Live Oak's performance in the quarter, compared to the fourth quarter of 2025 and first quarter of 2025, includes these notable items:
Strong loan production of $1.37 billion accompanied by strong deposit growth of $146.4 million in the first quarter of 2026, with total assets growing by 1.1% and 12.5% to $15.30 billion compared to the fourth quarter of 2025 and first quarter of 2025, respectively
Net interest income decreased 3.0% and increased 18.8% compared to the fourth quarter of 2025 and first quarter of 2025, respectively. Net interest margin decreased 11 basis points during the first quarter of 2026 from 3.38% for the fourth quarter of 2025 to 3.27% and increased 7 basis points compared to the first quarter of 2025
Revenue (comprised of net interest income and noninterest income) decreased 15.9% and increased 18.4% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, and noninterest expense decreased 4.3% and increased 5.6% compared to the fourth quarter of 2025 and first quarter of 2025, respectively, which generated a 28.1% decrease and 43.0% increase in pre-provision net revenue1 compared to the fourth quarter of 2025 and first quarter of 2025, respectively. The decrease in revenue and pre-provision net revenue1 compared to the fourth quarter of 2025 is largely related to a $24.1 million pre-tax gain related to the sale of Apiture, Inc. and $9.0 million gain arising from the sale of a portfolio investment in the fourth quarter of 2025
Provision expense for credit losses of $20.1 million for the first quarter of 2026, decreased $1.7 million and $8.9 million compared to the fourth quarter of 2025 and first quarter of 2025, respectively
"We are pleased with the momentum we've carried into 2026. Our first quarter results reflect the strength of our differentiated model and our commitment to serving America's small business owners," said Live Oak Chairman and CEO James S. (Chip) Mahan III. "We delivered strong loan production, deposit growth, and stable credit performance during the quarter. We remain focused on our key initiatives, Live Oak Express and business checking, in addition to balance sheet strength and prudent capital management. We believe we are well positioned to support our customers, manage through a dynamic environment, and continue building long-term value for shareholders."
Conference Call
Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, April 23, 2026, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 98602. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:
Live Telephone Dial-In
U.S.: 800.549.8228International: +1 646.564.2877 Pass Code: None Required
Live Webcast Log-In
Webcast Link: investor.liveoakbank.com Registration: Name and Email Required Multi-Factor Code: Provided After Registration
(1) See accompanying GAAP to Non-GAAP Reconciliation.
First Quarter 2026 Key Measures
(Dollars in thousands, except per share data)
1Q 2026 Change vs.
4Q 2025
1Q 2025
1Q 2026
4Q 2025
1Q 2025
$
%
$
%
Total revenue(1)
$
145,474
$
172,907
$
122,903
$
(27,433
)
(15.9) %
$
22,571
18.4
%
Total noninterest expense
85,293
89,153
80,807
(3,860
)
(4.3
)
4,486
5.6
Provision for credit losses
20,100
21,845
28,964
(1,745
)
(8.0
)
(8,864
)
(30.6
)
Income before taxes
40,081
61,909
13,132
(21,828
)
(35.3
)
26,949
205.2
Effective tax rate
25.3
%
25.5
%
26.4
%
n/a
n/a
n/a
n/a
Net income attributable to common shareholders
$
27,946
$
44,116
$
9,717
$
(16,170
)
(36.7) %
$
18,229
187.6
%
Diluted earnings per common share
0.60
0.95
0.21
(0.35
)
(36.8
)
0.39
185.7
Loan and lease production
1,368,311
1,638,113
1,396,223
(269,802
)
(16.5
)
(27,912
)
(2.0
)
Total loans and leases
12,593,529
12,393,677
11,061,866
199,852
1.6
1,531,663
13.8
Total assets
15,300,033
15,134,778
13,595,704
165,255
1.1
1,704,329
12.5
Total deposits
13,835,058
13,688,659
12,395,945
146,399
1.1
1,439,113
11.6
(1) Total revenue consists of net interest income and total noninterest income.
Important Note Regarding Forward-Looking Statements
Statements in this press release that are based on other than historical data or that express the Company's plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration ("SBA") rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; risks relating to the deployment and use of artificial intelligence by the Company, its customers, and counterparties; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and available at the SEC's Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
About Live Oak Bancshares, Inc.
Live Oak Bancshares, Inc. (NYSE:LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank.
Contacts:
Walter J. Phifer | CFO | Investor Relations | 910.202.6926Claire Parker | Corporate Communications | Media Relations | 910.597.1592
Live Oak Bancshares, Inc.Quarterly Statements of Income (unaudited)(Dollars in thousands, except per share data)
Three Months Ended
1Q 2026 Change vs.
1Q 2026
4Q 2025
3Q 2025
2Q 2025
1Q 2025
4Q 2025
1Q 2025
Interest income
%
%
Loans and fees on loans
$
214,129
$
218,852
$
211,599
$
204,513
$
195,616
(2.2
)
9.5
Investment securities, taxable
13,009
12,679
12,175
11,648
11,089
2.6
17.3
Other interest earning assets
6,726
8,124
7,654
8,123
6,400
(17.2
)
5.1
Total interest income
233,864
239,655
231,428
224,284
213,105
(2.4
)
9.7
Interest expense
Deposits
112,847
114,879
114,266
113,380
110,888
(1.8
)
1.8
Borrowings
1,617
1,656
1,677
1,683
1,685
(2.4
)
(4.0
)
Total interest expense
114,464
116,535
115,943
115,063
112,573
(1.8
)
1.7
Net interest income
119,400
123,120
115,485
109,221
100,532
(3.0
)
18.8
Provision for credit losses
20,100
21,845
22,242
23,252
28,964
(8.0
)
(30.6
)
Net interest income after provision for credit losses
99,300
101,275
93,243
85,969
71,568
(2.0
)
38.7
Noninterest income
Loan servicing revenue
9,094
9,227
8,812
8,565
8,298
(1.4
)
9.6
Loan servicing asset revaluation
(3,487
)
(3,932
)
(4,360
)
(3,057
)
(4,728
)
11.3
26.2
Net gains on sales of loans
15,425
12,313
17,099
17,570
15,438
25.3
(0.1
)
Net (loss) gain on loans accounted for under the fair value option
(1,165
)
1,518
(350
)
1,082
(1,034
)
(176.7
)
(12.7
)
Equity method investments (loss) income
(817
)
23,812
(1,470
)
(2,716
)
(2,239
)
(103.4
)
63.5
Equity security investments gains, net
—
4,691
18
1,004
20
(100.0
)
(100.0
)
Lease income
2,135
2,196
2,179
3,103
2,573
(2.8
)
(17.0
)
Other noninterest income
4,889
(38
)
4,917
4,904
4,043
12,965.8
20.9
Total noninterest income
26,074
49,787
26,845
30,455
22,371
(47.6
)
16.6
Noninterest expense
Salaries and employee benefits
49,354
47,988
49,910
46,008
45,529
2.8
8.4
Travel expense
1,463
1,715
1,618
1,634
2,064
(14.7
)
(29.1
)
Professional services expense
2,516
2,855
1,999
2,874
3,024
(11.9
)
(16.8
)
Advertising and marketing expense
3,051
2,298
1,839
4,420
3,665
32.8
(16.8
)
Occupancy expense
2,410
2,317
2,339
2,369
2,737
4.0
(11.9
)
Technology expense
9,749
13,397
10,234
10,066
9,251
(27.2
)
5.4
Equipment expense
3,693
3,677
3,320
3,685
3,745
0.4
(1.4
)
Other loan origination and maintenance expense
5,919
4,917
4,777
4,190
4,585
20.4
29.1
Renewable energy tax credit investment impairment
—
129
336
270
—
(100.0
)
—
FDIC insurance
4,401
3,933
3,643
3,545
3,551
11.9
23.9
Other expense
2,737
5,927
