Live Oak Bancshares, Inc. Reports Third Quarter 2025 Results

Rhea-AI Summary

Live Oak Bancshares (NYSE: LOB) reported 3Q 2025 net income attributable to common shareholders of $25.6 million, or $0.55 diluted EPS. Total assets grew to $14.67 billion (up 16.3% year-over-year) with loan production of $1.65 billion and deposit growth of $695.9 million in the quarter. Net interest income rose 19.1% year-over-year and net interest margin was 3.33%. The company raised $96.3 million of capital from a preferred stock offering and completed the sale of Apiture resulting in an approximate pre-tax gain of $24.0 million. Total revenue was $146.1 million; pre-provision net revenue increased 12.4% year-over-year.

Positive

• Net income of $25.6 million in 3Q 2025
• Diluted EPS of $0.55 in 3Q 2025
• Loan production of $1.65 billion in 3Q 2025
• Deposit growth of $695.9 million in 3Q 2025
• Raised capital of $96.3 million via preferred stock offering
• Pre-tax gain of ~$24.0 million from Apiture sale

Negative

• Total noninterest expense increased 12.5% year-over-year
• Provision for credit losses of $22.2 million in 3Q 2025

Insights

Bank financial analyst

Quarter shows operating growth, improved margins, and a meaningful capital add.

Live Oak delivered $25.6 million net income and $1.65 billion in loan production while assets rose to $14.67 billion, driven by $695.9 million deposit growth; net interest income and margin expanded to 3.33%, supporting revenue gains.

Key dependencies include credit performance and the realized $24.0 million pre-tax gain from the Apiture sale, which bolsters reported profits but is non-recurring; provision expense of $22.2 million moderated versus prior periods, so allowance and credit trends merit close tracking.

Watch near-term capital and funding signals: the $96.3 million preferred raise strengthens capital now, and the earnings call on October 23, 2025 should clarify loan mix, reserve methodology, and any lingering operational control remediation; monitor these items over the next 1–3 quarters.

Capital markets strategist

Results combine organic growth with a capital infusion and a one-time divestiture gain.

Total revenue rose modestly while noninterest expense fell sequentially, producing an 8.0% sequential increase in pre-provision net revenue; the preferred offering added $96.3 million of capital, improving loss-absorption capacity and flexibility for loan growth.

Risks include reliance on a one-time $24.0 million pre-tax gain and a provision level that, while lower, remains material at $22.2 million; investors should track recurring core earnings and provision trends rather than one-off items.

Concrete near-term items to watch: management commentary on credit quality and reserve drivers, the composition of loan production versus repayment flows, and any guidance given on capital deployment during the conference call on October 23, 2025; monitor these over the next 2–4 quarters.

WILMINGTON, N.C., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported third quarter of 2025 net income attributable to common shareholders of $25.6 million, or $0.55 per diluted common share.

Live Oak’s performance in the quarter, compared to the second quarter of 2025 and third quarter of 2024, includes these notable items:

• Strong loan production of $1.65 billion accompanied by strong deposit growth of $695.9 million in the third quarter of 2025, with total assets growing by 6.0% and 16.3% to $14.67 billion compared to the second quarter of 2025 and third quarter of 2024, respectively
• $96.3 million in capital was raised as a result of preferred stock offering in the third quarter of 2025
• Net interest income increased 5.7% and 19.1% compared to the second quarter of 2025 and third quarter of 2024, respectively; while net interest margin increased five basis points during the third quarter of 2025 from 3.28% for the second quarter of 2025 to 3.33% and remained flat compared to the third quarter of 2024
• Revenue (comprised of net interest income and noninterest income) increased 1.6% and 12.4% compared to the second quarter of 2025 and third quarter of 2024, respectively, and noninterest expense decreased 2.2% and increased 12.5% compared to the second quarter of 2025 and third quarter of 2024, respectively, which generated an 8.0% and 12.4% increase in pre-provision net revenue¹ compared to the second quarter of 2025 and third quarter of 2024, respectively
• Provision expense for credit losses of $22.2 million, a decrease of $1.0 million and $12.3 million compared to the second quarter of 2025 and third quarter of 2024, respectively
  

Subsequent to September 30, 2025, the Company completed its sale of Apiture, Inc. resulting in a pre-tax gain of approximately $24.0 million.

“Live Oak’s third quarter results reflect the strength of our core banking operations and our continued commitment to serving small businesses across the country. We delivered strong loan production, were again named the SBA’s leading 7(a) lender by dollar amount, had significant deposit growth, and drove total assets to $14.67 billion—a 16% increase year-over-year,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “In addition to our operating performance, we further strengthened our capital position with the successful preferred stock offering in August, and an approximate $24 million gain from the sale of Apiture, which closed this week. These strategic moves position Live Oak for continued growth and resilience as we enter the final stretch of 2025.”

Conference Call

Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, October 23, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 72227. 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.

Third Quarter 2025 Key Measures

(Dollars in thousands, except per share data)									Increase (Decrease)
	3Q 2025				2Q 2025				Dollars				Percent			3Q 2024
Total revenue (1)	$	146,099			$	143,747			$	2,352			1.6	%		$	129,932
Total noninterest expense		87,285				89,293				(2,008	)		(2.2	)			77,589
Income before taxes		36,572				31,202				5,370			17.2				17,841
Effective tax rate		27.6	%			25.0	%			n/a			n/a				27.0	%
Net income attributable to common shareholders	$	25,562			$	23,428			$	2,134			9.1	%		$	13,025
Diluted earnings per common share		0.55				0.51				0.04			7.8				0.28
Loan and lease production		1,648,711				1,526,592				122,119			8.0				1,757,856
Total loans and leases		11,915,511				11,364,846				550,665			4.8				10,191,868
Total assets		14,665,902				13,831,208				834,694			6.0				12,607,346
Total deposits		13,290,723				12,594,790				695,933			5.5				11,400,547

(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; 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; 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; 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																				3Q 2025 Change vs.
	3Q 2025				2Q 2025				1Q 2025				4Q 2024				3Q 2024				2Q 2025			3Q 2024
Interest income																					%			%
Loans and fees on loans	$	211,599			$	204,513			$	195,616			$	194,821			$	192,170			3.5			10.1
Investment securities, taxable		12,175				11,648				11,089				10,490				9,750			4.5			24.9
Other interest earning assets		7,654				8,123				6,400				7,257				7,016			(5.8	)		9.1
Total interest income		231,428				224,284				213,105				212,568				208,936			3.2			10.8
Interest expense
Deposits		114,266				113,380				110,888				113,357				110,174			0.8			3.7
Borrowings		1,677				1,683				1,685				1,737				1,762			(0.4	)		(4.8	)
Total interest expense		115,943				115,063				112,573				115,094				111,936			0.8			3.6
Net interest income		115,485				109,221				100,532				97,474				97,000			5.7			19.1
Provision for credit losses		22,242				23,252				28,964				33,581				34,502			(4.3	)		(35.5	)
Net interest income after provision for credit losses		93,243				85,969				71,568				63,893				62,498			8.5			49.2
Noninterest income
Loan servicing revenue		8,812				8,565				8,298				8,524				8,040			2.9			9.6
Loan servicing asset revaluation		(4,360	)			(3,057	)			(4,728	)			(2,326	)			(4,207	)		(42.6	)		(3.6	)
Net gains on sales of loans		20,868				21,641				18,648				18,356				16,646			(3.6	)		25.4
Net (loss) gain on loans accounted for under the fair value option		(350	)			1,082				(1,034	)			195				2,255			(132.3	)		(115.5	)
Equity method investments (loss) income		(1,470	)			(2,716	)			(2,239	)			(2,739	)			(1,393	)		45.9			(5.5	)
Equity security investments gains, net		18				1,004				20				12				909			(98.2	)		(98.0	)
Lease income		2,179				3,103				2,573				2,456				2,424			(29.8	)		(10.1	)
Management fee income		—				—				—				—				1,116			—			(100.0	)
Other noninterest income		4,917				4,904				4,043				6,115				7,142			0.3			(31.2	)
Total noninterest income		30,614				34,526				25,581				30,593				32,932			(11.3	)		(7.0	)
Noninterest expense
Salaries and employee benefits		52,817				49,137				48,008				45,214				44,524			7.5			18.6
Travel expense		2,480				2,576				2,795				2,628				2,344			(3.7	)		5.8
Professional services expense		1,999				2,874				3,024				2,797				3,287			(30.4	)		(39.2	)
Advertising and marketing expense		1,839				4,420				3,665				1,979				2,473			(58.4	)		(25.6	)
Occupancy expense		2,339				2,369				2,737				2,558				2,807			(1.3	)		(16.7	)
Technology expense		10,234				10,066				9,251				9,406				9,081			1.7			12.7
Equipment expense		3,320				3,685				3,745				3,769				3,472			(9.9	)		(4.4	)
Other loan origination and maintenance expense		4,777				4,190				4,585				4,812				4,872			14.0			(1.9	)
Renewable energy tax credit investment impairment		336				270				—				1,172				115			24.4			192.2
FDIC insurance		3,643				3,545				3,551				3,053				1,933			2.8			88.5
Other expense		3,501				6,161				2,656				3,869				2,681			(43.2	)		30.6
Total noninterest expense		87,285				89,293				84,017				81,257				77,589			(2.2	)		12.5
Income before taxes		36,572				31,202				13,132				13,229				17,841			17.2			105.0
Income tax expense		10,106				7,815				3,464				3,386				4,816			29.3			109.8
Net income		26,466				23,387				9,668				9,843				13,025			13.2			103.2
Net loss attributable to non-controlling interest		50				41				49				57				—			22.0			100.0
Net income attributable to Live Oak Bancshares, Inc.		26,516				23,428				9,717				9,900				13,025			13.2			103.6
Preferred stock dividends		954				—				—				—				—			100.0			100.0
Net income attributable to common shareholders	$	25,562			$	23,428			$	9,717			$	9,900			$	13,025			9.1			96.3
Earnings per common share
Basic	$	0.56			$	0.51			$	0.21			$	0.22			$	0.28			9.8			100.0
Diluted	$	0.55			$	0.51			$	0.21			$	0.22			$	0.28			7.8			96.4
Weighted average shares outstanding
Basic		45,780,794				45,634,741				45,377,965				45,224,470				45,073,482
Diluted		46,216,958				45,795,608				45,754,499				46,157,979				45,953,947

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)

	As of the quarter ended																				3Q 2025 Change vs.
	3Q 2025				2Q 2025				1Q 2025				4Q 2024				3Q 2024				2Q 2025			3Q 2024
Assets																					%			%
Cash and due from banks	$	892,445			$	662,755			$	744,263			$	608,800			$	666,585			34.7			33.9
Certificates of deposit with other banks		250				250				250				250				250			—			—
Investment securities available-for-sale		1,373,219				1,325,206				1,312,680				1,248,203				1,233,466			3.6			11.3
Loans held for sale		360,693				350,791				367,955				346,002				359,977			2.8			0.2
Loans and leases held for investment (1)		11,554,818				11,014,055				10,693,911				10,233,374				9,831,891			4.9			17.5
Allowance for credit losses on loans and leases		(185,700	)			(182,231	)			(190,184	)			(167,516	)			(168,737	)		(1.9	)		(10.1	)
Net loans and leases		11,369,118				10,831,824				10,503,727				10,065,858				9,663,154			5.0			17.7
Premises and equipment, net		241,140				246,493				259,113				264,059				267,032			(2.2	)		(9.7	)
Foreclosed assets		11,024				6,318				2,108				1,944				8,015			74.5			37.5
Servicing assets		62,491				60,359				56,911				56,144				52,553			3.5			18.9
Other assets		355,522				347,212				348,697				352,120				356,314			2.4			(0.2	)
Total assets	$	14,665,902			$	13,831,208			$	13,595,704			$	12,943,380			$	12,607,346			6.0			16.3
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing	$	494,019			$	393,393			$	386,108			$	318,890			$	258,844			25.6			90.9
Interest-bearing		12,796,704				12,201,397				12,009,837				11,441,604				11,141,703			4.9			14.9
Total deposits		13,290,723				12,594,790				12,395,945				11,760,494				11,400,547			5.5			16.6
Borrowings		105,045				107,659				110,247				112,820				115,371			(2.4	)		(9.0	)
Other liabilities		67,585				61,494				58,065				66,570				83,672			9.9			(19.2	)
Total liabilities		13,463,353				12,763,943				12,564,257				11,939,884				11,599,590			5.5			16.1
Shareholders’ equity
Preferred stock		96,266				—				—				—				—			—			—
Class A common stock (voting)		383,288				377,953				370,513				365,607				361,925			1.4			5.9
Class B common stock (non-voting)		—				—				—				—				—			—			—
Retained earnings		770,820				746,450				724,215				715,767				707,026			3.3			9.0
Accumulated other comprehensive loss		(52,151	)			(61,514	)			(67,698	)			(82,344	)			(61,195	)		15.2			14.8
Total shareholders' equity attributed to Live Oak Bancshares, Inc.		1,198,223				1,062,889				1,027,030				999,030				1,007,756			12.7			18.9
Non-controlling interest		4,326				4,376				4,417				4,466				—			(1.1	)		100.0
Total shareholders' equity		1,202,549				1,067,265				1,031,447				1,003,496				1,007,756			12.7			19.3
Total liabilities and shareholders’ equity	$	14,665,902			$	13,831,208			$	13,595,704			$	12,943,380			$	12,607,346			6.0			16.3

(1) Includes $280.3 million, $303.8 million, $316.8 million, $328.7 million and $343.4 million loans measured at fair value for the quarters ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.     

Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)

	Nine Months Ended
	September 30, 2025				September 30, 2024
Interest income
Loans and fees on loans	$	611,728			$	550,020
Investment securities, taxable		34,912				27,923
Other interest earning assets		22,177				21,861
Total interest income		668,817				599,804
Interest expense
Deposits		338,534				317,530
Borrowings		5,045				3,843
Total interest expense		343,579				321,373
Net interest income		325,238				278,431
Provision for credit losses		74,458				62,631
Net interest income after provision for credit losses		250,780				215,800
Noninterest income
Loan servicing revenue		25,675				23,011
Loan servicing asset revaluation		(12,145	)			(9,829	)
Net gains on sales of loans		61,157				42,543
Net (loss) gain on loans accounted for under the fair value option		(302	)			2,208
Equity method investments (loss) income		(6,425	)			(8,182	)
Equity security investments gain (losses), net		1,042				541
Lease income		7,855				7,300
Management fee income		—				7,658
Other noninterest income		13,864				27,938
Total noninterest income		90,721				93,188
Noninterest expense
Salaries and employee benefits		149,962				138,054
Travel expense		7,851				7,110
Professional services expense		7,897				8,226
Advertising and marketing expense		9,924				9,169
Occupancy expense		7,445				7,442
Technology expense		29,551				24,800
Equipment expense		10,750				10,057
Other loan origination and maintenance expense		13,552				12,442
Renewable energy tax credit investment impairment (recovery)		606				(642	)
FDIC insurance		10,739				7,782
Other expense		12,318				8,542
Total noninterest expense		260,595				232,982
Income before taxes		80,906				76,006
Income tax expense		21,385				8,432
Net income		59,521				67,574
Net loss attributable to non-controlling interest		140				—
Net income attributable to Live Oak Bancshares, Inc.		59,661				67,574
Preferred stock dividends		954				—
Net income attributable to common shareholders	$	58,707			$	67,574
Earnings per common share
Basic	$	1.29			$	1.50
Diluted	$	1.28			$	1.48
Weighted average shares outstanding
Basic		45,632,313				44,937,409
Diluted		45,956,835				45,707,245

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)

	As of and for the three months ended
	3Q 2025				2Q 2025				1Q 2025				4Q 2024				3Q 2024
Income Statement Data
Net income attributable to common shareholders	$	25,562			$	23,428			$	9,717			$	9,900			$	13,025
Per Common Share
Net income, diluted	$	0.55			$	0.51			$	0.21			$	0.22			$	0.28
Dividends declared - common		0.03				0.03				0.03				0.03				0.03
Book value per common share		24.03				23.36				22.62				22.12				22.32
Tangible book value per common share (1)		23.96				23.29				22.55				22.05				22.24
Performance Ratios
Return on average assets (annualized)		0.72	%			0.68	%			0.30	%			0.31	%			0.43	%
Return on average common equity (annualized)		9.32				8.85				3.78				3.85				5.21
Net interest margin		3.33				3.28				3.20				3.15				3.33
Efficiency ratio (1)		59.74				62.12				66.62				63.45				59.72
Noninterest income to total revenue		20.95				24.02				20.28				23.89				25.35
Selected Loan Metrics
Loans and leases originated	$	1,648,711			$	1,526,592			$	1,396,223			$	1,421,118			$	1,757,856
Outstanding balance of sold loans serviced		5,563,363				5,321,284				4,949,962				4,715,895				4,452,750
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)		1.65	%			1.70	%			1.83	%			1.69	%			1.78	%
Net charge-offs(3)	$	16,816			$	31,445			$	6,774			$	33,566			$	1,710
Net charge-offs to average loans and leases held for investment (2) (3)		0.61	%			1.19	%			0.27	%			1.39	%			0.08	%
Nonperforming loans and leases at historical cost (3)
Unguaranteed	$	76,887			$	59,555			$	99,907			$	81,412			$	49,398
Guaranteed		379,381				336,777				322,993				222,885				166,177
Total		456,268				396,332				422,900				304,297				215,575
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)		0.68	%			0.56	%			0.96	%			0.82	%			0.52	%
Nonperforming loans at fair value (4)
Unguaranteed	$	6,775			$	8,873			$	9,938			$	9,115			$	8,672
Guaranteed		54,887				60,453				58,100				54,873				49,822
Total		61,662				69,326				68,038				63,988				58,494
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)		2.42	%			2.92	%			3.14	%			2.77	%			2.53	%
Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		10.51	%			10.67	%			10.67	%			11.04	%			11.19	%
Tier 1 leverage capital (to average assets)		8.57				7.90				8.03				8.21				8.60

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 September 30, 2025										Three Months Ended June 30, 2025
	Average Balance				Interest			Average Yield/Rate			Average Balance				Interest			Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	701,059			$	7,654		4.33	%		$	727,715			$	8,123		4.48	%
Investment securities		1,418,810				12,175		3.40				1,408,942				11,648		3.32
Loans held for sale		396,084				8,103		8.12				381,531				8,008		8.42
Loans and leases held for investment(1)		11,249,234				203,496		7.18				10,843,303				196,505		7.27
Total interest-earning assets		13,765,187				231,428		6.67				13,361,491				224,284		6.73
Less: Allowance for credit losses on loans and leases		(182,001	)									(186,022	)
Noninterest-earning assets		530,529										539,485
Total assets	$	14,113,715									$	13,714,954
Interest-bearing liabilities:
Interest-bearing checking	$	366,699			$	4,082		4.42	%		$	350,978			$	3,969		4.54	%
Savings		6,608,380				58,657		3.52				6,241,053				56,529		3.63
Money market accounts		131,756				84		0.25				128,757				93		0.29
Certificates of deposit		5,272,818				51,443		3.87				5,392,494				52,789		3.93
Total deposits		12,379,653				114,266		3.66				12,113,282				113,380		3.75
Borrowings		106,744				1,677		6.23				109,463				1,683		6.17
Total interest-bearing liabilities		12,486,397				115,943		3.68				12,222,745				115,063		3.78
Noninterest-bearing deposits		401,916										375,503
Noninterest-bearing liabilities		63,133										53,717
Shareholders' equity		1,157,893										1,058,572
Non-controlling interest		4,376										4,417
Total liabilities and shareholders' equity	$	14,113,715									$	13,714,954
Net interest income and interest rate spread					$	115,485		2.99	%						$	109,221		2.95	%
Net interest margin								3.33										3.28
Ratio of average interest-earning assets to average interest-bearing liabilities								110.24	%									109.32	%

(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
	3Q 2025				2Q 2025				1Q 2025				4Q 2024				3Q 2024
Total shareholders’ equity	$	1,202,549			$	1,067,265			$	1,031,447			$	1,003,496			$	1,007,756
Less:
Preferred stock		96,266				—				—				—				—
Non-controlling interest		4,326				—				—				—				—
Total common shareholders' equity	$	1,101,957			$	1,067,265			$	1,031,447			$	1,003,496			$	1,007,756
Less:
Goodwill		1,797				1,797				1,797				1,797				1,797
Other intangible assets		1,453				1,491				1,529				1,568				1,606
Tangible common shareholders’ equity (a)	$	1,098,707			$	1,063,977			$	1,028,121			$	1,000,131			$	1,004,353
Shares outstanding (c)		45,855,739				45,686,081				45,589,633				45,359,425				45,151,691
Total assets	$	14,665,902			$	13,831,208			$	13,595,704			$	12,943,380			$	12,607,346
Less:
Goodwill		1,797				1,797				1,797				1,797				1,797
Other intangible assets		1,453				1,491				1,529				1,568				1,606
Tangible assets (b)	$	14,662,652			$	13,827,920			$	13,592,378			$	12,940,015			$	12,603,943
Tangible common shareholders’ equity to tangible assets (a/b)		7.49	%			7.69	%			7.56	%			7.73	%			7.97	%
Tangible book value per common share (a/c)	$	23.96			$	23.29			$	22.55			$	22.05			$	22.24
Efficiency ratio:
Noninterest expense (d)	$	87,285			$	89,293			$	84,017			$	81,257			$	77,589
Net interest income		115,485				109,221				100,532				97,474				97,000
Noninterest income		30,614				34,526				25,581				30,593				32,932
Total revenue (e)	$	146,099			$	143,747			$	126,113			$	128,067			$	129,932
Efficiency ratio (d/e)		59.74	%			62.12	%			66.62	%			63.45	%			59.72	%
Pre-provision net revenue (e-d)	$	58,814			$	54,454			$	42,096			$	46,810			$	52,343

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.

FAQ

What was Live Oak Bancshares (LOB) net income and EPS for 3Q 2025?

Live Oak reported $25.6 million net income attributable to common shareholders and $0.55 diluted EPS for 3Q 2025.

How much loan production did LOB report in the third quarter of 2025?

Live Oak reported $1.65 billion of loan and lease production in 3Q 2025.

What were Live Oak's total assets and year-over-year growth in 3Q 2025?

Total assets were $14.67 billion, a 16.3% increase compared to 3Q 2024.

How much capital did Live Oak raise in 3Q 2025 and how?

The company raised $96.3 million through a preferred stock offering in 3Q 2025.

Did Live Oak record any gains from disposals in 3Q 2025?

Yes; after quarter-end the sale of Apiture closed, producing an approximate pre-tax gain of $24.0 million.

When is Live Oak's earnings conference call for 3Q 2025 and how can investors join?

The call is scheduled for October 23, 2025 at 9:00 a.m. ET via telephone or webcast at investor.liveoakbank.com.