LOB · Live Oak Bancshares, Inc.

Live Oak Bancshares reported first quarter 2026 results with net income of $27.9 million ($0.60 per diluted share), representing a significant year-over-year increase of 187.6% but a sequential decline of 36.7% from the fourth quarter of 2025. The quarter-over-quarter decrease was primarily driven by a 15.9% decline in total revenue to $145.5 million, which management attributed to one-time gains in the prior quarter including a $24.1 million pre-tax gain from the sale of Apiture, Inc. and a $9.0 million gain from the sale of a portfolio investment. Despite the revenue decline, the company demonstrated strong operational performance with loan production of $1.37 billion and deposit growth of $146.4 million, contributing to total asset growth of 1.1% to $15.30 billion compared to the prior quarter. Credit quality showed improvement with provision for credit losses decreasing to $20.1 million, down $1.7 million from Q4 2025 and $8.9 million from Q1 2025. Net interest margin compressed 11 basis points to 3.27% from 3.38% in the prior quarter, while net interest income decreased 3.0% sequentially but increased 18.8% year-over-year. Management highlighted momentum in 2026 with strong loan production, deposit growth, and stable credit performance, while emphasizing focus on key initiatives including Live Oak Express and business checking, along with balance sheet strength and prudent capital management. The company will host a conference call on April 23, 2026, to discuss results and business outlook.