Live Oak(US:LOB)2025-11-17 22:04Financial Performance - For the three months ended September 30, 2025, the Company reported net income attributable to common shareholders of $25.6 million, or $0.55 per diluted share, compared to $13.0 million, or $0.28 per diluted share for the same period in 2024[146]. - For the nine months ended September 30, 2025, net income attributable to common shareholders was $58.7 million, or $1.28 per diluted share, down from $67.6 million, or $1.48 per diluted share for the same period in 2024[148]. - The Company’s net income tax expense increased by $13.0 million, from $8.4 million in the first nine months of 2024 to $21.4 million for the same period in 2025[151]. Interest Income and Assets - Net interest income for the three months ended September 30, 2025, increased by $18.5 million, or 19.1%, to $115.5 million compared to $97.0 million for the same period in 2024[153]. - Average interest-earning assets increased by $2.19 billion, or 19.0%, to $13.77 billion for the third quarter of 2025, compared to $11.57 billion for the third quarter of 2024[153]. - For the nine months ended September 30, 2025, net interest income increased by $46.8 million, or 16.8%, to $325.2 million compared to $278.4 million for the same period in 2024[155]. - Total interest-earning assets for the three months ended September 30, 2025, were $13.77 billion, generating interest income of $231.43 million[159]. - The yield on average interest-earning assets decreased by 51 basis points to 6.67% for the third quarter of 2025[153]. - The yield on average interest-earning assets decreased by 42 basis points to 6.72% for the nine months ended September 30, 2025[155]. Credit Losses and Provisions - The provision for credit losses decreased by $12.3 million, or 35.5%, to $22.2 million for the third quarter of 2025, compared to $34.5 million for the same period in 2024[149]. - For the nine months ended September 30, 2025, the provision for credit losses increased to $74.5 million, up $11.8 million from $62.6 million in the same period of 2024, driven by loan growth and charge-off impacts[167]. - The allowance for credit losses on loans and leases increased by $18.2 million, or 10.9%, to $185.7 million at September 30, 2025[213]. Noninterest Income and Expenses - Noninterest expense increased by $27.6 million, or 11.9%, primarily due to increased salaries and employee benefits of $11.9 million and technology expenses of $4.8 million[150]. - Total noninterest income for Q3 2025 decreased by $2.3 million, or 7.0%, to $30.6 million compared to $32.9 million in Q3 2024[173]. - For the nine months ended September 30, 2025, total noninterest income decreased by $2.5 million, or 2.6%, to $90.7 million compared to $93.2 million in the same period in 2024[175]. Loans and Leases - Loans and leases held for investment at historical cost reached $11.27 billion as of September 30, 2025, an increase of $1.79 billion, or 18.8%, compared to September 30, 2024[168]. - Net charge-offs for Q3 2025 were $16.8 million, or 0.61% of average quarterly loans, compared to $1.7 million, or 0.08%, in Q3 2024, marking an increase of 883.4%[169]. - Total loans and leases 90 or more days past due increased by $46.0 million, or 18.0%, compared to December 31, 2024[215]. Assets and Equity - Total assets at September 30, 2025, were $14.67 billion, an increase of $1.72 billion, or 13.3%, compared to $12.94 billion at December 31, 2024[192]. - Total deposits at September 30, 2025, were $13.29 billion, an increase of $1.53 billion, or 13.0%, from $11.76 billion at December 31, 2024[192]. - Total shareholders' equity at September 30, 2025, was $1.20 billion, an increase of $199.1 million, or 19.8%, from $1.00 billion at December 31, 2024[193]. Regulatory Capital Ratios - The Company's Common Equity Tier 1 Capital ratio as of September 30, 2025, was 10.51%, significantly above the minimum requirement of 4.50%[227]. - Total Capital to Risk-Weighted Assets ratio was 12.67% as of September 30, 2025, exceeding the minimum requirement of 8.00%[227]. Accounting Policies and Estimates - The Company’s critical accounting policy involves the allowance for credit losses, which requires subjective judgments about uncertain matters[229]. - Changes in the allowance for credit losses could materially impact the Company's financial position and results of operations[229]. - Understanding the accounting policies is essential for reviewing the Company's financial statements[229].