Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Q1 2026 Earnings Presentation
26 slides from Live Oak Bancshares's earnings presentation, Apr 23, 2026
Slide 1: First Quarter 2026
FIRST QUARTER 2026 April 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 Q1 GAAP Results
LIVE OAK BANCSHARES Q1 GAAP RESULTS 3 LIVE OAK BANCSHARES, INC. ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 a Net Interest Income $ 100.5 $ 109.2 $ 115.5 $ 123.1 $ 119.4 b Total Noninterest Income 22.4 30.5 26.8 49.8 26.1 a + b Total Revenue 122.9 139.7 142.3 172.9
Slide 4: Live Oak | Q1 2026 Highlights
LIVE OAK | Q1 2026 HIGHLIGHTS 4 Earnings momentum sustainable and building Strong loan production and record loan pipelines Credit trends stable Key growth drivers improving AI-led innovation accelerating ©2026 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation
Slide 5: Generating Sustainable Operating Earnings
GENERATING SUSTAINABLE OPERATING EARNINGS 5 Live Oak Core Earnings Per Share 1 Adjusted EPS $ in millions $0.70 $0.70 $0.64 $0.65 $ in millions $0.36 +94% PYQ 1 % CHANGE % CHANGE Adjusted Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 LQ PYQ Revenue $131 $144 $149 $152 $151 (1)% 15% Noninterest Expense $81
Slide 6: Credit Trends Stable, Outperforming Industry Default Rates
CREDIT TRENDS STABLE, OUTPERFORMING INDUSTRY DEFAULT RATES 6 2, 3 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 1.1% 5% 4% 3% 2
Slide 7: Key Initiative — Business Checking
KEY INITIATIVE — BUSINESS CHECKING 7 LOW-COST CHECKING ACCOUNTS BUILDING DEEPER, MORE PROFITABLE RELATIONSHIPS Business Checking Customers $ in millions 3.88% 3.75% 3.66% 3.54% 3.46% ~4% 2.43% Non-Interest 2.31% Bearing to Total 2.19% 2.00% 1.95% Deposits $720 as of Q1 2026 $573 $648 $436 $541 10%+
Slide 8: Key Initiative — Live Oak Express
KEY INITIATIVE — LIVE OAK EXPRESS 8 PROVIDING CAPITAL TO MORE SMALL BUSINESS CUSTOMERS VIA SMALL DOLLAR SBA 7(A) PROGRAM ~$140M LOANS SOLD • Product launched Q1 2024 • 75%+ government guaranteed ~$10M net gain on sale • SBA 7(a) loans of $500k or less • Working capital, equipment Last 12 months purc
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS ©2026 Live Oak Bancshares. All rights reserved.
Slide 10: Q1 2026 Earnings Results
Q1 2026 EARNINGS RESULTS 10 Q1 2026 CHANGE VS. Key Highlights $ in millions Q1 2026 Q4 2025 Q1 2025 Net interest income $ 119 (3)% 19% • Credit trends stable Noninterest income $ 26 (48)% 17% Soundness • 2.14% unguaranteed ACL to unguaranteed loans and leases6 a Total revenue $ 145 (16)% 18% b Nonin
Slide 11: Q1 Earnings Summary
Q1 EARNINGS SUMMARY 11 • Diluted EPS of $0.60, -37% LQ and +186% PYQ EPS • Adjusted EPS1 of $0.70, +8% LQ and +94% PYQ • Reported PPNR of $60 million, -28% LQ and +43% PYQ PPNR • Adjusted PPNR1 of $66 million, 2% LQ and +30% PYQ • Revenue growth of +18% PYQ compared to expense growth of +6% PYQ • +2
Slide 12: Strong, Diversified Loan Originations Continue
STRONG, DIVERSIFIED LOAN ORIGINATIONS CONTINUE 12 $1.4 BILLION OF LOAN ORIGINATIONS ACROSS 35 INDUSTRIES IN Q1 2026 Quarterly Production Trend Q1 2026 Production Mix by Lending Segment $ in millions Other Commercial (5 Verticals) Solar $1,649 $1,638 $1,527 $1,396 $1,368 Other Small Business (19 Vert
Slide 13: Strong, Consistent Balance Sheet Growth Trends Continue
STRONG, CONSISTENT BALANCE SHEET GROWTH TRENDS CONTINUE 13 Loan and Deposit Balance Trends ($ in billions) Total HFS and HFI Loans and Leases Total Deposits $13.7 $13.8 $13.3 $12.4 $12.6 $12.4 $12.6 $11.9 $11.4 $11.1 +14% vs. PYQ Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Loan Portfolio Key Stats: % Gu
Slide 14: Net Interest Margin and Net Interest Income Trends
NET INTEREST MARGIN AND NET INTEREST INCOME TRENDS 14 KEY HIGHLIGHTS: +19% PYQ • Net Interest Income -3% LQ, +19% PYQ $123 • Net Interest Margin -11bps LQ, +7bps PYQ $119 • Full quarter impact of 50bps rate reduction Net Interest Income $115 on loan portfolio that is ~73% variable Net Interest Margi
Slide 15: Loan Sales Continue to Provide Revenue, Liquidity, and Optionality
LOAN SALES CONTINUE TO PROVIDE REVENUE, LIQUIDITY, AND OPTIONALITY 15 $ in millions Net Gain on Sale 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 KEY HIGHLIGHTS: $17 $17 • Gain on sale +25% LQ $15 $1 $15 $3
Slide 16: Expense and Efficiency Ratio Trends
EXPENSE AND EFFICIENCY RATIO TRENDS 16 Noninterest expense Efficiency Ratio $ in millions KEY HIGHLIGHTS: $89 • 7 points of efficiency ratio improvement since Q1 2025 $85 $84 $85 $81 • Revenue growth has outpaced 66% expense growth ~3x since Q1 61% 2025 59% 59% 52% • Remain committed to investing in
Slide 17: Credit Quality Overview
CREDIT QUALITY OVERVIEW 17 Unguaranteed ACL to Unguaranteed Loans and Leases 6 Held for Investment (%) KEY HIGHLIGHTS: and Provision Expense ($ in millions) 2.53% • Small Business default trends are stable to improving 2.34% 2.22% 2.19% 2.14% $29 • ~27% of non-accrual ratio is from verticals we have
Slide 18: Unique Balance Sheet Composition and the Mahan Ratio
UNIQUE BALANCE SHEET COMPOSITION AND THE MAHAN RATIO 18 GOVERNMENT GUARANTEED LOAN MIX IS ~10X THE INDUSTRY:12 ~40% OF ASSETS ARE CASH OR GOVERNMENT GUARANTEED Total Assets $ in millions CAPITAL RATIOS Q1 2026 $14,000 Common Equity Tier 1 Capital 10.6% $12,000 Tier 1 Capital 11.5% $8,888 Tier 1 Capi
Slide 19: Live Oak | Focus
LIVE OAK | FOCUS 19 Building Seizing new Modernizing the sustainable growth opportunities engine momentum ©2026 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation
Slide 20: ©2026 Live Oak Bancshares. All rights reserved.
20 ©2026 Live Oak Bancshares. All rights reserved.
Slide 21: Appendix
APPENDIX ©2026 Live Oak Bancshares. All rights reserved.
Slide 22: Appendix: Presentation Footnotes
APPENDIX: PRESENTATION FOOTNOTES 22 1. Non-GAAP financial measures. See Appendix for reconciliation of non-GAAP items to reported balances. 2. Source: Lumos Technologies, Inc., SBA 7(a) Program Data for trailing twelve months ending December 31. 3. Default is defined as 60 days past due or indicatio
Slide 23: Forward Looking Statements
FORWARD LOOKING STATEMENTS 23 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business
Slide 24: Appendix: Reconciliation
APPENDIX: RECONCILIATION 24 Reconciliation of non-GAAP items to reported balances ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 a Net interest income, as reported $ 100.5 $ 109.2 $ 115.5 $ 123.1 $ 119.4 b Total noninterest income, as reported 22.4 30.5 26.8 49.8 26.1 Fair value adjustments
Slide 25: Appendix: Reconciliation
APPENDIX: RECONCILIATION 25 ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Total shareholders' equity $ 1,031.4 $ 1,067.3 $ 1,202.5 $ 1,254.1 $ 1,281.8 Less: Preferred stock — — 96.3 96.3 96.3 Non-controlling interest — — 4.3 4.2 4.1 Total common shareholders' equity 1,031.4 1,067.3 1,102.0
Slide 26: Appendix: Current and Past Production Driving Loan Growth
APPENDIX: CURRENT AND PAST PRODUCTION DRIVING LOAN GROWTH 26 2% PERIOD-END LOAN GROWTH LQ; 5% TOTAL NET GROWTH LQ BEFORE LOAN SALES Period End ($ in millions) Increase Decrease $759 Total $653 $(826) $12,594 $12,394 $(275) $(111) Q4 2025 Full Funded Other Loan Prepayment Guaranteed Unguaranteed Loan