Live Oak Bancshares (LOB)
NYSE:LOB
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Live Oak Bancshares
(NYSE:LOB)
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Rating:65Neutral
Price Target:
$35.00
▼(-4.42% Downside)
Action:DowngradedDate:03/02/26
The score is driven primarily by solid underlying financial health (notably a de-risked, low-leverage balance sheet) and a favorable earnings-call outlook tied to strong loan/deposit momentum and product ramp. Offsetting these positives are weak technicals (trading below key moving averages with subdued momentum) and financial quality concerns around cash-flow volatility and credit/margin timing risks highlighted on the call.
Positive Factors
Conservative Balance Sheet
Very low leverage (debt-to-equity ~0.08x) and rising equity provide durable capital resilience, allowing the bank to absorb credit shocks, fund loan growth, and support dividends or strategic investments without relying on high external debt.
Negative Factors
Free Cash Flow Volatility
Sharp decline and historical volatility in operating/free cash flow reduce confidence in consistent internal funding for growth, shareholder returns, and reserves. This impairs predictability of investments and makes capital actions more sensitive to episodic gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage (debt-to-equity ~0.08x) and rising equity provide durable capital resilience, allowing the bank to absorb credit shocks, fund loan growth, and support dividends or strategic investments without relying on high external debt.
Read all positive factors
Live Oak Bancshares (LOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.68B
Dividend Yield0.33%
Average Volume (3M)309.55K
Price to Earnings (P/E)15.2
Beta (1Y)1.03
Revenue Growth10.41%
EPS Growth-19.43%
CountryUS
Employees1,008
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.56
Shares Outstanding46,219,604
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 Cap0.56
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda5.04
Forecast
1Y Price Target
$44.67Price Target Upside21.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.01
Revenue Forecast (FY)$640.30M
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:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operating and financial achievements: record loan production, double-digit revenue and NII growth, improving core profitability (PPNR), substantial checking and cross-sell momentum, and a meaningful contribution from Live Oak Express. Venture gains and steady deposit growth further bolstered results. Offsetting these positives were manageable but notable headwinds: an increase in nonaccruals driven by SBA exposure, near-term NIM compression risk from rapid deposit repricing after Fed cuts, intentionally lower gain-on-sale recognition in Q4 (timing), and several one-time expense offsets. Management framed credit as stabilizing and expects expense growth to moderate while continuing strategic investments (checking, Live Oak Express, AI/technology). Overall, the positives significantly outweighed the negatives, though near-term margin and timing variability remain watch items.Positive Updates
Record Loan Production and Strong Balance Growth
Company delivered record loan production of $6.2B for 2025, including $1.6B in Q4, driving 17% year-over-year loan balance growth and 4% linked-quarter growth.
Negative Updates
Increase in Nonaccrual Loans (SBA-Driven)
Nonaccrual loans increased to $110M, representing ~91 basis points of the unguaranteed held-for-investment loan portfolio; management attributed the linked-quarter rise primarily to SBA credit and broader SBA industry trends.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Loan Production and Strong Balance Growth
Company delivered record loan production of $6.2B for 2025, including $1.6B in Q4, driving 17% year-over-year loan balance growth and 4% linked-quarter growth.
Read all positive updates
Company Guidance
Management's forward guidance assumes three Fed cuts (March, June, September 2026) and a generally stable/low rate environment that they view as favorable for growth, margins and credit; they expect near‑term NIM compression in Q1 as deposit pricing re‑prices after the recent 50 bp move but anticipate NIM and NII to resume an "up and to the right" trajectory through 2026 driven by strong loan growth (2025 loan balances +17% YoY, $6.2B production in 2025, Q4 originations $1.6B), continued deposit momentum (customer deposits +18% YoY, business checking $377M doubled YoY, 22% of customers now have both a loan and deposit vs ~6% at end‑2024, low‑cost deposits ~4% of total, 2x YoY), and product ramps (Live Oak Express contributed $12M of gain‑on‑sale in 2025, ~20% of total gains and is being built toward an aspirational $1B/year at cruise altitude). They expect Q1 gain‑on‑sale to be closer to Q1 2025 (~$15M) after intentionally increasing loans held‑for‑sale by about $60M, plan to moderate expense growth into the single digits YoY while investing in checking, Live Oak Express and AI/tech, and see credit and reserves remaining manageable (30+ days past due $10M/9 bps, nonaccruals $110M/91 bps unguaranteed HFI); management noted any fewer or later Fed cuts would provide upside to earnings.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 | 864.90M | 634.39M | 1.71B | 1.30B | 1.10B |
| Total Debt | 104.56M | 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
36.62
Price Trends
36.21
Positive
35.69
Positive
34.80
Positive
Market Momentum
0.27
Negative
63.65
Neutral
85.49
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 36.62 is above the 20-day moving average (MA) of 33.59, above the 50-day MA of 36.21, and above the 200-day MA of 34.80, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.49 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.61B | 11.18 | 9.25% | 3.38% | -1.48% | -1.58% | |
68 Neutral | $1.89B | 13.24 | 8.05% | 3.07% | -2.46% | -1.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.57B | 10.24 | 2.62% | 4.97% | -7.96% | -52.79% | |
65 Neutral | $1.68B | 15.19 | 6.31% | 0.33% | 10.41% | -19.43% | |
61 Neutral | $1.25B | 36.84 | 10.01% | ― | -2.11% | 6.48% | |
50 Neutral | $1.47B | 58.33 | 2.77% | ― | 2.04% | -64.17% |
* Financial Sector Average
LOB
Live Oak Bancshares
36.62
12.83
53.91%
HOPE
Hope Bancorp
12.20
3.25
36.25%
STBA
S&T Bancorp
43.87
11.07
33.74%
TFIN
Triumph Financial
61.90
10.70
20.90%
NBHC
National Bank Holdings
41.95
7.94
23.36%
CCB
Coastal Financial
82.04
1.62
2.01%
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.