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 distillery provision impact.

• Record adjusted PPNR of $88M, up 33% YoY, reflected operating momentum despite $54.7M of provision expense.

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

Financial highlights

• Revenue was $175.6M, up 23.4% YoY; reported PPNR was $89.9M, up 52.9%, while provision expense was $54.7M.

• Adjusted revenue grew 15% YoY to $172M; adjusted expenses rose 1% to $84M, and adjusted PPNR increased 33% to $88M.

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

• Net income attributable to common shareholders was $24.3M versus $25.6M YoY; diluted EPS was $0.52 versus $0.55.

• Gain on sale of guaranteed loans was $19M, up 12% QoQ and YoY; average premium on total loan sales was 7%.

Outlook and guidance

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

• Each 25 bps rate hike could add $5M–$10M to annual NII; margin impact depends on growth and deposit competition.

• Expense growth was expected to remain modest, with continued efficiency improvements from expense controls, automation, AI and revenue initiatives.

• Priorities include scaling Live Oak Express and Business Checking, applying AI, and sustaining operating leverage while prioritizing soundness, profitability and growth.