Live Oak Bancshares, Inc. Closes Depositary Share Offering

Rhea-AI Summary

Live Oak Bancshares (LOB) closed its previously announced underwritten offering of 4,000,000 depositary shares representing interests in Series B preferred stock. Net proceeds were approximately $96,250,000 after estimated expenses and underwriting discounts and commissions. Each depositary share represents a 1/40th interest in 8.750% fixed-rate, non-cumulative perpetual preferred stock and carries a $25 liquidation preference.

1 point · 0 major

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0 major · 1 point

How the balance works

Positive

• Moderate pointApproximately $96,250,000 in net proceeds received after estimated expenses and underwriting discounts and commissions. 6% of market cap

Negative

• Moderate point4,000,000 depositary shares issued, each representing 1/40th of an 8.750% Series B preferred share with $25 liquidation preference.

Key Figures

Depositary shares: 4,000,000 shares Dividend rate: 8.750% Liquidation preference: $25 per depositary share +1 more

Depositary shares

4,000,000 shares

Series B preferred offering

Dividend rate

8.750%

Series B Fixed Rate Non-Cumulative Perpetual Preferred Stock

Liquidation preference

$25 per depositary share

Series B preferred offering

Net proceeds

approximately $96,250,000

After estimated expenses and underwriting discounts and commissions

Previous Offering Reports

2 past events · Latest: Nov 04

Same Type 2 events

1. Nov 04

   Offering pricing

   24h Move

   -3.6%

   Priced Series B depositary shares with a $25 liquidation preference and 8.750% dividend rate.

2. Aug 04

   Offering closing

   24h Move

   +0.8%

   Completed a Series A depositary-share offering, generating approximately $96.15 million in net proceeds.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

depositary shares, liquidation preference, non-cumulative, shelf registration statement

4 terms

depositary shares financial

"offering of 4,000,000 depositary shares"

Depositary shares are tradable certificates that represent a fractional piece of a larger security held by a third-party bank, like owning a slice of a single big pie instead of the whole pie. They let companies issue and investors buy smaller, more affordable portions of preferred stock or other instruments; holders usually receive proportional dividends and market pricing similar to ordinary shares, but may have limited voting rights and different liquidity or tax implications, which can affect income and resale value.

liquidation preference financial

"with a liquidation preference of $25 per depositary share"

A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.

non-cumulative financial

"8.750% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock"

Non-cumulative describes a type of dividend or payment right where any missed distributions are not tracked or owed later; if a company skips a payment, investors do not receive that skipped amount in the future. Think of it like a one-time coupon that expires if not used: it can boost potential income when paid, but offers no catch-up protection, so investors face greater income uncertainty and should price in higher risk or lower yield expectations.

shelf registration statement regulatory

"A shelf registration statement, including a prospectus"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WILMINGTON, N.C., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or the “Company”) announced the closing of its previously announced underwritten offering of 4,000,000 depositary shares, each representing a 1/40th interest in a share of its 8.750% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock (the “Series B Preferred Stock”), with a liquidation preference of $25 per depositary share. As a result of the public offering, Live Oak received proceeds of approximately $96,250,000, net of estimated expenses and underwriting discounts and commissions.

Morgan Stanley & Co. LLC; Keefe, Bruyette & Woods, A Stifel Company; RBC Capital Markets, LLC; and UBS Investment Bank served as joint bookrunning managers for the offering.

A shelf registration statement, including a prospectus, with respect to the offering was previously filed by Live Oak with the Securities and Exchange Commission (the “SEC”) on March 6, 2026. A prospectus supplement relating to the offering has been filed with the SEC. The offering has been made by means of a prospectus supplement and accompanying prospectus. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, the Company, any underwriter, or any dealer participating in the offering will arrange to send you the prospectus supplement if you request it by calling Morgan Stanley & Co. LLC toll-free at 1-866-718-1649, Keefe, Bruyette & Woods, A Stifel Company at 1-800-966-1559, RBC Capital Markets, LLC at 1-866-375-6829, or UBS Investment Bank at 1-833-481-0269.

About Live Oak Bancshares
Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoakbank.com.

Contacts:
Walter J. Phifer | CFO | Investor Relations | 910.202.6926
Claire Parker | Corporate Communications | Media Relations | 910.597.1592

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Live Oak Bancshares raise from its depositary share offering?

Live Oak Bancshares received approximately $96,250,000 in net proceeds after estimated expenses and underwriting discounts and commissions.

What are the terms of Live Oak Bancshares' depositary shares?

Each depositary share represents a 1/40th interest in a share of 8.750% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock and has a $25 liquidation preference. The completed offering comprised 4,000,000 depositary shares.