18 March 2014
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.
Fields which are not relevant to me include Referral Bonus, Charity, FOLIOfn transfers and Trading fees.
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.)
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))