WILMINGTON, N.C., April 23, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE:LOB) ("Live Oak" or "the Company") today reported first quarter of 2025 net income attributable to the Company of $9.7 million, or $0.21 per diluted share.

Live Oak's performance in the quarter compared to the fourth quarter of 2024, includes these notable items:

Record first quarter production of $1.40 billion accompanied by strong deposit growth of $635.5 million, with total assets growing by 5.0% to $13.60 billion
Net interest income increased 3.1% and net interest margin increased 5 basis points from 3.15% to 3.20%
1.5% decline in revenue and 3.4% increase in noninterest expenses generated 10% decline in pre-provision net revenue¹
Provision expense for credit losses of $29.0 million, principally driven by loan growth amid a challenging macroeconomic environment, where elevated interest rates and inflationary pressures placed financial strain on some small business borrowers
Two key initiatives saw positive momentum — non-interest bearing deposit growth and small dollar loan production

"Live Oak Bank demonstrated strong growth across our lending and deposit franchises in the first quarter, all while navigating the current small business credit cycle and a backdrop of economic uncertainty," said Live Oak Chairman and CEO James S. (Chip) Mahan III. "We have an unwavering dedication to small business and staying close to our customers in these turbulent times remains paramount. Small business is the backbone of America, and we continue to support our nation's entrepreneurs with the capital they need to create jobs, drive innovation, and serve their communities well."

Conference Call

Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, April 24, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 75855. 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.


First Quarter 2025 Key Measures

(Dollars in thousands, except per share data)							Increase (Decrease)
	1Q 2025			4Q 2024			Dollars			Percent		1Q 2024
Total revenue ⁽¹⁾	$	126,113		$	128,067		$	(1,954	)	(1.5	)%	$	116,208
Total noninterest expense		84,017			81,257			2,760		3.4			77,737
Income before taxes		13,132			13,229			(97	)	(0.7	)		22,107
Effective tax rate		26.4	%		25.6	%		n/a		n/a		(24.8		)%
Net income attributable to Live Oak Bancshares, Inc.	$	9,717		$	9,900		$	(183	)	(1.8	)%	$	27,586
Diluted earnings per share		0.21			0.22			(0.01	)	(5	)		0.60
Loan and lease production:
Loans and leases originated	$	1,396,223		$	1,421,118		$	(24,895	)	(1.8	)%	$	805,129
% Fully funded		46.0	%		42.4	%		n/a		n/a			43.8	%
Total loans and leases:	$	11,061,866		$	10,579,376		$	482,490		4.6	%	$	9,223,310
Total assets:		13,595,704			12,943,380			652,324		5.0			11,505,569
Total deposits:		12,395,945			11,760,494			635,451		5.4			10,383,361

(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:


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

	Three Months Ended															1Q 2025 Change vs.
	1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2024			4Q 2024		1Q 2024
Interest income																%		%
Loans and fees on loans	$	195,616		$	194,821		$	192,170		$	181,840		$	176,010		0.4		11.1
Investment securities, taxable		11,089			10,490			9,750			9,219			8,954		5.7		23.8
Other interest earning assets		6,400			7,257			7,016			7,389			7,456		(11.8	)	(14.2	)
Total interest income		213,105			212,568			208,936			198,448			192,420		0.3		10.7
Interest expense
Deposits		110,888			113,357			110,174			105,358			101,998		(2.2	)	8.7
Borrowings		1,685			1,737			1,762			1,770			311		(3.0	)	441.8
Total interest expense		112,573			115,094			111,936			107,128			102,309		(2.2	)	10.0
Net interest income		100,532			97,474			97,000			91,320			90,111		3.1		11.6
Provision for loan and lease credit losses		28,964			33,581			34,502			11,765			16,364		(13.7	)	77.0
Net interest income after provision for loan and lease credit losses		71,568			63,893			62,498			79,555			73,747		12.0		(3.0	)
Noninterest income
Loan servicing revenue		8,298			8,524			8,040			7,347			7,624		(2.7	)	8.8
Loan servicing asset revaluation		(4,728	)		(2,326	)		(4,207	)		(2,878	)		(2,744	)	(103.3	)	(72.3	)
Net gains on sales of loans		18,648			18,356			16,646			14,395			11,502		1.6		62.1
Net (loss) gain on loans accounted for under the fair value option		(1,034	)		195			2,255			172			(219	)	(630.3	)	(372.1	)
Equity method investments (loss) income		(2,239	)		(2,739	)		(1,393	)		(1,767	)		(5,022	)	18.3		55.4
Equity security investments (losses) gains, net		20			12			909			161			(529	)	66.7		(103.8	)
Lease income		2,573			2,456			2,424			2,423			2,453		4.8		4.9
Management fee income		—			—			1,116			3,271			3,271		—		(100.0	)
Other noninterest income		4,043			6,115			7,142			11,035			9,761		(33.9	)	(58.6	)
Total noninterest income		25,581			30,593			32,932			34,159			26,097		(16.4	)	(2.0	)
Noninterest expense
Salaries and employee benefits		48,008			45,214			44,524			46,255			47,275		6.2		1.6
Travel expense		2,795			2,628			2,344			2,328			2,438		6.4		14.6
Professional services expense		3,024			2,797			3,287			3,061			1,878		8.1		61.0
Advertising and marketing expense		3,665			1,979			2,473			3,004			3,692		85.2		(0.7	)
Occupancy expense		2,737			2,558			2,807			2,388			2,247		7.0		21.8
Technology expense		9,251			9,406			9,081			7,996			7,723		(1.6	)	19.8
Equipment expense		3,745			3,769			3,472			3,511			3,074		(0.6	)	21.8
Other loan origination and maintenance expense		4,585			4,812			4,872			3,659			3,911		(4.7	)	17.2
Renewable energy tax credit investment (recovery) impairment		—			1,172			115			170			(927	)	(100.0	)	(100.0	)
FDIC insurance		3,551			3,053			1,933			2,649			3,200		16.3		11.0
Other expense		2,656			3,869			2,681			2,635			3,226		(31.4	)	(17.7	)
Total noninterest expense		84,017			81,257			77,589			77,656			77,737		3.4		8.1
Income before taxes		13,132			13,229			17,841			36,058			22,107		(0.7	)	(40.6	)
Income tax expense		3,464			3,386			4,816			9,095			(5,479	)	2.3		(163.2	)
Net income		9,668			9,843			13,025			26,963			27,586		(1.8	)	(65.0	)
Net loss attributable to non-controlling interest		49			57			—			—			—		(14.0	)	100.0
Net income attributable to Live Oak Bancshares, Inc.	$	9,717		$	9,900		$	13,025		$	26,963		$	27,586		(1.8	)	(64.8	)
Earnings per share
Basic	$	0.21		$	0.22		$	0.28		$	0.60		$	0.62		(4.5	)	(66.1	)
Diluted	$	0.21		$	0.22		$	0.28		$	0.59		$	0.60		(4.5	)	(65.0	)
Weighted average shares outstanding
Basic		45,377,965			45,224,470			45,073,482			44,974,942			44,762,308
Diluted		45,754,499			46,157,979			45,953,947			45,525,082			45,641,210


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

	As of the quarter ended															1Q 2025 Change vs.
	1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2024			4Q 2024		1Q 2024
Assets																%		%
Cash and due from banks	$	744,263		$	608,800		$	666,585		$	615,449		$	597,394		22.3		24.6
Certificates of deposit with other banks		250			250			250			250			250		—		—
Investment securities available-for-sale		1,312,680			1,248,203			1,233,466			1,151,195			1,120,622		5.2		17.1
Loans held for sale		367,955			346,002			359,977			363,632			310,749		6.3		18.4
Loans and leases held for investment ⁽¹⁾		10,693,911			10,233,374			9,831,891			9,172,134			8,912,561		4.5		20.0
Allowance for credit losses on loans and leases		(190,184	)		(167,516	)		(168,737	)		(137,867	)		(139,041	)	(13.5	)	(36.8	)
Net loans and leases		10,503,727			10,065,858			9,663,154			9,034,267			8,773,520		4.4		19.7
Premises and equipment, net		259,113			264,059			267,032			267,864			258,071		(1.9	)	0.4
Foreclosed assets		2,108			1,944			8,015			8,015			8,561		8.4		(75.4	)
Servicing assets		56,911			56,144			52,553			51,528			49,343		1.4		15.3
Other assets		348,697			352,120			356,314			376,370			387,059		(1.0	)	(9.9	)
Total assets	$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570		$	11,505,569		5.0		18.2
Liabilities and shareholders' equity
*Liabilities*
Deposits:
Noninterest-bearing	$	386,108		$	318,890		$	258,844		$	264,013		$	226,668		21.1		70.3
Interest-bearing		12,009,837			11,441,604			11,141,703			10,443,018			10,156,693		5.0		18.2
Total deposits		12,395,945			11,760,494			11,400,547			10,707,031			10,383,361		5.4		19.4
Borrowings		110,247			112,820			115,371			117,745			120,242		(2.3	)	(8.3	)
Other liabilities		58,065			66,570			83,672			82,745			74,248		(12.8	)	(21.8	)
Total liabilities		12,564,257			11,939,884			11,599,590			10,907,521			10,577,851		5.2		18.8
*Shareholders' equity*
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—			—			—			—		—		—
Class A common stock (voting)		370,513			365,607			361,925			356,381			349,648		1.3		6.0
Class B common stock (non-voting)		—			—			—			—			—		—		—
Retained earnings		724,215			715,767			707,026			695,172			669,307		1.2		8.2
Accumulated other comprehensive loss		(67,698	)		(82,344	)		(61,195	)		(90,504	)		(91,237	)	17.8		25.8
Total shareholders' equity attributed to Live Oak Bancshares, Inc.		1,027,030			999,030			1,007,756			961,049			927,718		2.8		10.7
Non-controlling interest		4,417			4,466			—			—			—		(1.1	)	100.0
Total shareholders' equity		1,031,447			1,003,496			1,007,756			961,049			927,718		2.8		11.2
Total liabilities and shareholders' equity	$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570		$	11,505,569		5.0		18.2

(1) Includes $316.8 million, $328.7 million, $343.4 million, $363.0 million and $379.2 million measured at fair value for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024 respectively.


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

	As of and for the three months ended
	1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2024
Income Statement Data
Net income attributable to Live Oak Bancshares, Inc.	$	9,717		$	9,900		$	13,025		$	26,963		$	27,586
Per Common Share
Net income, diluted	$	0.21		$	0.22		$	0.28		$	0.59		$	0.60
Dividends declared		0.03			0.03			0.03			0.03			0.03
Book value		22.62			22.12			22.32			21.35			20.64
Tangible book value ⁽¹⁾		22.55			22.05			22.24			21.28			20.57
Performance Ratios
Return on average assets (annualized)		0.30	%		0.31	%		0.43	%		0.93	%		0.98	%
Return on average equity (annualized)		3.78			3.85			5.21			11.39			11.93
Net interest margin		3.20			3.15			3.33			3.28			3.33
Efficiency ratio ⁽¹⁾		66.62			63.45			59.72			61.89			66.89
Noninterest income to total revenue		20.28			23.89			25.35			27.22			22.46
Selected Loan Metrics
Loans and leases originated	$	1,396,223		$	1,421,118		$	1,757,856		$	1,171,141		$	805,129
Outstanding balance of sold loans serviced		4,949,962			4,715,895			4,452,750			4,292,857			4,329,097
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment ⁽³⁾		1.83	%		1.69	%		1.78	%		1.57	%		1.63	%
Net charge-offs ⁽³⁾	$	6,774		$	33,566		$	1,710		$	8,253		$	3,163
Net charge-offs to average loans and leases held for investment ^{(2) (3)}		0.27	%		1.39	%		0.08	%		0.38	%		0.15	%

Nonperforming loans and leases at historical cost ⁽³⁾
Unguaranteed	$	99,907		$	81,412		$	49,398		$	37,340		$	43,117
Guaranteed		322,993			222,885			166,177			122,752			105,351
Total		422,900			304,297			215,575			160,092			148,468
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment ⁽³⁾		0.96	%		0.82	%		0.52	%		0.42	%		0.51	%

Nonperforming loans at fair value ⁽⁴⁾
Unguaranteed	$	9,938		$	9,115		$	8,672		$	9,590		$	7,942
Guaranteed		58,100			54,873			49,822			51,570			47,620
Total		68,038			63,988			58,494			61,160			55,562
Unguaranteed nonperforming fair value loans to fair value loans held for investment ⁽⁴⁾		3.14	%		2.77	%		2.53	%		2.64	%		2.09	%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		10.70	%		11.04	%		11.19	%		11.85	%		11.89	%
Tier 1 leverage capital (to average assets)		8.03			8.21			8.60			8.71			8.69

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 March 31, 2025							Three Months Ended December 31, 2024
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	581,267		$	6,400	4.47	%	$	603,758		$	7,257	4.78	%
Investment securities		1,379,797			11,089	3.26			1,340,027			10,490	3.11
Loans held for sale		407,953			8,612	8.56			339,394			7,361	8.63
Loans and leases held for investment ⁽¹⁾		10,388,872			187,004	7.30			10,030,353			187,460	7.44
Total interest-earning assets		12,757,889			213,105	6.77			12,313,532			212,568	6.87
Less: Allowance for credit losses on loans and leases		(165,320	)						(155,498	)
Noninterest-earning assets		534,133							551,265
Total assets	$	13,126,702						$	12,709,299
Interest-bearing liabilities:
Interest-bearing checking	$	350,491		$	3,929	4.55	%	$	350,304		$	4,350	4.94	%
Savings		5,540,147			51,604	3.78			5,333,338			52,308	3.90
Money market accounts		127,908			120	0.38			138,021			176	0.51
Certificates of deposit		5,563,004			55,235	4.03			5,376,290			56,523	4.18
Total deposits		11,581,550			110,888	3.88			11,197,953			113,357	4.03
Borrowings		111,919			1,685	6.11			114,561			1,737	6.03
Total interest-bearing liabilities		11,693,469			112,573	3.90			11,312,514			115,094	4.05
Noninterest-bearing deposits		342,482							281,874
Noninterest-bearing liabilities		58,739							83,373
Shareholders' equity		1,027,547							1,028,426
Non-controlling interest		4,465							3,112
Total liabilities and shareholders' equity	$	13,126,702						$	12,709,299
Net interest income and interest rate spread				$	100,532	2.87	%				$	97,474	2.82	%
Net interest margin						3.20							3.15
Ratio of average interest-earning assets to average interest-bearing liabilities						109.10	%						108.85	%

(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
	1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2024
Total shareholders' equity	$	1,031,447		$	1,003,496		$	1,007,756		$	961,049		$	927,718
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,529			1,568			1,606			1,644			1,682
Tangible shareholders' equity (a)	$	1,028,121		$	1,000,131		$	1,004,353		$	957,608		$	924,239
Shares outstanding (c)		45,589,633			45,359,425			45,151,691			45,003,856			44,938,673
Total assets	$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570		$	11,505,569
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,529			1,568			1,606			1,644			1,682
Tangible assets (b)	$	13,592,378		$	12,940,015		$	12,603,943		$	11,865,129		$	11,502,090
Tangible shareholders' equity to tangible assets (a/b)		7.56	%		7.73	%		7.97	%		8.07	%		8.04	%
Tangible book value per share (a/c)	$	22.55		$	22.05		$	22.24		$	21.28		$	20.57
Efficiency ratio:
Noninterest expense (d)	$	84,017		$	81,257		$	77,589		$	77,656		$	77,737
Net interest income		100,532			97,474			97,000			91,320			90,111
Noninterest income		25,581			30,593			32,932			34,159			26,097
Total revenue (e)	$	126,113		$	128,067		$	129,932		$	125,479		$	116,208
Efficiency ratio (d/e)		66.62	%		63.45	%		59.72	%		61.89	%		66.89	%
Pre-provision net revenue (e-d)	$	42,096		$	46,810		$	52,343		$	47,823		$	38,471

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.

Live Oak Bancshares, Inc. Reports First Quarter 2025 Results