[Second Quarter 2025 Earnings Highlights](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Highlights) Live Oak Bancshares achieved significant Q2 2025 financial growth, driven by record loan production, healthy revenue, and reduced credit loss provisions [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Live Oak Bancshares achieved significant financial growth in Q2 2025, with substantial increases in net income and diluted EPS, driven by record loan production, healthy revenue, and reduced provision for credit losses - The company achieved **net income of $23.4 million** and **diluted earnings per share of $0.51** in Q2 2025[1](index=1&type=chunk) - CEO James S. (Chip) Mahan III stated that Live Oak Bank performed exceptionally in Q2, benefiting from outstanding growth, healthy revenue, and lower provision expenses[1](index=1&type=chunk) [Key Performance Indicators](index=1&type=section&id=Key%20Performance%20Indicators) In Q2 2025, the company achieved strong growth in loan production, deposits, total assets, net interest income, and pre-tax net income, alongside a decrease in the provision for credit losses - Record **loan production of $1.53 billion** in the second quarter[3](index=3&type=chunk) - **Deposits grew by $198.8 million**, with **total assets increasing 1.7% to $13.83 billion**[3](index=3&type=chunk) - **Net interest income increased by 8.6%**, and the **net interest margin rose from 3.20% to 3.28%**[3](index=3&type=chunk) - **Revenue grew by 14.0%**, **non-interest expense by 6.3%**, and **pre-tax net income by 29.4%**[3](index=3&type=chunk) - **Provision for credit losses was $23.3 million**, a **decrease of $5.7 million**, influenced by moderating credit trends, loan growth, and the macroeconomic environment[3](index=3&type=chunk) [Summary of Key Financial Measures](index=2&type=section&id=Summary%20of%20Key%20Financial%20Measures) Live Oak Bancshares demonstrated strong financial performance in Q2 2025, with significant year-over-year and quarter-over-quarter growth in total revenue and net income, a substantial increase in diluted EPS, and robust loan and lease production Key Financial Measures Summary (Thousands of USD, except per share data) | Metric (Thousands of USD, except per share data) | 2Q 2025 | 1Q 2025 | 2Q 2024 | 2Q 2025 vs 1Q 2025 (%) | 2Q 2025 vs 2Q 2024 (%) | | :------------------------------------------- | :------ | :------ | :------ | :----------------------- | :----------------------- | | Total Revenue | 143,747 | 126,113 | 125,479 | 14.0 | 14.6 | | Non-interest Expense | 89,293 | 84,017 | 77,656 | 6.3 | 15.0 | | Pre-tax Income | 31,202 | 13,132 | 36,058 | 137.6 | -13.5 | | Net Income Attributable to Live Oak Bancshares | 23,428 | 9,717 | 26,963 | 141.1 | -13.1 | | Diluted Earnings Per Share | 0.51 | 0.21 | 0.59 | 142.9 | -13.6 | | Loan and Lease Production | 1,526,592 | 1,396,223 | 1,171,141 | 9.3 | 30.4 | | Total Loans and Leases | 11,364,846 | 11,061,866 | 9,535,766 | 2.7 | 19.2 | | Total Assets | 13,831,208 | 13,595,704 | 11,868,570 | 1.7 | 16.5 | | Total Deposits | 12,594,790 | 12,395,945 | 10,707,031 | 1.6 | 17.6 | [Conference Call Information](index=1&type=section&id=Conference%20Call%20Information) Live Oak Bancshares will host a conference call on July 24, 2025, to discuss the company's financial results and business outlook, with details provided for dial-in and webcast access - The conference call will be held on **July 24, 2025, at 9:00 AM ET**, to discuss the company's financial results and business outlook[2](index=2&type=chunk) - Participation is available via **phone** (US: 800.549.8228, International: +1 646.564.2877, no password required) and **webcast** (investor.liveoakbank.com, registration required)[2](index=2&type=chunk)[3](index=3&type=chunk) [Important Disclosures](index=3&type=section&id=Important%20Disclosures) This section outlines forward-looking statements, company background, and contact information [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future events or decisions, which are not guarantees of future performance, as actual results may differ materially due to various risks and uncertainties including SBA rule changes, pandemic impacts, banking industry developments, technological risks, competition, and market and economic conditions - Forward-looking statements are not guarantees of future performance, and actual results may differ materially due to factors such as SBA rules, pandemics, banking industry developments, technological risks, competition, and market and economic conditions[6](index=6&type=chunk) - The company explicitly disclaims any obligation to update forward-looking statements, except as required by law[6](index=6&type=chunk) [About Live Oak Bancshares, Inc.](index=3&type=section&id=About%20Live%20Oak%20Bancshares%2C%20Inc.) Live Oak Bancshares, Inc. is a financial holding company and the parent of Live Oak Bank, dedicated to redefining banking through service and technological innovation - **Live Oak Bancshares, Inc. (NYSE: LOB)** is a financial holding company and the parent company of Live Oak Bank[7](index=7&type=chunk) - The company and its subsidiaries partner with businesses focused on service and technology to redefine banking[7](index=7&type=chunk) [Contacts](index=3&type=section&id=Contacts) Contact information for investor relations and media relations is provided - **Investor Relations Contact**: Walter J. Phifer (CFO), Phone: 910.202.6926[8](index=8&type=chunk) - **Media Relations Contact**: Claire Parker (Corporate Communications), Phone: 910.597.1592[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents detailed quarterly and six-month financial statements, including income, balance sheets, and selected financial data [Quarterly Statements of Income](index=4&type=section&id=Quarterly%20Statements%20of%20Income) In Q2 2025, Live Oak Bancshares saw significant growth in both net interest income and non-interest income, driving a substantial increase in net income, with provision for credit losses decreasing quarter-over-quarter but increasing significantly year-over-year Key Quarterly Statements of Income Data (Thousands of USD) | Metric | 2Q 2025 | 1Q 2025 | 2Q 2024 | 2Q 2025 vs 1Q 2025 (%) | 2Q 2025 vs 2Q 2024 (%) | | :----------------------------------------- | :------ | :------ | :------ | :----------------------- | :----------------------- | | Total Interest Income | 224,284 | 213,105 | 198,448 | 5.2 | 13.0 | | Total Interest Expense | 115,063 | 112,573 | 107,128 | 2.2 | 7.4 | | Net Interest Income | 109,221 | 100,532 | 91,320 | 8.6 | 19.6 | | Provision for Credit Losses | 23,252 | 28,964 | 11,765 | -19.7 | 97.6 | | Net Interest Income (after provision for credit losses) | 85,969 | 71,568 | 79,555 | 20.1 | 8.1 | | Total Non-interest Income | 34,526 | 25,581 | 34,159 | 35.0 | 1.1 | | Total Non-interest Expense | 89,293 | 84,017 | 77,656 | 6.3 | 15.0 | | Pre-tax Income | 31,202 | 13,132 | 36,058 | 137.6 | -13.5 | | Net Income Attributable to Live Oak Bancshares | 23,428 | 9,717 | 26,963 | 141.1 | -13.1 | | Diluted Earnings Per Share | 0.51 | 0.21 | 0.59 | 142.9 | -13.6 | [Quarterly Balance Sheets](index=5&type=section&id=Quarterly%20Balance%20Sheets) As of Q2 2025, the company achieved robust quarter-over-quarter and year-over-year growth in total assets and deposits, with significant expansion in loans and leases held for investment, while the allowance for loan and lease losses decreased sequentially but increased year-over-year Key Quarterly Balance Sheet Data (Thousands of USD) | Metric | 2Q 2025 | 1Q 2025 | 2Q 2024 | 2Q 2025 vs 1Q 2025 (%) | 2Q 2025 vs 2Q 2024 (%) | | :----------------------------------------- | :--------- | :--------- | :--------- | :----------------------- | :----------------------- | | Cash and Due from Banks | 662,755 | 744,263 | 615,449 | -11.0 | 7.7 | | Loans and Leases Held for Investment | 11,014,055 | 10,693,911 | 9,172,134 | 3.0 | 20.1 | | Allowance for Loan and Lease Losses | (182,231) | (190,184) | (137,867) | 4.2 | -32.2 | | Net Loans and Leases | 10,831,824 | 10,503,727 | 9,034,267 | 3.1 | 19.9 | | Total Assets | 13,831,208 | 13,595,704 | 11,868,570 | 1.7 | 16.5 | | Non-interest-bearing Deposits | 393,393 | 386,108 | 264,013 | 1.9 | 49.0 | | Interest-bearing Deposits | 12,201,397 | 12,009,837 | 10,443,018 | 1.6 | 16.8 | | Total Deposits | 12,594,790 | 12,395,945 | 10,707,031 | 1.6 | 17.6 | | Borrowings | 107,659 | 110,247 | 117,745 | -2.3 | -8.6 | | Total Liabilities | 12,763,943 | 12,564,257 | 10,907,521 | 1.6 | 17.0 | | Total Stockholders' Equity Attributable to Live Oak Bancshares | 1,062,889 | 1,027,030 | 961,049 | 3.5 | 10.6 | | Total Liabilities and Stockholders' Equity | 13,831,208 | 13,595,704 | 11,868,570 | 1.7 | 16.5 | [Six Months Ended Statements of Income](index=6&type=section&id=Six%20Months%20Ended%20Statements%20of%20Income) For the six months ended June 30, 2025, the company reported year-over-year growth in total interest income and net interest income, but pre-tax income and net income decreased due to a substantial increase in the provision for credit losses Key Six Months Ended Statements of Income Data (Thousands of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :----------------------------- | :----------------------------- | | Total Interest Income | 437,389 | 390,868 | | Total Interest Expense | 227,636 | 209,437 | | Net Interest Income | 209,753 | 181,431 | | Provision for Credit Losses | 52,216 | 28,129 | | Net Interest Income (after provision for credit losses) | 157,537 | 153,302 | | Total Non-interest Income | 60,107 | 60,256 | | Total Non-interest Expense | 173,310 | 155,393 | | Pre-tax Income | 44,334 | 58,165 | | Net Income Attributable to Live Oak Bancshares | 33,145 | 54,549 | | Diluted Earnings Per Share | 0.72 | 1.20 | [Quarterly Selected Financial Data](index=7&type=section&id=Quarterly%20Selected%20Financial%20Data) In Q2 2025, the company saw growth in diluted EPS and book value, with improved return on assets and equity quarter-over-quarter but a year-over-year decline; net interest margin and efficiency ratio improved sequentially, while net charge-offs significantly increased quarter-over-quarter, and total nonperforming loans decreased sequentially but substantially increased year-over-year Key Quarterly Selected Financial Data | Metric | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :--------------------------------------------------------- | :--------- | :--------- | :--------- | | Diluted Net Income Per Share | $0.51 | $0.21 | $0.59 | | Dividends Declared | $0.03 | $0.03 | $0.03 | | Book Value | $23.36 | $22.62 | $21.35 | | Tangible Book Value | $23.29 | $22.55 | $21.28 | | Return on Average Assets (Annualized) | 0.68 % | 0.30 % | 0.93 % | | Return on Average Equity (Annualized) | 8.85 % | 3.78 % | 11.39 % | | Net Interest Margin | 3.28 % | 3.20 % | 3.28 % | | Efficiency Ratio | 62.12 % | 66.62 % | 61.89 % | | Non-interest Income to Total Revenue | 24.02 % | 20.28 % | 27.22 % | | Loan and Lease Production | $1,526,592 | $1,396,223 | $1,171,141 | | Allowance for Loan and Lease Losses to Loans and Leases Held for Investment | 1.70 % | 1.83 % | 1.57 % | | Net Charge-offs | $31,445 | $6,774 | $8,253 | | Net Charge-offs to Average Loans and Leases Held for Investment (Annualized) | 1.19 % | 0.27 % | 0.38 % | | Total Nonperforming Loans and Leases (Historical Cost) | $396,332 | $422,900 | $160,092 | | Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 10.67 % | 10.67 % | 11.85 % | | Tier 1 Leverage Capital (to Average Assets) | 7.90 % | 8.03 % | 8.71 % | [Quarterly Average Balances and Net Interest Margin](index=8&type=section&id=Quarterly%20Average%20Balances%20and%20Net%20Interest%20Margin) In Q2 2025, the company experienced growth in both average interest-earning assets and average interest-bearing liabilities, with net interest income increasing sequentially and net interest margin rising from 3.20% to 3.28%, indicating improved profitability Key Quarterly Average Balances and Net Interest Margin Data (Thousands of USD) | Metric | 2Q 2025 Average Balance | 2Q 2025 Interest | 2Q 2025 Average Yield/Rate | 1Q 2025 Average Balance | 1Q 2025 Interest | 1Q 2025 Average Yield/Rate | | :----------------------------------------- | :---------------------- | :--------------- | :------------------------- | :---------------------- | :--------------- | :------------------------- | | Interest-earning Bank Deposits | 727,715 | 8,123 | 4.48 % | 581,267 | 6,400 | 4.47 % | | Investment Securities | 1,408,942 | 11,648 | 3.32 % | 1,379,797 | 11,089 | 3.26 % | | Loans Held for Sale | 381,531 | 8,008 | 8.42 % | 407,953 | 8,612 | 8.56 % | | Loans and Leases Held for Investment | 10,843,303 | 196,505 | 7.27 % | 10,388,872 | 187,004 | 7.30 % | | Total Interest-earning Assets | 13,361,491 | 224,284 | 6.73 % | 12,757,889 | 213,105 | 6.77 % | | Total Interest-bearing Deposits | 12,113,282 | 113,380 | 3.75 % | 11,581,550 | 110,888 | 3.88 % | | Borrowings | 109,463 | 1,683 | 6.17 % | 111,919 | 1,685 | 6.11 % | | Total Interest-bearing Liabilities | 12,222,745 | 115,063 | 3.78 % | 11,693,469 | 112,573 | 3.90 % | | Net Interest Income | | 109,221 | 2.95 % | | 100,532 | 2.87 % | | Net Interest Margin | | | 3.28 % | | | 3.20 % | [Non-GAAP Reconciliation](index=9&type=section&id=Non-GAAP%20Reconciliation) This section provides a reconciliation of GAAP to non-GAAP financial measures, offering additional insights into company performance [GAAP to Non-GAAP Reconciliation](index=9&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) The company provides a reconciliation of GAAP to non-GAAP financial measures, including tangible stockholders' equity, tangible assets, tangible book value per share, and efficiency ratio, which management uses to assess performance and provide comparable information to investors and analysts Key GAAP to Non-GAAP Reconciliation Data (Thousands of USD) | Metric | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :----------------------------------------- | :---------- | :---------- | :---------- | | Total Stockholders' Equity | $1,067,265 | $1,031,447 | $961,049 | | Less: Goodwill | 1,797 | 1,797 | 1,797 | | Less: Other Intangible Assets | 1,491 | 1,529 | 1,644 | | Tangible Stockholders' Equity | $1,063,977 | $1,028,121 | $957,608 | | Tangible Book Value Per Share | $23.29 | $22.55 | $21.28 | | Total Assets | $13,831,208 | $13,595,704 | $11,868,570 | | Tangible Assets | $13,827,920 | $13,592,378 | $11,865,129 | | Tangible Stockholders' Equity to Tangible Assets | 7.69 % | 7.56 % | 8.07 % | | Efficiency Ratio | 62.12 % | 66.62 % | 61.89 % | | Pre-tax Net Income | $54,454 | $42,096 | $47,823 | - The company believes these non-GAAP measures provide a meaningful basis for period-to-period comparisons, assisting regulators, investors, and analysts in analyzing the company's operating performance or financial condition[16](index=16&type=chunk)

Core Viewpoint - Live Oak Bancshares, Inc. reported strong financial performance in the second quarter of 2025, with significant increases in net income and revenue, driven by loan growth and lower provision expenses [1][5]. Financial Performance - Net income attributable to Live Oak Bancshares, Inc. for Q2 2025 was $23.4 million, or $0.51 per diluted share, representing a 141.1% increase compared to Q1 2025 [4][12]. - Total revenue for Q2 2025 was $143.7 million, up 14.0% from $126.1 million in Q1 2025 [4][5]. - Noninterest expenses increased by 6.3% to $89.3 million from $84.0 million in Q1 2025 [4][12]. - Income before taxes surged to $31.2 million, a 137.6% increase from $13.1 million in Q1 2025 [4][12]. Loan and Lease Production - Loan and lease production reached a record $1.53 billion, with loans and leases originated totaling $1.53 billion, a 9.3% increase from $1.40 billion in Q1 2025 [5][6]. - Total loans and leases increased by 2.7% to $11.36 billion from $11.06 billion in Q1 2025 [4][6]. Asset and Deposit Growth - Total assets grew by 1.7% to $13.83 billion from $13.60 billion in Q1 2025 [6][12]. - Total deposits increased by 1.6% to $12.59 billion from $12.40 billion in Q1 2025 [6][12]. Interest Income and Margin - Net interest income rose by 8.6% to $109.2 million from $100.5 million in Q1 2025 [4][12]. - Net interest margin improved by eight basis points, increasing from 3.20% to 3.28% [5][12]. Provision for Credit Losses - Provision expense for credit losses decreased by $5.7 million to $23.3 million, reflecting moderating credit trends and loan growth [5][12].

Core Viewpoint - Live Oak Bancshares, Inc. will report its second quarter 2025 financial results on July 23, 2025, after U.S. financial markets close, followed by a conference call on July 24, 2025, to discuss the results and business outlook [1]. Group 1 - The financial results announcement is scheduled for July 23, 2025, after market close [1]. - A conference call to discuss the financial results will take place on July 24, 2025, at 9:00 a.m. ET [1]. - The conference call will be accessible via telephone and webcast, with a supplementary slide presentation available prior to the event [2]. Group 2 - Live Oak Bancshares, Inc. is a financial holding company and the parent company of Live Oak Bank, focusing on redefining banking through service and technology [3]. - The company aims to partner with businesses that share a similar innovative focus [3].

Core Viewpoint - Live Oak Bancshares has appointed Patrick T. McHenry to its board of directors, effective May 21, 2025, which is expected to enhance the company's leadership in serving small businesses [1][2]. Company Overview - Live Oak Bancshares, Inc. is a financial holding company and the parent company of Live Oak Bank, focusing on redefining banking through service and technology partnerships [4]. Leadership Appointment - Patrick T. McHenry brings extensive experience in financial services and public policy, having served 20 years in Congress and as the former Chairman of the House Financial Services Committee [2][3]. - McHenry's expertise includes cryptocurrency, capital formation, AI, fintech, data privacy, and corporate governance, which aligns with Live Oak's mission [2][3]. Strategic Focus - McHenry emphasizes the importance of small businesses in the U.S. economy and appreciates Live Oak Bank's innovative approach to supporting American entrepreneurs [3]. - The company aims to leverage McHenry's background to further its mission of serving small businesses, particularly in North Carolina and nationwide [3].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________ to ________. Commission file number: 001-37497 LIVE OAK BANCSHARES, INC. North Carolina 26-4596286 (State or other jurisdiction of incorporati ...

Live Oak Bank, a subsidiary of Live Oak Bancshares, Inc. (NYSE: LOB), is a digitally focused, FDIC-insured bank serving customers across the country. Live Oak brings efficiency and excellence to the banking process, without branches, by using a focused approach to technology and innovation. To learn more, visit www.liveoak.bank. About Wonderschool Wonderschool's comprehensive technology and business support platform is designed to address every aspect of the child care and early learning ecosystem. Wondersc ...

Financial Data and Key Metrics Changes - The company reported earnings per share of 21 cents, consistent with the previous quarter, driven by healthy PPNR and growth offset by elevated provisions [23][24] - Core PPNR increased by 27% year-over-year to $50 million, primarily due to rising net interest income and strong balance growth [23][24] - Net interest income reached $101 million for the first time, with a net interest margin expansion of five basis points to 3.2% [33] Business Line Data and Key Metrics Changes - Q1 2025 loan originations totaled approximately $1.4 billion, marking a 73% increase year-over-year and the largest Q1 loan production in bank history [30] - 60% of loan production came from the small business banking team, primarily through SBA 7(a) loans, reflecting a 55% year-over-year increase [31] - Commercial lending team contributed 40% of loan production, showing a 110% increase compared to the prior year [31] Market Data and Key Metrics Changes - Customer deposits grew by 8% linked quarter, continuing a historical trend of strong growth in Q1 [26] - Noninterest-bearing checking balances increased by 31% linked quarter, indicating momentum in the business checking product [27] - The company maintained a healthy loan pipeline despite economic uncertainties, with no decline in potential borrowers' appetite [26] Company Strategy and Development Direction - The company is focused on building full relationships with customers through primary checking relationships, which have quadrupled over the past year [11] - Continued emphasis on small dollar SBA loan programs and acquiring checking relationships is expected to enhance stability and provide insights into borrowers' cash flows [11][12] - The company is well-positioned to benefit from changes in SBA regulations, which may provide a competitive advantage [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic environment while acknowledging the challenges posed by inflation and rising interest rates [15][29] - The company is proactively building reserves and monitoring credit quality, with a focus on maintaining a healthy risk profile [44][45] - Management remains committed to supporting small business borrowers through the current credit cycle, emphasizing a proactive approach to credit management [86][88] Other Important Information - The company reported that over 40% of its assets are cash or government guaranteed, providing a strong capital position [16] - The company has seen a consistent demand for government-guaranteed SBA loans in the secondary market, generating significant gain on sale revenue [40] - The company is investing in technology to enhance efficiency in loan processing, particularly for small dollar loans [70][103] Q&A Session Summary Question: Thoughts on margin and NII trajectory - Management acknowledged the difficulty in providing forward-looking guidance on margin due to the current economic environment but remains focused on controlling what can be controlled [51][52] Question: Loan growth and pipeline in the current macro environment - Management expressed comfort with the quality of loan production and remains active in monitoring credit approvals [55] Question: Impact of SBA changes on existing loans and fees - Management clarified that reinstated fees do not impact existing loans and are paid by borrowers as part of the loan package [60][62] Question: Profitability of Live Oak Express with new underwriting requirements - Management believes profitability will remain stable due to ongoing technology improvements, despite longer closing times [70][72] Question: Focus areas amid economic uncertainty - Management is closely monitoring the SBA portfolio and commercial lending, with a holistic approach to managing risks [82][84]

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," ...

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.21, consistent with the previous quarter, driven by strong PPNR and growth offset by elevated provisions [13][16] - Core PPNR increased by 27% year over year to $50 million, primarily due to rising net interest income and strong balance growth [13][20] - Net interest income surpassed $100 million for the first time, reaching approximately $101 million, with a net interest margin expansion of five basis points to 3.2% [20][21] Business Line Data and Key Metrics Changes - Loan originations reached $1.4 billion, marking the largest Q1 loan production in the bank's history, with a linked quarter growth of approximately 5% [16][19] - The small business banking team contributed 60% of Q1 loan production, primarily through SBA 7 loans, reflecting a 55% year-over-year increase [19] - Commercial lending team accounted for 40% of Q1 loan production, showing a 110% increase compared to the prior year [19] Market Data and Key Metrics Changes - Customer deposits grew approximately 8% linked quarter, nearly double the growth experienced in Q1 of the previous year [16][20] - Non-interest bearing checking balances increased by 31% linked quarter, indicating strong momentum in the business checking product [16] Company Strategy and Development Direction - The company continues to focus on building full relationships with customers through primary checking relationships, with checking balances increasing to $279 million, more than four times the levels from a year ago [7][8] - The company is optimistic about the potential competitive advantage from recent SBA rule changes, which may benefit its business model compared to other industry participants [11][44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic environment, noting that while there are uncertainties, the company is well-positioned with a strong capital position and healthy reserves [10][62] - The company is actively monitoring its portfolio and has been proactive in building reserves, indicating a commitment to maintaining credit quality [62][63] Other Important Information - The company has seen a significant increase in its allowance for credit losses, with a $51 million increase over the last five quarters, reflecting a proactive approach to credit risk management [9][28] - The company is focused on innovation and long-term growth strategies, including the development of new technology platforms and initiatives like Simply Investment and embedded finance [72][75] Q&A Session Summary Question: Thoughts on margin and NII trajectory - Management acknowledged the difficulty in providing forward-looking guidance on margin due to the current economic environment but remains focused on controlling what they can [31][34] Question: Is now the right time for meaningful loan growth? - Management expressed confidence in the quality of loan production and remains comfortable with growth activity, emphasizing disciplined credit approval processes [35][36] Question: Impact of recent SBA changes on loans - Management clarified that the reinstated small dollar borrower fees do not impact existing loans and are paid by borrowers as part of the loan closing package [42][43] Question: Focus areas amid market uncertainty - Management highlighted a proactive approach to monitoring the portfolio, particularly in sectors affected by economic challenges, and expressed cautious optimism about credit quality [57][62] Question: Update on verticality and risk management - Management discussed leveraging vertical expertise to navigate uncertainties related to tariffs and government actions, emphasizing the importance of education and communication with borrowers [68][70]

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 ...