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.: 800.549.8228International: +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:
Walter J. Phifer | CFO | Investor Relations | 910.202.6926Claire 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
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
