Lending Club Q2 Loss Widens; CFO Carrie Dolan Resigns

(RTTNews) - Lending Club (LC) reported that its net loss for the second-quarter widened from last year. It also noted that Carrie Dolan resigned from her role as Chief Financial officer to pursue a new opportunity.

It has appointed Bradley Coleman to Principal Accounting Officer and Interim CFO. Mr. Coleman has served as Lending Club's corporate controller since 2013 and will continue in that role while fulfilling his new duties. The company has retained a global executive search firm to manage the recruitment of a new CFO and expects to name a successor in due course.

Timothy Mayopoulos, President and CEO of Fannie Mae, has been appointed to the Lending Club Board as an independent Director. Mayopoulos has 30 years of experience in financial services, including as General Counsel at Bank of America, and senior leadership roles at Deutsche Bank AG and Credit Suisse First Boston. Separately, Lending Club CEO Scott Sanborn has also joined the Board.

In addition, the company has successfully hired a Head of Institutional Investors, which will be formally announced soon.

Lending Club's GAAP net loss was $81.4 million for the second quarter of 2016, compared to a net loss of $4.1 million in the same period last year. The results for the second quarter of 2016 were negatively affected by a Goodwill impairment charge of $35.4 million related to the 2014 acquisition of Springstone, an increase in professional service fees of $14.9 million primarily due to matters identified in the board review previously announced, approximately $14.0 million in incentives paid to investors, and an increase in compensation related costs of $6.5 million associated with severance costs and a retention program.

Loss per share was $0.21 for the second quarter of 2016, compared to a loss of $0.01 in the same period last year.

Adjusted loss per share was $0.09 for the second quarter of 2016 compared to Adjusted earnings per share of $0.03 in the same period last year.

Operating revenue in the second quarter of 2016 was $102.4 million, compared to $96.1 million in the same period last year, an increase of 7% year-over-year. Operating revenue as a percent of originations, or revenue yield, was 5.24% in the second quarter, up from 5.03% in the same period last year.

For the third-quarter, the company expects operating revenue to be in the range of $95 million to $105 million.