Document


(Dollars in thousands, except per share data)							Increase (Decrease)
	2Q 2025			1Q 2025			Dollars		Percent		2Q 2024
Total revenue (1)	$	143,747		$	126,113		$	17,634	14.0	%	$	125,479
Total noninterest expense	89,293			84,017			5,276		6.3		77,656
Income before taxes	31,202			13,132			18,070		137.6		36,058
Effective tax rate	25.0		%	26.4		%	n/a		n/a		25.2		%
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	13,711	141.1	%	$	26,963
Diluted earnings per share	0.51			0.21			0.30		142.9		0.59
Loan and lease production:
Loans and leases originated	$	1,526,592		$	1,396,223		$	130,369	9.3	%	$	1,171,141
% Fully funded	39.7		%	46.0		%	n/a		n/a		38.2		%
Total loans and leases:	$	11,364,846		$	11,061,866		$	302,980	2.7	%	$	9,535,766

Total assets:	13,831,208			13,595,704			235,504		1.7		11,868,570
Total deposits:	12,594,790			12,395,945			198,845		1.6		10,707,031

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										2Q 2025 Change vs.
	2Q 2025		1Q 2025		4Q 2024		3Q 2024		2Q 2024		1Q 2025	2Q 2024
Interest income											%	%
Loans and fees on loans	$	204,513	$	195,616	$	194,821	$	192,170	$	181,840	4.5	12.5
Investment securities, taxable	11,648		11,089		10,490		9,750		9,219		5.0	26.3
Other interest earning assets	8,123		6,400		7,257		7,016		7,389		26.9	9.9
Total interest income	224,284		213,105		212,568		208,936		198,448		5.2	13.0
Interest expense
Deposits	113,380		110,888		113,357		110,174		105,358		2.2	7.6
Borrowings	1,683		1,685		1,737		1,762		1,770		(0.1)	(4.9)
Total interest expense	115,063		112,573		115,094		111,936		107,128		2.2	7.4
Net interest income	109,221		100,532		97,474		97,000		91,320		8.6	19.6
Provision for credit losses	23,252		28,964		33,581		34,502		11,765		(19.7)	97.6
Net interest income after provision for credit losses	85,969		71,568		63,893		62,498		79,555		20.1	8.1
Noninterest income
Loan servicing revenue	8,565		8,298		8,524		8,040		7,347		3.2	16.6
Loan servicing asset revaluation	(3,057)		(4,728)		(2,326)		(4,207)		(2,878)		35.3	(6.2)
Net gains on sales of loans	21,641		18,648		18,356		16,646		14,395		16.0	50.3
Net gain (loss) on loans accounted for under the fair value option	1,082		(1,034)		195		2,255		172		204.6	529.1
Equity method investments (loss) income	(2,716)		(2,239)		(2,739)		(1,393)		(1,767)		(21.3)	(53.7)
Equity security investments gains, net	1,004		20		12		909		161		4,920.0	523.6
Lease income	3,103		2,573		2,456		2,424		2,423		20.6	28.1
Management fee income	—		—		—		1,116		3,271		—	(100.0)
Other noninterest income	4,904		4,043		6,115		7,142		11,035		21.3	(55.6)
Total noninterest income	34,526		25,581		30,593		32,932		34,159		35.0	1.1
Noninterest expense
Salaries and employee benefits	49,137		48,008		45,214		44,524		46,255		2.4	6.2
Travel expense	2,576		2,795		2,628		2,344		2,328		(7.8)	10.7
Professional services expense	2,874		3,024		2,797		3,287		3,061		(5.0)	(6.1)
Advertising and marketing expense	4,420		3,665		1,979		2,473		3,004		20.6	47.1
Occupancy expense	2,369		2,737		2,558		2,807		2,388		(13.4)	(0.8)
Technology expense	10,066		9,251		9,406		9,081		7,996		8.8	25.9
Equipment expense	3,685		3,745		3,769		3,472		3,511		(1.6)	5.0
Other loan origination and maintenance expense	4,190		4,585		4,812		4,872		3,659		(8.6)	14.5
Renewable energy tax credit investment impairment	270		—		1,172		115		170		100.0	58.8
FDIC insurance	3,545		3,551		3,053		1,933		2,649		(0.2)	33.8

Other expense	6,161		2,656		3,869		2,681		2,635		132.0	133.8
Total noninterest expense	89,293		84,017		81,257		77,589		77,656		6.3	15.0
Income before taxes	31,202		13,132		13,229		17,841		36,058		137.6	(13.5)
Income tax expense	7,815		3,464		3,386		4,816		9,095		125.6	(14.1)
Net income	23,387		9,668		9,843		13,025		26,963		141.9	(13.3)
Net loss attributable to non-controlling interest	41		49		57		—		—		(16.3)	100.0
Net income attributable to Live Oak Bancshares, Inc.	$	23,428	$	9,717	$	9,900	$	13,025	$	26,963	141.1	(13.1)
Earnings per share
Basic	$	0.51	$	0.21	$	0.22	$	0.28	$	0.60	142.9	(15.0)
Diluted	$	0.51	$	0.21	$	0.22	$	0.28	$	0.59	142.9	(13.6)
Weighted average shares outstanding
Basic	45,634,741		45,377,965		45,224,470		45,073,482		44,974,942
Diluted	45,795,608		45,754,499		46,157,979		45,953,947		45,525,082


	As of the quarter ended										2Q 2025 Change vs.
	2Q 2025		1Q 2025		4Q 2024		3Q 2024		2Q 2024		1Q 2025	2Q 2024
Assets											%	%
Cash and due from banks	$	662,755	$	744,263	$	608,800	$	666,585	$	615,449	(11.0)	7.7

Certificates of deposit with other banks	250		250		250		250		250		—	—
Investment securities available-for-sale	1,325,206		1,312,680		1,248,203		1,233,466		1,151,195		1.0	15.1
Loans held for sale	350,791		367,955		346,002		359,977		363,632		(4.7)	(3.5)
Loans and leases held for investment (1)	11,014,055		10,693,911		10,233,374		9,831,891		9,172,134		3.0	20.1
Allowance for credit losses on loans and leases	(182,231)		(190,184)		(167,516)		(168,737)		(137,867)		4.2	(32.2)
Net loans and leases	10,831,824		10,503,727		10,065,858		9,663,154		9,034,267		3.1	19.9
Premises and equipment, net	246,493		259,113		264,059		267,032		267,864		(4.9)	(8.0)
Foreclosed assets	6,318		2,108		1,944		8,015		8,015		199.7	(21.2)
Servicing assets	60,359		56,911		56,144		52,553		51,528		6.1	17.1
Other assets	347,212		348,697		352,120		356,314		376,370		(0.4)	(7.7)
Total assets	$	13,831,208	$	13,595,704	$	12,943,380	$	12,607,346	$	11,868,570	1.7	16.5
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing	$	393,393	$	386,108	$	318,890	$	258,844	$	264,013	1.9	49.0
Interest-bearing	12,201,397		12,009,837		11,441,604		11,141,703		10,443,018		1.6	16.8
Total deposits	12,594,790		12,395,945		11,760,494		11,400,547		10,707,031		1.6	17.6
Borrowings	107,659		110,247		112,820		115,371		117,745		(2.3)	(8.6)
Other liabilities	61,494		58,065		66,570		83,672		82,745		5.9	(25.7)
Total liabilities	12,763,943		12,564,257		11,939,884		11,599,590		10,907,521		1.6	17.0
Shareholders’ equity
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding	—		—		—		—		—		—	—
Class A common stock (voting)	377,953		370,513		365,607		361,925		356,381		2.0	6.1
Class B common stock (non-voting)	—		—		—		—		—		—	—
Retained earnings	746,450		724,215		715,767		707,026		695,172		3.1	7.4
Accumulated other comprehensive loss	(61,514)		(67,698)		(82,344)		(61,195)		(90,504)		9.1	32.0
Total shareholders' equity attributed to Live Oak Bancshares, Inc.	1,062,889		1,027,030		999,030		1,007,756		961,049		3.5	10.6
Non-controlling interest	4,376		4,417		4,466		—		—		(0.9)	100.0
Total shareholders' equity	1,067,265		1,031,447		1,003,496		1,007,756		961,049		3.5	11.1
Total liabilities and shareholders’ equity	$	13,831,208	$	13,595,704	$	12,943,380	$	12,607,346	$	11,868,570	1.7	16.5


	Six Months Ended
	June 30, 2025		June 30, 2024
Interest income
Loans and fees on loans	$	400,129	$	357,850
Investment securities, taxable	22,737		18,173
Other interest earning assets	14,523		14,845
Total interest income	437,389		390,868
Interest expense
Deposits	224,268		207,356
Borrowings	3,368		2,081
Total interest expense	227,636		209,437
Net interest income	209,753		181,431
Provision for credit losses	52,216		28,129
Net interest income after provision for credit losses	157,537		153,302
Noninterest income
Loan servicing revenue	16,863		14,971
Loan servicing asset revaluation	(7,785)		(5,622)
Net gains on sales of loans	40,289		25,897
Net gain (loss) on loans accounted for under the fair value option	48		(47)
Equity method investments (loss) income	(4,955)		(6,789)
Equity security investments gain (losses), net	1,024		(368)
Lease income	5,676		4,876
Management fee income	—		6,542
Other noninterest income	8,947		20,796
Total noninterest income	60,107		60,256
Noninterest expense
Salaries and employee benefits	97,145		93,530
Travel expense	5,371		4,766
Professional services expense	5,898		4,939
Advertising and marketing expense	8,085		6,696
Occupancy expense	5,106		4,635
Technology expense	19,317		15,719
Equipment expense	7,430		6,585
Other loan origination and maintenance expense	8,775		7,570
Renewable energy tax credit investment impairment (recovery)	270		(757)
FDIC insurance	7,096		5,849

Other expense	8,817		5,861
Total noninterest expense	173,310		155,393
Income before taxes	44,334		58,165
Income tax expense	11,279		3,616
Net income	33,055		54,549
Net loss attributable to non-controlling interest	90		—
Net income attributable to Live Oak Bancshares, Inc.	$	33,145	$	54,549
Earnings per share
Basic	$	0.72	$	1.22
Diluted	$	0.72	$	1.20
Weighted average shares outstanding
Basic	45,556,842		44,868,625
Diluted	45,825,543		45,583,146


	As of and for the three months ended
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024
Income Statement Data
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	9,900		$	13,025		$	26,963
Per Common Share
Net income, diluted	$	0.51		$	0.21		$	0.22		$	0.28		$	0.59
Dividends declared	0.03			0.03			0.03			0.03			0.03
Book value	23.36			22.62			22.12			22.32			21.35
Tangible book value (1)	23.29			22.55			22.05			22.24			21.28
Performance Ratios
Return on average assets (annualized)	0.68		%	0.30		%	0.31		%	0.43		%	0.93		%
Return on average equity (annualized)	8.85			3.78			3.85			5.21			11.39
Net interest margin	3.28			3.20			3.15			3.33			3.28
Efficiency ratio (1)	62.12			66.62			63.45			59.72			61.89
Noninterest income to total revenue	24.02			20.28			23.89			25.35			27.22
Selected Loan Metrics
Loans and leases originated	$	1,526,592		$	1,396,223		$	1,421,118		$	1,757,856		$	1,171,141
Outstanding balance of sold loans serviced	5,321,284			4,949,962			4,715,895			4,452,750			4,292,857
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)	1.70		%	1.83		%	1.69		%	1.78		%	1.57		%
Net charge-offs (3)	$	31,445		$	6,774		$	33,566		$	1,710		$	8,253
Net charge-offs to average loans and leases held for investment (2) (3)	1.19		%	0.27		%	1.39		%	0.08		%	0.38		%

Nonperforming loans and leases at historical cost (3)
Unguaranteed	$	59,555		$	99,907		$	81,412		$	49,398		$	37,340
Guaranteed	336,777			322,993			222,885			166,177			122,752
Total	396,332			422,900			304,297			215,575			160,092
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)	0.56		%	0.96		%	0.82		%	0.52		%	0.42		%

Nonperforming loans at fair value (4)
Unguaranteed	$	8,873		$	9,938		$	9,115		$	8,672		$	9,590
Guaranteed	60,453			58,100			54,873			49,822			51,570
Total	69,326			68,038			63,988			58,494			61,160
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)	2.92		%	3.14		%	2.77		%	2.53		%	2.64		%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)	10.67		%	10.67		%	11.04		%	11.19		%	11.85		%
Tier 1 leverage capital (to average assets)	7.90			8.03			8.21			8.60			8.71

Notes to Quarterly Selected Financial Data


	Three Months Ended June 30, 2025						Three Months Ended March 31, 2025
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	727,715	$	8,123	4.48	%	$	581,267	$	6,400	4.47	%

Investment securities	1,408,942		11,648		3.32		1,379,797		11,089		3.26
Loans held for sale	381,531		8,008		8.42		407,953		8,612		8.56
Loans and leases held for investment (1)	10,843,303		196,505		7.27		10,388,872		187,004		7.30
Total interest-earning assets	13,361,491		224,284		6.73		12,757,889		213,105		6.77
Less: Allowance for credit losses on loans and leases	(186,022)						(165,320)
Noninterest-earning assets	539,485						534,133
Total assets	$	13,714,954					$	13,126,702
Interest-bearing liabilities:
Interest-bearing checking	$	350,978	$	3,969	4.54	%	$	350,491	$	3,929	4.55	%
Savings	6,241,053		56,529		3.63		5,540,147		51,604		3.78
Money market accounts	128,757		93		0.29		127,908		120		0.38
Certificates of deposit	5,392,494		52,789		3.93		5,563,004		55,235		4.03
Total deposits	12,113,282		113,380		3.75		11,581,550		110,888		3.88
Borrowings	109,463		1,683		6.17		111,919		1,685		6.11
Total interest-bearing liabilities	12,222,745		115,063		3.78		11,693,469		112,573		3.90
Noninterest-bearing deposits	375,503						342,482
Noninterest-bearing liabilities	53,717						58,739
Shareholders' equity	1,058,572						1,027,547
Non-controlling interest	4,417						4,465
Total liabilities and shareholders' equity	$	13,714,954					$	13,126,702
Net interest income and interest rate spread			$	109,221	2.95	%			$	100,532	2.87	%
Net interest margin					3.28						3.20
Ratio of average interest-earning assets to average interest-bearing liabilities					109.32	%					109.10	%


	As of and for the three months ended
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024
Total shareholders’ equity	$	1,067,265		$	1,031,447		$	1,003,496		$	1,007,756		$	961,049
Less:
Goodwill	1,797			1,797			1,797			1,797			1,797
Other intangible assets	1,491			1,529			1,568			1,606			1,644
Tangible shareholders’ equity (a)	$	1,063,977		$	1,028,121		$	1,000,131		$	1,004,353		$	957,608
Shares outstanding (c)	45,686,081			45,589,633			45,359,425			45,151,691			45,003,856
Total assets	$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570
Less:
Goodwill	1,797			1,797			1,797			1,797			1,797
Other intangible assets	1,491			1,529			1,568			1,606			1,644
Tangible assets (b)	$	13,827,920		$	13,592,378		$	12,940,015		$	12,603,943		$	11,865,129
Tangible shareholders’ equity to tangible assets (a/b)	7.69		%	7.56		%	7.73		%	7.97		%	8.07		%
Tangible book value per share (a/c)	$	23.29		$	22.55		$	22.05		$	22.24		$	21.28
Efficiency ratio:
Noninterest expense (d)	$	89,293		$	84,017		$	81,257		$	77,589		$	77,656
Net interest income	109,221			100,532			97,474			97,000			91,320
Noninterest income	34,526			25,581			30,593			32,932			34,159
Total revenue (e)	$	143,747		$	126,113		$	128,067		$	129,932		$	125,479
Efficiency ratio (d/e)	62.12		%	66.62		%	63.45		%	59.72		%	61.89		%
Pre-provision net revenue (e-d)	$	54,454		$	42,096		$	46,810		$	52,343		$	47,823

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.