Education
About Us
Working with TipRanks
Follow Us
Live Oak Bancshares (LOB)
NYSE:LOB
Top Page
Live Oak Bancshares
(NYSE:LOB)
66Neutral
Live Oak Bancshares (LOB) vs. S&P 500 (SPY)
Market Cap
$1.17B
Dividend Yield0.47%
Average Volume (3M)431.35K
Price to Earnings (P/E)15.2
Beta (1Y)1.43
Revenue Growth16.48%
EPS Growth3.59%
CountryUS
Employees1,008
SectorFinancial
Sector Strength86
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.69
Shares Outstanding45,588,604
10 Day Avg. Volume429,752
30 Day Avg. Volume431,350
Financial Highlights & Ratios
PEG Ratio4.23
Price to Book (P/B)N/A
Price to Sales (P/S)3.09
Price to Cash Flow (P/CF)1.80
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.00Price Target Upside74.62% Upside
Rating ConsensusHold
Number of Analyst Covering2
Live Oak Bancshares Business Overview & Revenue Model
Company DescriptionLive Oak Bancshares, Inc. is a financial services company headquartered in Wilmington, North Carolina. It operates as the bank holding company for Live Oak Banking Company, which provides various commercial banking products and services. The bank specializes in offering lending solutions to small businesses across various industries, including veterinary, pharmacy, agriculture, and healthcare sectors. Live Oak Bank is known for its technology-driven approach to banking, which includes online banking services and a focus on customer-centric solutions.
How the Company Makes MoneyLive Oak Bancshares primarily generates revenue through interest income from its diverse loan portfolio. The company focuses on providing Small Business Administration (SBA) loans, which are partially guaranteed by the government, reducing the bank's risk exposure. Additionally, Live Oak earns money through interest and fees on its loan services, as well as from investment securities. The bank also benefits from partnerships with financial technology companies, which enhance its service offerings and expand its customer reach. Fee income from deposit-related services and other banking activities further contribute to the company's earnings.
Live Oak Bancshares Financial Statement Overview
Summary
Live Oak Bancshares shows strong revenue growth and a robust balance sheet with no debt, but faces challenges in cash flow generation with negative operating and free cash flows. The company's financial stability is solid but addressing cash flow issues is crucial for long-term sustainability.Income Statement
Live Oak Bancshares has demonstrated a strong improvement in revenue with a significant increase from 2022 to 2023. The gross profit margin remains robust at 100%, indicating that the company efficiently controls its cost of goods sold. However, the net profit margin is lower, which suggests higher operating or other expenses affecting profitability. The EBIT margin is strong, highlighting effective management of operating expenses.75
Positive
Balance Sheet
The balance sheet is solid with a high equity ratio, indicating financial stability and lower reliance on debt. The company has no total debt as of the latest report, which is a positive indicator of financial health. Return on equity is healthy, reflecting effective use of shareholder funds to generate income. The company's substantial cash reserves add to its financial stability.80
Positive
Cash Flow
The cash flow statement shows some areas of concern, mainly the negative operating and free cash flows in the latest period. However, the company has shown an ability to generate significant cash from financing activities, which may provide some buffer. The negative free cash flow growth rate suggests potential challenges in cash generation from core operations.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 812.37M | 119.49M | 391.86M | 441.99M | 284.62M | Gross Profit |
| 812.37M | 119.49M | 391.86M | 441.99M | 284.62M | EBIT |
| 801.22M | 103.47M | 327.30M | 210.79M | 47.39M | EBITDA |
| 0.00 | 104.10M | 231.11M | 232.15M | 69.08M | Net Income Common Stockholders |
| 77.47M | 73.90M | 176.21M | 167.00M | 59.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.86B | 89.52M | 1.30B | 1.10B | 1.05B | Total Assets |
| 12.94B | 11.27B | 9.86B | 8.21B | 7.87B | Total Debt |
| 112.82M | 23.35M | 133.20M | 318.29M | 1.54B | Net Debt |
| -496.23M | -559.44M | -151.04M | 126.34M | 1.24B | Total Liabilities |
| 11.94B | 10.37B | 9.04B | 7.50B | 7.30B | Stockholders Equity |
| 999.03M | 902.67M | 811.03M | 715.13M | 567.85M |
| Cash Flow | Free Cash Flow | |||
| -7.21M | 573.23M | 80.73M | -122.80M | -293.98M | Operating Cash Flow |
| -7.21M | 620.07M | 124.48M | -119.72M | -272.99M | Investing Cash Flow |
| -97.31M | -1.77B | -1.44B | -149.80M | -2.61B | Financing Cash Flow |
| 78.76M | 1.32B | 1.53B | 154.95M | 2.98B |
Live Oak Bancshares Technical Analysis
Negative
23.48
Price Trends
29.86
Negative
35.89
Negative
39.33
Negative
Market Momentum
-1.45
Negative
31.78
Neutral
23.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOB, the sentiment is Negative. The current price of 23.48 is below the 20-day moving average (MA) of 26.28, below the 50-day MA of 29.86, and below the 200-day MA of 39.33, indicating a bearish trend. The MACD of -1.45 indicates Negative momentum. The RSI at 31.78 is Neutral, neither overbought nor oversold. The STOCH value of 23.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOB.
Live Oak Bancshares Risk Analysis
Live Oak Bancshares disclosed 48 risk factors in its most recent earnings report. Live Oak Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Live Oak Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.27B | 9.73 | 9.85% | 4.04% | 5.36% | -8.74% | |
70 Outperform | $1.18B | 10.39 | 9.65% | 3.68% | 6.25% | -1.62% | |
70 Outperform | $1.11B | 8.98 | 11.60% | 1.50% | 16.41% | 3.09% | |
69 Neutral | $1.06B | 43.93 | 2.19% | 4.14% | 0.87% | -74.06% | |
66 Neutral | $1.17B | 15.21 | 8.15% | 0.47% | 16.48% | 3.59% | |
64 Neutral | $13.21B | 9.26 | 9.39% | 4.87% | 16.14% | -8.87% |
* Financial Sector Average
Performance Comparison
LOB
Live Oak Bancshares
23.48
-13.91
-37.20%
DCOM
Dime Community Bancshares
24.07
6.44
36.53%
STBA
S&T Bancorp
32.89
4.53
15.97%
TCBK
Trico Bancshares
36.09
4.55
14.43%
BY
Byline Bancorp
23.25
3.36
16.89%
Live Oak Bancshares Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -42.34% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong operational performance with record loan production and significant deposit growth. However, challenges such as elevated provision expenses and net interest margin compression due to economic headwinds were acknowledged. The bank is optimistic about future growth, supported by investments in AI and technology.Highlights
Record Loan Production
Live Oak Bancshares reported record loan production in 2024 totaling $5.2 billion, a 33% increase compared to 2023, with a strong start in 2025 supported by near all-time high loan pipelines.
Strong Deposit Growth
The bank achieved significant checking account growth, with balances increasing by 46% linked quarter to $212 million, and a 14% customer overlap between loan and deposit accounts.
Increased Loan Origination
Q4 2024 loan origination totaled approximately $1.4 billion, marking a 45% increase compared to Q4 2023, driven by both small business banking and commercial lending teams.
AI and Technology Investment
The bank is heavily investing in AI and technology to streamline processes and improve operational efficiency, positioning it for future growth.
Lowlights
Elevated Provision Expenses
The bank reported elevated provision expenses in Q4 2024 due to increased default activity and challenges within the SBA loan portfolio, driven by economic factors such as rate hikes and inflation.
Net Interest Margin Compression
The net interest margin (NIM) compressed by 18 basis points in Q4 2024, influenced by recent rate cuts and competitive pressures in the deposit market.
High Charge-Offs
Q4 2024 saw a high level of charge-offs as the bank proactively addressed small business defaults and impaired loans.
Company Guidance
During the Q4 2024 earnings call for Live Oak Bancshares, the executives provided comprehensive guidance highlighting significant growth metrics and future outlooks. The company reported strong loan production of $1.4 billion for the quarter, with an impressive 45% increase in loan originations compared to Q4 2023. The loan pipeline reached $3.6 billion, reflecting a 24% year-over-year increase. On the deposit front, checking balances grew by 46% sequentially, reaching approximately $215 million. The percentage of customers with both loan and deposit relationships with Live Oak increased to 14%, nearly triple from 18 months ago. Despite challenges like NIM compression and elevated provision expenses, the company maintained its core PPNR from Q3 2024 and achieved a 15% increase compared to the prior year. Looking ahead, the bank anticipates continued growth in its small dollar SBA 7(a) loan offering, expecting to more than double the $125 million closed in 2024, and aims to expand its checking account balances significantly. The executives emphasized the potential of AI to streamline operations and enhance customer service, positioning Live Oak as America’s small business bank.Live Oak Bancshares Corporate Events
Executive/Board ChangesShareholder Meetings
Diane B. Glossman to Leave Live Oak Bancshares Board
Neutral
Feb 14, 2025
On February 11, 2025, Diane B. Glossman announced she will not stand for re-election to the Live Oak Bancshares Board of Directors at the 2025 Annual Meeting, and she will also step down from the Live Oak Banking Company board. This decision was not due to any disagreements with the company. Additionally, on February 10, 2025, the Compensation Committee approved cash bonuses and restricted stock units (RSUs) for key executives under the 2015 Omnibus Stock Incentive Plan. These awards aim to align executive interests with shareholder interests, as seen in the substantial stock ownership of CEO James S. Mahan III.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.