Live Oak(LOB) - 2024 Q4 - Annual Results

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].