Document


(Dollars in thousands, except per share data)										2Q 2026 Change vs.
										1Q 2026				2Q 2025
	2Q 2026			1Q 2026			2Q 2025			$		%		$		%
Total revenue (1)	$	156,145		$	145,474		$	139,676		$	10,671	7.3	%	$	16,469	11.8	%
Total noninterest expense	84,525			85,293			85,222			(768)		(0.9)		(697)		(0.8)
Provision for credit losses	25,800			20,100			23,252			5,700		28.4		2,548		11.0
Income before taxes	45,820			40,081			31,202			5,739		14.3		14,618		46.8
Effective tax rate	19.9		%	25.3		%	25.0		%	n/a		n/a		n/a		n/a
Net income attributable to common shareholders	$	34,701		$	27,946		$	23,428		$	6,755	24.2	%	$	11,273	48.1	%
Diluted earnings per common share	0.74			0.60			0.51			0.14		23.3		0.23		45.1
Loan and lease production	1,548,432			1,368,311			1,526,592			180,121		13.2		21,840		1.4

Total loans and leases	13,142,671			12,593,529			11,364,846			549,142		4.4		1,777,825		15.6

Total assets	16,038,141			15,300,033			13,831,208			738,108		4.8		2,206,933		16.0
Total deposits	14,547,526			13,835,058			12,594,790			712,468		5.1		1,952,736		15.5

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.


	Three Months Ended										2Q 2026 Change vs.
	2Q 2026		1Q 2026		4Q 2025		3Q 2025		2Q 2025		1Q 2026	2Q 2025
Interest income											%	%
Loans and fees on loans	$	221,705	$	214,129	$	218,852	$	211,599	$	204,513	3.5	8.4
Investment securities, taxable	13,411		13,009		12,679		12,175		11,648		3.1	15.1
Other interest earning assets	6,601		6,726		8,124		7,654		8,123		(1.9)	(18.7)
Total interest income	241,717		233,864		239,655		231,428		224,284		3.4	7.8
Interest expense
Deposits	114,776		112,847		114,879		114,266		113,380		1.7	1.2
Borrowings	1,603		1,617		1,656		1,677		1,683		(0.9)	(4.8)
Total interest expense	116,379		114,464		116,535		115,943		115,063		1.7	1.1
Net interest income	125,338		119,400		123,120		115,485		109,221		5.0	14.8
Provision for credit losses	25,800		20,100		21,845		22,242		23,252		28.4	11.0
Net interest income after provision for credit losses	99,538		99,300		101,275		93,243		85,969		0.2	15.8
Noninterest income
Loan servicing revenue	9,194		9,094		9,227		8,812		8,565		1.1	7.3
Loan servicing asset revaluation	(4,278)		(3,487)		(3,932)		(4,360)		(3,057)		(22.7)	(39.9)
Net gains on sales of loans	17,554		15,425		12,313		17,099		17,570		13.8	(0.1)
Net gain (loss) on loans accounted for under the fair value option	291		(1,165)		1,518		(350)		1,082		125.0	(73.1)
Equity method investments income (loss)	74		(817)		23,812		(1,470)		(2,716)		109.1	102.7
Equity security investments gains, net	—		—		4,691		18		1,004		—	(100.0)
Lease income	2,238		2,135		2,196		2,179		3,103		4.8	(27.9)

Other noninterest income	5,734		4,889		(38)		4,917		4,904		17.3	16.9
Total noninterest income	30,807		26,074		49,787		26,845		30,455		18.2	1.2
Noninterest expense
Salaries and employee benefits	48,776		49,354		47,988		49,910		46,008		(1.2)	6.0
Travel expense	1,933		1,463		1,715		1,618		1,634		32.1	18.3
Professional services expense	2,938		2,516		2,855		1,999		2,874		16.8	2.2
Advertising and marketing expense	2,734		3,051		2,298		1,839		4,420		(10.4)	(38.1)
Occupancy expense	2,364		2,410		2,317		2,339		2,369		(1.9)	(0.2)
Technology expense	9,608		9,749		13,397		10,234		10,066		(1.4)	(4.5)
Equipment expense	3,662		3,693		3,677		3,320		3,685		(0.8)	(0.6)
Other loan origination and maintenance expense	4,864		5,919		4,917		4,777		4,190		(17.8)	16.1
Renewable energy tax credit investment impairment	26		—		129		336		270		100.0	(90.4)
FDIC insurance	4,788		4,401		3,933		3,643		3,545		8.8	35.1

Other expense	2,832		2,737		5,927		3,501		6,161		3.5	(54.0)
Total noninterest expense	84,525		85,293		89,153		83,516		85,222		(0.9)	(0.8)
Income before taxes	45,820		40,081		61,909		36,572		31,202		14.3	46.8
Income tax expense	9,116		10,134		15,787		10,106		7,815		(10.0)	16.6
Net income	36,704		29,947		46,122		26,466		23,387		22.6	56.9
Net loss attributable to non-controlling interest	91		93		88		50		41		(2.2)	122.0
Net income attributable to Live Oak Bancshares, Inc.	36,795		30,040		46,210		26,516		23,428		22.5	57.1
Preferred stock dividends	2,094		2,094		2,094		954		—		—	100.0
Net income attributable to common shareholders	$	34,701	$	27,946	$	44,116	$	25,562	$	23,428	24.2	48.1
Earnings per common share
Basic	$	0.75	$	0.61	$	0.96	$	0.56	$	0.51	23.0	47.1
Diluted	$	0.74	$	0.60	$	0.95	$	0.55	$	0.51	23.3	45.1
Weighted average shares outstanding
Basic	46,265,757		46,138,609		45,906,268		45,780,794		45,634,741
Diluted	46,594,482		46,509,040		46,298,408		46,216,958		45,795,608


	As of the quarter ended										2Q 2026 Change vs.
	2Q 2026		1Q 2026		4Q 2025		3Q 2025		2Q 2025		1Q 2026	2Q 2025
Assets											%	%
Cash and due from banks	$	927,630	$	816,135	$	864,904	$	892,445	$	662,755	13.7	40.0

Certificates of deposit with other banks	250		250		250		250		250		—	—
Investment securities available-for-sale	1,467,855		1,434,538		1,427,401		1,373,219		1,325,206		2.3	10.8
Loans held for sale	511,812		435,313		420,055		360,693		350,791		17.6	45.9
Loans and leases held for investment (1)	12,630,859		12,158,216		11,973,622		11,554,818		11,014,055		3.9	14.7
Allowance for credit losses on loans and leases	(193,417)		(193,279)		(192,264)		(185,700)		(182,231)		(0.1)	(6.1)
Net loans and leases	12,437,442		11,964,937		11,781,358		11,369,118		10,831,824		3.9	14.8
Premises and equipment, net	231,198		235,329		240,203		241,140		246,493		(1.8)	(6.2)
Foreclosed assets	11,017		12,005		8,208		11,024		6,318		(8.2)	74.4
Servicing assets	66,733		64,677		63,155		62,491		60,359		3.2	10.6
Other assets	384,204		336,849		329,244		355,522		347,212		14.1	10.7
Total assets	$	16,038,141	$	15,300,033	$	15,134,778	$	14,665,902	$	13,831,208	4.8	16.0
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing	$	605,237	$	510,917	$	515,051	$	494,019	$	393,393	18.5	53.9
Interest-bearing	13,942,289		13,324,141		13,173,608		12,796,704		12,201,397		4.6	14.3
Total deposits	14,547,526		13,835,058		13,688,659		13,290,723		12,594,790		5.1	15.5
Borrowings	99,766		99,746		102,404		105,045		107,659		—	(7.3)
Other liabilities	73,931		83,468		89,609		67,585		61,494		(11.4)	20.2
Total liabilities	14,721,223		14,018,272		13,880,672		13,463,353		12,763,943		5.0	15.3
Shareholders’ equity
Preferred stock	96,266		96,266		96,266		96,266		—		—	100.0
Class A common stock (voting)	399,396		392,258		388,389		383,288		377,953		1.8	5.7
Class B common stock (non-voting)	—		—		—		—		—		—	—
Retained earnings	869,757		836,444		809,885		770,820		746,450		4.0	16.5
Accumulated other comprehensive loss	(52,555)		(47,352)		(44,672)		(52,151)		(61,514)		(11.0)	14.6
Total shareholders' equity attributed to Live Oak Bancshares, Inc.	1,312,864		1,277,616		1,249,868		1,198,223		1,062,889		2.8	23.5
Non-controlling interest	4,054		4,145		4,238		4,326		4,376		(2.2)	(7.4)
Total shareholders' equity	1,316,918		1,281,761		1,254,106		1,202,549		1,067,265		2.7	23.4
Total liabilities and shareholders’ equity	$	16,038,141	$	15,300,033	$	15,134,778	$	14,665,902	$	13,831,208	4.8	16.0


	Six Months Ended
	June 30, 2026		June 30, 2025
Interest income
Loans and fees on loans	$	435,834	$	400,129
Investment securities, taxable	26,420		22,737
Other interest earning assets	13,327		14,523
Total interest income	475,581		437,389
Interest expense
Deposits	227,623		224,268
Borrowings	3,220		3,368
Total interest expense	230,843		227,636
Net interest income	244,738		209,753
Provision for credit losses	45,900		52,216
Net interest income after provision for credit losses	198,838		157,537
Noninterest income
Loan servicing revenue	18,288		16,863
Loan servicing asset revaluation	(7,765)		(7,785)
Net gains on sales of loans	32,979		33,008
Net (loss) gain on loans accounted for under the fair value option	(874)		48
Equity method investments (loss) income	(743)		(4,955)
Equity security investments gain (losses), net	—		1,024
Lease income	4,373		5,676

Other noninterest income	10,623		8,947
Total noninterest income	56,881		52,826
Noninterest expense
Salaries and employee benefits	98,130		91,537
Travel expense	3,396		3,698
Professional services expense	5,454		5,898
Advertising and marketing expense	5,785		8,085
Occupancy expense	4,774		5,106
Technology expense	19,357		19,317
Equipment expense	7,355		7,430
Other loan origination and maintenance expense	10,783		8,775
Renewable energy tax credit investment impairment	26		270
FDIC insurance	9,189		7,096

Other expense	5,569		8,817
Total noninterest expense	169,818		166,029
Income before taxes	85,901		44,334
Income tax expense	19,250		11,279
Net income	66,651		33,055
Net loss attributable to non-controlling interest	184		90
Net income attributable to Live Oak Bancshares, Inc.	66,835		33,145
Preferred stock dividends	4,188		—
Net income attributable to common shareholders	$	62,647	$	33,145
Earnings per common share
Basic	$	1.36	$	0.72
Diluted	$	1.35	$	0.72
Weighted average shares outstanding
Basic	46,202,534		45,556,842
Diluted	46,552,112		45,825,543


	As of and for the three months ended
	2Q 2026			1Q 2026			4Q 2025			3Q 2025			2Q 2025
Income Statement Data
Net income attributable to common shareholders	$	34,701		$	27,946		$	44,116		$	25,562		$	23,428
Per Common Share
Net income, diluted	$	0.74		$	0.60		$	0.95		$	0.55		$	0.51
Dividends declared - common	0.03			0.03			0.03			0.03			0.03
Book value per common share	26.29			25.55			25.06			24.03			23.36
Tangible book value per common share (1)	26.20			25.46			24.97			23.96			23.29
Performance Ratios
Return on average assets (annualized)	0.90		%	0.74		%	1.19		%	0.72		%	0.68		%
Return on average common equity (annualized)	11.36			9.39			15.25			9.32			8.85
Net interest margin	3.33			3.27			3.38			3.33			3.28
Efficiency ratio (1)	54.13			58.63			51.56			58.68			61.01
Noninterest income to total revenue	19.73			17.92			28.79			18.86			21.80
Selected Loan Metrics
Loans and leases originated	$	1,548,432		$	1,368,311		$	1,638,113		$	1,648,711		$	1,526,592
Outstanding balance of sold loans serviced	5,991,590			5,943,787			5,599,724			5,563,363			5,321,284
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)	1.56		%	1.62		%	1.64		%	1.65		%	1.70		%
Net charge-offs (3)	$	24,162		$	18,585		$	13,739		$	16,816		$	31,445
Net charge-offs to average loans and leases held for investment (2) (3)	0.80		%	0.63		%	0.48		%	0.61		%	1.19		%

Nonperforming loans and leases at historical cost (3)
Unguaranteed	$	124,336		$	116,791		$	101,371		$	76,887		$	59,555
Guaranteed	346,419			327,409			399,786			379,381			336,777
Total	470,755			444,200			501,157			456,268			396,332
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)	1.00		%	0.98		%	0.87		%	0.68		%	0.56		%

Nonperforming loans at fair value (4)
Unguaranteed	$	6,623		$	6,884		$	7,715		$	6,775		$	8,873
Guaranteed	52,695			54,679			53,887			54,887			60,453
Total	59,318			61,563			61,602			61,662			69,326
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)	2.85		%	2.81		%	2.96		%	2.42		%	2.92		%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)	10.42		%	10.63		%	10.53		%	10.51		%	10.67		%
Tier 1 leverage capital (to average assets)	8.59			8.47			8.48			8.57			7.90

Notes to Quarterly Selected Financial Data


	Three Months Ended June 30, 2026						Three Months Ended March 31, 2026						Three Months Ended June 30, 2025
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	710,110	$	6,601	3.73	%	$	729,938	$	6,726	3.74	%	$	727,715	$	8,123	4.48	%

Investment securities	1,519,670		13,411		3.54		1,492,023		13,009		3.54		1,408,942		11,648		3.32
Loans held for sale	527,857		10,441		7.93		514,501		9,792		7.72		381,531		8,008		8.42
Loans and leases held for investment (1)	12,322,003		211,264		6.88		12,081,396		204,337		6.86		10,843,303		196,505		7.27
Total interest-earning assets	15,079,640		241,717		6.43		14,817,858		233,864		6.40		13,361,491		224,284		6.73
Less: Allowance for credit losses on loans and leases	(193,304)						(190,522)						(186,022)
Noninterest-earning assets	537,352						547,970						539,485
Total assets	$	15,423,688					$	15,175,306					$	13,714,954
Interest-bearing liabilities:

Savings	$	7,170,652	$	58,289	3.26	%	$	6,910,397	$	55,420	3.25	%	$	6,241,053	$	56,529	3.63	%

Certificates of deposit	5,637,001		51,968		3.70		5,730,803		53,337		3.77		5,392,494		52,789		3.93
Other interest-bearing deposits	629,105		4,519		2.88		579,330		4,090		2.86		479,735		4,062		3.40
Total deposits	13,436,758		114,776		3.43		13,220,530		112,847		3.46		12,113,282		113,380		3.75
Borrowings	99,743		1,603		6.45		103,329		1,617		6.35		109,463		1,683		6.17
Total interest-bearing liabilities	13,536,501		116,379		3.45		13,323,859		114,464		3.48		12,222,745		115,063		3.78
Noninterest-bearing deposits	536,054						491,301						375,503
Noninterest-bearing liabilities	29,222						69,596						53,717
Shareholders' equity	1,317,767						1,286,313						1,058,572
Non-controlling interest	4,144						4,237						4,417
Total liabilities and shareholders' equity	$	15,423,688					$	15,175,306					$	13,714,954
Net interest income and interest rate spread			$	125,338	2.98	%			$	119,400	2.92	%			$	109,221	2.95	%
Net interest margin					3.33						3.27						3.28
Ratio of average interest-earning assets to average interest-bearing liabilities					111.40	%					111.21	%					109.32	%


	As of and for the three months ended
	2Q 2026			1Q 2026			4Q 2025			3Q 2025			2Q 2025
Total shareholders’ equity	$	1,316,918		$	1,281,761		$	1,254,106		$	1,202,549		$	1,067,265
Less:
Preferred stock	96,266			96,266			96,266			96,266			—
Non-controlling interest	4,054			4,145			4,238			4,326			—
Total common shareholders' equity	$	1,216,598		$	1,181,350		$	1,153,602		$	1,101,957		$	1,067,265
Less:
Goodwill	1,797			1,797			1,797			1,797			1,797
Other intangible assets	2,013			2,089			2,165			1,453			1,491
Tangible common shareholders’ equity (a)	$	1,212,788		$	1,177,464		$	1,149,640		$	1,098,707		$	1,063,977
Shares outstanding (c)	46,283,620			46,240,691			46,032,402			45,855,739			45,686,081
Total assets	$	16,038,141		$	15,300,033		$	15,134,778		$	14,665,902		$	13,831,208
Less:
Goodwill	1,797			1,797			1,797			1,797			1,797
Other intangible assets	2,013			2,089			2,165			1,453			1,491
Tangible assets (b)	$	16,034,331		$	15,296,147		$	15,130,816		$	14,662,652		$	13,827,920
Tangible common shareholders’ equity to tangible assets (a/b)	7.56		%	7.70		%	7.60		%	7.49		%	7.69		%
Tangible book value per common share (a/c)	$	26.20		$	25.46		$	24.97		$	23.96		$	23.29
Efficiency ratio:
Noninterest expense (d)	$	84,525		$	85,293		$	89,153		$	83,516		$	85,222
Net interest income	125,338			119,400			123,120			115,485			109,221
Noninterest income	30,807			26,074			49,787			26,845			30,455
Total revenue (e)	$	156,145		$	145,474		$	172,907		$	142,330		$	139,676
Efficiency ratio (d/e)	54.13		%	58.63		%	51.56		%	58.68		%	61.01		%
Pre-provision net revenue (e-d)	$	71,620		$	60,181		$	83,754		$	58,814		$	54,454

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.