Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Q2 2017 Earnings Presentation
13 slides from Live Oak Bancshares's earnings presentation, Jul 27, 2017
Slide 1: Live Oak Bancshares Second Quarter 2017
Live Oak Bancshares Second Quarter 2017
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: The Live Oak Franchise
The Live Oak Franchise • Business Model Kicking In • Past Investments are Producing Results (Scalability) • Given Growth, Let’s Discuss Safety & Soundness • Renewable Energy – Loans and Leases • Operations • Six Month Update • Just the Facts: Deposits • Technology • API Banking • First Data Joint Ve
Slide 4: Robust Loan & Lease Origination
Robust Loan & Lease Origination 39% 65% CAGR Growth 2012-2016 4
Slide 5: Safety & Soundness
Safety & Soundness • Since Inception in May 2007: $6.44 Billion Packages sent to Herndon: Originations Cumulative Net C/O’s $12.1 Million 66 $13.1 Million • At June 30, 2017: Classified Assets $12.2 Million Packages Repaired by Herndon: Classified Assets to Total Capital 7% 1 $29 Thousand Live Oak $
Slide 6: Powerful Scalability
Powerful Scalability 2008-2014 2015-2016 2017 Live Oak 1.0 Live Oak 2.0 Live Oak 3.0 • Veterinary • Wine & Craft Bev. • Tax Credit Leasing (Solar) • Healthcare • Self Storage • Equipment Leasing (Horizontal) • Ind. Pharmacies • Ind. Insurance • Early Education Services • Death Care • Hotels • Senior
Slide 7: YTD Model Leverage | Live Oak 1.0 vs. 2.0
YTD Model Leverage | Live Oak 1.0 vs. 2.0 YTD 2017 Originations (Verticals 1.0) YTD 2017 Originations (Verticals 2.0) $530 million $471 million Direct Operating Cost1 per $1 million Originations Direct Operating Cost1 per $1 million Originations $21.6 thousand $14.5 thousand Direct Operating1 Cost D
Slide 8: Renewable Energy
Renewable Energy • Loans • In the last 12 months we have closed over $250MM in loans • Pipeline is robust and is line with that production figure • Successful in attracting partners where we have reached our legal limit with some customers • Leases • LOCEF is a business not a financial engineering t
Slide 9: Launch of Online Savings | Q2 2017
Launch of Online Savings | Q2 2017 YTD Savings Origination*: Q2 Deposits Growth: $82 million 1,512 new accounts $233 million 14% Q2 Growth / 26% YTD Growth Portfolio Stats: Online Marketing Campaign launched on June 21: 37 $2.0 million $54k 11,698 65% / 35% 1.25% Avg Daily New Avg Daily New Average
Slide 10: Growing Recurring Revenue
Growing Recurring Revenue Year-Over-Year Year-Over-Year 64% Recurring Revenue1 Growth 66% Portfolio Growth 1. Net Interest Income plus Loan Servicing Revenue 10
Slide 11: Second Quarter 2017 | Financial Highlights [Consolidated]
Second Quarter 2017 | Financial Highlights [Consolidated] 64% increase versus Q2 2016 64% increase versus Q2 2016 66% increase versus Q2 2016 Loan & Lease Originations Net Interest Income & Total Loans & Leases Loan Servicing Revenue $586 million $1.7 billion $25 million 50% increase versus Q2 2016
Slide 12: Proactive Approach to Credit Decisions & Monitoring
Proactive Approach to Credit Decisions & Monitoring 7 bps Versus Q1 2017 of 63 bps 1.80% Versus Q1 2017 of 1.82% Annualized Net CO to ALLL to Loans & Leases HFI Average Loans & Leases HFI $3.9 million Versus Q1 2017 of $3.9 million 18 bps Versus Q1 2017 of 20 bps Unguaranteed Nonperforming Loans & U
Slide 13: Live Oak Bancshares
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