Print
Banking & Finance

Live Oak's Latest Stock Offering Could Raise More Than $100M

By Cece Nunn, posted Aug 9, 2017
Live Oak announced a public offering of 4.5 million shares this week for the first time since the company launched its IPO in 2015.

Wilmington-based Live Oak Bancshares Inc. (NASDAQ: LOB), parent company of Live Oak Bank and Live Oak Ventures, announced Wednesday it had priced an underwritten public offering of the shares of its voting common stock at $23 per share for aggregate gross proceeds of about $103.5 million. Net proceeds, after underwriting discounts and commissions and expenses, are expected to be about $98.3 million, according to a news release.

The release said the company also has granted the underwriters a 30-day option to purchase up to an additional 675,000 shares, which would result in additional net proceeds of $14.8 million, if exercised in full.

Live Oak intends to use the net proceeds from the offering to make investments in the bank and in its non-bank subsidiaries, to enhance its capital position and that of the bank and for general corporate purposes, according to the release. The offering is expected to close on or about Aug. 14, subject to satisfaction of customary closing conditions.

The offering is consistent with the growth the company has experienced over the past couple years, said Brett Caines, CFO of Live Oak Bancshares Inc., on Wednesday.

"We wanted to be able to continue that growth, continue to be a very innovative bank, invest in our infrastructure and all really for the primary purpose of continuing to do what we do, which is help small businesses realize the American dream and enable them to succeed, as well as help them solve some of the technological challenges the banking industry tends to face," Caines said.

On July 26, Live Oak reported second quarter earnings of $9.8 million, or 27 cents per diluted share, compared to $123,000 for the second quarter of 2016.  The company achieved record-level production in the second quarter with loan and lease originations of $586.5 million.

A lot of Live Oak's loans are for the purpose of buying real estate, said Caines, giving the examples of small business owners who are planning to build veterinary or dental practices. Other verticals for Live Oak include accounting and tax firms, agriculture, educational services, family entertainment centers, funeral homes, government contracting, hotels, insurance, investment advisory, independent pharmacies, renewable energy, self-storage, senior care and wine and craft beverages.

Live Oak also leases solar panels, mainly to solar panel developers, Caines said.

"We've done a lot [of solar leasing] up in the Northeast because there's a big push for renewable energy so it's a very attractive product there," he said.

The latest stock offering will allow the company, which currently has 517 employees, to continue adding to its workforce in Wilmington and expanding into profitable realms.

"We see lots of opportunity out there," Caines said.

Story On The Map

Ico insights

INSIGHTS

SPONSORS' CONTENT
Dave sweyer 300 x 300

What You Should Know About Managing Your Own Rental

Dave Sweyer - Sweyer Property Management
Andyolsen 161723521

Trusts As A Tool In Long-term Care Planning

Andrew Olsen - CSH Law
1 shaun olsen 300x300

Marco Marsala: A Cautionary Tale

Shaun Olsen - CloudWyze

Trending News

Downtown Hilton Rebranding, Undergoing $8.5M Renovation

Cece Nunn - Nov 17, 2017

Feeding Frenzy

Allison Ballard - Nov 17, 2017

Shallotte Community To Feature Solar Energy, Clean Water Systems

Cece Nunn - Nov 17, 2017

Downtown Growing Into 24-Hour Hub

Christina Haley O'Neal - Nov 17, 2017

First-Time Homebuyers Face Challenges

Cece Nunn - Nov 17, 2017

In The Current Issue

Builder Aims To Create Apartment ‘Gems’

In a shady area surrounded by trees just off South 17th Street, builders found a real estate equivalent to a diamond in the rough. Plantatio...


Going Online For Animal Welfare

Janelle Babington bears such passion for animals that she made it her business to channel money to animal welfare organizations. She launche...


Feeding Frenzy

Those who’ve worked around the local restaurant scene for years, or decades, have seen the constant stream of eateries that open in the area...

Book On Business

The 2017 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2017 Health Care Heroes
Major Developments
WilmingtonBiz Expo - Key Note Lunch with Keynote Lunch with Chip Mahan - 2016