WILMINGTON, N.C., July 23, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported second quarter of 2025 net income attributable to the Company of $23.4 million, or $0.51 per diluted share.

Live Oak’s performance in the quarter, compared to the first quarter of 2025, includes these notable items:

  • Record second quarter production of $1.53 billion accompanied by strong deposit growth of $198.8 million, with total assets growing by 1.7% to $13.83 billion
  • Net interest income increased 8.6% and net interest margin increased eight basis points from 3.20% to 3.28%
  • 14.0% increase in revenue and 6.3% increase in noninterest expenses generated 29.4% increase in pre-provision net revenue 1
  • Provision expense for credit losses of $23.3 million, a decrease of $5.7 million, driven by moderating credit trends, loan growth, and the current macroeconomic environment

“Live Oak Bank delivered an outstanding quarter in Q2, driven by excellent growth, healthy revenue, and lower provision expense,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We remain focused on supporting our nation’s entrepreneurs as they continue to navigate a backdrop of uncertainty while also providing the service, technology and financial guidance they need to succeed.”

Conference Call

Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, July 24, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 25229. 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.

Second Quarter 2025 Key Measures

(Dollars in thousands, except per share data) Increase (Decrease)
2Q 2025 1Q 2025 Dollars Percent 2Q 2024
Total revenue (1) $ 143,747 $ 126,113 $ 17,634 14.0 % $ 125,479
Total noninterest expense 89,293 84,017 5,276 6.3 77,656
Income before taxes 31,202 13,132 18,070 137.6 36,058
Effective tax rate 25.0 % 26.4 % n/a n/a 25.2 %
Net income attributable to Live Oak Bancshares, Inc. $ 23,428 $ 9,717 $ 13,711 141.1 % $ 26,963
Diluted earnings per share 0.51 0.21 0.30 142.9 0.59
Loan and lease production:
Loans and leases originated $ 1,526,592 $ 1,396,223 $ 130,369 9.3 % $ 1,171,141
% Fully funded 39.7 % 46.0 % n/a n/a 38.2 %
Total loans and leases: $ 11,364,846 $ 11,061,866 $ 302,980 2.7 % $ 9,535,766
Total assets: 13,831,208 13,595,704 235,504 1.7 11,868,570
Total deposits: 12,594,790 12,395,945 198,845 1.6 10,707,031


(1) Total revenue consists of net interest income and total noninterest income.

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site ( http://www.sec.gov ). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank .

Contacts:

Walter J. Phifer | CFO | Investor Relations | 910.202.6926
Claire Parker | Corporate Communications | Media Relations | 910.597.1592

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

Three Months Ended 2Q 2025 Change vs.
2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2025 2Q 2024
Interest income % %
Loans and fees on loans $ 204,513 $ 195,616 $ 194,821 $ 192,170 $ 181,840 4.5 12.5
Investment securities, taxable 11,648 11,089 10,490 9,750 9,219 5.0 26.3
Other interest earning assets 8,123 6,400 7,257 7,016 7,389 26.9 9.9
Total interest income 224,284 213,105 212,568 208,936 198,448 5.2 13.0
Interest expense
Deposits 113,380 110,888 113,357 110,174 105,358 2.2 7.6
Borrowings 1,683 1,685 1,737 1,762 1,770 (0.1 ) (4.9 )
Total interest expense 115,063 112,573 115,094 111,936 107,128 2.2 7.4
Net interest income 109,221 100,532 97,474 97,000 91,320 8.6 19.6
Provision for credit losses 23,252 28,964 33,581 34,502 11,765 (19.7 ) 97.6
Net interest income after provision for credit losses 85,969 71,568 63,893 62,498 79,555 20.1 8.1
Noninterest income
Loan servicing revenue 8,565 8,298 8,524 8,040 7,347 3.2 16.6
Loan servicing asset revaluation (3,057 ) (4,728 ) (2,326 ) (4,207 ) (2,878 ) 35.3 (6.2 )
Net gains on sales of loans 21,641 18,648 18,356 16,646 14,395 16.0 50.3
Net gain (loss) on loans accounted for under the fair value option 1,082 (1,034 ) 195 2,255 172 204.6 529.1
Equity method investments (loss) income (2,716 ) (2,239 ) (2,739 ) (1,393 ) (1,767 ) (21.3 ) (53.7 )
Equity security investments gains, net 1,004 20 12 909 161 4,920.0 523.6
Lease income 3,103 2,573 2,456 2,424 2,423 20.6 28.1
Management fee income — — — 1,116 3,271 — (100.0 )
Other noninterest income 4,904 4,043 6,115 7,142 11,035 21.3 (55.6 )
Total noninterest income 34,526 25,581 30,593 32,932 34,159 35.0 1.1
Noninterest expense
Salaries and employee benefits 49,137 48,008 45,214 44,524 46,255 2.4 6.2
Travel expense 2,576 2,795 2,628 2,344 2,328 (7.8 ) 10.7
Professional services expense 2,874 3,024 2,797 3,287 3,061 (5.0 ) (6.1 )
Advertising and marketing expense 4,420 3,665 1,979 2,473 3,004 20.6 47.1
Occupancy expense 2,369 2,737 2,558 2,807 2,388 (13.4 ) (0.8 )
Technology expense 10,066 9,251 9,406 9,081 7,996 8.8 25.9
Equipment expense 3,685 3,745 3,769 3,472 3,511 (1.6 ) 5.0
Other loan origination and maintenance expense 4,190 4,585 4,812 4,872 3,659 (8.6 ) 14.5
Renewable energy tax credit investment impairment 270 — 1,172 115 170 100.0 58.8
FDIC insurance 3,545 3,551 3,053 1,933 2,649 (0.2 ) 33.8
Other expense 6,161 2,656 3,869 2,681 2,635 132.0 133.8
Total noninterest expense 89,293 84,017 81,257 77,589 77,656 6.3 15.0
Income before taxes 31,202 13,132 13,229 17,841 36,058 137.6 (13.5 )
Income tax expense 7,815 3,464 3,386 4,816 9,095 125.6 (14.1 )
Net income 23,387 9,668 9,843 13,025 26,963 141.9 (13.3 )
Net loss attributable to non-controlling interest 41 49 57 — — (16.3 ) 100.0
Net income attributable to Live Oak Bancshares, Inc. $ 23,428 $ 9,717 $ 9,900 $ 13,025 $ 26,963 141.1 (13.1 )
Earnings per share
Basic $ 0.51 $ 0.21 $ 0.22 $ 0.28 $ 0.60 142.9 (15.0 )
Diluted $ 0.51 $ 0.21 $ 0.22 $ 0.28 $ 0.59 142.9 (13.6 )
Weighted average shares outstanding
Basic 45,634,741 45,377,965 45,224,470 45,073,482 44,974,942
Diluted 45,795,608 45,754,499 46,157,979 45,953,947 45,525,082

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

As of the quarter ended 2Q 2025 Change vs.
2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2025 2Q 2024
Assets % %
Cash and due from banks $ 662,755 $ 744,263 $ 608,800 $ 666,585 $ 615,449 (11.0 ) 7.7
Certificates of deposit with other banks 250 250 250 250 250 — —
Investment securities available-for-sale 1,325,206 1,312,680 1,248,203 1,233,466 1,151,195 1.0 15.1
Loans held for sale 350,791 367,955 346,002 359,977 363,632 (4.7 ) (3.5 )
Loans and leases held for investment (1) 11,014,055 10,693,911 10,233,374 9,831,891 9,172,134 3.0 20.1
Allowance for credit losses on loans and leases (182,231 ) (190,184 ) (167,516 ) (168,737 ) (137,867 ) 4.2 (32.2 )
Net loans and leases 10,831,824 10,503,727 10,065,858 9,663,154 9,034,267 3.1 19.9
Premises and equipment, net 246,493 259,113 264,059 267,032 267,864 (4.9 ) (8.0 )
Foreclosed assets 6,318 2,108 1,944 8,015 8,015 199.7 (21.2 )
Servicing assets 60,359 56,911 56,144 52,553 51,528 6.1 17.1
Other assets 347,212 348,697 352,120 356,314 376,370 (0.4 ) (7.7 )
Total assets $ 13,831,208 $ 13,595,704 $ 12,943,380 $ 12,607,346 $ 11,868,570 1.7 16.5
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing $ 393,393 $ 386,108 $ 318,890 $ 258,844 $ 264,013 1.9 49.0
Interest-bearing 12,201,397 12,009,837 11,441,604 11,141,703 10,443,018 1.6 16.8
Total deposits 12,594,790 12,395,945 11,760,494 11,400,547 10,707,031 1.6 17.6
Borrowings 107,659 110,247 112,820 115,371 117,745 (2.3 ) (8.6 )
Other liabilities 61,494 58,065 66,570 83,672 82,745 5.9 (25.7 )
Total liabilities 12,763,943 12,564,257 11,939,884 11,599,590 10,907,521 1.6 17.0
Shareholders’ equity
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding — — — — — — —
Class A common stock (voting) 377,953 370,513 365,607 361,925 356,381 2.0 6.1
Class B common stock (non-voting) — — — — — — —
Retained earnings 746,450 724,215 715,767 707,026 695,172 3.1 7.4
Accumulated other comprehensive loss (61,514 ) (67,698 ) (82,344 ) (61,195 ) (90,504 ) 9.1 32.0
Total shareholders' equity attributed to Live Oak Bancshares, Inc. 1,062,889 1,027,030 999,030 1,007,756 961,049 3.5 10.6
Non-controlling interest 4,376 4,417 4,466 — — (0.9 ) 100.0
Total shareholders' equity 1,067,265 1,031,447 1,003,496 1,007,756 961,049 3.5 11.1
Total liabilities and shareholders’ equity $ 13,831,208 $ 13,595,704 $ 12,943,380 $ 12,607,346 $ 11,868,570 1.7 16.5


(1) Includes $303.8 million, $316.8 million, $328.7 million, $343.4 million and $363.0 million loans measured at fair value for the quarters ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.

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

Six Months Ended
June 30, 2025 June 30, 2024
Interest income
Loans and fees on loans $ 400,129 $ 357,850
Investment securities, taxable 22,737 18,173
Other interest earning assets 14,523 14,845
Total interest income 437,389 390,868
Interest expense
Deposits 224,268 207,356
Borrowings 3,368 2,081
Total interest expense 227,636 209,437
Net interest income 209,753 181,431
Provision for credit losses 52,216 28,129
Net interest income after provision for credit losses 157,537 153,302
Noninterest income
Loan servicing revenue 16,863 14,971
Loan servicing asset revaluation (7,785 ) (5,622 )
Net gains on sales of loans 40,289 25,897
Net gain (loss) on loans accounted for under the fair value option 48 (47 )
Equity method investments (loss) income (4,955 ) (6,789 )
Equity security investments gain (losses), net 1,024 (368 )
Lease income 5,676 4,876
Management fee income — 6,542
Other noninterest income 8,947 20,796
Total noninterest income 60,107 60,256
Noninterest expense
Salaries and employee benefits 97,145 93,530
Travel expense 5,371 4,766
Professional services expense 5,898 4,939
Advertising and marketing expense 8,085 6,696
Occupancy expense 5,106 4,635
Technology expense 19,317 15,719
Equipment expense 7,430 6,585
Other loan origination and maintenance expense 8,775 7,570
Renewable energy tax credit investment impairment (recovery) 270 (757 )
FDIC insurance 7,096 5,849
Other expense 8,817 5,861
Total noninterest expense 173,310 155,393
Income before taxes 44,334 58,165
Income tax expense 11,279 3,616
Net income 33,055 54,549
Net loss attributable to non-controlling interest 90 —
Net income attributable to Live Oak Bancshares, Inc. $ 33,145 $ 54,549
Earnings per share
Basic $ 0.72 $ 1.22
Diluted $ 0.72 $ 1.20
Weighted average shares outstanding
Basic 45,556,842 44,868,625
Diluted 45,825,543 45,583,146

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

As of and for the three months ended
2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024
Income Statement Data
Net income attributable to Live Oak Bancshares, Inc. $ 23,428 $ 9,717 $ 9,900 $ 13,025 $ 26,963
Per Common Share
Net income, diluted $ 0.51 $ 0.21 $ 0.22 $ 0.28 $ 0.59
Dividends declared 0.03 0.03 0.03 0.03 0.03
Book value 23.36 22.62 22.12 22.32 21.35
Tangible book value (1) 23.29 22.55 22.05 22.24 21.28
Performance Ratios
Return on average assets (annualized) 0.68 % 0.30 % 0.31 % 0.43 % 0.93 %
Return on average equity (annualized) 8.85 3.78 3.85 5.21 11.39
Net interest margin 3.28 3.20 3.15 3.33 3.28
Efficiency ratio (1) 62.12 66.62 63.45 59.72 61.89
Noninterest income to total revenue 24.02 20.28 23.89 25.35 27.22
Selected Loan Metrics
Loans and leases originated $ 1,526,592 $ 1,396,223 $ 1,421,118 $ 1,757,856 $ 1,171,141
Outstanding balance of sold loans serviced 5,321,284 4,949,962 4,715,895 4,452,750 4,292,857
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3) 1.70 % 1.83 % 1.69 % 1.78 % 1.57 %
Net charge-offs (3) $ 31,445 $ 6,774 $ 33,566 $ 1,710 $ 8,253
Net charge-offs to average loans and leases held for investment (2) (3) 1.19 % 0.27 % 1.39 % 0.08 % 0.38 %
Nonperforming loans and leases at historical cost (3)
Unguaranteed $ 59,555 $ 99,907 $ 81,412 $ 49,398 $ 37,340
Guaranteed 336,777 322,993 222,885 166,177 122,752
Total 396,332 422,900 304,297 215,575 160,092
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3) 0.56 % 0.96 % 0.82 % 0.52 % 0.42 %
Nonperforming loans at fair value (4)
Unguaranteed $ 8,873 $ 9,938 $ 9,115 $ 8,672 $ 9,590
Guaranteed 60,453 58,100 54,873 49,822 51,570
Total 69,326 68,038 63,988 58,494 61,160
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4) 2.92 % 3.14 % 2.77 % 2.53 % 2.64 %
Capital Ratios
Common equity tier 1 capital (to risk-weighted assets) 10.67 % 10.67 % 11.04 % 11.19 % 11.85 %
Tier 1 leverage capital (to average assets) 7.90 8.03 8.21 8.60 8.71

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
June 30, 2025 		Three Months Ended
March 31, 2025
Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks $ 727,715 $ 8,123 4.48 % $ 581,267 $ 6,400 4.47 %
Investment securities 1,408,942 11,648 3.32 1,379,797 11,089 3.26
Loans held for sale 381,531 8,008 8.42 407,953 8,612 8.56
Loans and leases held for investment (1) 10,843,303 196,505 7.27 10,388,872 187,004 7.30
Total interest-earning assets 13,361,491 224,284 6.73 12,757,889 213,105 6.77
Less: Allowance for credit losses on loans and leases (186,022 ) (165,320 )
Noninterest-earning assets 539,485 534,133
Total assets $ 13,714,954 $ 13,126,702
Interest-bearing liabilities:
Interest-bearing checking $ 350,978 $ 3,969 4.54 % $ 350,491 $ 3,929 4.55 %
Savings 6,241,053 56,529 3.63 5,540,147 51,604 3.78
Money market accounts 128,757 93 0.29 127,908 120 0.38
Certificates of deposit 5,392,494 52,789 3.93 5,563,004 55,235 4.03
Total deposits 12,113,282 113,380 3.75 11,581,550 110,888 3.88
Borrowings 109,463 1,683 6.17 111,919 1,685 6.11
Total interest-bearing liabilities 12,222,745 115,063 3.78 11,693,469 112,573 3.90
Noninterest-bearing deposits 375,503 342,482
Noninterest-bearing liabilities 53,717 58,739
Shareholders' equity 1,058,572 1,027,547
Non-controlling interest 4,417 4,465
Total liabilities and shareholders' equity $ 13,714,954 $ 13,126,702
Net interest income and interest rate spread $ 109,221 2.95 % $ 100,532 2.87 %
Net interest margin 3.28 3.20
Ratio of average interest-earning assets to average interest-bearing liabilities 109.32 % 109.10 %


(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
2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024
Total shareholders’ equity $ 1,067,265 $ 1,031,447 $ 1,003,496 $ 1,007,756 $ 961,049
Less:
Goodwill 1,797 1,797 1,797 1,797 1,797
Other intangible assets 1,491 1,529 1,568 1,606 1,644
Tangible shareholders’ equity (a) $ 1,063,977 $ 1,028,121 $ 1,000,131 $ 1,004,353 $ 957,608
Shares outstanding (c) 45,686,081 45,589,633 45,359,425 45,151,691 45,003,856
Total assets $ 13,831,208 $ 13,595,704 $ 12,943,380 $ 12,607,346 $ 11,868,570
Less:
Goodwill 1,797 1,797 1,797 1,797 1,797
Other intangible assets 1,491 1,529 1,568 1,606 1,644
Tangible assets (b) $ 13,827,920 $ 13,592,378 $ 12,940,015 $ 12,603,943 $ 11,865,129
Tangible shareholders’ equity to tangible assets (a/b) 7.69 % 7.56 % 7.73 % 7.97 % 8.07 %
Tangible book value per share (a/c) $ 23.29 $ 22.55 $ 22.05 $ 22.24 $ 21.28
Efficiency ratio:
Noninterest expense (d) $ 89,293 $ 84,017 $ 81,257 $ 77,589 $ 77,656
Net interest income 109,221 100,532 97,474 97,000 91,320
Noninterest income 34,526 25,581 30,593 32,932 34,159
Total revenue (e) $ 143,747 $ 126,113 $ 128,067 $ 129,932 $ 125,479
Efficiency ratio (d/e) 62.12 % 66.62 % 63.45 % 59.72 % 61.89 %
Pre-provision net revenue (e-d) $ 54,454 $ 42,096 $ 46,810 $ 52,343 $ 47,823

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.