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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 ...

Core Insights - High-yield certificates of deposit (CDs) are presented as a secure option for storing money while earning interest, typically offering higher rates than traditional savings accounts [1] - A review of over 300 data points was conducted to identify the best CDs available for various terms, including 6-month, 1-year, and 18-month options [2] Summary by Category Best CD Rates Overview - The best CD rates for October 2025 include accounts offering rates of 3.9% APY and higher, emphasizing the importance of selecting accounts that align with individual savings goals [4][5] - Approximately 60 CD accounts were evaluated to determine the top options based on interest rates, minimum opening deposits, compounding frequency, and customer service access [5] 6-Month CD Options - Ally Bank offers a 6-month CD with a 3.9% APY, no monthly maintenance fees, and no minimum deposit requirement [7] - Marcus by Goldman Sachs provides a 6-month CD with a 4.25% APY, requiring a minimum deposit of $500 [11] - Synchrony Bank's 6-month CD features a 4.1% APY with no minimum balance requirement [12] 1-Year CD Options - Ally Bank's 1-year CD offers a competitive 3.85% APY with no minimum deposit [30] - Marcus by Goldman Sachs provides a 1-year CD with a 4.1% APY, requiring a minimum deposit of $500 [31] - America First Credit Union's 1-year CD offers a 4.15% APY with a minimum deposit of $500 [38] 18-Month CD Options - Ally Bank's 18-month CD boasts a 3.65% APY with no minimum opening deposit [55] - Synchrony Bank's 18-month CD offers a competitive 4% APY with no minimum deposit [57] - America First Credit Union's 18-month CD provides a 4.1% APY with a minimum deposit of $500 [64]

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].

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]