Print
Banking & Finance

Live Oak Bank Tops $1B Valuation

By Jenny Callison, posted Nov 30, 2017
A homegrown Wilmington company is now worth more than $1 billion.
 
On Wednesday, Live Oak Bancshares’ stock closed at $26 per share on the Nasdaq exchange, giving the company a market capitalization of slightly over the $1 billion mark, according to officials.

Financial website Equities.com reported Wednesday that LOB stock has traded between $26.05 and $16.60 over the past 52 weeks. It debuted on Nasdaq on July 24, 2015 at $17 per share.

While the billion-dollar milestone is significant, reaching it will not change the banking company’s momentum or focus, Scott Custer, president of subsidiary Live Oak Bank, said Thursday.
 
“We don’t get caught up in the stock price every day, and we don’t run the company based on the daily moves of our stock price,” he said.
 
There are, according to Custer, some advantages to having a valuation of more than $1 billion, however.
 
“Being over $1 billion in market cap gives you a little different profile among public companies. You see more activity and liquidity in your stock. You get more followers of your stock and your company,” he said.
 
In fact, LOB has experienced just that. Equities.com reported Wednesday that the company’s shares had traded on “unusually high volume” that day, as the stock gained about 2.5 percent to close at $26.

“On the day, Live Oak Bancshares Inc. saw 130,441 shares trade hands on 1,259 trades. Considering that the stock averages only a daily volume of 83,689 shares a day over the last month, this represents a pretty significant bump in volume over the norm,” Equities.com stated.

Custer said that a market capitalization in the billion-plus neighborhood is often a reflection of the company’s performance.

“It’s not only how you have grown but whether you have delivered what you said you were going to deliver,” he said. “There is credibility in the management of the company. Live Oak’s story is a good story for the future, and people are willing to invest in it.”

Passing the billion mark also gives a company “better optionality about what it wants to do in the future,” Custer said. But he doesn’t expect big changes in the foreseeable future.
 
“For Live Oak in the near term, the quick answer is more of the same. Our business model is still working exceptionally well. Look at our performance for the first three quarters of this [calendar] year; see what it’s been.” 

Custer said Live Oak Bancshares will continue building on its success, adding new industry verticals and looking for new areas in which to grow the lending business and working to increase the deposit side of the ledger.
 
“We’re not going to get complacent; we have a lot more ground to plow,” he said.
Ico insights

INSIGHTS

SPONSORS' CONTENT
Mike stonestreet 300x300

Play it Safe When Planning Summer Celebrations

Mike Stonestreet - CAMS (Community Association Management Services)
Sabrinaheadshot300x300

What are We Selling?

Sabrina Davis - Port City Signs & Graphics
Susan 2 april242017

Reverse Mortgage Can Be Helpful but Beware of Pitfalls

Susan Willett - Old North State Trust, LLC

Trending News

A First Peek At Downtown Wilmington's Latest Luxury Apartment Plans

Cece Nunn - Jul 12, 2018

Cameron Land Firm Sues DOT Over Previous Restrictions On 1,800 Acres

Cece Nunn - Jul 13, 2018

Realtors Describe Thriving Market, Concerns For Future

Cece Nunn - Jul 13, 2018

Former Rite Aid Locations In Wilmington Available For Lease

Johanna Cano - Jul 13, 2018

What’s Next In Local Grocery Wars?

Cece Nunn - Jul 13, 2018

In The Current Issue

Talking Tariffs

As the United States navigates a trade war, some local companies and officials are keeping a close eye on the effects of the country’s trade...


Bank Offers Workplace Financial Wellness

SunTrust Bank has rolled out a program designed to help employees of other companies become more confident about their own financial plannin...


Pat Koballa Shifts Gears

Pat Koballa recently ended 32 years as an executive general manager with Stevenson Automotive Group to begin his new journey as an owner of...

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2018 Power Breakfast - Dishing on the Restaurant Biz
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties
2017 Health Care Heroes