Live Oak Bancshares Reports $27.9 Million Net Income in Latest Quarter

Live Oak Bancshares, Inc. reported significant financial growth in its latest quarterly results, with net income attributable to common shareholders reaching $27.9 million, or $0.60 per diluted share, for the three months ended March 31, 2026. This marks a substantial increase from the $9.7 million, or $0.21 per diluted share, reported in the same period last year. The increase in net income was primarily driven by an 18.8% rise in net interest income, which totaled $119.4 million, up from $100.5 million in the prior year. The provision for credit losses also decreased by 30.6% to $20.1 million, compared to $29.0 million in the first quarter of 2025.

In terms of operational metrics, Live Oak Bancshares experienced a 1.1% increase in total assets, which rose to $15.30 billion from $15.13 billion at the end of 2025. The growth in total assets was largely attributed to an increase in loans and leases held for investment, which grew by $199.9 million, or 1.6%, to $12.59 billion. Total deposits also saw a modest increase of $146.4 million, or 1.1%, reaching $13.84 billion, reflecting the company's strategy to support loan growth and maintain liquidity.

The company has also made strides in its operational efficiency, with a focus on enhancing its loan portfolio. The total loans and leases held for investment at historical cost increased by 14.8% year-over-year, driven by strong origination activity of $1.37 billion during the first quarter. However, net charge-offs increased to $18.6 million, or 0.63% of average quarterly loans, compared to $6.8 million, or 0.27%, in the same period last year, indicating some strain in the loan portfolio amid a challenging economic environment.

Live Oak Bancshares continues to focus on strategic growth and operational improvements. The company is actively working to enhance its internal controls, particularly in relation to loan participation activities, following the identification of a material weakness in its internal control over financial reporting. Management is implementing a remediation plan aimed at strengthening oversight and training to ensure compliance with accounting standards. Looking ahead, the company remains cautiously optimistic about its growth trajectory, although it acknowledges the potential impact of economic conditions on its operations and credit quality.