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Live Oak Bancshares (NYSE: LOB) Q1 2026 profit surges year over year

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

Rhea-AI Filing Summary

Live Oak Bancshares reported solid first quarter 2026 growth, with some quarterly volatility. Net income attributable to common shareholders was $27.9 million, or $0.60 per diluted share, up sharply from $9.7 million and $0.21 a year earlier, but down from the unusually strong fourth quarter of 2025.

Total revenue was $145.5 million, decreasing 15.9% from the prior quarter, largely because Q4 2025 included a $24.1 million gain from the sale of Apiture, Inc. and a $9.0 million portfolio investment gain, but rising 18.4% year over year. Provision for credit losses was $20.1 million, down both sequentially and versus the prior year.

The loan book and funding base continued to expand. Loan and lease production reached $1.37 billion, total loans and leases grew to $12.59 billion, and deposits rose to $13.84 billion, up 11.6% from a year earlier. Net interest margin was 3.27%, slightly below the fourth quarter but above the first quarter of 2025, while return on average common equity was 9.39%. Management highlighted strong loan production, deposit growth, and a focus on Live Oak Express, business checking, and prudent capital management.

Positive

  • Strong year-over-year earnings growth: Net income attributable to common shareholders rose to $27.9 million and diluted EPS to $0.60, increases of 187.6% and 185.7% versus the first quarter of 2025.
  • Balance sheet and franchise expansion: Total assets reached $15.30 billion, loans and leases $12.59 billion, and deposits $13.84 billion, representing double-digit year-over-year growth across all three measures.

Negative

  • None.

Insights

Results show strong year-over-year earnings and balance sheet growth, despite lapping one-time gains.

Live Oak Bancshares delivered first quarter 2026 net income attributable to common shareholders of $27.9 million, up sharply from $9.7 million in Q1 2025. Diluted EPS rose to $0.60, reflecting higher core revenue and lower credit provisioning versus a year ago.

Total revenue of $145.5 million fell 15.9% from Q4 2025, mainly because the prior quarter benefited from a $24.1 million gain on the sale of Apiture, Inc. and a $9.0 million portfolio investment gain. Excluding those one-time items, underlying performance looks steadier, with revenue up 18.4% year over year.

Loan and lease production of $1.37 billion, total loans of $12.59 billion, and deposits of $13.84 billion show ongoing franchise growth. Net interest margin of 3.27% compressed modestly from 3.38% in Q4 2025 but improved versus Q1 2025. Provision expense of $20.1 million was lower than both comparison periods, and capital ratios such as common equity tier 1 at 10.63% indicate a solid capital position based on the disclosed data.

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 to common $27.9M Q1 2026 net income attributable to common shareholders
Diluted EPS $0.60 Q1 2026 diluted earnings per common share
Total revenue $145.5M Q1 2026; down 15.9% QoQ, up 18.4% YoY
Provision for credit losses $20.1M Q1 2026 provision expense, lower than Q4 2025 and Q1 2025
Loan production $1.37B Q1 2026 loan and lease production
Total deposits $13.84B End of Q1 2026; up 11.6% year over year
Net interest margin 3.27% Q1 2026 net interest margin
Return on average common equity 9.39% Q1 2026 annualized ROE
net interest margin financial
"Net interest margin decreased 11 basis points during the first quarter of 2026 from 3.38% for the fourth quarter of 2025 to 3.27%"
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 28.1% decrease and 43.0% increase in pre-provision net revenue1 compared to the fourth quarter of 2025 and first quarter of 2025, respectively."
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.
allowance for credit losses financial
"Allowance for credit losses to loans and leases held for investment (3) | 1.62 %"
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.
noninterest income financial
"Total noninterest income | 26,074 | | | 49,787 | | | 26,845"
Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.
tangible book value per common share financial
"Tangible book value per common share (1) | 25.46 | | | 24.97 | | | 23.96"
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.
common equity tier 1 capital financial
"Common equity tier 1 capital (to risk-weighted assets) | 10.63 %"
Core capital a bank holds consisting mainly of common shares and retained profits that can absorb losses without forcing the bank to sell assets or seek emergency help; items that can’t reliably cover losses are excluded. Think of it as the bank’s shock-absorbing cushion: a higher common equity tier 1 (CET1) level and ratio means regulators and investors view the bank as better able to survive bad loans or market shocks, so it signals lower risk to shareholders and creditors.
Net income attributable to common shareholders $27.9M +187.6% YoY
Diluted EPS $0.60 +185.7% YoY
Total revenue $145.5M +18.4% YoY
Total loans and leases $12.59B +13.8% YoY
Total deposits $13.84B +11.6% YoY
Understanding 8-K Material Events →
FALSE000146212000014621202026-04-222026-04-220001462120us-gaap:CommonStockMember2026-04-222026-04-220001462120us-gaap:SeriesAPreferredStockMember2026-04-222026-04-22

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): April 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 April 22, 2026, Live Oak Bancshares, Inc. (the “Company”) announced financial results for the first quarter ended March 31, 2026. A copy of the press release announcing the Company’s results for the first 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 April 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: April 22, 2026
By:/s/ Walter J. Phifer
Walter J. Phifer
Chief Financial Officer
2

Exhibit 99.1
liveoakbancshareslogo.jpg
Live Oak Bancshares, Inc. Reports First Quarter 2026 Results
WILMINGTON, NC, April 22, 2026 - Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported first quarter of 2026 net income attributable to common shareholders of $27.9 million, or $0.60 per diluted common share.
Live Oak’s performance in the quarter, compared to the fourth quarter of 2025 and first quarter of 2025, includes these notable items:
•Strong loan production of $1.37 billion accompanied by strong deposit growth of $146.4 million in the first quarter of 2026, with total assets growing by 1.1% and 12.5% to $15.30 billion compared to the fourth quarter of 2025 and first quarter of 2025, respectively
•Net interest income decreased 3.0% and increased 18.8% compared to the fourth quarter of 2025 and first quarter of 2025, respectively. Net interest margin decreased 11 basis points during the first quarter of 2026 from 3.38% for the fourth quarter of 2025 to 3.27% and increased 7 basis points compared to the first quarter of 2025
•Revenue (comprised of net interest income and noninterest income) decreased 15.9% and increased 18.4% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, and noninterest expense decreased 4.3% and increased 5.6% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, which generated a 28.1% decrease and 43.0% increase in pre-provision net revenue1 compared to the fourth quarter of 2025 and first quarter of 2025, respectively. The decrease in revenue and pre-provision net revenue1 compared to the fourth quarter of 2025 is largely related to a $24.1 million pre-tax gain related to the sale of Apiture, Inc. and $9.0 million gain arising from the sale of a portfolio investment in the fourth quarter of 2025
•Provision expense for credit losses of $20.1 million for the first quarter of 2026, decreased $1.7 million and $8.9 million compared to the fourth quarter of 2025 and first quarter of 2025, respectively
“We are pleased with the momentum we’ve carried into 2026. Our first quarter results reflect the strength of our differentiated model and our commitment to serving America’s small business owners,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We delivered strong loan production, deposit growth, and stable credit performance during the quarter. We remain focused on our key initiatives, Live Oak Express and business checking, in addition to balance sheet strength and prudent capital management. We believe we are well positioned to support our customers, manage through a dynamic environment, and continue building long-term value for shareholders.”
Conference Call
Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, April 23, 2026, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 98602. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:
Live Telephone Dial-In
U.S.: 800.549.8228
International: +1 646.564.2877
Pass Code: None Required
Live Webcast Log-In
Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration
(1)See accompanying GAAP to Non-GAAP Reconciliation.
1

First Quarter 2026 Key Measures
(Dollars in thousands, except per share data)1Q 2026 Change vs.
4Q 20251Q 2025
1Q 20264Q 20251Q 2025$%$%
Total revenue (1)
$145,474 $172,907 $122,903 $(27,433)(15.9)%$22,571 18.4 %
Total noninterest expense85,293 89,153 80,807 (3,860)(4.3)4,486 5.6 
Provision for credit losses20,100 21,845 28,964 (1,745)(8.0)(8,864)(30.6)
Income before taxes40,081 61,909 13,132 (21,828)(35.3)26,949 205.2 
Effective tax rate25.3 %25.5 %26.4 %n/an/an/an/a
Net income attributable to common shareholders$27,946 $44,116 $9,717 $(16,170)(36.7)%$18,229 187.6 %
Diluted earnings per common share0.60 0.95 0.21 (0.35)(36.8)0.39 185.7 
Loan and lease production1,368,311 1,638,113 1,396,223 (269,802)(16.5)(27,912)(2.0)
Total loans and leases12,593,529 12,393,677 11,061,866 199,852 1.6 1,531,663 13.8 
Total assets15,300,033 15,134,778 13,595,704 165,255 1.1 1,704,329 12.5 
Total deposits13,835,058 13,688,659 12,395,945 146,399 1.1 1,439,113 11.6 
(1)Total revenue consists of net interest income and total noninterest income.
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 | 910.202.6926
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 Ended1Q 2026 Change vs.
1Q 20264Q 20253Q 20252Q 20251Q 20254Q 20251Q 2025
Interest income%%
Loans and fees on loans$214,129 $218,852 $211,599 $204,513 $195,616 (2.2)9.5 
Investment securities, taxable13,009 12,679 12,175 11,648 11,089 2.6 17.3 
Other interest earning assets6,726 8,124 7,654 8,123 6,400 (17.2)5.1 
Total interest income233,864 239,655 231,428 224,284 213,105 (2.4)9.7 
Interest expense 
Deposits112,847 114,879 114,266 113,380 110,888 (1.8)1.8 
Borrowings1,617 1,656 1,677 1,683 1,685 (2.4)(4.0)
Total interest expense114,464 116,535 115,943 115,063 112,573 (1.8)1.7 
Net interest income119,400 123,120 115,485 109,221 100,532 (3.0)18.8 
Provision for credit losses20,100 21,845 22,242 23,252 28,964 (8.0)(30.6)
Net interest income after provision for credit losses99,300 101,275 93,243 85,969 71,568 (2.0)38.7 
Noninterest income
Loan servicing revenue9,094 9,227 8,812 8,565 8,298 (1.4)9.6 
Loan servicing asset revaluation(3,487)(3,932)(4,360)(3,057)(4,728)11.3 26.2 
Net gains on sales of loans15,425 12,313 17,099 17,570 15,438 25.3 (0.1)
Net (loss) gain on loans accounted for under the fair value option(1,165)1,518 (350)1,082 (1,034)(176.7)(12.7)
Equity method investments (loss) income(817)23,812 (1,470)(2,716)(2,239)(103.4)63.5 
Equity security investments gains, net— 4,691 18 1,004 20 (100.0)(100.0)
Lease income2,135 2,196 2,179 3,103 2,573 (2.8)(17.0)
Other noninterest income4,889 (38)4,917 4,904 4,043 12,965.8 20.9 
Total noninterest income26,074 49,787 26,845 30,455 22,371 (47.6)16.6 
Noninterest expense
Salaries and employee benefits49,354 47,988 49,910 46,008 45,529 2.8 8.4 
Travel expense1,463 1,715 1,618 1,634 2,064 (14.7)(29.1)
Professional services expense2,516 2,855 1,999 2,874 3,024 (11.9)(16.8)
Advertising and marketing expense3,051 2,298 1,839 4,420 3,665 32.8 (16.8)
Occupancy expense2,410 2,317 2,339 2,369 2,737 4.0 (11.9)
Technology expense9,749 13,397 10,234 10,066 9,251 (27.2)5.4 
Equipment expense3,693 3,677 3,320 3,685 3,745 0.4 (1.4)
Other loan origination and maintenance expense5,919 4,917 4,777 4,190 4,585 20.4 29.1 
Renewable energy tax credit investment impairment— 129 336 270 — (100.0)— 
FDIC insurance4,401 3,933 3,643 3,545 3,551 11.9 23.9 
Other expense2,737 5,927 3,501 6,161 2,656 (53.8)3.0 
Total noninterest expense85,293 89,153 83,516 85,222 80,807 (4.3)5.6 
Income before taxes40,081 61,909 36,572 31,202 13,132 (35.3)205.2 
Income tax expense10,134 15,787 10,106 7,815 3,464 (35.8)192.6 
Net income29,947 46,122 26,466 23,387 9,668 (35.1)209.8 
Net loss attributable to non-controlling interest93 88 50 41 49 5.7 89.8 
Net income attributable to Live Oak Bancshares, Inc.30,040 46,210 26,516 23,428 9,717 (35.0)209.1 
Preferred stock dividends2,094 2,094 954 — — — 100.0 
Net income attributable to common shareholders$27,946 $44,116 $25,562 $23,428 $9,717 (36.7)187.6 
Earnings per common share
Basic$0.61 $0.96 $0.56 $0.51 $0.21 (36.5)190.5 
Diluted$0.60 $0.95 $0.55 $0.51 $0.21 (36.8)185.7 
Weighted average shares outstanding
Basic46,138,609 45,906,268 45,780,794 45,634,741 45,377,965 
Diluted46,509,040 46,298,408 46,216,958 45,795,608 45,754,499 
4

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)
As of the quarter ended1Q 2026 Change vs.
1Q 20264Q 20253Q 20252Q 20251Q 20254Q 20251Q 2025
Assets%%
Cash and due from banks$816,135 $864,904 $892,445 $662,755 $744,263 (5.6)9.7 
Certificates of deposit with other banks250 250 250 250 250 — — 
Investment securities available-for-sale1,434,538 1,427,401 1,373,219 1,325,206 1,312,680 0.5 9.3 
Loans held for sale
435,313 420,055 360,693 350,791 367,955 3.6 18.3 
Loans and leases held for investment (1)
12,158,216 11,973,622 11,554,818 11,014,055 10,693,911 1.5 13.7 
Allowance for credit losses on loans and leases(193,279)(192,264)(185,700)(182,231)(190,184)(0.5)(1.6)
Net loans and leases11,964,937 11,781,358 11,369,118 10,831,824 10,503,727 1.6 13.9 
Premises and equipment, net235,329 240,203 241,140 246,493 259,113 (2.0)(9.2)
Foreclosed assets12,005 8,208 11,024 6,318 2,108 46.3 469.5 
Servicing assets64,677 63,155 62,491 60,359 56,911 2.4 13.6 
Other assets336,849 329,244 355,522 347,212 348,697 2.3 (3.4)
Total assets$15,300,033 $15,134,778 $14,665,902 $13,831,208 $13,595,704 1.1 12.5 
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing$510,917 $515,051 $494,019 $393,393 $386,108 (0.8)32.3 
Interest-bearing13,324,141 13,173,608 12,796,704 12,201,397 12,009,837 1.1 10.9 
Total deposits13,835,058 13,688,659 13,290,723 12,594,790 12,395,945 1.1 11.6 
Borrowings99,746 102,404 105,045 107,659 110,247 (2.6)(9.5)
Other liabilities83,468 89,609 67,585 61,494 58,065 (6.9)43.7 
Total liabilities14,018,272 13,880,672 13,463,353 12,763,943 12,564,257 1.0 11.6 
Shareholders’ equity
Preferred stock96,266 96,266 96,266 — — — 100.0 
Class A common stock (voting)392,258 388,389 383,288 377,953 370,513 1.0 5.9 
Class B common stock (non-voting)— — — — — — — 
Retained earnings836,444 809,885 770,820 746,450 724,215 3.3 15.5 
Accumulated other comprehensive loss(47,352)(44,672)(52,151)(61,514)(67,698)(6.0)30.1 
Total shareholders' equity attributed to Live Oak Bancshares, Inc.1,277,616 1,249,868 1,198,223 1,062,889 1,027,030 2.2 24.4 
Non-controlling interest4,145 4,238 4,326 4,376 4,417 (2.2)(6.2)
Total shareholders' equity1,281,761 1,254,106 1,202,549 1,067,265 1,031,447 2.2 24.3 
Total liabilities and shareholders’ equity$15,300,033 $15,134,778 $14,665,902 $13,831,208 $13,595,704 1.1 12.5 
(1)Includes $244.9 million, $260.6 million, $280.3 million, $303.8 million and $316.8 million loans measured at fair value for the quarters ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
5

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)
As of and for the three months ended
1Q 20264Q 20253Q 20252Q 20251Q 2025
Income Statement Data
Net income attributable to common shareholders$27,946 $44,116 $25,562 $23,428 $9,717 
Per Common Share
Net income, diluted$0.60 $0.95 $0.55 $0.51 $0.21 
Dividends declared - common0.03 0.03 0.03 0.03 0.03 
Book value per common share25.55 25.06 24.03 23.36 22.62 
Tangible book value per common share (1)
25.46 24.97 23.96 23.29 22.55 
Performance Ratios
Return on average assets (annualized)0.74 %1.19 %0.72 %0.68 %0.30 %
Return on average common equity (annualized)9.39 15.25 9.32 8.85 3.78 
Net interest margin3.27 3.38 3.33 3.28 3.20 
Efficiency ratio (1)
58.63 51.56 58.68 61.01 65.75 
Noninterest income to total revenue17.92 28.79 18.86 21.80 18.20 
Selected Loan Metrics
Loans and leases originated$1,368,311 $1,638,113 $1,648,711 $1,526,592 $1,396,223 
Outstanding balance of sold loans serviced5,943,787 5,599,724 5,563,363 5,321,284 4,949,962 
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)
1.62 %1.64 %1.65 %1.70 %1.83 %
Net charge-offs (3)
$18,585 $13,739 $16,816 $31,445 $6,774 
Net charge-offs to average loans and leases held for investment (2) (3)
0.63 %0.48 %0.61 %1.19 %0.27 %
Nonperforming loans and leases at historical cost (3)
Unguaranteed$116,791 $101,371 $76,887 $59,555 $99,907 
Guaranteed327,409 399,786 379,381 336,777 322,993 
Total444,200 501,157 456,268 396,332 422,900 
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)
0.98 %0.87 %0.68 %0.56 %0.96 %
Nonperforming loans at fair value (4)
Unguaranteed$6,884 $7,715 $6,775 $8,873 $9,938 
Guaranteed54,679 53,887 54,887 60,453 58,100 
Total61,563 61,602 61,662 69,326 68,038 
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)
2.81 %2.96 %2.42 %2.92 %3.14 %
Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)10.63 %10.53 %10.51 %10.67 %10.67 %
Tier 1 leverage capital (to average assets)8.47 8.48 8.57 7.90 8.03 
Notes to Quarterly Selected Financial Data
(1)See accompanying GAAP to Non-GAAP Reconciliation.
(2)Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3)Loans and leases at historical cost only (excludes loans measured at fair value).
(4)Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).
6

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)
Three Months Ended
March 31, 2026
Three Months Ended
December 31, 2025
Three Months Ended
March 31, 2025
Average BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks$729,938 $6,726 3.74 %$803,095 $8,124 4.01 %$581,267 $6,400 4.47 %
Investment securities1,492,023 13,009 3.54 1,465,824 12,679 3.43 1,379,797 11,089 3.26 
Loans held for sale514,501 9,792 7.72 420,809 8,240 7.77 407,953 8,612 8.56 
Loans and leases held for investment (1)
12,081,396 204,337 6.86 11,777,219 210,612 7.09 10,388,872 187,004 7.30 
Total interest-earning assets14,817,858 233,864 6.40 14,466,947 239,655 6.57 12,757,889 213,105 6.77 
Less: Allowance for credit losses on loans and leases(190,522)(186,252)(165,320)
Noninterest-earning assets547,970 546,969 534,133 
Total assets$15,175,306 $14,827,664 $13,126,702 
Interest-bearing liabilities:
Savings$6,910,397 $55,420 3.25 %$6,833,148 $57,668 3.35 %$5,540,147 $51,604 3.78 %
Certificates of deposit5,730,803 53,337 3.77 5,498,643 52,888 3.82 5,563,004 55,235 4.03 
Other interest-bearing deposits579,330 4,090 2.86 559,101 4,323 3.07 478,399 4,049 3.43 
Total deposits13,220,530 112,847 3.46 12,890,892 114,879 3.54 11,581,550 110,888 3.88 
Borrowings103,329 1,617 6.35 104,219 1,656 6.30 111,919 1,685 6.11 
Total interest-bearing liabilities13,323,859 114,464 3.48 12,995,111 116,535 3.56 11,693,469 112,573 3.90 
Noninterest-bearing deposits491,301 492,501 342,482 
Noninterest-bearing liabilities69,596 82,684 58,739 
Shareholders' equity1,286,313 1,253,043 1,027,547 
Non-controlling interest4,237 4,325 4,465 
Total liabilities and shareholders' equity$15,175,306 $14,827,664 $13,126,702 
Net interest income and interest rate spread$119,400 2.92 %$123,120 3.01 %$100,532 2.87 %
Net interest margin3.27 3.38 3.20 
Ratio of average interest-earning assets to average interest-bearing liabilities111.21 %111.33 %109.10 %
(1)Average loan and lease balances include non-accruing loans and leases.
7

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)
As of and for the three months ended
1Q 20264Q 20253Q 20252Q 20251Q 2025
Total shareholders’ equity$1,281,761 $1,254,106 $1,202,549 $1,067,265 $1,031,447 
Less:
Preferred stock96,266 96,266 96,266 — — 
Non-controlling interest4,145 4,238 4,326 — — 
Total common shareholders' equity$1,181,350 $1,153,602 $1,101,957 $1,067,265 $1,031,447 
Less:
Goodwill1,797 1,797 1,797 1,797 1,797 
Other intangible assets2,089 2,165 1,453 1,491 1,529 
Tangible common shareholders’ equity (a)$1,177,464 $1,149,640 $1,098,707 $1,063,977 $1,028,121 
Shares outstanding (c)46,240,691 46,032,402 45,855,739 45,686,081 45,589,633 
Total assets$15,300,033 $15,134,778 $14,665,902 $13,831,208 $13,595,704 
Less:
Goodwill1,797 1,797 1,797 1,797 1,797 
Other intangible assets2,089 2,165 1,453 1,491 1,529 
Tangible assets (b)$15,296,147 $15,130,816 $14,662,652 $13,827,920 $13,592,378 
Tangible common shareholders’ equity to tangible assets (a/b)7.70 %7.60 %7.49 %7.69 %7.56 %
Tangible book value per common share (a/c)$25.46 $24.97 $23.96 $23.29 $22.55 
Efficiency ratio:
Noninterest expense (d)$85,293 $89,153 $83,516 $85,222 $80,807 
Net interest income119,400 123,120 115,485 109,221 100,532 
Noninterest income26,074 49,787 26,845 30,455 22,371 
Total revenue (e)$145,474 $172,907 $142,330 $139,676 $122,903 
Efficiency ratio (d/e)58.63 %51.56 %58.68 %61.01 %65.75 %
Pre-provision net revenue (e-d)$60,181 $83,754 $58,814 $54,454 $42,096 
This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.
8

Source: View Original Filing on SEC EDGAR

FAQ

How did Live Oak Bancshares (LOB) perform financially in Q1 2026?

Live Oak Bancshares generated net income attributable to common shareholders of $27.9 million, or $0.60 per diluted share, in Q1 2026. This was a large increase versus Q1 2025, but down from Q4 2025, which included sizable one-time investment gains.

What happened to Live Oak Bancshares’ revenue in the first quarter of 2026?

Total revenue was $145.5 million in Q1 2026, down 15.9% from Q4 2025 but up 18.4% year over year. The quarterly decline mainly reflects a $24.1 million Apiture sale gain and a $9.0 million investment gain recorded in Q4 2025.

How did loans and deposits at Live Oak Bancshares change in Q1 2026?

Loan and lease production reached $1.37 billion, with total loans and leases of $12.59 billion at quarter-end. Total deposits grew to $13.84 billion, increasing 11.6% from Q1 2025. These figures indicate continued franchise and balance sheet growth.

What were Live Oak Bancshares’ key profitability and margin metrics in Q1 2026?

Return on average assets was 0.74% and return on average common equity was 9.39% in Q1 2026. Net interest margin was 3.27%, slightly lower than Q4 2025’s 3.38% but higher than 3.20% in Q1 2025, indicating modest margin improvement year over year.

How did Live Oak Bancshares’ credit quality and provisioning look in Q1 2026?

Provision for credit losses was $20.1 million, down 8.0% from Q4 2025 and 30.6% from Q1 2025. The allowance for credit losses to loans and leases held for investment was 1.62%. Net charge-offs were $18.6 million, or 0.63% of average loans and leases annualized.

What capital position did Live Oak Bancshares report for Q1 2026?

Common equity tier 1 capital to risk-weighted assets was 10.63% in Q1 2026, essentially in line with prior periods. Tangible common shareholders’ equity to tangible assets was 7.70%, and tangible book value per common share was $25.46, up from $22.55 a year earlier.

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