Live Oak Bancshares, Inc. Reports Second Quarter 2025 Results

WILMINGTON, N.C., July 23, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported second quarter of 2025 net income attributable to the Company of $23.4 million, or $0.51 per diluted share.

Live Oak’s performance in the quarter, compared to the first quarter of 2025, includes these notable items:

Record second quarter production of $1.53 billion accompanied by strong deposit growth of $198.8 million, with total assets growing by 1.7% to $13.83 billion
Net interest income increased 8.6% and net interest margin increased eight basis points from 3.20% to 3.28%
14.0% increase in revenue and 6.3% increase in noninterest expenses generated 29.4% increase in pre-provision net revenue¹
Provision expense for credit losses of $23.3 million, a decrease of $5.7 million, driven by moderating credit trends, loan growth, and the current macroeconomic environment

“Live Oak Bank delivered an outstanding quarter in Q2, driven by excellent growth, healthy revenue, and lower provision expense,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We remain focused on supporting our nation’s entrepreneurs as they continue to navigate a backdrop of uncertainty while also providing the service, technology and financial guidance they need to succeed.”

Conference Call

Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, July 24, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 25229. 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.

Second Quarter 2025 Key Measures

(Dollars in thousands, except per share data)							Increase (Decrease)
	2Q 2025			1Q 2025			Dollars		Percent		2Q 2024
Total revenue⁽¹⁾	$	143,747		$	126,113		$	17,634	14.0	%	$	125,479
Total noninterest expense		89,293			84,017			5,276	6.3			77,656
Income before taxes		31,202			13,132			18,070	137.6			36,058
Effective tax rate		25.0	%		26.4	%	n/a		n/a			25.2	%
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	13,711	141.1	%	$	26,963
Diluted earnings per share		0.51			0.21			0.30	142.9			0.59
Loan and lease production:
Loans and leases originated	$	1,526,592		$	1,396,223		$	130,369	9.3	%	$	1,171,141
% Fully funded		39.7	%		46.0	%	n/a		n/a			38.2	%
Total loans and leases:	$	11,364,846		$	11,061,866		$	302,980	2.7	%	$	9,535,766
Total assets:		13,831,208			13,595,704			235,504	1.7			11,868,570
Total deposits:		12,594,790			12,395,945			198,845	1.6			10,707,031

(1)	Total revenue consists of net interest income and total noninterest income.

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank.

Contacts:

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

	Three Months Ended															2Q 2025 Change vs.
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2025		2Q 2024
Interest income																%		%
Loans and fees on loans	$	204,513		$	195,616		$	194,821		$	192,170		$	181,840		4.5		12.5
Investment securities, taxable		11,648			11,089			10,490			9,750			9,219		5.0		26.3
Other interest earning assets		8,123			6,400			7,257			7,016			7,389		26.9		9.9
Total interest income		224,284			213,105			212,568			208,936			198,448		5.2		13.0
Interest expense
Deposits		113,380			110,888			113,357			110,174			105,358		2.2		7.6
Borrowings		1,683			1,685			1,737			1,762			1,770		(0.1	)	(4.9	)
Total interest expense		115,063			112,573			115,094			111,936			107,128		2.2		7.4
Net interest income		109,221			100,532			97,474			97,000			91,320		8.6		19.6
Provision for credit losses		23,252			28,964			33,581			34,502			11,765		(19.7	)	97.6
Net interest income after provision for credit losses		85,969			71,568			63,893			62,498			79,555		20.1		8.1
Noninterest income
Loan servicing revenue		8,565			8,298			8,524			8,040			7,347		3.2		16.6
Loan servicing asset revaluation		(3,057	)		(4,728	)		(2,326	)		(4,207	)		(2,878	)	35.3		(6.2	)
Net gains on sales of loans		21,641			18,648			18,356			16,646			14,395		16.0		50.3
Net gain (loss) on loans accounted for under the fair value option		1,082			(1,034	)		195			2,255			172		204.6		529.1
Equity method investments (loss) income		(2,716	)		(2,239	)		(2,739	)		(1,393	)		(1,767	)	(21.3	)	(53.7	)
Equity security investments gains, net		1,004			20			12			909			161		4,920.0		523.6
Lease income		3,103			2,573			2,456			2,424			2,423		20.6		28.1
Management fee income		—			—			—			1,116			3,271		—		(100.0	)
Other noninterest income		4,904			4,043			6,115			7,142			11,035		21.3		(55.6	)
Total noninterest income		34,526			25,581			30,593			32,932			34,159		35.0		1.1
Noninterest expense
Salaries and employee benefits		49,137			48,008			45,214			44,524			46,255		2.4		6.2
Travel expense		2,576			2,795			2,628			2,344			2,328		(7.8	)	10.7
Professional services expense		2,874			3,024			2,797			3,287			3,061		(5.0	)	(6.1	)
Advertising and marketing expense		4,420			3,665			1,979			2,473			3,004		20.6		47.1
Occupancy expense		2,369			2,737			2,558			2,807			2,388		(13.4	)	(0.8	)
Technology expense		10,066			9,251			9,406			9,081			7,996		8.8		25.9
Equipment expense		3,685			3,745			3,769			3,472			3,511		(1.6	)	5.0
Other loan origination and maintenance expense		4,190			4,585			4,812			4,872			3,659		(8.6	)	14.5
Renewable energy tax credit investment impairment		270			—			1,172			115			170		100.0		58.8
FDIC insurance		3,545			3,551			3,053			1,933			2,649		(0.2	)	33.8
Other expense		6,161			2,656			3,869			2,681			2,635		132.0		133.8
Total noninterest expense		89,293			84,017			81,257			77,589			77,656		6.3		15.0
Income before taxes		31,202			13,132			13,229			17,841			36,058		137.6		(13.5	)
Income tax expense		7,815			3,464			3,386			4,816			9,095		125.6		(14.1	)
Net income		23,387			9,668			9,843			13,025			26,963		141.9		(13.3	)
Net loss attributable to non-controlling interest		41			49			57			—			—		(16.3	)	100.0
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	9,900		$	13,025		$	26,963		141.1		(13.1	)
Earnings per share
Basic	$	0.51		$	0.21		$	0.22		$	0.28		$	0.60		142.9		(15.0	)
Diluted	$	0.51		$	0.21		$	0.22		$	0.28		$	0.59		142.9		(13.6	)
Weighted average shares outstanding
Basic		45,634,741			45,377,965			45,224,470			45,073,482			44,974,942
Diluted		45,795,608			45,754,499			46,157,979			45,953,947			45,525,082

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

	As of the quarter ended															2Q 2025 Change vs.
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2025		2Q 2024
Assets																%		%
Cash and due from banks	$	662,755		$	744,263		$	608,800		$	666,585		$	615,449		(11.0	)	7.7
Certificates of deposit with other banks		250			250			250			250			250		—		—
Investment securities available-for-sale		1,325,206			1,312,680			1,248,203			1,233,466			1,151,195		1.0		15.1
Loans held for sale		350,791			367,955			346,002			359,977			363,632		(4.7	)	(3.5	)
Loans and leases held for investment⁽¹⁾		11,014,055			10,693,911			10,233,374			9,831,891			9,172,134		3.0		20.1
Allowance for credit losses on loans and leases		(182,231	)		(190,184	)		(167,516	)		(168,737	)		(137,867	)	4.2		(32.2	)
Net loans and leases		10,831,824			10,503,727			10,065,858			9,663,154			9,034,267		3.1		19.9
Premises and equipment, net		246,493			259,113			264,059			267,032			267,864		(4.9	)	(8.0	)
Foreclosed assets		6,318			2,108			1,944			8,015			8,015		199.7		(21.2	)
Servicing assets		60,359			56,911			56,144			52,553			51,528		6.1		17.1
Other assets		347,212			348,697			352,120			356,314			376,370		(0.4	)	(7.7	)
Total assets	$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570		1.7		16.5
Liabilities and shareholders’ equity
*Liabilities*
Deposits:
Noninterest-bearing	$	393,393		$	386,108		$	318,890		$	258,844		$	264,013		1.9		49.0
Interest-bearing		12,201,397			12,009,837			11,441,604			11,141,703			10,443,018		1.6		16.8
Total deposits		12,594,790			12,395,945			11,760,494			11,400,547			10,707,031		1.6		17.6
Borrowings		107,659			110,247			112,820			115,371			117,745		(2.3	)	(8.6	)
Other liabilities		61,494			58,065			66,570			83,672			82,745		5.9		(25.7	)
Total liabilities		12,763,943			12,564,257			11,939,884			11,599,590			10,907,521		1.6		17.0
*Shareholders’ equity*
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—			—			—			—		—		—
Class A common stock (voting)		377,953			370,513			365,607			361,925			356,381		2.0		6.1
Class B common stock (non-voting)		—			—			—			—			—		—		—
Retained earnings		746,450			724,215			715,767			707,026			695,172		3.1		7.4
Accumulated other comprehensive loss		(61,514	)		(67,698	)		(82,344	)		(61,195	)		(90,504	)	9.1		32.0
Total shareholders' equity attributed to Live Oak Bancshares, Inc.		1,062,889			1,027,030			999,030			1,007,756			961,049		3.5		10.6
Non-controlling interest		4,376			4,417			4,466			—			—		(0.9	)	100.0
Total shareholders' equity		1,067,265			1,031,447			1,003,496			1,007,756			961,049		3.5		11.1
Total liabilities and shareholders’ equity	$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570		1.7		16.5

(1)	Includes $303.8 million, $316.8 million, $328.7 million, $343.4 million and $363.0 million loans measured at fair value for the quarters ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.

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

	Six Months Ended
	June 30, 2025			June 30, 2024
Interest income
Loans and fees on loans	$	400,129		$	357,850
Investment securities, taxable		22,737			18,173
Other interest earning assets		14,523			14,845
Total interest income		437,389			390,868
Interest expense
Deposits		224,268			207,356
Borrowings		3,368			2,081
Total interest expense		227,636			209,437
Net interest income		209,753			181,431
Provision for credit losses		52,216			28,129
Net interest income after provision for credit losses		157,537			153,302
Noninterest income
Loan servicing revenue		16,863			14,971
Loan servicing asset revaluation		(7,785	)		(5,622	)
Net gains on sales of loans		40,289			25,897
Net gain (loss) on loans accounted for under the fair value option		48			(47	)
Equity method investments (loss) income		(4,955	)		(6,789	)
Equity security investments gain (losses), net		1,024			(368	)
Lease income		5,676			4,876
Management fee income		—			6,542
Other noninterest income		8,947			20,796
Total noninterest income		60,107			60,256
Noninterest expense
Salaries and employee benefits		97,145			93,530
Travel expense		5,371			4,766
Professional services expense		5,898			4,939
Advertising and marketing expense		8,085			6,696
Occupancy expense		5,106			4,635
Technology expense		19,317			15,719
Equipment expense		7,430			6,585
Other loan origination and maintenance expense		8,775			7,570
Renewable energy tax credit investment impairment (recovery)		270			(757	)
FDIC insurance		7,096			5,849
Other expense		8,817			5,861
Total noninterest expense		173,310			155,393
Income before taxes		44,334			58,165
Income tax expense		11,279			3,616
Net income		33,055			54,549
Net loss attributable to non-controlling interest		90			—
Net income attributable to Live Oak Bancshares, Inc.	$	33,145		$	54,549
Earnings per share
Basic	$	0.72		$	1.22
Diluted	$	0.72		$	1.20
Weighted average shares outstanding
Basic		45,556,842			44,868,625
Diluted		45,825,543			45,583,146

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

	As of and for the three months ended
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024
Income Statement Data
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	9,900		$	13,025		$	26,963
Per Common Share
Net income, diluted	$	0.51		$	0.21		$	0.22		$	0.28		$	0.59
Dividends declared		0.03			0.03			0.03			0.03			0.03
Book value		23.36			22.62			22.12			22.32			21.35
Tangible book value ⁽¹⁾		23.29			22.55			22.05			22.24			21.28
Performance Ratios
Return on average assets (annualized)		0.68	%		0.30	%		0.31	%		0.43	%		0.93	%
Return on average equity (annualized)		8.85			3.78			3.85			5.21			11.39
Net interest margin		3.28			3.20			3.15			3.33			3.28
Efficiency ratio ⁽¹⁾		62.12			66.62			63.45			59.72			61.89
Noninterest income to total revenue		24.02			20.28			23.89			25.35			27.22
Selected Loan Metrics
Loans and leases originated	$	1,526,592		$	1,396,223		$	1,421,118		$	1,757,856		$	1,171,141
Outstanding balance of sold loans serviced		5,321,284			4,949,962			4,715,895			4,452,750			4,292,857
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment ⁽³⁾		1.70	%		1.83	%		1.69	%		1.78	%		1.57	%
Net charge-offs ⁽³⁾	$	31,445		$	6,774		$	33,566		$	1,710		$	8,253
Net charge-offs to average loans and leases held for investment ^{(2) (3)}		1.19	%		0.27	%		1.39	%		0.08	%		0.38	%

Nonperforming loans and leases at historical cost ⁽³⁾
Unguaranteed	$	59,555		$	99,907		$	81,412		$	49,398		$	37,340
Guaranteed		336,777			322,993			222,885			166,177			122,752
Total		396,332			422,900			304,297			215,575			160,092
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment ⁽³⁾		0.56	%		0.96	%		0.82	%		0.52	%		0.42	%

Nonperforming loans at fair value ⁽⁴⁾
Unguaranteed	$	8,873		$	9,938		$	9,115		$	8,672		$	9,590
Guaranteed		60,453			58,100			54,873			49,822			51,570
Total		69,326			68,038			63,988			58,494			61,160
Unguaranteed nonperforming fair value loans to fair value loans held for investment ⁽⁴⁾		2.92	%		3.14	%		2.77	%		2.53	%		2.64	%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		10.67	%		10.67	%		11.04	%		11.19	%		11.85	%
Tier 1 leverage capital (to average assets)		7.90			8.03			8.21			8.60			8.71

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, 2025							Three Months Ended March 31, 2025
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	727,715		$	8,123	4.48	%	$	581,267		$	6,400	4.47	%
Investment securities		1,408,942			11,648	3.32			1,379,797			11,089	3.26
Loans held for sale		381,531			8,008	8.42			407,953			8,612	8.56
Loans and leases held for investment⁽¹⁾		10,843,303			196,505	7.27			10,388,872			187,004	7.30
Total interest-earning assets		13,361,491			224,284	6.73			12,757,889			213,105	6.77
Less: Allowance for credit losses on loans and leases		(186,022	)						(165,320	)
Noninterest-earning assets		539,485							534,133
Total assets	$	13,714,954						$	13,126,702
Interest-bearing liabilities:
Interest-bearing checking	$	350,978		$	3,969	4.54	%	$	350,491		$	3,929	4.55	%
Savings		6,241,053			56,529	3.63			5,540,147			51,604	3.78
Money market accounts		128,757			93	0.29			127,908			120	0.38
Certificates of deposit		5,392,494			52,789	3.93			5,563,004			55,235	4.03
Total deposits		12,113,282			113,380	3.75			11,581,550			110,888	3.88
Borrowings		109,463			1,683	6.17			111,919			1,685	6.11
Total interest-bearing liabilities		12,222,745			115,063	3.78			11,693,469			112,573	3.90
Noninterest-bearing deposits		375,503							342,482
Noninterest-bearing liabilities		53,717							58,739
Shareholders' equity		1,058,572							1,027,547
Non-controlling interest		4,417							4,465
Total liabilities and shareholders' equity	$	13,714,954						$	13,126,702
Net interest income and interest rate spread				$	109,221	2.95	%				$	100,532	2.87	%
Net interest margin						3.28							3.20
Ratio of average interest-earning assets to average interest-bearing liabilities						109.32	%						109.10	%

(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 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024
Total shareholders’ equity	$	1,067,265		$	1,031,447		$	1,003,496		$	1,007,756		$	961,049
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,491			1,529			1,568			1,606			1,644
Tangible shareholders’ equity (a)	$	1,063,977		$	1,028,121		$	1,000,131		$	1,004,353		$	957,608
Shares outstanding (c)		45,686,081			45,589,633			45,359,425			45,151,691			45,003,856
Total assets	$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,491			1,529			1,568			1,606			1,644
Tangible assets (b)	$	13,827,920		$	13,592,378		$	12,940,015		$	12,603,943		$	11,865,129
Tangible shareholders’ equity to tangible assets (a/b)		7.69	%		7.56	%		7.73	%		7.97	%		8.07	%
Tangible book value per share (a/c)	$	23.29		$	22.55		$	22.05		$	22.24		$	21.28
Efficiency ratio:
Noninterest expense (d)	$	89,293		$	84,017		$	81,257		$	77,589		$	77,656
Net interest income		109,221			100,532			97,474			97,000			91,320
Noninterest income		34,526			25,581			30,593			32,932			34,159
Total revenue (e)	$	143,747		$	126,113		$	128,067		$	129,932		$	125,479
Efficiency ratio (d/e)		62.12	%		66.62	%		63.45	%		59.72	%		61.89	%
Pre-provision net revenue (e-d)	$	54,454		$	42,096		$	46,810		$	52,343		$	47,823

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.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.