Live Oak Bancshares (LOB) Q3 2026 earnings summary

Executive summary

• Reported diluted EPS was $0.52; adjusted EPS was $0.49, or $0.76 excluding the $0.27-per-share distillery provision impact.

• Adjusted PPNR reached a record $88M, up 33% YoY; reported PPNR was $89.9M, up 53% YoY.

• Record originations of $2.134B and 16% YoY growth in loans and deposits highlighted balance-sheet expansion.

Financial highlights

• Revenue was $175.6M, up 23.4% YoY; adjusted revenue was $172M, up 15%, while adjusted expenses rose 1% to $84M.

• Net interest income was $133.0M, up 15.2% YoY; net interest margin was 3.30%, down 3 bps YoY.

• Provision for credit losses was $54.7M, including $16.8M specific to the exited distillery portfolio.

• Q3 noninterest income rose 58.8% YoY to $42.6M, including an $8.6M warrant gain and higher loan-sale gains.

Outlook and guidance

• NIM is expected to remain relatively stable near term; NII is expected to grow with the balance sheet, subject to loan growth and deposit competition.

• A 25 bps rate hike could add $5M–$10M to annual NII; modeled NII sensitivity was +19.1% for a +300 bps shock over the 12 months ending September 30, 2027.

• Expense growth is expected to be modest, with efficiency gains supported by controls, automation, AI and revenue initiatives.

• Live Oak Express targets $750M+ in annual production; strategic priorities include scaling Express and Business Checking and applying AI.