Live Oak Bancshares, Inc. Reports Fourth Quarter 2025 Results
WILMINGTON, N.C., Jan. 21, 2026 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE:LOB) ("Live Oak" or "the Company") today reported fourth quarter of 2025 net income attributable to common shareholders of $44.1 million, or $0.95 per diluted share. Net income attributable to common shareholders for the year ended December 31, 2025, totaled $102.8 million, or $2.23 per diluted share.
Live Oak's performance for the year ended December 31, 2025, compared with the same period in 2024 included these notable items:
Strong loan production of $6.21 billion accompanied by strong deposit growth of $1.93 billion in 2025, with total assets growing by 16.9% to $15.13 billion
$96.3 million in capital was raised as a result of preferred stock offering in the third quarter of 2025
Revenue (comprised of net interest income and noninterest income1) increased 18.3% and noninterest expense1 increased 11.7%, which generated 28.9% growth in pre-provision net revenue2
Sale of Apiture, Inc. resulting in a pre-tax gain of $24.1 million which is included in equity method investments income (loss)
Provision expense for credit losses of $96.3 million remained relatively flat compared to 2024
"Live Oak Bank delivered solid performance in 2025, a year defined by the resilience of small businesses and a disciplined focus on our core mission," said Live Oak Chairman and CEO James S. (Chip) Mahan III. "Our teams closed out the year with record loan growth across our small business and commercial lending teams, strong momentum in building low-cost deposits, and a dedicated approach to credit quality and stabilization. These results reflect our commitment to being America's small business bank and position us for continued progress in 2026 and beyond."
Conference Call
Live Oak will host a conference call to discuss the company's financial results and business outlook tomorrow, January 22, 2026, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 06698. 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: +1 646.564.2877Pass Code: None Required
Live Webcast Log-In
Webcast Link: investor.liveoakbank.com Registration: Name and Email Required Multi-Factor Code: Provided After Registration
(1) Certain immaterial prior-period amounts in the Statements of Income have been revised. Specifically, there was a decrease in the line item for net gains on sales of loans, which was fully offset by a decrease in salaries and employee benefits, and travel expense. The changes were presentation only and had no impact on previously reported net income, total assets, total liabilities, or shareholders' equity. Related efficiency and noninterest income to total revenue ratios have been revised accordingly.
(2) See accompanying GAAP to Non-GAAP Reconciliation.
Year Over Year Highlights
(Dollars in thousands, except per share data)
Increase (Decrease)
2025
2024
Dollars
Percent
Total revenue (1)
$
577,816
$
488,557
$
89,259
18
%
Total noninterest expense
338,698
303,110
35,588
12
Provision for credit losses
96,303
96,212
91
—
Income before taxes
142,815
89,235
53,580
60
Effective tax rate
26.0
%
13.2
%
n/a
n/a
Net income attributable to common shareholders
$
102,823
$
77,474
$
25,349
33
%
Diluted earnings per share
2.23
1.69
0.54
32
Loan and lease production
6,209,639
5,155,244
1,054,395
20
Total loans and leases
12,393,677
10,579,376
1,814,301
17
Total assets
15,134,778
12,943,380
2,191,398
17
Total deposits
13,688,659
11,760,494
1,928,165
16
(1) Total revenue consists of net interest income and total noninterest income.
Fourth Quarter 2025 Key Measures
(Dollars in thousands, except per share data)
Increase (Decrease)
4Q 2025
3Q 2025
Dollars
Percent
4Q 2024
Total revenue (1)
$
172,907
$
142,330
$
30,577
21
%
$
125,022
Total noninterest expense
89,153
83,516
5,637
7
78,212
Provision for credit losses
21,845
22,242
(397
)
(2
)
33,581
Income before taxes
61,909
36,572
25,337
69
13,229
Effective tax rate
25.5
%
27.6
%
n/a
n/a
25.6
%
Net income attributable to common shareholders
$
44,116
$
25,562
$
18,554
73
%
$
9,900
Diluted earnings per share
0.95
0.55
0.40
73
0.22
Loan and lease production
1,638,113
1,648,711
(10,598
)
(1
)
1,421,118
(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
4Q 2025 Change vs.
4Q 2025
3Q 2025
2Q 2025
1Q 2025
4Q 2024
3Q 2025
4Q 2024
Interest income
%
%
Loans and fees on loans
$
218,852
$
211,599
$
204,513
$
195,616
$
194,821
3.4
12.3
Investment securities, taxable
12,679
12,175
11,648
11,089
10,490
4.1
20.9
Other interest earning assets
8,124
7,654
8,123
6,400
7,257
6.1
11.9
Total interest income
239,655
231,428
224,284
213,105
212,568
3.6
12.7
Interest expense
Deposits
114,879
114,266
113,380
110,888
113,357
0.5
1.3
Borrowings
1,656
1,677
1,683
1,685
1,737
(1.3
)
(4.7
)
Total interest expense
116,535
115,943
115,063
112,573
115,094
0.5
1.3
Net interest income
123,120
115,485
109,221
100,532
97,474
6.6
26.3
Provision for credit losses
21,845
22,242
23,252
28,964
33,581
(1.8
)
(34.9
)
Net interest income after provision for credit losses
101,275
93,243
85,969
71,568
63,893
8.6
58.5
Noninterest income
Loan servicing revenue
9,227
8,812
8,565
8,298
8,524
4.7
8.2
Loan servicing asset revaluation
(3,932
)
(4,360
)
(3,057
)
(4,728
)
(2,326
)
9.8
(69.0
)
Net gains on sales of loans
12,313
17,099
17,570
15,438
15,311
(28.0
)
(19.6
)
Net gain (loss) on loans accounted for under the fair value option
1,518
(350
)
1,082
(1,034
)
195
533.7
678.5
Equity method investments income (loss) (1)
23,812
(1,470
)
(2,716
)
(2,239
)
(2,739
)
1,719.9
969.4
Equity security investments gains (losses), net
4,691
18
1,004
20
12
25,961.1
38,991.7
Lease income
2,196
2,179
3,103
2,573
2,456
0.8
(10.6
)
Other noninterest income
(38
)
4,917
4,904
4,043
6,115
(100.8
)
(100.6
)
Total noninterest income
49,787
26,845
30,455
22,371
27,548
85.5
80.7
Noninterest expense
Salaries and employee benefits
47,988
49,910
46,008
45,529
42,870
(3.9
)
11.9
Travel expense
1,715
1,618
1,634
2,064
1,927
6.0
(11.0
)
Professional services expense
2,855
1,999
2,874
3,024
2,797
42.8
2.1
Advertising and marketing expense
2,298
1,839
4,420
3,665
1,979
25.0
16.1
Occupancy expense
2,317
2,339
2,369
2,737
2,558
(0.9
)
(9.4
)
Technology expense
13,397
10,234
10,066
9,251
9,406
30.9
42.4
Equipment expense
3,677
3,320
3,685
3,745
3,769
10.8
(2.4
)
Other loan origination and maintenance expense
4,917
4,777
4,190
4,585
4,812
2.9
2.2
Renewable energy tax credit investment impairment
129
336
270
—
1,172
(61.6
)
(89.0
)
FDIC insurance
3,933
3,643
3,545
3,551
3,053
8.0
28.8
Other expense
5,927
3,501
6,161
2,656
3,869
69.3
53.2
Total noninterest expense
89,153
83,516
85,222
80,807
78,212
6.7
14.0
Income before taxes
61,909
36,572
31,202
13,132
13,229
