Live Oak Bancshares, Inc. Reports Fourth Quarter 2025 Results
WILMINGTON, N.C., Jan. 21, 2026 (GLOBE NEWSWIRE) — Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported fourth quarter of 2025 net income attributable to common shareholders of $44.1 million, or $0.95 per diluted share. Net income attributable to common shareholders for the year ended December 31, 2025, totaled $102.8 million, or $2.23 per diluted share.
Live Oak’s performance for the year ended December 31, 2025, compared with the same period in 2024 included these notable items:
- Strong loan production of $6.21 billion accompanied by strong deposit growth of $1.93 billion in 2025, with total assets growing by 16.9% to $15.13 billion
- $96.3 million in capital was raised as a result of preferred stock offering in the third quarter of 2025
- Revenue (comprised of net interest income and noninterest income1) increased 18.3% and noninterest expense1 increased 11.7%, which generated 28.9% growth in pre-provision net revenue2
- Sale of Apiture, Inc. resulting in a pre-tax gain of $24.1 million which is included in equity method investments income (loss)
- Provision expense for credit losses of $96.3 million remained relatively flat compared to 2024
“Live Oak Bank delivered solid performance in 2025, a year defined by the resilience of small businesses and a disciplined focus on our core mission,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “Our teams closed out the year with record loan growth across our small business and commercial lending teams, strong momentum in building low-cost deposits, and a dedicated approach to credit quality and stabilization. These results reflect our commitment to being America’s small business bank and position us for continued progress in 2026 and beyond.”
Conference Call
Live Oak will host a conference call to discuss the company’s financial results and business outlook tomorrow, January 22, 2026, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 06698. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:
Live Telephone Dial-In
U.S.: 800.549.8228
International: +1 646.564.2877
Pass Code: None Required
Live Webcast Log-In
Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration
(1) Certain immaterial prior-period amounts in the Statements of Income have been revised. Specifically, there was a decrease in the line item for net gains on sales of loans, which was fully offset by a decrease in salaries and employee benefits, and travel expense. The changes were presentation only and had no impact on previously reported net income, total assets, total liabilities, or shareholders’ equity. Related efficiency and noninterest income to total revenue ratios have been revised accordingly.
(2) See accompanying GAAP to Non-GAAP Reconciliation.
| Year Over Year Highlights | |||||||||||||
| (Dollars in thousands, except per share data) | Increase (Decrease) | ||||||||||||
| 2025 | 2024 | Dollars | Percent | ||||||||||
| Total revenue (1) | $ | 577,816 | $ | 488,557 | $ | 89,259 | 18 | % | |||||
| Total noninterest expense | 338,698 | 303,110 | 35,588 | 12 | |||||||||
| Provision for credit losses | 96,303 | 96,212 | 91 | — | |||||||||
| Income before taxes | 142,815 | 89,235 | 53,580 | 60 | |||||||||
| Effective tax rate | 26.0 | % | 13.2 | % | n/a | n/a | |||||||
| Net income attributable to common shareholders | $ | 102,823 | $ | 77,474 | $ | 25,349 | 33 | % | |||||
| Diluted earnings per share | 2.23 | 1.69 | 0.54 | 32 | |||||||||
| Loan and lease production | 6,209,639 | 5,155,244 | 1,054,395 | 20 | |||||||||
| Total loans and leases | 12,393,677 | 10,579,376 | 1,814,301 | 17 | |||||||||
| Total assets | 15,134,778 | 12,943,380 | 2,191,398 | 17 | |||||||||
| Total deposits | 13,688,659 | 11,760,494 | 1,928,165 | 16 | |||||||||
(1) Total revenue consists of net interest income and total noninterest income.
| Fourth Quarter 2025 Key Measures | ||||||||||||||||||
| (Dollars in thousands, except per share data) | Increase (Decrease) | |||||||||||||||||
| 4Q 2025 | 3Q 2025 | Dollars | Percent | 4Q 2024 | ||||||||||||||
| Total revenue (1) | $ | 172,907 | $ | 142,330 | $ | 30,577 | 21 | % | $ | 125,022 | ||||||||
| Total noninterest expense | 89,153 | 83,516 | 5,637 | 7 | 78,212 | |||||||||||||
| Provision for credit losses | 21,845 | 22,242 | (397 | ) | (2 | ) | 33,581 | |||||||||||
| Income before taxes | 61,909 | 36,572 | 25,337 | 69 | 13,229 | |||||||||||||
| Effective tax rate | 25.5 | % | 27.6 | % | n/a | n/a | 25.6 | % | ||||||||||
| Net income attributable to common shareholders | $ | 44,116 | $ | 25,562 | $ | 18,554 | 73 | % | $ | 9,900 | ||||||||
| Diluted earnings per share | 0.95 | 0.55 | 0.40 | 73 | 0.22 | |||||||||||||
| Loan and lease production | 1,638,113 | 1,648,711 | (10,598 | ) | (1 | ) | 1,421,118 | |||||||||||
(1) Total revenue consists of net interest income and total noninterest income.
Important Note Regarding Forward-Looking Statements
Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company’s status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company’s ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company’s business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company’s ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
About Live Oak Bancshares, Inc.
Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank.
Contacts:
Walter J. Phifer | CFO | Investor Relations | 910.202.6926
Claire Parker | Corporate Communications | Media Relations | 910.597.1592
| Live Oak Bancshares, Inc. Quarterly Statements of Income (unaudited) (Dollars in thousands, except per share data) | |||||||||||||||||||||||||
| Three Months Ended | 4Q 2025 Change vs. | ||||||||||||||||||||||||
| 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2025 | 4Q 2024 | |||||||||||||||||||
| Interest income | % | % | |||||||||||||||||||||||
| Loans and fees on loans | $ | 218,852 | $ | 211,599 | $ | 204,513 | $ | 195,616 | $ | 194,821 | 3.4 | 12.3 | |||||||||||||
| Investment securities, taxable | 12,679 | 12,175 | 11,648 | 11,089 | 10,490 | 4.1 | 20.9 | ||||||||||||||||||
| Other interest earning assets | 8,124 | 7,654 | 8,123 | 6,400 | 7,257 | 6.1 | 11.9 | ||||||||||||||||||
| Total interest income | 239,655 | 231,428 | 224,284 | 213,105 | 212,568 | 3.6 | 12.7 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||
| Deposits | 114,879 | 114,266 | 113,380 | 110,888 | 113,357 | 0.5 | 1.3 | ||||||||||||||||||
| Borrowings | 1,656 | 1,677 | 1,683 | 1,685 | 1,737 | (1.3 | ) | (4.7 | ) | ||||||||||||||||
| Total interest expense | 116,535 | 115,943 | 115,063 | 112,573 | 115,094 | 0.5 | 1.3 | ||||||||||||||||||
| Net interest income | 123,120 | 115,485 | 109,221 | 100,532 | 97,474 | 6.6 | 26.3 | ||||||||||||||||||
| Provision for credit losses | 21,845 | 22,242 | 23,252 | 28,964 | 33,581 | (1.8 | ) | (34.9 | ) | ||||||||||||||||
| Net interest income after provision for credit losses | 101,275 | 93,243 | 85,969 | 71,568 | 63,893 | 8.6 | 58.5 | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||
| Loan servicing revenue | 9,227 | 8,812 | 8,565 | 8,298 | 8,524 | 4.7 | 8.2 | ||||||||||||||||||
| Loan servicing asset revaluation | (3,932 | ) | (4,360 | ) | (3,057 | ) | (4,728 | ) | (2,326 | ) | 9.8 | (69.0 | ) | ||||||||||||
| Net gains on sales of loans | 12,313 | 17,099 | 17,570 | 15,438 | 15,311 | (28.0 | ) | (19.6 | ) | ||||||||||||||||
| Net gain (loss) on loans accounted for under the fair value option | 1,518 | (350 | ) | 1,082 | (1,034 | ) | 195 | 533.7 | 678.5 | ||||||||||||||||
| Equity method investments income (loss) (1) | 23,812 | (1,470 | ) | (2,716 | ) | (2,239 | ) | (2,739 | ) | 1,719.9 | 969.4 | ||||||||||||||
| Equity security investments gains (losses), net | 4,691 | 18 | 1,004 | 20 | 12 | 25,961.1 | 38,991.7 | ||||||||||||||||||
| Lease income | 2,196 | 2,179 | 3,103 | 2,573 | 2,456 | 0.8 | (10.6 | ) | |||||||||||||||||
| Other noninterest income | (38 | ) | 4,917 | 4,904 | 4,043 | 6,115 | (100.8 | ) | (100.6 | ) | |||||||||||||||
| Total noninterest income | 49,787 | 26,845 | 30,455 | 22,371 | 27,548 | 85.5 | 80.7 | ||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||
| Salaries and employee benefits | 47,988 | 49,910 | 46,008 | 45,529 | 42,870 | (3.9 | ) | 11.9 | |||||||||||||||||
| Travel expense | 1,715 | 1,618 | 1,634 | 2,064 | 1,927 | 6.0 | (11.0 | ) | |||||||||||||||||
| Professional services expense | 2,855 | 1,999 | 2,874 | 3,024 | 2,797 | 42.8 | 2.1 | ||||||||||||||||||
| Advertising and marketing expense | 2,298 | 1,839 | 4,420 | 3,665 | 1,979 | 25.0 | 16.1 | ||||||||||||||||||
| Occupancy expense | 2,317 | 2,339 | 2,369 | 2,737 | 2,558 | (0.9 | ) | (9.4 | ) | ||||||||||||||||
| Technology expense | 13,397 | 10,234 | 10,066 | 9,251 | 9,406 | 30.9 | 42.4 | ||||||||||||||||||
| Equipment expense | 3,677 | 3,320 | 3,685 | 3,745 | 3,769 | 10.8 | (2.4 | ) | |||||||||||||||||
| Other loan origination and maintenance expense | 4,917 | 4,777 | 4,190 | 4,585 | 4,812 | 2.9 | 2.2 | ||||||||||||||||||
| Renewable energy tax credit investment impairment | 129 | 336 | 270 | — | 1,172 | (61.6 | ) | (89.0 | ) | ||||||||||||||||
| FDIC insurance | 3,933 | 3,643 | 3,545 | 3,551 | 3,053 | 8.0 | 28.8 | ||||||||||||||||||
| Other expense | 5,927 | 3,501 | 6,161 | 2,656 | 3,869 | 69.3 | 53.2 | ||||||||||||||||||
| Total noninterest expense | 89,153 | 83,516 | 85,222 | 80,807 | 78,212 | 6.7 | 14.0 | ||||||||||||||||||
| Income before taxes | 61,909 | 36,572 | 31,202 | 13,132 | 13,229 | 69.3 | 368.0 | ||||||||||||||||||
| Income tax expense | 15,787 | 10,106 | 7,815 | 3,464 | 3,386 | 56.2 | 366.2 | ||||||||||||||||||
| Net income | 46,122 | 26,466 | 23,387 | 9,668 | 9,843 | 74.3 | 368.6 | ||||||||||||||||||
| Net loss attributable to non-controlling interest | 88 | 50 | 41 | 49 | 57 | 76.0 | 54.4 | ||||||||||||||||||
| Net income attributable to Live Oak Bancshares, Inc. | 46,210 | 26,516 | 23,428 | 9,717 | 9,900 | 74.3 | 366.8 | ||||||||||||||||||
| Preferred stock dividends | 2,094 | 954 | — | — | — | 119.5 | 100.0 | ||||||||||||||||||
| Net income attributable to common shareholders | $ | 44,116 | $ | 25,562 | $ | 23,428 | $ | 9,717 | $ | 9,900 | 72.6 | 345.6 | |||||||||||||
| Earnings per share | |||||||||||||||||||||||||
| Basic | $ | 0.96 | $ | 0.56 | $ | 0.51 | $ | 0.21 | $ | 0.22 | 71.4 | 336.4 | |||||||||||||
| Diluted | $ | 0.95 | $ | 0.55 | $ | 0.51 | $ | 0.21 | $ | 0.22 | 72.7 | 331.8 | |||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||||
| Basic | 45,906,268 | 45,780,794 | 45,634,741 | 45,377,965 | 45,224,470 | ||||||||||||||||||||
| Diluted | 46,298,408 | 46,216,958 | 45,795,608 | 45,754,499 | 46,157,979 | ||||||||||||||||||||
(1) Includes a $24.1 million pre-tax gain on sale of Apiture, Inc.
| Live Oak Bancshares, Inc. Quarterly Balance Sheets (unaudited) (Dollars in thousands) | |||||||||||||||||||||||||
| As of the quarter ended | 4Q 2025 Change vs. | ||||||||||||||||||||||||
| 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2025 | 4Q 2024 | |||||||||||||||||||
| Assets | % | % | |||||||||||||||||||||||
| Cash and due from banks | $ | 864,904 | $ | 892,445 | $ | 662,755 | $ | 744,263 | $ | 608,800 | (3.1 | ) | 42.1 | ||||||||||||
| Certificate of deposit with other banks | 250 | 250 | 250 | 250 | 250 | — | — | ||||||||||||||||||
| Investment securities available-for-sale | 1,427,401 | 1,373,219 | 1,325,206 | 1,312,680 | 1,248,203 | 3.9 | 14.4 | ||||||||||||||||||
| Loans held for sale | 420,055 | 360,693 | 350,791 | 367,955 | 346,002 | 16.5 | 21.4 | ||||||||||||||||||
| Loans and leases held for investment (1) | 11,973,622 | 11,554,818 | 11,014,055 | 10,693,911 | 10,233,374 | 3.6 | 17.0 | ||||||||||||||||||
| Allowance for credit losses on loans and leases | (192,264 | ) | (185,700 | ) | (182,231 | ) | (190,184 | ) | (167,516 | ) | (3.5 | ) | (14.8 | ) | |||||||||||
| Net loans and leases | 11,781,358 | 11,369,118 | 10,831,824 | 10,503,727 | 10,065,858 | 3.6 | 17.0 | ||||||||||||||||||
| Premises and equipment, net | 240,203 | 241,140 | 246,493 | 259,113 | 264,059 | (0.4 | ) | (9.0 | ) | ||||||||||||||||
| Foreclosed assets | 8,208 | 11,024 | 6,318 | 2,108 | 1,944 | (25.5 | ) | 322.2 | |||||||||||||||||
| Servicing assets | 63,155 | 62,491 | 60,359 | 56,911 | 56,144 | 1.1 | 12.5 | ||||||||||||||||||
| Other assets | 329,244 | 355,522 | 347,212 | 348,697 | 352,120 | (7.4 | ) | (6.5 | ) | ||||||||||||||||
| Total assets | $ | 15,134,778 | $ | 14,665,902 | $ | 13,831,208 | $ | 13,595,704 | $ | 12,943,380 | 3.2 | 16.9 | |||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Noninterest-bearing | $ | 515,051 | $ | 494,019 | $ | 393,393 | $ | 386,108 | $ | 318,890 | 4.3 | 61.5 | |||||||||||||
| Interest-bearing | 13,173,608 | 12,796,704 | 12,201,397 | 12,009,837 | 11,441,604 | 2.9 | 15.1 | ||||||||||||||||||
| Total deposits | 13,688,659 | 13,290,723 | 12,594,790 | 12,395,945 | 11,760,494 | 3.0 | 16.4 | ||||||||||||||||||
| Borrowings | 102,404 | 105,045 | 107,659 | 110,247 | 112,820 | (2.5 | ) | (9.2 | ) | ||||||||||||||||
| Other liabilities | 89,609 | 67,585 | 61,494 | 58,065 | 66,570 | 32.6 | 34.6 | ||||||||||||||||||
| Total liabilities | 13,880,672 | 13,463,353 | 12,763,943 | 12,564,257 | 11,939,884 | 3.1 | 16.3 | ||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||
| Preferred stock | 96,266 | 96,266 | — | — | — | — | 100.0 | ||||||||||||||||||
| Class A common stock (voting) | 388,389 | 383,288 | 377,953 | 370,513 | 365,607 | 1.3 | 6.2 | ||||||||||||||||||
| Class B common stock (non-voting) | — | — | — | — | — | — | — | ||||||||||||||||||
| Retained earnings | 809,885 | 770,820 | 746,450 | 724,215 | 715,767 | 5.1 | 13.1 | ||||||||||||||||||
| Accumulated other comprehensive loss | (44,672 | ) | (52,151 | ) | (61,514 | ) | (67,698 | ) | (82,344 | ) | 14.3 | 45.7 | |||||||||||||
| Total shareholders’ equity attributed to Live Oak Bancshares, Inc. | 1,249,868 | 1,198,223 | 1,062,889 | 1,027,030 | 999,030 | 4.3 | 25.1 | ||||||||||||||||||
| Non-controlling interest | 4,238 | 4,326 | 4,376 | 4,417 | 4,466 | (2.0 | ) | (5.1 | ) | ||||||||||||||||
| Total shareholders’ equity | 1,254,106 | 1,202,549 | 1,067,265 | 1,031,447 | 1,003,496 | 4.3 | 25.0 | ||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 15,134,778 | $ | 14,665,902 | $ | 13,831,208 | $ | 13,595,704 | $ | 12,943,380 | 3.2 | 16.9 | |||||||||||||
(1) Includes $260.6 million, $280.3 million, $303.8 million, $316.8 million and $328.7 million of loans measured at fair value for the quarters ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.
| Live Oak Bancshares, Inc. Statements of Income (unaudited) (Dollars in thousands, except per share data) | |||||||
| Year Ended | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| Interest income | |||||||
| Loans and fees on loans | $ | 830,580 | $ | 744,841 | |||
| Investment securities, taxable | 47,591 | 38,413 | |||||
| Other interest earning assets | 30,301 | 29,118 | |||||
| Total interest income | 908,472 | 812,372 | |||||
| Interest expense | |||||||
| Deposits | 453,413 | 430,887 | |||||
| Borrowings | 6,701 | 5,580 | |||||
| Total interest expense | 460,114 | 436,467 | |||||
| Net interest income | 448,358 | 375,905 | |||||
| Provision for credit losses | 96,303 | 96,212 | |||||
| Net interest income after provision for credit losses | 352,055 | 279,693 | |||||
| Noninterest income | |||||||
| Loan servicing revenue | 34,902 | 31,535 | |||||
| Loan servicing asset revaluation | (16,077 | ) | (12,155 | ) | |||
| Net gains on sales of loans | 62,420 | 49,770 | |||||
| Net gain on loans accounted for under the fair value option | 1,216 | 2,403 | |||||
| Equity method investments income (loss) (1) | 17,387 | (10,921 | ) | ||||
| Equity security investments gains (losses), net | 5,733 | 553 | |||||
| Lease income | 10,051 | 9,756 | |||||
| Management fee income | — | 7,658 | |||||
| Other noninterest income | 13,826 | 34,053 | |||||
| Total noninterest income | 129,458 | 112,652 | |||||
| Noninterest expense | |||||||
| Salaries and employee benefits | 189,435 | 174,707 | |||||
| Travel expense | 7,031 | 7,170 | |||||
| Professional services expense | 10,752 | 11,023 | |||||
| Advertising and marketing expense | 12,222 | 11,148 | |||||
| Occupancy expense | 9,762 | 10,000 | |||||
| Technology expense | 42,948 | 34,206 | |||||
| Equipment expense | 14,427 | 13,826 | |||||
| Other loan origination and maintenance expense | 18,469 | 17,254 | |||||
| Renewable energy tax credit investment impairment | 735 | 530 | |||||
| FDIC insurance | 14,672 | 10,835 | |||||
| Other expense | 18,245 | 12,411 | |||||
| Total noninterest expense | 338,698 | 303,110 | |||||
| Income before taxes | 142,815 | 89,235 | |||||
| Income tax expense | 37,172 | 11,818 | |||||
| Net income | 105,643 | 77,417 | |||||
| Net loss attributable to non-controlling interest | 228 | 57 | |||||
| Net income attributable to Live Oak Bancshares, Inc. | 105,871 | 77,474 | |||||
| Preferred stock dividends | 3,048 | — | |||||
| Net income attributable to common shareholders | $ | 102,823 | $ | 77,474 | |||
| Earnings per share | |||||||
| Basic | $ | 2.25 | $ | 1.72 | |||
| Diluted | $ | 2.23 | $ | 1.69 | |||
| Weighted average shares outstanding | |||||||
| Basic | 45,701,364 | 45,009,567 | |||||
| Diluted | 46,042,790 | 45,820,321 | |||||
(1) Includes a $24.1 million pre-tax gain on sale of Apiture, Inc.
| Live Oak Bancshares, Inc. Quarterly Selected Financial Data (Dollars in thousands, except per share data) | |||||||||||||||||||
| As of and for the three months ended | |||||||||||||||||||
| 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | 4Q 2024 | |||||||||||||||
| Income Statement Data | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 44,116 | $ | 25,562 | $ | 23,428 | $ | 9,717 | $ | 9,900 | |||||||||
| Per Common Share | |||||||||||||||||||
| Net income, diluted | $ | 0.95 | $ | 0.55 | $ | 0.51 | $ | 0.21 | $ | 0.22 | |||||||||
| Dividends declared – common | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||||||||
| Book value per common share | 25.06 | 24.03 | 23.36 | 22.62 | 22.12 | ||||||||||||||
| Tangible book value per common share (1) | 24.97 | 23.96 | 23.29 | 22.55 | 22.05 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on average assets (annualized) | 1.19 | % | 0.72 | % | 0.68 | % | 0.30 | % | 0.31 | % | |||||||||
| Return on average common equity (annualized) | 15.25 | 9.32 | 8.85 | 3.78 | 3.85 | ||||||||||||||
| Net interest margin | 3.38 | 3.33 | 3.28 | 3.20 | 3.15 | ||||||||||||||
| Efficiency ratio (1) | 51.56 | 58.68 | 61.01 | 65.75 | 62.56 | ||||||||||||||
| Noninterest income to total revenue | 28.79 | 18.86 | 21.80 | 18.20 | 22.03 | ||||||||||||||
| Selected Loan Metrics | |||||||||||||||||||
| Loans and leases originated | $ | 1,638,113 | $ | 1,648,711 | $ | 1,526,592 | $ | 1,396,223 | $ | 1,421,118 | |||||||||
| Outstanding balance of sold loans serviced | 5,599,724 | 5,563,363 | 5,321,284 | 4,949,962 | 4,715,895 | ||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||
| Allowance for credit losses to loans and leases held for investment (3) | 1.64 | % | 1.65 | % | 1.70 | % | 1.83 | % | 1.69 | % | |||||||||
| Net charge-offs (3) | $ | 13,739 | $ | 16,816 | $ | 31,445 | $ | 6,774 | $ | 33,566 | |||||||||
| Net charge-offs to average loans and leases held for investment (2) (3) | 0.48 | % | 0.61 | % | 1.19 | % | 0.27 | % | 1.39 | % | |||||||||
| Nonperforming loans and leases at historical cost (3) | |||||||||||||||||||
| Unguaranteed | $ | 101,371 | $ | 76,887 | $ | 59,555 | $ | 99,907 | $ | 81,412 | |||||||||
| Guaranteed | 399,786 | 379,381 | 336,777 | 322,993 | 222,885 | ||||||||||||||
| Total | 501,157 | 456,268 | 396,332 | 422,900 | 304,297 | ||||||||||||||
| Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3) | 0.87 | % | 0.68 | % | 0.56 | % | 0.96 | % | 0.82 | % | |||||||||
| Nonperforming loans at fair value (4) | |||||||||||||||||||
| Unguaranteed | $ | 7,715 | $ | 6,775 | $ | 8,873 | $ | 9,938 | $ | 9,115 | |||||||||
| Guaranteed | 53,887 | 54,887 | 60,453 | 58,100 | 54,873 | ||||||||||||||
| Total | 61,602 | 61,662 | 69,326 | 68,038 | 63,988 | ||||||||||||||
| Unguaranteed nonperforming fair value loans to loans held for investment (4) | 2.96 | % | 2.42 | % | 2.92 | % | 3.14 | % | 2.77 | % | |||||||||
| Capital Ratios | |||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 10.53 | % | 10.51 | % | 10.67 | % | 10.67 | % | 11.04 | % | |||||||||
| Tier 1 leverage capital (to average assets) | 8.48 | 8.57 | 7.90 | 8.03 | 8.21 | ||||||||||||||
Notes to Quarterly Selected Financial Data
(1) See accompanying GAAP to Non-GAAP Reconciliation.
(2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3) Loans and leases at historical cost only (excludes loans measured at fair value).
(4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).
| Live Oak Bancshares, Inc. Quarterly Average Balances and Net Interest Margin (Dollars in thousands) | |||||||||||||||||||
| Three Months Ended December 31, 2025 | Three Months Ended September 30, 2025 | ||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
| Interest-earning assets: | |||||||||||||||||||
| Interest-earning balances in other banks | $ | 803,095 | $ | 8,124 | 4.01 | % | $ | 701,059 | $ | 7,654 | 4.33 | % | |||||||
| Investment securities | 1,465,824 | 12,679 | 3.43 | 1,418,810 | 12,175 | 3.40 | |||||||||||||
| Loans held for sale | 420,809 | 8,240 | 7.77 | 396,084 | 8,103 | 8.12 | |||||||||||||
| Loans and leases held for investment (1) | 11,777,219 | 210,612 | 7.09 | 11,249,234 | 203,496 | 7.18 | |||||||||||||
| Total interest-earning assets | 14,466,947 | 239,655 | 6.57 | 13,765,187 | 231,428 | 6.67 | |||||||||||||
| Less: Allowance for credit losses on loans and leases | (186,252 | ) | (182,001 | ) | |||||||||||||||
| Noninterest-earning assets | 546,969 | 530,529 | |||||||||||||||||
| Total assets | $ | 14,827,664 | $ | 14,113,715 | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing checking | $ | 413,433 | $ | 4,191 | 4.02 | % | $ | 366,699 | $ | 4,082 | 4.42 | % | |||||||
| Savings | 6,833,148 | 57,668 | 3.35 | 6,608,380 | 58,657 | 3.52 | |||||||||||||
| Money market accounts | 145,668 | 132 | 0.36 | 131,756 | 84 | 0.25 | |||||||||||||
| Certificates of deposit | 5,498,643 | 52,888 | 3.82 | 5,272,818 | 51,443 | 3.87 | |||||||||||||
| Total deposits | 12,890,892 | 114,879 | 3.54 | 12,379,653 | 114,266 | 3.66 | |||||||||||||
| Borrowings | 104,219 | 1,656 | 6.30 | 106,744 | 1,677 | 6.23 | |||||||||||||
| Total interest-bearing liabilities | 12,995,111 | 116,535 | 3.56 | 12,486,397 | 115,943 | 3.68 | |||||||||||||
| Noninterest-bearing deposits | 492,501 | 401,916 | |||||||||||||||||
| Noninterest-bearing liabilities | 82,684 | 63,133 | |||||||||||||||||
| Shareholders’ equity | 1,253,043 | 1,157,893 | |||||||||||||||||
| Non-controlling interest | 4,325 | 4,376 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 14,827,664 | $ | 14,113,715 | |||||||||||||||
| Net interest income and interest rate spread | $ | 123,120 | 3.01 | % | $ | 115,485 | 2.99 | % | |||||||||||
| Net interest margin | 3.38 | 3.33 | |||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 111.33 | % | 110.24 | % | |||||||||||||||
(1) Average loan and lease balances include non-accruing loans and leases.
| Live Oak Bancshares, Inc. GAAP to Non-GAAP Reconciliation (Dollars in thousands) | |||||||||||||||||||||||||
| As of and for the three months ended | For the year ended | ||||||||||||||||||||||||
| 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | 4Q 2024 | 2025 | 2024 | |||||||||||||||||||
| Total shareholders’ equity | $ | 1,254,106 | $ | 1,202,549 | $ | 1,067,265 | $ | 1,031,447 | $ | 1,003,496 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Preferred stock | 96,266 | 96,266 | — | — | — | ||||||||||||||||||||
| Non-controlling interest | 4,238 | 4,326 | — | — | — | ||||||||||||||||||||
| Total common shareholders’ equity | $ | 1,153,602 | $ | 1,101,957 | $ | 1,067,265 | $ | 1,031,447 | $ | 1,003,496 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||||||||
| Other intangible assets | 2,165 | 1,453 | 1,491 | 1,529 | 1,568 | ||||||||||||||||||||
| Tangible shareholders’ equity (a) | $ | 1,149,640 | $ | 1,098,707 | $ | 1,063,977 | $ | 1,028,121 | $ | 1,000,131 | |||||||||||||||
| Shares outstanding (c) | 46,032,402 | 45,855,739 | 45,686,081 | 45,589,633 | 45,359,425 | ||||||||||||||||||||
| Total assets | $ | 15,134,778 | $ | 14,665,902 | $ | 13,831,208 | $ | 13,595,704 | $ | 12,943,380 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||||||||
| Other intangible assets | 2,165 | 1,453 | 1,491 | 1,529 | 1,568 | ||||||||||||||||||||
| Tangible assets (b) | $ | 15,130,816 | $ | 14,662,652 | $ | 13,827,920 | $ | 13,592,378 | $ | 12,940,015 | |||||||||||||||
| Tangible shareholders’ equity to tangible assets (a/b) | 7.60 | % | 7.49 | % | 7.69 | % | 7.56 | % | 7.73 | % | |||||||||||||||
| Tangible book value per share (a/c) | $ | 24.97 | $ | 23.96 | $ | 23.29 | $ | 22.55 | $ | 22.05 | |||||||||||||||
| Efficiency ratio: | |||||||||||||||||||||||||
| Noninterest expense (d) | $ | 89,153 | $ | 83,516 | $ | 85,222 | $ | 80,807 | $ | 78,212 | $ | 338,698 | $ | 303,110 | |||||||||||
| Net interest income | 123,120 | 115,485 | 109,221 | 100,532 | 97,474 | 448,358 | 375,905 | ||||||||||||||||||
| Noninterest income | 49,787 | 26,845 | 30,455 | 22,371 | 27,548 | 129,458 | 112,652 | ||||||||||||||||||
| Total revenue (e) | $ | 172,907 | $ | 142,330 | $ | 139,676 | $ | 122,903 | $ | 125,022 | $ | 577,816 | $ | 488,557 | |||||||||||
| Efficiency ratio (d/e) | 51.56 | % | 58.68 | % | 61.01 | % | 65.75 | % | 62.56 | % | |||||||||||||||
| Pre-provision net revenue (e-d) | $ | 83,754 | $ | 58,814 | $ | 54,454 | $ | 42,096 | $ | 46,810 | $ | 239,118 | $ | 185,447 | |||||||||||
This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.
