LendingClub Corp., which was shaken by the surprise resignation of its founder last month, revised its weekly loan-sales numbers downward after making a mistake.
The company had reported a spike in weekly sales as of May 31, but the corrected data shows that sales actually fell 3 percent from the previous period to $21.4 million, according to Brad Berning, senior research analyst at Craig-Hallum Capital Group. LendingClub mistakenly listed loans it funded itself as being sold to investors. The Wall Street Journal reported the revision earlier Friday.
The marketplace lender has been trying to win back the confidence of investors, many of whom paused purchases after Chief Executive Officer Renaud Laplanche resigned under pressure. It has held discussions with investors about offering stronger loan guarantees as well as a possible stake in the company to sweeten the pot, Bloomberg News reported Thursday. The firm’s stock slid 4.7 percent to $4.26 on Friday.
The numbers that were revised, which Berning tallied from a voluminous filing, only represent a portion of the company’s volume, he wrote in a report on Thursday. Weekly sales declined again to $18.9 million as of June 7, Berning said.
LendingClub “disclosed in our recent 10-Q that we may use our balance sheet to invest in loans in certain circumstances,” according to a statement from the company Friday. “When we have a high degree of confidence in our ability to resell them, we may do this on a limited basis to bridge temporary imbalances in the platform.”