Live Oak Bancshares, Inc. Reports First Quarter 2025 Results
Live Oak Bancshares (NYSE: LOB) reported Q1 2025 results with net income of $9.7 million, or $0.21 per diluted share. The quarter showed notable performance with:
- Record Q1 production of $1.40 billion
- Strong deposit growth of $635.5 million
- Total assets growing 5.0% to $13.60 billion
- Net interest income increase of 3.1%
- Net interest margin improvement from 3.15% to 3.20%
However, the bank faced challenges including:
- 1.5% decline in revenue
- 3.4% increase in noninterest expenses
- 10% decline in pre-provision net revenue
- $29.0 million provision expense for credit losses due to loan growth and challenging macroeconomic conditions
Live Oak Bancshares (NYSE: LOB) ha riportato i risultati del primo trimestre 2025 con un utile netto di 9,7 milioni di dollari, pari a 0,21 dollari per azione diluita. Il trimestre ha mostrato una performance notevole con:
- Produzione record nel primo trimestre di 1,40 miliardi di dollari
- Forte crescita dei depositi di 635,5 milioni di dollari
- Totale attivi in aumento del 5,0% a 13,60 miliardi di dollari
- Incremento del reddito netto da interessi del 3,1%
- Miglioramento del margine netto di interesse dal 3,15% al 3,20%
Tuttavia, la banca ha affrontato alcune sfide tra cui:
- Calo del 1,5% dei ricavi
- Aumento del 3,4% delle spese non da interessi
- Riduzione del 10% del reddito netto pre-accantonamenti
- Spese per accantonamenti per perdite su crediti pari a 29,0 milioni di dollari a causa della crescita dei prestiti e delle difficili condizioni macroeconomiche
Live Oak Bancshares (NYSE: LOB) reportó resultados del primer trimestre de 2025 con un ingreso neto de 9,7 millones de dólares, o 0,21 dólares por acción diluida. El trimestre mostró un desempeño destacado con:
- Producción récord en el primer trimestre de 1,40 mil millones de dólares
- Fuerte crecimiento de depósitos de 635,5 millones de dólares
- Activos totales creciendo un 5,0% hasta 13,60 mil millones de dólares
- Aumento del ingreso neto por intereses del 3,1%
- Mejora del margen neto de interés del 3,15% al 3,20%
Sin embargo, el banco enfrentó desafíos que incluyen:
- Disminución del 1,5% en ingresos
- Incremento del 3,4% en gastos no relacionados con intereses
- Caída del 10% en ingresos netos antes de provisiones
- Gastos por provisiones de 29,0 millones de dólares por pérdidas crediticias debido al crecimiento de préstamos y condiciones macroeconómicas difíciles
Live Oak Bancshares (NYSE: LOB)는 2025년 1분기 실적으로 970만 달러의 순이익, 희석 주당 0.21달러를 보고했습니다. 이번 분기는 다음과 같은 주목할 만한 성과를 보였습니다:
- 1분기 사상 최대 생산액 14억 달러
- 강력한 예금 증가 6억 3,550만 달러
- 총자산 5.0% 증가하여 136억 달러
- 순이자수익 3.1% 증가
- 순이자마진 3.15%에서 3.20%로 개선
하지만 은행은 다음과 같은 어려움도 겪었습니다:
- 수익 1.5% 감소
- 비이자 비용 3.4% 증가
- 충당 전 순수익 10% 감소
- 대출 증가와 어려운 거시경제 상황으로 인한 2,900만 달러의 신용손실 충당금 비용
Live Oak Bancshares (NYSE : LOB) a publié ses résultats du premier trimestre 2025 avec un bénéfice net de 9,7 millions de dollars, soit 0,21 dollar par action diluée. Le trimestre a présenté des performances remarquables avec :
- Production record au premier trimestre de 1,40 milliard de dollars
- Forte croissance des dépôts de 635,5 millions de dollars
- Total des actifs en hausse de 5,0 % à 13,60 milliards de dollars
- Augmentation du revenu net d’intérêts de 3,1 %
- Amélioration de la marge nette d’intérêt de 3,15 % à 3,20 %
Cependant, la banque a rencontré des défis tels que :
- Baisse des revenus de 1,5 %
- Augmentation des charges hors intérêts de 3,4 %
- Diminution de 10 % du revenu net avant provisions
- Charges de provision pour pertes sur crédits de 29,0 millions de dollars en raison de la croissance des prêts et des conditions macroéconomiques difficiles
Live Oak Bancshares (NYSE: LOB) meldete die Ergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 9,7 Millionen US-Dollar bzw. 0,21 US-Dollar je verwässerter Aktie. Das Quartal zeigte eine bemerkenswerte Leistung mit:
- Rekordproduktion im ersten Quartal von 1,40 Milliarden US-Dollar
- Starkes Einlagenwachstum von 635,5 Millionen US-Dollar
- Gesamtvermögen wuchs um 5,0 % auf 13,60 Milliarden US-Dollar
- Nettzinsüberschuss stieg um 3,1 %
- Verbesserung der Nettozinsmarge von 3,15 % auf 3,20 %
Allerdings sah sich die Bank auch Herausforderungen gegenüber:
- Rückgang der Einnahmen um 1,5 %
- Anstieg der nicht zinstragenden Aufwendungen um 3,4 %
- Rückgang des Nettoumsatzes vor Rückstellungen um 10 %
- Rückstellungsaufwand für Kreditausfälle in Höhe von 29,0 Millionen US-Dollar aufgrund von Kreditwachstum und schwierigen makroökonomischen Bedingungen
- Record Q1 loan production of $1.40 billion
- Strong deposit growth of $635.5 million (5.4% increase)
- Total assets grew by 5.0% to $13.60 billion
- Net interest margin improved by 5 basis points to 3.20%
- Net interest income increased by 3.1%
- Net income declined to $9.7 million from $27.6 million in Q1 2024
- Revenue decreased by 1.5% compared to previous quarter
- Noninterest expenses increased by 3.4%
- Pre-provision net revenue declined by 10%
- High provision expense of $29.0 million due to challenging macroeconomic conditions
Insights
Live Oak shows record loan production but falling profits as provisions spike amid economic headwinds straining small business borrowers.
Live Oak Bancshares delivered mixed Q1 2025 results that highlight both strengths and growing concerns. The bank reported net income of
On the positive side, the bank demonstrated impressive growth metrics with record first quarter loan production of
However, the financial performance reveals troubling trends beneath the growth story. Revenue declined
The bank's loan portfolio expanded
While management highlighted progress in non-interest bearing deposit growth and small dollar loan production initiatives, these positives are currently overshadowed by the significant deterioration in earnings and rising credit concerns in their small business loan portfolio.
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
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 by5.0% to$13.60 billion - Net interest income increased
3.1% and net interest margin increased 5 basis points from3.15% to3.20% 1.5% decline in revenue and3.4% increase in noninterest expenses generated10% 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:
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 | 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
| 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.
FAQ
What were Live Oak Bancshares (LOB) earnings per share in Q1 2025?
How much was Live Oak Bank's loan production in Q1 2025?
What was Live Oak Bancshares (LOB) deposit growth in Q1 2025?
How did Live Oak's net interest margin perform in Q1 2025?
What challenges did Live Oak Bank face in Q1 2025?
