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 ...

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 ...

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]