Financial Data and Key Metrics Changes - The company reported its fourth quarter earnings, with specific financial metrics and performance indicators to be detailed in the earnings release [3][4]. Business Line Data and Key Metrics Changes - Detailed performance metrics for each business line will be discussed during the call, with a focus on growth and profitability [3][4]. Market Data and Key Metrics Changes - The company will provide insights into market performance and key indicators relevant to its operations, which will be elaborated upon in the presentation [3][4]. Company Strategy and Development Direction and Industry Competition - The management will outline the company's strategic direction and competitive positioning within the industry, emphasizing growth opportunities and challenges [3][4]. Management's Comments on Operating Environment and Future Outlook - Management is expected to comment on the current operating environment and provide insights into future prospects, including potential risks and opportunities [3][4]. Other Important Information - The call will include forward-looking statements that are subject to risks and uncertainties, with a cautionary note regarding the potential for actual results to differ from expectations [4]. Q&A Session All Questions and Answers Question: What are the expectations for future growth? - Management will address inquiries regarding growth expectations and strategic initiatives during the Q&A session [3][4].

Core Insights - Live Oak Bancshares (LOB) reported revenue of $128.07 million for Q4 2024, a 7% year-over-year increase, but EPS decreased to $0.22 from $0.36 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $125.9 million by 1.72%, while the EPS fell short of the consensus estimate of $0.49 by 55.10% [1] Financial Performance Metrics - Net charge-offs to average loans and leases held for investment were reported at 1.4%, significantly higher than the estimated 0.3% [4] - Net Interest Margin remained stable at 3.2%, matching the analysts' estimate [4] - Average balance of total interest-earning assets was $12.31 billion, slightly above the estimated $12.13 billion [4] - Efficiency Ratio improved to 63.5%, better than the estimated 67.5% [4] - Total noninterest income was $30.59 million, exceeding the average estimate of $29.22 million [4] - Net Interest Income was reported at $97.47 million, also above the estimated $96.72 million [4] Stock Performance - Shares of Live Oak Bancshares have returned +4.4% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Live Oak Bancshares reported quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.49 per share, representing a significant earnings surprise of -55.10% [1] Financial Performance - The company posted revenues of $128.07 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.72%, compared to year-ago revenues of $119.68 million [2] - Over the last four quarters, Live Oak Bancshares has surpassed consensus revenue estimates three times [2] Stock Performance - Live Oak Bancshares shares have increased approximately 4.5% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $128.5 million, and for the current fiscal year, it is $2.52 on revenues of $559.6 million [7] - The estimate revisions trend for Live Oak Bancshares is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Zacks Industry Rank for Banks - Southeast is currently in the top 24% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Core Insights - Live Oak Bancshares reported weaker-than-expected earnings in Q4 2024, with diluted EPS at $0.22, significantly below analysts' expectations of $0.53 [2][6] - The bank's revenue for the quarter was $128 million, missing the consensus forecast of $131 million, despite a year-over-year increase of 7% [2][3] - Concerns about credit quality arose due to increased provisions for credit losses, which surged 273.3% to $33.58 million compared to $8.99 million in Q4 2023 [6][9] Financial Performance - Q4 2024 diluted EPS was $0.22, down 38.9% from $0.36 in Q4 2023 [3] - Revenue reached $128 million, up from $120 million in the same quarter last year [3] - Net income fell 38.7% to $9.9 million from $16.2 million in Q4 2023 [3][6] - Loan and lease origination for the quarter was $1.421 billion, a 44.8% increase from $982 million in Q4 2023 [3][7] Operational Highlights - Live Oak achieved a record annual loan production of $5.16 billion, although quarterly originations of $1.421 billion showed a 19% decline from the previous quarter [7] - Total assets increased by 14.8% year-over-year to $12.94 billion, with deposits growing by $1.49 billion [7] - Noninterest expenses decreased by 3%, indicating effective cost controls [8] Credit Quality and Provisions - The allowance for credit losses was significantly increased, with net charge-offs rising to $33.57 million from $4.43 million a year earlier [9] - Non-performing loans increased, particularly in unguaranteed segments, reflecting macroeconomic challenges [8] Strategic Focus - The bank aims to enhance its competitive edge through technological advancements and improve the loan origination process [5][10] - Management is focused on expanding small-dollar SBA loans and enhancing digital capabilities amid a challenging macroeconomic environment [10]

Financial Performance - Fourth quarter 2024 net income attributable to Live Oak Bancshares, Inc. was $9.9 million, or $0.22 per diluted share, compared to $13.0 million, or $0.28 per diluted share in Q3 2024, representing a 24% decrease[6]. - Total revenue for 2024 increased by 9% to $499.7 million, up from $457.0 million in 2023, with a notable increase in loan production of 31% to $5.16 billion[5]. - The company achieved a 38% growth in pre-provision net revenue due to revenue growth and reduced noninterest expenses[4]. - Net income attributable to Live Oak Bancshares, Inc. for Q4 2024 was $9,900,000, down 24.0% from Q3 2024 and 38.7% from Q4 2023[10]. - Basic earnings per share for Q4 2024 was $0.22, a decrease of 21.4% from Q3 2024 and 38.9% from Q4 2023[10]. - Net income for Q4 2024 was $9,900,000, a decrease of 23.1% from $13,025,000 in Q3 2024 and a decrease of 63.3% from $26,963,000 in Q2 2024[13]. - Basic earnings per share increased to $1.72 from $1.67 year-over-year[12]. Asset and Deposit Growth - Total assets grew by 14.8% to $12.94 billion, while total deposits increased by 14% to $11.76 billion[4]. - Total assets increased to $12,943,380 thousand in Q4 2024, up 2.7% from Q3 2024 and 14.8% from Q4 2023[11]. - Total deposits reached $11,760,494 thousand, a 3.2% increase from Q3 2024 and 14.5% from Q4 2023[11]. Loan Production and Credit Losses - Loan and lease production in Q4 2024 was $1.42 billion, a decrease of 19% from $1.76 billion in Q3 2024[6]. - The company reported a provision expense for credit losses of $44.9 million, an increase of 87.5%, attributed to record loan growth and macroeconomic impacts[4]. - Provision for credit losses increased significantly to $33,581,000, a 273.3% increase compared to Q4 2023[10]. - Loans and leases originated in Q4 2024 totaled $1,421,118,000, a decrease of 19.2% from $1,757,856,000 in Q3 2024[13]. - Provision for credit losses was $96,212 thousand, significantly higher than $51,323 thousand in the previous year[12]. Income and Expense Analysis - Live Oak's total noninterest expense decreased by 3% to $314.2 million in 2024, down from $322.9 million in 2023[5]. - Total noninterest income for Q4 2024 was $30,593,000, a decrease of 7.1% from Q3 2024 and an increase of 1.6% from Q4 2023[10]. - Total noninterest expense rose to $81,257,000, an increase of 4.7% from Q3 2024 and a decrease of 12.8% from Q4 2023[10]. - Net interest income after provision for credit losses decreased to $63,893,000, a 20.7% decline compared to Q4 2023[10]. - Noninterest income totaled $123,781 thousand, up 10.8% from $111,733 thousand in 2023[12]. Efficiency and Capital Ratios - The efficiency ratio for Q4 2024 was 63.45%, compared to 59.72% in Q3 2024, indicating a decline in operational efficiency[13]. - Common equity tier 1 capital ratio was 11.04% in Q4 2024, slightly down from 11.19% in Q3 2024[13]. - The efficiency ratio for the twelve months ended 2024 is 63.45%, compared to 77.88% for the twelve months ended 2023, showing significant improvement[17]. Interest Income and Margin - Total interest income for Q4 2024 was $212,568,000, an increase of 1.7% from Q3 2024 and 14.0% from Q4 2023[10]. - The net interest margin for Q4 2024 was 3.15%, a decrease from 3.33% in Q3 2024[13]. - Net interest income for Q4 2024 is $97,474,000, which is an increase from $97,000,000 in Q3 2024, showing a growth of approximately 0.49%[17]. Future Plans - The company plans to continue expanding loan and deposit products while focusing on supporting small business owners[2].

Core Viewpoint - Live Oak Bancshares, Inc. reported a strong financial performance for the fourth quarter and the full year of 2024, highlighting growth in revenue, net income, and loan production, while also addressing challenges in the macroeconomic environment [1][5][15]. Financial Performance - The net income attributable to Live Oak for Q4 2024 was $9.9 million, or $0.22 per diluted share, compared to $13.0 million in Q3 2024 [1][7]. - For the year ended December 31, 2024, the net income totaled $77.5 million, or $1.69 per diluted share, reflecting a 5% increase from $73.9 million in 2023 [1][15]. - Total revenue for 2024 was $499.7 million, a 9% increase from $457.0 million in 2023 [4][15]. Loan and Deposit Growth - Live Oak achieved record loan production of $5.16 billion in 2024, with loans and leases originated increasing by 31% year-over-year [5][6]. - Total deposits grew by $1.49 billion, resulting in total assets increasing by 14.8% to $12.94 billion [5][6]. Expense Management - Total noninterest expenses decreased by 3% to $314.2 million in 2024, down from $322.9 million in 2023 [4][15]. - The effective tax rate for 2024 was 13.2%, up from 10.8% in 2023 [4]. Key Initiatives and Challenges - The company focused on expanding loan and deposit products and maintaining close relationships with borrowers, which contributed to strong results [1]. - Increased provision expense for credit losses rose to $44.9 million, or 87.5%, due to record loan growth and macroeconomic challenges [5][15].

Group 1 - Analysts project Live Oak Bancshares (LOB) will announce quarterly earnings of $0.49 per share, a 36.1% increase year over year [1] - Revenues are expected to reach $125.9 million, reflecting a 5.2% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1][2] Group 2 - Analysts estimate 'Net Interest Margin' at 3.2%, down from 3.3% a year ago [4] - The average prediction for 'Average Balance - Total interest-earning assets' is $12.13 billion, compared to $10.69 billion a year prior [4] - The 'Efficiency Ratio' is expected to reach 67.5%, significantly improved from 77.9% a year ago [4] Group 3 - 'Total noninterest income' is projected to be $29.22 million, down from $30.11 million in the same quarter last year [5] - 'Net Interest Income' is expected to reach $96.72 million, an increase from $89.58 million reported in the same quarter last year [5] Group 4 - Live Oak Bancshares shares have increased by 3.8% in the past month, contrasting with the Zacks S&P 500 composite's decline of 0.4% [6] - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market [6]

Live Oak Bancshares (LOB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on January 22, 2025, might help the stock move higher if these key numbers are bet ...

WILMINGTON, N.C., Jan. 08, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) today announced that it will report its fourth quarter 2024 financial results after U.S. financial markets close on Wednesday, January 22, 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, January 23, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 33467. A supple ...

WILMINGTON, N.C., Dec. 04, 2024 (GLOBE NEWSWIRE) -- Live Oak Ventures, the investment arm of Live Oak Bancshares, Inc., has announced an investment in Sunbound Inc., a provider of automated financial operations solutions for the senior housing industry. Sunbound leverages best in class technology to optimize financial operations, so senior housing communities can concentrate on delivering exceptional residential care while improving their financial profile and operational efficiency. “Our team understands t ...