Live Oak Bancshares, Inc. · NYSE:LOB

Live Oak Bancshares — Q1 2017 Earnings Presentation

12 slides from Live Oak Bancshares's earnings presentation, Apr 27, 2017

1. Slide 1: Live Oak Bancshares First Quarter 2017

   Live Oak Bancshares First Quarter 2017 ©2017 Live Oak Bancshares. All rights reserved.

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: Q1 Highlights

   Q1 Highlights • Originations • Increased 65% YOY. $285mm Q1/16 vs. $469mm Q1/17 • New Verticals, New Products & Services, & New Businesses • Renewable Energy • Lending—Utility Grade Solar projects: USDA REAP Program. Fully funding loans (70%-80% Guaranteed) • Investment Tax Credit—Live Oak Clean Ene

4. Slide 4: Robust Loan & Lease Origination

   Robust Loan & Lease Origination 39% 65% CAGR Growth 2012-2016 4

5. Slide 5: Powerful Scalability

   Powerful Scalability 2008-2014 2015-2016 2017 Live Oak 1.0 Live Oak 2.0 Live Oak 3.0 • Veterinary • Wine & Craft Bev. • Solar Panel Leasing • Healthcare • Self Storage • Equipment Leasing • Ind. Pharmacies • Ind. Insurance • Educational Services • Death Care • Hotels • Investment Adv. • Renewable En

6. Slide 6: Model Leverage | Mature vs. New Verticals

   Model Leverage | Mature vs. New Verticals Profitability Q1 2017 Originations (Verticals 1.0) Q1 2017 Originations (Verticals 2.0) $256 million $194 million Direct Operating Cost1 per $1 million Originations Direct Operating Cost1 per $1 million Originations $23.3 thousand $15.7 thousand Direct Opera

7. Slide 7: Driving Greater Diversification & Profitability

   Driving Greater Diversification & Profitability n Innovation History Live Oak Bank u nCino Spinoff – Backend Workflow u Live Oak Rebuilt Development Staff v Customer Portal Live Oak Ventures v Right Side of the Balance Sheet Live Oak Government Loan n Live Oak Ventures Bancshares Solutions u Solving

8. Slide 8: Live Oak Ventures

   Live Oak Ventures • Minor Investments in Companies that “Solve the Problem” • Common Characteristics Cyber Security • Open and API Based Omni- • On new Cloud Operating Systems channel Deposits CIF/CRM (Force.com, AWS, etc.) Finxact • Proven Leadership Core • Strong Investor Ecosystem • Partner Banks

9. Slide 9: Growing Recurring Revenue

   Growing Recurring Revenue Year-Over-Year Year-Over-Year 60% Recurring Revenue1 Growth 78% Portfolio Growth 11 1. Net Interest Income plus Loan Servicing Revenue 9

10. Slide 10: First Quarter 2017 | Financial Highlights

    First Quarter 2017 | Financial Highlights 65% increase versus Q1 2016 60% increase versus Q1 2016 78% increase versus Q1 2016 Loan & Lease Originations Net Interest Income & Total Loans & Leases Loan Servicing Revenue $469 million $1.5 billion $22 million 34% increase versus Q1 2016 60% increase ver

11. Slide 11: Proactive Approach to Credit Decisions & Monitoring

    Proactive Approach to Credit Decisions & Monitoring Safety & Soundness 63 bps Versus Q4 2016 of 39 bps 1.82% Versus Q4 2016 of 2.01% Annualized Net CO to ALLL to Loans & Leases HFI Average Loans & Leases HFI $3.9 million Versus Q4 2016 of $5.0 million 20 bps Versus Q4 2016 of 29 bps Unguaranteed Non

12. Slide 12: ©2017 Live Oak Bancshares. All rights reserved.

    ©2017 Live Oak Bancshares. All rights reserved.

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