Live Oak Bancshares, Inc. · NYSE:LOB

Live Oak Bancshares — Q2 2016 Earnings Presentation

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

  1. Slide 1: Live Oak Bancshares Second Quarter 2016

    Live Oak Bancshares Second 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: Q2 Highlights

    Q2 Highlights • The Live Oak Franchise • Growth Indicators • Record loan origination increased 29% versus Q2 2015 • Recurring revenue* increased 61% from Q2 2015 • Growth Drivers • Maturing verticals & new verticals • Increasing on-book loan portfolio • Other Initiatives • Conventional Lending • Fun

  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 New Verticals: Powerful Scalability Potential First Half 2015: Just Over $20 million First Half 2016: $140 mil

  5. Slide 5: Vertical Loan Origination

    Vertical Loan Origination Production by Vertical 1,400.0 (dollars in millions) 1 1,200.0 1,158.6 | 1 @ Other @ Government Contracting @ Insurance Agencies H 1,000.0 . " @ Hotels w Self Storage m Wine & Craft Beverage ' 848.1 @ Poultry Agriculture @ Family Entertainment Centers Investment Advisors :

  6. Slide 6: YTD 2016 Revenue | Mature vs. New Verticals

    YTD 2016 Revenue | Mature vs. New Verticals Originations Originations $501 million $140 million Operating Cost per $1 million Originations Operating Cost per $1 million Originations $23.4 thousand $30 thousand Direct Operating Cost to Revenue Direct Operating Cost to Revenue 19% 100% MATURE VERTICAL

  7. Slide 7: 2016 YTD Deposits Update

    2016 YTD Deposits Update $310 million Daily Average Origination: $74 thousand average balance 39 $3 million $0.69 Accounts Balances New Acquisition Cost per $thousand 4,168 new accounts Marketing campaign ended on April 30: 60% 30% 73% 1.1% 1YR CDS 2YR CDS Renewal Rates of Approximate Rate Maturing

  8. Slide 8: Guaranteed Loan Retention - Revenue Maximization

    Guaranteed Loan Retention - Revenue Maximization Revenue Flow Example* Selling a Guaranteed Loan* • Yields net revenue of $130.6 thousand: Years 1-3 • Yields net revenue of $12.2 thousand: Years 4-7 Holding a Guaranteed Loan* • Yields net revenue of $128.5 thousand: Years 1-3 • Yields net revenue of

  9. Slide 9: Second Quarter 2016 Financial Highlights

    Second Quarter 2016 | Financial Highlights 29% increase over Q2 2015 61% increase over Q2 2015 72% increase over Q2 2015 Loan Originations Net Interest Income & Total Loans $357 million Loan Servicing Revenue $1 billion $15 million 0.0% increase over Q2 2015 39% Increase over Q2 2015 16 bps Improvem

  10. Slide 10: Safety & Soundness

    Safety & Soundness • Portfolio Average DSCR remains greater than 2.0x • Net recoveries in Q2 of $240 thousand (YTD Net Recoveries of $8 thousand) 10

  11. Slide 11: Live Oak Bancshares

    LIVE OAK BANCSHARES

Live Oak Bancshares — Q2 2016 Earnings Presentation on 6ix