LendingClub Executive Shake-up Continues, Stock Falls After Earnings

By Markets MarketWatch Pulse

LendingClub Corp. announced further changes to its leadership Monday afternoon along with earnings, and the online lender's beleaguered stock plunged yet again in late trading. The company announced the departure of Chief Financial Officer Carrie Dolan, whom it said would be seeking to "pursue a new opportunity;" Bradley Coleman, the company's corporate controller since 2013, will take the position in an interim capacity. LendingClub also said Fannie Mae Chief Executive Timothy Mayopoulos would become an independent director. The online lender has been swiftly remaking the top of the company after the ouster of former CEO Renaud Laplanche, who was sent packing in a cloud of scandal earlier this summer; in addition to new Chief Executive Scott Sanborn, LendingClub has also hired a chief operations and strategy officer and chief capital officer. The company's quarterly financial statement, released at the same time Monday, showed the effects of the turmoil, with severance charges and investor incentives helping to push LendingClub to a net loss of $81.4 million, or 21 cents a share, much higher than a $4.1 million loss, or a penny a share, in the same quarter a year ago. After adjustments, LendingClub claimed a loss of 9 cents a share on total net revenue of $103.4 million. Analysts on average expected a loss of 5 cents a share on revenue of $99.9 million. LendingClub shares fell more than 7% in immediate late trading before clawing back some of those losses to sell for about $4.60, after closing with a 0.8% gain at $4.79. Shares have fallen 32.5% in the past 3 months, while the S&P 500 has gained 6% in that time frame.

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