Live Oak Bancshares, Inc. (LOB)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Market value

$1.6B

Dividend yield

0.3%

Cash

$927.6M

Debt

$99.8M

Debt to equity

0.08

Shares outstanding

46.3M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the third quarter of 2026 results, filed 21 October 2026.

• Net income to common shareholders fell. Net income attributable to common shareholders was $24.3 million, or $0.52 per diluted share, down from $34.7 million, or $0.74, in the second quarter, and $25.6 million, or $0.55, a year earlier.
• Total revenue rose 12.5% sequentially. Total revenue, net interest income plus noninterest income, was $175.6 million, up 12.5% from the second quarter and 23.4% from the third quarter of 2025.
• Pre-provision net revenue up sharply. Pre-provision net revenue was $89.9 million, up 25.6% from the second quarter and 52.9% from the third quarter of 2025, with noninterest expense rising only 1.4% sequentially.
• Provision more than doubled sequentially. Provision for credit losses was $54.7 million, up $28.9 million from the second quarter and $32.5 million from the third quarter of 2025, after $25.8 million in the prior quarter.
• Distillery portfolio action drove provision. Management said the provision was primarily driven by $17.0 million of decisive action on the stressed distillery portfolio, plus reserves to support continued loan growth.
• Net charge-offs rose to 1.00%. Net charge-offs were $32.1 million, or 1.00% of average loans held for investment annualized, up from $24.2 million, or 0.80%, in the second quarter.
• Unguaranteed nonperforming loans ratio rose. Unguaranteed nonperforming historical-cost loans were 1.05% of loans held for investment, up from 1.00% in the second quarter.
• Allowance coverage rose to 1.62%. The allowance for credit losses was 1.62% of loans held for investment, up from 1.56% at June 30.
• Loan production reached $2.1 billion. Loan and lease production was $2.13 billion, up 37.8% from the second quarter and 29.4% from the third quarter of 2025.
• Total loans and leases grew 5.5%. Total loans and leases were $13.87 billion, up 5.5% from June 30 and 16.4% from September 30, 2025.
• Loans held for investment rose 5.9%. Loans and leases held for investment were $13.37 billion, up 5.9% from June 30 and 15.7% from a year earlier.
• Deposits grew $920.6 million. Total deposits reached $15.47 billion, up $920.6 million or 6.3% from June 30, and 16.4% from a year earlier.
• Deposit cost rose to 3.47%. Deposit interest expense was $124.9 million, with the average deposit cost at 3.47%, up from 3.43% in the second quarter.
• Noninterest-bearing deposits rose. Noninterest-bearing deposits were $638.3 million, up 5.5% from June 30 and 29.2% from a year earlier.

Company events

The newest 8-K filings of 174 held.

Every filing

The newest filings with the SEC of 287 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

259 funds held it at 30 Jun 2026: 111 added and 66 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Bank of Nova Scotia (BNS): revenue $27.0B, market value $116.9B
• Bank of New York Mellon Corp. (BNY): revenue $21.4B, market value $100.9B
• Itaú Unibanco Holding S.A. (ITUB): revenue $30.1B, market value $81.6B
• Fifth Third Bancorp (FITB): revenue $10.7B, market value $48.5B
• State Street Corp. (STT): revenue $15.5B, market value $47.4B
• M&T Bank Corp. (MTB): revenue $10.0B, market value $31.8B
• Northern Trust Corp. (NTRS): revenue $9.1B, market value $31.4B
• Banco Bradesco S.A. (BBD): revenue –, market value $28.9B
• Citizens Financial Group Inc. (CFG): revenue $8.9B, market value $27.5B
• First Citizens Bancshares Inc. (FCNCA): revenue $9.6B, market value $26.9B

What the company does

Live Oak Bancshares is the bank holding company for Live Oak Banking Company, headquartered in Wilmington, North Carolina. The bank was incorporated in February 2008 as a North Carolina-chartered commercial bank and runs a national online platform for small business lending and deposit gathering. It has no traditional branch locations. Most of its loans are partly guaranteed by the U.S. Small Business Administration (the SBA) or by programs of the United States Department of Agriculture (the USDA). At 31 December 2025 it had 1,027 full-time employees.

How it earns its income

The company says it earns revenue mainly from net interest income, and secondarily from originating and selling government guaranteed loans. Income from loans it keeps is mostly interest. Income from loans it sells comes from loan servicing revenue, the revaluation of the related servicing assets, and net gains on the sales. The company generally keeps servicing loans after it sells them. It also records less routine gains and losses from its financial technology investments.

Typical SBA 7(a) and USDA guarantees range from 50% to 90%, depending on loan size and type. The company says these guarantees reduce the risk profile of the loans.

What it lends

Its main guaranteed programs are the SBA 7(a) program and four USDA programs: Rural Energy for America Program, Water and Environmental Program, Business & Industry, and Community Facilities. It concentrates on selected industries it calls "verticals", and also lends to some borrowers outside them.

Loans sit in two divisions, Small Business Banking and Commercial Banking, though the company is managed as one operating segment. At 31 December 2025, 90.9% of the combined held for sale and held for investment portfolio was variable rate. The company says this reflects a strategy of limiting interest rate risk.

Staff learn customers' businesses through virtual or regular visits wherever the customers are located. The company says its technology platform supports the loan process from origination through servicing.

How it is funded

The bank has no branch network, so it gathers deposits over the Internet and in its home community. The filing says the rates it offers are generally above the industry average.

- Savings: 49.0% - Time deposits: 43.0% - Noninterest-bearing demand: 3.8% - Interest-bearing checking: 3.0% - Money market: 1.2%

Uninsured deposits were 15.8% of the total. The bank also uses brokered deposits and loan sales as funding sources. It belongs to the Federal Home Loan Bank of Atlanta, which provides advances.

The Federal Reserve supervises Bancshares, which became a financial holding company in 2016. The Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks supervise the bank. At 31 December 2025 the bank had capital levels that qualify as "well capitalized". Its last Community Reinvestment Act examination, as of 11 March 2025, produced a "Satisfactory" rating.

Other businesses

- Government Loan Solutions (GLS): a management and technology consulting firm for participants in government guaranteed lending. It mainly works on settlement, accounting and securitization of SBA 7(a) and USDA guaranteed loans. - Live Oak Ventures: formed in August 2016 to invest in businesses that fit the company's financial technology initiative. It holds a controlling interest in Synply, a cloud-based platform for loan syndication. - Live Oak Private Wealth: a registered investment advisor that serves high-net-worth individuals and families. - Live Oak Clean Energy Financing: provides financing for renewable energy applications. - Live Oak Grove: provides on-site dining at the Wilmington headquarters. - Live Oak Number One: holds properties the bank has foreclosed on. - Tiburon Land Holdings: holds wetlands and protected land next to the headquarters.

How it competes

The company competes with national banks, including the largest in the country, and with community banks and credit unions. It also competes with finance companies, business development companies, peer-to-peer and marketplace lenders, and financial technology companies. The filing notes that many banks have higher legal lending limits and offer a wider range of services. It also says the non-bank lenders face fewer regulatory restrictions and may operate at lower cost.

The company says it occupies a lending category distinct from its competitors. It also cites staff with experience in its chosen verticals.

Its people

At 31 December 2025 the company had 1,027 full-time employees, 13 part-time employees and 37 independent contractors. None are covered by a collective bargaining agreement. Operations are 100% cloud-based, which lets employees move between remote and in-person work. The Wilmington campus has an on-site health clinic, a wellness facility and two dining locations. Pay combines base salary, cash bonus and equity compensation, and the company also offers a 401(k) savings plan.

*From Live Oak Bank's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1462120/000146212026000020/lob-20251231.htm)*

From the company's 10-K.