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Live Oak Bancshares
NYSE: LOB Financials Bank 🔎 Screen
🏹 Trader: 🎯 Near 52W High View all →
$1.9B
Market Cap
15.4
P/E
0.26
PEG
ROCE
9.4%
ROE
0.00
D/E
OPM
-8.6%
% from 52W High
56
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for LOB including FX impact
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📈 Price History
Ratio Health
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About

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various banking products and services in the United States.

Key Ratios Snapshot
📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →
📊 MIXED Q1 2026 EPS $0.60, adjusted EPS $0.70, revenue up 18% YoY, pipeline at all-time high $4.5B.
Revenue & Profitability
Diluted EPS was $0.60 in Q1 2026, about a 3x increase from Q1 2025. Adjusted EPS was $0.70, up 94% year-over-year. Revenue grew 18% year-over-year, while expenses grew only 6%. Reported PPNR was $60 million, up 43% YoY; adjusted PPNR was $66 million, up 30% YoY. Net interest income was $119 million, net interest margin 3.27%. Provision expense improved to $20 million. Gain on sale was up 25% linked quarter.
Outlook
Management views the small business credit cycle as stable for Live Oak, noting that 85%+ of its portfolio was underwritten at current or higher interest rates, reducing interest rate risk. Macro uncertainty (headlines, fuel costs) is monitored but indirect due to niche verticals. The flat rate environment is seen as favorable for NIM and net interest income. SBA SOP changes in mid-2025 caused a temporary slowdown in small-dollar lending, but that has resumed.
Growth Drivers
Key growth levers include the Live Oak Express small-dollar 7(a) program (targeting $750M+ annual production with premiums 9%–13%), checking account growth (non-interest-bearing balances at $400M, aiming for >10% of total deposits), and a record pipeline of $4.5 billion. Loan growth is expected in the low to mid-teens year-over-year. The company also plans to launch merchant services and explore embedded banking.
Balance Sheet & CapEx
Live Oak is investing in an AI-native loan origination platform now in pilot, has deployed 350 AI agents built by employees, and is creating department-level AI transformation. The company is also launching merchant services. No specific CapEx dollar amounts were provided, but expenses are expected to remain around $85 million per quarter with slight upticks for growth investments.
Margins
Q1 2026 efficiency ratio was 59%, a 7-point improvement from Q1 2025. Revenue growth outpaced expense growth by 3x year-over-year. Management expects the efficiency ratio to trend down to the low-to-mid 50s through 2026. Net interest margin stabilized at 3.27% and is expected to remain stable in a flat rate environment, with expansion coming from loan growth. Expenses are well controlled, with a run rate around $85 million per quarter.
Key Risks
Risks flagged include macro uncertainty and potential prolonged impact on small businesses from fuel cost increases, though Live Oak’s verticals are not heavily dependent on fuel. The non-accrual ratio ticked up to 102 bps, partly due to a niche whiskey distillery segment from an exited vertical. Competitive deposit market is monitored. However, management notes that industry default rates are rising while Live Oak’s credit is stable.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Q2 2026 delivered strong EPS and revenue growth, improved efficiency, and robust loan and deposit expansion. Strategic initiatives like Live Oak Express and business checking are ramping, while credit trends remain stable and AI adoption accelerates.
Q1 2026 Q1 2026 2026-04-23
Q1 2026 saw strong earnings momentum, with adjusted EPS nearly doubling year-over-year and robust loan and deposit growth. Credit trends remained stable, efficiency improved, and strategic initiatives in AI and small business banking are expected to drive continued growth.
Q4 2025 Q4 2025 2026-01-22
Record loan production and strong profitability marked Q4, with net income and EPS tripling year-over-year. Credit quality remains strong, deposit and loan growth are robust, and strategic initiatives in business checking and small-dollar SBA lending are accelerating.
Q3 2025 Q3 2025 2025-10-23
Q3 2025 saw robust growth in loans, deposits, and profitability, with EPS nearly doubling year-over-year and strong operating leverage. AI-driven initiatives and a $100M preferred equity raise support future growth, while risk remains manageable and capital strength is enhanced.
Q2 2025 Q2 2025 2025-07-24
Q2 2025 saw record loan originations, strong deposit growth, and improved credit metrics, driving a 22% increase in core operating leverage and a 10% sequential revenue rise. AI-driven modernization and targeted investments are fueling sustainable growth, with robust capital and a healthy loan pipeline.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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