Financial Data and Key Metrics Changes - The company reported a record net income of $44 million and earnings per share of $0.95 for Q4 2025, both approximately three times higher than Q4 2024 [9] - Loan production reached $1.6 billion in Q4, contributing to a total of $6.2 billion for the year, marking a 17% annual loan balance growth [9][10] - Adjusted PP&R increased by 27% year-over-year, while adjusted EPS rose by 49% [6][11] Business Line Data and Key Metrics Changes - Business Checking balances doubled year-over-year to $377 million, significantly benefiting the interest expense line [10] - Live Oak Express contributed $12 million to gain on sales in 2025, a 100% increase from 2024 [16] - Approximately 70% of verticals saw increased production in 2025 compared to 2024, with both small business and commercial lending teams achieving double-digit growth rates [11] Market Data and Key Metrics Changes - Year-over-year customer deposit growth was 18%, despite a slight decline linked quarter due to typical Q4 seasonality [12][14] - The company’s total loan portfolio grew approximately 4% linked quarter, with a 17% increase year-over-year [12][14] Company Strategy and Development Direction - The company aims to maintain momentum in earnings outcomes that are consistent and sustainable over time, focusing on business checking and Live Oak Express as key growth initiatives [7][19] - The company is investing in technology and operational improvements to enhance customer service and efficiency, with a focus on becoming an AI-native bank [19][70] - The company is strategically moderating expense growth while supporting strong revenue growth, with an expected single-digit year-over-year growth rate in expenses [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in 2026 and beyond, citing a stable or low-rate environment as favorable for growth, margin, and credit outlook [19] - The company is focused on deepening customer relationships and increasing fee revenue through its strategic initiatives [19] - Management noted that while credit trends have improved, the company remains vigilant about maintaining credit quality amid industry challenges [45] Other Important Information - The company experienced a slight increase in non-accrual loans to $110 million, primarily driven by SBA credits, but overall credit metrics remain stable [18][45] - The company’s capital levels are healthy, with Q4 results matching asset growth and keeping capital levels relatively flat linked quarter [18] Q&A Session Summary Question: Can you discuss the dynamics of NII and NIM for the first quarter? - Management indicated that NIM and NII may experience compression in the near term due to Fed cuts, but growth will help restore upward momentum [24][25] Question: What is the outlook for gain on sale income? - Management expects gain on sale income in Q1 to be more in line with historical levels, with a typical increase in the latter part of the quarter [28][30] Question: How do you view the trajectory of margins with the anticipated Fed cuts? - Management anticipates that stable environments will allow for NIM expansion throughout the year, driven by growth [37] Question: What is the expected growth rate for expenses moving forward? - Management expects expense growth to moderate to single digits year-over-year as they focus on strategic investments [41][42] Question: Can you provide insights on credit trends and non-accrual loans? - Management noted that while non-accrual loans increased, overall credit quality remains stable, and they expect some relief for borrowers in 2026 due to interest rate cuts [45][46] Question: What are the expectations for Live Oak Express in 2026? - Management expressed an aspirational goal of reaching $1 billion in production over time, with ongoing efforts to build capabilities and improve efficiency [58][60]

Live Oak Bancshares (NYSE:LOB) Q4 2025 Earnings call January 22, 2026 09:00 AM ET Company ParticipantsWilliam C. Losch III - PresidentWalter Phifer - CFOChip Mahan - ChaIrman and CEOGreg Seward - EVP and General CounselConference Call ParticipantsDavid Feaster - AnalystBilly Young - AnalystCrispin Love - AnalystDavid Rochester - AnalystTimothy Switzer - AnalystOperatorGood morning, ladies and gentlemen, and welcome to Live Oak Bancshares' fourth quarter 2025 earnings conference call. At this time, all lines ...

Live Oak Bancshares (NYSE:LOB) Q4 2025 Earnings call January 22, 2026 09:00 AM ET Speaker5Good morning, ladies and gentlemen, and welcome to Live Oak Bancshares' fourth quarter 2025 earnings conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If anyone has any difficulties hearing the conference, please press star zero for operator assistance at any time. I would now like to turn the conference call over to Greg Sewar ...

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FOURTH QUARTER 2025 January 22, 2026 ©2026 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 December 2025, Live Oak Bancshares (LOB) reported revenue of $172.91 million, up 35% over the same period last year. EPS came in at $0.95, compared to $0.22 in the year-ago quarter.The reported revenue represents a surprise of +16.32% over the Zacks Consensus Estimate of $148.65 million. With the consensus EPS estimate being $0.56, the EPS surprise was +69.64%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Live Oak Bancshares (LOB) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +69.64%. A quarter ago, it was expected that this bank holding company would post earnings of $0.58 per share when it actually produced earnings of $0.55, delivering a surprise of -5.17%.Over the last four quart ...

Financial Performance - Net income attributable to common shareholders for Q4 2025 was $44.1 million, or $0.95 per diluted share, with a total annual net income of $102.8 million, or $2.23 per diluted share[1][6] - Total revenue for 2025 increased by 18% to $577.8 million compared to $488.6 million in 2024[6] - Net income attributable to Live Oak Bancshares, Inc. reached $105,871 thousand for the year ended December 31, 2025, compared to $77,474 thousand in 2024, reflecting a 36.7% increase[14] - Net income attributable to common shareholders was $44,116 million, a 72.6% increase from Q3 2025 and a 345.6% increase from Q4 2024[12] - Basic earnings per share for Q4 2025 was $0.96, up 71.4% from Q3 2025 and 336.4% from Q4 2024[12] - Basic earnings per share increased to $2.25 for the year ended December 31, 2025, compared to $1.72 in 2024, representing a 30.8% increase[14] Revenue and Income Sources - Total interest income for Q4 2025 reached $239.655 million, a 3.6% increase from Q3 2025 and a 12.7% increase from Q4 2024[12] - Net interest income after provision for credit losses was $101.275 million, reflecting an 8.6% increase from Q3 2025 and a 58.5% increase from Q4 2024[12] - Noninterest income surged to $49.787 million, an 85.5% increase compared to Q3 2025 and an 80.7% increase from Q4 2024[12] - Noninterest income totaled $129,458 thousand for the year ended December 31, 2025, up 15.0% from $112,652 thousand in 2024[14] Asset and Liability Management - Total assets grew by 16.9% to $15.13 billion, while total deposits increased by 16% to $13.69 billion[4][6] - Total assets increased to $15,134,778 thousand in Q4 2025, up 3.2% from Q3 2025 and 16.9% from Q4 2024[13] - Total liabilities reached $13,880,672 thousand in Q4 2025, a 3.1% increase from Q3 2025 and 16.3% from Q4 2024[13] - Shareholders' equity attributed to Live Oak Bancshares, Inc. increased to $1,249,868 thousand in Q4 2025, a 4.3% increase from Q3 2025 and 25.1% from Q4 2024[13] Credit and Provisioning - Provision expense for credit losses remained relatively flat at $96.3 million compared to $96.2 million in 2024[4][6] - Provision for credit losses decreased to $21.845 million, a 1.8% decrease from Q3 2025 and a 34.9% decrease from Q4 2024[12] - The provision for credit losses was $96,303 thousand for the year ended December 31, 2025, slightly higher than $96,212 thousand in 2024[14] Capital and Financing - The company raised $96.3 million in capital through a preferred stock offering in Q3 2025[4] - A pre-tax gain of $24.1 million was realized from the sale of Apiture, Inc., included in equity method investments income[4] Operational Efficiency - The efficiency ratio improved to 51.56% in Q4 2025, down from 58.68% in Q3 2025, indicating better cost management[15] - Pre-provision net revenue grew by 28.9%, driven by an 18.3% increase in revenue and an 11.7% rise in noninterest expense[4] - Noninterest expense for Q4 2025 was $89,153 thousand, compared to $83,516 thousand in Q3 2025, showing an increase of 6.5%[19] Future Outlook - Live Oak plans to continue focusing on small business banking and aims for further progress in 2026 and beyond[2]

Core Viewpoint - Live Oak Bancshares, Inc. reported strong financial performance for the year 2025, highlighting record loan growth, increased deposits, and a commitment to supporting small businesses, positioning the company for continued progress in 2026 and beyond [2][7]. Financial Performance - The net income attributable to common shareholders for Q4 2025 was $44.1 million, or $0.95 per diluted share, compared to $25.6 million in Q3 2025, reflecting a 73% increase [1][9]. - For the year ended December 31, 2025, net income attributable to common shareholders totaled $102.8 million, or $2.23 per diluted share, representing a 33% increase from $77.5 million in 2024 [1][19]. - Total revenue for 2025 was $577.8 million, an 18% increase from $488.6 million in 2024 [6][18]. Loan and Deposit Growth - The company achieved strong loan production of $6.21 billion in 2025, a 20% increase from $5.16 billion in 2024 [7][20]. - Total deposits grew by $1.93 billion to $13.69 billion, marking a 16% increase from $11.76 billion in 2024 [7][20]. Expense and Efficiency Metrics - Total noninterest expense for 2025 was $338.7 million, up 12% from $303.1 million in 2024 [8][19]. - The efficiency ratio improved to 51.56% in Q4 2025 from 58.68% in Q3 2025, indicating better cost management [20]. Asset Growth - Total assets increased by 16.9% to $15.13 billion as of Q4 2025, compared to $12.94 billion in Q4 2024 [7][16]. - The company raised $96.3 million in capital through a preferred stock offering in Q3 2025 [7]. Credit Quality - Provision expense for credit losses was $96.3 million, remaining relatively flat compared to $96.2 million in 2024 [7][19]. - The effective tax rate for 2025 was 26.0%, up from 13.2% in 2024 [8].

In its upcoming report, Live Oak Bancshares (LOB) is predicted by Wall Street analysts to post quarterly earnings of $0.56 per share, reflecting an increase of 154.6% compared to the same period last year. Revenues are forecasted to be $148.65 million, representing a year-over-year increase of 16.1%.The consensus EPS estimate for the quarter has been revised 6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial esti ...