Live Oak Bancshares, Inc. (NYSE:LOB) Q1 2025 Earnings Conference Call April 24, 2025 9:00 AM ET Company Participants Greg Seward - General Counsel and Chief Risk Officer Chip Mahan - Chairman and Chief Executive Officer BJ Losch - President Walt Phifer - Chief Financial Officer Michael Cairns - Chief Credit Officer Conference Call Participants Crispin Love - Piper Sandler Tim Switzer - KBW David Feaster - Raymond James Operator Good morning, ladies and gentlemen, and welcome to the Q1 2025 Live Oak Bancshar ...

FIRST QUARTER 2025 April 24, 2025 ©2025 Live Oak Bancshares. All rights reserved. FORWARD LOOKING STATEMENTS Information in this presentation may contain "forward-looking statements" within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business and usually can be identified by the use of forward-looking terminology such as "may," "will," "would," "should," "could," "expect," ...

For the quarter ended March 2025, Live Oak Bancshares (LOB) reported revenue of $126.11 million, up 8.5% over the same period last year. EPS came in at $0.21, compared to $0.36 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $130.7 million, representing a surprise of -3.51%. The company delivered an EPS surprise of -44.74%, with the consensus EPS estimate being $0.38.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Live Oak's performance in the quarter compared to the fourth quarter of 2024, includes these notable items: Exhibit 99.1 Live Oak Bancshares, Inc. Reports First Quarter 2025 Results WILMINGTON, NC, April 23, 2025 - Live Oak Bancshares, Inc. (NYSE: LOB) ("Live Oak" or "the Company") today reported first quarter of 2025 net income attributable to the Company of $9.7 million, or $0.21 per diluted share. "Live Oak Bank demonstrated strong growth across our lending and deposit franchises in the first quarter, al ...

WILMINGTON, N.C., April 23, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported first quarter of 2025 net income attributable to the Company of $9.7 million, or $0.21 per diluted share. Live Oak’s performance in the quarter compared to the fourth quarter of 2024, includes these notable items: Record first quarter production of $1.40 billion accompanied by strong deposit growth of $635.5 million, with total assets growing by 5.0% to $13.60 billionNet in ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LOB over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking ...

Live Telephone Dial-In U.S.: 800.549.8228 International: +1 646.564.2877 Pass Code: None Required Live Webcast Log-In WILMINGTON, N.C., April 09, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) today announced that it will report its first quarter 2025 financial results after U.S. financial markets close on Wednesday, April 23, 2025. In conjunction with this announcement, Live Oak will host a conference call to discuss the company's financial results and business outlook on Thursday, April 24 ...

Employee and Workplace Environment - As of December 31, 2024, the Company had 1,008 full-time employees, 17 part-time employees, and 27 independent contractors[26] - The Company operates on a cloud-based system, allowing flexible work arrangements without affecting operations or customer experience[32] - The Company focuses on employee wellness, providing on-site health clinics, physical therapy, and wellness facilities[31] - The Company aims to foster a supportive environment through Employee Resource Groups and initiatives for underrepresented backgrounds[27] - The Company emphasizes professional development through training programs and tuition reimbursement for job-specific certifications[34] Compensation and Incentives - The Company has a compensation program that includes base salary, cash bonuses, and equity compensation to align employee interests with shareholder value[28] - The Company adopted a clawback policy for excess incentive-based compensation[108] - The Federal Reserve reviews incentive compensation arrangements of bank holding companies as part of its supervisory process[106] Regulatory Compliance and Oversight - The Company is subject to extensive regulation under the Bank Holding Company Act and must comply with NYSE listing standards[44][47] - Live Oak Bank is subject to extensive supervision and regulation by the NCCOB, which oversees compliance with state banking statutes[58] - The Company is committed to monitoring regulatory changes that may impact its operations following the recent shift in political control[46] - The Company is subject to evolving laws and regulations governing privacy and data security, which may present compliance challenges[87] - Bancshares filed an election to become a financial holding company in 2016, allowing it to engage in an expanded list of financial activities[52] Financial Performance and Growth - Increased net interest income of $30.6 million, or 8.9%[255] - Increased net gains on sales of loans of $14.4 million, or 30.8%[255] - Increased other noninterest income of $14.0 million, driven by various asset sales[255] - Total assets as of December 31, 2024, were $12.94 billion for the Company and $12.86 billion for the Bank[113] - Average interest-earning assets increased to $11.5 billion in 2024, with a net interest margin of 3.27%[257] - Noninterest income increased by $12.0 million, or 10.8%, to $123.8 million in 2024, driven by higher servicing revenue and net gains on sales of loans[268] Capital and Liquidity - Bancshares' risk-based capital ratios as of December 31, 2024, were 11.04% for common equity Tier 1 capital to risk-weighted assets, 11.04% for Tier 1 capital to risk-weighted assets, and 12.29% for total capital to risk-weighted assets[70] - Bancshares' leverage ratio at December 31, 2024, was 8.21%, down from 8.58% at December 31, 2023[71] - Live Oak Bank is classified as "well capitalized" under applicable regulations as of December 31, 2024[74] - The minimum risk-based capital ratios required are 4.5% for common equity Tier 1 capital, 6% for Tier 1 capital, and 8% for total capital[69] - The Company has $621.4 million of its investment securities portfolio pledged for unused borrowing capacity, leaving $626.8 million available to be pledged as collateral[343] Loan and Credit Quality - For 2024, the provision for credit losses was $96.2 million, an increase of $44.9 million compared to $51.3 million in 2023, primarily due to record loan growth and macroeconomic impacts[262] - Loans and leases held for investment at historical cost increased by $1.66 billion, or 20.1%, reaching $9.90 billion as of December 31, 2024, compared to the previous year[262] - Net charge-offs for loans and leases were $46.7 million, or 0.52% of average loans, representing an increase of $25.3 million, or 118.5%, from $21.4 million, or 0.28%, in 2023[263] - Total nonperforming loans and leases to total loans and leases held for investment rose to 3.07% from 1.64% year-over-year[309] - The allowance for credit losses on loans and leases was $167.5 million, compared to $125.8 million in 2023[310] Deposits and Funding - Total deposits rose by $1.49 billion, or 14.5%, to $11.76 billion, supporting the growth in the loan and lease portfolio[289] - Noninterest-bearing demand deposits rose by $59.6 million, or 23.0%, during 2024, while interest-bearing deposits increased by $1.43 billion, or 14.2%[336] - Total uninsured deposits were $1.71 billion, representing 14.5% of total deposits at December 31, 2024[336] Market and Economic Conditions - The baseline economic forecast assumes the Federal Reserve will cut the policy rate twice in 2025, with CPI rising 2.9% and GDP growth at 1.7% by Q4 2025[354] - A hypothetical adverse scenario predicts an unemployment rate of 8.2% by the end of 2025, significantly higher than the baseline projection[356] - Future monetary policies of the Federal Reserve are expected to continue impacting the Company's operating results[110]

Investment Strategy - Prefers long-term investments with a contrarian view [1] - Primarily invests in stocks and ETFs, focusing on US companies but also analyzes European and Chinese companies [1] - Emphasizes fundamental analysis over technical analysis, evaluating actual company results rather than price movements [1] Sector Focus - Banking sector is of particular interest due to its importance in understanding economic health [1] - Also interested in Macroeconomics, indicating a broader economic perspective in investment decisions [1]

©2025 Live Oak Bancshares. All rights reserved. FORWARD LOOKING STATEMENTS FOURTH QUARTER 2024 January 23, 2025 Information in this presentation may contain "forward-looking statements" within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business and usually can be identified by the use of forward-looking terminology such as "may," "will," "would," "should," "could," "expect ...