Banking & Finance

Live Oak Reports Higher Earnings, Deposits At End Of Q3 2020

By Jenny Callison, posted Oct 22, 2020
Several of Live Oak Bancshares’ key metrics were up as of Sept. 30, the end of the company’s third quarter. Net income and earnings per share were higher than those of both the second quarter of 2020 and the third quarter of 2019, company officials reported Wednesday.
The company’s net income for Q3 of 2020 was $33.8 million, up 767% from the net income of $3.8 million a year earlier and roughly the same percentage increase from the net income of $3.8 million at the end of Q2 of this year.  This past quarter’s diluted earnings per share were 81 cents, compared to 9 cents for Q3 2019 and Q2 2020.
The earnings per share amount exceeded analysts’ expectations by 56 cents, according to Seeking Alpha, a content service for financial markets.
Loan and lease origination during the quarter rose as well: Q3’s total was $966.5 million, up 72% from $562.3 million a year ago. Loan and lease production from the second quarter of this year, however, was substantially higher (at nearly $2.2 billion) because of Live Oak’s high volume of Paycheck Protection Program loan origination.
Total loans and leases at the end of September were at $6.2 billion, an 87% increase over the $3.3 billion value at the end of Q3 2019.
“We understand what a challenging year this has been for everyone, and we are pleased to report that our performance during the third quarter of 2020 successfully displayed our ability to help American small business owners in a time of real need,” Live Oak’s Chairman and CEO James “Chip” Mahan said in a news release. “We greatly exceeded our previous quarterly maximum for loan and lease origination at nearly $1 billion, excluding the work we accomplished for the Paycheck Protection Program.”
Live Oak Bank’s total deposits have grown 42% over the past year, increasing from just over $4 billion as of Sept. 30, 2019, to $5.7 billion a year later. But deposits decreased by $167.2 million quarter-over-quarter, “as excess deposits began to run off following the defensive strategy to build liquidity during the first quarter of 2020 due to the uncertainty of the effects of COVID-19,” the company stated in the release.
The company’s total assets increased 76% from the end of Q3 2019 to the end of Q3 2020, growing from $4.6 billion to nearly $8.1 billion. 
“Our core business has shown scale and efficiency thanks to previous investments in infrastructure and talent, and our position as a financial technology change leader was further validated with the increased valuations on several of our investments,” Mahan said in the release.
The financial institution’s stock price Thursday afternoon was $33.20, more than double the per-share price of about  $14 at the end of Q2 of this year.
Ico insights



SaaS 2021 – Space As A Service

Diane Durance - UNCW Center for Innovation and Entrepreneurship
Mikeharrington carolinaretreats 2

Vacation Rental Maintenance: What To Expect

Mike Harrington - Carolina Retreats
Danielhughes liveoakprivatewealth october 2

Trustee Tips: Estate Planning Basics

Daniel Hughes - Live Oak Private Wealth

Trending News

Wilmington Downtown Inc. Announces New CEO

Cece Nunn - Dec 3, 2020

In Downtown Wilmington, New Office Space Emerges Inside Historical Building

Cece Nunn - Dec 2, 2020

Commercial Space Changing To Residential In Leland Mixed-use Project

Cece Nunn - Dec 3, 2020

Tama Cafe Closing On Military Cutoff Road In Wilmington

Jessica Maurer - Dec 2, 2020

Homebuilders Contemplate The Future

Cece Nunn - Dec 3, 2020

In The Current Issue

Making History Work For The Future

Crews are working on making the former fellowship hall at Pearsall Memorial Presbyterian Church, 3902 Market St., into a new office for PBC...

Plantation Village Continues To Cope

Lessons have been learned and changes made at the retirement community of just over 300 residents, ranging in ages from 62 to 100 years old....

Area So Far Immune To Worker Shortage

Wilmington-area hospitals have not had any major worker shortages during the pandemic, officials said, unlike other parts of the country....

Book On Business

The 2020 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!



2020 Leadership Accelerator: Virtual Workshops for Real Leaders
2019 Health Care Heroes
August 26, 2019 Power Breakfast: A Healthy Sale?
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`