Wilmingtonbiz logo
Print
Banking & Finance

Live Oak Bank Plans To Go Public

By Jenny Callison, posted Apr 15, 2014
Wilmington’s only locally based bank has announced plans to go public.

On Monday, Live Oak Bancshares Inc. – parent of Live Oak Banking Company – filed a Form S-1 Registration Statement with the U.S. Securities and Exchange Commission announcing its intention to offer shares of common stock to the public. No share price was included in the document.

According to the document, Live Oak will apply to list its common stock on the NASDAQ exchange under the symbol LOB. Bank officials also indicated in the document that its proposed public sale of stock would begin “as soon as practicable” after its registration statement becomes effective.

Officials stated in the Registration Statement that net proceeds of the sale of stock shares will be used to “pay off outstanding debt of the Company estimated to be $8.0 million at the time of the offering, to support the growth and expansion of our franchise and for general corporate purposes such as investments in the development of new technology platforms.”

The statement continued, “We may also use net proceeds for possible acquisitions of, or investments in, bank or permissible non-bank entities, including opportunities to enhance and optimize our internal operations.”

Bank officials stated in the document that Live Oak will take three steps in connection with the completion of the stock offering: spin off ownership interests in nCino, the bank’s software enterprise; terminate Live Oak’s status as a Subchapter S corporation and convert to a C Corporation for federal income tax purposes; and pay a cash dividend to existing shareholders prior to that conversion.

Bank officials declined to comment publicly on the filing.

From its inception, Live Oak Bank has been primarily a small business lender, making SBA-guaranteed loans to businesses in niche industries. The first loans were made to independent veterinarians; subsequently, Live Oak’s industry list has grown to include independent pharmacists, dental and medical practices, funeral homes, independent financial advisors, family entertainment businesses and poultry growers.

This business model has been very successful for Live Oak Bank. According to information provided in the Registration Statement, that model has yielded a compounded growth rate in loan production of 25 percent since the bank’s founding in 2008. In the federal fiscal year of 2012-2013, Live Oak Bank was the third most active SBA 7(a) lender in the U.S., behind only Wells Fargo Bank and U.S. Bank.

Join The Discussion

Similar Stories

Book On Business

2016 bob cover

The 2016 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!
Print Only
$24.95 - Qty
Print + Excel File
$79.95 - Qty

In The Current Issue

Aquesta Bank Expands To Wilmington

Aquesta Bank’s new branch office in Wilmington is now open.

Fiddler On The Solar-powered Roof

In 2007, working out of his living room, John Donoghue founded Cape Fear Solar Systems, which has steadily grown since as solar-panel costs ...

Sound Bank Names Wilmington Advisory Board

The Wilmington office of Sound Bank has created a local advisory board and recently named the board’s six members....

Ico topnews Editor's Picks

YMCA Purchases Land On Market Street

Cece Nunn - About 2 hours ago Trending News

UNCW Names Swain Center Director

Jeff Hidek - Jul 26, 2016 Trending News

MedSouth Buys Eye Clinic Property For $1.85M

Cece Nunn - Jul 26, 2016 Trending News

Dosher Medical Facility Set To Open

Jenny Callison - Jul 25, 2016
Other

Markraft Cabinets

MarKraft Cabinets specializes in cabinet and countertop design and installation in both new residential and commercial construction, as well as custom remodeling projects.

Ico trending Trending News

Ico newsinimages News in Pictures

Have a tip, pitch or guest column?  Send us a tip.

Gallery Galleries

Video Videos

Power Breakfast Series - The future of higher education - Sept. 2015
WilmingtonBiz Expo - Key Note Lunch with DONALD CROTEAU CEO, Vertex Rail - 2015

Register to Continue Seeing Wilmington's Best Business Coverage!


There are three ways to register for free.

Sign in with LinkedIn, Facebook or create an account:



Already registered? Login here.

Your free registration includes:

  • Access to 10 articles per month on WilmingtonBiz.com
  • Email updates to stay informed on local business news
  • A mobile optimized website
  • Advanced notification of Business Journal events
  • Management of your digital and print subscriptions
Laptop iphone ipad