Core Insights - Live Oak Bancshares (LOB) reported revenue of $146.1 million for Q3 2025, a year-over-year increase of 12.4% [1] - The earnings per share (EPS) for the same period was $0.55, compared to $0.28 a year ago [1] - The reported revenue was a slight miss of -0.85% against the Zacks Consensus Estimate of $147.35 million [1] - The EPS fell short of the consensus estimate of $0.58, resulting in an EPS surprise of -5.17% [1] Performance Metrics - Net charge-offs to average loans and leases held for investment were 0.6%, higher than the estimated 0.4% [4] - Net Interest Margin stood at 3.3%, matching the average estimate [4] - Average balance of total interest-earning assets was $13.77 billion, exceeding the estimated $13.41 billion [4] - Efficiency Ratio was reported at 59.7%, significantly higher than the estimated 51.3% [4] - Total noninterest income was $30.61 million, below the average estimate of $33.71 million [4] - Net Interest Income reached $115.49 million, surpassing the estimated $112.25 million [4] Stock Performance - Shares of Live Oak Bancshares have returned -3.5% over the past month, while the Zacks S&P 500 composite increased by +1.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Live Oak Bancshares (LOB) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.17%. A quarter ago, it was expected that this bank holding company would post earnings of $0.52 per share when it actually produced earnings of $0.51, delivering a surprise of -1.92%.Over the last four quarte ...

[Third Quarter 2025 Earnings Release Overview](index=1&type=section&id=Earnings%20Release%20Overview) Live Oak Bancshares reported strong Q3 2025 financial results, driven by robust loan and deposit growth, improved net interest income, and strategic capital strengthening initiatives [Third Quarter 2025 Financial Highlights](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Highlights) Live Oak Bancshares reported **$25.6 million** net income and **$0.55** diluted EPS for Q3 2025, with **16%** YoY asset growth to **$14.67 billion** and a **$24.0 million** pre-tax gain from the Apiture sale strengthening capital | Metric | 3Q 2025 | 2Q 2025 | 3Q 2024 | | :----------------------------------- | :------ | :------ | :------ | | Net income attributable to common shareholders (in millions) | $25.6 | $23.4 | $13.0 | | Diluted earnings per common share | $0.55 | $0.51 | $0.28 | | Total assets (in billions) | $14.67 | $13.83 | $12.61 | | Loan and lease production (in billions) | $1.65 | $1.53 | $1.76 | | Total deposits (in billions) | $13.29 | $12.59 | $11.40 | - Subsequent to September 30, 2025, the Company completed its sale of Apiture, Inc., resulting in a pre-tax gain of approximately **$24.0 million**[1](index=1&type=chunk) - Net interest income increased **5.7%** compared to Q2 2025 and **19.1%** compared to Q3 2024[5](index=5&type=chunk) - Net interest margin increased **five basis points** during Q3 2025 from **3.28%** to **3.33%**, remaining flat compared to Q3 2024[5](index=5&type=chunk) - **$96.3 million** in capital was raised from a preferred stock offering in Q3 2025[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong core banking operations, leading SBA 7(a) lender status, and strategic capital strengthening through a preferred stock offering and the Apiture sale for continued growth - Live Oak's third quarter results reflect the strength of core banking operations and continued commitment to serving small businesses[2](index=2&type=chunk) - The company was named the SBA's **leading 7(a) lender** by dollar amount[2](index=2&type=chunk) - Strategic moves, including a successful preferred stock offering and the Apiture sale, strengthened the capital position for continued growth and resilience[2](index=2&type=chunk) [Corporate Information](index=1&type=section&id=Corporate%20Information) This section provides details on the upcoming conference call, forward-looking statements disclaimer, company overview, and contact information for investor and media relations [Conference Call Details](index=1&type=section&id=Conference%20Call%20Details) A conference call to discuss Q3 2025 financial results and business outlook is scheduled for October 23, 2025, at 9:00 a.m. ET, with telephone and webcast access available - A conference call to discuss financial results and business outlook is scheduled for **October 23, 2025, at 9:00 a.m. ET**[3](index=3&type=chunk) - Access is available via telephone (U.S.: **800.549.8228**, International: **+1 646.564.2877**) and webcast (**investor.liveoakbank.com**) using Conference ID: **72227**[3](index=3&type=chunk)[4](index=4&type=chunk) - A supplementary slide presentation will be posted, and a replay will be available for **12 months**[3](index=3&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This disclaimer highlights that forward-looking statements are subject to risks, including SBA rule changes, industry developments, technological risks, competition, and economic conditions, with no obligation to update - Forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties[7](index=7&type=chunk) - Factors causing material differences include changes in SBA rules, banking industry developments, technological risks, competition, and market and economic conditions[7](index=7&type=chunk) - The Company specifically disclaims any obligation to update any forward-looking statements[7](index=7&type=chunk) [About Live Oak Bancshares, Inc.](index=3&type=section&id=About%20Live%20Oak%20Bancshares%2C%20Inc.) Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and parent of Live Oak Bank, focused on redefining banking through service and technology partnerships - Live Oak Bancshares, Inc. (**NYSE: LOB**) is a financial holding company and the parent company of Live Oak Bank[8](index=8&type=chunk) - The company partners with businesses focused on service and technology to redefine banking[8](index=8&type=chunk) [Contacts](index=3&type=section&id=Contacts) Contact information is provided for investor relations (Walter J. Phifer, CFO) and media relations (Claire Parker, Corporate Communications) - Investor Relations: **Walter J. Phifer, CFO**, **910.202.6926**[9](index=9&type=chunk) - Media Relations: **Claire Parker, Corporate Communications**, **910.597.1592**[9](index=9&type=chunk) [Financial Statements and Key Metrics](index=4&type=section&id=Financial%20Statements%20and%20Key%20Metrics) This section presents detailed quarterly and year-to-date income statements, balance sheets, selected financial data, average balances, net interest margin, and GAAP to non-GAAP reconciliations [Quarterly Statements of Income (Unaudited)](index=4&type=section&id=Quarterly%20Statements%20of%20Income) Q3 2025 quarterly income statements show **net interest income** growth of **5.7% QoQ** and **19.1% YoY**, with **net income attributable to common shareholders** increasing **9.1% QoQ** | Metric (Dollars in thousands) | 3Q 2025 | 2Q 2025 | 3Q 2024 | 3Q 2025 Change vs. 2Q 2025 (%) | 3Q 2025 Change vs. 3Q 2024 (%) | | :---------------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | Total interest income | 231,428 | 224,284 | 208,936 | 3.2 | 10.8 | | Total interest expense | 115,943 | 115,063 | 111,936 | 0.8 | 3.6 | | Net interest income | 115,485 | 109,221 | 97,000 | 5.7 | 19.1 | | Provision for credit losses | 22,242 | 23,252 | 34,502 | (4.3) | (35.5) | | Total noninterest income | 30,614 | 34,526 | 32,932 | (11.3) | (7.0) | | Total noninterest expense | 87,285 | 89,293 | 77,589 | (2.2) | 12.5 | | Income before taxes | 36,572 | 31,202 | 17,841 | 17.2 | 105.0 | | Net income attributable to common shareholders | 25,562 | 23,428 | 13,025 | 9.1 | 96.3 | | Diluted EPS | 0.55 | 0.51 | 0.28 | 7.8 | 96.4 | [Quarterly Balance Sheets (Unaudited)](index=5&type=section&id=Quarterly%20Balance%20Sheets) Q3 2025 balance sheets show **total assets** growing **6.0% QoQ** to **$14.67 billion**, with **loans and leases** up **4.9% QoQ** and **total deposits** increasing **5.5% QoQ**, notably **noninterest-bearing deposits** up **25.6% QoQ** | Metric (Dollars in thousands) | 3Q 2025 | 2Q 2025 | 3Q 2024 | 3Q 2025 Change vs. 2Q 2025 (%) | 3Q 2025 Change vs. 3Q 2024 (%) | | :---------------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | Total assets | 14,665,902 | 13,831,208 | 12,607,346 | 6.0 | 16.3 | | Loans and leases held for investment | 11,554,818 | 11,014,055 | 9,831,891 | 4.9 | 17.5 | | Net loans and leases | 11,369,118 | 10,831,824 | 9,663,154 | 5.0 | 17.7 | | Total deposits | 13,290,723 | 12,594,790 | 11,400,547 | 5.5 | 16.6 | | Noninterest-bearing deposits | 494,019 | 393,393 | 258,844 | 25.6 | 90.9 | | Interest-bearing deposits | 12,796,704 | 12,201,397 | 11,141,703 | 4.9 | 14.9 | | Total shareholders' equity | 1,202,549 | 1,067,265 | 1,007,756 | 12.7 | 19.3 | | Preferred stock | 96,266 | — | — | — | — | [Statements of Income (Unaudited) - Nine Months Ended September 30](index=6&type=section&id=Statements%20of%20Income%20(Nine%20Months%20Ended)) For the nine months ended September 30, 2025, **net interest income** increased **16.8%**, while **net income attributable to common shareholders** decreased **13.1%** due to higher credit loss provisions and increased noninterest expenses | Metric (Dollars in thousands) | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | Change (%) | | :---------------------------- | :-------------------------- | :-------------------------- | :--------- | | Total interest income | 668,817 | 599,804 | 11.5 | | Total interest expense | 343,579 | 321,373 | 6.9 | | Net interest income | 325,238 | 278,431 | 16.8 | | Provision for credit losses | 74,458 | 62,631 | 18.9 | | Total noninterest income | 90,721 | 93,188 | (2.6) | | Total noninterest expense | 260,595 | 232,982 | 11.8 | | Income before taxes | 80,906 | 76,006 | 6.4 | | Net income attributable to common shareholders | 58,707 | 67,574 | (13.1) | | Diluted EPS | 1.28 | 1.48 | (13.6) | [Quarterly Selected Financial Data](index=8&type=section&id=Quarterly%20Selected%20Financial%20Data) Q3 2025 key financial data shows improved profitability with **Return on Average Assets** at **0.72%** and **Return on Average Common Equity** at **9.32%**, an **efficiency ratio** of **59.74%**, and increased **unguaranteed nonperforming historical cost loans** | Metric | 3Q 2025 | 2Q 2025 | 3Q 2024 | | :------------------------------------------ | :------ | :------ | :------ | | Diluted net income per common share | $0.55 | $0.51 | $0.28 | | Dividends declared - common | $0.03 | $0.03 | $0.03 | | Book value per common share | $24.03 | $23.36 | $22.32 | | Return on average assets (annualized) | 0.72 % | 0.68 % | 0.43 % | | Return on average common equity (annualized)| 9.32 % | 8.85 % | 5.21 % | | Net interest margin | 3.33 % | 3.28 % | 3.33 % | | Efficiency ratio | 59.74 % | 62.12 % | 59.72 % | | Loans and leases originated (in thousands) | $1,648,711 | $1,526,592 | $1,757,856 | | Allowance for credit losses to loans and leases held for investment | 1.65 % | 1.70 % | 1.78 % | | Net charge-offs (in thousands) | $16,816 | $31,445 | $1,710 | | Unguaranteed nonperforming historical cost loans and leases (in thousands) | $76,887 | $59,555 | $49,398 | | Common equity tier 1 capital | 10.51 % | 10.67 % | 11.19 % | | Tier 1 leverage capital | 8.57 % | 7.90 % | 8.60 % | [Quarterly Average Balances and Net Interest Margin (Unaudited)](index=9&type=section&id=Quarterly%20Average%20Balances%20and%20Net%20Interest%20Margin) Q3 2025 average balances show **interest-earning assets** at **$13.77 billion** and **net interest margin** improving to **3.33%** from **3.28%** QoQ, with an **interest rate spread** of **2.99%** | Metric (Dollars in thousands) | 3Q 2025 Average Balance | 3Q 2025 Interest | 3Q 2025 Average Yield/Rate | 2Q 2025 Average Balance | 2Q 2025 Interest | 2Q 2025 Average Yield/Rate | | :---------------------------- | :---------------------- | :--------------- | :------------------------- | :---------------------- | :--------------- | :------------------------- | | Total interest-earning assets | 13,765,187 | 231,428 | 6.67 % | 13,361,491 | 224,284 | 6.73 % | | Total deposits | 12,379,653 | 114,266 | 3.66 % | 12,113,282 | 113,380 | 3.75 % | | Total interest-bearing liabilities | 12,486,397 | 115,943 | 3.68 % | 12,222,745 | 115,063 | 3.78 % | | Net interest income | | 115,485 | | | 109,221 | | | Net interest margin | | | 3.33 % | | | 3.28 % | | Interest rate spread | | | 2.99 % | | | 2.95 % | [GAAP to Non-GAAP Reconciliation](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section reconciles GAAP to non-GAAP financial measures, including **tangible common shareholders' equity**, **tangible assets**, **tangible book value per common share**, and the **efficiency ratio**, used for performance assessment and comparability | Metric | 3Q 2025 | 2Q 2025 | 3Q 2024 | | :------------------------------------------ | :------ | :------ | :------ | | Total common shareholders' equity (in thousands) | $1,101,957 | $1,067,265 | $1,007,756 | | Tangible common shareholders' equity (a) (in thousands) | $1,098,707 | $1,063,977 | $1,004,353 | | Tangible assets (b) (in thousands) | $14,662,652 | $13,827,920 | $12,603,943 | | Tangible common shareholders' equity to tangible assets (a/b) | 7.49 % | 7.69 % | 7.97 % | | Tangible book value per common share (a/c) | $23.96 | $23.29 | $22.24 | | Efficiency ratio | 59.74 % | 62.12 % | 59.72 % | | Pre-provision net revenue (in thousands) | $58,814 | $54,454 | $52,343 | - Non-GAAP financial measures are used by management to assess performance and provide a meaningful base for period-to-period comparisons for regulators, investors, and analysts, acknowledging their inherent limitations[18](index=18&type=chunk)

Core Insights - Live Oak Bancshares reported a net income of $25.6 million for Q3 2025, translating to $0.55 per diluted share, reflecting a 9.1% increase from Q2 2025 and a significant rise from $13.0 million in Q3 2024 [1][7][12] - The company achieved strong loan production of $1.65 billion and significant deposit growth of $695.9 million, with total assets reaching $14.67 billion, marking a 16% year-over-year increase [2][6][13] - A pre-tax gain of approximately $24 million was realized from the sale of Apiture, Inc., which was completed after September 30, 2025 [1][2] Financial Performance - Total revenue for Q3 2025 was $146.1 million, up 1.6% from Q2 2025 and 12.4% from Q3 2024 [6][7] - Net interest income increased by 5.7% from Q2 2025 and 19.1% from Q3 2024, with a net interest margin rising from 3.28% to 3.33% [6][7] - Noninterest expense decreased by 2.2% compared to Q2 2025 but increased by 12.5% compared to Q3 2024, leading to an 8.0% increase in pre-provision net revenue from Q2 2025 [6][7] Capital and Growth Strategy - The company raised $96.3 million through a preferred stock offering in August 2025, strengthening its capital position [2][6] - Live Oak was recognized as the leading SBA 7(a) lender by dollar amount, underscoring its commitment to serving small businesses [2][6] - The strategic sale of Apiture and capital raising efforts are positioned to support continued growth and resilience as the company approaches the end of 2025 [2][6]

Core Insights - Lending under the Small Business Administration's 7(a) program increased by 20% in the last fiscal year, reaching a record $37.3 billion, surpassing the previous high of $36.5 billion in fiscal 2021 [1][10] - Live Oak Bancshares emerged as the largest gainer, increasing its loan volume by 43% to $2.85 billion during fiscal 2025 [2][3] - U.S. Bancorp also reported strong growth, with a 23% increase in loan volume to $871.2 million, driven by high demand and business acquisition activity [5][10] Company Performance - Live Oak Bancshares attributed its success to higher volumes of business-acquisition loans and real estate-based loans, alongside a resilient small business sector [3][4] - U.S. Bancorp's head of SBA lending noted continued momentum in small business loan demand, with no signs of slowdown [6][10] - Huntington Bancorp and M&T Bank also reported significant increases in 7(a) lending, with growth rates of 21% and over 40%, respectively [9][10] Loan Size Trends - The average size of 7(a) loans rose to $477,600 from $443,100 in fiscal 2024, indicating a trend towards larger loans [11] - Live Oak's average loan size exceeded $1.25 million, while it also focused on increasing small-dollar loans, which now constitute a significant portion of its production volume [12][13] - Small-dollar loan volume increased from approximately $50 million to $300-350 million annually, reflecting efforts to streamline the lending process [13]

Core Viewpoint - Live Oak Bancshares, Inc. will report its third quarter 2025 financial results on October 22, 2025, after U.S. financial markets close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call on October 23, 2025, at 9:00 a.m. ET [1] - A supplementary slide presentation will be available on the company's website prior to the conference call [2] Group 2: Conference Call Details - The conference call can be accessed via telephone and webcast using Conference ID: 72227 [2] - U.S. dial-in number is 800.549.8228, and the international dial-in number is +646.564.2877 [2] - A replay of the conference call will be available for 12 months following the event [2] Group 3: Company Overview - Live Oak Bancshares, Inc. is a financial holding company and the parent company of Live Oak Bank [2] - The company focuses on redefining banking through service and technology partnerships with businesses [2]

Core Insights - Live Oak Bank has been recognized as the most active SBA 7(a) lender by dollar amount for the fiscal year 2025, as reported by the U.S. Small Business Administration [1] - The bank approved 2,280 SBA loans under the 7(a) program, totaling over $2.8 billion in funding for small business owners across the United States [2] Company Overview - Live Oak Bancshares, Inc. is the parent company of Live Oak Bank, focusing on redefining banking through service and technology [4] - The company aims to be the preferred bank for small businesses by providing exceptional customer service and leveraging its expertise in SBA lending [3]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings [1] - The trend of investing in blue-chip companies has evolved, with a broader portfolio now including various industries and market capitalizations [1] Investment Strategies - The focus on banking, telecommunications, and retail sectors in the Philippines indicates a strategic approach to capitalizing on stable industries [1] - The entry into the US market has been marked by a gradual learning process, utilizing resources like Seeking Alpha for informed decision-making [1] - The diversification of investments across different sectors, including banks, hotels, and logistics in both ASEAN and US markets, reflects a comprehensive investment strategy [1]

Core Insights - Live Oak Ventures has invested in Cascading AI, Inc. (Casca), a platform that automates loan applications using responsible AI [1][2] - The partnership aims to enhance Live Oak Bank's loan processes and improve customer experience [1][2] - Casca plans to utilize the funding to scale operations, expand its team, and accelerate market entry [2][3] Company Overview - Live Oak Ventures is a fintech-focused investor under Live Oak Bancshares, aiming to innovate the banking industry [3] - Casca, founded in 2023 by experts from Stanford University, is designed to automate loan processes and is already utilized by leading SBA lenders [4] - Casca is backed by notable investors including Y Combinator, Canapi Ventures, and Peterson Ventures [4]

Core Insights - The article focuses on the newly listed 8.375% Depository Shares Series A from Live Oak Bancshares (NYSE: LOB) as part of a series on exchange-traded fixed-income security IPOs [1] Group 1 - Live Oak Bancshares has launched a new fixed-income security, which is the 8.375% Depository Shares Series A [1] - The article invites active investors to join a free trial and engage in discussions within a chat room of experienced traders and investors [1]