Live Oak Bancshares Inc Stock Price, News & Analysis

Live Oak Bancshares, Inc. (NASDAQ: LOB) announced it will release its third quarter 2022 financial results on October 26, 2022, after U.S. markets close. A conference call to discuss these results and the business outlook is scheduled for October 27, 2022, at 9:00 a.m. ET. Investors can access the call via a live audio webcast or by telephone registration. A replay of the call will be available until November 3, 2022.

Elpha Secure Technology Inc. has successfully completed a $20 million Series A funding round to enhance its cyber insurance offerings tailored for small and midsize businesses. Led by Canapi Ventures, the funding will accelerate product development and expand broker networks. Elpha Secure's innovative approach integrates proprietary cybersecurity software with insurance coverage, assisting businesses in reducing their cyber risks. The company aims to simplify the insurance acquisition process while improving customer security through embedded protection measures.

Live Oak Bancshares has appointed Yousef A. Valine to its board of directors, effective September 15, 2022. Valine brings over 37 years of experience in financial services, with significant roles at Wachovia and First Horizon Corporation. His expertise covers various aspects of risk management, regulatory relations, and governance. Live Oak's CEO, Chip Mahan, emphasizes Valine's potential to contribute to the bank's mission of supporting small businesses. Valine expressed enthusiasm for joining a bank that combines excellent service with innovative technology.

Live Oak Bank announced plans to add 204 jobs and invest $25 million in campus expansions over the next five years, supported by over $2 million in grants from North Carolina and local authorities. The new positions, with an average salary exceeding $101,000, will contribute more than $20 million annually to the local payroll. The grants include $1,539,750 from the NC Job Development Investment Grant, $300,000 from New Hanover County, and $200,000 from Wilmington. Live Oak plans to break ground on its fourth employee building soon.

Live Oak Bank has partnered with Ramp, a finance automation platform, to enhance access to Small Business Administration (SBA) loans for businesses seeking growth capital. This collaboration will allow Ramp's 7,000 customers to benefit from Live Oak's competitive loan processes, leveraging its Preferred Lender status. The partnership aims to deliver SBA loans efficiently, providing beneficial terms for acquisitions, expansions, and real estate purchases, while highlighting both companies' commitment to innovative financial solutions for entrepreneurs.

Live Oak Ventures has exited its investment in Payrailz, LLC, a digital payments platform acquired by Jack Henry & Associates. The expected pre-tax gain from this exit is approximately $28 million. This marks Live Oak's third investment yielding over 9x returns. The company has previously realized substantial gains from other investments, totaling $121 million in Finxact and $61 million in Greenlight Financial Technology. Live Oak Ventures holds investments in 11 companies with an estimated total value of $150 million as of June 30, 2022.

Live Oak Bank, a subsidiary of Live Oak Bancshares (NASDAQ: LOB), has enhanced its SBA Lending team by adding 10 seasoned lenders in the first half of 2022. These hires aim to facilitate business acquisitions, partner buyouts, and real estate financing efforts. The bank has established its position as a Preferred Lender Partner (PLP) with the SBA, allowing for expedited loan approval processes. The new team members bring comprehensive market knowledge, contributing to Live Oak’s mission of supporting American entrepreneurs and enhancing access to capital.

CVE North America and Live Oak Bank have successfully secured approximately $6.6 million in permanent debt financing for two community solar projects in Acushnet, MA, totaling 4.2 megawatts of capacity. This financing adds to CVE's Massachusetts portfolio, which now includes nine operational solar assets with over 37 megawatts. These projects qualify under the SMART program, providing solar credits to over 800 households and businesses.

The closing enhances CVE's ability to expand its clean energy initiatives, with 250 megawatts of additional projects in development.

Live Oak Bancshares reported a robust second quarter of 2022 with a net income of $97.0 million, or $2.16 per diluted share. This quarter included a significant pretax gain of $120.5 million from the sale of its investment in Finxact. Total revenue increased by 89% to $208.5 million, driven by strong loan production totaling $959.6 million. However, net interest margin decreased to 3.89%. Deposits rose to $8.16 billion, supporting the growth in loans. The company remains optimistic about future growth, indicating continued opportunities in serving small businesses.