Live Oak Bancshares Inc., reported third-quarter earnings below analyst expectations.
The company was trading at $19.27 on Thursday, down 4.8 percent.
The Wilmington-based company reported net income of $14.3 million, or 34 cents per share, up from net income of $12.9 million, or 33 cents per share in the same quarter a year ago.
The results did not match analysts expectations. Analysts expected earnings of 36 cents per diluted share.
“Recurring revenue continues to grow through net interest income and servicing and further fortifies the Live Oak business model as we continue in our mission to empower small business owners,” said CEO James S. Mahan III in a statement.
“We are very excited about the opportunities we have on the horizon to serve the needs of more small businesses across the U.S. and revolutionize the financial services industry by driving technological advancements for digital banking through strategic alliances and investments.”
The company’s loans and lease portfolio of $2.28 billion increased 22.3 percent above its level of a year ago. Loans and leases held for investment increased by 6.3 percent compared to the second quarter of this year, while loans held for sale decreased by 14.7 percent.
Loans and lease originations totaled $377.3 million during the third quarter of this year, a decline of $114.5 million from the second quarter of 2018. This was due to seasonal slowdowns in the renewable energy sector combined with increased competition.
The company’s net interest income rose to $27.7 million in the third quarter of this year, compared to $21 million for the same quarter last year.
The increase is due to growth in the combined held for sale and held for investment loan and lease portfolios along with higher investment security holdings.
The company incurred costs of $2.7 million, or 5 cents per share, related to the exit of its title insurance business.
Live Oak Bank is a subsidiary of Live Oak Bancshares, a bank holding company. It is one of the nation’s leading originators of small business loans.
The filling can be found here.
This story is from the North Carolina Business News Wire, a service of the University of North Carolina Chapel Hill’s School of Media and Journalism.
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