Live Oak Bancshares, Inc.
- Open
- 40.81
- Day high
- 42.16
- Day low
- 40.67
- Prev close
- 40.84
- Volume
- 138K
- Mkt cap
- $1.9B
- P/E (TTM)
- 15.9
- EPS (TTM)
- $2.64
- P/B
- 1.5
- P/S
- 1.8
- Yield
- 0.29%
- Per share
- $0.12
- ▼Insiders net selling -$6.5M over the last 3 months (0 open-market buys, 16 sales)
- 🏛Institutions mixed (13F)
Live Oak Bancshares, Inc. (LOB) is a Financial Services company listed on NYSE. The stock is up 31% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 16 sales (SEC Form 4).
Live Oak Bancshares, Inc. (LOB) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LOB earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.54 | $0.60 | +11.1% | $145M | -3.8% |
| Jan 21, 2026 | $0.56 | $0.95 | +69.6% | $173M | +17.9% |
| Oct 22, 2025 | $0.58 | $0.55 | -5.2% | $142M | -5.8% |
| Jul 23, 2025 | $0.52 | $0.51 | -1.9% | $142M | -4.0% |
| Apr 23, 2025 | $0.38 | $0.21 | -44.7% | $124M | -6.0% |
| Mar 18, 2025 | — | $0.21 | — | $240M | — |
| Oct 23, 2024 | $0.56 | $0.28 | -50.0% | $126M | -1.2% |
| Jul 24, 2024 | $0.46 | $0.59 | +28.3% | $123M | -2.7% |
| Jan 24, 2024 | $0.44 | $0.36 | -18.2% | $101M | -13.3% |
| Oct 25, 2023 | $0.48 | $0.88 | +83.3% | $125M | +10.6% |
| Jul 25, 2023 | $0.31 | $0.39 | +25.8% | $107M | -5.2% |
| Jan 25, 2023 | $0.43 | $0.04 | -90.7% | $95M | -13.7% |
LOB insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 25, 2026 | WILLIAMS WILLIAM L. IIIdirector | Sell | 8,400 | $40.05 |
| Jun 12, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 10,000 | $38.19 |
| Jun 12, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 915 | $39.20 |
| Jun 12, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 9,085 | $38.68 |
| Jun 5, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 79 | $37.65 |
| Jun 5, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 9,363 | $36.42 |
| Jun 5, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 9,921 | $37.26 |
| Jun 5, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 637 | $37.14 |
| May 29, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 10,000 | $37.65 |
| May 26, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 3,388 | $37.42 |
| May 26, 2026 | MAHAN JAMES S IIIdirector, 10 percent owner, officer: Chief Executive Officer | Sell | 6,612 | $36.92 |
| May 21, 2026 | Valine Yousef A.director | Grant | 2,486 | — |
| May 21, 2026 | Lunsford Jeffrey Wdirector | Option | 1,890 | — |
| May 21, 2026 | Petty Miltom Emmettdirector | Grant | 2,486 | — |
| May 21, 2026 | Bradford Tonya Williamsdirector | Grant | 2,486 | — |
Source: LOB SEC Form 4 filings, latest Jun 25, 2026. For informational purposes only — not investment advice.
See the full LOB insider & 13F page →Live Oak Bancshares, Inc. company profile
Overview
Live Oak Bancshares, Inc. (NASDAQ:LOB) is a regional bank holding company founded in 2008 and headquartered in Wilmington, North Carolina. The company operates through its subsidiary Live Oak Banking Company and has positioned itself as a technology-focused commercial bank specializing in small business lending. Since going public in 2015, Live Oak has grown from a $400 million bank to over $12 billion in assets, establishing itself as what management calls "America's Small Business Bank" with a particular expertise in government-guaranteed Small Business Administration (SBA) loans and specialized industry verticals.
Business
Live Oak Bancshares operates as a specialized commercial bank focused primarily on small business lending and deposit services. The company's core business revolves around two main segments that generate revenue through different approaches to commercial banking. The Small Business Banking segment represents approximately 54% of loan originations and focuses heavily on SBA 7(a) loans. These are government-guaranteed loans designed to help small businesses access capital for working capital, equipment purchases, real estate, and business expansion. The SBA guarantee typically covers 70-90% of the loan amount, significantly reducing the bank's credit risk. Live Oak has developed particular expertise in serving specific industry verticals including healthcare, veterinary practices, funeral homes, and other professional services where they have deep sector knowledge. The Commercial Lending segment accounts for roughly 46% of loan originations and includes conventional commercial and industrial loans, construction and development financing, owner-occupied and non-owner-occupied commercial real estate loans, and commercial land loans. This segment also encompasses project finance deals, particularly in solar energy and hospitality sectors. Unlike SBA loans, these are traditional commercial loans without government guarantees. Beyond lending, Live Oak provides traditional banking services including business and consumer deposit accounts, with particular emphasis on building business checking relationships. The bank has been investing heavily in technology to offer embedded banking services and developing what they call a "small dollar SBA lending initiative" targeting businesses with $100,000-$500,000 in annual revenues that have historically been underserved by traditional banks.
Revenue model
Live Oak generates revenue through multiple streams typical of commercial banking, with some unique characteristics due to their SBA specialization. The primary revenue source is net interest income, earned from the spread between what they pay depositors and what they charge borrowers. In 2024, this represented the majority of their $812 million in total revenue. A significant secondary revenue stream comes from loan sales, particularly SBA loans sold in the secondary market. When Live Oak originates SBA loans, they often sell the guaranteed portion to investors while retaining the servicing rights and the unguaranteed portion. This generates immediate fee income and reduces balance sheet risk. The bank has indicated that gain on sale income typically represents 7-10% of total revenue. The company also earns servicing fees from loans they've sold but continue to service, along with traditional banking fees from deposit accounts and other services. Their wealth management division provides investment advisory services to high-net-worth clients, generating fee-based income. Several factors significantly impact Live Oak's profitability margins. Interest rate environment is crucial - rising rates benefit their loan yields but increase deposit costs, while falling rates have the opposite effect. The bank's net interest margin has fluctuated between 3.33% and 3.87% in recent years. Credit quality directly affects provision expenses, with small business borrowers being particularly sensitive to economic conditions and interest rate changes. Competition for deposits from larger banks and money market funds can pressure deposit costs, while competition in SBA lending affects loan pricing. The bank's heavy reliance on government guarantees provides some protection but also subjects them to regulatory changes in SBA programs. Finally, their specialized focus on small businesses creates both concentration risk and competitive advantages in specific industry verticals.
Competitive moat
Live Oak's competitive moat is moderately strong but faces several challenges. The company's primary competitive advantage lies in its specialized expertise in SBA lending and specific industry verticals. Over more than a decade, they have developed deep knowledge in sectors like healthcare, veterinary practices, and funeral homes, allowing them to underwrite loans more effectively than generalist banks. This specialization creates switching costs for borrowers who value the bank's industry understanding and streamlined processes. The bank's technology platform represents another moat element, as they have invested heavily in cloud-native, API-first banking infrastructure that enables faster loan processing and embedded banking services. Their small dollar SBA lending automation and digital application processes provide operational advantages over traditional banks with legacy systems. However, Live Oak's moat has notable vulnerabilities. The SBA lending market is highly competitive with many participants, and the government guarantee structure means credit risk differentiation is limited. Larger banks with greater resources can easily enter their specialized markets, particularly during economic downturns when they seek safer, government-guaranteed assets. Fintech companies are increasingly targeting small business lending with technology-driven approaches that could commoditize Live Oak's current advantages. The bank's concentration in small business lending creates both strength and weakness - while it provides expertise, it also means they lack the diversification of larger regional banks. Their reliance on wholesale funding and brokered deposits makes them more vulnerable to funding cost pressures than banks with sticky retail deposit franchises. Additionally, regulatory changes to SBA programs could significantly impact their business model, as evidenced by their excitement over recent SBA rule changes that expanded their addressable market.
Risks & safety
Live Oak presents a moderate margin of safety with some concerning elements requiring careful monitoring. **Liquidity and Solvency:** - Strong cash position of $609 million and total current assets of $634 million - Debt-to-equity ratio of 11.3%, indicating conservative leverage - However, current ratio of 0.0 reflects typical banking structure where most liabilities are deposits - Free cash flow of $487 million for 2024 demonstrates strong cash generation **Credit and Asset Quality:** - 34% of loan portfolio carries government guarantees, providing significant downside protection - Past due loans only $15 million (20 basis points) on $5.6+ billion loan book - Elevated provision expenses in 2024 signal emerging credit pressures in small business segment **Valuation Metrics:** - Trading at 23x earnings (2024), elevated but not extreme for a growth-oriented regional bank - Price-to-book ratio of 1.78x appears reasonable for asset quality and growth profile - Graham number of $29.32 suggests fair valuation at current $28.29 price **Other Considerations:** - Heavy reliance on interest-sensitive small business borrowers creates cyclical earnings risk - Concentration in specialized lending verticals limits diversification benefits - Strong ROE of 7.8% (2024) demonstrates profitable operations despite headwinds
Recent development
Over the past few years, Live Oak has executed several strategic initiatives to transform from a traditional SBA lender into a comprehensive small business banking platform. The most significant development has been their small dollar SBA lending initiative, launched to serve businesses with $100,000-$500,000 in annual revenues. This program grew from zero to $125 million in loans during 2024, with management targeting over $250 million in 2025 and potentially $500 million to $1 billion annually within a few years. The bank has made substantial investments in technology and automation, developing cloud-native, API-first platforms to streamline loan origination and servicing. They've focused particularly on artificial intelligence capabilities to improve efficiency and are building embedded banking services that can be integrated into partner platforms. This technology focus extends to their business checking product launch, which has grown to $212 million in balances with 46% quarter-over-quarter growth. Live Oak has strategically shifted toward building full customer relationships rather than just loan transactions. The percentage of customers with both loan and deposit relationships increased from 5% to 14%, with 35% of new loan customers now opening checking accounts. This relationship banking approach aims to reduce earnings volatility and create stickier customer connections. The company has also expanded its specialized lending verticals and geographic presence while maintaining disciplined credit standards. They've added project finance capabilities in solar energy and hospitality sectors, and are expanding their local market presence in areas like Wilmington, North Carolina. Recent hiring of additional loan officers and investment in servicing capabilities demonstrates their commitment to scaling operations while maintaining credit quality.
LOB company profile · for informational purposes only — not investment advice.
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