STOCK TITAN
  1. Home
  2. Sec-filings
  3. LOB
  4. [8-K] Live Oak Bancshares, Inc. Reports Material Event

Live Oak Bancshares (NYSE: LOB) lifts Q2 profit and revenue

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Live Oak Bancshares, Inc. reported second quarter 2026 net income attributable to common shareholders of $34.7 million, or $0.74 per diluted share. Net income rose 24.2% from the first quarter of 2026 and 48.1% from the second quarter of 2025, with diluted EPS up 23.3% and 45.1% over those periods.

Total revenue, comprised of net interest income and noninterest income, increased 7.3% sequentially and 11.8% year over year, while total noninterest expense declined 0.9% and 0.8%. This produced pre-provision net revenue growth of 19.0% versus the prior quarter and 31.5% year over year. Net interest margin improved to 3.33% from 3.27% in the first quarter of 2026 and 3.28% in the prior-year quarter; return on average common equity was 11.36% and return on average assets 0.90%.

Loan and lease production was $1.55 billion, with total loans and leases up 4.4% from March 31, 2026 and 15.6% from June 30, 2025. Total deposits grew 5.1% sequentially and 15.5% year over year to $14.55 billion, and total assets reached $16.04 billion, up 4.8% and 16.0%, respectively. Provision expense for credit losses was $25.8 million, an increase of 28.4% from the prior quarter and 11.0% from a year earlier. The allowance for credit losses equaled 1.56% of loans and leases held for investment, and tangible book value per common share was $26.20.

Positive

  • Net income growth: Net income attributable to common shareholders increased 48.1% year over year in Q2 2026 to $34.7 million, with diluted EPS up 45.1% to $0.74.
  • Operating leverage: Total revenue grew 11.8% year over year while noninterest expense declined slightly, lifting pre-provision net revenue by 31.5% versus Q2 2025.

Negative

  • None.

Filing Explained

June 30 credit-quality measures and capital ratios add context to reported earnings; CET1 was 10.42 percent and unguaranteed nonperforming loans were 1.00 percent.

The July 22, 2026 Form 8-K reports second-quarter financial condition under Item 2.02; its holder-relevant structural information is the capital position supporting the reported results, rather than a new ownership mechanic.

For the quarter ended June 30, 2026, net charge-offs were $24,162 thousand, or 0.80% of average loans and leases held for investment; unguaranteed nonperforming historical-cost loans were $124,336 thousand, or 1.00% of those loans.

At quarter-end, common equity tier 1 capital was 10.42% of risk-weighted assets and tier 1 leverage capital was 8.59% of average assets, while tangible common equity was 7.56% of tangible assets.

The filing distinguishes historical-cost loan measures from fair-value loan measures, so the credit-quality percentages are not a single ratio covering every loan category.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income attributable to common shareholders $34.7 million Net income attributable to common shareholders for Q2 2026
Diluted EPS 0.74 Diluted earnings per common share for Q2 2026
Total revenue $156,145 thousand Total revenue (net interest income and noninterest income) in Q2 2026
Net interest margin 3.33 % Net interest margin for Q2 2026
Provision for credit losses $25,800 thousand Provision expense for credit losses in Q2 2026
Total assets $16,038,141 thousand Total assets as of June 30, 2026
Total deposits $14,547,526 thousand Total deposits as of June 30, 2026
Loan and lease production $1,548,432 thousand Loan and lease production during Q2 2026
pre-provision net revenue financial
"generated a 19.0% and 31.5% increase in pre-provision net revenue1"
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.
net interest margin financial
"Net interest margin increased 6 basis points during the second 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.
allowance for credit losses financial
"Allowance for credit losses on loans and leases | (193,417)"
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.
tangible book value per common share financial
"Tangible book value per common share (1) | 26.20"
A per-share measure of the company’s tangible net asset value available to common shareholders after removing intangible items (like goodwill, brand value, and patents) and any preferred shareholder claims. Think of it as the amount each common share would get if the company sold only its physical and financial assets and settled priority claims. Investors use it as a conservative baseline to judge whether a stock is cheaply priced relative to the company’s hard-asset backing.
efficiency ratio financial
"Efficiency ratio (1) | 54.13"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Net income attributable to common shareholders $34.7 million up 24.2% vs Q1 2026; up 48.1% vs Q2 2025
Diluted EPS 0.74 up 23.3% vs Q1 2026; up 45.1% vs Q2 2025
Total revenue $156,145 thousand up 7.3% vs Q1 2026; up 11.8% vs Q2 2025
Pre-provision net revenue $71,620 thousand up 19.0% vs Q1 2026; up 31.5% vs Q2 2025

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

What were Live Oak Bancshares (LOB) Q2 2026 earnings?
Live Oak Bancshares reported Q2 2026 net income attributable to common shareholders of $34.7 million, or $0.74 diluted EPS. Net income rose 24.2% from Q1 2026 and 48.1% from Q2 2025, with diluted EPS up 23.3% and 45.1% over those periods.

How did revenue perform for Live Oak Bancshares (LOB) in Q2 2026?
Total revenue, combining net interest income and noninterest income, increased 7.3% versus Q1 2026 and 11.8% versus Q2 2025. This revenue growth, alongside flat-to-lower expenses, contributed to a 19.0% sequential and 31.5% yearly rise in pre-provision net revenue.

What loan and deposit growth did LOB report in Q2 2026?
Live Oak Bancshares generated $1.55 billion in loan and lease production in Q2 2026. Total loans and leases increased 4.4% sequentially and 15.6% year over year, while total deposits grew 5.1% from Q1 2026 and 15.5% from Q2 2025 to $14.55 billion.

What were Live Oak Bancshares’ key profitability ratios in Q2 2026?
In Q2 2026, Live Oak Bancshares reported a net interest margin of 3.33%, up from 3.27% in Q1 2026. Return on average assets was 0.90%, and return on average common equity was 11.36%, reflecting higher earnings on a growing balance sheet.

How did credit quality and provisions look for LOB in Q2 2026?
Provision expense for credit losses was $25.8 million in Q2 2026, up 28.4% from Q1 2026 and 11.0% from Q2 2025. Net charge-offs were $24,162 thousand, or 0.80% of average loans and leases held for investment, annualized, and the allowance for credit losses stood at 1.56% of those loans.

What was Live Oak Bancshares’ tangible book value per share in Q2 2026?
At June 30, 2026, tangible common shareholders’ equity was $1,212,788 thousand, resulting in a tangible book value per common share of $26.20. This compared with $25.46 at March 31, 2026 and $23.29 at June 30, 2025, indicating continued capital build.
FALSE000146212000014621202026-07-222026-07-220001462120us-gaap:CommonStockMember2026-07-222026-07-220001462120us-gaap:SeriesAPreferredStockMember2026-07-222026-07-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 22, 2026
LiveOakBancsharesLogo.jpg
LIVE OAK BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
North Carolina001-3749726-4596286
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
1741 Tiburon Drive,Wilmington,NC28403
(Address of principal executive offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (910) 790-5867
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Voting Common Stock, no par value per shareLOBNew York Stock Exchange LLC
Depositary Shares, Each Representing a 1/40th Interest in a Share of 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock, no par value per share
LOB/PANew York Stock Exchange LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02.    Results of Operations and Financial Condition.
On July 22, 2026, Live Oak Bancshares, Inc. (the “Company”) announced financial results for the second quarter ended June 30, 2026. A copy of the press release announcing the Company’s results for the second quarter is attached as Exhibit 99.1 hereto and incorporated by reference herein.
The information contained in this report (including Exhibit 99.1) shall not be deemed “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number
Description
99.1
Press Release dated July 22, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
1

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
LIVE OAK BANCSHARES, INC.
Date: July 22, 2026
By:/s/ Walter J. Phifer
Walter J. Phifer
Chief Financial Officer
2

Exhibit 99.1
liveoakbancshareslogoa.jpg
Live Oak Bancshares, Inc. Reports Second Quarter 2026 Results
WILMINGTON, NC, July 22, 2026 - Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported second quarter of 2026 net income attributable to common shareholders of $34.7 million, or $0.74 per diluted common share.
Live Oak’s performance in the quarter, compared to the first quarter of 2026 and second quarter of 2025, includes these notable items:
•Strong loan production of $1.55 billion accompanied by strong deposit growth of $712.5 million as of June 30, 2026, compared to March 31, 2026, with total assets growing by 4.8% and 16.0% to $16.04 billion as of June 30, 2026, compared to March 31, 2026 and June 30, 2025, respectively
•Net interest income increased 5.0% and 14.8% compared to the first quarter of 2026 and second quarter of 2025, respectively. Net interest margin increased 6 basis points during the second quarter of 2026 from 3.27% for the first quarter of 2026 to 3.33% and increased 5 basis points compared to the second quarter of 2025
•Revenue (comprised of net interest income and noninterest income) increased 7.3% and 11.8% compared to the first quarter of 2026 and second quarter of 2025, respectively, and noninterest expense decreased 0.9% and 0.8% compared to the first quarter of 2026 and second quarter of 2025, respectively, which generated a 19.0% and 31.5% increase in pre-provision net revenue1 compared to the first quarter of 2026 and second quarter of 2025, respectively
•Provision expense for credit losses of $25.8 million for the second quarter of 2026, increased $5.7 million and $2.5 million compared to the first quarter of 2026 and second quarter of 2025, respectively
“Live Oak Bank’s performance in the second quarter includes several milestones worth highlighting,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “With $1.5 billion of loan originations, record Live Oak Express small dollar originations and strong checking balance growth, Live Oak layered another strong quarter of sustainable momentum across our core business. We are dedicated to serving American business owners with the capital and banking excellence they need, and our shareholders are seeing our path to success taking shape. It is an exciting time to be part of Live Oak’s journey, and I am incredibly proud of our teams."
Conference Call
Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, July 23, 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: 646976405
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.
1

Second Quarter 2026 Key Measures
(Dollars in thousands, except per share data)2Q 2026 Change vs.
1Q 20262Q 2025
2Q 20261Q 20262Q 2025$%$%
Total revenue (1)
$156,145 $145,474 $139,676 $10,671 7.3 %$16,469 11.8 %
Total noninterest expense84,525 85,293 85,222 (768)(0.9)(697)(0.8)
Provision for credit losses25,800 20,100 23,252 5,700 28.4 2,548 11.0 
Income before taxes45,820 40,081 31,202 5,739 14.3 14,618 46.8 
Effective tax rate19.9 %25.3 %25.0 %n/an/an/an/a
Net income attributable to common shareholders$34,701 $27,946 $23,428 $6,755 24.2 %$11,273 48.1 %
Diluted earnings per common share0.74 0.60 0.51 0.14 23.3 0.23 45.1 
Loan and lease production1,548,432 1,368,311 1,526,592 180,121 13.2 21,840 1.4 
Total loans and leases13,142,671 12,593,529 11,364,846 549,142 4.4 1,777,825 15.6 
Total assets16,038,141 15,300,033 13,831,208 738,108 4.8 2,206,933 16.0 
Total deposits14,547,526 13,835,058 12,594,790 712,468 5.1 1,952,736 15.5 
(1)Total revenue consists of net interest income and total noninterest income.
2

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
3

Live Oak Bancshares, Inc.
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended2Q 2026 Change vs.
2Q 20261Q 20264Q 20253Q 20252Q 20251Q 20262Q 2025
Interest income%%
Loans and fees on loans$221,705 $214,129 $218,852 $211,599 $204,513 3.5 8.4 
Investment securities, taxable13,411 13,009 12,679 12,175 11,648 3.1 15.1 
Other interest earning assets6,601 6,726 8,124 7,654 8,123 (1.9)(18.7)
Total interest income241,717 233,864 239,655 231,428 224,284 3.4 7.8 
Interest expense 
Deposits114,776 112,847 114,879 114,266 113,380 1.7 1.2 
Borrowings1,603 1,617 1,656 1,677 1,683 (0.9)(4.8)
Total interest expense116,379 114,464 116,535 115,943 115,063 1.7 1.1 
Net interest income125,338 119,400 123,120 115,485 109,221 5.0 14.8 
Provision for credit losses25,800 20,100 21,845 22,242 23,252 28.4 11.0 
Net interest income after provision for credit losses99,538 99,300 101,275 93,243 85,969 0.2 15.8 
Noninterest income
Loan servicing revenue9,194 9,094 9,227 8,812 8,565 1.1 7.3 
Loan servicing asset revaluation(4,278)(3,487)(3,932)(4,360)(3,057)(22.7)(39.9)
Net gains on sales of loans17,554 15,425 12,313 17,099 17,570 13.8 (0.1)
Net gain (loss) on loans accounted for under the fair value option291 (1,165)1,518 (350)1,082 125.0 (73.1)
Equity method investments income (loss)74 (817)23,812 (1,470)(2,716)109.1 102.7 
Equity security investments gains, net— — 4,691 18 1,004 — (100.0)
Lease income2,238 2,135 2,196 2,179 3,103 4.8 (27.9)
Other noninterest income5,734 4,889 (38)4,917 4,904 17.3 16.9 
Total noninterest income30,807 26,074 49,787 26,845 30,455 18.2 1.2 
Noninterest expense
Salaries and employee benefits48,776 49,354 47,988 49,910 46,008 (1.2)6.0 
Travel expense1,933 1,463 1,715 1,618 1,634 32.1 18.3 
Professional services expense2,938 2,516 2,855 1,999 2,874 16.8 2.2 
Advertising and marketing expense2,734 3,051 2,298 1,839 4,420 (10.4)(38.1)
Occupancy expense2,364 2,410 2,317 2,339 2,369 (1.9)(0.2)
Technology expense9,608 9,749 13,397 10,234 10,066 (1.4)(4.5)
Equipment expense3,662 3,693 3,677 3,320 3,685 (0.8)(0.6)
Other loan origination and maintenance expense4,864 5,919 4,917 4,777 4,190 (17.8)16.1 
Renewable energy tax credit investment impairment26 — 129 336 270 100.0 (90.4)
FDIC insurance4,788 4,401 3,933 3,643 3,545 8.8 35.1 
Other expense2,832 2,737 5,927 3,501 6,161 3.5 (54.0)
Total noninterest expense84,525 85,293 89,153 83,516 85,222 (0.9)(0.8)
Income before taxes45,820 40,081 61,909 36,572 31,202 14.3 46.8 
Income tax expense9,116 10,134 15,787 10,106 7,815 (10.0)16.6 
Net income36,704 29,947 46,122 26,466 23,387 22.6 56.9 
Net loss attributable to non-controlling interest91 93 88 50 41 (2.2)122.0 
Net income attributable to Live Oak Bancshares, Inc.36,795 30,040 46,210 26,516 23,428 22.5 57.1 
Preferred stock dividends2,094 2,094 2,094 954 — — 100.0 
Net income attributable to common shareholders$34,701 $27,946 $44,116 $25,562 $23,428 24.2 48.1 
Earnings per common share
Basic$0.75 $0.61 $0.96 $0.56 $0.51 23.0 47.1 
Diluted$0.74 $0.60 $0.95 $0.55 $0.51 23.3 45.1 
Weighted average shares outstanding
Basic46,265,757 46,138,609 45,906,268 45,780,794 45,634,741 
Diluted46,594,482 46,509,040 46,298,408 46,216,958 45,795,608 
4

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)
As of the quarter ended2Q 2026 Change vs.
2Q 20261Q 20264Q 20253Q 20252Q 20251Q 20262Q 2025
Assets%%
Cash and due from banks$927,630 $816,135 $864,904 $892,445 $662,755 13.7 40.0 
Certificates of deposit with other banks250 250 250 250 250 — — 
Investment securities available-for-sale1,467,855 1,434,538 1,427,401 1,373,219 1,325,206 2.3 10.8 
Loans held for sale
511,812 435,313 420,055 360,693 350,791 17.6 45.9 
Loans and leases held for investment (1)
12,630,859 12,158,216 11,973,622 11,554,818 11,014,055 3.9 14.7 
Allowance for credit losses on loans and leases(193,417)(193,279)(192,264)(185,700)(182,231)(0.1)(6.1)
Net loans and leases12,437,442 11,964,937 11,781,358 11,369,118 10,831,824 3.9 14.8 
Premises and equipment, net231,198 235,329 240,203 241,140 246,493 (1.8)(6.2)
Foreclosed assets11,017 12,005 8,208 11,024 6,318 (8.2)74.4 
Servicing assets66,733 64,677 63,155 62,491 60,359 3.2 10.6 
Other assets384,204 336,849 329,244 355,522 347,212 14.1 10.7 
Total assets$16,038,141 $15,300,033 $15,134,778 $14,665,902 $13,831,208 4.8 16.0 
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing$605,237 $510,917 $515,051 $494,019 $393,393 18.5 53.9 
Interest-bearing13,942,289 13,324,141 13,173,608 12,796,704 12,201,397 4.6 14.3 
Total deposits14,547,526 13,835,058 13,688,659 13,290,723 12,594,790 5.1 15.5 
Borrowings99,766 99,746 102,404 105,045 107,659 — (7.3)
Other liabilities73,931 83,468 89,609 67,585 61,494 (11.4)20.2 
Total liabilities14,721,223 14,018,272 13,880,672 13,463,353 12,763,943 5.0 15.3 
Shareholders’ equity
Preferred stock96,266 96,266 96,266 96,266 — — 100.0 
Class A common stock (voting)399,396 392,258 388,389 383,288 377,953 1.8 5.7 
Class B common stock (non-voting)— — — — — — — 
Retained earnings869,757 836,444 809,885 770,820 746,450 4.0 16.5 
Accumulated other comprehensive loss(52,555)(47,352)(44,672)(52,151)(61,514)(11.0)14.6 
Total shareholders' equity attributed to Live Oak Bancshares, Inc.1,312,864 1,277,616 1,249,868 1,198,223 1,062,889 2.8 23.5 
Non-controlling interest4,054 4,145 4,238 4,326 4,376 (2.2)(7.4)
Total shareholders' equity1,316,918 1,281,761 1,254,106 1,202,549 1,067,265 2.7 23.4 
Total liabilities and shareholders’ equity$16,038,141 $15,300,033 $15,134,778 $14,665,902 $13,831,208 4.8 16.0 
(1)Includes $232.1 million, $244.9 million, $260.6 million, $280.3 million and $303.8 million loans measured at fair value for the quarters ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.
5

Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Six Months Ended
June 30, 2026June 30, 2025
Interest income
Loans and fees on loans$435,834 $400,129 
Investment securities, taxable26,420 22,737 
Other interest earning assets13,327 14,523 
Total interest income475,581 437,389 
Interest expense
Deposits227,623 224,268 
Borrowings3,220 3,368 
Total interest expense230,843 227,636 
Net interest income244,738 209,753 
Provision for credit losses45,900 52,216 
Net interest income after provision for credit losses198,838 157,537 
Noninterest income
Loan servicing revenue18,288 16,863 
Loan servicing asset revaluation(7,765)(7,785)
Net gains on sales of loans32,979 33,008 
Net (loss) gain on loans accounted for under the fair value option(874)48 
Equity method investments (loss) income(743)(4,955)
Equity security investments gain (losses), net— 1,024 
Lease income4,373 5,676 
Other noninterest income10,623 8,947 
Total noninterest income56,881 52,826 
Noninterest expense
Salaries and employee benefits98,130 91,537 
Travel expense3,396 3,698 
Professional services expense5,454 5,898 
Advertising and marketing expense5,785 8,085 
Occupancy expense4,774 5,106 
Technology expense19,357 19,317 
Equipment expense7,355 7,430 
Other loan origination and maintenance expense10,783 8,775 
Renewable energy tax credit investment impairment26 270 
FDIC insurance9,189 7,096 
Other expense5,569 8,817 
Total noninterest expense169,818 166,029 
Income before taxes85,901 44,334 
Income tax expense19,250 11,279 
Net income66,651 33,055 
Net loss attributable to non-controlling interest184 90 
Net income attributable to Live Oak Bancshares, Inc.66,835 33,145 
Preferred stock dividends4,188 — 
Net income attributable to common shareholders$62,647 $33,145 
Earnings per common share
Basic$1.36 $0.72 
Diluted$1.35 $0.72 
Weighted average shares outstanding
Basic46,202,534 45,556,842 
Diluted46,552,112 45,825,543 
6

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)
As of and for the three months ended
2Q 20261Q 20264Q 20253Q 20252Q 2025
Income Statement Data
Net income attributable to common shareholders$34,701 $27,946 $44,116 $25,562 $23,428 
Per Common Share
Net income, diluted$0.74 $0.60 $0.95 $0.55 $0.51 
Dividends declared - common0.03 0.03 0.03 0.03 0.03 
Book value per common share26.29 25.55 25.06 24.03 23.36 
Tangible book value per common share (1)
26.20 25.46 24.97 23.96 23.29 
Performance Ratios
Return on average assets (annualized)0.90 %0.74 %1.19 %0.72 %0.68 %
Return on average common equity (annualized)11.36 9.39 15.25 9.32 8.85 
Net interest margin3.33 3.27 3.38 3.33 3.28 
Efficiency ratio (1)
54.13 58.63 51.56 58.68 61.01 
Noninterest income to total revenue19.73 17.92 28.79 18.86 21.80 
Selected Loan Metrics
Loans and leases originated$1,548,432 $1,368,311 $1,638,113 $1,648,711 $1,526,592 
Outstanding balance of sold loans serviced5,991,590 5,943,787 5,599,724 5,563,363 5,321,284 
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)
1.56 %1.62 %1.64 %1.65 %1.70 %
Net charge-offs (3)
$24,162 $18,585 $13,739 $16,816 $31,445 
Net charge-offs to average loans and leases held for investment (2) (3)
0.80 %0.63 %0.48 %0.61 %1.19 %
Nonperforming loans and leases at historical cost (3)
Unguaranteed$124,336 $116,791 $101,371 $76,887 $59,555 
Guaranteed346,419 327,409 399,786 379,381 336,777 
Total470,755 444,200 501,157 456,268 396,332 
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)
1.00 %0.98 %0.87 %0.68 %0.56 %
Nonperforming loans at fair value (4)
Unguaranteed$6,623 $6,884 $7,715 $6,775 $8,873 
Guaranteed52,695 54,679 53,887 54,887 60,453 
Total59,318 61,563 61,602 61,662 69,326 
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)
2.85 %2.81 %2.96 %2.42 %2.92 %
Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)10.42 %10.63 %10.53 %10.51 %10.67 %
Tier 1 leverage capital (to average assets)8.59 8.47 8.48 8.57 7.90 
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).
7

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)
Three Months Ended
June 30, 2026
Three Months Ended
March 31, 2026
Three Months Ended
June 30, 2025
Average BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks$710,110 $6,601 3.73 %$729,938 $6,726 3.74 %$727,715 $8,123 4.48 %
Investment securities1,519,670 13,411 3.54 1,492,023 13,009 3.54 1,408,942 11,648 3.32 
Loans held for sale527,857 10,441 7.93 514,501 9,792 7.72 381,531 8,008 8.42 
Loans and leases held for investment (1)
12,322,003 211,264 6.88 12,081,396 204,337 6.86 10,843,303 196,505 7.27 
Total interest-earning assets15,079,640 241,717 6.43 14,817,858 233,864 6.40 13,361,491 224,284 6.73 
Less: Allowance for credit losses on loans and leases(193,304)(190,522)(186,022)
Noninterest-earning assets537,352 547,970 539,485 
Total assets$15,423,688 $15,175,306 $13,714,954 
Interest-bearing liabilities:
Savings$7,170,652 $58,289 3.26 %$6,910,397 $55,420 3.25 %$6,241,053 $56,529 3.63 %
Certificates of deposit5,637,001 51,968 3.70 5,730,803 53,337 3.77 5,392,494 52,789 3.93 
Other interest-bearing deposits629,105 4,519 2.88 579,330 4,090 2.86 479,735 4,062 3.40 
Total deposits13,436,758 114,776 3.43 13,220,530 112,847 3.46 12,113,282 113,380 3.75 
Borrowings99,743 1,603 6.45 103,329 1,617 6.35 109,463 1,683 6.17 
Total interest-bearing liabilities13,536,501 116,379 3.45 13,323,859 114,464 3.48 12,222,745 115,063 3.78 
Noninterest-bearing deposits536,054 491,301 375,503 
Noninterest-bearing liabilities29,222 69,596 53,717 
Shareholders' equity1,317,767 1,286,313 1,058,572 
Non-controlling interest4,144 4,237 4,417 
Total liabilities and shareholders' equity$15,423,688 $15,175,306 $13,714,954 
Net interest income and interest rate spread$125,338 2.98 %$119,400 2.92 %$109,221 2.95 %
Net interest margin3.33 3.27 3.28 
Ratio of average interest-earning assets to average interest-bearing liabilities111.40 %111.21 %109.32 %
(1)Average loan and lease balances include non-accruing loans and leases.
8

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)
As of and for the three months ended
2Q 20261Q 20264Q 20253Q 20252Q 2025
Total shareholders’ equity$1,316,918 $1,281,761 $1,254,106 $1,202,549 $1,067,265 
Less:
Preferred stock96,266 96,266 96,266 96,266 — 
Non-controlling interest4,054 4,145 4,238 4,326 — 
Total common shareholders' equity$1,216,598 $1,181,350 $1,153,602 $1,101,957 $1,067,265 
Less:
Goodwill1,797 1,797 1,797 1,797 1,797 
Other intangible assets2,013 2,089 2,165 1,453 1,491 
Tangible common shareholders’ equity (a)$1,212,788 $1,177,464 $1,149,640 $1,098,707 $1,063,977 
Shares outstanding (c)46,283,620 46,240,691 46,032,402 45,855,739 45,686,081 
Total assets$16,038,141 $15,300,033 $15,134,778 $14,665,902 $13,831,208 
Less:
Goodwill1,797 1,797 1,797 1,797 1,797 
Other intangible assets2,013 2,089 2,165 1,453 1,491 
Tangible assets (b)$16,034,331 $15,296,147 $15,130,816 $14,662,652 $13,827,920 
Tangible common shareholders’ equity to tangible assets (a/b)7.56 %7.70 %7.60 %7.49 %7.69 %
Tangible book value per common share (a/c)$26.20 $25.46 $24.97 $23.96 $23.29 
Efficiency ratio:
Noninterest expense (d)$84,525 $85,293 $89,153 $83,516 $85,222 
Net interest income125,338 119,400 123,120 115,485 109,221 
Noninterest income30,807 26,074 49,787 26,845 30,455 
Total revenue (e)$156,145 $145,474 $172,907 $142,330 $139,676 
Efficiency ratio (d/e)54.13 %58.63 %51.56 %58.68 %61.01 %
Pre-provision net revenue (e-d)$71,620 $60,181 $83,754 $58,814 $54,454 
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.
9

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

5 documents

Press Releases

Other Documents