Live Oak Bancshares, Inc. · NYSE:LOB
Live Oak Bancshares — Q3 2026 Earnings Presentation
31 slides from Live Oak Bancshares's earnings presentation, Oct 22, 2026
Slide 1: Third Quarter 2026
THIRD QUARTER 2026 October 22, 2026 ©2026 Live Oak Bancshares. All rights reserved.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business a
Slide 3: Live Oak Bancshares Q3 GAAP Results
LIVE OAK BANCSHARES Q3 GAAP RESULTS 3 LIVE OAK BANCSHARES, INC. ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q3 2024 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 a Net Interest Income $ 97.0 $ 115.5 $ 123.1 $ 119.4 $ 125.3 $ 133.0 b Total Noninterest Income 32.9 26.8 49.8 26.1 30.8 42.6 a + b Total Revenue 129
Slide 4: Live Oak | Q3 2026 Highlights
LIVE OAK | Q3 2026 HIGHLIGHTS 4 THE QUARTER IN FIVE THEMES 01 Decisive action on distillery portfolio 02 Operating leverage momentum is outstanding 03 Small Business Banking model performing well 04 Live Oak Express and Business Checking scaling 05 AI activation accelerating ©2026 Live Oak Bancshare
Slide 5: Credit | What Drove Q3 Provision
CREDIT | WHAT DROVE Q3 PROVISION 5 Commercial Banking Small Business Banking Exited distillery portfolio Loan growth Portfolio Changes Portfolio Changes $17M $16M $13M $9M 31% of total 30% of total 24% of total 16% of total Stressed industry Record $700M+ loan 6 relationships across Diversified; no
Slide 6: Distillery Portfolio
6 DISTILLERY PORTFOLIO VERTICAL EXITED IN 2024 | ON-GOING WORKOUT ONLY WHAT HAPPENED WHAT WE HAVE DONE WHAT TO WATCH • Second straight year of declining • $29M of provision recognized YTD • Collateral realization vs. U.S. spirits demand (specific reserves and net charge-offs) current estimates • Bar
Slide 7: Generating Sustainable Operating Earnings
GENERATING SUSTAINABLE OPERATING EARNINGS 7 Live Oak Core Earnings Per Share Adjusted EPS1 $0.76 $0.77 Adjusted EPS, $0.70 $0.70 excluding $ in millions $0.65 distillery actions $0.49 $ in millions 1 % CHANGE % CHANGE Adjusted Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 LQ PYQ Revenue $149 $152 $151 $16
Slide 8: Operating Model Strength | Two-Year View
OPERATING MODEL STRENGTH | TWO-YEAR VIEW 8 SIGNIFICANTLY IMPROVED OPERATING LEVERAGE PROVIDES FLEXIBILITY Adjusted PPNR | Provision | Adjusted Pre-Tax Income Adjusted PPNR 1 (in millions) Provision Excluded distillery provision Adj. pre-tax income 1 +31% vs. +9% Adjusted revenue vs. expense growth1
Slide 9: Small Business Banking Performance
SMALL BUSINESS BANKING PERFORMANCE 9 #1 SBA LENDER BY DOLLAR AMOUNT, ~8% MARKET SHARE, DRIVING MOMENTUM ACROSS OUR SMALL BUSINESS PORTFOLIO CREDIT (SOUNDNESS) REVENUE (PROFITABILITY) 1 SBA APPROVALS, 2026 FISCAL YEAR (GROWTH)4 Trailing 12-month SBA default rates, % 2, 3 YTD (as of 9/30) total revenu
Slide 10: Key Initiative — Live Oak Express
KEY INITIATIVE — LIVE OAK EXPRESS 10 RECORD PRODUCTION | ORIGINATE TO SELL MODEL | FEE INCOME GENERATION, CAPITAL EFFICIENT Live Oak Express Originations ($ in millions) Originations Gain on Sale Self-funding, capital efficient engine $107 75%+ guaranteed portion sold, recycling liquidity +173% PYQ
Slide 11: Key Initiative — Business Checking
KEY INITIATIVE — BUSINESS CHECKING 11 LOW-COST CHECKING ACCOUNTS BUILDING DEEPER, MORE PROFITABLE RELATIONSHIPS Checking & Other DDA Balances ($ in millions) Other DDA Balances Checking Balances $508 ~160 bps lower funding cost +39% PYQ $469 compared to total Live Oak average cost of funds $409 $363
Slide 12: AI Accelerating Our Strategy, Not Defining It
12 AI ACCELERATING OUR STRATEGY, NOT DEFINING IT WHERE WE ARE TODAY OUR APPROACH HOW WE WIN 100% Direct Partnership 1 Executive-led Not delegated • Deep collaboration with Anthropic. employee access to AI-native tools Claude plus continued Copilot use org-wide 2 Accelerant, not strategy Business mod
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS ©2026 Live Oak Bancshares. All rights reserved.
Slide 14: Q3 2026 Key Headlines
Q3 2026 KEY HEADLINES 14 OPERATING PERFORMANCE REMAINS STRONG, ABSORBING ELEVATED PROVISION Adjusted PPNR1 Operating Leverage: Efficiency Ratio1 Compounding Revenue Outpacing Expenses1 Improving +33% +15% | +1% 49% YoY growth to a record $88M1 YoY adjusted revenue vs. expense growth1 Adjusted effici
Slide 15: Q3 2026 Earnings Results
Q3 2026 EARNINGS RESULTS 15 Q3 2026 CHANGE VS. REPORTED TO ADJUSTED EPS RECONCILIATION $ in millions Q3 2026 Q2 2026 Q3 2025 Line item Q3 2026 Q2 2026 Q3 2025 Net interest income $ 133 6% 15% Reported EPS $ 0.52 $ 0.74 $ 0.55 Noninterest income 43 38% 59% Total revenue 176 12% 23% Noninterest income
Slide 16: Strong, Diversified Loan Originations Continue
STRONG, DIVERSIFIED LOAN ORIGINATIONS CONTINUE 16 $2.1 BILLION OF LOAN ORIGINATIONS ACROSS 34 INDUSTRIES IN Q3 2026 Quarterly Production Trend Q3 2026 Production Mix by Lending Segment $ in millions $2,134 Other Commercial (6 Verticals) Solar Energy & Distributed Energy Finance Other Small Business
Slide 17: Strong, Consistent Balance Sheet Growth Trends Continue
STRONG, CONSISTENT BALANCE SHEET GROWTH TRENDS CONTINUE 17 Loan and Deposit Balance Trends ($ in billions) Total HFS and HFI Loans and Leases Total Deposits $15.5 $14.5 $13.7 $13.8 $13.9 $13.3 $13.1 $12.4 $12.6 $11.9 +16% vs. PYQ Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Loan Portfolio Key Stats: % Gu
Slide 18: Net Interest Margin and Net Interest Income Trends
NET INTEREST MARGIN AND NET INTEREST INCOME TRENDS 18 KEY HIGHLIGHTS: +15% PYQ $133 • Net Interest Income +15% PYQ • Net Interest Margin -3bps PYQ $125 $123 • Flat to rising interest environment provides a Net Interest Income $119 favorable backdrop for our NII/NIM profile $115 Net Interest Margin $
Slide 19: Loan Sales Continue to Provide Revenue, Liquidity, and Optionality
LOAN SALES CONTINUE TO PROVIDE REVENUE, LIQUIDITY, AND OPTIONALITY 19 Net Gain on Sale on Gty Loans and Average Premium Trends SBA Net Gain on Sale Live Oak Express Net Gain on Sale USDA Net Gain on Sale Total Average Gain on Sale Premium KEY HIGHLIGHTS: $19 $ in millions $1 $17 $17 • Gain on sale +
Slide 20: Efficiency Ratio Trends
EFFICIENCY RATIO TRENDS 20 Total Revenue Noninterest expense Efficiency Ratio1 $ in millions $173 $176 $156 23% | 3% $146 YoY revenue vs. expense growth $142 59% 59% 54% 52% 49% 1,000 bps YoY efficiency ratio1 improvement $89 $86 $84 $85 $85 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 ©2026 Live Oak Ban
Slide 21: Key Credit Trends
KEY CREDIT TRENDS 21 Unguaranteed ACL to Unguaranteed Loans and Leases Held for Investment (%)7 KEY HIGHLIGHTS: • Excluding distillery portfolio, non-accrual ratio 2.22% 2.19% 2.14% 2.06% of 0.99% and net charge-off ratio of 0.62% 2.01% • Small Business Banking credit trends ~consistent across the p
Slide 22: Unique Balance Sheet Composition and the Mahan Ratio
UNIQUE BALANCE SHEET COMPOSITION AND THE MAHAN RATIO 22 GOVERNMENT GUARANTEED LOAN MIX IS ~9X THE INDUSTRY:12 ~37% OF ASSETS ARE CASH OR GOVERNMENT GUARANTEED Total Assets $ in millions CAPITAL RATIOS Q3 2026 Common Equity Tier 1 Capital 9.9% $16,000 Tier 1 Capital 10.7% $14,000 Tier 1 Capital + ACL
Slide 23: Live Oak | Focus
23 LIVE OAK | FOCUS Continue Scale Live Oak Harness Organic growthAIis Soundness, delivering Express and toinaccelerate best class Profitability, significant Business Loanour strategy and deposit growth Growth built on a modern, unified operating Checking platform in that order leverage ©2026 Live O
Slide 24: ©2026 Live Oak Bancshares. All rights reserved.
24 ©2026 Live Oak Bancshares. All rights reserved.
Slide 25: Appendix
APPENDIX ©2026 Live Oak Bancshares. All rights reserved.
Slide 26: Appendix: Presentation Footnotes
APPENDIX: PRESENTATION FOOTNOTES 26 1. Non-GAAP financial measures. See Appendix for reconciliation of non-GAAP items to reported balances. 2. Source: Lumos Technologies, Inc., SBA 7(a) Program Data for trailing twelve months ending May 31. 3. Default is defined as 60 days past due or indication tha
Slide 27: Forward Looking Statements
FORWARD LOOKING STATEMENTS 27 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business
Slide 28: Appendix: Reconciliation
APPENDIX: RECONCILIATION 28 Reconciliation of non-GAAP items to reported balances ($ in millions) Q3 2024 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 a Net interest income, as reported $ 97.0 $ 115.5 $ 123.1 $ 119.4 $ 125.3 $ 133.0 b Total noninterest income, as reported 32.9 26.8 49.8 26.1 30.8 42.6 Fa
Slide 29: Appendix: Reconciliation
APPENDIX: RECONCILIATION 29 ($ in millions) Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Total shareholders' equity $ 1,202.5 $ 1,254.1 $ 1,281.8 $ 1,316.9 $ 1,312.2 Less: Preferred stock 96.3 96.3 96.3 96.3 96.3 Non-controlling interest 4.3 4.2 4.1 4.1 4.0 Total common shareholders' equity 1,102.0 1,153
Slide 30: Appendix: Reconciliation
APPENDIX: RECONCILIATION 30 Nine months ended September 30, ($ in millions) 2022 2023 2024 2025 2026 Net interest income, as reported $ 241.6 $ 255.7 $ 278.4 $ 325.3 $ 377.7 Less: Commercial 56.2 87.1 111.6 121.4 128.0 Other 20.5 (16.0) (29.8) 1.5 39.6 a SBB net interest income 164.9 184.6 196.6 202
Slide 31: Appendix: Current and Past Production Driving Loan Growth
APPENDIX: CURRENT AND PAST PRODUCTION DRIVING LOAN GROWTH 31 6% PERIOD-END LOAN GROWTH LQ; 10% TOTAL NET GROWTH LQ BEFORE LOAN SALES Period End ($ in millions) Increase Decrease $1,117 Total $776 $(634) $13,870 $(359) $(173) $13,143 Q2 2026 Full Funded Other Loan Prepayment Guaranteed Unguaranteed L