Live Oak Bancshares (LOB) came out with quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. While Live Oak Bancshares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the c ...

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Live Oak Bancshares reported a net income of $9.7 million for Q1 2025, driven by strong loan and deposit growth despite increased credit loss provisions and a challenging macroeconomic environment [Overview of Q1 2025 Performance](index=1&type=section&id=Overview%20of%20Q1%202025%20Performance) Live Oak Bancshares reported a net income of $9.7 million for Q1 2025, impacted by higher credit loss provisions despite strong loan and deposit growth amid economic uncertainty - Live Oak Bancshares reported Q1 2025 net income attributable to the company of **$9.7 million**, or **$0.21 per diluted share**[1](index=1&type=chunk) - The CEO emphasized strong growth in lending and deposits while navigating the current small business credit cycle and economic uncertainty[1](index=1&type=chunk) - Key performance factors included a **1.5% decline in revenue**, a **3.4% increase in noninterest expenses**, and a **$29.0 million provision for credit losses**, driven by loan growth and financial strain on small business borrowers from high interest rates and inflation[4](index=4&type=chunk) - The company noted positive momentum in two key initiatives: non-interest bearing deposit growth and small dollar loan production[4](index=4&type=chunk) [Key Financial Metrics](index=2&type=section&id=First%20Quarter%202025%20Key%20Measures) Total assets grew 5.0% to $13.60 billion in Q1 2025, driven by strong loan and deposit growth, while net income slightly decreased to $9.7 million Q1 2025 Key Financial Metrics vs. Prior Periods (in thousands, except per share data) | Metric | Q1 2025 | Q4 2024 | Change (QoQ) | Q1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $9,717 | $9,900 | -1.8% | $27,586 | | Diluted EPS | $0.21 | $0.22 | -4.5% | $0.60 | | Total Revenue | $126,113 | $128,067 | -1.5% | $116,208 | | Loans and Leases Originated | $1,396,223 | $1,421,118 | -1.8% | $805,129 | | Total Assets | $13,595,704 | $12,943,380 | +5.0% | $11,505,569 | | Total Deposits | $12,395,945 | $11,760,494 | +5.4% | $10,383,361 | - Net interest margin increased by **5 basis points** to **3.20%** from 3.15% in Q4 2024[4](index=4&type=chunk) [Detailed Financial Statements](index=4&type=section&id=Detailed%20Financial%20Statements) Detailed financial statements reveal Q1 2025 net interest income growth offset by increased credit loss provisions and noninterest expenses, alongside significant asset and deposit expansion [Statements of Income](index=4&type=section&id=Quarterly%20Statements%20of%20Income%20(unaudited)) Net interest income increased 3.1% to $100.5 million in Q1 2025, but a $29.0 million provision for credit losses and higher noninterest expenses led to a 65.0% YoY net income decrease Q1 2025 Income Statement Highlights (in thousands) | Item | Q1 2025 | Q4 2024 | Change (QoQ) | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $100,532 | $97,474 | +3.1% | $90,111 | +11.6% | | Provision for Credit Losses | $28,964 | $33,581 | -13.7% | $16,364 | +77.0% | | Total Noninterest Income | $25,581 | $30,593 | -16.4% | $26,097 | -2.0% | | Total Noninterest Expense | $84,017 | $81,257 | +3.4% | $77,737 | +8.1% | | Net Income | $9,668 | $9,843 | -1.8% | $27,586 | -65.0% | - Noninterest expenses increased primarily due to higher salaries and benefits (**+6.2% QoQ**) and a significant **85.2% QoQ jump** in advertising and marketing expense[10](index=10&type=chunk) - Net gains on sales of loans increased **1.6% QoQ** to **$18.6 million**, showing continued strength in this area[10](index=10&type=chunk) [Balance Sheets](index=5&type=section&id=Quarterly%20Balance%20Sheets%20(unaudited)) Total assets grew 5.0% to $13.60 billion as of March 31, 2025, driven by loan and deposit growth, with noninterest-bearing deposits increasing significantly Balance Sheet Highlights (in thousands) | Account | Q1 2025 | Q4 2024 | Change (QoQ) | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | $13,595,704 | $12,943,380 | +5.0% | $11,505,569 | +18.2% | | Net Loans and Leases | $10,503,727 | $10,065,858 | +4.4% | $8,773,520 | +19.7% | | Total Deposits | $12,395,945 | $11,760,494 | +5.4% | $10,383,361 | +19.4% | | Noninterest-bearing Deposits | $386,108 | $318,890 | +21.1% | $226,668 | +70.3% | | Total Shareholders' Equity | $1,031,447 | $1,003,496 | +2.8% | $927,718 | +11.2% | - The allowance for credit losses on loans and leases increased by **13.5% QoQ** to **$190.2 million**, reflecting the increased provision expense[11](index=11&type=chunk) [Selected Financial and Operational Data](index=6&type=section&id=Quarterly%20Selected%20Financial%20Data) Q1 2025 performance ratios showed a mixed trend with improved net interest margin but worsened efficiency and increased nonperforming loans, indicating rising asset quality stress Key Performance and Asset Quality Ratios | Ratio | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Interest Margin | 3.20% | 3.15% | 3.33% | | Efficiency Ratio (Non-GAAP) | 66.62% | 63.45% | 66.89% | | Return on Average Assets (annualized) | 0.30% | 0.31% | 0.98% | | Unguaranteed Nonperforming Loans to HFI Loans | 0.96% | 0.82% | 0.51% | | Net Charge-offs to Avg HFI Loans (annualized) | 0.27% | 1.39% | 0.15% | - Loans and leases originated in Q1 2025 were **$1.40 billion**, a slight decrease from **$1.42 billion** in Q4 2024 but a significant **73.4% increase** from **$805 million** in Q1 2024[12](index=12&type=chunk) - Total nonperforming loans at historical cost increased to **$422.9 million** from **$304.3 million** in Q4 2024 and **$148.5 million** in Q1 2024, indicating a deterioration in credit quality[12](index=12&type=chunk) [Net Interest Margin Analysis](index=7&type=section&id=Quarterly%20Average%20Balances%20and%20Net%20Interest%20Margin) Net interest margin expanded by 5 basis points to 3.20% in Q1 2025, driven by a faster decline in interest-bearing liability costs and growth in noninterest-bearing deposits Net Interest Margin Components | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Average Yield on Interest-Earning Assets | 6.77% | 6.87% | | Average Rate on Interest-Bearing Liabilities | 3.90% | 4.05% | | Net Interest Spread | 2.87% | 2.82% | | Net Interest Margin | 3.20% | 3.15% | - The average balance of noninterest-bearing deposits grew significantly to **$342.5 million** from **$281.9 million** in Q4 2024, contributing positively to the NIM by lowering the overall cost of funds[14](index=14&type=chunk) [Non-GAAP Financial Measures and Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliation) This section provides reconciliation of GAAP to non-GAAP financial measures, including tangible book value per share and efficiency ratio, for enhanced performance analysis [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) Non-GAAP measures for Q1 2025 show tangible book value per share at $22.55, an increased efficiency ratio of 66.62%, and a decline in pre-provision net revenue Non-GAAP Financial Measures | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Tangible Book Value Per Share | $22.55 | $22.05 | $20.57 | | Efficiency Ratio | 66.62% | 63.45% | 66.89% | | Pre-Provision Net Revenue | $42,096 | $46,810 | $38,471 | - Tangible shareholders' equity, a non-GAAP measure, is calculated by subtracting goodwill (**$1.8 million**) and other intangible assets (**$1.5 million**) from total shareholders' equity[16](index=16&type=chunk) - The company states that these non-GAAP measures provide a meaningful base for period-to-period comparisons and assist in analyzing operating results[16](index=16&type=chunk) [Supplementary Information](index=1&type=section&id=Supplementary%20Information) This section provides details on the upcoming conference call, important forward-looking statement disclaimers, and an overview of Live Oak Bancshares, Inc [Conference Call Information](index=1&type=section&id=Conference%20Call%20Information) A conference call to discuss Q1 2025 financial results is scheduled for April 24, 2025, at 9:00 a.m. ET, with access details provided - The conference call to discuss financial results is scheduled for **April 24, 2025, at 9:00 a.m. ET**[2](index=2&type=chunk) - Access is available via telephone (U.S.: **800.549.8228**) and webcast on the company's investor relations website[2](index=2&type=chunk)[3](index=3&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Important%20Note%20Regarding%20Forward-Looking%20Statements) This section contains a legal disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that could impact future financial performance - The press release contains forward-looking statements subject to risks and uncertainties, as defined by the Private Securities Litigation Reform Act of 1995[7](index=7&type=chunk) - Key risk factors include changes in SBA rules, adverse developments in the banking industry, technological threats, competition, and macroeconomic conditions[7](index=7&type=chunk) [About Live Oak Bancshares, Inc.](index=3&type=section&id=About%20Live%20Oak%20Bancshares%20Inc.) Live Oak Bancshares, Inc. (NYSE: LOB) is the financial holding company for Live Oak Bank, focused on business partnerships through service and technology - Live Oak Bancshares, Inc. is the parent company of Live Oak Bank and is listed on the NYSE under the ticker **LOB**[8](index=8&type=chunk)

WILMINGTON, N.C., April 23, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported first quarter of 2025 net income attributable to the Company of $9.7 million, or $0.21 per diluted share. Live Oak’s performance in the quarter compared to the fourth quarter of 2024, includes these notable items: Record first quarter production of $1.40 billion accompanied by strong deposit growth of $635.5 million, with total assets growing by 5.0% to $13.60 billionNet in ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LOB over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking ...

Live Telephone Dial-In U.S.: 800.549.8228 International: +1 646.564.2877 Pass Code: None Required Live Webcast Log-In WILMINGTON, N.C., April 09, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) today announced that it will report its first quarter 2025 financial results after U.S. financial markets close on Wednesday, April 23, 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, April 24 ...

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Employee and Workplace Environment - As of December 31, 2024, the Company had 1,008 full-time employees, 17 part-time employees, and 27 independent contractors[26] - The Company operates on a cloud-based system, allowing flexible work arrangements without affecting operations or customer experience[32] - The Company focuses on employee wellness, providing on-site health clinics, physical therapy, and wellness facilities[31] - The Company aims to foster a supportive environment through Employee Resource Groups and initiatives for underrepresented backgrounds[27] - The Company emphasizes professional development through training programs and tuition reimbursement for job-specific certifications[34] Compensation and Incentives - The Company has a compensation program that includes base salary, cash bonuses, and equity compensation to align employee interests with shareholder value[28] - The Company adopted a clawback policy for excess incentive-based compensation[108] - The Federal Reserve reviews incentive compensation arrangements of bank holding companies as part of its supervisory process[106] Regulatory Compliance and Oversight - The Company is subject to extensive regulation under the Bank Holding Company Act and must comply with NYSE listing standards[44][47] - Live Oak Bank is subject to extensive supervision and regulation by the NCCOB, which oversees compliance with state banking statutes[58] - The Company is committed to monitoring regulatory changes that may impact its operations following the recent shift in political control[46] - The Company is subject to evolving laws and regulations governing privacy and data security, which may present compliance challenges[87] - Bancshares filed an election to become a financial holding company in 2016, allowing it to engage in an expanded list of financial activities[52] Financial Performance and Growth - Increased net interest income of $30.6 million, or 8.9%[255] - Increased net gains on sales of loans of $14.4 million, or 30.8%[255] - Increased other noninterest income of $14.0 million, driven by various asset sales[255] - Total assets as of December 31, 2024, were $12.94 billion for the Company and $12.86 billion for the Bank[113] - Average interest-earning assets increased to $11.5 billion in 2024, with a net interest margin of 3.27%[257] - Noninterest income increased by $12.0 million, or 10.8%, to $123.8 million in 2024, driven by higher servicing revenue and net gains on sales of loans[268] Capital and Liquidity - Bancshares' risk-based capital ratios as of December 31, 2024, were 11.04% for common equity Tier 1 capital to risk-weighted assets, 11.04% for Tier 1 capital to risk-weighted assets, and 12.29% for total capital to risk-weighted assets[70] - Bancshares' leverage ratio at December 31, 2024, was 8.21%, down from 8.58% at December 31, 2023[71] - Live Oak Bank is classified as "well capitalized" under applicable regulations as of December 31, 2024[74] - The minimum risk-based capital ratios required are 4.5% for common equity Tier 1 capital, 6% for Tier 1 capital, and 8% for total capital[69] - The Company has $621.4 million of its investment securities portfolio pledged for unused borrowing capacity, leaving $626.8 million available to be pledged as collateral[343] Loan and Credit Quality - For 2024, the provision for credit losses was $96.2 million, an increase of $44.9 million compared to $51.3 million in 2023, primarily due to record loan growth and macroeconomic impacts[262] - Loans and leases held for investment at historical cost increased by $1.66 billion, or 20.1%, reaching $9.90 billion as of December 31, 2024, compared to the previous year[262] - Net charge-offs for loans and leases were $46.7 million, or 0.52% of average loans, representing an increase of $25.3 million, or 118.5%, from $21.4 million, or 0.28%, in 2023[263] - Total nonperforming loans and leases to total loans and leases held for investment rose to 3.07% from 1.64% year-over-year[309] - The allowance for credit losses on loans and leases was $167.5 million, compared to $125.8 million in 2023[310] Deposits and Funding - Total deposits rose by $1.49 billion, or 14.5%, to $11.76 billion, supporting the growth in the loan and lease portfolio[289] - Noninterest-bearing demand deposits rose by $59.6 million, or 23.0%, during 2024, while interest-bearing deposits increased by $1.43 billion, or 14.2%[336] - Total uninsured deposits were $1.71 billion, representing 14.5% of total deposits at December 31, 2024[336] Market and Economic Conditions - The baseline economic forecast assumes the Federal Reserve will cut the policy rate twice in 2025, with CPI rising 2.9% and GDP growth at 1.7% by Q4 2025[354] - A hypothetical adverse scenario predicts an unemployment rate of 8.2% by the end of 2025, significantly higher than the baseline projection[356] - Future monetary policies of the Federal Reserve are expected to continue impacting the Company's operating results[110]

Investment Strategy - Prefers long-term investments with a contrarian view [1] - Primarily invests in stocks and ETFs, focusing on US companies but also analyzes European and Chinese companies [1] - Emphasizes fundamental analysis over technical analysis, evaluating actual company results rather than price movements [1] Sector Focus - Banking sector is of particular interest due to its importance in understanding economic health [1] - Also interested in Macroeconomics, indicating a broader economic perspective in investment decisions [1]

©2025 Live Oak Bancshares. All rights reserved. FORWARD LOOKING STATEMENTS FOURTH QUARTER 2024 January 23, 2025 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 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].