growth has been impressive and so is the net yield. But I am curious about the increase in "repeats" vs "new " originations and any possible effect on delinquencies. It seems if i were a borrower and in some trouble, I would renew or increase the loan just before the due date. And I hope the Company does not let any delinquent borrower renew a loan and then become "current"
does anyone know the answer to this risk?
I don't yet have a position in ONDK but still reading S 1 .Based in my bank audit background it seems they have a ton of credit risk,and are compensated for most of it.My concern is whether they can maintain losses at10% or less if they grow significantly. If not then this is not a good play
LC has limited credit risk and may have a lot more upside and less downside
HTH has done well for us, but I am getting concerned about exposure to energy loans. we have had a lot of growth here and I am hoping we are well protected. does legacy texas have much exposure to energy loans?
earnings are low and bank seems to be managed very conservatively . We are selling near book value with a great( low) leverage ratio. My time in bank M&A leads me to believe that we could easily get $50 or more . That price would be near 1.5 X book value( and tangible BV) , 9% of assets and less than a 4% deposit premium
Not sure what Board thinks about best return to shareholders but I think we are very near an optimum time to sell this bank: high regulatory costs, several willing buyers, strong stock market