Live Oak Bancshares (LOB) investor relations material

Executive summary

• Achieved net income of $23.4 million ($0.51 per diluted share) for Q2 2025, up 141% sequentially and down 13% year-over-year, with strong momentum in lending, deposits, and revenue.

• Record loan and lease production of $1.53 billion, with total assets rising to $13.83 billion, driven by robust small business and commercial lending.

• Strong deposit growth, with total deposits up 1.6% sequentially and 20% year-over-year to $12.6 billion, deepening customer relationships.

• AI-driven modernization, technology investments, and targeted initiatives in checking and small dollar loans are enhancing profitability and resilience.

• Pre-provision net revenue increased 29% quarter-over-quarter and 14% year-over-year, with efficiency and capital ratios improving.

Financial highlights

• Total revenue reached $144 million, up 14% sequentially and 20% year-over-year; net interest income was $109 million, up 9% sequentially and 19.6% year-over-year.

• Net income was $23 million, with diluted EPS of $0.51, up $0.30 sequentially; net interest margin improved to 3.28%.

• Loan originations hit a record $1.5B, up 9% sequentially and 30% year-over-year; loan and lease balances increased 3% sequentially and 19% year-over-year to $11.4 billion.

• Noninterest expense was $89.3 million, up 15% year-over-year, including a $2.8 million loss from a bioenergy lease buyout.

• Provision for credit losses was $23.3 million, up 97.6% year-over-year, reflecting loan growth and macroeconomic pressures.

Outlook and guidance

• Management expects continued strong loan and deposit growth, with a $3.8B pipeline and annualized loan growth tracking at 15%.

• Focus remains on margin expansion, reducing deposit costs, and supporting clients amid economic uncertainty.

• The company is moderately asset-sensitive and models various interest rate scenarios to manage risk.