Live Oak Bancshares, Inc. · NYSE:LOB

Live Oak Bancshares — Q3 2016 Earnings Presentation

13 slides from Live Oak Bancshares's earnings presentation, Oct 27, 2016

  1. Slide 1: Live Oak Bancshares Third Quarter 2016

    Live Oak Bancshares Third Quarter 2016

  2. 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

  3. Slide 3: The Live Oak Franchise

    The Live Oak Franchise • Growth Indicators & Drivers • Record Loan Origination: Increased 26% versus Q3 2015 • New Verticals & New Products • Profitability • Diversification of Revenue Streams • Operating NIE & Model Leverage • Safety & Soundness • Proactive Approach to Credit Decisions and Monitori

  4. Slide 4: Record Loan Origination

    Record Loan Origination Growth 1

  5. Slide 5: YTD 2015 vs. 2016 | Growth & Scalability

    YTD 2015 vs. 2016 | Growth & Scalability Growth Loan Net Recurring Origina7ons Revenue1 ($ in millions) ($ in millions) 1. Net Interest Income plus Servicing Revenue net of loan servicing revalua8on adjustment 2

  6. Slide 6: YTD 2015 vs. 2016 | Tempered NIE Growth

    YTD 2015 vs. 2016 | Tempered NIE Growth Noninterest Expense2 2015 2016 ($ in millions) 2. Noninterest Expense adjusted in Q2 & Q3 2016 for stock based compensa8on expense related to restricted stock awards with an effec8ve grant date of 3 May 24, 2010

  7. Slide 7: Powerful Scalability

    Powerful Scalability Profitability Legacy Verticals New Verticals (2015 & 2016) • Veterinary • Investment • Wine & Craft • Hotels • Healthcare Advisors Beverage • Renewable • Independent • Family • Self Storage Energy Pharmacies Entertainment • Independent • Government • Death Care • Chickens Insuran

  8. Slide 8: Model Leverage | Mature vs. New Verticals

    Model Leverage | Mature vs. New Verticals Profitability YTD Originations YTD Originations $805.8 million $216.6 million Direct Operating Cost1 per $1 million Originations Direct Operating Cost1 per $1 million Originations $21.9 thousand $30.2 thousand Direct Operating1 Cost to Revenue2 Direct Operati

  9. Slide 9: Robust New Deposit Generation | 2016 YTD

    Robust New Deposit Generation | 2016 YTD Growth Daily Average Origination: $442 million $75 thousand average balance 24 $2 million $0.66 Accounts Balances New Acquisition Cost per $thousand 5,884 new accounts Online CD Campaign 64% 25% 74% 1.14% 1YR CDS 2YR CDS Renewal Rates of Portfolio Rate Maturi

  10. Slide 10: Third Quarter 2016 | Financial Highlights

    Third Quarter 2016 | Financial Highlights Profitability 26% increase versus Q3 2015 61% increase versus Q3 2015 58% increase versus Q3 2015 Loan Originations Net Interest Income & Total Loans Loan Servicing Revenue $381 million $1.1 billion $17 million 43% increase versus Q3 2015 39% increase versus

  11. Slide 11: YTD 2015 vs. 2016 | Financial Highlights

    YTD 2015 vs. 2016 | Financial Highlights Profitability 24% increase versus YTD 2015 60% increase versus YTD 2015 19% increase versus YTD 2015 Loan Originations Net Interest Income & Guaranteed Loans Sold Loan Servicing Revenue $1.02 billion $502 million $46 million 8

  12. Slide 12: Proactive Approach to Credit Decisions & Monitoring

    Proactive Approach to Credit Decisions & Monitoring Safety & Soundness 51 bps Versus Q2 2016 net recoveries of 18 bps 1.98% Versus Q2 2016 of 1.78% Annualized Net CO to Allowance for Loan Losses to Loans Average Loans HFI Held for Investment $3.7 million Versus Q2 2016 of $2.6 million 22 bps Versus

  13. Slide 13: Live Oak Bancshares

    LIVE OAK BANCSHARES

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