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]

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, approximately three times the figures from 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] - Core profitability metrics showed a 27% growth in core PP&R and a 49% increase in adjusted EPS compared to the previous year [5][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 the previous year [16][19] - 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] Company Strategy and Development Direction - The company aims to maintain momentum in earnings outcomes and deepen customer relationships through initiatives like Business Checking and Live Oak Express [7][19] - There is a focus on leveraging AI and technology to enhance customer service and operational efficiency [19][70] - The company is strategically investing in areas that support revenue growth while moderating expense growth, targeting single-digit year-over-year expense growth [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in 2026, citing a stable or low-rate environment as favorable for growth and credit outlook [19] - The company is focused on improving credit trends and maintaining a strong credit culture, with expectations for relief in borrower pressures due to interest rate cuts [46][72] Other Important Information - The company experienced a modest increase in non-accrual loans, primarily driven by SBA credits, but remains confident in its credit management [18] - Capital levels are healthy, with a stable outlook for the company's growth trajectory [18] Q&A Session Summary Question: Can you discuss the dynamics of NII and NIM for the first quarter? - Management indicated that NIM may experience compression due to Fed cuts, but expects NII to remain strong as deposit pricing adjusts [24][25] Question: What is the outlook for gain on sale income? - Management expects Q1 gain on sale income to be more in line with Q1 2025, following a typical seasonal pattern [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][38] Question: What are the expectations for expense growth moving forward? - Management expects mid-single digit growth for expenses, focusing on strategic investments [41][55] Question: Can you provide insights on credit trends and non-accrual loans? - Management noted stable credit trends with low past dues and classified loans, while non-accruals are manageable [44][46] Question: What are the expectations for Live Oak Express in 2026? - Management aims for significant growth in Live Oak Express, with aspirational goals of $1 billion in production over time [58][60]

Financial Data and Key Metrics Changes - The company reported a record loan production of $6.2 billion for 2025, representing a 17% annual loan balance growth [9][10] - Q4 2025 net income reached $44 million, with earnings per share of $0.95, both approximately three times higher than Q4 2024 [9][10] - Adjusted PP&R for Q4 was $64 million, a 21% increase compared to Q4 2024, while adjusted EPS doubled over the same period [11][12] Business Line Data and Key Metrics Changes - Business Checking balances grew to $377 million, doubling year-over-year, significantly benefiting the interest expense line [10][12] - Live Oak Express contributed $12 million to gain on sales in 2025, a twofold increase from 2024 [10][17] - 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][12] 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][13] - The company’s total low-cost deposits, including non-interest-bearing checking balances, doubled year-over-year to approximately 4% of the total deposit base [13] Company Strategy and Development Direction - The company aims to continue momentum in earnings outcomes that are consistent and sustainable over time, focusing on business checking and Live Oak Express as key growth initiatives [6][19] - The company is investing in technology and operational improvements to enhance customer service and efficiency, with a goal of creating an AI-native bank over the next three to five years [62][63] - The company is strategically moderating expense growth while supporting strong revenue growth, with an expected single-digit year-over-year growth rate in expenses [38][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in 2026 and beyond, anticipating a stable or low-rate environment coupled with strong loan growth [19] - The company expects to see some relief in credit trends as borrowers benefit from interest rate cuts in 2026 [42][64] - Management noted that while credit trends have shown some pressure, the company continues to outperform industry peers in terms of credit quality [6][42] Other Important Information - The company experienced a significant gain of $28 million from its ventures investment portfolio, primarily due to a $24 million gain from the Apiture sale [9][10] - Non-accrual loans increased to $110 million, or 91 basis points of the unguaranteed held-for-investment loan portfolio, but management indicated that this increase is manageable [18][42] 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 near-term compression due to Fed cuts, but growth will push back towards an upward trajectory [24][25] Question: What is the outlook for gain on sale income in the first quarter? - Management expects Q1 gain on sale income to be more in line with Q1 2025, with a typical increase in the mid to back end of the quarter [27][28] Question: How do you view the trajectory of margins over the year? - Management anticipates that stable environments will allow for NIM expansion throughout the year, driven by growth [34] Question: Can you provide insights on credit trends and non-accrual loans? - Management noted that while non-accrual loans have increased, the overall credit quality remains stable, and the company continues to outperform industry averages [42][64] Question: What are the expectations for expenses moving forward? - Management expects expense growth to moderate to single digits year-over-year as they focus on strategic investments [38][50] Question: How is the company leveraging AI in its operations? - The company is actively exploring AI applications across various departments to enhance efficiency and customer experience, aiming to become an AI-native bank [62][63]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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 ...

Core Insights - Live Oak Bancshares (LOB) reported a revenue of $172.91 million for the quarter ended December 2025, marking a 35% increase year-over-year and exceeding the Zacks Consensus Estimate by 16.32% [1] - The company's earnings per share (EPS) reached $0.95, significantly up from $0.22 in the same quarter last year, resulting in an EPS surprise of 69.64% over the consensus estimate of $0.56 [1] Financial Performance Metrics - Net charge-offs to average loans and leases held for investment were reported at 0.5%, slightly above the average estimate of 0.4% [4] - The net interest margin was 3.4%, surpassing the estimated 3.3% [4] - The average balance of total interest-earning assets was $14.47 billion, exceeding the average estimate of $14.03 billion [4] - The efficiency ratio stood at 51.6%, significantly better than the estimated 66.6% [4] - Total noninterest income was reported at $49.79 million, well above the estimated $30.69 million [4] - Net interest income reached $123.12 million, compared to the average estimate of $116.39 million [4] Stock Performance - Over the past month, shares of Live Oak Bancshares have returned +2%, while the Zacks S&P 500 composite experienced a -0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Live Oak Bancshares reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing a significant increase from $0.22 per share a year ago, resulting in an earnings surprise of +69.64% [1] - The company posted revenues of $172.91 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 16.32%, compared to year-ago revenues of $128.07 million [2] - Live Oak Bancshares shares have increased approximately 6.9% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $154.35 million, and for the current fiscal year, it is $2.98 on revenues of $656.75 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 31% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8] - SouthState, another company in the same industry, is expected to report quarterly earnings of $2.30 per share, reflecting a year-over-year change of +19.2%, with revenues anticipated to be $666.64 million, up 48% from the previous year [9][10]

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].

Core Viewpoint - Live Oak Bancshares (LOB) is expected to report significant earnings growth, with a projected EPS of $0.56, marking a 154.6% increase year-over-year, and revenues forecasted at $148.65 million, reflecting a 16.1% increase [1] Earnings Estimates - The consensus EPS estimate has been revised 6% lower in the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between these revisions and short-term price performance [3] Key Metrics Forecast - Analysts predict a 'Net Interest Margin' of 3.3%, up from 3.2% in the same quarter last year [5] - The 'Average Balance - Total interest-earning assets' is expected to reach $14.03 billion, compared to $12.31 billion in the same quarter last year [5] - The consensus estimate for the 'Efficiency Ratio' is 66.6%, an increase from 63.5% reported in the same quarter last year [6] - 'Total noninterest income' is projected at $30.69 million, slightly up from $30.59 million in the same quarter last year [6] - 'Net Interest Income' is forecasted to be $116.39 million, compared to $97.47 million in the same quarter last year [6] Stock Performance - Shares of Live Oak Bancshares have changed by +0.2% in the past month, while the Zacks S&P 500 composite has moved +1.6%, indicating that LOB is expected to mirror overall market performance [7]