACTLY!!!! and they lost Creg.....and Scott Sanborn and CFO "DON'T KNOW" the number of repeat borrowers.  How much of the origination was churn?

Why is the credit team being fired????
  • IP logged

T
  • *****
  • Hero Member
  • Posts: 6586

  • *****
  • Hero Member
  • Posts: 612

T
  • *****
  • Hero Member
  • Posts: 6586
LC Cash on Balance Sheet Down
#8: November 08, 2017, 12:00:00 AM
Thanks Fred.

Quote
  • IP logged

  • ****
  • Sr. Member
  • Posts: 362
LC Cash on Balance Sheet Down
#9: November 08, 2017, 12:00:00 AM
I'm not concerned about self-financing securitizations.  My major point of curiosity is around what "other" originationas may portend, in the future, wrt product development(s).  I'm ok waiting to find out - the numbers look non-negligible, so that's actually quite a positive signal...

Also, unsaid thoughts about this old conversation:  https://forum.lendacademy.com/index.php/topic,1282.0.html
  • IP logged
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

T
  • *****
  • Hero Member
  • Posts: 6586

T
  • *****
  • Hero Member
  • Posts: 6586

L
  • Posts: 241
LC Cash on Balance Sheet Down
#12: November 11, 2017, 12:00:00 AM
Does a Canadian bank get to write off its LC losses against its interest income?
  • IP logged

T
  • *****
  • Hero Member
  • Posts: 6586
LC Cash on Balance Sheet Down
#13: November 11, 2017, 12:00:00 AM
You can't write off principal losses against interest income.  I don't know if they lost money but clearly returns were lower than expected.  I think lending club's management is very poor-always has been. That said-I actually bought stock at 4.30 -the board has to move and get rid of CEO, CFO and "new" President or someone else will do it for them.
  • IP logged

T
  • *****
  • Hero Member
  • Posts: 6586
LC Cash on Balance Sheet Down
#14: November 11, 2017, 12:00:00 AM
Sorry--I didn't notice the date about that "up to 1.3 billion" was a year ago.  I was just wondering if Canadians enjoy some tax advantages we don't that would make the investment less risky for them than for a US based securitization group.
  • IP logged