Tuesday, August 9, 2016
LendingClub is diving after reporting an earnings miss and announcing its CFO is resigning
LendingClub shares fell by as much as 8% in after-hours trading on Monday after the company reported worse-than-expected earnings and some management changes.
The online lender announced in astatement that CFO Carrie Dolan resigned "to pursue a new opportunity." The company said she brought up her departure earlier in the year, but the board asked her to wait amid the CEO's resignation.
Bradley Coleman, LendingClub's principal accounting officer, will become the interim CFO.
Also, Timothy Mayopoulos, the president and CEO of Fannie Mae, was appointed to LendingClub's board as an independent director.
LendingClub reported an adjusted loss per share of $0.09 for the second quarter, greater than the three-cent loss analysts had projected, according to Bloomberg. Its earnings were dented by acquisition and severance costs.
Its net revenues beat expectations, totaling $103.4 million ($100.6 million expected).
Former CEO Renaud Laplanche stepped down in May after an internal investigation into improper lending practices. Separately, New York regulators subpoenaed the fintech company over the interest rates and fees it charged customers.
LendingClub's loan originations rose 2% year-over-year to $1.96 billion during the second quarter.