Live Oak Bancshares, Inc. Reports First Quarter 2026 Results

WILMINGTON, N.C., April 22, 2026 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported first quarter of 2026 net income attributable to common shareholders of $27.9 million, or $0.60 per diluted common share.

Live Oak’s performance in the quarter, compared to the fourth quarter of 2025 and first quarter of 2025, includes these notable items:

• Strong loan production of $1.37 billion accompanied by strong deposit growth of $146.4 million in the first quarter of 2026, with total assets growing by 1.1% and 12.5% to $15.30 billion compared to the fourth quarter of 2025 and first quarter of 2025, respectively
• Net interest income decreased 3.0% and increased 18.8% compared to the fourth quarter of 2025 and first quarter of 2025, respectively. Net interest margin decreased 11 basis points during the first quarter of 2026 from 3.38% for the fourth quarter of 2025 to 3.27% and increased 7 basis points compared to the first quarter of 2025
• Revenue (comprised of net interest income and noninterest income) decreased 15.9% and increased 18.4% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, and noninterest expense decreased 4.3% and increased 5.6% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, which generated a 28.1% decrease and 43.0% increase in pre-provision net revenue1 compared to the fourth quarter of 2025 and first quarter of 2025, respectively. The decrease in revenue and pre-provision net revenue1 compared to the fourth quarter of 2025 is largely related to a $24.1 million pre-tax gain related to the sale of Apiture, Inc. and $9.0 million gain arising from the sale of a portfolio investment in the fourth quarter of 2025
• Provision expense for credit losses of $20.1 million for the first quarter of 2026, decreased $1.7 million and $8.9 million compared to the fourth quarter of 2025 and first quarter of 2025, respectively

“We are pleased with the momentum we’ve carried into 2026. Our first quarter results reflect the strength of our differentiated model and our commitment to serving America’s small business owners,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We delivered strong loan production, deposit growth, and stable credit performance during the quarter. We remain focused on our key initiatives, Live Oak Express and business checking, in addition to balance sheet strength and prudent capital management. We believe we are well positioned to support our customers, manage through a dynamic environment, and continue building long-term value for shareholders.”

Conference Call

Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, April 23, 2026, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 98602. 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: +1 646.564.2877
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.

First Quarter 2026 Key Measures

(Dollars in thousands, except per share data)     1Q 2026 Change vs.       4Q 2025 1Q 2025 1Q 2026 4Q 2025 1Q 2025 $ % $ %Total revenue(1)$145,474  $172,907  $122,903  $(27,433) (15.9)        % $22,571  18.4%Total noninterest expense 85,293   89,153   80,807   (3,860) (4.3)  4,486  5.6 Provision for credit losses 20,100   21,845   28,964   (1,745) (8.0)  (8,864) (30.6)Income before taxes 40,081   61,909   13,132   (21,828) (35.3)  26,949  205.2 Effective tax rate 25.3%  25.5%  26.4% n/a n/a n/a n/aNet income attributable to common shareholders$27,946  $44,116  $9,717  $(16,170) (36.7)        % $18,229  187.6%Diluted earnings per common share 0.60   0.95   0.21   (0.35) (36.8)  0.39  185.7 Loan and lease production 1,368,311   1,638,113   1,396,223   (269,802) (16.5)  (27,912) (2.0)Total loans and leases 12,593,529   12,393,677   11,061,866   199,852  1.6   1,531,663  13.8 Total assets 15,300,033   15,134,778   13,595,704   165,255  1.1   1,704,329  12.5 Total deposits 13,835,058   13,688,659   12,395,945   146,399  1.1   1,439,113  11.6                           

(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; 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; 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; risks relating to the deployment and use of artificial intelligence by the Company, its customers, and counterparties; 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 | 910.202.6926
Claire 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 1Q 2026 Change vs. 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2025 1Q 2025Interest income          % %Loans and fees on loans$214,129  $218,852  $211,599  $204,513  $195,616  (2.2) 9.5 Investment securities, taxable 13,009   12,679   12,175   11,648   11,089  2.6  17.3 Other interest earning assets 6,726   8,124   7,654   8,123   6,400  (17.2) 5.1 Total interest income 233,864   239,655   231,428   224,284   213,105  (2.4) 9.7 Interest expense             Deposits 112,847   114,879   114,266   113,380   110,888  (1.8) 1.8 Borrowings 1,617   1,656   1,677   1,683   1,685  (2.4) (4.0)Total interest expense 114,464   116,535   115,943   115,063   112,573  (1.8) 1.7 Net interest income 119,400   123,120   115,485   109,221   100,532  (3.0) 18.8 Provision for credit losses 20,100   21,845   22,242   23,252   28,964  (8.0) (30.6)Net interest income after provision for credit losses 99,300   101,275   93,243   85,969   71,568  (2.0) 38.7 Noninterest income             Loan servicing revenue 9,094   9,227   8,812   8,565   8,298  (1.4) 9.6 Loan servicing asset revaluation (3,487)  (3,932)  (4,360)  (3,057)  (4,728) 11.3  26.2 Net gains on sales of loans 15,425   12,313   17,099   17,570   15,438  25.3  (0.1)Net (loss) gain on loans accounted for under the fair value option (1,165)  1,518   (350)  1,082   (1,034) (176.7) (12.7)Equity method investments (loss) income (817)  23,812   (1,470)  (2,716)  (2,239) (103.4) 63.5 Equity security investments gains, net —   4,691   18   1,004   20  (100.0) (100.0)Lease income 2,135   2,196   2,179   3,103   2,573  (2.8) (17.0)Other noninterest income 4,889   (38)  4,917   4,904   4,043  12,965.8  20.9 Total noninterest income 26,074   49,787   26,845   30,455   22,371  (47.6) 16.6 Noninterest expense             Salaries and employee benefits 49,354   47,988   49,910   46,008   45,529  2.8  8.4 Travel expense 1,463   1,715   1,618   1,634   2,064  (14.7) (29.1)Professional services expense 2,516   2,855   1,999   2,874   3,024  (11.9) (16.8)Advertising and marketing expense 3,051   2,298   1,839   4,420   3,665  32.8  (16.8)Occupancy expense 2,410   2,317   2,339   2,369   2,737  4.0  (11.9)Technology expense 9,749   13,397   10,234   10,066   9,251  (27.2) 5.4 Equipment expense 3,693   3,677   3,320   3,685   3,745  0.4  (1.4)Other loan origination and maintenance expense 5,919   4,917   4,777   4,190   4,585  20.4  29.1 Renewable energy tax credit investment impairment —   129   336   270   —  (100.0) — FDIC insurance 4,401   3,933   3,643   3,545   3,551  11.9  23.9 Other expense 2,737   5,927   3,501   6,161   2,656  (53.8) 3.0 Total noninterest expense 85,293   89,153   83,516   85,222   80,807  (4.3) 5.6 Income before taxes 40,081   61,909   36,572   31,202   13,132  (35.3) 205.2 Income tax expense 10,134   15,787   10,106   7,815   3,464  (35.8) 192.6 Net income 29,947   46,122   26,466   23,387   9,668  (35.1) 209.8 Net loss attributable to non-controlling interest 93   88   50   41   49  5.7  89.8 Net income attributable to Live Oak Bancshares, Inc. 30,040   46,210   26,516   23,428   9,717  (35.0) 209.1 Preferred stock dividends 2,094   2,094   954   —   —  —  100.0 Net income attributable to common shareholders$27,946  $44,116  $25,562  $23,428  $9,717  (36.7) 187.6 Earnings per common share             Basic$0.61  $0.96  $0.56  $0.51  $0.21  (36.5) 190.5 Diluted$0.60  $0.95  $0.55  $0.51  $0.21  (36.8) 185.7 Weighted average shares outstanding             Basic 46,138,609   45,906,268   45,780,794   45,634,741   45,377,965     Diluted 46,509,040   46,298,408   46,216,958   45,795,608   45,754,499     

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)

 As of the quarter ended 1Q 2026 Change vs. 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2025 1Q 2025Assets          % %Cash and due from banks$816,135  $864,904  $892,445  $662,755  $744,263  (5.6) 9.7 Certificates of deposit with other banks 250   250   250   250   250  —  — Investment securities available-for-sale 1,434,538   1,427,401   1,373,219   1,325,206   1,312,680  0.5  9.3 Loans held for sale 435,313   420,055   360,693   350,791   367,955  3.6  18.3 Loans and leases held for investment(1) 12,158,216   11,973,622   11,554,818   11,014,055   10,693,911  1.5  13.7 Allowance for credit losses on loans and leases (193,279)  (192,264)  (185,700)  (182,231)  (190,184) (0.5) (1.6)Net loans and leases 11,964,937   11,781,358   11,369,118   10,831,824   10,503,727  1.6  13.9 Premises and equipment, net 235,329   240,203   241,140   246,493   259,113  (2.0) (9.2)Foreclosed assets 12,005   8,208   11,024   6,318   2,108  46.3  469.5 Servicing assets 64,677   63,155   62,491   60,359   56,911  2.4  13.6 Other assets 336,849   329,244   355,522   347,212   348,697  2.3  (3.4)Total assets$15,300,033  $15,134,778  $14,665,902  $13,831,208  $13,595,704  1.1  12.5 Liabilities and shareholders’ equity             Liabilities             Deposits:             Noninterest-bearing$510,917  $515,051  $494,019  $393,393  $386,108  (0.8) 32.3 Interest-bearing 13,324,141   13,173,608   12,796,704   12,201,397   12,009,837  1.1  10.9 Total deposits 13,835,058   13,688,659   13,290,723   12,594,790   12,395,945  1.1  11.6 Borrowings 99,746   102,404   105,045   107,659   110,247  (2.6) (9.5)Other liabilities 83,468   89,609   67,585   61,494   58,065  (6.9) 43.7 Total liabilities 14,018,272   13,880,672   13,463,353   12,763,943   12,564,257  1.0  11.6 Shareholders’ equity             Preferred stock 96,266   96,266   96,266   —   —  —  100.0 Class A common stock (voting) 392,258   388,389   383,288   377,953   370,513  1.0  5.9 Class B common stock (non-voting) —   —   —   —   —  —  — Retained earnings 836,444   809,885   770,820   746,450   724,215  3.3  15.5 Accumulated other comprehensive loss (47,352)  (44,672)  (52,151)  (61,514)  (67,698) (6.0) 30.1 Total shareholders' equity attributed to Live Oak Bancshares, Inc. 1,277,616   1,249,868   1,198,223   1,062,889   1,027,030  2.2  24.4 Non-controlling interest 4,145   4,238   4,326   4,376   4,417  (2.2) (6.2)Total shareholders' equity 1,281,761   1,254,106   1,202,549   1,067,265   1,031,447  2.2  24.3 Total liabilities and shareholders’ equity$15,300,033  $15,134,778  $14,665,902  $13,831,208  $13,595,704  1.1  12.5                           

(1)  Includes $244.9 million, $260.6 million, $280.3 million, $303.8 million and $316.8 million loans measured at fair value for the quarters ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.

     
Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)

 As of and for the three months ended 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025Income Statement Data         Net income attributable to common shareholders$27,946  $44,116  $25,562  $23,428  $9,717 Per Common Share         Net income, diluted$0.60  $0.95  $0.55  $0.51  $0.21 Dividends declared - common 0.03   0.03   0.03   0.03   0.03 Book value per common share 25.55   25.06   24.03   23.36   22.62 Tangible book value per common share(1) 25.46   24.97   23.96   23.29   22.55 Performance Ratios         Return on average assets (annualized) 0.74%  1.19%  0.72%  0.68%  0.30%Return on average common equity (annualized) 9.39   15.25   9.32   8.85   3.78 Net interest margin 3.27   3.38   3.33   3.28   3.20 Efficiency ratio(1) 58.63   51.56   58.68   61.01   65.75 Noninterest income to total revenue 17.92   28.79   18.86   21.80   18.20 Selected Loan Metrics         Loans and leases originated$1,368,311  $1,638,113  $1,648,711  $1,526,592  $1,396,223 Outstanding balance of sold loans serviced 5,943,787   5,599,724   5,563,363   5,321,284   4,949,962 Asset Quality Ratios         Allowance for credit losses to loans and leases held for investment(3) 1.62%  1.64%  1.65%  1.70%  1.83%Net charge-offs(3)$18,585  $13,739  $16,816  $31,445  $6,774 Net charge-offs to average loans and leases held for investment(2) (3) 0.63%  0.48%  0.61%  1.19%  0.27%          Nonperforming loans and leases at historical cost(3)         Unguaranteed$116,791  $101,371  $76,887  $59,555  $99,907 Guaranteed 327,409   399,786   379,381   336,777   322,993 Total 444,200   501,157   456,268   396,332   422,900 Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment(3) 0.98%  0.87%  0.68%  0.56%  0.96%          Nonperforming loans at fair value(4)         Unguaranteed$6,884  $7,715  $6,775  $8,873  $9,938 Guaranteed 54,679   53,887   54,887   60,453   58,100 Total 61,563   61,602   61,662   69,326   68,038 Unguaranteed nonperforming fair value loans to fair value loans held for investment(4) 2.81%  2.96%  2.42%  2.92%  3.14%          Capital Ratios         Common equity tier 1 capital (to risk-weighted assets) 10.63%  10.53%  10.51%  10.67%  10.67%Tier 1 leverage capital (to average assets) 8.47   8.48   8.57   7.90   8.03                     

Notes to Quarterly Selected Financial Data
(1)  See accompanying GAAP to Non-GAAP Reconciliation.
(2)  Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3)  Loans and leases at historical cost only (excludes loans measured at fair value).
(4)  Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)

 Three Months Ended
March 31, 2026 Three Months Ended
December 31, 2025 Three Months Ended
March 31, 2025 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/RateInterest-earning assets:                 Interest-earning balances in other banks$729,938  $6,726 3.74% $803,095  $8,124 4.01% $581,267  $6,400 4.47%Investment securities 1,492,023   13,009 3.54   1,465,824   12,679 3.43   1,379,797   11,089 3.26 Loans held for sale 514,501   9,792 7.72   420,809   8,240 7.77   407,953   8,612 8.56 Loans and leases held for investment(1) 12,081,396   204,337 6.86   11,777,219   210,612 7.09   10,388,872   187,004 7.30 Total interest-earning assets 14,817,858   233,864 6.40   14,466,947   239,655 6.57   12,757,889   213,105 6.77 Less: Allowance for credit losses on loans and leases (190,522)      (186,252)      (165,320)    Noninterest-earning assets 547,970       546,969       534,133     Total assets$15,175,306      $14,827,664      $13,126,702     Interest-bearing liabilities:                 Savings$6,910,397  $55,420 3.25% $6,833,148  $57,668 3.35% $5,540,147  $51,604 3.78%Certificates of deposit 5,730,803   53,337 3.77   5,498,643   52,888 3.82   5,563,004   55,235 4.03 Other interest-bearing deposits 579,330   4,090 2.86   559,101   4,323 3.07   478,399   4,049 3.43 Total deposits 13,220,530   112,847 3.46   12,890,892   114,879 3.54   11,581,550   110,888 3.88 Borrowings 103,329   1,617 6.35   104,219   1,656 6.30   111,919   1,685 6.11 Total interest-bearing liabilities 13,323,859   114,464 3.48   12,995,111   116,535 3.56   11,693,469   112,573 3.90 Noninterest-bearing deposits 491,301       492,501       342,482     Noninterest-bearing liabilities 69,596       82,684       58,739     Shareholders' equity 1,286,313       1,253,043       1,027,547     Non-controlling interest 4,237       4,325       4,465     Total liabilities and shareholders' equity$15,175,306      $14,827,664      $13,126,702     Net interest income and interest rate spread  $119,400 2.92%   $123,120 3.01%   $100,532 2.87%Net interest margin    3.27      3.38      3.20 Ratio of average interest-earning assets to average interest-bearing liabilities    111.21%     111.33%     109.10%                     

(1)   Average loan and lease balances include non-accruing loans and leases.

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)

 As of and for the three months ended 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025Total shareholders’ equity$1,281,761  $1,254,106  $1,202,549  $1,067,265  $1,031,447 Less:         Preferred stock 96,266   96,266   96,266   —   — Non-controlling interest 4,145   4,238   4,326   —   — Total common shareholders' equity$1,181,350  $1,153,602  $1,101,957  $1,067,265  $1,031,447 Less:         Goodwill 1,797   1,797   1,797   1,797   1,797 Other intangible assets 2,089   2,165   1,453   1,491   1,529 Tangible common shareholders’ equity (a)$1,177,464  $1,149,640  $1,098,707  $1,063,977  $1,028,121 Shares outstanding (c) 46,240,691   46,032,402   45,855,739   45,686,081   45,589,633 Total assets$15,300,033  $15,134,778  $14,665,902  $13,831,208  $13,595,704 Less:         Goodwill 1,797   1,797   1,797   1,797   1,797 Other intangible assets 2,089   2,165   1,453   1,491   1,529 Tangible assets (b)$15,296,147  $15,130,816  $14,662,652  $13,827,920  $13,592,378 Tangible common shareholders’ equity to tangible assets (a/b) 7.70%  7.60%  7.49%  7.69%  7.56%Tangible book value per common share (a/c)$25.46  $24.97  $23.96  $23.29  $22.55 Efficiency ratio:         Noninterest expense (d)$85,293  $89,153  $83,516  $85,222  $80,807 Net interest income 119,400   123,120   115,485   109,221   100,532 Noninterest income 26,074   49,787   26,845   30,455   22,371 Total revenue (e)$145,474  $172,907  $142,330  $139,676  $122,903 Efficiency ratio (d/e) 58.63%  51.56%  58.68%  61.01%  65.75%Pre-provision net revenue (e-d)$60,181  $83,754  $58,814  $54,454  $42,096                     

This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.