Commercial lending

Lending Club reported a small quarterly loss on Tuesday as the marketplace lender stuck with its strategy of pursuing growth rather than near-term profitability.

The first stress tests for regional banks show loan losses closely in line with the postcrisis period. However, an independent analysis suggests losses likely would be even higher.

Foundation Bank in Bellevue, Wash., has taken a $2.9 million charge tied to a fraudulent loan and plans to report a quarterly loss later this week.

Heavier second-quarter marketing expenses at OnDeck Capital highlight a concern throughout the marketplace lending industry: the high cost of customer acquisition as competition from banks and nonbank startups heats up.

Many online small-business lenders worry that future regulations could stymie innovation in this fast-growing industry. But well-designed requirements would simply ensure that online lenders can offer adequate borrower protections without giving up market share.

The small-business lender's shift 18 months ago to a marketplace player that sells loans to investors paid off handsomely in the second quarter.

An estimated 12 million Americans buy used cars through informal channels each year. Those consumers are underserved by traditional auto lenders, says Lending Club Chief Executive Renaud Laplanche.

A high percentage of loans to oil and gas firms are large and syndicated. As a result, more shared loans are becoming problematic for participating lenders.

An NCUA proposal to make credit unions more competitive commercial lenders is drawing fire from community bankers, who say it invites risky underwriting, unfair competition and a repeat of the thrift crisis.

Marlin Business Bank has launched a new site to compete with alternative lenders such as OnDeck and Kabbage, which specialize in providing quick and convenient access to small-business credit.

AssetAvenue, a marketplace lender that specializes in commercial real estate finance, announced that it has hired Peter Coleman as its chief financial officer.

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Lenders have increasingly turned to niche businesses, such as equipment financing, to differentiate themselves from competitors. Some banks, like Bank of the Cascades in Oregon, are choosing complicated specialties like aircraft financing that may scare off potential rivals.

EverBank Financial in Jacksonville, Fla., reported a 20% jump in second-quarter profit, driven by strong consumer and commercial loan volume.

Student lending startup CommonBond has hired Morgan Edwards, a longtime Wall Street leveraged debt specialist, as its chief financial officer.

There is no reason a bank should be able to issue a loan and enjoy one set of rules while a marketplace lender, essentially issuing the same loan, must deal with a morass of conflicting state standards.

Bank groups hope rapid congressional action highlights the small-business lending program's political appeal, while nonbank lenders sense an opportunity.

Signs of optimism are growing for acquisition, development and construction loans as banks hone strategies in a market transformed by the crisis.

In order for the financial services industry to achieve its full potential in the digital age, Silicon Valley must work together with banks and lawmakers to build technology that can modernize banking infrastructure while addressing regulatory and cybersecurity challenges.

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