Slide 1: Live Oak Bancshares First Quarter 2018
Live Oak Bancshares First Quarter 2018
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: Scalable Business Model
Scalable Business Model Live Oak 1.0 (2008-2014) Live Oak 2.0 (2015-2016) Live Oak 3.0 (2017) Live Oak 4.0 (2017+) Veterinary Wine & Craft Beverages Solar Panel Leasing Platform Bankers Healthcare Self-Storage Equipment Leasing Pharmacies Independent Insurance Early Education Services Death Care Hot
Slide 4: Scalability
Scalability f 3.4 11 5.7 Loans and fees onloans mLoanservicing revenue #™ Net gains on sales of loans Revenue (S$ in millions) Verticals 1.0 \ Verticals 2.0 \ 2.6 2.3 15 a7 1s 0:4 Verticals 3.0 Verticals 4.0 . “ 0.5 0.6 02 0.9 I 2.1 27 0.5 16 . a 17 19 11 0 : oe Veterinary Healthcare Independent Dea
Slide 5: Fed Stress Tests Holding Back Bank Stocks
Fed Stress Tests Holding Back Bank Stocks “1Q earnings strength could be Share Buybacks Since June 20173 overwhelmed by disappointing CCAR guidance…JPMorgan closed down 1.7%...Wells Fargo fell 1.3%” Wells Fargo Investor’s Business Daily1 $6.2 billion Bank of America Citigroup “Goldman’s stock fell T
Slide 6: Deposit Betas
Deposit Betas “Betas came in reasonably well relative to expectations. So we've been signaling that they've been floating up. We had betas in the U.S. in the low 40% range, which is kind of right where we had thought they would come. That's up from last, I guess, the last rates hike we had. We had i
Slide 7: Amazon Web Services
Amazon Web Services AWS Net Revenue1 Amazon Capital ($BB) Expenditures1 ($BB) 10.1 5.1 4.6 4.1 3.5 3.7 6.7 3.2 2.9 2.4 2.6 4.9 4.6 2.1 3.8 1.8 3.4 1.4 1.6 1.1 1.0 1.2 1.8 1.0 0.2 0.3 0.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2014 2014
Slide 8: AWS and Total Cost of Ownership
AWS and Total Cost of Ownership $6,500,000 Legacy Data Center, Fully Loaded $750,000 ”Lift & Shift” Legacy Technology to AWS* $100,000 Technology rebuild to Cloud-Native* *Computed via AWS Models 8
Slide 9: Benefits of Cloud-Native, or "Serverless" Architecture
Benefits of Cloud-Native, or “Serverless” Architecture • Reduced TCO • Limitless Scalability • Increased Security • Better Business Continuity • More Flexible 9
Slide 10: The Digital Bank
The Digital Bank • nCino – Loans & Workflow • Platform: Force.com • Status: Installed • Apiture – Online Banking • Platform: AWS • Status: Installed • Payrailz – Payments Platform • Platform: AWS Workflow • Status: Q4 Go-Live • Finxact – Core Banking • Platform: AWS API Layer • Status: Q4 Go-Live Co
Slide 11: The Power of The Platform
The Power of The Platform Q1 2018 New Online Savings/CD Q1 2018 Maturing Q1 2018 Consumer Savings Originations CD Retention Retention $515 million $222 million 97.0% 153% increase vs. Q4 2017 78% Renewal Rate Compared to active accounts at with 9,021 new accounts December 31, 2017 Savings Portfolio
Slide 12: First Quarter 2018 Highlights
First Quarter 2018 | Highlights 35 bps decrease versus Q4 2017 45% increase versus Q1 2017 43% increase versus Q1 2017 Net Interest Margin Net Interest Income & Total Loans & Leases Loan Servicing Revenue 3.72% $31 million $2.2 billion 18% increase versus Q1 2017 23% increase versus Q1 2017 32 bps i
Slide 13: Growing Recurring Revenue Quarterly
Growing Recurring Revenue Quarterly Year-Over-Year Year-Over-Year 45% Recurring Revenue1 Growth 43% Portfolio Growth 52% 55% 60% 58% 57% 37% 38% 39% 39% 39% Recurring Revenue as a percent of Total Revenue2 Guaranteed Loans as a percent of Total Loans & Leases 1. Net Interest Income plus Loan Servici
Slide 14: Q1 2018 – Credit Quality
Q1 2018 – Credit Quality 15 bps Versus Q4 2017 of 28 bps 1.95% Versus Q4 2017 of 1.80% Annualized Net CO to ALLL to Loans & Leases HFI Average Loans & Leases HFI $7.5 million Versus Q4 2017 of $3.7 million 22 bps Versus Q4 2017 of 13 bps Unguaranteed Nonperforming Loans & Unguaranteed Nonperforming
Slide 15: All Rights Reserved
© 2018 Live Oak Bancshares Inc. All Rights Reserved