Tracking LendingClub investment performance in Quicken or iBank

This article describes how I track and reconcile my LendingClub investments, using the iBank personal finance software. This method should be equally valid for people using Quicken.In iBank, I set up my LendingClub account as if it were a brokerage account in which I’m purchasing securities; in this case, I’m purchasing a security I’ve named LendingClub (equivalent to a stock, e.g. AAPL). From there, tracking the investment simply involves mapping line items from the LendingClub statements to concepts normally involved in securities investment tracking, through the process of monthly reconciliation.

From the latest LendingClub statement, all values except one come from the Cash Details section of the statement, with the one additional needed value coming from the Earnings Summary section.

Cash Details Statement Section

• Funds Lent — Each dollar of Funds Lent maps to the purchase of one share of the security "LendingClub", priced at $1 per share.
• Principal Received — Maps to the sale of one share of the security "LendingClub", priced at $1 per share.
• Loan Interest — Maps to the category "Interest Income".
• Late Fees Received — Maps to the category "Miscellaneous Income".
• Recoveries — Treated equivalently to Principal Received.
• Collection Fees — Maps to the category "Fees:Collection".
• Service Fees — Maps to the category "Fees:Service".
• Adjustments/Credits — Not sure about this one, but so far I've never had a value in this field.
• Deposits/Withdrawals — Maps to "Transfers" (between my LendingClub account and the source/destination account of the transferred funds.)
• In Funding Loans — I treat this as cash (see below).

Fields which are not relevant to me include Referral Bonus, Charity, FOLIOfn transfers and Trading fees.

Earnings Summary Statement Section

• Losses (charged off loans) — Each dollar maps to the sale of one share of the "LendingClub" security at $0 per share. (That's right, zero dollars; this is how I track a complete loss.)

Reconciliation

To reconcile the investment account each month, I enter all the relevant transactions from the statement as described above. I then make sure the Starting and Ending balances are correct, and that involves the special treatment of “In Funding Loans”.

The Starting Balance each month is the Ending Balance of the previous month, as recorded in iBank.

The Ending Balance is sum of the Ending Balance as reported on the LendingClub statement, PLUS any amount reported in “In Funding Loans”. Since “In Funding Loans” are funds that have not yet been lent, they remain for the purpose of reconciliation as cash in the account (even though it’s not cash available for immediate withdrawal.)

Performance

One the LendingClub account is tracked in the manner described above, I can then generate performance reports (including, in version 5.1 of iBank, Internal Rate of Return (IRR))

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