Document

“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.”

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.


	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	26,466		23,387		9,668		9,843		13,025		13.2	103.2
Net loss attributable to non-controlling interest	50		41		49		57		—		22.0	100.0
Net income attributable to Live Oak Bancshares, Inc.	26,516		23,428		9,717		9,900		13,025		13.2	103.6
Preferred stock dividends	954		—		—		—		—		100.0	100.0
Net income attributable to common shareholders	$	25,562	$	23,428	$	9,717	$	9,900	$	13,025	9.1	96.3
Earnings per common share
Basic	$	0.56	$	0.51	$	0.21	$	0.22	$	0.28	9.8	100.0
Diluted	$	0.55	$	0.51	$	0.21	$	0.22	$	0.28	7.8	96.4
Weighted average shares outstanding
Basic	45,780,794		45,634,741		45,377,965		45,224,470		45,073,482
Diluted	46,216,958		45,795,608		45,754,499		46,157,979		45,953,947


	As of the quarter ended										3Q 2025 Change vs.
	3Q 2025		2Q 2025		1Q 2025		4Q 2024		3Q 2024		2Q 2025	3Q 2024
Assets											%	%
Cash and due from banks	$	892,445	$	662,755	$	744,263	$	608,800	$	666,585	34.7	33.9

Certificates of deposit with other banks	250		250		250		250		250		—	—
Investment securities available-for-sale	1,373,219		1,325,206		1,312,680		1,248,203		1,233,466		3.6	11.3
Loans held for sale	360,693		350,791		367,955		346,002		359,977		2.8	0.2
Loans and leases held for investment (1)	11,554,818		11,014,055		10,693,911		10,233,374		9,831,891		4.9	17.5
Allowance for credit losses on loans and leases	(185,700)		(182,231)		(190,184)		(167,516)		(168,737)		(1.9)	(10.1)
Net loans and leases	11,369,118		10,831,824		10,503,727		10,065,858		9,663,154		5.0	17.7
Premises and equipment, net	241,140		246,493		259,113		264,059		267,032		(2.2)	(9.7)
Foreclosed assets	11,024		6,318		2,108		1,944		8,015		74.5	37.5
Servicing assets	62,491		60,359		56,911		56,144		52,553		3.5	18.9
Other assets	355,522		347,212		348,697		352,120		356,314		2.4	(0.2)
Total assets	$	14,665,902	$	13,831,208	$	13,595,704	$	12,943,380	$	12,607,346	6.0	16.3
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing	$	494,019	$	393,393	$	386,108	$	318,890	$	258,844	25.6	90.9
Interest-bearing	12,796,704		12,201,397		12,009,837		11,441,604		11,141,703		4.9	14.9
Total deposits	13,290,723		12,594,790		12,395,945		11,760,494		11,400,547		5.5	16.6
Borrowings	105,045		107,659		110,247		112,820		115,371		(2.4)	(9.0)
Other liabilities	67,585		61,494		58,065		66,570		83,672		9.9	(19.2)
Total liabilities	13,463,353		12,763,943		12,564,257		11,939,884		11,599,590		5.5	16.1
Shareholders’ equity
Preferred stock	96,266		—		—		—		—		—	—
Class A common stock (voting)	383,288		377,953		370,513		365,607		361,925		1.4	5.9
Class B common stock (non-voting)	—		—		—		—		—		—	—
Retained earnings	770,820		746,450		724,215		715,767		707,026		3.3	9.0
Accumulated other comprehensive loss	(52,151)		(61,514)		(67,698)		(82,344)		(61,195)		15.2	14.8
Total shareholders' equity attributed to Live Oak Bancshares, Inc.	1,198,223		1,062,889		1,027,030		999,030		1,007,756		12.7	18.9
Non-controlling interest	4,326		4,376		4,417		4,466		—		(1.1)	100.0
Total shareholders' equity	1,202,549		1,067,265		1,031,447		1,003,496		1,007,756		12.7	19.3
Total liabilities and shareholders’ equity	$	14,665,902	$	13,831,208	$	13,595,704	$	12,943,380	$	12,607,346	6.0	16.3


	Nine Months Ended
	September 30, 2025		September 30, 2024
Interest income
Loans and fees on loans	$	611,728	$	550,020
Investment securities, taxable	34,912		27,923
Other interest earning assets	22,177		21,861
Total interest income	668,817		599,804
Interest expense
Deposits	338,534		317,530
Borrowings	5,045		3,843
Total interest expense	343,579		321,373
Net interest income	325,238		278,431
Provision for credit losses	74,458		62,631
Net interest income after provision for credit losses	250,780		215,800
Noninterest income
Loan servicing revenue	25,675		23,011
Loan servicing asset revaluation	(12,145)		(9,829)
Net gains on sales of loans	61,157		42,543
Net (loss) gain on loans accounted for under the fair value option	(302)		2,208
Equity method investments (loss) income	(6,425)		(8,182)
Equity security investments gain (losses), net	1,042		541
Lease income	7,855		7,300
Management fee income	—		7,658
Other noninterest income	13,864		27,938
Total noninterest income	90,721		93,188
Noninterest expense
Salaries and employee benefits	149,962		138,054
Travel expense	7,851		7,110
Professional services expense	7,897		8,226
Advertising and marketing expense	9,924		9,169
Occupancy expense	7,445		7,442
Technology expense	29,551		24,800
Equipment expense	10,750		10,057
Other loan origination and maintenance expense	13,552		12,442
Renewable energy tax credit investment impairment (recovery)	606		(642)
FDIC insurance	10,739		7,782

Other expense	12,318		8,542
Total noninterest expense	260,595		232,982
Income before taxes	80,906		76,006
Income tax expense	21,385		8,432
Net income	59,521		67,574
Net loss attributable to non-controlling interest	140		—
Net income attributable to Live Oak Bancshares, Inc.	59,661		67,574
Preferred stock dividends	954		—
Net income attributable to common shareholders	$	58,707	$	67,574
Earnings per common share
Basic	$	1.29	$	1.50
Diluted	$	1.28	$	1.48
Weighted average shares outstanding
Basic	45,632,313		44,937,409
Diluted	45,956,835		45,707,245


	As of and for the three months ended
	3Q 2025			2Q 2025			1Q 2025			4Q 2024			3Q 2024
Income Statement Data
Net income attributable to common shareholders	$	25,562		$	23,428		$	9,717		$	9,900		$	13,025
Per Common Share
Net income, diluted	$	0.55		$	0.51		$	0.21		$	0.22		$	0.28
Dividends declared - common	0.03			0.03			0.03			0.03			0.03
Book value per common share	24.03			23.36			22.62			22.12			22.32
Tangible book value per common share (1)	23.96			23.29			22.55			22.05			22.24
Performance Ratios
Return on average assets (annualized)	0.72		%	0.68		%	0.30		%	0.31		%	0.43		%
Return on average common equity (annualized)	9.32			8.85			3.78			3.85			5.21
Net interest margin	3.33			3.28			3.20			3.15			3.33
Efficiency ratio (1)	59.74			62.12			66.62			63.45			59.72
Noninterest income to total revenue	20.95			24.02			20.28			23.89			25.35
Selected Loan Metrics
Loans and leases originated	$	1,648,711		$	1,526,592		$	1,396,223		$	1,421,118		$	1,757,856
Outstanding balance of sold loans serviced	5,563,363			5,321,284			4,949,962			4,715,895			4,452,750
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)	1.65		%	1.70		%	1.83		%	1.69		%	1.78		%
Net charge-offs (3)	$	16,816		$	31,445		$	6,774		$	33,566		$	1,710
Net charge-offs to average loans and leases held for investment (2) (3)	0.61		%	1.19		%	0.27		%	1.39		%	0.08		%

Nonperforming loans and leases at historical cost (3)
Unguaranteed	$	76,887		$	59,555		$	99,907		$	81,412		$	49,398
Guaranteed	379,381			336,777			322,993			222,885			166,177
Total	456,268			396,332			422,900			304,297			215,575
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)	0.68		%	0.56		%	0.96		%	0.82		%	0.52		%

Nonperforming loans at fair value (4)
Unguaranteed	$	6,775		$	8,873		$	9,938		$	9,115		$	8,672
Guaranteed	54,887			60,453			58,100			54,873			49,822
Total	61,662			69,326			68,038			63,988			58,494
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)	2.42		%	2.92		%	3.14		%	2.77		%	2.53		%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)	10.51		%	10.67		%	10.67		%	11.04		%	11.19		%
Tier 1 leverage capital (to average assets)	8.57			7.90			8.03			8.21			8.60

Notes to Quarterly Selected Financial Data


	Three Months Ended September 30, 2025						Three Months Ended June 30, 2025
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	701,059	$	7,654	4.33	%	$	727,715	$	8,123	4.48	%

Investment securities	1,418,810		12,175		3.40		1,408,942		11,648		3.32
Loans held for sale	396,084		8,103		8.12		381,531		8,008		8.42
Loans and leases held for investment (1)	11,249,234		203,496		7.18		10,843,303		196,505		7.27
Total interest-earning assets	13,765,187		231,428		6.67		13,361,491		224,284		6.73
Less: Allowance for credit losses on loans and leases	(182,001)						(186,022)
Noninterest-earning assets	530,529						539,485
Total assets	$	14,113,715					$	13,714,954
Interest-bearing liabilities:
Interest-bearing checking	$	366,699	$	4,082	4.42	%	$	350,978	$	3,969	4.54	%
Savings	6,608,380		58,657		3.52		6,241,053		56,529		3.63
Money market accounts	131,756		84		0.25		128,757		93		0.29
Certificates of deposit	5,272,818		51,443		3.87		5,392,494		52,789		3.93
Total deposits	12,379,653		114,266		3.66		12,113,282		113,380		3.75
Borrowings	106,744		1,677		6.23		109,463		1,683		6.17
Total interest-bearing liabilities	12,486,397		115,943		3.68		12,222,745		115,063		3.78
Noninterest-bearing deposits	401,916						375,503
Noninterest-bearing liabilities	63,133						53,717
Shareholders' equity	1,157,893						1,058,572
Non-controlling interest	4,376						4,417
Total liabilities and shareholders' equity	$	14,113,715					$	13,714,954
Net interest income and interest rate spread			$	115,485	2.99	%			$	109,221	2.95	%
Net interest margin					3.33						3.28
Ratio of average interest-earning assets to average interest-bearing liabilities					110.24	%					109.32	%


	As of and for the three months ended
	3Q 2025			2Q 2025			1Q 2025			4Q 2024			3Q 2024
Total shareholders’ equity	$	1,202,549		$	1,067,265		$	1,031,447		$	1,003,496		$	1,007,756
Less:
Preferred stock	96,266			—			—			—			—
Non-controlling interest	4,326			—			—			—			—
Total common shareholders' equity	$	1,101,957		$	1,067,265		$	1,031,447		$	1,003,496		$	1,007,756
Less:
Goodwill	1,797			1,797			1,797			1,797			1,797
Other intangible assets	1,453			1,491			1,529			1,568			1,606
Tangible common shareholders’ equity (a)	$	1,098,707		$	1,063,977		$	1,028,121		$	1,000,131		$	1,004,353
Shares outstanding (c)	45,855,739			45,686,081			45,589,633			45,359,425			45,151,691
Total assets	$	14,665,902		$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346
Less:
Goodwill	1,797			1,797			1,797			1,797			1,797
Other intangible assets	1,453			1,491			1,529			1,568			1,606
Tangible assets (b)	$	14,662,652		$	13,827,920		$	13,592,378		$	12,940,015		$	12,603,943
Tangible common shareholders’ equity to tangible assets (a/b)	7.49		%	7.69		%	7.56		%	7.73		%	7.97		%
Tangible book value per common share (a/c)	$	23.96		$	23.29		$	22.55		$	22.05		$	22.24
Efficiency ratio:
Noninterest expense (d)	$	87,285		$	89,293		$	84,017		$	81,257		$	77,589
Net interest income	115,485			109,221			100,532			97,474			97,000
Noninterest income	30,614			34,526			25,581			30,593			32,932
Total revenue (e)	$	146,099		$	143,747		$	126,113		$	128,067		$	129,932
Efficiency ratio (d/e)	59.74		%	62.12		%	66.62		%	63.45		%	59.72		%
Pre-provision net revenue (e-d)	$	58,814		$	54,454		$	42,096		$	46,810		$	52,343

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.


(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