Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Q3 2025 Earnings Presentation
27 slides from Live Oak Bancshares's earnings presentation, Oct 23, 2025
Slide 1: Third Quarter 2025
THIRD QUARTER 2025 October 23, 2025 ©2025 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 Q3 GAAP Results
LIVE OAK BANCSHARES Q3 GAAP RESULTS 3 LIVE OAK BANCSHARES, INC. ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 a Net Interest Income $ 97.0 $ 97.5 $ 100.5 $ 109.2 $ 115.5 Provision for Credit Losses 34.5 33.6 29.0 23.3 22.2 b Total Noninterest Income 32.9 30.6 25.6 34
Slide 4: Our Mission Is to Be America's Small Business Bank
LIVE OAK | OUR MISSION IS TO BE AMERICA'S SMALL BUSINESS BANK 4 SBA Approval Amount by Fiscal Year 1 SBA FY 2024 SBA FY 2025 $ in millions $2,853 +44% $2,099 $2,099 $1,984 $1,984 $2,030 $2,030 $1,857 $1,530 $1,530 $1,307 $1,179 $1,043 $1,043 $289 Live Oak Bank #2 Lender #3 Lender #4 Lender #5 Lender
Slide 5: Building Sustainable Momentum
LIVE OAK | BUILDING SUSTAINABLE MOMENTUM 5 Core Business Business Checking Live Oak Express Growing Our Unique Model to Deepening Wallet Share with Expanding Market Share with Serve America's Entrepreneurs Expanded Banking Products Small Dollar SBA 7(a) loans • Loan production strong • Checking bala
Slide 6: Generating Sustainable Operating Leverage
GENERATING SUSTAINABLE OPERATING LEVERAGE 6 Live Oak Core Operating Leverage 2 Adjusted PPNR $ in millions +7% LQ $66 $62 $ in millions $53 $53 $50 +24% PYQ 2 % CHANGE % CHANGE Adjusted Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 LQ PYQ Total Revenue $131 $133 $134 $148 $153 4% 17% Noninterest Expense $
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS ©2025 Live Oak Bancshares. All rights reserved.
Slide 8: Q3 Earnings Summary
Q3 EARNINGS SUMMARY 8 • Diluted EPS of $0.55, +8% LQ and +96% PYQ EPS • LQ improvement in ROACE and ROAA • Net Interest Income of $115 million, +6% LQ and +19% PYQ PPNR • Net Interest Margin of 3.33%, +5bps LQ and ~flat to PYQ • Adjusted PPNR2 of $66 million, +7% LQ and +24% PYQ • $551 million, +5%
Slide 9: Q3 2025 Earnings Results
Q3 2025 EARNINGS RESULTS 9 Q3 2025 CHANGE VS. Key Highlights $ in millions Q3 2025 Q2 2025 Q3 2024 • 2.22% unguaranteed ACL to unguaranteed loans Net interest income $ 115 6% 19% and leases3 Noninterest income $ 31 (11)% (7)% Soundness • $96.3 million net proceeds raised with successful a Total reve
Slide 10: Diversified Loan Originations Driving Growth
DIVERSIFIED LOAN ORIGINATIONS DRIVING GROWTH 10 YOY Origination Growth by Vertical Quarterly Production Trend Size represents each vertical's outstanding balance $ in millions as a proportion of the bank's total outstanding balance Small Business Banking Commercial Total Solar $1,758 $1,649 $1,527 $
Slide 11: Strong, Consistent Balance Sheet Growth Trends Continue
STRONG, CONSISTENT BALANCE SHEET GROWTH TRENDS CONTINUE 11 Period-End Loan and Deposit Balance Trends Total HFS and HFI Loans and Leases Total Deposits QoQ % Loan Growth $ in billions $13.3 $12.4 $12.6 $11.8 $11.9 $11.4 $11.4 $11.1 $10.6 $10.2 +17% Loan portfolio growth vs. PYQ 7% 4% 5% 5% 3% +20% C
Slide 12: Business Checking Continues to Grow
BUSINESS CHECKING CONTINUES TO GROW 12 CHECKING ACCOUNTS BUILDING DEEPER, MORE PROFITABLE RELATIONSHIPS Business Checking Customers $ in millions $573 4.15% 4.03% 3.88% $541 $436 3.75% 3.66% ~4% 2.63% $360 2.43% 2.31% Non-Interest 2.19% Bearing to Total $285 2.47% Deposits 2x vs. PYQ $363 $279 $288
Slide 13: Net Interest Margin and Net Interest Income Trends
NET INTEREST MARGIN AND NET INTEREST INCOME TRENDS 13 +19% PYQ Q3 2025 Highlights $115 • Net Interest Income +6% LQ $109 • Net Interest Margin +5bps LQ $101 Net Interest Income • Growth and pricing discipline driving $97 $97 relatively stable net spreads LQ Net Interest Margin $ in millions • Repric
Slide 14: Loan Sales Continue to Provide Revenue, Liquidity, and Optionality
LOAN SALES CONTINUE TO PROVIDE REVENUE, LIQUIDITY, AND OPTIONALITY 14 $ in millions Secondary Market Performance Key Highlights SBA Net Gain on Sale Live Oak Express Net Gain on Sale USDA Net Gain on Sale Total Average Gain on Sale Premium $21 $21 • SBA premiums relatively steady since Q3 2024 $1 $1
Slide 15: Expense Trends Support Growth and Commitment to Innovation
EXPENSE TRENDS SUPPORT GROWTH AND COMMITMENT TO INNOVATION 15 MODERNIZING THE ENGINE BY INVESTING IN AI TO IMPROVE THE CUSTOMER JOURNEY — INTERNALLY AND EXTERNALLY Quarterly Expenses $ in millions 2 Personnel expense Non-personnel expense Non-GAAP adjustments Since Q3 20237... $89 $87 $84 • +54% in
Slide 16: Credit Quality Overview
CREDIT QUALITY OVERVIEW 16 Key Credit Metrics & Trends Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Over 30 days past due, accruing 8, 9 0.74% 0.14% 0.09% 0.11% 0.14% Non accrual ratio 8, 10 0.60% 0.89% 1.03% 0.63% 0.73% Net charge-off ratio 3, 11 0.08% 1.39% 0.27% 1.19% 0.61% ACL to loans & leases HFI 3
Slide 17: Unique Balance Sheet Composition and the Mahan Ratio
UNIQUE BALANCE SHEET COMPOSITION AND THE MAHAN RATIO 17 GOVERNMENT GUARANTEED LOAN MIX IS ~10X THE INDUSTRY:12 41% OF ASSETS ARE CASH OR GOVERNMENT GUARANTEED Key Capital Events: Total Assets • ~$96 million net proceeds from successful preferred stock offering $ in millions • ~$24 million gain from
Slide 18: Live Oak | Focus
LIVE OAK | FOCUS 18 Building Seizing new Modernizing the sustainable growth opportunities engine with momentum in checking and new innovations small dollar lending ©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation
Slide 19: ©2025 Live Oak Bancshares. All rights reserved.
19 ©2025 Live Oak Bancshares. All rights reserved.
Slide 20: Appendix
APPENDIX ©2025 Live Oak Bancshares. All rights reserved.
Slide 21: Appendix: Presentation Footnotes
APPENDIX: PRESENTATION FOOTNOTES 21 1. Source: SBA. 7(a) & 504 Lender Report for fiscal years 2024 and 2025. 2. Non-GAAP financial measures. See Appendix for reconciliation of non-GAAP items to reported balances. 3. Loans and leases at historical cost only (excludes loans measured at fair value). 4.
Slide 22: Forward Looking Statements
FORWARD LOOKING STATEMENTS 22 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business
Slide 23: Appendix: Reconciliation
APPENDIX: RECONCILIATION 23 Reconciliation of non-GAAP items to reported balances ($ in millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 a Net interest income, as reported $ 97.0 $ 97.5 $ 100.5 $ 109.2 $ 115.5 b Total noninterest income, as reported 32.9 30.6 25.6 34.5 30.6 Fair value adjustments:
Slide 24: Appendix: Reconciliation
APPENDIX: RECONCILIATION 24 ($ in millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Total shareholders' equity $ 1,007.8 $ 1,003.5 $ 1,031.4 $ 1,067.3 $ 1,202.5 Less: Preferred stock — — — — 96.3 Non-controlling interest — — — — 4.3 Total common shareholders' equity 1,007.8 1,003.5 1,031.4 1,067.3 1
Slide 25: Appendix: Taking the Long View
APPENDIX: TAKING THE LONG VIEW 25 LIVE OAK CREDIT TRENDS REMAIN BETTER THAN OTHER SBA LENDERS 1, 2 Annualized SBA Net Charge-Off Ratio (10-year average) 0.6% 0.3% Live Oak 3 SBA Industry 4 1. Source: Lumos Technologies, Inc., SBA 7(a) Program Data for fiscal years ending March 31. 2. Default is defi
Slide 26: Appendix: Well-Diversified Loan Portfolio
APPENDIX: WELL-DIVERSIFIED LOAN PORTFOLIO 26 NO INDIVIDUAL VERTICAL BALANCE IS GREATER THAN 10% OF THE TOTAL LOAN PORTFOLIO $12.0 billion Portfolio Balance Average loan size of $1.2 million ~40 Unique Verticals ~31% of portfolio is government guaranteed ©2025 Live Oak Bancshares. All rights reserved
Slide 27: Appendix: Current and Past Production Driving Loan Growth
APPENDIX: CURRENT AND PAST PRODUCTION DRIVING LOAN GROWTH 27 5% PERIOD-END LOAN GROWTH LQ; 9% TOTAL NET GROWTH LQ BEFORE LOAN SALES Period End ($ in millions) Increase Decrease Total $860 $685 $11,916 $(520) $11,365 $(348) $(126) Q2 2025 Full Funded Other Loan Prepayment Guaranteed Unguaranteed Loan