Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Q4 2025 Earnings Presentation
33 slides from Live Oak Bancshares's earnings presentation, Jan 22, 2026
Slide 1: Fourth Quarter 2025
FOURTH QUARTER 2025 January 22, 2026 ©2026 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 Q4 GAAP Results
LIVE OAK BANCSHARES Q4 GAAP RESULTS 3 LIVE OAK BANCSHARES, INC. ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2023 FY 2024 FY 2025 a Net Interest Income $ 97.5 $ 100.5 $ 109.2 $ 115.5 $ 123.1 $ 345.3 $ 375.9 $ 448.4 Provision for Credit Losses 33.6 29.0 23.3 22.2
Slide 4: Live Oak 2025 Highlights
LIVE OAK | 2025 HIGHLIGHTS 4 Building sustainable, consistent PPNR and EPS momentum Record loan production and pipelines Credit trends stabilizing, with ongoing monitoring Key growth drivers accelerating Significant progress in operational improvements ©2026 Live Oak Bancshares. All rights reserved.
Slide 5: 2025 Earnings Summary
2025 EARNINGS SUMMARY 5 • Diluted EPS of $2.23, up 32% vs. PY EPS • Disciplined execution across the year, reinforcing confidence in core strategies • Adjusted PPNR1 of $243 million, up 27% vs. PY PPNR • Adjusted total revenue1 up 17% vs. PY • Adjusted noninterest expenses1 up 10% vs. PY • $6.2B rec
Slide 6: Record Year of Loan Originations in 2025
RECORD YEAR OF LOAN ORIGINATIONS IN 2025 6 AND YET PIPELINE REMAINS HIGH AT $3.7 BILLION YoY Loan Production & Loan Pipeline $ in billions Small Business Banking Production Commercial Production Pipeline +57% $6.2 $2.6 $5.2 $2.4 $3.9 $3.7 $3.6 $1.7 $2.9 $3.6 $2.8 $2.2 2023 2024 2025 ©2026 Live Oak B
Slide 7: Live Oak's Core Business Generating Improved Leverage
LIVE OAK'S CORE BUSINESS GENERATING IMPROVED LEVERAGE 7 Live Oak Operating Leverage $ in millions 1 Adjusted PPNR $243 $ in millions $191 +27% YoY $154 +57% since FY 2023 2023 2024 2025 % CHANGE Adjusted1 YoY Diluted EPS $1.74 $1.58 $2.35 +49% Total Revenue $448 $494 $576 +17% Noninterest Expense $2
Slide 8: Taking the Long View
TAKING THE LONG VIEW 8 LIVE OAK CREDIT TRENDS REMAIN BETTER THAN THE SBA INDUSTRY Annualized SBA Net Charge-Off Ratio 2, 3 (10-year average) 1.1% 0.3% Live Oak 4 SBA Industry 5 ©2026 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation
Slide 9: Momentum Building Across Core Strategic Initiatives
LIVE OAK | MOMENTUM BUILDING ACROSS CORE STRATEGIC INITIATIVES 9 22% OF CUSTOMERS HAVE LOAN AND DEPOSIT ACCOUNTS; 57% GROWTH FROM PREVIOUS YEAR Deepening Wallet Share with Expanding Market Share with Expanded Banking Products Small Dollar SBA 7(a) loans $377 78% Production 94% $212 $212 $109 2024 20
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS ©2026 Live Oak Bancshares. All rights reserved.
Slide 11: Q4 Earnings Summary
Q4 EARNINGS SUMMARY 11 • Net Income of $44 million, +73% LQ and ~4.5x PYQ EPS • Diluted EPS of $0.95, +73% LQ and 4x PYQ • LQ improvement in ROACE and ROAA • Net $28.4 million gain in ventures investment portfolio PPNR • Reported PPNR of $84 million, +42% LQ and +79% PYQ • Adjusted PPNR1 of $64 mill
Slide 12: Q4 2025 Earnings Results
Q4 2025 EARNINGS RESULTS 12 Q4 2025 CHANGE VS. $ in millions Q4 2025 Q3 2025 Q4 2024 Key Highlights Net interest income $ 123 7% 26% • 2.19% unguaranteed ACL to unguaranteed loans and Soundness Noninterest income $ 50 85% 81% leases6 a Total revenue $ 173 21% 38% b Noninterest expense $ 89 7% 14% •
Slide 13: Generating Sustainable Operating Leverage
GENERATING SUSTAINABLE OPERATING LEVERAGE 13 1 Adjusted PPNR $ in millions $66 $64 $62 Q4 2025 Adjusted PPNR1 includes $ in millions ~$5 million of $53 intentional expenses: $50 software depreciation and severance/ +21% PYQ retirement 1 % CHANGE % CHANGE Adjusted Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2
Slide 14: Diversified Loan Originations Driving Growth
DIVERSIFIED LOAN ORIGINATIONS DRIVING GROWTH 14 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 Lender Finance Solar $1,649
Slide 15: Strong, Consistent Balance Sheet Growth Trends Continue
STRONG, CONSISTENT BALANCE SHEET GROWTH TRENDS CONTINUE 15 Period-End Loan and Deposit Balance Trends Total HFS and HFI Loans and Leases Total Deposits QoQ % Loan Growth $ in billions $13.7 $13.3 $12.4 $12.6 $12.4 $11.8 $11.9 $11.1 $11.4 $10.6 +17% Loan portfolio growth vs. PYQ 4% 5% 5% 4% 3% +18% C
Slide 16: Business Checking Continues to Grow
BUSINESS CHECKING CONTINUES TO GROW 16 CHECKING ACCOUNTS BUILDING DEEPER, MORE PROFITABLE RELATIONSHIPS Business Checking Customers $ in millions $648 $573 4.03% 3.88% $541 3.66% 3.54% $436 ~4% 3.75% Non-Interest $360 2.43% 2.31% 2.19% Bearing to Total 2.00% Deposits 2.47% $363 $377 +78% $279 $288 $
Slide 17: Net Interest Margin and Net Interest Income Trends
NET INTEREST MARGIN AND NET INTEREST INCOME TRENDS 17 +26% PYQ Q4 2025 Highlights $123 $115 • Net Interest Income +7% LQ $109 • Net Interest Margin +5bps LQ $101 Net Interest Income • Growth and pricing discipline driving $97 relatively stable net spreads LQ Net Interest Margin $ in millions 3.38% •
Slide 18: Loan Sales Continue to Provide Revenue, Liquidity, and Optionality
LOAN SALES CONTINUE TO PROVIDE REVENUE, LIQUIDITY, AND OPTIONALITY 18 $ 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 • Intentional pull-back in Q4 loan sales due to investment g
Slide 19: Expense Trends Support Growth and Commitment to Innovation
EXPENSE TRENDS SUPPORT GROWTH AND COMMITMENT TO INNOVATION 19 Quarterly Expenses $ in millions 1 Personnel expense Non-personnel expense Non-GAAP adjustments $89 $85 $84 $81 $2 $78 $3 $1 $34 $39 $35 $36 $34 $43 $46 $46 $50 $48 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Adjusted 59% 62% 57% 56% 58% Effi
Slide 20: Credit Quality Overview
CREDIT QUALITY OVERVIEW 20 Key Credit Metrics & Trends Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Over 30 days past due, accruing 10, 11 0.14% 0.09% 0.11% 0.14% 0.09% Non accrual ratio 10, 12 0.89% 1.03% 0.63% 0.73% 0.91% Net charge-off ratio 6, 13 1.39% 0.27% 1.19% 0.61% 0.48% ACL to loans & leases HF
Slide 21: Unique Balance Sheet Composition and the Mahan Ratio
UNIQUE BALANCE SHEET COMPOSITION AND THE MAHAN RATIO 21 GOVERNMENT GUARANTEED LOAN MIX IS ~11X THE INDUSTRY:14 40% OF ASSETS ARE CASH OR GOVERNMENT GUARANTEED Key Capital Events: Total Assets • $28.4 million gains from ventures investment portfolio in Q4 $ in millions $16,000 $14,000 CAPITAL RATIOS
Slide 22: Live Oak Focus
LIVE OAK | FOCUS 22 Building Seizing new Modernizing the sustainable growth opportunities engine momentum ©2026 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation
Slide 23: ©2026 Live Oak Bancshares. All rights reserved.
23 ©2026 Live Oak Bancshares. All rights reserved.
Slide 24: Appendix
APPENDIX ©2026 Live Oak Bancshares. All rights reserved.
Slide 25: Appendix: Presentation Footnotes
APPENDIX: PRESENTATION FOOTNOTES 25 1. Non-GAAP financial measures. See Appendix for reconciliation of non-GAAP items to reported balances. 2. Source: Lumos Technologies, Inc., SBA 7(a) Program Data for fiscal years ending September 30. 3. Default is defined as 60 days past due or indication that th
Slide 26: Forward Looking Statements
FORWARD LOOKING STATEMENTS 26 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business
Slide 27: Appendix: Reconciliation
APPENDIX: RECONCILIATION 27 Fintech Activities Impact on Consolidated Financials ($ in millions) Banking Activities Apiture Live Oak Ventures Canapi Advisors Fintech Activities Other Consolidated, as reported Actuals for the year ended December 31, 2023 Net interest income $ 345.9 $ — $ — $ — $ — $
Slide 28: Appendix: Reconciliation
APPENDIX: RECONCILIATION 28 Reconciliation of non-GAAP items to reported balances ($ in millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 a Net interest income, as reported $ 97.5 $ 100.5 $ 109.2 $ 115.5 $ 123.1 b Total noninterest income, as reported 27.5 22.4 30.5 26.8 49.8 Fair value adjustments:
Slide 29: Appendix: Reconciliation
APPENDIX: RECONCILIATION 29 Reconciliation of non-GAAP items to reported balances ($ in millions) FY 2023 (3) FY 2024 FY 2025 a Net interest income, as reported $ 345.3 $ 375.9 $ 448.4 b Total noninterest income, as reported 104.0 112.7 129.5 Fair value adjustments: Add loan servicing asset revaluat
Slide 30: Appendix: Reconciliation
APPENDIX: RECONCILIATION 30 Reconciliation of non-GAAP items to reported balances ($ in millions) FY 2023 (4) FY 2024 FY 2025 e Adjusted PPNR (1) $ 154.5 $ 191.5 $ 242.5 f Provision for credit losses, as reported 51.3 96.2 96.3 e-f Adjusted net income before tax $ 103.2 $ 95.3 $ 146.2 Net income to
Slide 31: Appendix: Reconciliation
APPENDIX: RECONCILIATION 31 ($ in millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total shareholders' equity $ 1,003.5 $ 1,031.4 $ 1,067.3 $ 1,202.5 $ 1,254.1 Less: Preferred stock — — — 96.3 96.3 Non-controlling interest — — — 4.3 4.2 Total common shareholders' equity 1,003.5 1,031.4 1,067.3 1,10
Slide 32: Appendix: Well-Diversified Loan Portfolio
APPENDIX: WELL-DIVERSIFIED LOAN PORTFOLIO 32 NO INDIVIDUAL VERTICAL BALANCE IS GREATER THAN 10% OF THE TOTAL LOAN PORTFOLIO $12.4 billion Portfolio Balance Average loan size of $1.2 million ~40 Unique Verticals ~31% of portfolio is government guaranteed ©2026 Live Oak Bancshares. All rights reserved
Slide 33: Appendix: Current and Past Production Driving Loan Growth
APPENDIX: CURRENT AND PAST PRODUCTION DRIVING LOAN GROWTH 33 4% PERIOD-END LOAN GROWTH LQ; 7% TOTAL NET GROWTH LQ BEFORE LOAN SALES Period End ($ in millions) Increase $958 Decrease Total $546 $12,394 $(662) $11,916 $(247) $(117) Q3 2025 Full Funded Other Loan Prepayment Guaranteed Unguaranteed Loan