Live Oak Bancshares Inc. reported a third-quarter net income that beat analyst expectations due to a strong loan business.

The bank reported earnings $3.5 million, or 10 cents per share, up from earnings of $2.9 million, or 9 cents per share, in the third quarter of 2015.

Analysts predicted earnings of 8 cents per share.

Wilmington-based Live Oak set a record and generated over $1 billion in loans in the first nine months of the year. It is on track to meet its expectation of $1.5 billion in loan origination by years end.

The bank originated 26 percent more loans in the third quarter of 2016 than the third quarter of 2015. Loan originations are up over 6 percent from the prior quarter.

Live Oak was created in 2007. The bank specializes in creating loans for new and expanding businesses. Instead of using branch locations, Live Oak operates entirely online.

Live Oak stock rose 90 cents to $15.15 on Thursday.

The filing can be found here.

This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism.