Live Oak Bancshares, Inc. · NYSE:LOB

Live Oak Bancshares — Q1 2016 Earnings Presentation

11 slides from Live Oak Bancshares's earnings presentation, Apr 28, 2016

  1. Slide 1: Live Oak Bancshares First Quarter 2016

    Live Oak Bancshares First Quarter 2016

  2. Slide 2: Forward Looking Statements

    LIVE OAK BANCSHARES | FORWARD LOOKING STATEMENTS Informa6on in this presenta6on may contain “forward-looking statements” within the Private Securi6es Li6ga6on Reform Act of 1995. These statements generally relate to our financial condi6on, results of opera6ons, plans, objec6ves, future performance or

  3. Slide 3: Q1 Highlights

    Q1 Highlights • The Live Oak Franchise • Growth Indicators Loan Origination increased 15% versus Q1 2015 • • Loan Sales increased 14% versus Q1 2015 • Recurring Revenue* increased 56% from Q1 2015 • Growth Drivers • Maturing Verticals • New Verticals • Monetization of Construction Loans • Other Init

  4. Slide 4: New Verticals

    New Verticals We have started six new verticals since January 2015 • Wine & Craft Beverage • Hotels • Self Storage • Renewable Energy • Independent Insurance Agents • Government Contractors Originations • New Verticals are just getting started • Mature verticals show significant growth in Year 2 fol

  5. Slide 5: Revenue Q1 2016 by Vertical

    Revenue Q1 2016 by Vertical 8 m Loans and fees on loans @ Loan servicing revenue @ Net gains on sales of loans 74 Bes 8 Es 4 £ e B44 3 = $35 S 825 ‘4 0.7 0.5 . 0.1 0.1 | || 0:3 0.4 | — —_ Veterinary Healthcare Independent Death Care _—investment Family Poultry Wine & Craft SelfStorage Hotels (2015)

  6. Slide 6: Q1 Deposits Update

    Q1 Deposits Update • Online Deposits • 2,706 New Accounts Opened • $198 million in new Core Deposits [~60% 1-yr CDS and ~25% 2-yr CDs] • Cost of deposit acquisition per thousand approximately $0.70 • Cost of Funds remains in the 1% range for the Portfolio • Business Checking • On track for Pilot in

  7. Slide 7: Live Oak Application Topography

    Live Oak Application Topography End Users eLending Deposits Online Loan Applica6on New Account Opening Third Party Data Online Banking Rules Engine/Decisioning Remote Deposit Capture Video Call Center Bill-Pay eSigning Integrated Merchant nCino Bank Opera6ng System Force.com Pla]orm as a Service (Pa

  8. Slide 8: First Quarter 2016 Highlights

    First Quarter 2016 Highlights Financials • Loan originations totaled $284.5 million • 15% increase over Q1 2015 • Guaranteed loans sold totaled $155.6 million • 14% increase over Q1 2015 • Net interest income and loan servicing revenues increased to $13.5 million • 56% increase over Q1 2015 • Nonper

  9. Slide 9: Year over Year Growth

    Year over Year Growth Overview Originate Sell Service Recurring Revenue = Net Interest Income + Loan Servicing Revenue 9

  10. Slide 10: Safety & Soundness

    Safety & Soundness • Portfolio Average DSCR remains greater than 2.0x • Net charge-offs were $232 thousand in the first quarter, unchanged from Q4 as a percentage of average HFI loans at 0.30% 10

  11. Slide 11: Live Oak Bancshares

    LIVE OAK BANCSHARES

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