Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Investor Presentation (February 2016)
15 slides from Live Oak Bancshares's investor presentation, Feb 5, 2016
Slide 1: Live Oak Bank
Live Oak Bank The Next Genera,on, Completely Digital, Business Bank © 2016 Live Oak Banking Company. All rights reserved. Member FDIC
Slide 2: Live Oak Bancshares | Forward Looking Statements
LIVE OAK BANCSHARES | FORWARD LOOKING STATEMENTS Informa,on in this presenta,on may contain “forward-‐looking statements” within the Private Securi,es Li,ga,on Reform Act of 1995. These statements generally relate to our financial condi,on, results of opera,ons, plans, objec,ves, future performance
Slide 3: Live Oak Revenue Generation
Live Oak Revenue Generation Overview Typical $1 Million Loan Income Statement 75% Guaranteed 750,000 Year ended December 31, 2015 (in $000s) Gain on Sale 10% 75,000 Interest Income 34,451 Servicing Income 1% 7,500 Interest Expense 8,862 15% Unguaranteed 150,000 Net Interest Income 25,589 Participate
Slide 4: Production Growth & Platform Scalability
Production Growth & Platform Scalability VerHcality
Slide 5: Revenue over Time by Key Verticals
Revenue over Time by Key Verticals (Year Ended December 31, 2015) 30 25 Loans and fees on loans Loan servicing revenue Net gains on sales of loans Revenue (dollars in millions) 20 11.8 13.7 15 12.4 10.7 10 6.9 2.8 9.3 4.4 0.4 5 3.1 7.5 8.3 1.6 6.8 4.3 1.2 0.5 2.7 2.3 2.0 1.8 0.2 0 0.5 0.5 Veterinary
Slide 6: Just for Grins – A Lookback
Just for Grins – A Lookback 2015 2014 2013 Net interest income, servicing revenue & gains on sale of loans $109.1M $77.5M $59.3M Adjusted Pre-‐Tax Net Income (see below) $30.6M $22.1M $15.7M Capital $199.5M $91.8M $48.4M Headcount 337 192 141 Produc,on $1,158.6M $848.1M $498.8M ReconciliaHon of rep
Slide 7: Continued Growth
Continued Growth 2016 Expectations • 15% to 20% growth over 2015 in loans originated ($1.35 Billion to $1.40 billion) • 40% to 45% of loans fully funded at closing
Slide 8: Portfolio Characteristics
Portfolio Characteristics Asset Quality • Granular: $340 million of unguaranteed • 0.41% 2014 Net Charge-offs Unguaranteed exposure ($133,000 per loan) • 0.30% Q1 2015 Net Charge-offs Unguaranteed • Geographic Diversity: California largest • 2.61% NPLs to total assets at March 31, 2015 concentration
Slide 9: Safety & Soundness
Safety & Soundness • Portfolio Average DSCR greater than 2.0x • Portfolio Average FICO greater than 700 • Net charge-offs were $205 thousand in the fourth quarter of 2015
Slide 10: Fourth Quarter 2015 Highlights
Fourth Quarter 2015 Highlights Financials • Loan production totaled $330.8 million • Guaranteed loans sold in the secondary market rose to $219.3 million • Net gains on loan sales grew to $20.8 million • Combined net interest and servicing revenues increased to $12.9 million • Nonperforming loans (u
Slide 11: Year over Year Highlights
Year over Year Highlights Financials (Dollars in millions, except per share data) Increase 2015 2014 Dollars Percent Net income $ 20.6 $ 10.0 $ 10.6 106 % Basic EPS 0.66 0.42 0.24 57 Diluted EPS 0.65 0.41 0.24 59 Loan production 1,158.6 848.1 310.5 37 Loan sales 640.9 433.9 207 48 Net gains on sales
Slide 12: Year over Year Growth
Year over Year Growth Overview Originate Sell Service
Slide 13: Capital Efficiency
Capital Efficiency Financials
Slide 14: Technology Spend as a Function of NIE
Technology Spend as a Function of NIE 1 2014 OnDeck S-‐1 Filing: Technology and Analy2cs/Total Opera2ng Expenses 2 2014 Lending Club S-‐1 Filing: Engineering and Product Development/Total Opera2ng Expenses 3 2012 ICBA Community Bank Technology Survey Results (Technology Spend as a Percent of Nonin
Slide 15: © 2016 Live Oak Banking Company. All rights reserved. Member FDIC
© 2016 Live Oak Banking Company. All rights reserved. Member FDIC
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