Live Oak Bancshares, Inc. (LOB)

Live Oak Bancshares' stock has been impacted by several events in the past six months. The company's Q3 2025 earnings showed revenue meeting expectations and net interest income beating estimates, but GAAP profit per share and efficiency ratio were below consensus. LOB shares generally followed the market's trajectory, with reports indicating gains of 18.2% to $35.23 and 10.1% to $34.35. CEO James S. Mahan III disposed of 10,000 shares in December 2025. A securities fraud investigation was announced on November 12, 2025, due to cash flow classification errors, leading to a stock price drop. The company experienced a substantial increase in the provision for credit losses in Q3 2024, contributing to a 67% decrease in Q3 profits, and faced challenges with a high level of bad loans and rising net charge-offs.

Live Oak Bancshares specializes in small business lending, particularly through government-guaranteed programs like SBA and USDA loans. The demand for its products and services is likely influenced by broader economic conditions, small business growth cycles, and the availability and attractiveness of government lending programs. Demand for deposit products may also fluctuate based on prevailing interest rates and market competition.

Live Oak Bancshares, Inc. (LOB) is a bank holding company that operates through Live Oak Banking Company, specializing in online banking services and SBA-guaranteed loans to small businesses across various industries. It offers financial products and services for small and medium-sized enterprises, including commercial and industrial loans, SBA loans, equipment financing, commercial real estate loans, and industry-specific lending programs. Live Oak Bank also provides deposit products and treasury management services, along with strategic investments in financial technology companies through its Fintech segment, including Live Oak Private Wealth.

Live Oak Bancshares operates as a digital, cloud-based bank, serving small business owners in all 50 states across the United States. It functions as a branchless bank, with its main headquarters located in Wilmington, North Carolina, and satellite offices in Dallas, Raleigh, Charlotte, and California.

Live Oak Bancshares generally maintains a positive brand reputation, particularly for its customer service and competitive offerings, holding a rating of 4.5 out of 5 stars on Trustpilot and an A- review from the Better Business Bureau. However, the company's reputation was potentially impacted by a securities fraud investigation announced in November 2025, stemming from the need to amend its 2024 Annual Report and Q1 and Q2 2025 filings due to cash flow classification errors.

Live Oak Bancshares has a significant portion of its stock held by institutional investors, approximately 63.95% to 66.52%. Major institutional owners include T. Rowe Price Investment Management, Inc., BlackRock, Inc., Vanguard Group Inc., State Street Corp., Barrow Hanley Mewhinney & Strauss Llc., Dimensional Fund Advisors Lp., and Southernsun Asset Management, Llc. Key individual owners, including CEO James S. Mahan III, Neil Lawrence Underwood, and William L. Williams III, hold a substantial percentage of the company's stock, around 23.40% to 54.21%.