Wilmington-based Live Oak Bancshares reported positive first-quarter earnings that beat analyst expectations this week, even as revenue declined from the previous quarter. 

The company posted a net income of $29.9 million, with diluted earnings per share of $0.60, above Zacks Equity Research analysts' estimate of $0.54. Revenue decreased 15.9% from the previous quarter, though it was up 18% compared to the first quarter of 2025. 

Live Oak reported strong loan production of $1.37 billion and deposit growth of $146.4 million during the first quarter. 

"We are pleased with the momentum we've carried into 2026. Our first quarter results reflect the strength of our differentiated model and our commitment to serving America's small business owners," said Live Oak CEO and Chairman Chip Mahan in a press release.

During the first-quarter earnings call Thursday morning, officials pointed to solid core lending performance and stable-to-improving credit trends. Executives said that Live Oak's credit trends are outperforming industry default rates with an annualized SBA net charge-off ratio of 0.3%, compared to 1.1% in the broader SBA industry. 

Live Oak also demonstrated loan growth of 2% over the quarter and 14% year-over-year, with an outstanding loan balance of approximately $12.6 billion. 

BJ Losch, president of Live Oak Bank, said during the earnings call that the company is well on its way to reaching its long-term goal of 15% return on equity and 15% earnings-per-share growth. 

"Our credit quality is getting better. Our key initiatives are accelerating. Our lending engine continues to be one of the strongest in the industry," said Losch during the call. 

Officials also highlighted the company's adoption of AI, describing a "bottom-up" approach that encourages employees to build AI tools to improve workflows. The bank's long-term vision is to ultimately become an "AI-native" bank, Losch said. 

"We are going to have everything that we can possibly put on an AI platform," said Losch during the earnings call. "Our end goal is not just to be AI‑native. Our end goal is to make it better for the customer and create a customer experience using AI partnered with our people that nobody else can match." 

Live Oak Bank launched a pilot of an AI-native loan origination platform in the first quarter, Losch said. 

"Once that is fully rolled out, it is going to make it simpler, easier, faster and more efficient for our people to serve our customers and for our customers to get the capital that they need," he added. 

Live Oak Express, the bank's fast-tracked SBA lending platform for loans under $350,000, launched in early 2024 and also contributed to quarterly gains. The bank reported an overall $140 million in loans sold through Live Oak Express, with $56 million sold in the first quarter. 

Chief Credit Officer Michael Cairns addressed economic headwinds, such as rapidly rising interest rates, during the call, saying the company has moved past the interest-rate risk that previously affected the credit cycle.

"We underwrite to higher debt service coverage covenants and build in that cushion because we know inflationary events will happen," Cairns said. "That is a big part of what our underwriting and credit team do. I am watching it closely, we are talking about it a lot, but I feel pretty good about where we sit now."

In a press release about first-quarter earnings, Live Oak partially attributed the decrease in revenue and pre-provision net revenue to the $24.1 million pre-tax gain from the sale of Apiture in 2025 and a $9 million gain arising from the sale of a portfolio investment in the fourth quarter of 2025.

"I just feel like we're about to hit our stride, and our plans that we put in place over two years ago to make that happen are starting to happen," said Losch. "I think Live Oak is better positioned than we have been in years to generate top‑tier returns.

As of Thursday afternoon, Live Oak Bancshares' (LOB) stock was trading on the New York Stock Exchange at $36.68 per share, up slightly from $36.58 at Thursday's open.