Live Oak's performance in the quarter, compared to the second quarter of 2025 and third quarter of 2024, includes these notable items:
Strong loan production of $1.65 billion accompanied by strong deposit growth of $695.9 million in the third quarter of 2025, with total assets growing by 6.0% and 16.3% to $14.67 billion compared to the second quarter of 2025 and third quarter of 2024, respectively
$96.3 million in capital was raised as a result of preferred stock offering in the third quarter of 2025
Net interest income increased 5.7% and 19.1% compared to the second quarter of 2025 and third quarter of 2024, respectively; while net interest margin increased five basis points during the third quarter of 2025 from 3.28% for the second quarter of 2025 to 3.33% and remained flat compared to the third quarter of 2024
Revenue (comprised of net interest income and noninterest income) increased 1.6% and 12.4% compared to the second quarter of 2025 and third quarter of 2024, respectively, and noninterest expense decreased 2.2% and increased 12.5% compared to the second quarter of 2025 and third quarter of 2024, respectively, which generated an 8.0% and 12.4% increase in pre-provision net revenue1 compared to the second quarter of 2025 and third quarter of 2024, respectively
Provision expense for credit losses of $22.2 million, a decrease of $1.0 million and $12.3 million compared to the second quarter of 2025 and third quarter of 2024, respectively
Subsequent to September 30, 2025, the Company completed its sale of Apiture, Inc. resulting in a pre-tax gain of approximately $24.0 million.
"Live Oak's third quarter results reflect the strength of our core banking operations and our continued commitment to serving small businesses across the country. We delivered strong loan production, were again named the SBA's leading 7(a) lender by dollar amount, had significant deposit growth, and drove total assets to $14.67 billion—a 16% increase year-over-year," said Live Oak Chairman and CEO James S. (Chip) Mahan III. "In addition to our operating performance, we further strengthened our capital position with the successful preferred stock offering in August, and an approximate $24 million gain from the sale of Apiture, which closed this week. These strategic moves position Live Oak for continued growth and resilience as we enter the final stretch of 2025."
Conference Call
Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, October 23, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 72227. 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.
Third Quarter 2025 Key Measures
(Dollars in thousands, except per share data)
Increase (Decrease)
3Q 2025
2Q 2025
Dollars
Percent
3Q 2024
Total revenue (1)
$
146,099
$
143,747
$
2,352
1.6
%
$
129,932
Total noninterest expense
87,285
89,293
(2,008
)
(2.2
)
77,589
Income before taxes
36,572
31,202
5,370
17.2
17,841
Effective tax rate
27.6
%
25.0
%
n/a
n/a
27.0
%
Net income attributable to common shareholders
$
25,562
$
23,428
$
2,134
9.1
%
$
13,025
Diluted earnings per common share
0.55
0.51
0.04
7.8
0.28
Loan and lease production
1,648,711
1,526,592
122,119
8.0
1,757,856
Total loans and leases
11,915,511
11,364,846
550,665
4.8
10,191,868
Total assets
14,665,902
13,831,208
834,694
6.0
12,607,346
Total deposits
13,290,723
12,594,790
695,933
5.5
11,400,547
(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
3Q 2025 Change vs.
3Q 2025
2Q 2025
1Q 2025
4Q 2024
3Q 2024
2Q 2025
3Q 2024
Interest income
%
%
Loans and fees on loans
$
211,599
$
204,513
$
195,616
$
194,821
$
192,170
3.5
10.1
Investment securities, taxable
12,175
11,648
11,089
10,490
9,750
4.5
24.9
Other interest earning assets
7,654
8,123
6,400
7,257
7,016
(5.8
)
9.1
Total interest income
231,428
224,284
213,105
212,568
208,936
3.2
10.8
Interest expense
Deposits
114,266
113,380
110,888
113,357
110,174
0.8
3.7
Borrowings
1,677
1,683
1,685
1,737
1,762
(0.4
)
(4.8
)
Total interest expense
115,943
115,063
112,573
115,094
111,936
0.8
3.6
Net interest income
115,485
109,221
100,532
97,474
97,000
5.7
19.1
Provision for credit losses
22,242
23,252
28,964
33,581
34,502
(4.3
)
(35.5
)
Net interest income after provision for credit losses
93,243
85,969
71,568
63,893
62,498
8.5
49.2
Noninterest income
Loan servicing revenue
8,812
8,565
8,298
8,524
8,040
2.9
9.6
Loan servicing asset revaluation
(4,360
)
(3,057
)
(4,728
)
(2,326
)
(4,207
)
(42.6
)
(3.6
)
Net gains on sales of loans
20,868
21,641
18,648
18,356
16,646
(3.6
)
25.4
Net (loss) gain on loans accounted for under the fair value option
(350
)
1,082
(1,034
)
195
2,255
(132.3
)
(115.5
)
Equity method investments (loss) income
(1,470
)
(2,716
)
(2,239
)
(2,739
)
(1,393
)
45.9
(5.5
)
Equity security investments gains, net
18
1,004
20
12
909
(98.2
)
(98.0
)
Lease income
2,179
3,103
2,573
2,456
2,424
(29.8
)
(10.1
)
Management fee income
—
—
—
—
1,116
—
(100.0
)
Other noninterest income
4,917
4,904
4,043
6,115
7,142
0.3
(31.2
)
Total noninterest income
30,614
34,526
25,581
30,593
32,932
(11.3
)
(7.0
)
Noninterest expense
Salaries and employee benefits
52,817
49,137
48,008
45,214
44,524
7.5
18.6
Travel expense
2,480
2,576
2,795
2,628
2,344
(3.7
)
5.8
Professional services expense
1,999
2,874
3,024
2,797
3,287
(30.4
)
(39.2
)
Advertising and marketing expense
1,839
4,420
3,665
1,979
2,473
(58.4
)
(25.6
)
Occupancy expense
2,339
2,369
2,737
2,558
2,807
(1.3
)
(16.7
)
Technology expense
10,234
10,066
9,251
9,406
9,081
1.7
12.7
Equipment expense
3,320
3,685
3,745
3,769
3,472
(9.9
)
(4.4
)
Other loan origination and maintenance expense
4,777
4,190
4,585
4,812
4,872
14.0
(1.9
)
Renewable energy tax credit investment impairment
336
270
—
1,172
115
24.4
192.2
FDIC insurance
3,643
3,545
3,551
3,053
1,933
2.8
88.5
Other expense
3,501
6,161
2,656
3,869
2,681
(43.2
)
30.6
Total noninterest expense
87,285
89,293
84,017
81,257
77,589
(2.2
)
12.5
Income before taxes
36,572
31,202
13,132
13,229
17,841
17.2
105.0
Income tax expense
10,106
7,815
3,464
3,386
4,816
29.3
109.8
Net income
