LOB: Live Oak offers $100M of 8.750% non-cumulative preferred stock
Live Oak prices $100M of 8.750% non-cumulative perpetual preferred at $25 per depositary share, settling Nov 12, 2026, for balance sheet…
What this filing says
Live Oak Bancshares is selling 4,000,000 depositary shares, each a 1/40th interest in its 8.750% Series B non-cumulative perpetual preferred stock, at $25 per depositary share. The offering is expected to settle November 12, 2026, with proceeds for general corporate purposes including supporting balance sheet growth at Live Oak Banking Company. For a common shareholder, this adds a senior claim ahead of common stock, and dividends are payable only if declared.
Key figures
- Aggregate liquidation amount
- $100,000,000
- Dividend rate
- 8.750% per annum
- Public offering price
- $25 per depositary share
- Net proceeds to issuer
- $96,850,000
- Overallotment option
- 600,000 additional depositary shares
- Earliest optional redemption
- December 15, 2031
Positive for shareholders
- Net proceeds are expected to strengthen the company's capital position.
- Dividends are a fixed 8.750% rate when declared.
Negative for shareholders
- Dividends are non-cumulative, so skipped payments are not owed later.
- The security is perpetual and is not insured by the FDIC or any government agency.
- Preferred holders rank ahead of common shareholders on claims.
Written by Quantisnow AI from this filing. Not financial advice.
Key terms
- Non-cumulative:
- Dividends not declared for a period are never paid later, so missed payments are lost.
- Depositary share:
- A fractional interest, here 1/40th, in one share of preferred stock, traded as a separate unit.
- Perpetual:
- The security has no maturity date and stays outstanding unless the company redeems it.
- Regulatory capital treatment event:
- A change in rules that would stop the preferred stock counting toward regulatory capital, which can trigger early redemption.
FAQ
How much is Live Oak Bancshares raising with this preferred stock offering?
The base offering is $100,000,000 across 4,000,000 depositary shares, with an overallotment option for up to 600,000 more. Net proceeds are stated as $96,850,000 before expenses.
When can Live Oak Bancshares redeem the Series B preferred stock?
The company may redeem it on any dividend payment date on or after December 15, 2031, subject to regulatory approval if required, or in whole within 90 days after a regulatory capital treatment event.
Are the Live Oak Series B depositary shares FDIC insured?
No. The filing states that neither the depositary shares nor the Series B preferred stock is a deposit or obligation of any bank subsidiary, and neither is insured by the FDIC or any other government agency.
Historical context for LOB
Across the 16 sessions after earlier LOB headlines, the stock closed higher 11 times and lower 5 times, with a median move of 1.8% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | LOB | SPY |
|---|---|---|---|
| Oct 22, 2026 | Live Oak Bancshares, Inc. Reports Third Quarter 2026 Results | +1.0% | -1.2% |
| Oct 19, 2026 | Live Oak Bank Named Nation's Top SBA 7(a) Lender | -1.3% | +0.4% |
| Oct 8, 2026 | Live Oak Bancshares, Inc. Announces Date of Third Quarter 2026 Financial Results | +0.9% | -0.4% |
| Sep 14, 2026 | Live Oak Bank Named Official Business Bank of UNCW Athletics | +0.4% | -0.4% |
| Jul 23, 2026 | Live Oak Bancshares, Inc. Reports Second Quarter 2026 Results | +3.9% | -1.2% |
| Jul 9, 2026 | Live Oak Bancshares, Inc. Announces Date of Second Quarter 2026 Financial Results | +2.4% | +0.8% |
- Market cap
- 30-day
- Sector
- Finance
- Industry
- Major Banks
- Listed since
- 2022
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