Live Oak Bancshares (LOB)
NYSE:LOB
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Live Oak Bancshares
(NYSE:LOB)
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Rating:75Outperform
Price Target:
$41.00
▲(9.45% Upside)
Action:UpgradedDate:04/23/26
The score is driven primarily by a strong and de-risked balance sheet plus a constructive earnings call with improving profitability and forward growth targets. Offsetting factors are weaker/volatile cash-flow trends and only moderate technical momentum, while valuation is fair but supported by a minimal dividend yield.
Positive Factors
Conservative leverage and capital
Extremely low debt-to-equity (~0.08x) and rising equity create durable loss-absorbing capacity and regulatory flexibility. Over a 2–6 month horizon this supports measured loan growth, capacity for targeted capital returns, and resilience to isolated credit deterioration.
Negative Factors
Volatile and weakened free cash flow
A steep decline in free cash flow and historical volatility reduce predictability of internally generated funding for growth, dividends, or buybacks. Over several months this may constrain discretionary investments and increase reliance on funding markets or deposit growth to finance lending targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage and capital
Extremely low debt-to-equity (~0.08x) and rising equity create durable loss-absorbing capacity and regulatory flexibility. Over a 2–6 month horizon this supports measured loan growth, capacity for targeted capital returns, and resilience to isolated credit deterioration.
Read all positive factors
Live Oak Bancshares (LOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.75B
Dividend Yield0.33%
Average Volume (3M)309.55K
Price to Earnings (P/E)12.6
Beta (1Y)1.11
Revenue Growth8.62%
EPS Growth99.65%
CountryUS
Employees1,008
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.24
Shares Outstanding46,239,890
10 Day Avg. Volume399,602
30 Day Avg. Volume309,546
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)1.26
Price to Sales (P/S)1.51
P/FCF Ratio10.99
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda5.53
Forecast
1Y Price Target
$43.33Price Target Upside15.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.03
Revenue Forecast (FY)$635.72M
Live Oak Bancshares Business Overview & Revenue Model
Company Description
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. Th...
How the Company Makes Money
Live Oak Bancshares makes money primarily through its bank subsidiary by earning interest and fees from financial products and services. Key revenue streams typically include: (1) Net interest income: the spread between interest earned on loans (i...
Live Oak Bancshares Key Performance Indicators (KPIs)
Live Oak Bancshares Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a clear positive operational and financial trajectory: strong year-over-year and linked-quarter earnings growth (EPS, PPNR), robust revenue and net interest income expansion, healthy loan and deposit growth, growing traction in checking and small-dollar SBA (Live Oak Express), disciplined expense control and improving efficiency, solid capital and reserves, and active AI/technology investments to drive future scale. Credit metrics showed some localized stress—nonaccruals and charge-offs ticked up due to a small exited vertical (whiskey distilleries) and provisioning remains a monitored item—but overall credit trends were described as stable to improving. Given the breadth and magnitude of the favorable metrics and the limited nature of the credit and timing headwinds, the tone of the call is constructive and growth-oriented.Positive Updates
Strong EPS and Earnings Momentum
Reported diluted EPS of $0.60 for Q1 2026 (~3x vs prior year) and adjusted EPS of $0.70, up 94% year-over-year and 8% linked quarter, reflecting pronounced earnings acceleration from core operations.
Negative Updates
Nonaccruals and Net Charge-offs Increase
Nonaccrual ratio rose modestly to 102 basis points quarter-over-quarter and net charge-off ratio was 63 basis points for the quarter, reflecting some stress in specific pockets of the portfolio.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong EPS and Earnings Momentum
Reported diluted EPS of $0.60 for Q1 2026 (~3x vs prior year) and adjusted EPS of $0.70, up 94% year-over-year and 8% linked quarter, reflecting pronounced earnings acceleration from core operations.
Read all positive updates
Company Guidance
The company guided to continued stable-to-improving core performance with loan growth targeted in the low- to mid‑teens year-over-year, a stabilizing NIM in a flat-rate environment (Q1 NII ~$119M, NIM 3.27%, NII +19% YoY), and material runway from deposits and SBA secondary sales: loans $12.6B (Q1 +2% QoQ, +14% YoY) with Q1 originations of ~$1.4B and a $4.5B pipeline, customer deposits $9.9B (+3% QoQ, +13% YoY) and >$400M noninterest-bearing checking (4% of deposits today, goal >10%), Live Oak Express sold ~$140M to date and management targets at least $750M of annual small‑dollar 7(a) production (premiums ~9–13%), gain-on-sale contribution running ~10–13% of revenue, adjusted PPNR $66M (+30% YoY) and adjusted EPS $0.70 (+94% YoY), with expenses roughly $85M (efficiency ratio Q1 59% with a path to low‑mid 50s), provision ~ $20M, ACL to unguaranteed loans 2.14%, 30+ day delinquencies 4 bps, nonaccruals 102 bps, net charge-offs 63 bps, and a maintenance ratio of 16.7%; longer term targets remain ~15% ROE and 15% EPS growth.Live Oak Bancshares Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.04B | 929.29M | 776.55M | 508.83M | 506.41M |
| Gross Profit | 503.00M | 396.61M | 382.26M | 350.92M | 426.77M |
| EBITDA | 185.09M | 112.52M | 104.10M | 231.11M | 232.15M |
| Net Income | 103.78M | 77.47M | 73.90M | 176.21M | 167.00M |
Balance Sheet | |||||
| Total Assets | 15.13B | 12.94B | 11.27B | 9.86B | 8.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 634.39M | 1.71B | 1.30B | 1.10B |
| Total Debt | 102.40M | 112.82M | 23.35M | 83.20M | 318.29M |
| Total Liabilities | 13.88B | 11.94B | 10.37B | 9.04B | 7.50B |
| Stockholders Equity | 1.25B | 999.03M | 902.67M | 811.03M | 715.13M |
Cash Flow | |||||
| Free Cash Flow | 143.49M | 487.16M | 573.23M | 80.73M | -122.80M |
| Operating Cash Flow | 158.24M | 536.47M | 620.07M | 124.48M | -119.72M |
| Investing Cash Flow | -1.90B | -2.08B | -1.77B | -1.44B | -149.80M |
| Financing Cash Flow | 2.00B | 1.57B | 1.32B | 1.53B | 154.95M |
Live Oak Bancshares Technical Analysis
Positive
37.46
Price Trends
35.94
Positive
35.90
Positive
34.90
Positive
Market Momentum
0.57
Negative
65.90
Neutral
84.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOB, the sentiment is Positive. The current price of 37.46 is above the 20-day moving average (MA) of 34.29, above the 50-day MA of 35.94, and above the 200-day MA of 34.90, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 84.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.63B | 11.13 | 9.35% | 3.38% | 2.41% | ― | |
75 Outperform | $1.75B | 12.63 | 10.37% | 0.33% | 8.62% | 99.65% | |
73 Outperform | $1.92B | 17.98 | 7.35% | 3.07% | 3.18% | -7.24% | |
70 Outperform | $1.62B | 12.17 | 2.96% | 4.97% | 0.09% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $1.60B | 55.83 | 3.40% | ― | 6.29% | 220.03% | |
60 Neutral | $1.14B | 23.93 | 10.20% | ― | -3.36% | -6.31% |
* Financial Sector Average
LOB
Live Oak Bancshares
37.74
11.22
42.29%
HOPE
Hope Bancorp
12.63
2.86
29.23%
STBA
S&T Bancorp
44.54
7.97
21.80%
TFIN
Triumph Financial
67.22
10.62
18.76%
NBHC
National Bank Holdings
42.96
7.00
19.46%
CCB
Coastal Financial
74.95
-9.00
-10.72%
Live Oak Bancshares Corporate Events
Dividends
Live Oak Bancshares Declares Cash Dividends for Shareholders
Positive
Feb 19, 2026
On February 19, 2026, Live Oak Bancshares, Inc. announced that its board of directors declared a cash dividend of $0.03 per share on its voting common stock, reinforcing its practice of returning capital to common shareholders. The board also appr...
Business Operations and StrategyExecutive/Board Changes
Live Oak Bancshares Grants Long-Term Executive RSU Awards
Positive
Feb 13, 2026
On February 9, 2026, Live Oak Bancshares’ compensation committee granted discretionary cash bonuses and multi-year restricted stock unit awards to several key executives of Live Oak Bank, including its president, chief financial officer, gen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.