Live Oak Bancshares (LOB) Q4 2025 earnings summary

Executive summary

• Achieved record annual loan production of $6.21 billion in 2025, with loan growth of 17–20% year-over-year and a strong pipeline entering 2026.

• Q4 2025 net income reached $46 million, up 74% sequentially and 369% year-over-year, with diluted EPS of $0.95; full-year net income was $102.8 million ($2.23 per share), up 33%.

• Customer deposit growth was 18% year-over-year, with business checking balances doubling and total assets rising 16.9% to $15.13 billion.

• Significant operational improvements, including enhanced processes, controls, and customer service, and the launch of key initiatives such as Live Oak Express and business checking.

• Outperformed industry peers in credit quality, with lower default rates and stable credit trends.

Financial highlights

• Q4 2025 net income: $44–46 million; EPS: $0.95, both tripling year-over-year; full-year EPS: $2.23, up 32–33%.

• Adjusted PPNR for 2025 was $243 million, up 27% year-over-year; Q4 PPNR was $83.8–84 million, up 79% from Q3.

• Q4 2025 net interest income was $123 million, up 7% sequentially and 26% year-over-year; net interest margin improved to 3.38%.

• Q4 2025 noninterest income was $50 million, up 85% sequentially and 81% year-over-year, driven by investment gains.

• Tangible book value per share at year-end was $24.97, up 13% year-over-year.

Outlook and guidance

• Management expects continued strong loan and deposit growth, stable or low-rate environment, and moderating expense growth in 2026.

• Three Fed rate cuts assumed for 2026; less or later cuts could boost earnings.

• Gain on sale income in Q1 2026 projected to be similar to Q1 2025, with growth resuming in later quarters.

• Aspirational goals for business checking to reach 15% of deposit base and Live Oak Express to reach $1 billion annual production over time.