Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Q2 2026 Earnings Presentation
27 slides from Live Oak Bancshares's earnings presentation, Jul 23, 2026
Slide 1: Second Quarter 2026
SECOND QUARTER 2026 July 23, 2026 ©2026 Live Oak Bancshares. All rights reserved.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 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 performance or business a
Slide 3: Live Oak Bancshares Q2 GAAP Results
LIVE OAK BANCSHARES Q2 GAAP RESULTS 3 LIVE OAK BANCSHARES, INC. ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 a Net Interest Income $ 100.5 $ 109.2 $ 115.5 $ 123.1 $ 119.4 $ 125.3 b Total Noninterest Income 22.4 30.5 26.8 49.8 26.1 30.8 a + b Total Revenue 12
Slide 4: Live Oak | Q2 2026 Highlights
LIVE OAK | Q2 2026 HIGHLIGHTS 4 THE QUARTER IN FIVE THEMES 01 Earnings momentum sustainable and building 02 Strong, consistent organic growth 03 Broader portfolio credit trends stable to improving 04 Live Oak Express and Business Checking ramping 05 AI activation accelerating ©2026 Live Oak Bancshar
Slide 5: Generating Sustainable Operating Earnings
GENERATING SUSTAINABLE OPERATING EARNINGS 5 Live Oak Core Earnings Per Share 1 Adjusted EPS $ in millions $0.77 $0.70 $0.70 $0.64 $0.65 $ in millions +20% PYQ $0.36 1 % CHANGE % CHANGE Adjusted Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 LQ PYQ Revenue $131 $144 $149 $152 $151 $160 6% 11% Nonint
Slide 6: Key Initiative — Live Oak Express
KEY INITIATIVE — LIVE OAK EXPRESS 6 RECORD PRODUCTION | ORIGINATE TO SELL MODEL | FEE INCOME GENERATION, CAPITAL- AND RISK-LIGHT Live Oak Express Originations ($ in millions) $82 Self-funding, capital efficient engine $73 Key changes to SBA 7(a) Program 75%+ guaranteed portion sold, recycling liquid
Slide 7: Key Initiative — Business Checking
KEY INITIATIVE — BUSINESS CHECKING 7 LOW-COST CHECKING ACCOUNTS BUILDING DEEPER, MORE PROFITABLE RELATIONSHIPS Checking & Other DDA Balances ($ in millions) Other DDA Balances Checking Balances $469 ~180 bps lower funding cost +63% PYQ compared to total Live Oak average cost of funds $409 $377 $363
Slide 8: Live Oak SBA Trends Continue to Significantly Outperform Industry
LIVE OAK SBA TRENDS CONTINUE TO SIGNIFICANTLY OUTPERFORM INDUSTRY 8 3, 4 Trailing 12 Months SBA Default Rates 1, 2 Annualized SBA Net Charge-Off Ratio (10-year average) SBA Program (Excluding Live Oak) Live Oak Bank Only SBA 10-Year Average (Excluding Live Oak) Live Oak Bank 10-Year Average 6% 1.2%
Slide 9: AI Accelerating Our Strategy, Not Defining It
9 AI ACCELERATING OUR STRATEGY, NOT DEFINING IT WHERE WE ARE TODAY OUR APPROACH HOW WE WIN 100% Direct Partnership 1 Executive-led Not delegated • Deep collaboration with Anthropic, employee access to AI-native tools plus continued Copilot use org-wide 2 Accelerant, not strategy Business model alrea
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS ©2026 Live Oak Bancshares. All rights reserved.
Slide 11: Q2 2026 Earnings Results
Q2 2026 EARNINGS RESULTS 11 Q2 2026 CHANGE VS. $ in millions Q2 2026 Q1 2026 Q2 2025 Key Items Net interest income $ 125 5% 15% • Credit trends stable Noninterest income $ 31 18% 1% Soundness • 2.01% unguaranteed ACL to unguaranteed loans and a Total revenue $ 156 7% 12% leases7 b Noninterest expens
Slide 12: Q2 2026 Key Headlines
Q2 2026 KEY HEADLINES 12 Earnings Outstanding Strategic Growth Compounding Organic Growth Initiatives Ramping +45% +16% $82M | +63% YoY diluted EPS growth ($0.74) YoY loan & deposit growth Record quarter of YoY checking Express origination balance growth Revenue Growth Expanding Credit Stable to Out
Slide 13: Strong, Diversified Loan Originations Continue
STRONG, DIVERSIFIED LOAN ORIGINATIONS CONTINUE 13 $1.5 BILLION OF LOAN ORIGINATIONS ACROSS 33 INDUSTRIES IN Q2 2026 Quarterly Production Trend Q2 2026 Production Mix by Lending Segment $ in millions Other Commercial (4 Verticals) Senior Housing $1,649 $1,638 $1,527 $1,548 Agriculture $1,396 $1,368 O
Slide 14: Strong, Consistent Balance Sheet Growth Trends Continue
STRONG, CONSISTENT BALANCE SHEET GROWTH TRENDS CONTINUE 14 Loan and Deposit Balance Trends ($ in billions) Total HFS and HFI Loans and Leases Total Deposits $14.5 $13.7 $13.8 $13.3 $13.1 $12.4 $12.6 $12.4 $12.6 $11.9 $11.4 $11.1 +16% vs. PYQ Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Loan Portf
Slide 15: Net Interest Margin and Net Interest Income Trends
NET INTEREST MARGIN AND NET INTEREST INCOME TRENDS 15 KEY HIGHLIGHTS: +15% PYQ • Net Interest Income +5% LQ, +15% PYQ $125 $123 • Net Interest Margin +6bps LQ, +5bps PYQ $119 • Flat interest environment provides a Net Interest Income $115 favorable backdrop for our NII profile Net Interest Margin $1
Slide 16: Loan Sales Continue to Provide Revenue, Liquidity, and Optionality
LOAN SALES CONTINUE TO PROVIDE REVENUE, LIQUIDITY, AND OPTIONALITY 16 Net Gain on Sale on Gty Loans and Average Premium Trends SBA Net Gain on Sale Live Oak Express Net Gain on Sale USDA Net Gain on Sale Total Average Gain on Sale Premium $ in millions KEY HIGHLIGHTS: $17 $17 $17 • Gain on sale +13%
Slide 17: Expense and Efficiency Ratio Trends
EXPENSE AND EFFICIENCY RATIO TRENDS 17 Noninterest expense Efficiency Ratio 1 $ in millions KEY HIGHLIGHTS: $89 • 7 points of efficiency ratio $85 $85 $85 $84 improvement since Q2 2025 $81 66% • +12% revenue growth vs. -1% expense decline since Q2 2025 61% 59% 59% • Continue to invest in growth 54%
Slide 18: Credit Quality Overview
CREDIT QUALITY OVERVIEW 18 Unguaranteed ACL to Unguaranteed Loans and Leases Held for Investment7 (%) KEY HIGHLIGHTS: and Provision Expense ($ in millions) • Q2 provision expense driven by: 2.53% • ~45% from growth 2.34% 2.22% 2.19% 2.14% 2.01% • ~40% from exited distillery portfolio • ~15% from mac
Slide 19: Unique Balance Sheet Composition and the Mahan Ratio
UNIQUE BALANCE SHEET COMPOSITION AND THE MAHAN RATIO 19 GOVERNMENT GUARANTEED LOAN MIX IS ~10X THE INDUSTRY:13 ~38% OF ASSETS ARE CASH OR GOVERNMENT GUARANTEED Total Assets $ in millions CAPITAL RATIOS Q2 2026 $16,000 Common Equity Tier 1 Capital 10.4% $14,000 Tier 1 Capital 11.2% $12,000 Tier 1 Cap
Slide 20: Live Oak | Focus
LIVE OAK | FOCUS 20 Building Seizing new Modernizing the sustainable growth opportunities engine momentum ©2026 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation
Slide 21: ©2026 Live Oak Bancshares. All rights reserved.
21 ©2026 Live Oak Bancshares. All rights reserved.
Slide 22: Appendix
APPENDIX ©2026 Live Oak Bancshares. All rights reserved.
Slide 23: Appendix: Presentation Footnotes
APPENDIX: PRESENTATION FOOTNOTES 23 1. Non-GAAP financial measures. See Appendix for reconciliation of non-GAAP items to reported balances. 2. Assumes 24% tax rate and average estimated diluted shares for the last six quarters. 3. Source: Lumos Technologies, Inc., SBA 7(a) Program Data for trailing
Slide 24: Forward Looking Statements
FORWARD LOOKING STATEMENTS 24 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business
Slide 25: Appendix: Reconciliation
APPENDIX: RECONCILIATION 25 Reconciliation of non-GAAP items to reported balances ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 a Net interest income, as reported $ 100.5 $ 109.2 $ 115.5 $ 123.1 $ 119.4 $ 125.3 b Total noninterest income, as reported 22.4 30.5 26.8 49.8 26.1 30.8 F
Slide 26: Appendix: Reconciliation
APPENDIX: RECONCILIATION 26 ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Total shareholders' equity $ 1,031.4 $ 1,067.3 $ 1,202.5 $ 1,254.1 $ 1,281.8 $ 1,316.9 Less: Preferred stock — — 96.3 96.3 96.3 96.3 Non-controlling interest — — 4.3 4.2 4.1 4.1 Total common shareholders' equ
Slide 27: Appendix: Current and Past Production Driving Loan Growth
APPENDIX: CURRENT AND PAST PRODUCTION DRIVING LOAN GROWTH 27 4% PERIOD-END LOAN GROWTH LQ; 8% TOTAL NET GROWTH LQ BEFORE LOAN SALES Period End ($ in millions) Increase Decrease $849 Total $685 $(585) $13,143 $(319) $(81) $12,594 Q1 2026 Full Funded Other Loan Prepayment Guaranteed Unguaranteed Loan