Live Oak Bancshares, Inc. Reports Third Quarter 2024 Results
Live Oak Bancshares reported Q3 2024 net income of $13.0 million, or $0.28 per diluted share, a 51.7% decrease from Q2 2024. Total revenue reached $129.9 million, up 3.5% from previous quarter. The company achieved record loan production of $1.76 billion, a 50.1% increase from Q2. Total deposits grew to $11.40 billion, up 6.5% quarter-over-quarter. Net interest income increased to $97.0 million, with net interest margin rising to 3.33%. The provision for credit losses increased to $34.5 million, primarily due to specific reserve increases and portfolio growth.
Live Oak Bancshares ha riportato un reddito netto del terzo trimestre 2024 di 13,0 milioni di dollari, pari a 0,28 dollari per azione diluita, con un calo del 51,7% rispetto al secondo trimestre 2024. Il fatturato totale ha raggiunto 129,9 milioni di dollari, con un incremento del 3,5% rispetto al trimestre precedente. L'azienda ha ottenuto una produzione di prestiti record di 1,76 miliardi di dollari, un aumento del 50,1% rispetto al secondo trimestre. I depositi totali sono cresciuti a 11,40 miliardi di dollari, con un aumento del 6,5% rispetto al trimestre precedente. Il reddito da interessi netti è aumentato a 97,0 milioni di dollari, con un margine di interessi netti cresciuto al 3,33%. La svalutazione per perdite su crediti è aumentata a 34,5 milioni di dollari, principalmente a causa degli aumenti delle riserve specifiche e della crescita del portafoglio.
Live Oak Bancshares reportó un ingreso neto del tercer trimestre de 2024 de 13.0 millones de dólares, o 0.28 dólares por acción diluida, una disminución del 51.7% en comparación con el segundo trimestre de 2024. Los ingresos totales alcanzaron 129.9 millones de dólares, un aumento del 3.5% respecto al trimestre anterior. La compañía logró una producción de préstamos récord de 1.76 mil millones de dólares, un incremento del 50.1% en comparación con el segundo trimestre. Los depósitos totales crecieron a 11.40 mil millones de dólares, un aumento del 6.5% semana a semana. Los ingresos de intereses netos aumentaron a 97.0 millones de dólares, con un margen de interés neto que subió al 3.33%. La provisión para pérdidas crediticias aumentó a 34.5 millones de dólares, principalmente debido al aumento de reservas específicas y al crecimiento de la cartera.
라이브 오크 은행 주식회사는 2024년 3분기 순이익이 1,300만 달러로 보고했으며, 희석 주당 0.28달러로 2024년 2분기 대비 51.7% 감소했습니다. 총 수익은 1억 2,990만 달러에 도달했으며, 이전 분기 대비 3.5% 증가했습니다. 이 회사는 기록적인 대출 생산액 17억 6천만 달러를 달성했으며, 이는 2분기 대비 50.1% 증가한 것입니다. 총 예금은 114억 달러로 증가했으며, 분기대비 6.5% 성장했습니다. 순이자 수익은 9,700만 달러로 증가했으며, 순이자 마진은 3.33% 증가했습니다. 신용 손실 충당금은 3,450만 달러로 증가했으며, 이는 주로 특정 충당금 증가와 포트폴리오 성장 때문입니다.
Live Oak Bancshares a déclaré un revenu net de 13,0 millions de dollars pour le troisième trimestre de 2024, soit 0,28 dollar par action diluée, soit une baisse de 51,7 % par rapport au deuxième trimestre de 2024. Le chiffre d'affaires total a atteint 129,9 millions de dollars, en hausse de 3,5 % par rapport au trimestre précédent. L'entreprise a enregistré une production de prêts record de 1,76 milliard de dollars, soit une augmentation de 50,1 % par rapport au deuxième trimestre. Les dépôts totaux ont augmenté à 11,40 milliards de dollars, en hausse de 6,5 % d'un trimestre à l'autre. Le revenu d'intérêts nets a augmenté à 97,0 millions de dollars, avec une marge d'intérêts nets montant à 3,33 %. La provision pour pertes de crédit a augmenté à 34,5 millions de dollars, principalement en raison d'une augmentation des réserves spécifiques et de la croissance du portefeuille.
Live Oak Bancshares berichtete von einem Nettoeinkommen im 3. Quartal 2024 von 13,0 Millionen Dollar, oder 0,28 Dollar pro verwässerter Aktie, was einem Rückgang von 51,7 % gegenüber dem 2. Quartal 2024 entspricht. Der Gesamtumsatz belief sich auf 129,9 Millionen Dollar, ein Anstieg von 3,5 % im Vergleich zum vorherigen Quartal. Das Unternehmen erzielte eine rekordverdächtige Kreditproduktion von 1,76 Milliarden Dollar, was einem Anstieg von 50,1 % im Vergleich zum 2. Quartal entspricht. Die Gesamtziele wuchsen auf 11,40 Milliarden Dollar, ein Anstieg von 6,5 % im Quartalsvergleich. Die Zinserträge stiegen auf 97,0 Millionen Dollar, wobei die Nettomarge auf 3,33 % anstieg. Die Rückstellungen für Kreditausfälle erhöhten sich auf 34,5 Millionen Dollar, hauptsächlich aufgrund von speziellen Reservesteigerungen und Portfoliowachstum.
- Record loan production of $1.76 billion, up 50.1% QoQ
- Total deposits increased by $693.5 million to $11.40 billion
- Net interest margin improved to 3.33% from 3.28% QoQ
- Net interest income grew to $97.0 million from $91.3 million QoQ
- Net gains on sales of loans increased to $16.6 million, up $2.3 million QoQ
- Net income decreased 51.7% QoQ to $13.0 million
- Provision for credit losses increased significantly to $34.5 million from $11.8 million QoQ
- Nonperforming loans increased to 0.52% from 0.42% QoQ
- Management fee income decreased by $2.2 million QoQ due to Canapi Funds restructuring
- Effective tax rate increased to 27.0% from 25.2% QoQ
Insights
Live Oak Bancshares delivered mixed Q3 2024 results with notable strengths and concerns. Net income dropped significantly to
Key positives include record loan production of
The bank's core business shows strength with total assets growing to
WILMINGTON, N.C., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported third quarter of 2024 net income of
“Live Oak delivered historic production levels this quarter as our teams continue to put capital into the hands of business owners across the country,” said Live Oak Chairman and Chief Executive Officer James S. (Chip) Mahan III. “We believe our business momentum is in an exciting place and our conservative approach to growth is driving positive operating leverage, revenue, and deeper customer relationships.”
Third Quarter 2024 Key Measures
| (Dollars in thousands, except per share data) | Increase (Decrease) | ||||||||||||||||||
| 3Q 2024 | 2Q 2024 | Dollars | Percent | 3Q 2023 | |||||||||||||||
| Total revenue(1) | $ | 129,932 | $ | 125,479 | $ | 4,453 | 3.5 | % | $ | 127,301 | |||||||||
| Total noninterest expense | 77,589 | 77,656 | (67 | ) | (0.1 | ) | 74,262 | ||||||||||||
| Income before taxes | 17,841 | 36,058 | (18,217 | ) | (50.5 | ) | 42,760 | ||||||||||||
| Effective tax rate | 27.0 | % | 25.2 | % | n/a | n/a | 6.9 | % | |||||||||||
| Net income | $ | 13,025 | $ | 26,963 | $ | (13,938 | ) | (51.7 | )% | $ | 39,793 | ||||||||
| Diluted earnings per share | 0.28 | 0.59 | (0.31 | ) | (52.5 | ) | 0.88 | ||||||||||||
| Loan and lease production: | |||||||||||||||||||
| Loans and leases originated | $ | 1,757,856 | $ | 1,171,141 | $ | 586,715 | 50.1 | % | $ | 1,073,255 | |||||||||
| % Fully funded | 42.4 | % | 38.2 | % | n/a | n/a | 52.2 | % | |||||||||||
| Total loans and leases: | $ | 10,191,868 | $ | 9,535,766 | $ | 656,102 | 6.9 | % | $ | 8,775,235 | |||||||||
| Total assets: | 12,607,346 | 11,868,570 | 738,776 | 6.2 | 10,950,460 | ||||||||||||||
| Total deposits: | 11,400,547 | 10,707,031 | 693,516 | 6.5 | 10,003,642 | ||||||||||||||
(1) Total revenue consists of net interest income and total noninterest income.
Loans and Leases
As of September 30, 2024, the total loan and lease portfolio was
The total loan and lease portfolio at September 30, 2024, and June 30, 2024, was comprised of
Loan and lease originations totaled
Deposits
Total deposits increased to
Average total interest-bearing deposits for the third quarter of 2024 increased
Borrowings
Borrowings totaled
Net Interest Income
Net interest income for the third quarter of 2024 was
The increase in net interest income for the third quarter of 2024 compared to the third quarter of 2023 was largely driven by growth in average loans and leases held for investment. Partially mitigating this increase was a decrease in the net interest margin by four basis points 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 third quarter of 2024 was
The loan servicing asset revaluation resulted in a loss of
Net gains on sales of loans was
Loans accounted for under the fair value option had a net gain of
Management fee income decreased by
Other noninterest income for the third quarter of 2024 totaled
Noninterest Expense
Noninterest expense for the third quarter of 2024 totaled
Asset Quality
During the third 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 third quarter of 2024 totaled
The allowance for credit losses on loans and leases totaled
Income Tax
Income tax expense 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, October 24, 2024, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 04478. 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
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 | 3Q 2024 Change vs. | ||||||||||||||||||||||||||
| 3Q 2024 | 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2024 | 3Q 2023 | |||||||||||||||||||||
| Interest income | % | % | |||||||||||||||||||||||||
| Loans and fees on loans | $ | 192,170 | $ | 181,840 | $ | 176,010 | $ | 169,531 | $ | 162,722 | 5.7 | 18.1 | |||||||||||||||
| Investment securities, taxable | 9,750 | 9,219 | 8,954 | 8,746 | 8,701 | 5.8 | 12.1 | ||||||||||||||||||||
| Other interest earning assets | 7,016 | 7,389 | 7,456 | 8,259 | 9,188 | (5.0 | ) | (23.6 | ) | ||||||||||||||||||
| Total interest income | 208,936 | 198,448 | 192,420 | 186,536 | 180,611 | 5.3 | 15.7 | ||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||
| Deposits | 110,174 | 105,358 | 101,998 | 96,695 | 90,914 | 4.6 | 21.2 | ||||||||||||||||||||
| Borrowings | 1,762 | 1,770 | 311 | 265 | 287 | (0.5 | ) | 513.9 | |||||||||||||||||||
| Total interest expense | 111,936 | 107,128 | 102,309 | 96,960 | 91,201 | 4.5 | 22.7 | ||||||||||||||||||||
| Net interest income | 97,000 | 91,320 | 90,111 | 89,576 | 89,410 | 6.2 | 8.5 | ||||||||||||||||||||
| Provision for credit losses | 34,502 | 11,765 | 16,364 | 8,995 | 10,279 | 193.3 | 235.7 | ||||||||||||||||||||
| Net interest income after provision for credit losses | 62,498 | 79,555 | 73,747 | 80,581 | 79,131 | (21.4 | ) | (21.0 | ) | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||
| Loan servicing revenue | 8,040 | 7,347 | 7,624 | 7,342 | 6,990 | 9.4 | 15.0 | ||||||||||||||||||||
| Loan servicing asset revaluation | (4,207 | ) | (2,878 | ) | (2,744 | ) | (3,974 | ) | 11,335 | (46.2 | ) | (137.1 | ) | ||||||||||||||
| Net gains on sales of loans | 16,646 | 14,395 | 11,502 | 12,891 | 12,675 | 15.6 | 31.3 | ||||||||||||||||||||
| Net gain (loss) on loans accounted for under the fair value option | 2,255 | 172 | (219 | ) | (170 | ) | (568 | ) | 1211.0 | 497.0 | |||||||||||||||||
| Equity method investments (loss) income | (1,393 | ) | (1,767 | ) | (5,022 | ) | 47 | (1,034 | ) | 21.2 | (34.7 | ) | |||||||||||||||
| Equity security investments gains (losses), net | 909 | 161 | (529 | ) | (384 | ) | (783 | ) | 464.6 | 216.1 | |||||||||||||||||
| Lease income | 2,424 | 2,423 | 2,453 | 2,439 | 2,498 | — | (3.0 | ) | |||||||||||||||||||
| Management fee income | 1,116 | 3,271 | 3,271 | 3,309 | 3,277 | (65.9 | ) | (65.9 | ) | ||||||||||||||||||
| Other noninterest income | 7,142 | 11,035 | 9,761 | 8,607 | 3,501 | (35.3 | ) | 104.0 | |||||||||||||||||||
| Total noninterest income | 32,932 | 34,159 | 26,097 | 30,107 | 37,891 | (3.6 | ) | (13.1 | ) | ||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||
| Salaries and employee benefits | 44,524 | 46,255 | 47,275 | 44,274 | 42,947 | (3.7 | ) | 3.7 | |||||||||||||||||||
| Travel expense | 2,344 | 2,328 | 2,438 | 1,544 | 2,197 | 0.7 | 6.7 | ||||||||||||||||||||
| Professional services expense | 3,287 | 3,061 | 1,878 | 3,052 | 1,762 | 7.4 | 86.5 | ||||||||||||||||||||
| Advertising and marketing expense | 2,473 | 3,004 | 3,692 | 2,501 | 3,446 | (17.7 | ) | (28.2 | ) | ||||||||||||||||||
| Occupancy expense | 2,807 | 2,388 | 2,247 | 2,231 | 2,129 | 17.5 | 31.8 | ||||||||||||||||||||
| Technology expense | 9,081 | 7,996 | 7,723 | 8,402 | 7,722 | 13.6 | 17.6 | ||||||||||||||||||||
| Equipment expense | 3,472 | 3,511 | 3,074 | 3,480 | 3,676 | (1.1 | ) | (5.5 | ) | ||||||||||||||||||
| Other loan origination and maintenance expense | 4,872 | 3,659 | 3,911 | 3,937 | 3,498 | 33.2 | 39.3 | ||||||||||||||||||||
| Renewable energy tax credit investment impairment (recovery) | 115 | 170 | (927 | ) | 14,575 | — | (32.4 | ) | 100.0 | ||||||||||||||||||
| FDIC insurance | 1,933 | 2,649 | 3,200 | 4,091 | 4,115 | (27.0 | ) | (53.0 | ) | ||||||||||||||||||
| Other expense | 2,681 | 2,635 | 3,226 | 5,117 | 2,770 | 1.7 | (3.2 | ) | |||||||||||||||||||
| Total noninterest expense | 77,589 | 77,656 | 77,737 | 93,204 | 74,262 | (0.1 | ) | 4.5 | |||||||||||||||||||
| Income before taxes | 17,841 | 36,058 | 22,107 | 17,484 | 42,760 | (50.5 | ) | (58.3 | ) | ||||||||||||||||||
| Income tax expense (benefit) | 4,816 | 9,095 | (5,479 | ) | 1,321 | 2,967 | (47.0 | ) | 62.3 | ||||||||||||||||||
| Net income | $ | 13,025 | $ | 26,963 | $ | 27,586 | $ | 16,163 | $ | 39,793 | (51.7 | ) | (67.3 | ) | |||||||||||||
| Earnings per share | |||||||||||||||||||||||||||
| Basic | $ | 0.28 | $ | 0.60 | $ | 0.62 | $ | 0.36 | $ | 0.89 | (53.3 | ) | (68.5 | ) | |||||||||||||
| Diluted | $ | 0.28 | $ | 0.59 | $ | 0.60 | $ | 0.36 | $ | 0.88 | (52.5 | ) | (68.2 | ) | |||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||||||
| Basic | 45,073,482 | 44,974,942 | 44,762,308 | 44,516,646 | 44,408,997 | ||||||||||||||||||||||
| Diluted | 45,953,947 | 45,525,082 | 45,641,210 | 45,306,506 | 45,268,745 | ||||||||||||||||||||||
Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)
| As of the quarter ended | 3Q 2024 Change vs. | ||||||||||||||||||||||||||
| 3Q 2024 | 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2024 | 3Q 2023 | |||||||||||||||||||||
| Assets | % | % | |||||||||||||||||||||||||
| Cash and due from banks | $ | 666,585 | $ | 615,449 | $ | 597,394 | $ | 582,540 | $ | 534,774 | 8.3 | 24.6 | |||||||||||||||
| Certificates of deposit with other banks | 250 | 250 | 250 | 250 | 3,750 | — | (93.3 | ) | |||||||||||||||||||
| Investment securities available-for-sale | 1,233,466 | 1,151,195 | 1,120,622 | 1,126,160 | 1,099,878 | 7.1 | 12.1 | ||||||||||||||||||||
| Loans held for sale | 359,977 | 363,632 | 310,749 | 387,037 | 572,604 | (1.0 | ) | (37.1 | ) | ||||||||||||||||||
| Loans and leases held for investment(1) | 9,831,891 | 9,172,134 | 8,912,561 | 8,633,847 | 8,202,631 | 7.2 | 19.9 | ||||||||||||||||||||
| Allowance for credit losses on loans and leases | (168,737 | ) | (137,867 | ) | (139,041 | ) | (125,840 | ) | (121,273 | ) | (22.4 | ) | (39.1 | ) | |||||||||||||
| Net loans and leases | 9,663,154 | 9,034,267 | 8,773,520 | 8,508,007 | 8,081,358 | 7.0 | 19.6 | ||||||||||||||||||||
| Premises and equipment, net | 267,032 | 267,864 | 258,071 | 257,881 | 258,041 | (0.3 | ) | 3.5 | |||||||||||||||||||
| Foreclosed assets | 8,015 | 8,015 | 8,561 | 6,481 | 6,701 | — | 19.6 | ||||||||||||||||||||
| Servicing assets | 52,553 | 51,528 | 49,343 | 48,591 | 47,127 | 2.0 | 11.5 | ||||||||||||||||||||
| Other assets | 356,314 | 376,370 | 387,059 | 354,476 | 346,227 | (5.3 | ) | 2.9 | |||||||||||||||||||
| Total assets | $ | 12,607,346 | $ | 11,868,570 | $ | 11,505,569 | $ | 11,271,423 | $ | 10,950,460 | 6.2 | 15.1 | |||||||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||
| Noninterest-bearing | $ | 258,844 | $ | 264,013 | $ | 226,668 | $ | 259,270 | $ | 239,536 | (2.0 | ) | 8.1 | ||||||||||||||
| Interest-bearing | 11,141,703 | 10,443,018 | 10,156,693 | 10,015,749 | 9,764,106 | 6.7 | 14.1 | ||||||||||||||||||||
| Total deposits | 11,400,547 | 10,707,031 | 10,383,361 | 10,275,019 | 10,003,642 | 6.5 | 14.0 | ||||||||||||||||||||
| Borrowings | 115,371 | 117,745 | 120,242 | 23,354 | 25,847 | (2.0 | ) | 346.4 | |||||||||||||||||||
| Other liabilities | 83,672 | 82,745 | 74,248 | 70,384 | 70,603 | 1.1 | 18.5 | ||||||||||||||||||||
| Total liabilities | 11,599,590 | 10,907,521 | 10,577,851 | 10,368,757 | 10,100,092 | 6.3 | 14.8 | ||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||
| Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding | — | — | — | — | — | — | — | ||||||||||||||||||||
| Class A common stock (voting) | 361,925 | 356,381 | 349,648 | 344,568 | 340,929 | 1.6 | 6.2 | ||||||||||||||||||||
| Class B common stock (non-voting) | — | — | — | — | — | — | — | ||||||||||||||||||||
| Retained earnings | 707,026 | 695,172 | 669,307 | 642,817 | 627,759 | 1.7 | 12.6 | ||||||||||||||||||||
| Accumulated other comprehensive loss | (61,195 | ) | (90,504 | ) | (91,237 | ) | (84,719 | ) | (118,320 | ) | 32.4 | 48.3 | |||||||||||||||
| Total shareholders' equity | 1,007,756 | 961,049 | 927,718 | 902,666 | 850,368 | 4.9 | 18.5 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 12,607,346 | $ | 11,868,570 | $ | 11,505,569 | $ | 11,271,423 | $ | 10,950,460 | 6.2 | 15.1 | |||||||||||||||
(1) Includes
Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)
| Nine Months Ended | |||||||
| September 30, 2024 | September 30, 2023 | ||||||
| Interest income | |||||||
| Loans and fees on loans | $ | 550,020 | $ | 454,136 | |||
| Investment securities, taxable | 27,923 | 24,751 | |||||
| Other interest earning assets | 21,861 | 22,852 | |||||
| Total interest income | 599,804 | 501,739 | |||||
| Interest expense | |||||||
| Deposits | 317,530 | 243,512 | |||||
| Borrowings | 3,843 | 2,498 | |||||
| Total interest expense | 321,373 | 246,010 | |||||
| Net interest income | 278,431 | 255,729 | |||||
| Provision for credit losses | 62,631 | 42,328 | |||||
| Net interest income after provision for credit losses | 215,800 | 213,401 | |||||
| Noninterest income | |||||||
| Loan servicing revenue | 23,011 | 20,057 | |||||
| Loan servicing asset revaluation | (9,829 | ) | 8,860 | ||||
| Net gains on sales of loans | 42,543 | 33,654 | |||||
| Net gain (loss) on loans accounted for under the fair value option | 2,208 | (3,369 | ) | ||||
| Equity method investments (loss) income | (8,182 | ) | (6,041 | ) | |||
| Equity security investments gain (losses), net | 541 | (585 | ) | ||||
| Lease income | 7,300 | 7,568 | |||||
| Management fee income | 7,658 | 10,015 | |||||
| Other noninterest income | 27,938 | 11,467 | |||||
| Total noninterest income | 93,188 | 81,626 | |||||
| Noninterest expense | |||||||
| Salaries and employee benefits | 138,054 | 130,778 | |||||
| Travel expense | 7,110 | 7,378 | |||||
| Professional services expense | 8,226 | 4,685 | |||||
| Advertising and marketing expense | 9,169 | 10,058 | |||||
| Occupancy expense | 7,442 | 6,259 | |||||
| Technology expense | 24,800 | 23,456 | |||||
| Equipment expense | 10,057 | 11,517 | |||||
| Other loan origination and maintenance expense | 12,442 | 10,867 | |||||
| Renewable energy tax credit investment (recovery) impairment | (642 | ) | 69 | ||||
| FDIC insurance | 7,782 | 12,579 | |||||
| Other expense | 8,542 | 12,035 | |||||
| Total noninterest expense | 232,982 | 229,681 | |||||
| Income before taxes | 76,006 | 65,346 | |||||
| Income tax expense | 8,432 | 7,611 | |||||
| Net income | $ | 67,574 | $ | 57,735 | |||
| Earnings per share | |||||||
| Basic | $ | 1.50 | $ | 1.30 | |||
| Diluted | $ | 1.48 | $ | 1.28 | |||
| Weighted average shares outstanding | |||||||
| Basic | 44,937,409 | 44,298,798 | |||||
| Diluted | 45,707,245 | 45,023,739 | |||||
Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)
| As of and for the three months ended | |||||||||||||||||||
| 3Q 2024 | 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | |||||||||||||||
| Income Statement Data | |||||||||||||||||||
| Net income | $ | 13,025 | $ | 26,963 | $ | 27,586 | $ | 16,163 | $ | 39,793 | |||||||||
| Per Common Share | |||||||||||||||||||
| Net income, diluted | $ | 0.28 | $ | 0.59 | $ | 0.60 | $ | 0.36 | $ | 0.88 | |||||||||
| Dividends declared | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||||||||
| Book value | 22.32 | 21.35 | 20.64 | 20.23 | 19.12 | ||||||||||||||
| Tangible book value(1) | 22.24 | 21.28 | 20.57 | 20.15 | 19.04 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on average assets (annualized) | 0.43 | % | 0.93 | % | 0.98 | % | 0.58 | % | 1.46 | % | |||||||||
| Return on average equity (annualized) | 5.21 | 11.39 | 11.93 | 7.36 | 18.68 | ||||||||||||||
| Net interest margin | 3.33 | 3.28 | 3.33 | 3.32 | 3.37 | ||||||||||||||
| Efficiency ratio(1) | 59.72 | 61.89 | 66.89 | 77.88 | 58.34 | ||||||||||||||
| Noninterest income to total revenue | 25.35 | 27.22 | 22.46 | 25.16 | 29.76 | ||||||||||||||
| Selected Loan Metrics | |||||||||||||||||||
| Loans and leases originated | $ | 1,757,856 | $ | 1,171,141 | $ | 805,129 | $ | 981,703 | $ | 1,073,255 | |||||||||
| Outstanding balance of sold loans serviced | 4,452,750 | 4,292,857 | 4,329,097 | 4,238,328 | 4,028,575 | ||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||
| Allowance for credit losses to loans and leases held for investment(3) | 1.78 | % | 1.57 | % | 1.63 | % | 1.53 | % | 1.56 | % | |||||||||
| Net charge-offs(3) | $ | 1,710 | $ | 8,253 | $ | 3,163 | $ | 4,428 | $ | 9,122 | |||||||||
| Net charge-offs to average loans and leases held for investment(2) (3) | 0.08 | % | 0.38 | % | 0.15 | % | 0.22 | % | 0.48 | % | |||||||||
| Nonperforming loans and leases at historical cost(3) | |||||||||||||||||||
| Unguaranteed | $ | 49,398 | $ | 37,340 | $ | 43,117 | $ | 39,285 | $ | 33,255 | |||||||||
| Guaranteed | 166,177 | 122,752 | 105,351 | 95,678 | 65,837 | ||||||||||||||
| Total | 215,575 | 160,092 | 148,468 | 134,963 | 99,092 | ||||||||||||||
| Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment(3) | 0.52 | % | 0.42 | % | 0.51 | % | 0.48 | % | 0.43 | % | |||||||||
| Nonperforming loans at fair value(4) | |||||||||||||||||||
| Unguaranteed | $ | 8,672 | $ | 9,590 | $ | 7,942 | $ | 7,230 | $ | 6,518 | |||||||||
| Guaranteed | 49,822 | 51,570 | 47,620 | 41,244 | 39,378 | ||||||||||||||
| Total | 58,494 | 61,160 | 55,562 | 48,474 | 45,896 | ||||||||||||||
| Unguaranteed nonperforming fair value loans to fair value loans held for investment(4) | 2.53 | % | 2.64 | % | 2.09 | % | 1.86 | % | 1.59 | % | |||||||||
| Capital Ratios | |||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 11.19 | % | 11.85 | % | 11.89 | % | 11.73 | % | 11.63 | % | |||||||||
| Tier 1 leverage capital (to average assets) | 8.60 | 8.71 | 8.69 | 8.58 | 8.56 | ||||||||||||||
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 September 30, 2024 | Three Months Ended June 30, 2024 | ||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Interest-earning balances in other banks | $ | 519,340 | $ | 7,016 | 5.37 | % | $ | 555,570 | $ | 7,389 | 5.35 | % | |||||||||||
| Investment securities | 1,287,410 | 9,750 | 3.01 | 1,263,675 | 9,219 | 2.93 | |||||||||||||||||
| Loans held for sale | 409,902 | 9,859 | 9.57 | 387,824 | 9,329 | 9.67 | |||||||||||||||||
| Loans and leases held for investment(1) | 9,354,522 | 182,311 | 7.75 | 8,997,164 | 172,511 | 7.71 | |||||||||||||||||
| Total interest-earning assets | 11,571,174 | 208,936 | 7.18 | 11,204,233 | 198,448 | 7.12 | |||||||||||||||||
| Less: Allowance for credit losses on loans and leases | (137,285 | ) | (136,668 | ) | |||||||||||||||||||
| Noninterest-earning assets | 567,098 | 562,488 | |||||||||||||||||||||
| Total assets | $ | 12,000,987 | $ | 11,630,053 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing checking | $ | 350,239 | $ | 4,892 | 5.56 | % | $ | 304,505 | $ | 4,267 | 5.64 | % | |||||||||||
| Savings | 5,043,930 | 51,516 | 4.06 | 4,804,037 | 48,617 | 4.07 | |||||||||||||||||
| Money market accounts | 134,481 | 190 | 0.56 | 128,625 | 186 | 0.58 | |||||||||||||||||
| Certificates of deposit | 5,028,830 | 53,576 | 4.24 | 5,032,856 | 52,288 | 4.18 | |||||||||||||||||
| Total deposits | 10,557,480 | 110,174 | 4.15 | 10,270,023 | 105,358 | 4.13 | |||||||||||||||||
| Borrowings | 116,925 | 1,762 | 6.00 | 119,321 | 1,770 | 5.97 | |||||||||||||||||
| Total interest-bearing liabilities | 10,674,405 | 111,936 | 4.17 | 10,389,344 | 107,128 | 4.15 | |||||||||||||||||
| Noninterest-bearing deposits | 237,387 | 223,026 | |||||||||||||||||||||
| Noninterest-bearing liabilities | 90,079 | 70,667 | |||||||||||||||||||||
| Shareholders' equity | 999,116 | 947,016 | |||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 12,000,987 | $ | 11,630,053 | |||||||||||||||||||
| Net interest income and interest rate spread | $ | 97,000 | 3.01 | % | $ | 91,320 | 2.97 | % | |||||||||||||||
| Net interest margin | 3.33 | 3.28 | |||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 108.40 | % | 107.84 | % | |||||||||||||||||||
(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 | |||||||||||||||||||
| 3Q 2024 | 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | |||||||||||||||
| Total shareholders’ equity | $ | 1,007,756 | $ | 961,049 | $ | 927,718 | $ | 902,666 | $ | 850,368 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||
| Other intangible assets | 1,606 | 1,644 | 1,682 | 1,721 | 1,759 | ||||||||||||||
| Tangible shareholders’ equity (a) | $ | 1,004,353 | $ | 957,608 | $ | 924,239 | $ | 899,148 | $ | 846,812 | |||||||||
| Shares outstanding (c) | 45,151,691 | 45,003,856 | 44,938,673 | 44,617,673 | 44,480,215 | ||||||||||||||
| Total assets | $ | 12,607,346 | $ | 11,868,570 | $ | 11,505,569 | $ | 11,271,423 | $ | 10,950,460 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||
| Other intangible assets | 1,606 | 1,644 | 1,682 | 1,721 | 1,759 | ||||||||||||||
| Tangible assets (b) | $ | 12,603,943 | $ | 11,865,129 | $ | 11,502,090 | $ | 11,267,905 | $ | 10,946,904 | |||||||||
| Tangible shareholders’ equity to tangible assets (a/b) | 7.97 | % | 8.07 | % | 8.04 | % | 7.98 | % | 7.74 | % | |||||||||
| Tangible book value per share (a/c) | $ | 22.24 | $ | 21.28 | $ | 20.57 | $ | 20.15 | $ | 19.04 | |||||||||
| Efficiency ratio: | |||||||||||||||||||
| Noninterest expense (d) | $ | 77,589 | $ | 77,656 | $ | 77,737 | $ | 93,204 | $ | 74,262 | |||||||||
| Net interest income | 97,000 | 91,320 | 90,111 | 89,576 | 89,410 | ||||||||||||||
| Noninterest income | 32,932 | 34,159 | 26,097 | 30,107 | 37,891 | ||||||||||||||
| Total revenue (e) | $ | 129,932 | $ | 125,479 | $ | 116,208 | $ | 119,683 | $ | 127,301 | |||||||||
| Efficiency ratio (d/e) | 59.72 | % | 61.89 | % | 66.89 | % | 77.88 | % | 58.34 | % | |||||||||
| Pre-provision net revenue (e-d) | $ | 52,343 | $ | 47,823 | $ | 38,471 | $ | 26,479 | $ | 53,039 | |||||||||
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 (LOB) earnings per share in Q3 2024?
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