Live Oak Bancshares, Inc. Reports First Quarter 2026 Results
Rhea-AI Summary
Live Oak Bancshares (NYSE: LOB) reported 1Q 2026 net income $27.9M or $0.60 diluted EPS. Key metrics: loan production $1.37B, total assets $15.30B (+12.5% YoY), deposits $13.84B (+11.6% YoY). Revenue was $145.5M, down 15.9% QoQ but up 18.4% YoY; provision expense was $20.1M. Management highlighted loan and deposit growth and continued focus on Live Oak Express and business checking.
Positive
- Net income $27.9M in 1Q 2026
- Loan production $1.37B in the quarter
- Total assets $15.30B (+12.5% YoY)
- Total deposits $13.84B (+11.6% YoY)
- Revenue +18.4% YoY
Negative
- Total revenue -15.9% QoQ
- Pre-provision net revenue -28.1% QoQ
- Net interest income -3.0% QoQ
- Net interest margin down 11 bps QoQ to 3.27%
- Income before taxes -35.3% QoQ
News Market Reaction – LOB
On the day this news was published, LOB gained 3.28%, reflecting a moderate positive market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $56M to the company's valuation, bringing the market cap to $1.75B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
LOB slipped 0.36% while key regional bank peers showed mixed moves (e.g., CASH -0.52%, STEL +0.21%, NWBI flat). No evidence of a synchronized sector move around this report.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 21 | Earnings results | Positive | +4.5% | 2025 results with higher net income, revenue growth and strong loan production. |
| Oct 22 | Earnings results | Positive | -3.3% | Q3 2025 earnings, asset growth and Apiture sale gain plus capital raise. |
| Jul 23 | Earnings results | Positive | +0.6% | Q2 2025 strong net income, record loan production and higher revenue. |
| Apr 23 | Earnings results | Neutral | +6.6% | Q1 2025 growth in loans, deposits and margin amid higher provisions. |
| Jan 22 | Earnings results | Positive | -14.0% | Q4 2024 and full-year growth with higher provisions tied to loan growth. |
Earnings releases have produced mixed reactions: some strong rallies, but also notable selloffs despite broadly positive fundamentals. Average move across recent earnings was -1.12%, suggesting investors do not consistently reward results.
Recent history shows a steady stream of earnings-driven growth for Live Oak. Prior results highlighted rising net income, expanding assets and strong loan production, often supported by deposit growth and improving net interest margin. However, market reactions have been uneven: some quarters with solid growth saw negative price moves, while others with similar profiles traded higher. Today’s Q1 2026 report, with higher year-over-year earnings and revenue but lower sequential results due to prior one-time gains, fits this pattern of fundamentally solid but variably rewarded earnings prints.
Historical Comparison
In the past five earnings reports, LOB’s average next-day move was -1.12%, with both rallies and selloffs on broadly positive fundamentals. Today’s Q1 2026 update continues that pattern of solid growth facing cautious trading.
Earnings releases from Q4 2024 through Q4 2025 show consistent balance-sheet expansion, record or near-record loan production, and rising net income, with Q1 2026 extending the theme via higher year-over-year revenue and earnings despite lapping prior one-time gains.
Regulatory & Risk Context
An effective Form S-3ASR shelf dated 2026-03-06 allows Live Oak to offer a broad range of securities (common, preferred, debt, warrants, units and related instruments) from time to time via future prospectus supplements. The shelf is effective through 2029-03-06 and shows 0 recorded takedowns so far, indicating capacity for potential future capital raises.
Market Pulse Summary
This announcement details Q1 2026 earnings with net income of $27.9 million and diluted EPS of $0.60, alongside strong loan production, deposit growth and modest asset expansion. Revenue and pre-provision net revenue are lower sequentially due to sizable prior-quarter gains but higher year-over-year. Provision expense for credit losses declined versus both comparison periods. Investors may watch future trends in loan growth, credit costs, and net interest margin, as well as any use of the recently filed S-3ASR shelf registration.
Key Terms
net interest margin financial
pre-provision net revenue financial
provision for credit losses financial
forward-looking statements regulatory
Small Business Administration regulatory
Section 7(a) program regulatory
internal control over financial reporting financial
AI-generated analysis. Not financial advice.
WILMINGTON, N.C., April 22, 2026 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported first quarter of 2026 net income attributable to common shareholders of
Live Oak’s performance in the quarter, compared to the fourth quarter of 2025 and first quarter of 2025, includes these notable items:
- Strong loan production of
$1.37 billion accompanied by strong deposit growth of$146.4 million in the first quarter of 2026, with total assets growing by1.1% and12.5% to$15.30 billion compared to the fourth quarter of 2025 and first quarter of 2025, respectively - Net interest income decreased
3.0% and increased18.8% compared to the fourth quarter of 2025 and first quarter of 2025, respectively. Net interest margin decreased 11 basis points during the first quarter of 2026 from3.38% for the fourth quarter of 2025 to3.27% and increased 7 basis points compared to the first quarter of 2025 - Revenue (comprised of net interest income and noninterest income) decreased
15.9% and increased18.4% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, and noninterest expense decreased4.3% and increased5.6% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, which generated a28.1% decrease and43.0% increase in pre-provision net revenue1 compared to the fourth quarter of 2025 and first quarter of 2025, respectively. The decrease in revenue and pre-provision net revenue1 compared to the fourth quarter of 2025 is largely related to a$24.1 million pre-tax gain related to the sale of Apiture, Inc. and$9.0 million gain arising from the sale of a portfolio investment in the fourth quarter of 2025 - Provision expense for credit losses of
$20.1 million for the first quarter of 2026, decreased$1.7 million and$8.9 million compared to the fourth quarter of 2025 and first quarter of 2025, respectively
“We are pleased with the momentum we’ve carried into 2026. Our first quarter results reflect the strength of our differentiated model and our commitment to serving America’s small business owners,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We delivered strong loan production, deposit growth, and stable credit performance during the quarter. We remain focused on our key initiatives, Live Oak Express and business checking, in addition to balance sheet strength and prudent capital management. We believe we are well positioned to support our customers, manage through a dynamic environment, and continue building long-term value for shareholders.”
Conference Call
Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, April 23, 2026, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 98602. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:
Live Telephone Dial-In
U.S.: 800.549.8228
International: +1 646.564.2877
Pass Code: None Required
Live Webcast Log-In
Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration
(1) See accompanying GAAP to Non-GAAP Reconciliation.
First Quarter 2026 Key Measures
| (Dollars in thousands, except per share data) | 1Q 2026 Change vs. | ||||||||||||||||||||||||
| 4Q 2025 | 1Q 2025 | ||||||||||||||||||||||||
| 1Q 2026 | 4Q 2025 | 1Q 2025 | $ | % | $ | % | |||||||||||||||||||
| Total revenue(1) | $ | 145,474 | $ | 172,907 | $ | 122,903 | $ | (27,433 | ) | (15.9) % | $ | 22,571 | 18.4 | % | |||||||||||
| Total noninterest expense | 85,293 | 89,153 | 80,807 | (3,860 | ) | (4.3 | ) | 4,486 | 5.6 | ||||||||||||||||
| Provision for credit losses | 20,100 | 21,845 | 28,964 | (1,745 | ) | (8.0 | ) | (8,864 | ) | (30.6 | ) | ||||||||||||||
| Income before taxes | 40,081 | 61,909 | 13,132 | (21,828 | ) | (35.3 | ) | 26,949 | 205.2 | ||||||||||||||||
| Effective tax rate | 25.3 | % | 25.5 | % | 26.4 | % | n/a | n/a | n/a | n/a | |||||||||||||||
| Net income attributable to common shareholders | $ | 27,946 | $ | 44,116 | $ | 9,717 | $ | (16,170 | ) | (36.7) % | $ | 18,229 | 187.6 | % | |||||||||||
| Diluted earnings per common share | 0.60 | 0.95 | 0.21 | (0.35 | ) | (36.8 | ) | 0.39 | 185.7 | ||||||||||||||||
| Loan and lease production | 1,368,311 | 1,638,113 | 1,396,223 | (269,802 | ) | (16.5 | ) | (27,912 | ) | (2.0 | ) | ||||||||||||||
| Total loans and leases | 12,593,529 | 12,393,677 | 11,061,866 | 199,852 | 1.6 | 1,531,663 | 13.8 | ||||||||||||||||||
| Total assets | 15,300,033 | 15,134,778 | 13,595,704 | 165,255 | 1.1 | 1,704,329 | 12.5 | ||||||||||||||||||
| Total deposits | 13,835,058 | 13,688,659 | 12,395,945 | 146,399 | 1.1 | 1,439,113 | 11.6 | ||||||||||||||||||
(1) Total revenue consists of net interest income and total noninterest income.
Important Note Regarding Forward-Looking Statements
Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; risks relating to the deployment and use of artificial intelligence by the Company, its customers, and counterparties; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
About Live Oak Bancshares, Inc.
Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the 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.liveoak.bank.
Contacts:
Walter J. Phifer | CFO | Investor Relations | 910.202.6926
Claire Parker | Corporate Communications | Media Relations | 910.597.1592
Live Oak Bancshares, Inc.
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended | 1Q 2026 Change vs. | ||||||||||||||||||||||||
| 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | 4Q 2025 | 1Q 2025 | |||||||||||||||||||
| Interest income | % | % | |||||||||||||||||||||||
| Loans and fees on loans | $ | 214,129 | $ | 218,852 | $ | 211,599 | $ | 204,513 | $ | 195,616 | (2.2 | ) | 9.5 | ||||||||||||
| Investment securities, taxable | 13,009 | 12,679 | 12,175 | 11,648 | 11,089 | 2.6 | 17.3 | ||||||||||||||||||
| Other interest earning assets | 6,726 | 8,124 | 7,654 | 8,123 | 6,400 | (17.2 | ) | 5.1 | |||||||||||||||||
| Total interest income | 233,864 | 239,655 | 231,428 | 224,284 | 213,105 | (2.4 | ) | 9.7 | |||||||||||||||||
| Interest expense | |||||||||||||||||||||||||
| Deposits | 112,847 | 114,879 | 114,266 | 113,380 | 110,888 | (1.8 | ) | 1.8 | |||||||||||||||||
| Borrowings | 1,617 | 1,656 | 1,677 | 1,683 | 1,685 | (2.4 | ) | (4.0 | ) | ||||||||||||||||
| Total interest expense | 114,464 | 116,535 | 115,943 | 115,063 | 112,573 | (1.8 | ) | 1.7 | |||||||||||||||||
| Net interest income | 119,400 | 123,120 | 115,485 | 109,221 | 100,532 | (3.0 | ) | 18.8 | |||||||||||||||||
| Provision for credit losses | 20,100 | 21,845 | 22,242 | 23,252 | 28,964 | (8.0 | ) | (30.6 | ) | ||||||||||||||||
| Net interest income after provision for credit losses | 99,300 | 101,275 | 93,243 | 85,969 | 71,568 | (2.0 | ) | 38.7 | |||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||
| Loan servicing revenue | 9,094 | 9,227 | 8,812 | 8,565 | 8,298 | (1.4 | ) | 9.6 | |||||||||||||||||
| Loan servicing asset revaluation | (3,487 | ) | (3,932 | ) | (4,360 | ) | (3,057 | ) | (4,728 | ) | 11.3 | 26.2 | |||||||||||||
| Net gains on sales of loans | 15,425 | 12,313 | 17,099 | 17,570 | 15,438 | 25.3 | (0.1 | ) | |||||||||||||||||
| Net (loss) gain on loans accounted for under the fair value option | (1,165 | ) | 1,518 | (350 | ) | 1,082 | (1,034 | ) | (176.7 | ) | (12.7 | ) | |||||||||||||
| Equity method investments (loss) income | (817 | ) | 23,812 | (1,470 | ) | (2,716 | ) | (2,239 | ) | (103.4 | ) | 63.5 | |||||||||||||
| Equity security investments gains, net | — | 4,691 | 18 | 1,004 | 20 | (100.0 | ) | (100.0 | ) | ||||||||||||||||
| Lease income | 2,135 | 2,196 | 2,179 | 3,103 | 2,573 | (2.8 | ) | (17.0 | ) | ||||||||||||||||
| Other noninterest income | 4,889 | (38 | ) | 4,917 | 4,904 | 4,043 | 12,965.8 | 20.9 | |||||||||||||||||
| Total noninterest income | 26,074 | 49,787 | 26,845 | 30,455 | 22,371 | (47.6 | ) | 16.6 | |||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||
| Salaries and employee benefits | 49,354 | 47,988 | 49,910 | 46,008 | 45,529 | 2.8 | 8.4 | ||||||||||||||||||
| Travel expense | 1,463 | 1,715 | 1,618 | 1,634 | 2,064 | (14.7 | ) | (29.1 | ) | ||||||||||||||||
| Professional services expense | 2,516 | 2,855 | 1,999 | 2,874 | 3,024 | (11.9 | ) | (16.8 | ) | ||||||||||||||||
| Advertising and marketing expense | 3,051 | 2,298 | 1,839 | 4,420 | 3,665 | 32.8 | (16.8 | ) | |||||||||||||||||
| Occupancy expense | 2,410 | 2,317 | 2,339 | 2,369 | 2,737 | 4.0 | (11.9 | ) | |||||||||||||||||
| Technology expense | 9,749 | 13,397 | 10,234 | 10,066 | 9,251 | (27.2 | ) | 5.4 | |||||||||||||||||
| Equipment expense | 3,693 | 3,677 | 3,320 | 3,685 | 3,745 | 0.4 | (1.4 | ) | |||||||||||||||||
| Other loan origination and maintenance expense | 5,919 | 4,917 | 4,777 | 4,190 | 4,585 | 20.4 | 29.1 | ||||||||||||||||||
| Renewable energy tax credit investment impairment | — | 129 | 336 | 270 | — | (100.0 | ) | — | |||||||||||||||||
| FDIC insurance | 4,401 | 3,933 | 3,643 | 3,545 | 3,551 | 11.9 | 23.9 | ||||||||||||||||||
| Other expense | 2,737 | 5,927 | 3,501 | 6,161 | 2,656 | (53.8 | ) | 3.0 | |||||||||||||||||
| Total noninterest expense | 85,293 | 89,153 | 83,516 | 85,222 | 80,807 | (4.3 | ) | 5.6 | |||||||||||||||||
| Income before taxes | 40,081 | 61,909 | 36,572 | 31,202 | 13,132 | (35.3 | ) | 205.2 | |||||||||||||||||
| Income tax expense | 10,134 | 15,787 | 10,106 | 7,815 | 3,464 | (35.8 | ) | 192.6 | |||||||||||||||||
| Net income | 29,947 | 46,122 | 26,466 | 23,387 | 9,668 | (35.1 | ) | 209.8 | |||||||||||||||||
| Net loss attributable to non-controlling interest | 93 | 88 | 50 | 41 | 49 | 5.7 | 89.8 | ||||||||||||||||||
| Net income attributable to Live Oak Bancshares, Inc. | 30,040 | 46,210 | 26,516 | 23,428 | 9,717 | (35.0 | ) | 209.1 | |||||||||||||||||
| Preferred stock dividends | 2,094 | 2,094 | 954 | — | — | — | 100.0 | ||||||||||||||||||
| Net income attributable to common shareholders | $ | 27,946 | $ | 44,116 | $ | 25,562 | $ | 23,428 | $ | 9,717 | (36.7 | ) | 187.6 | ||||||||||||
| Earnings per common share | |||||||||||||||||||||||||
| Basic | $ | 0.61 | $ | 0.96 | $ | 0.56 | $ | 0.51 | $ | 0.21 | (36.5 | ) | 190.5 | ||||||||||||
| Diluted | $ | 0.60 | $ | 0.95 | $ | 0.55 | $ | 0.51 | $ | 0.21 | (36.8 | ) | 185.7 | ||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||||
| Basic | 46,138,609 | 45,906,268 | 45,780,794 | 45,634,741 | 45,377,965 | ||||||||||||||||||||
| Diluted | 46,509,040 | 46,298,408 | 46,216,958 | 45,795,608 | 45,754,499 | ||||||||||||||||||||
Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)
| As of the quarter ended | 1Q 2026 Change vs. | ||||||||||||||||||||||||
| 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | 4Q 2025 | 1Q 2025 | |||||||||||||||||||
| Assets | % | % | |||||||||||||||||||||||
| Cash and due from banks | $ | 816,135 | $ | 864,904 | $ | 892,445 | $ | 662,755 | $ | 744,263 | (5.6 | ) | 9.7 | ||||||||||||
| Certificates of deposit with other banks | 250 | 250 | 250 | 250 | 250 | — | — | ||||||||||||||||||
| Investment securities available-for-sale | 1,434,538 | 1,427,401 | 1,373,219 | 1,325,206 | 1,312,680 | 0.5 | 9.3 | ||||||||||||||||||
| Loans held for sale | 435,313 | 420,055 | 360,693 | 350,791 | 367,955 | 3.6 | 18.3 | ||||||||||||||||||
| Loans and leases held for investment(1) | 12,158,216 | 11,973,622 | 11,554,818 | 11,014,055 | 10,693,911 | 1.5 | 13.7 | ||||||||||||||||||
| Allowance for credit losses on loans and leases | (193,279 | ) | (192,264 | ) | (185,700 | ) | (182,231 | ) | (190,184 | ) | (0.5 | ) | (1.6 | ) | |||||||||||
| Net loans and leases | 11,964,937 | 11,781,358 | 11,369,118 | 10,831,824 | 10,503,727 | 1.6 | 13.9 | ||||||||||||||||||
| Premises and equipment, net | 235,329 | 240,203 | 241,140 | 246,493 | 259,113 | (2.0 | ) | (9.2 | ) | ||||||||||||||||
| Foreclosed assets | 12,005 | 8,208 | 11,024 | 6,318 | 2,108 | 46.3 | 469.5 | ||||||||||||||||||
| Servicing assets | 64,677 | 63,155 | 62,491 | 60,359 | 56,911 | 2.4 | 13.6 | ||||||||||||||||||
| Other assets | 336,849 | 329,244 | 355,522 | 347,212 | 348,697 | 2.3 | (3.4 | ) | |||||||||||||||||
| Total assets | $ | 15,300,033 | $ | 15,134,778 | $ | 14,665,902 | $ | 13,831,208 | $ | 13,595,704 | 1.1 | 12.5 | |||||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Noninterest-bearing | $ | 510,917 | $ | 515,051 | $ | 494,019 | $ | 393,393 | $ | 386,108 | (0.8 | ) | 32.3 | ||||||||||||
| Interest-bearing | 13,324,141 | 13,173,608 | 12,796,704 | 12,201,397 | 12,009,837 | 1.1 | 10.9 | ||||||||||||||||||
| Total deposits | 13,835,058 | 13,688,659 | 13,290,723 | 12,594,790 | 12,395,945 | 1.1 | 11.6 | ||||||||||||||||||
| Borrowings | 99,746 | 102,404 | 105,045 | 107,659 | 110,247 | (2.6 | ) | (9.5 | ) | ||||||||||||||||
| Other liabilities | 83,468 | 89,609 | 67,585 | 61,494 | 58,065 | (6.9 | ) | 43.7 | |||||||||||||||||
| Total liabilities | 14,018,272 | 13,880,672 | 13,463,353 | 12,763,943 | 12,564,257 | 1.0 | 11.6 | ||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||
| Preferred stock | 96,266 | 96,266 | 96,266 | — | — | — | 100.0 | ||||||||||||||||||
| Class A common stock (voting) | 392,258 | 388,389 | 383,288 | 377,953 | 370,513 | 1.0 | 5.9 | ||||||||||||||||||
| Class B common stock (non-voting) | — | — | — | — | — | — | — | ||||||||||||||||||
| Retained earnings | 836,444 | 809,885 | 770,820 | 746,450 | 724,215 | 3.3 | 15.5 | ||||||||||||||||||
| Accumulated other comprehensive loss | (47,352 | ) | (44,672 | ) | (52,151 | ) | (61,514 | ) | (67,698 | ) | (6.0 | ) | 30.1 | ||||||||||||
| Total shareholders' equity attributed to Live Oak Bancshares, Inc. | 1,277,616 | 1,249,868 | 1,198,223 | 1,062,889 | 1,027,030 | 2.2 | 24.4 | ||||||||||||||||||
| Non-controlling interest | 4,145 | 4,238 | 4,326 | 4,376 | 4,417 | (2.2 | ) | (6.2 | ) | ||||||||||||||||
| Total shareholders' equity | 1,281,761 | 1,254,106 | 1,202,549 | 1,067,265 | 1,031,447 | 2.2 | 24.3 | ||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 15,300,033 | $ | 15,134,778 | $ | 14,665,902 | $ | 13,831,208 | $ | 13,595,704 | 1.1 | 12.5 | |||||||||||||
(1) Includes
Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)
| As of and for the three months ended | |||||||||||||||||||
| 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | |||||||||||||||
| Income Statement Data | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 27,946 | $ | 44,116 | $ | 25,562 | $ | 23,428 | $ | 9,717 | |||||||||
| Per Common Share | |||||||||||||||||||
| Net income, diluted | $ | 0.60 | $ | 0.95 | $ | 0.55 | $ | 0.51 | $ | 0.21 | |||||||||
| Dividends declared - common | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||||||||
| Book value per common share | 25.55 | 25.06 | 24.03 | 23.36 | 22.62 | ||||||||||||||
| Tangible book value per common share(1) | 25.46 | 24.97 | 23.96 | 23.29 | 22.55 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on average assets (annualized) | 0.74 | % | 1.19 | % | 0.72 | % | 0.68 | % | 0.30 | % | |||||||||
| Return on average common equity (annualized) | 9.39 | 15.25 | 9.32 | 8.85 | 3.78 | ||||||||||||||
| Net interest margin | 3.27 | 3.38 | 3.33 | 3.28 | 3.20 | ||||||||||||||
| Efficiency ratio(1) | 58.63 | 51.56 | 58.68 | 61.01 | 65.75 | ||||||||||||||
| Noninterest income to total revenue | 17.92 | 28.79 | 18.86 | 21.80 | 18.20 | ||||||||||||||
| Selected Loan Metrics | |||||||||||||||||||
| Loans and leases originated | $ | 1,368,311 | $ | 1,638,113 | $ | 1,648,711 | $ | 1,526,592 | $ | 1,396,223 | |||||||||
| Outstanding balance of sold loans serviced | 5,943,787 | 5,599,724 | 5,563,363 | 5,321,284 | 4,949,962 | ||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||
| Allowance for credit losses to loans and leases held for investment(3) | 1.62 | % | 1.64 | % | 1.65 | % | 1.70 | % | 1.83 | % | |||||||||
| Net charge-offs(3) | $ | 18,585 | $ | 13,739 | $ | 16,816 | $ | 31,445 | $ | 6,774 | |||||||||
| Net charge-offs to average loans and leases held for investment(2) (3) | 0.63 | % | 0.48 | % | 0.61 | % | 1.19 | % | 0.27 | % | |||||||||
| Nonperforming loans and leases at historical cost(3) | |||||||||||||||||||
| Unguaranteed | $ | 116,791 | $ | 101,371 | $ | 76,887 | $ | 59,555 | $ | 99,907 | |||||||||
| Guaranteed | 327,409 | 399,786 | 379,381 | 336,777 | 322,993 | ||||||||||||||
| Total | 444,200 | 501,157 | 456,268 | 396,332 | 422,900 | ||||||||||||||
| Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment(3) | 0.98 | % | 0.87 | % | 0.68 | % | 0.56 | % | 0.96 | % | |||||||||
| Nonperforming loans at fair value(4) | |||||||||||||||||||
| Unguaranteed | $ | 6,884 | $ | 7,715 | $ | 6,775 | $ | 8,873 | $ | 9,938 | |||||||||
| Guaranteed | 54,679 | 53,887 | 54,887 | 60,453 | 58,100 | ||||||||||||||
| Total | 61,563 | 61,602 | 61,662 | 69,326 | 68,038 | ||||||||||||||
| Unguaranteed nonperforming fair value loans to fair value loans held for investment(4) | 2.81 | % | 2.96 | % | 2.42 | % | 2.92 | % | 3.14 | % | |||||||||
| Capital Ratios | |||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 10.63 | % | 10.53 | % | 10.51 | % | 10.67 | % | 10.67 | % | |||||||||
| Tier 1 leverage capital (to average assets) | 8.47 | 8.48 | 8.57 | 7.90 | 8.03 | ||||||||||||||
Notes to Quarterly Selected Financial Data
(1) See accompanying GAAP to Non-GAAP Reconciliation.
(2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3) Loans and leases at historical cost only (excludes loans measured at fair value).
(4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).
Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)
| Three Months Ended March 31, 2026 | Three Months Ended December 31, 2025 | Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||
| Interest-earning balances in other banks | $ | 729,938 | $ | 6,726 | 3.74 | % | $ | 803,095 | $ | 8,124 | 4.01 | % | $ | 581,267 | $ | 6,400 | 4.47 | % | |||||||||||
| Investment securities | 1,492,023 | 13,009 | 3.54 | 1,465,824 | 12,679 | 3.43 | 1,379,797 | 11,089 | 3.26 | ||||||||||||||||||||
| Loans held for sale | 514,501 | 9,792 | 7.72 | 420,809 | 8,240 | 7.77 | 407,953 | 8,612 | 8.56 | ||||||||||||||||||||
| Loans and leases held for investment(1) | 12,081,396 | 204,337 | 6.86 | 11,777,219 | 210,612 | 7.09 | 10,388,872 | 187,004 | 7.30 | ||||||||||||||||||||
| Total interest-earning assets | 14,817,858 | 233,864 | 6.40 | 14,466,947 | 239,655 | 6.57 | 12,757,889 | 213,105 | 6.77 | ||||||||||||||||||||
| Less: Allowance for credit losses on loans and leases | (190,522 | ) | (186,252 | ) | (165,320 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 547,970 | 546,969 | 534,133 | ||||||||||||||||||||||||||
| Total assets | $ | 15,175,306 | $ | 14,827,664 | $ | 13,126,702 | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Savings | $ | 6,910,397 | $ | 55,420 | 3.25 | % | $ | 6,833,148 | $ | 57,668 | 3.35 | % | $ | 5,540,147 | $ | 51,604 | 3.78 | % | |||||||||||
| Certificates of deposit | 5,730,803 | 53,337 | 3.77 | 5,498,643 | 52,888 | 3.82 | 5,563,004 | 55,235 | 4.03 | ||||||||||||||||||||
| Other interest-bearing deposits | 579,330 | 4,090 | 2.86 | 559,101 | 4,323 | 3.07 | 478,399 | 4,049 | 3.43 | ||||||||||||||||||||
| Total deposits | 13,220,530 | 112,847 | 3.46 | 12,890,892 | 114,879 | 3.54 | 11,581,550 | 110,888 | 3.88 | ||||||||||||||||||||
| Borrowings | 103,329 | 1,617 | 6.35 | 104,219 | 1,656 | 6.30 | 111,919 | 1,685 | 6.11 | ||||||||||||||||||||
| Total interest-bearing liabilities | 13,323,859 | 114,464 | 3.48 | 12,995,111 | 116,535 | 3.56 | 11,693,469 | 112,573 | 3.90 | ||||||||||||||||||||
| Noninterest-bearing deposits | 491,301 | 492,501 | 342,482 | ||||||||||||||||||||||||||
| Noninterest-bearing liabilities | 69,596 | 82,684 | 58,739 | ||||||||||||||||||||||||||
| Shareholders' equity | 1,286,313 | 1,253,043 | 1,027,547 | ||||||||||||||||||||||||||
| Non-controlling interest | 4,237 | 4,325 | 4,465 | ||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 15,175,306 | $ | 14,827,664 | $ | 13,126,702 | |||||||||||||||||||||||
| Net interest income and interest rate spread | $ | 119,400 | 2.92 | % | $ | 123,120 | 3.01 | % | $ | 100,532 | 2.87 | % | |||||||||||||||||
| Net interest margin | 3.27 | 3.38 | 3.20 | ||||||||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 111.21 | % | 111.33 | % | 109.10 | % | |||||||||||||||||||||||
(1) Average loan and lease balances include non-accruing loans and leases.
Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)
| As of and for the three months ended | |||||||||||||||||||
| 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | |||||||||||||||
| Total shareholders’ equity | $ | 1,281,761 | $ | 1,254,106 | $ | 1,202,549 | $ | 1,067,265 | $ | 1,031,447 | |||||||||
| Less: | |||||||||||||||||||
| Preferred stock | 96,266 | 96,266 | 96,266 | — | — | ||||||||||||||
| Non-controlling interest | 4,145 | 4,238 | 4,326 | — | — | ||||||||||||||
| Total common shareholders' equity | $ | 1,181,350 | $ | 1,153,602 | $ | 1,101,957 | $ | 1,067,265 | $ | 1,031,447 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||
| Other intangible assets | 2,089 | 2,165 | 1,453 | 1,491 | 1,529 | ||||||||||||||
| Tangible common shareholders’ equity (a) | $ | 1,177,464 | $ | 1,149,640 | $ | 1,098,707 | $ | 1,063,977 | $ | 1,028,121 | |||||||||
| Shares outstanding (c) | 46,240,691 | 46,032,402 | 45,855,739 | 45,686,081 | 45,589,633 | ||||||||||||||
| Total assets | $ | 15,300,033 | $ | 15,134,778 | $ | 14,665,902 | $ | 13,831,208 | $ | 13,595,704 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||
| Other intangible assets | 2,089 | 2,165 | 1,453 | 1,491 | 1,529 | ||||||||||||||
| Tangible assets (b) | $ | 15,296,147 | $ | 15,130,816 | $ | 14,662,652 | $ | 13,827,920 | $ | 13,592,378 | |||||||||
| Tangible common shareholders’ equity to tangible assets (a/b) | 7.70 | % | 7.60 | % | 7.49 | % | 7.69 | % | 7.56 | % | |||||||||
| Tangible book value per common share (a/c) | $ | 25.46 | $ | 24.97 | $ | 23.96 | $ | 23.29 | $ | 22.55 | |||||||||
| Efficiency ratio: | |||||||||||||||||||
| Noninterest expense (d) | $ | 85,293 | $ | 89,153 | $ | 83,516 | $ | 85,222 | $ | 80,807 | |||||||||
| Net interest income | 119,400 | 123,120 | 115,485 | 109,221 | 100,532 | ||||||||||||||
| Noninterest income | 26,074 | 49,787 | 26,845 | 30,455 | 22,371 | ||||||||||||||
| Total revenue (e) | $ | 145,474 | $ | 172,907 | $ | 142,330 | $ | 139,676 | $ | 122,903 | |||||||||
| Efficiency ratio (d/e) | 58.63 | % | 51.56 | % | 58.68 | % | 61.01 | % | 65.75 | % | |||||||||
| Pre-provision net revenue (e-d) | $ | 60,181 | $ | 83,754 | $ | 58,814 | $ | 54,454 | $ | 42,096 | |||||||||
This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.
