$LOB

Live Oak Bancshares, Inc.

CIK:0001462120|SEC Filings

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income
Loans and fees on loans	$ 221,705	$ 204,513	$ 435,834	$ 400,129
Investment securities, taxable	13,411	11,648	26,420	22,737
Other interest earning assets	6,601	8,123	13,327	14,523
Total interest income	241,717	224,284	475,581	437,389
Interest expense
Deposits	114,776	113,380	227,623	224,268
Borrowings	1,603	1,683	3,220	3,368
Total interest expense	116,379	115,063	230,843	227,636
Net interest income	125,338	109,221	244,738	209,753
Provision for credit losses	25,800	23,252	45,900	52,216
Net interest income after provision for credit losses	99,538	85,969	198,838	157,537
Noninterest income
Loan servicing revenue	9,194	8,565	18,288	16,863
Loan servicing asset revaluation	(4,278)	(3,057)	(7,765)	(7,785)
Net gains on sales of loans	17,554	17,570	32,979	33,008
Net gain (loss) on loans accounted for under the fair value option	291	1,082	(874)	48
Equity method investments income (loss)	74	(2,716)	(743)	(4,955)
Equity security investments gains, net	0	1,004	0	1,024
Lease income	2,238	3,103	4,373	5,676
Other noninterest income	5,734	4,904	10,623	8,947
Total noninterest income	30,807	30,455	56,881	52,826
Noninterest expense
Salaries and employee benefits	48,776	46,008	98,130	91,537
Travel expense	1,933	1,634	3,396	3,698
Professional services expense	2,938	2,874	5,454	5,898
Advertising and marketing expense	2,734	4,420	5,785	8,085
Occupancy expense	2,364	2,369	4,774	5,106
Technology expense	9,608	10,066	19,357	19,317
Equipment expense	3,662	3,685	7,355	7,430
Other loan origination and maintenance expense	4,864	4,190	10,783	8,775
Renewable energy tax credit investment impairment	26	270	26	270
FDIC insurance	4,788	3,545	9,189	7,096
Other expense	2,832	6,161	5,569	8,817
Total noninterest expense	84,525	85,222	169,818	166,029
Income before taxes	45,820	31,202	85,901	44,334
Income tax expense	9,116	7,815	19,250	11,279
Net income	36,704	23,387	66,651	33,055
Net loss attributable to non-controlling interest	91	41	184	90
Net income attributable to Live Oak Bancshares, Inc.	36,795	23,428	66,835	33,145
Preferred stock dividends	2,094	0	4,188	0
Net income attributable to common shareholders	$ 34,701	$ 23,428	$ 62,647	$ 33,145
Basic earnings per share (in dollars per share)	$ 0.75	$ 0.51	$ 1.36	$ 0.72
Diluted earnings per share (in dollars per share)	$ 0.74	$ 0.51	$ 1.35	$ 0.72

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income	$ 66,651	$ 33,055
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,209	13,758
Provision for credit losses	45,900	52,216
Accretion of discount on securities, net	(365)	(230)
Deferred tax benefit	(7,386)	(843)
Originations of loans held for sale	(665,328)	(697,086)
Proceeds from sales of loans held for sale	633,666	627,599
Net gains on sale of loans held for sale	(32,979)	(33,008)
Net loss on impairment or sale of foreclosed assets	186	12
Net loss (gain) on loans accounted for under fair value option	874	(48)
Net change in servicing assets	(3,578)	(4,215)
Purchase of transferable tax credits	(22,966)	0
Net loss on disposal of property and equipment	238	3,122
Proceeds received from government guaranteed receivables	97,196	8,384
Equity method investments loss (income)	743	4,955
Equity security investments (gains) losses, net	0	(1,024)
Net (gain) loss on equity warrant assets	(77)	419
Renewable energy tax credit investment impairment	26	270
Restricted stock compensation expense	14,270	13,612
Stock based compensation excess tax benefit (deficiency)	104	(224)
Lease right-of-use assets and liabilities, net	22	7
Changes in assets and liabilities:
Other assets	(3,881)	6,904
Other liabilities	(17,955)	(4,090)
Net cash provided by operating activities	118,570	23,545
Cash flows from investing activities
Purchases of investment securities available-for-sale	(151,852)	(126,937)
Proceeds from maturities, calls, and principal paydowns of investment securities available-for-sale	101,373	77,572
Proceeds from sale of foreclosed assets	2,178	827
Loan and lease originations and principal collections, net	(850,256)	(740,040)
Purchases of equity security investments	(406)	(4,471)
Purchases of equity method investments	(380)	(3,060)
Proceeds from sale of equity security investments	391	359
Proceeds from sale of equity method investments	1,511	385
Proceeds from sale of premises and equipment	450	4,361
Purchases of premises and equipment, net	(4,856)	(3,719)
Net cash used by investing activities	(901,847)	(794,723)
Cash flows from financing activities
Net increase in deposits	858,867	834,296
Proceeds from borrowings	71	84
Repayment of borrowings	(2,709)	(5,245)
Stock option exercises	595	1,546
Employee stock purchase program	484	659
Tax withholding related to vesting of restricted stock and other	(4,342)	(3,471)
Shareholder dividend distributions - preferred	(4,188)	0
Shareholder dividend distributions - common	(2,775)	(2,736)
Net cash provided by financing activities	846,003	825,133
Net increase in cash and cash equivalents	62,726	53,955
Cash and cash equivalents, beginning	864,904	608,800
Cash and cash equivalents, ending	927,630	662,755
Supplemental disclosures of cash flow information
Interest paid	230,245	227,748
Income tax paid, net	63,619	7,221
Supplemental disclosures of noncash investing and financing activities
Unrealized holding (losses) gains on investment securities available-for-sale, net of taxes	(7,896)	20,830
Transfers from loans and leases to foreclosed real estate and other repossessions or government guaranteed receivable	122,282	18,894
Net transfers between foreclosed assets and government guaranteed receivable	(328)	33
Transfer of loans held for sale to loans and leases held for investment	44,953	113,326
Transfer of loans and leases held for investment to loans held for sale	73,441	19,708
Transfer from retained earnings to other assets for pro rata portion of equity method investee stock compensation expense	$ 0	$ 274

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and due from banks	$ 927,630	$ 864,904
Certificates of deposit with other banks	250	250
Investment securities available-for-sale	1,467,855	1,427,401
Loans held for sale	511,812	420,055
Loans and leases held for investment (includes $232,088 and $260,625 measured at fair value, respectively)	12,630,859	11,973,622
Allowance for credit losses on loans and leases	(193,417)	(192,264)
Net loans and leases	12,437,442	11,781,358
Premises and equipment, net	231,198	240,203
Foreclosed assets	11,017	8,208
Servicing assets (includes $66,575 and $62,941 measured at fair value, respectively)	66,733	63,155
Other assets	384,204	329,244
Total assets	16,038,141	15,134,778
Deposits:
Noninterest-bearing	605,237	515,051
Interest-bearing	13,942,289	13,173,608
Total deposits	14,547,526	13,688,659
Borrowings	99,766	102,404
Other liabilities	73,931	89,609
Total liabilities	14,721,223	13,880,672
Shareholders’ equity
Retained earnings	869,757	809,885
Accumulated other comprehensive loss	(52,555)	(44,672)
Total shareholders' equity attributed to Live Oak Bancshares, Inc.	1,312,864	1,249,868
Non-controlling interest	4,054	4,238
Total shareholders’ equity	1,316,918	1,254,106
Total liabilities and shareholders’ equity	16,038,141	15,134,778
Series A Preferred Stock
Shareholders’ equity
Series A Preferred stock, no par value, 1,000,000 shares authorized, 100,000 shares issued and outstanding at June 30, 2026 and December 31, 2025	96,266	96,266
Class A Common Stock
Shareholders’ equity
Class A common stock, no par value, 100,000,000 shares authorized, 46,283,620 and 46,032,402 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	$ 399,396	$ 388,389