Live Oak Bancshares, Inc. Reports Third Quarter 2026 Results

Revenue growth outpaced expense growth, but a higher credit-loss provision accompanied lower earnings for common shareholders.

Rhea-AI Summary

Live Oak Bancshares (NYSE: LOB) reported third-quarter 2026 net income attributable to common shareholders of $24.3 million, down from both comparison quarters. Diluted earnings were $0.52 per share, versus $0.74 in the second quarter and $0.55 a year earlier. Revenue reached $175.646 million, up 12.5% sequentially and 23.4% year over year, while noninterest expense rose 1.4% and 2.6%, respectively.

Credit-loss provision expense reached $54.7 million, up from $25.8 million sequentially and $22.242 million a year earlier. Live Oak attributed the provision primarily to $17.0 million related to its stressed distillery portfolio and reserves supporting loan growth. Loan and lease production reached $2.134 billion, while deposits grew 6.3% sequentially to $15.468 billion. Net interest margin, measuring net interest income relative to earning assets, fell to 3.30% from 3.33% in both comparison quarters.

11 points · 0 major

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0 major · 10 points

How the balance works

Positive

• Moderate pointThird-quarter revenue of $175.646 million rose 12.5% sequentially and 23.4% year over year.
• Moderate pointPre-provision net revenue increased 25.6% sequentially and 52.9% year over year.
• Moderate pointLoan and lease production of $2,133.637 million rose 37.8% sequentially and 29.4% year over year.
• Moderate pointTotal loans and leases of $13,869.854 million increased 5.5% sequentially and 16.4% year over year.
• Moderate pointDeposits of $15,468.175 million increased 6.3% sequentially and 16.4% year over year.
• Moderate pointTotal assets of $16,965.575 million increased 5.8% sequentially and 15.7% year over year.

5 minor points

• Minor pointLoan servicing revenue of $9.710 million rose 5.6% sequentially and 10.2% year over year.
• Minor pointLoan servicing asset revaluation loss of $2.605 million narrowed from $4.278 million sequentially and $4.360 million annually.
• Minor pointLoan-sale gains of $20.893 million increased 19.0% sequentially and 22.2% year over year.
• Minor pointEquity-method investment income of $553 thousand improved from $74 thousand sequentially and a $1.470 million year-earlier loss.
• Minor pointOther noninterest income of $14.637 million increased 155.3% sequentially and 197.7% year over year.

Negative

• Moderate pointCommon-shareholder net income of $24.260 million fell 30.1% sequentially and 5.1% year over year.
• Moderate pointCredit-loss provision of $54.7 million increased 112.0% sequentially and 145.9% year over year. 3.3% of market cap
• Minor pointDiluted EPS of $0.52 declined from $0.74 sequentially and $0.55 a year earlier.
• Minor pointStressed distillery portfolio accounted for $17.0 million of provision-related action, Live Oak said.
• Minor pointNet interest margin of 3.30% fell three basis points from both comparison quarters.

5 minor points

• Minor pointNoninterest expense of $85.720 million increased 1.4% sequentially and 2.6% year over year.
• Minor pointEquity-security investment losses of $2.573 million compared with zero sequentially and $18 thousand year-earlier gains.
• Minor pointFair-value loan loss of $66 thousand compared with $291 thousand sequential gains and $350 thousand year-earlier losses.
• Minor pointLease income of $2.088 million declined 6.7% sequentially and 4.2% year over year.
• Minor pointEffective tax rate of 25.4% rose from 19.9% sequentially, but remained below 27.6% a year earlier.

Key Figures

Net income attributable to common shareholders: $24.260 million Diluted earnings per common share: $0.52 Total revenue: $175.646 million +5 more

Net income attributable to common shareholders

$24.260 million

3Q 2026; down 30.1% vs. 2Q 2026 and 5.1% vs. 3Q 2025

Diluted earnings per common share

$0.52

3Q 2026; down 29.7% vs. 2Q 2026 and 5.5% vs. 3Q 2025

Total revenue

$175.646 million

3Q 2026; increased 12.5% vs. 2Q 2026 and 23.4% vs. 3Q 2025

Net interest margin

3.30%

3Q 2026; decreased 3 basis points from 3.33%

Pre-provision net revenue

Increased 25.6% and 52.9%

3Q 2026 vs. 2Q 2026 and 3Q 2025, respectively

Provision for credit losses

$54.7 million

3Q 2026; increased $28.9 million vs. 2Q 2026 and $32.5 million vs. 3Q 2025

Loan and lease production

$2.134 billion

3Q 2026

Deposit growth

$920.649 million

During 3Q 2026, compared to June 30, 2026

Previous Earnings Reports

1 past event · Latest: Jul 22

Same Type 1 event

1. Jul 22

   Earnings report

   24h Move

   +3.9%

   Prior-quarter results reported $34.7 million net income and $25.8 million provision expense.

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

Key Terms

net interest margin, pre-provision net revenue, non-gaap, allowance for credit losses

4 terms

net interest margin financial

"Net interest margin decreased 3 basis points during the third quarter of 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

pre-provision net revenue financial

"which generated a 25.6% and 52.9% increase in pre-provision net revenue"

Pre-provision net revenue is a bank’s income from core operations — interest earned minus interest paid plus fees and other operating income, after operating costs — measured before setting aside funds for potential loan losses. Investors use it to gauge how well a bank’s everyday business generates money independent of one-time loss reserves, like judging a store’s sales and operating profit before accounting for an expected number of returned items.

non-gaap financial

"See accompanying GAAP to Non-GAAP Reconciliation."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

allowance for credit losses financial

"Allowance for credit losses on loans and leases"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

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

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WILMINGTON, N.C., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported third quarter of 2026 net income attributable to common shareholders of $24.3 million, or $0.52 per diluted common share.

Live Oak’s performance in the quarter, compared to the second quarter of 2026 and third quarter of 2025, includes these notable items:

• Net interest income increased 6.1% and 15.2% compared to the second quarter of 2026 and third quarter of 2025, respectively. Net interest margin decreased 3 basis points during the third quarter of 2026 from 3.33% for the second quarter of 2026 and third quarter of 2025 to 3.30%
• Revenue (comprised of net interest income and noninterest income) increased 12.5% and 23.4% compared to the second quarter of 2026 and third quarter of 2025, respectively, and noninterest expense increased 1.4% and 2.6% compared to the second quarter of 2026 and third quarter of 2025, respectively, which generated a 25.6% and 52.9% increase in pre-provision net revenue¹ compared to the second quarter of 2026 and third quarter of 2025, respectively
• Strong loan production of $2.1 billion accompanied by strong deposit growth of $920.6 million during the third quarter of 2026, compared to June 30, 2026, with total assets growing by 5.8% and 15.7% to $17.0 billion as of September 30, 2026, compared to June 30, 2026 and September 30, 2025, respectively
• Provision expense for credit losses of $54.7 million for the third quarter of 2026, increased $28.9 million and $32.5 million compared to the second quarter of 2026 and third quarter of 2025, respectively. The provision in the third quarter of 2026 was primarily driven by decisive action of $17.0 million related to the stressed distillery portfolio and reserves to support continued loan growth

“The fundamental story at Live Oak is that our franchise is getting stronger. Our operating leverage is improving, Live Oak Express continues to accelerate, and our deposit franchise is marching with gaining momentum,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “The earnings power of this business is expanding because revenue growth is meaningfully outpacing expenses, our loan origination engine is running strong,  and our strategic initiatives are delivering results. This operating leverage momentum has aided in absorbing the elevated provision expense in the quarter, which primarily supported record loan growth while also our continued efforts to decisively act to address stress in our distillery-related portfolio.  As I think about our operating earnings model, strong loan pipeline, and the possibilities that AI may unlock for both our customers and our employees, I am truly excited about Live Oak’s future.”

Conference Call

Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, October 22, 2026, at 9:00 a.m. ET. The call will be accessible by telephone and webcast. 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.: 833.461.5787
Meeting ID: 300 750 082

Live Webcast Log-In

Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required

Analyst Registration

To participate in Q&A, analysts must receive a unique passcode. Please follow instructions located at investor.liveoakbank.com.

(1)    See accompanying GAAP to Non-GAAP Reconciliation.

Third Quarter 2026 Key Measures

(Dollars in thousands, except per share data)													3Q 2026 Change vs.
													2Q 2026							3Q 2025
	3Q 2026				2Q 2026				3Q 2025				$				%			$				%
Total revenue (1)	$	175,646			$	156,145			$	142,330			$	19,501			12.5	%		$	33,316			23.4	%
Total noninterest expense		85,720				84,525				83,516				1,195			1.4				2,204			2.6
Provision for credit losses		54,700				25,800				22,242				28,900			112.0				32,458			145.9
Income before taxes		35,226				45,820				36,572				(10,594	)		(23.1	)			(1,346	)		(3.7	)
Effective tax rate		25.4	%			19.9	%			27.6	%		n/a				n/a			n/a				n/a
Net income attributable to common shareholders	$	24,260			$	34,701			$	25,562			$	(10,441	)		(30.1) %			$	(1,302	)		(5.1) %
Diluted earnings per common share		0.52				0.74				0.55				(0.22	)		(29.7	)			(0.03	)		(5.5	)
Loan and lease production		2,133,637				1,548,432				1,648,711				585,205			37.8				484,926			29.4
Total loans and leases		13,869,854				13,142,671				11,915,511				727,183			5.5				1,954,343			16.4
Total assets		16,965,575				16,038,141				14,665,902				927,434			5.8				2,299,673			15.7
Total deposits		15,468,175				14,547,526				13,290,723				920,649			6.3				2,177,452			16.4

(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 | 910.218.2196
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 2026 Change vs.
	3Q 2026				2Q 2026				1Q 2026				4Q 2025				3Q 2025				2Q 2026			3Q 2025
Interest income																					%			%
Loans and fees on loans	$	237,270			$	221,705			$	214,129			$	218,852			$	211,599			7.0			12.1
Investment securities, taxable		14,254				13,411				13,009				12,679				12,175			6.3			17.1
Other interest earning assets		7,953				6,601				6,726				8,124				7,654			20.5			3.9
Total interest income		259,477				241,717				233,864				239,655				231,428			7.3			12.1
Interest expense
Deposits		124,850				114,776				112,847				114,879				114,266			8.8			9.3
Borrowings		1,618				1,603				1,617				1,656				1,677			0.9			(3.5	)
Total interest expense		126,468				116,379				114,464				116,535				115,943			8.7			9.1
Net interest income		133,009				125,338				119,400				123,120				115,485			6.1			15.2
Provision for credit losses		54,700				25,800				20,100				21,845				22,242			112.0			145.9
Net interest income after provision for credit losses		78,309				99,538				99,300				101,275				93,243			(21.3	)		(16.0	)
Noninterest income
Loan servicing revenue		9,710				9,194				9,094				9,227				8,812			5.6			10.2
Loan servicing asset revaluation		(2,605	)			(4,278	)			(3,487	)			(3,932	)			(4,360	)		39.1			40.3
Net gains on sales of loans		20,893				17,554				15,425				12,313				17,099			19.0			22.2
Net (loss) gain on loans accounted for under the fair value option		(66	)			291				(1,165	)			1,518				(350	)		(122.7	)		81.1
Equity method investments income (loss)		553				74				(817	)			23,812				(1,470	)		647.3			137.6
Equity security investments (losses) gains, net		(2,573	)			—				—				4,691				18			(100.0	)		(14,394.4	)
Lease income		2,088				2,238				2,135				2,196				2,179			(6.7	)		(4.2	)
Other noninterest income		14,637				5,734				4,889				(38	)			4,917			155.3			197.7
Total noninterest income		42,637				30,807				26,074				49,787				26,845			38.4			58.8
Noninterest expense
Salaries and employee benefits		46,918				48,776				49,354				47,988				49,910			(3.8	)		(6.0	)
Travel expense		1,756				1,933				1,463				1,715				1,618			(9.2	)		8.5
Professional services expense		2,924				2,938				2,516				2,855				1,999			(0.5	)		46.3
Advertising and marketing expense		2,314				2,734				3,051				2,298				1,839			(15.4	)		25.8
Occupancy expense		2,384				2,364				2,410				2,317				2,339			0.8			1.9
Technology expense		10,263				9,608				9,749				13,397				10,234			6.8			0.3
Equipment expense		3,595				3,662				3,693				3,677				3,320			(1.8	)		8.3
Other loan origination and maintenance expense		5,101				4,864				5,919				4,917				4,777			4.9			6.8
Renewable energy tax credit investment impairment		310				26				—				129				336			1,092.3			(7.7	)
FDIC insurance		4,197				4,788				4,401				3,933				3,643			(12.3	)		15.2
Other expense		5,958				2,832				2,737				5,927				3,501			110.4			70.2
Total noninterest expense		85,720				84,525				85,293				89,153				83,516			1.4			2.6
Income before taxes		35,226				45,820				40,081				61,909				36,572			(23.1	)		(3.7	)
Income tax expense		8,961				9,116				10,134				15,787				10,106			(1.7	)		(11.3	)
Net income		26,265				36,704				29,947				46,122				26,466			(28.4	)		(0.8	)
Net loss attributable to non-controlling interest		88				91				93				88				50			(3.3	)		76.0
Net income attributable to Live Oak Bancshares, Inc.		26,353				36,795				30,040				46,210				26,516			(28.4	)		(0.6	)
Preferred stock dividends		2,093				2,094				2,094				2,094				954			—			119.4
Net income attributable to common shareholders	$	24,260			$	34,701			$	27,946			$	44,116			$	25,562			(30.1	)		(5.1	)
Earnings per common share
Basic	$	0.52			$	0.75			$	0.61			$	0.96			$	0.56			(30.7	)		(7.1	)
Diluted	$	0.52			$	0.74			$	0.60			$	0.95			$	0.55			(29.7	)		(5.5	)
Weighted average shares outstanding
Basic		46,325,262				46,265,757				46,138,609				45,906,268				45,780,794
Diluted		46,869,123				46,594,482				46,509,040				46,298,408				46,216,958

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

	As of the quarter ended																				3Q 2026 Change vs.
	3Q 2026				2Q 2026				1Q 2026				4Q 2025				3Q 2025				2Q 2026			3Q 2025
Assets																					%			%
Cash and due from banks	$	1,099,902			$	927,630			$	816,135			$	864,904			$	892,445			18.6			23.2
Certificates of deposit with other banks		250				250				250				250				250			—			—
Investment securities available-for-sale		1,500,709				1,467,855				1,434,538				1,427,401				1,373,219			2.2			9.3
Loans held for sale		496,807				511,812				435,313				420,055				360,693			(2.9	)		37.7
Loans and leases held for investment (1)		13,373,047				12,630,859				12,158,216				11,973,622				11,554,818			5.9			15.7
Allowance for credit losses on loans and leases		(213,630	)			(193,417	)			(193,279	)			(192,264	)			(185,700	)		(10.5	)		(15.0	)
Net loans and leases		13,159,417				12,437,442				11,964,937				11,781,358				11,369,118			5.8			15.7
Premises and equipment, net		220,894				231,198				235,329				240,203				241,140			(4.5	)		(8.4	)
Foreclosed assets		8,484				11,017				12,005				8,208				11,024			(23.0	)		(23.0	)
Servicing assets		71,215				66,733				64,677				63,155				62,491			6.7			14.0
Other assets		407,897				384,204				336,849				329,244				355,522			6.2			14.7
Total assets	$	16,965,575			$	16,038,141			$	15,300,033			$	15,134,778			$	14,665,902			5.8			15.7
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing	$	638,332			$	605,237			$	510,917			$	515,051			$	494,019			5.5			29.2
Interest-bearing		14,829,843				13,942,289				13,324,141				13,173,608				12,796,704			6.4			15.9
Total deposits		15,468,175				14,547,526				13,835,058				13,688,659				13,290,723			6.3			16.4
Borrowings		99,793				99,766				99,746				102,404				105,045			—			(5.0	)
Other liabilities		85,373				73,931				83,468				89,609				67,585			15.5			26.3
Total liabilities		15,653,341				14,721,223				14,018,272				13,880,672				13,463,353			6.3			16.3
Shareholders’ equity
Preferred stock		96,266				96,266				96,266				96,266				96,266			—			—
Class A common stock (voting)		404,119				399,396				392,258				388,389				383,288			1.2			5.4
Retained earnings		892,626				869,757				836,444				809,885				770,820			2.6			15.8
Accumulated other comprehensive loss		(84,743	)			(52,555	)			(47,352	)			(44,672	)			(52,151	)		(61.2	)		(62.5	)
Total shareholders' equity attributed to Live Oak Bancshares, Inc.		1,308,268				1,312,864				1,277,616				1,249,868				1,198,223			(0.4	)		9.2
Non-controlling interest		3,966				4,054				4,145				4,238				4,326			(2.2	)		(8.3	)
Total shareholders' equity		1,312,234				1,316,918				1,281,761				1,254,106				1,202,549			(0.4	)		9.1
Total liabilities and shareholders’ equity	$	16,965,575			$	16,038,141			$	15,300,033			$	15,134,778			$	14,665,902			5.8			15.7

(1)    Includes $216.6 million, $232.1 million, $244.9 million, $260.6 million and $280.3 million loans measured at fair value for the quarters ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively.

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

	Nine Months Ended
	September 30, 2026				September 30, 2025
Interest income
Loans and fees on loans	$	673,104			$	611,728
Investment securities, taxable		40,674				34,912
Other interest earning assets		21,280				22,177
Total interest income		735,058				668,817
Interest expense
Deposits		352,473				338,534
Borrowings		4,838				5,045
Total interest expense		357,311				343,579
Net interest income		377,747				325,328
Provision for credit losses		100,600				74,458
Net interest income after provision for credit losses		277,147				250,780
Noninterest income
Loan servicing revenue		27,998				25,675
Loan servicing asset revaluation		(10,370	)			(12,145	)
Net gains on sales of loans		53,872				50,107
Net loss on loans accounted for under the fair value option		(940	)			(302	)
Equity method investments (loss) income		(190	)			(6,425	)
Equity security investments gain (losses), net		(2,573	)			1,042
Lease income		6,461				7,855
Other noninterest income		25,260				13,864
Total noninterest income		99,518				79,671
Noninterest expense
Salaries and employee benefits		145,048				141,447
Travel expense		5,152				5,316
Professional services expense		8,378				7,897
Advertising and marketing expense		8,099				9,924
Occupancy expense		7,158				7,445
Technology expense		29,620				29,551
Equipment expense		10,950				10,750
Other loan origination and maintenance expense		15,884				13,552
Renewable energy tax credit investment impairment		336				606
FDIC insurance		13,386				10,739
Other expense		11,527				12,318
Total noninterest expense		255,538				249,545
Income before taxes		121,127				80,906
Income tax expense		28,211				21,385
Net income		92,916				59,521
Net loss attributable to non-controlling interest		272				140
Net income attributable to Live Oak Bancshares, Inc.		93,188				59,661
Preferred stock dividends		6,281				954
Net income attributable to common shareholders	$	86,907			$	58,707
Earnings per common share
Basic	$	1.88			$	1.29
Diluted	$	1.86			$	1.28
Weighted average shares outstanding
Basic		46,243,893				45,632,313
Diluted		46,658,232				45,956,835

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

	As of and for the three months ended
	3Q 2026				2Q 2026				1Q 2026				4Q 2025				3Q 2025
Income Statement Data
Net income attributable to common shareholders	$	24,260			$	34,701			$	27,946			$	44,116			$	25,562
Per Common Share
Net income, diluted	$	0.52			$	0.74			$	0.60			$	0.95			$	0.55
Dividends declared - common		0.03				0.03				0.03				0.03				0.03
Book value per common share		26.13				26.29				25.55				25.06				24.03
Tangible book value per common share (1)		26.05				26.20				25.46				24.97				23.96
Performance Ratios
Return on average assets (annualized)		0.59	%			0.90	%			0.74	%			1.19	%			0.72	%
Return on average common equity (annualized)		7.70				11.36				9.39				15.25				9.32
Net interest margin		3.30				3.33				3.27				3.38				3.33
Efficiency ratio (1)		48.80				54.13				58.63				51.56				58.68
Noninterest income to total revenue		24.27				19.73				17.92				28.79				18.86
Selected Loan Metrics
Loans and leases originated	$	2,133,637			$	1,548,432			$	1,368,311			$	1,638,113			$	1,648,711
Outstanding balance of sold loans serviced		6,338,443				5,991,590				5,943,787				5,599,724				5,563,363
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)		1.62	%			1.56	%			1.62	%			1.64	%			1.65	%
Net charge-offs (3)	$	32,087			$	24,162			$	18,585			$	13,739			$	16,816
Net charge-offs to average loans and leases held for investment (2) (3)		1.00	%			0.80	%			0.63	%			0.48	%			0.61	%
Nonperforming loans and leases at historical cost (3)
Unguaranteed	$	138,422			$	124,336			$	116,791			$	101,371			$	76,887
Guaranteed		370,267				346,419				327,409				399,786				379,381
Total		508,689				470,755				444,200				501,157				456,268
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)		1.05	%			1.00	%			0.98	%			0.87	%			0.68	%
Nonperforming loans at fair value (4)
Unguaranteed	$	11,607			$	6,623			$	6,884			$	7,715			$	6,775
Guaranteed		46,300				52,695				54,679				53,887				54,887
Total		57,907				59,318				61,563				61,602				61,662
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)		5.36	%			2.85	%			2.81	%			2.96	%			2.42	%
Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		9.94	%			10.42	%			10.63	%			10.53	%			10.51	%
Tier 1 leverage capital (to average assets)		8.23				8.59				8.47				8.48				8.57

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, 2026										Three Months Ended June 30, 2026										Three Months Ended September  30, 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	$	818,936			$	7,953		3.85	%		$	710,110			$	6,601		3.73	%		$	701,059			$	7,654		4.33	%
Investment securities		1,577,763				14,254		3.58				1,519,670				13,411		3.54				1,418,810				12,175		3.40
Loans held for sale		571,358				11,460		7.96				527,857				10,441		7.93				396,084				8,103		8.12
Loans and leases held for investment (1)		13,022,914				225,810		6.88				12,322,003				211,264		6.88				11,249,234				203,496		7.18
Total interest-earning assets		15,990,971				259,477		6.44				15,079,640				241,717		6.43				13,765,187				231,428		6.67
Less: Allowance for credit losses on loans and leases		(192,700	)									(193,304	)									(182,001	)
Noninterest-earning assets		586,176										537,352										530,529
Total assets	$	16,384,447									$	15,423,688									$	14,113,715
Interest-bearing liabilities:
Savings	$	7,661,348			$	64,020		3.32	%		$	7,170,652			$	58,289		3.26	%		$	6,608,380			$	58,657		3.52	%
Certificates of deposit		5,856,418				55,322		3.75				5,637,001				51,968		3.70				5,272,818				51,443		3.87
Other interest-bearing deposits		747,469				5,508		2.92				629,105				4,519		2.88				498,455				4,166		3.32
Total deposits		14,265,235				124,850		3.47				13,436,758				114,776		3.43				12,379,653				114,266		3.66
Borrowings		99,761				1,618		6.43				99,743				1,603		6.45				106,744				1,677		6.23
Total interest-bearing liabilities		14,364,996				126,468		3.49				13,536,501				116,379		3.45				12,486,397				115,943		3.68
Noninterest-bearing deposits		594,809										536,054										401,916
Noninterest-bearing liabilities		64,497										29,222										63,133
Shareholders' equity		1,356,092										1,317,767										1,157,893
Non-controlling interest		4,053										4,144										4,376
Total liabilities and shareholders' equity	$	16,384,447									$	15,423,688									$	14,113,715
Net interest income and interest rate spread					$	133,009		2.95	%						$	125,338		2.98	%						$	115,485		2.99	%
Net interest margin								3.30										3.33										3.33
Ratio of average interest-earning assets to average interest-bearing liabilities								111.32	%									111.40	%									110.24	%

(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 2026				2Q 2026				1Q 2026				4Q 2025				3Q 2025
Total shareholders’ equity	$	1,312,234			$	1,316,918			$	1,281,761			$	1,254,106			$	1,202,549
Less:
Preferred stock		96,266				96,266				96,266				96,266				96,266
Non-controlling interest		3,966				4,054				4,145				4,238				4,326
Total common shareholders' equity	$	1,212,002			$	1,216,598			$	1,181,350			$	1,153,602			$	1,101,957
Less:
Goodwill		1,797				1,797				1,797				1,797				1,797
Other intangible assets		1,937				2,013				2,089				2,165				1,453
Tangible common shareholders’ equity (a)	$	1,208,268			$	1,212,788			$	1,177,464			$	1,149,640			$	1,098,707
Shares outstanding (c)		46,377,874				46,283,620				46,240,691				46,032,402				45,855,739
Total assets	$	16,965,575			$	16,038,141			$	15,300,033			$	15,134,778			$	14,665,902
Less:
Goodwill		1,797				1,797				1,797				1,797				1,797
Other intangible assets		1,937				2,013				2,089				2,165				1,453
Tangible assets (b)	$	16,961,841			$	16,034,331			$	15,296,147			$	15,130,816			$	14,662,652
Tangible common shareholders’ equity to tangible assets (a/b)		7.12	%			7.56	%			7.70	%			7.60	%			7.49	%
Tangible book value per common share (a/c)	$	26.05			$	26.20			$	25.46			$	24.97			$	23.96
Efficiency ratio:
Noninterest expense (d)	$	85,720			$	84,525			$	85,293			$	89,153			$	83,516
Net interest income		133,009				125,338				119,400				123,120				115,485
Noninterest income		42,637				30,807				26,074				49,787				26,845
Total revenue (e)	$	175,646			$	156,145			$	145,474			$	172,907			$	142,330
Efficiency ratio (d/e)		48.80	%			54.13	%			58.63	%			51.56	%			58.68	%
Pre-provision net revenue (e-d)	$	89,926			$	71,620			$	60,181			$	83,754			$	58,814

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

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

What were Live Oak Bancshares' third-quarter 2026 earnings?

Live Oak reported $24.3 million in net income attributable to common shareholders and diluted earnings of $0.52 per common share. Diluted earnings compared with $0.74 in the second quarter of 2026 and $0.55 in the third quarter of 2025.

Why did Live Oak Bancshares' credit-loss provision rise in the third quarter of 2026?

Live Oak attributed the provision primarily to $17.0 million related to the stressed distillery portfolio and reserves supporting continued loan growth. Total provision expense was $54.7 million, compared with $25.8 million in the second quarter of 2026 and $22.242 million in the third quarter of 2025.