Banking & Finance

Live Oak Reports Positive Earnings For The Recent Quarter

By Jenny Callison, posted Nov 3, 2022
Live Oak Bank Chairman and CEO James "Chip" Mahan announces a campus and workforce expansion in September. (File photo)
Wilmington-based Live Oak Bancshares released an upbeat quarterly earnings report last week, with results that beat analysts’ expectations.

“LOB came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.45 per share,” Zacks Equity Research reported Oct. 26. “This compares to earnings of $0.76 per share a year ago.”

The parent of Live Oak Bank announced total revenues of $141.6 million for its third quarter, which ended Sept. 30, and diluted earnings per share of $0.96. Revenues were up substantially from $103 million reported for Q3 of 2021, but down from those of the second quarter of 2022 when the company reported total revenues of almost $208.5 million.

A factor in the earnings was Live Oak Ventures’ exit in September from its investment in Payrailz LLC, a digital payments platform. The financial technology company was recently acquired by Jack Henry & Associates Inc., and Live Oak anticipates an estimated pre-tax gain of about $28 million, subject to final adjustments.

One reason for the decrease in revenues was a jump in provisioning expenses: money set aside as a hedge against bad debts or other expected liabilities.

Otherwise, the quarter’s results were strong: total loan and lease origination of just over $1 billion, up 5% compared to the previous quarter. The company now has nearly $7.4 billion worth of loans and leases (excluding PPP loans), an increase of 4.7% since the end of Q2 and 14.4% more than at the end of Q3 of 2021.

Total deposits increased to $8.4 billion at the end of Q3, an increase of $249.2 million compared with those at the end of Q2, and an increase of almost $1.6 billion over those of Q3 2021.

“The increase in total deposits from the prior periods provides support for the growth in the loan and lease portfolio,” the report stated.

Live Oak’s total assets at the end of the most recent quarter were about $9.3 billion, up from those of both the previous quarter ($9.1 billion) and the third quarter of 2021 ($8.1 billion).

“Live Oak remains steadfastly dedicated to serving small business customers across our country with vital capital to create jobs, boost local economies and achieve more,” Live Oak Bancshares’ Chairman and CEO James "Chip" Mahan said in the company’s earnings release. “Once again this quarter, we recognized capital gains from a [financial technology] investment, giving Live Oak more dry powder to further its mission to be America’s small business bank.”

In September, Live Oak Bank officials said they plan to add more than 200 jobs over the next five years and invest $25 million in expanding their midtown Wilmington campus. If they meet their targets, the bank stands to gain state and local incentives.
Ico insights


Mikeharrington carolinaretreats 2

Fall Vacation Rentals and Rising Cost of Real Estate

Mike Harrington - Carolina Retreats
Dave sweyer 300 x 300

12 Tax Deductions Available to Rental Property Investors

Dave Sweyer - Sweyer Property Management
Katiebraskett web

September 2022 Freight Market Update

Katie Braskett - MegaCorp Logistics

Trending News

Investors Pay $5M For Former N2 Publishing Facility On New Centre Drive

Staff Reports - Feb 3, 2023

For Nearly $4M, Investment Firm Sells Brunswick County Home Sites

Staff Reports - Feb 3, 2023

Season’s Change At Julia’s Florist

Johanna F. Still - Feb 3, 2023

When The Government Becomes A Landlord

Johanna F. Still - Feb 3, 2023

Funding The Fight: Local Governments Put Opioid Settlement Dollars To Use

Neil Cotiaux - Feb 3, 2023

In The Current Issue

When The Government Becomes A Landlord

Should a complicated deal come to fruition, the city of Wilmington could become a landlord over office space in the city’s tallest building....

Tech Streamlines Mortgage Industry

Like every other aspect of banking, mortgage lending continues to change as technology streamlines processes and gives would-be borrowers ac...

Season’s Change At Julia’s Florist

Longtime Julia’s Florist owner Dana Cook has given her most loyal employees their well-deserved flowers. On Dec. 22, Cook handed the city’s...

Book On Business

The 2023 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!



2022 Power Breakfast: Wilmington's Most Intriguing People - Spence Broadhurst & Hannah Gage
2022 Power Breakfast: Wilmington's Most Intriguing People - George Taylor
2022 Power Breakfast: Wilmington's Most Intriguing People - Mike Ford
2022 Power Breakfast: Wilmington's Most Intriguing People - Meaghan Dennison
2022 Power Breakfast: Wilmington's Most Intriguing People - Rhonda Bellamy