Live Oak Bancshares, Inc. Reports Second Quarter 2024 Results
Live Oak Bancshares (NYSE: LOB) reported Q2 2024 net income of $27.0 million, or $0.59 per diluted share.
Key metrics include:
- Total revenue: $125.5 million, up 8% YoY.
- Loan & lease originations: $1.17 billion, up 45.5% QoQ.
- Total deposits: $10.71 billion, up 3.1% QoQ.
- Net interest income: $91.3 million, up from $90.1 million in Q1 2024.
- Noninterest income: $34.2 million, up $8.1 million QoQ.
However, net income decreased by 2.3% from Q1 2024 due to higher net charge-offs and a lower net interest margin.
Live Oak remains focused on credit strength and specialized industries, expecting long-term growth.
Live Oak Bancshares (NYSE: LOB) ha riportato un utile netto per il Q2 2024 di 27,0 milioni di dollari, ovvero 0,59 dollari per azione diluita.
I principali indicatori includono:
- Ricavi totali: 125,5 milioni di dollari, con un incremento dell'8% rispetto all'anno precedente.
- Origini di prestiti e leasing: 1,17 miliardi di dollari, in aumento del 45,5% rispetto al trimestre precedente.
- Depositi totali: 10,71 miliardi di dollari, in crescita del 3,1% rispetto al trimestre precedente.
- Reddito da interessi netto: 91,3 milioni di dollari, in aumento rispetto ai 90,1 milioni di dollari del Q1 2024.
- Reddito non da interessi: 34,2 milioni di dollari, in aumento di 8,1 milioni di dollari rispetto al trimestre precedente.
Tuttavia, l'utile netto è diminuito del 2,3% rispetto al Q1 2024 a causa di maggiori svalutazioni nette e di un margine di interesse netto più basso.
Live Oak rimane concentrata sulla solidità creditizia e su settori specializzati, prevedendo una crescita a lungo termine.
Live Oak Bancshares (NYSE: LOB) reportó un ingreso neto en el Q2 2024 de 27,0 millones de dólares, o 0,59 dólares por acción diluída.
Los principales indicadores incluyen:
- Ingresos totales: 125,5 millones de dólares, un aumento del 8% interanual.
- Originaciones de préstamos y arrendamientos: 1,17 mil millones de dólares, un aumento del 45,5% trimestre a trimestre.
- Depósitos totales: 10,71 mil millones de dólares, un aumento del 3,1% trimestre a trimestre.
- Ingreso neto por intereses: 91,3 millones de dólares, un aumento respecto a los 90,1 millones de dólares del Q1 2024.
- Ingreso no por intereses: 34,2 millones de dólares, un incremento de 8,1 millones de dólares trimestre a trimestre.
Sin embargo, el ingreso neto disminuyó un 2,3% desde el Q1 2024 debido a mayores cancelaciones netas y a un margen de interés neto más bajo.
Live Oak se mantiene enfocada en la solidez crediticia y en industrias especializadas, esperando un crecimiento a largo plazo.
라이브 오크 뱅크셰어스 (NYSE: LOB)는 2024년 2분기 순이익으로 2천7백만 달러, 즉 희석 주당 0.59 달러를 보고했습니다.
주요 지표는 다음과 같습니다:
- 총 수익: 1억 2천 5백 50만 달러, 전년 대비 8% 증가.
- 대출 및 리스 발행: 11억 7천만 달러, 전분기 대비 45.5% 증가.
- 총 예금: 107억 1천만 달러, 전분기 대비 3.1% 증가.
- 순이자 수익: 9천 1백 30만 달러, 2024년 1분기 9천 1백만 달러에서 증가.
- 비이자 수익: 3천 4백 20만 달러, 전분기 대비 8.1백만 달러 증가.
그러나 순이익은 순 충당금 증가와 낮은 순이자 마진으로 인해 2024년 1분기 대비 2.3% 감소했습니다.
라이브 오크는 신용 강도와 전문 산업에 집중하며 장기적인 성장을 기대하고 있습니다.
Live Oak Bancshares (NYSE: LOB) a annoncé un revenu net pour le 2ème trimestre 2024 de 27,0 millions de dollars, soit 0,59 dollar par action diluée.
Les indicateurs clés comprennent :
- Revenus totaux : 125,5 millions de dollars, en hausse de 8 % par rapport à l'année précédente.
- Origines de prêts et de baux : 1,17 milliard de dollars, en hausse de 45,5 % par rapport au trimestre précédent.
- Dépôts totaux : 10,71 milliards de dollars, en hausse de 3,1 % par rapport au trimestre précédent.
- Revenu net d'intérêts : 91,3 millions de dollars, en hausse par rapport à 90,1 millions de dollars au T1 2024.
- Revenu non d'intérêts : 34,2 millions de dollars, en hausse de 8,1 millions de dollars par rapport au trimestre précédent.
Cependant, le revenu net a diminué de 2,3 % par rapport au T1 2024 en raison d'une augmentation des charges nettes et d'une marge d'intérêt nette plus faible.
Live Oak reste concentré sur la solidité du crédit et des secteurs spécialisés, s'attendant à une croissance à long terme.
Live Oak Bancshares (NYSE: LOB) meldete einen Nettoertrag für das 2. Quartal 2024 von 27,0 Millionen Dollar, oder 0,59 Dollar pro verwässerter Aktie.
Wichtige Kennzahlen sind:
- Gesamtumsatz: 125,5 Millionen Dollar, ein Anstieg von 8 % im Vergleich zum Vorjahr.
- Darlehens- und Leasingoriginationen: 1,17 Milliarden Dollar, ein Anstieg von 45,5 % im Vergleich zum Vorquartal.
- Gesamteinlagen: 10,71 Milliarden Dollar, ein Anstieg von 3,1 % im Vergleich zum Vorquartal.
- Nettozinsertrag: 91,3 Millionen Dollar, ein Anstieg von 90,1 Millionen Dollar im Q1 2024.
- Nichtzinsüberschuss: 34,2 Millionen Dollar, ein Anstieg von 8,1 Millionen Dollar im Vergleich zum Vorquartal.
Der Nettoertrag sank jedoch um 2,3 % im Vergleich zum Q1 2024, bedingt durch höhere Nettoabschreibungen und eine niedrigere Nettozinsmarge.
Live Oak bleibt auf die Kreditstärke und spezialisierte Branchen fokussiert und erwartet ein langfristiges Wachstum.
- Total revenue increased by 8% YoY to $125.5 million.
- Loan and lease originations rose by 45.5% QoQ to $1.17 billion.
- Total deposits increased by 3.1% QoQ to $10.71 billion.
- Net interest income improved to $91.3 million from $90.1 million in Q1 2024.
- Noninterest income increased by $8.1 million QoQ to $34.2 million.
- Net income decreased by 2.3% QoQ to $27.0 million.
- Net charge-offs rose significantly to $8.3 million from $3.2 million in Q1 2024.
- Net interest margin decreased by five basis points QoQ to 3.28%.
Insights
Live Oak Bancshares has delivered a solid second quarter performance, with notable growth across key financial metrics. The company reported
Several key points stand out:
- Total revenue increased by
8.0% quarter-over-quarter to$125.5 million , driven by growth in both net interest income and noninterest income. - The loan and lease portfolio grew to
$9.54 billion , up3.4% from the previous quarter and14.1% year-over-year, indicating strong origination volumes. - Deposits increased to
$10.71 billion , up3.1% from the previous quarter, supporting loan growth and maintaining liquidity. - The net interest margin slightly decreased to
3.28% from3.33% in the previous quarter, primarily due to increased cost of funds.
The company's focus on credit strength and specialized industries appears to be paying off, as evidenced by the growth in loans and deposits. However, the slight compression in net interest margin and increase in net charge-offs warrant attention. The effective tax rate normalized this quarter after benefiting from investment tax credits in Q1.
Overall, Live Oak's performance suggests a robust business model capable of generating growth even in a challenging economic environment. Investors should monitor the company's ability to maintain asset quality and manage interest rate pressures going forward.
From a credit risk perspective, Live Oak Bancshares' Q2 2024 results present a mixed picture. While the company continues to grow its loan portfolio, there are some concerning trends in asset quality that merit closer scrutiny.
On the positive side, the total loan and lease portfolio grew to
However, there are some worrying signs:
- Net charge-offs increased significantly to
$8.3 million , up from$3.2 million in Q1 2024 and$1.2 million in Q2 2023. As a percentage of average held for investment loans, net charge-offs rose to0.38% annualized, compared to0.15% in Q1 and0.06% a year ago. - While unguaranteed nonperforming loans decreased slightly to
$37.3 million , they still represent0.42% of loans held for investment at historical cost. - The allowance for credit losses on loans and leases remained relatively stable at
$137.9 million , but as a percentage of total loans held for investment at historical cost, it decreased slightly to1.57% from1.63% in Q1.
The increase in net charge-offs is particularly concerning, as it could indicate deteriorating credit quality in the loan portfolio. While the current level is not alarming, the trend is worth monitoring closely in the coming quarters.
The decrease in the allowance for credit losses as a percentage of loans, despite the increase in charge-offs, suggests that management may be optimistic about future credit performance. However, this could leave the bank more exposed if economic conditions worsen.
Investors should pay close attention to these credit metrics in future quarters to ensure that Live Oak's rapid loan growth is not coming at the expense of asset quality.
WILMINGTON, N.C., July 24, 2024 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported second quarter of 2024 net income of
“Live Oak delivered a solid quarter with growth in loans, deposits and revenue as we continue our mission to serve small businesses across the country,” said Live Oak Chairman and Chief Executive Officer James S. (Chip) Mahan III. “The strength of our portfolio is due to the quality of the entrepreneurs we serve. Our focus on credit strength, specialized industries and deep expertise continues to demonstrate the power of our franchise, and we are confident in the long-term opportunities ahead.”
Second Quarter 2024 Key Measures
| (Dollars in thousands, except per share data) | Increase (Decrease) | ||||||||||||||||||
| 2Q 2024 | 1Q 2024 | Dollars | Percent | 2Q 2023 | |||||||||||||||
| Total revenue (1) | $ | 125,479 | $ | 116,208 | $ | 9,271 | 8.0 | % | $ | 108,458 | |||||||||
| Total noninterest expense | 77,656 | 77,737 | (81 | ) | (0.1) | 76,457 | |||||||||||||
| Income before taxes | 36,058 | 22,107 | 13,951 | 63.1 | 18,973 | ||||||||||||||
| Effective tax rate | 25.2 | % | (24.8) | % | n/a | n/a | 7.5 | % | |||||||||||
| Net income | $ | 26,963 | $ | 27,586 | $ | (623 | ) | (2.3) | % | $ | 17,544 | ||||||||
| Diluted earnings per share | 0.59 | 0.60 | (0.01 | ) | (1.7) | 0.39 | |||||||||||||
| Loan and lease production: | |||||||||||||||||||
| Loans and leases originated | $ | 1,171,141 | $ | 805,129 | $ | 366,012 | 45.5 | % | $ | 861,033 | |||||||||
| % Fully funded | 38.2 | % | 43.8 | % | n/a | n/a | 49.4 | % | |||||||||||
| Total loans and leases: | $ | 9,535,766 | $ | 9,223,310 | $ | 312,456 | 3.4 | % | $ | 8,360,174 | |||||||||
| Total assets: | 11,868,570 | 11,505,569 | 363,001 | 3.2 | 10,819,196 | ||||||||||||||
| Total deposits: | 10,707,031 | 10,383,361 | 323,670 | 3.1 | 9,879,111 | ||||||||||||||
(1) Total revenue consists of net interest income and total noninterest income.
Loans and Leases
As of June 30, 2024, the total loan and lease portfolio was
The total loan and lease portfolio at June 30, 2024, and March 31, 2024, was comprised of
Loan and lease originations totaled
Deposits
Total deposits increased to
Average total interest-bearing deposits for the second quarter of 2024 increased
Borrowings
Borrowings totaled
Net Interest Income
Net interest income for the second quarter of 2024 was
The increase in net interest income for the second quarter of 2024 compared to the second quarter of 2023 was driven by growth in average loans and leases held for investment. Partially mitigating this increase was a decrease in the net interest margin by one basis point arising from an increase in deposits and borrowings, combined with the increase in average cost of funds, outpacing the increase in average yield on interest-earning assets.
Noninterest Income
Noninterest income for the second quarter of 2024 was
Net gains on sales of loans was
Equity method investment losses totaled
Other noninterest income for the second quarter of 2024 totaled
Noninterest Expense
Noninterest expense for the second quarter of 2024 totaled
Asset Quality
During the second quarter of 2024, the Company recognized net charge-offs for loans carried at historical cost of
Unguaranteed nonperforming (nonaccrual) loans and leases, excluding
Provision for Credit Losses
The provision for credit losses for the second quarter of 2024 totaled
The allowance for credit losses on loans and leases totaled
Income Tax
Income tax expense (benefit) and related effective tax rate was
Conference Call
Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, July 25, 2024, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 54806566. 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.: 888.259.6580
International: +1 416.764.8624
Pass Code: None Required
Live Webcast Log-In
Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration
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 global health crises and pandemics, such as the Coronavirus Disease 2019 (COVID-19) pandemic, 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; 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; 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.liveoakbank.com.
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 2024 Change vs. | ||||||||||||||||||||||||||
| 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2024 | 2Q 2023 | |||||||||||||||||||||
| Interest income | % | % | |||||||||||||||||||||||||
| Loans and fees on loans | $ | 181,840 | $ | 176,010 | $ | 169,531 | $ | 162,722 | $ | 152,362 | 3.3 | 19.3 | |||||||||||||||
| Investment securities, taxable | 9,219 | 8,954 | 8,746 | 8,701 | 8,503 | 3.0 | 8.4 | ||||||||||||||||||||
| Other interest earning assets | 7,389 | 7,456 | 8,259 | 9,188 | 8,847 | (0.9 | ) | (16.5 | ) | ||||||||||||||||||
| Total interest income | 198,448 | 192,420 | 186,536 | 180,611 | 169,712 | 3.1 | 16.9 | ||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||
| Deposits | 105,358 | 101,998 | 96,695 | 90,914 | 85,003 | 3.3 | 23.9 | ||||||||||||||||||||
| Borrowings | 1,770 | 311 | 265 | 287 | 407 | 469.1 | 334.9 | ||||||||||||||||||||
| Total interest expense | 107,128 | 102,309 | 96,960 | 91,201 | 85,410 | 4.7 | 25.4 | ||||||||||||||||||||
| Net interest income | 91,320 | 90,111 | 89,576 | 89,410 | 84,302 | 1.3 | 8.3 | ||||||||||||||||||||
| Provision for credit losses | 11,765 | 16,364 | 8,995 | 10,279 | 13,028 | (28.1 | ) | (9.7 | ) | ||||||||||||||||||
| Net interest income after provision for credit losses | 79,555 | 73,747 | 80,581 | 79,131 | 71,274 | 7.9 | 11.6 | ||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||
| Loan servicing revenue | 7,347 | 7,624 | 7,342 | 6,990 | 6,687 | (3.6 | ) | 9.9 | |||||||||||||||||||
| Loan servicing asset revaluation | (2,878 | ) | (2,744 | ) | (3,974 | ) | 11,335 | (2,831 | ) | (4.9 | ) | (1.7 | ) | ||||||||||||||
| Net gains on sales of loans | 14,395 | 11,502 | 12,891 | 12,675 | 10,804 | 25.2 | 33.2 | ||||||||||||||||||||
| Net gain (loss) on loans accounted for under the fair value option | 172 | (219 | ) | (170 | ) | (568 | ) | 1,728 | 178.5 | (90.0 | ) | ||||||||||||||||
| Equity method investments (loss) income | (1,767 | ) | (5,022 | ) | 47 | (1,034 | ) | (2,055 | ) | 64.8 | 14.0 | ||||||||||||||||
| Equity security investments gains (losses), net | 161 | (529 | ) | (384 | ) | (783 | ) | 121 | 130.4 | 33.1 | |||||||||||||||||
| Lease income | 2,423 | 2,453 | 2,439 | 2,498 | 2,535 | (1.2 | ) | (4.4 | ) | ||||||||||||||||||
| Management fee income | 3,271 | 3,271 | 3,309 | 3,277 | 3,266 | — | 0.2 | ||||||||||||||||||||
| Other noninterest income | 11,035 | 9,761 | 8,607 | 3,501 | 3,901 | 13.1 | 182.9 | ||||||||||||||||||||
| Total noninterest income | 34,159 | 26,097 | 30,107 | 37,891 | 24,156 | 30.9 | 41.4 | ||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||
| Salaries and employee benefits | 46,255 | 47,275 | 44,274 | 42,947 | 43,066 | (2.2 | ) | 7.4 | |||||||||||||||||||
| Travel expense | 2,328 | 2,438 | 1,544 | 2,197 | 2,770 | (4.5 | ) | (16.0 | ) | ||||||||||||||||||
| Professional services expense | 3,061 | 1,878 | 3,052 | 1,762 | 1,996 | 63.0 | 53.4 | ||||||||||||||||||||
| Advertising and marketing expense | 3,004 | 3,692 | 2,501 | 3,446 | 3,009 | (18.6 | ) | (0.2 | ) | ||||||||||||||||||
| Occupancy expense | 2,388 | 2,247 | 2,231 | 2,129 | 2,205 | 6.3 | 8.3 | ||||||||||||||||||||
| Technology expense | 7,996 | 7,723 | 8,402 | 7,722 | 8,005 | 3.5 | (0.1 | ) | |||||||||||||||||||
| Equipment expense | 3,511 | 3,074 | 3,480 | 3,676 | 4,023 | 14.2 | (12.7 | ) | |||||||||||||||||||
| Other loan origination and maintenance expense | 3,659 | 3,911 | 3,937 | 3,498 | 3,442 | (6.4 | ) | 6.3 | |||||||||||||||||||
| Renewable energy tax credit investment impairment (recovery) | 170 | (927 | ) | 14,575 | — | — | 118.3 | 100.0 | |||||||||||||||||||
| FDIC insurance | 2,649 | 3,200 | 4,091 | 4,115 | 5,061 | (17.2 | ) | (47.7 | ) | ||||||||||||||||||
| Other expense | 2,635 | 3,226 | 5,117 | 2,770 | 2,880 | (18.3 | ) | (8.5 | ) | ||||||||||||||||||
| Total noninterest expense | 77,656 | 77,737 | 93,204 | 74,262 | 76,457 | (0.1 | ) | 1.6 | |||||||||||||||||||
| Income before taxes | 36,058 | 22,107 | 17,484 | 42,760 | 18,973 | 63.1 | 90.0 | ||||||||||||||||||||
| Income tax expense (benefit) | 9,095 | (5,479 | ) | 1,321 | 2,967 | 1,429 | 266.0 | 536.5 | |||||||||||||||||||
| Net income | $ | 26,963 | $ | 27,586 | $ | 16,163 | $ | 39,793 | $ | 17,544 | (2.3 | ) | 53.7 | ||||||||||||||
| Earnings per share | |||||||||||||||||||||||||||
| Basic | $ | 0.60 | $ | 0.62 | $ | 0.36 | $ | 0.89 | $ | 0.40 | (3.2 | ) | 50.0 | ||||||||||||||
| Diluted | $ | 0.59 | $ | 0.60 | $ | 0.36 | $ | 0.88 | $ | 0.39 | (1.7 | ) | 51.3 | ||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||||||
| Basic | 44,974,942 | 44,762,308 | 44,516,646 | 44,408,997 | 44,327,474 | ||||||||||||||||||||||
| Diluted | 45,525,082 | 45,641,210 | 45,306,506 | 45,268,745 | 44,835,089 | ||||||||||||||||||||||
Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)
| As of the quarter ended | 2Q 2024 Change vs. | ||||||||||||||||||||||||||
| 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2024 | 2Q 2023 | |||||||||||||||||||||
| Assets | % | % | |||||||||||||||||||||||||
| Cash and due from banks | $ | 615,449 | $ | 597,394 | $ | 582,540 | $ | 534,774 | $ | 808,131 | 3.0 | (23.8 | ) | ||||||||||||||
| Certificates of deposit with other banks | 250 | 250 | 250 | 3,750 | 4,000 | — | (93.8 | ) | |||||||||||||||||||
| Investment securities available-for-sale | 1,151,195 | 1,120,622 | 1,126,160 | 1,099,878 | 1,133,146 | 2.7 | 1.6 | ||||||||||||||||||||
| Loans held for sale | 363,632 | 310,749 | 387,037 | 572,604 | 523,776 | 17.0 | (30.6 | ) | |||||||||||||||||||
| Loans and leases held for investment (1) | 9,172,134 | 8,912,561 | 8,633,847 | 8,202,631 | 7,836,398 | 2.9 | 17.0 | ||||||||||||||||||||
| Allowance for credit losses on loans and leases | (137,867 | ) | (139,041 | ) | (125,840 | ) | (121,273 | ) | (120,116 | ) | 0.8 | (14.8 | ) | ||||||||||||||
| Net loans and leases | 9,034,267 | 8,773,520 | 8,508,007 | 8,081,358 | 7,716,282 | 3.0 | 17.1 | ||||||||||||||||||||
| Premises and equipment, net | 267,864 | 258,071 | 257,881 | 258,041 | 269,485 | 3.8 | (0.6 | ) | |||||||||||||||||||
| Foreclosed assets | 8,015 | 8,561 | 6,481 | 6,701 | — | (6.4 | ) | 100.0 | |||||||||||||||||||
| Servicing assets | 51,528 | 49,343 | 48,591 | 47,127 | 31,042 | 4.4 | 66.0 | ||||||||||||||||||||
| Other assets | 376,370 | 387,059 | 354,476 | 346,227 | 333,334 | (2.8 | ) | 12.9 | |||||||||||||||||||
| Total assets | $ | 11,868,570 | $ | 11,505,569 | $ | 11,271,423 | $ | 10,950,460 | $ | 10,819,196 | 3.2 | 9.7 | |||||||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||
| Noninterest-bearing | $ | 264,013 | $ | 226,668 | $ | 259,270 | $ | 239,536 | $ | 229,833 | 16.5 | 14.9 | |||||||||||||||
| Interest-bearing | 10,443,018 | 10,156,693 | 10,015,749 | 9,764,106 | 9,649,278 | 2.8 | 8.2 | ||||||||||||||||||||
| Total deposits | 10,707,031 | 10,383,361 | 10,275,019 | 10,003,642 | 9,879,111 | 3.1 | 8.4 | ||||||||||||||||||||
| Borrowings | 117,745 | 120,242 | 23,354 | 25,847 | 28,317 | (2.1 | ) | 315.8 | |||||||||||||||||||
| Other liabilities | 82,745 | 74,248 | 70,384 | 70,603 | 79,280 | 11.4 | 4.4 | ||||||||||||||||||||
| Total liabilities | 10,907,521 | 10,577,851 | 10,368,757 | 10,100,092 | 9,986,708 | 3.1 | 9.2 | ||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||
| Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding | — | — | — | — | — | — | — | ||||||||||||||||||||
| Class A common stock (voting) | 356,381 | 349,648 | 344,568 | 340,929 | 341,032 | 1.9 | 4.5 | ||||||||||||||||||||
| Class B common stock (non-voting) | — | — | — | — | — | — | — | ||||||||||||||||||||
| Retained earnings | 695,172 | 669,307 | 642,817 | 627,759 | 589,036 | 3.9 | 18.0 | ||||||||||||||||||||
| Accumulated other comprehensive loss | (90,504 | ) | (91,237 | ) | (84,719 | ) | (118,320 | ) | (97,580 | ) | 0.8 | 7.3 | |||||||||||||||
| Total shareholders' equity | 961,049 | 927,718 | 902,666 | 850,368 | 832,488 | 3.6 | 15.4 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 11,868,570 | $ | 11,505,569 | $ | 11,271,423 | $ | 10,950,460 | $ | 10,819,196 | 3.2 | 9.7 | |||||||||||||||
(1) Includes
Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)
| Six Months Ended | |||||||
| June 30, 2024 | June 30, 2023 | ||||||
| Interest income | |||||||
| Loans and fees on loans | $ | 357,850 | $ | 291,414 | |||
| Investment securities, taxable | 18,173 | 16,050 | |||||
| Other interest earning assets | 14,845 | 13,664 | |||||
| Total interest income | 390,868 | 321,128 | |||||
| Interest expense | |||||||
| Deposits | 207,356 | 152,598 | |||||
| Borrowings | 2,081 | 2,211 | |||||
| Total interest expense | 209,437 | 154,809 | |||||
| Net interest income | 181,431 | 166,319 | |||||
| Provision for credit losses | 28,129 | 32,049 | |||||
| Net interest income after provision for credit losses | 153,302 | 134,270 | |||||
| Noninterest income | |||||||
| Loan servicing revenue | 14,971 | 13,067 | |||||
| Loan servicing asset revaluation | (5,622 | ) | (2,475 | ) | |||
| Net gains on sales of loans | 25,897 | 20,979 | |||||
| Net loss on loans accounted for under the fair value option | (47 | ) | (2,801 | ) | |||
| Equity method investments (loss) income | (6,789 | ) | (5,007 | ) | |||
| Equity security investments (losses) gains, net | (368 | ) | 198 | ||||
| Lease income | 4,876 | 5,070 | |||||
| Management fee income | 6,542 | 6,738 | |||||
| Other noninterest income | 20,796 | 7,966 | |||||
| Total noninterest income | 60,256 | 43,735 | |||||
| Noninterest expense | |||||||
| Salaries and employee benefits | 93,530 | 87,831 | |||||
| Travel expense | 4,766 | 5,181 | |||||
| Professional services expense | 4,939 | 2,923 | |||||
| Advertising and marketing expense | 6,696 | 6,612 | |||||
| Occupancy expense | 4,635 | 4,130 | |||||
| Technology expense | 15,719 | 15,734 | |||||
| Equipment expense | 6,585 | 7,841 | |||||
| Other loan origination and maintenance expense | 7,570 | 7,369 | |||||
| Renewable energy tax credit investment (recovery) impairment | (757 | ) | 69 | ||||
| FDIC insurance | 5,849 | 8,464 | |||||
| Other expense | 5,861 | 9,265 | |||||
| Total noninterest expense | 155,393 | 155,419 | |||||
| Income before taxes | 58,165 | 22,586 | |||||
| Income tax expense | 3,616 | 4,644 | |||||
| Net income | $ | 54,549 | $ | 17,942 | |||
| Earnings per share | |||||||
| Basic | $ | 1.22 | $ | 0.41 | |||
| Diluted | $ | 1.20 | $ | 0.40 | |||
| Weighted average shares outstanding | |||||||
| Basic | 44,868,625 | 44,242,785 | |||||
| Diluted | 45,583,146 | 44,900,323 | |||||
Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)
| As of and for the three months ended | |||||||||||||||||||
| 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2023 | |||||||||||||||
| Income Statement Data | |||||||||||||||||||
| Net income | $ | 26,963 | $ | 27,586 | $ | 16,163 | $ | 39,793 | $ | 17,544 | |||||||||
| Per Common Share | |||||||||||||||||||
| Net income, diluted | $ | 0.59 | $ | 0.60 | $ | 0.36 | $ | 0.88 | $ | 0.39 | |||||||||
| Dividends declared | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||||||||
| Book value | 21.35 | 20.64 | 20.23 | 19.12 | 18.77 | ||||||||||||||
| Tangible book value (1) | 21.28 | 20.57 | 20.15 | 19.04 | 18.69 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on average assets (annualized) | 0.93 | % | 0.98 | % | 0.58 | % | 1.46 | % | 0.66 | % | |||||||||
| Return on average equity (annualized) | 11.39 | 11.93 | 7.36 | 18.68 | 8.26 | ||||||||||||||
| Net interest margin | 3.28 | 3.33 | 3.32 | 3.37 | 3.29 | ||||||||||||||
| Efficiency ratio (1) | 61.89 | 66.89 | 77.88 | 58.34 | 70.49 | ||||||||||||||
| Noninterest income to total revenue | 27.22 | 22.46 | 25.16 | 29.76 | 22.27 | ||||||||||||||
| Selected Loan Metrics | |||||||||||||||||||
| Loans and leases originated | $ | 1,171,141 | $ | 805,129 | $ | 981,703 | $ | 1,073,255 | $ | 861,033 | |||||||||
| Outstanding balance of sold loans serviced | 4,292,857 | 4,329,097 | 4,238,328 | 4,028,575 | 3,813,852 | ||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||
| Allowance for credit losses to loans and leases held for investment (3) | 1.57 | % | 1.63 | % | 1.53 | % | 1.56 | % | 1.62 | % | |||||||||
| Net charge-offs (3) | $ | 8,253 | $ | 3,163 | $ | 4,428 | $ | 9,122 | $ | 1,154 | |||||||||
| Net charge-offs to average loans and leases held for investment (2) (3) | 0.38 | % | 0.15 | % | 0.22 | % | 0.48 | % | 0.06 | % | |||||||||
| Nonperforming loans and leases at historical cost (3) | |||||||||||||||||||
| Unguaranteed | $ | 37,340 | $ | 43,117 | $ | 39,285 | $ | 33,255 | $ | 44,899 | |||||||||
| Guaranteed | 122,752 | 105,351 | 95,678 | 65,837 | 66,322 | ||||||||||||||
| Total | 160,092 | 148,468 | 134,963 | 99,092 | 111,221 | ||||||||||||||
| Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3) | 0.42 | % | 0.51 | % | 0.48 | % | 0.43 | % | 0.61 | % | |||||||||
| Nonperforming loans at fair value (4) | |||||||||||||||||||
| Unguaranteed | $ | 9,590 | $ | 7,942 | $ | 7,230 | $ | 6,518 | $ | 8,602 | |||||||||
| Guaranteed | 51,570 | 47,620 | 41,244 | 39,378 | 45,114 | ||||||||||||||
| Total | 61,160 | 55,562 | 48,474 | 45,896 | 53,716 | ||||||||||||||
| Unguaranteed nonperforming fair value loans to fair value loans held for investment (4) | 2.64 | % | 2.09 | % | 1.86 | % | 1.59 | % | 1.95 | % | |||||||||
| Capital Ratios | |||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 11.85 | % | 11.89 | % | 11.73 | % | 11.63 | % | 11.55 | % | |||||||||
| Tier 1 leverage capital (to average assets) | 8.71 | 8.69 | 8.58 | 8.56 | 8.46 | ||||||||||||||
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, 2024 | Three Months Ended March 31, 2024 | ||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
| Interest-earning assets: | |||||||||||||||||||
| Interest-earning balances in other banks | $ | 555,570 | $ | 7,389 | 5.35 | % | $ | 542,243 | $ | 7,456 | 5.53 | % | |||||||
| Investment securities | 1,263,675 | 9,219 | 2.93 | 1,240,861 | 8,954 | 2.90 | |||||||||||||
| Loans held for sale | 387,824 | 9,329 | 9.67 | 353,476 | 8,354 | 9.51 | |||||||||||||
| Loans and leases held for investment (1) | 8,997,164 | 172,511 | 7.71 | 8,753,232 | 167,656 | 7.70 | |||||||||||||
| Total interest-earning assets | 11,204,233 | 198,448 | 7.12 | 10,889,812 | 192,420 | 7.11 | |||||||||||||
| Less: Allowance for credit losses on loans and leases | (136,668 | ) | (125,447 | ) | |||||||||||||||
| Noninterest-earning assets | 562,488 | 550,839 | |||||||||||||||||
| Total assets | $ | 11,630,053 | $ | 11,315,204 | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing checking | $ | 304,505 | $ | 4,267 | 5.64 | % | $ | 300,067 | $ | 4,183 | 5.61 | % | |||||||
| Savings | 4,804,037 | 48,617 | 4.07 | 4,552,390 | 46,171 | 4.08 | |||||||||||||
| Money market accounts | 128,625 | 186 | 0.58 | 125,317 | 187 | 0.60 | |||||||||||||
| Certificates of deposit | 5,032,856 | 52,288 | 4.18 | 5,094,553 | 51,457 | 4.06 | |||||||||||||
| Total deposits | 10,270,023 | 105,358 | 4.13 | 10,072,327 | 101,998 | 4.07 | |||||||||||||
| Borrowings | 119,321 | 1,770 | 5.97 | 26,772 | 311 | 4.67 | |||||||||||||
| Total interest-bearing liabilities | 10,389,344 | 107,128 | 4.15 | 10,099,099 | 102,309 | 4.07 | |||||||||||||
| Noninterest-bearing deposits | 223,026 | 213,571 | |||||||||||||||||
| Noninterest-bearing liabilities | 70,667 | 77,942 | |||||||||||||||||
| Shareholders' equity | 947,016 | 924,592 | |||||||||||||||||
| Total liabilities and shareholders' equity | $ | 11,630,053 | $ | 11,315,204 | |||||||||||||||
| Net interest income and interest rate spread | $ | 91,320 | 2.97 | % | $ | 90,111 | 3.04 | % | |||||||||||
| Net interest margin | 3.28 | 3.33 | |||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 107.84 | % | 107.83 | % | |||||||||||||||
(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 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2023 | |||||||||||||||
| Total shareholders’ equity | $ | 961,049 | $ | 927,718 | $ | 902,666 | $ | 850,368 | $ | 832,488 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||
| Other intangible assets | 1,644 | 1,682 | 1,721 | 1,759 | 1,797 | ||||||||||||||
| Tangible shareholders’ equity (a) | $ | 957,608 | $ | 924,239 | $ | 899,148 | $ | 846,812 | $ | 828,894 | |||||||||
| Shares outstanding (c) | 45,003,856 | 44,938,673 | 44,617,673 | 44,480,215 | 44,351,715 | ||||||||||||||
| Total assets | $ | 11,868,570 | $ | 11,505,569 | $ | 11,271,423 | $ | 10,950,460 | $ | 10,819,196 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||
| Other intangible assets | 1,644 | 1,682 | 1,721 | 1,759 | 1,797 | ||||||||||||||
| Tangible assets (b) | $ | 11,865,129 | $ | 11,502,090 | $ | 11,267,905 | $ | 10,946,904 | $ | 10,815,602 | |||||||||
| Tangible shareholders’ equity to tangible assets (a/b) | 8.07 | % | 8.04 | % | 7.98 | % | 7.74 | % | 7.66 | % | |||||||||
| Tangible book value per share (a/c) | $ | 21.28 | $ | 20.57 | $ | 20.15 | $ | 19.04 | $ | 18.69 | |||||||||
| Efficiency ratio: | |||||||||||||||||||
| Noninterest expense (d) | $ | 77,656 | $ | 77,737 | $ | 93,204 | $ | 74,262 | $ | 76,457 | |||||||||
| Net interest income | 91,320 | 90,111 | 89,576 | 89,410 | 84,302 | ||||||||||||||
| Noninterest income | 34,159 | 26,097 | 30,107 | 37,891 | 24,156 | ||||||||||||||
| Total revenue (e) | $ | 125,479 | $ | 116,208 | $ | 119,683 | $ | 127,301 | $ | 108,458 | |||||||||
| Efficiency ratio (d/e) | 61.89 | % | 66.89 | % | 77.88 | % | 58.34 | % | 70.49 | % | |||||||||
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 was Live Oak Bancshares' net income for Q2 2024?
How did Live Oak Bancshares' total revenue perform in Q2 2024?
What were the loan and lease originations for Live Oak Bancshares in Q2 2024?
How much did Live Oak Bancshares' total deposits increase in Q2 2024?
What was Live Oak Bancshares' net interest income in Q2 2024?
How did Live Oak Bancshares' noninterest income perform in Q2 2024?
What was the net interest margin for Live Oak Bancshares in Q2 2024?
