Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Q4 2016 Earnings Presentation
13 slides from Live Oak Bancshares's earnings presentation, Jan 26, 2017
Slide 1: Live Oak Bancshares Fourth Quarter 2016
Live Oak Bancshares Fourth Quarter 2016
Slide 2: Forward Looking Statements
LIVE OAK BANCSHARES | FORWARD LOOKING STATEMENTS Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future perfo
Slide 3: What We Are Excited About!
What We Are Excited About! (in millions) 2014 2015 2016 Originations 848 1,159 1,537 Net Interest Income 15 26 43 Servicing Revenue 13 16 21 Total Recurring Revenue 28 42 64 Net Gain on Sale 50 67 75 Total Recurring Revenue & Net Gain on Sale Non-GAAP Noninterest Expense 50 72 93 78 109 139 At 12.31
Slide 4: Renewable Energy Lending
Renewable Energy Lending Small size, Utility-scale solar facilities (1 – 25 MW or $1 million to $5 million) Sold to investment grade utilities Lower interest rates & lower premiums All power revenues flow through Live Oak deposit accounts USDA (Renewable Energy for America Program - REAP) 70% to 80%
Slide 5: Live Oak Clean Energy Financing
Live Oak Clean Energy Financing Subsidiary of Live Oak Bancshares Live Oak is a 35% Tax Payer Renewable Energy ITC extended to 2021 Solar panel exploration - Live Oak Bank Chicken Vertical Northeastern US Focus: Higher energy prices, government policy toward solar advantageous Live Oak owns the asse
Slide 6: Record Loan Origination Growth
Record Loan Origination Growth 39% CAGR 2012-2016 6
Slide 7: Powerful Scalability
Powerful Scalability Profitability Legacy Verticals New Verticals (2015 & 2016) • Veterinary • Investment • Wine & Craft • Hotels • Healthcare Advisors Beverage • Renewable • Independent • Family • Self Storage Energy Pharmacies Entertainment • Independent • Government • Death Care • Chickens Insura
Slide 8: Model Leverage | Mature vs. New Verticals
Model Leverage | Mature vs. New Verticals Profitability FY 2016 Originations FY 2016 Originations $1,095.9 million $441.1 million Direct Operating Cost1 per $1 million Originations Direct Operating Cost1 per $1 million Originations $21.3 thousand $21.4 thousand Direct Operating1 Cost Direct Operatin
Slide 9: Robust New Deposit Generation | FY 2016
Robust New Deposit Generation | FY 2016 Growth Daily Average Origination: $529 million 21 $1.6 million $0.62 Accounts Balances New Acquisition Cost per $thousand 7,099 new accounts Online CD Campaign 66% 23% 76% 1.13% 1YR CDS 2YR CDS Renewal Rates (#) Portfolio Rate of Maturing CDs • $680 million (8
Slide 10: Fourth Quarter 2016 | Financial Highlights
Fourth Quarter 2016 | Financial Highlights Profitability 56% increase versus Q4 2015 40% increase versus Q4 2015 71% increase versus Q4 2015 Loan Originations Net Interest Income & Total Loans Loan Servicing Revenue $515 million $1.3 billion $18 million 19% increase versus Q4 2015 52% increase versu
Slide 11: FY 2015 vs. 2016 | Financial Highlights
FY 2015 vs. 2016 | Financial Highlights Profitability 33% increase versus FY 2015 54% increase versus FY 2015 19% increase versus FY 2015 Loan Originations Net Interest Income & Guaranteed Loans Sold Loan Servicing Revenue $1.54 billion $762 million $64 million 11
Slide 12: Proactive Approach to Credit Decisions & Monitoring
Proactive Approach to Credit Decisions & Monitoring Safety & Soundness 39 bps Versus Q3 2016 of 51 bps 2.01% Versus Q3 2016 of 1.98% Annualized Net CO to Allowance for Loan Losses to Loans Average Loans HFI Held for Investment $5.0 million Versus Q3 2016 of $3.7 million 29 bps Versus Q3 2016 of 22 b
Slide 13: Live Oak Bancshares
LIVE OAK BANCSHARES