Live Oak Bancshares’ (NYSE: LOB) fourth quarter surpassed Wall Street’s expectations, according to results reported this week.

The digitally focused lender reported net income attributable to common shareholders of $44.1 million, or 95 cents per diluted share. That was 39 cents ahead of the Zacks Consensus Estimate of $0.56 per share.

For the year, net income attributable to common shareholders totaled $102.8 million, or $2.23 per diluted share.

Executives said in a Thursday morning conference call that, despite industry challenges, a lot went right in 2025, including execution.

“With adjusted PPNR of 27% (core profitability before loan loss provisions) over 2024, and adjusted earnings per share of 49%, those results are simply outstanding,” said BJ Losch III, president of Live Oak Bank. “Customer acquisition and growth like this doesn’t just happen by accident. Our people and how we deliver excellent customer service make the difference. Our goal is to continue this momentum and deliver earnings outcomes that are more consistent.”

In its related press release, Live Oak cited:

• loan production of $6.21 billion and deposit growth of $1.93 billion in 2025;
• $96.3 million in capital raised in a preferred stock offering in the third quarter;
• strong revenue and the pre-tax gain of $24.1 million from the sale of Apiture Inc.;
• and relatively flat provision expenses for credit losses compared to 2024.

“In just 24 months, our teams have made significant gains in winning customer checking relationships and serving more small business borrowers,” Losch said. “At the beginning of 2024, only roughly 6% of our customers had both a loan and deposit relationship with us. Today, that percentage is 22%. And we’ve got a lot more runway to travel.”

This, amid a “busy and potentially distracting backdrop” of Live Oak executing its first preferred offering and with outside ventures also posting gains, he added.

The bank’s marked improvement comes after two years in which lenders have struggled with higher default rates. “Live Oak’s performance has consistently been well ahead of peers,” Losch said. "Thankfully, we know small businesses and are great credit managers.”

Walter Phifer, chief financial officer, said the relative stability of the fourth quarter helped with 2025’s big finish.

“Stable environments work well for us,” Phifer said. “We’ve been making sure we’re doing our best to balance revenue and expense growth.”

The CFO said a core tenant of Live Oak’s loan growth has been not to sacrifice credit-worthiness in the process.

Looking ahead, Phifer pointed to business checking and Live Oak Express, the lender’s program for Small Business Administration loans under $350,000, as strategic opportunities in 2026.

Losch affirmed that with Live Oak Express “production is ramping up meaningfully and will continue to do so. These loans are also very desirable on the secondary market.”

As of 3 p.m. Thursday, Live Oak Bancshares' stock had climbed nearly 7% to $41.65 per share.