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

Ico insights

INSIGHTS

SPONSORS' CONTENT
1 shaunolsen

HereSourcing

Shaun Olsen - CloudWyze
Cindystancil140x14072 111014114358

Is Your Home Appropriate For The Long-Term?

Cindy Stancil - Liberty Senior Living Management Services, LLC
Benton toups 121214104229

Workers’ Compensation Law – The Very Basics

Benton Toups - Cranfill Sumner & Hartzog LLP

Book On Business

2015 bookonbusiness

The 2015 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!
Print Only
$19.95 - Qty
Print + Excel File
$79.95 - Qty

In The Current Issue

Latinos, Lawyers Grapple With Executive Action

The Obama administration’s immigration deferral program has resulted in an uptick in inquires to local immigration lawyers, even as its fate is decided in the court system.

Novant Health Reports Healthy Profit

Novant Health, parent company of Novant Health Brunswick Medical Center, recently announced audited financial results for the not-for-profit...

SunTrust Survey Shows Weak Savings Habits

It’s not just households hovering near the poverty range that live paycheck to paycheck, according to a survey released this month by SunTru...

Ico topnews Editor's Picks

Technology

Cloudwyze

CloudWyze was created to help businesses focus and perform at their optimal level. It is difficult to find and implement the right technology for your company. That’s where we can help. We have exp ...more

Ico newsinimages News in Pictures

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

Gallery Galleries

Video Videos

Power Breakfast Series - Special Sauce for Economic Development - March. 2014
WilmingtonBiz Expo Keynote - Ken Lowe - Founder HGTV, CEO Scripps Networks - March. 2014

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