Live Oak(US:LOB)2026-01-21 21:19Financial Performance - Net income attributable to common shareholders for Q4 2025 was $44.1 million, or $0.95 per diluted share, with a total annual net income of $102.8 million, or $2.23 per diluted share[1][6] - Total revenue for 2025 increased by 18% to $577.8 million compared to $488.6 million in 2024[6] - Net income attributable to Live Oak Bancshares, Inc. reached $105,871 thousand for the year ended December 31, 2025, compared to $77,474 thousand in 2024, reflecting a 36.7% increase[14] - Net income attributable to common shareholders was $44,116 million, a 72.6% increase from Q3 2025 and a 345.6% increase from Q4 2024[12] - Basic earnings per share for Q4 2025 was $0.96, up 71.4% from Q3 2025 and 336.4% from Q4 2024[12] - Basic earnings per share increased to $2.25 for the year ended December 31, 2025, compared to $1.72 in 2024, representing a 30.8% increase[14] Revenue and Income Sources - Total interest income for Q4 2025 reached $239.655 million, a 3.6% increase from Q3 2025 and a 12.7% increase from Q4 2024[12] - Net interest income after provision for credit losses was $101.275 million, reflecting an 8.6% increase from Q3 2025 and a 58.5% increase from Q4 2024[12] - Noninterest income surged to $49.787 million, an 85.5% increase compared to Q3 2025 and an 80.7% increase from Q4 2024[12] - Noninterest income totaled $129,458 thousand for the year ended December 31, 2025, up 15.0% from $112,652 thousand in 2024[14] Asset and Liability Management - Total assets grew by 16.9% to $15.13 billion, while total deposits increased by 16% to $13.69 billion[4][6] - Total assets increased to $15,134,778 thousand in Q4 2025, up 3.2% from Q3 2025 and 16.9% from Q4 2024[13] - Total liabilities reached $13,880,672 thousand in Q4 2025, a 3.1% increase from Q3 2025 and 16.3% from Q4 2024[13] - Shareholders' equity attributed to Live Oak Bancshares, Inc. increased to $1,249,868 thousand in Q4 2025, a 4.3% increase from Q3 2025 and 25.1% from Q4 2024[13] Credit and Provisioning - Provision expense for credit losses remained relatively flat at $96.3 million compared to $96.2 million in 2024[4][6] - Provision for credit losses decreased to $21.845 million, a 1.8% decrease from Q3 2025 and a 34.9% decrease from Q4 2024[12] - The provision for credit losses was $96,303 thousand for the year ended December 31, 2025, slightly higher than $96,212 thousand in 2024[14] Capital and Financing - The company raised $96.3 million in capital through a preferred stock offering in Q3 2025[4] - A pre-tax gain of $24.1 million was realized from the sale of Apiture, Inc., included in equity method investments income[4] Operational Efficiency - The efficiency ratio improved to 51.56% in Q4 2025, down from 58.68% in Q3 2025, indicating better cost management[15] - Pre-provision net revenue grew by 28.9%, driven by an 18.3% increase in revenue and an 11.7% rise in noninterest expense[4] - Noninterest expense for Q4 2025 was $89,153 thousand, compared to $83,516 thousand in Q3 2025, showing an increase of 6.5%[19] Future Outlook - Live Oak plans to continue focusing on small business banking and aims for further progress in 2026 and beyond[2]