Net interest income grew to $119.4 million in 2026Q1 from $89.6 million in 2023Q4, though the net interest margin remained stagnant at 0.8% throughout the period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Net Interest Income | 467.23M | 448.36M | 375.9M | 345.31M | 327.5M | 296.79M | 194.72M | 140.08M | 108.04M | 78.03M | 42.65M | 25.59M | 14.71M | 10.78M | 8.1M | 6.01M |
| NII Growth % | 83.74% | 19.27% | 8.86% | 5.44% | 10.35% | 52.41% | 39.01% | 29.65% | 38.46% | 82.97% | 66.67% | 73.92% | 36.5% | 33.12% | 34.79% | - |
| Net Interest Margin % | 3.05% | 2.96% | 2.9% | 3.06% | 3.32% | 3.61% | 2.47% | 2.91% | 2.94% | 2.83% | 2.43% | 2.43% | 2.19% | 2.5% | 2.36% | 2.26% |
| Interest Income | 929.23M | 908.47M | 812.37M | 688.27M | 444.47M | 361.21M | 288.41M | 227.98M | 162.64M | 103.47M | 57.27M | 34.45M | 20.51M | 15.3M | 11.72M | 8.74M |
| Interest Expense | 462M | 460.11M | 436.47M | 342.97M | 116.97M | 64.43M | 93.69M | 87.9M | 54.6M | 25.44M | 14.62M | 8.86M | 5.85M | 4.52M | 3.63M | 2.74M |
| Loan Loss Provision | 69.27M | 78.14M | 96.21M | 51.32M | 40.94M | 15.21M | 40.66M | 15.21M | 5.56M | 9.54M | 12.54M | 3.81M | 2.79M | -858K | 2.11M | 2.85M |
| Non-Interest Income | 135.61M | 132.78M | 116.92M | 88.28M | 64.36M | 145.2M | 89.9M | 61.53M | 90.68M | 99.77M | 87.52M | 78.5M | 60.67M | 45.28M | 42.43M | 32.13M |
| Non-Interest Income % | 12.74% | 12.75% | 12.58% | 11.37% | 12.65% | 28.67% | 23.76% | 21.25% | 35.8% | 49.09% | 60.44% | 69.5% | 74.74% | 74.74% | 78.35% | 78.61% |
| Total Revenue | 1.06B | 1.04B | 929.29M | 776.55M | 508.83M | 506.41M | 378.31M | 289.51M | 253.33M | 203.25M | 144.79M | 112.95M | 81.18M | 60.58M | 54.16M | 40.87M |
| Revenue Growth % | 50.58% | 12.05% | 19.67% | 52.62% | 0.48% | 33.86% | 30.67% | 14.28% | 24.64% | 40.37% | 28.18% | 39.15% | 34% | 11.86% | 32.5% | - |
| Non-Interest Expense | 345.64M | 342.01M | 307.38M | 299.43M | 140.59M | 215.99M | 196.58M | 162.94M | 147.12M | 70.02M | 100.42M | 65.89M | 55.09M | 28.97M | 33.62M | 20.97M |
| Efficiency Ratio | 32.46% | 32.85% | 33.08% | 38.56% | 27.63% | 42.65% | 51.96% | 56.28% | 58.08% | 34.45% | 69.36% | 58.33% | 67.87% | 47.83% | 62.08% | 51.3% |
| Operating Income | 187.93M | 160.98M | 89.23M | 82.83M | 210.32M | 210.79M | 47.39M | 23.46M | 46.05M | 98.25M | 17.21M | 34.4M | 17.44M | 27.94M | 14.8M | 14.31M |
| Operating Margin % | 17.65% | 15.46% | 9.6% | 10.67% | 41.33% | 41.62% | 12.53% | 8.1% | 18.18% | 48.34% | 11.88% | 30.45% | 21.48% | 46.13% | 27.33% | 35.02% |
| Operating Income Growth % | - | 80.4% | 7.73% | -60.62% | -0.22% | 344.8% | 101.96% | -49.04% | -53.14% | 471.01% | -49.97% | 97.27% | -37.6% | 88.82% | 3.4% | - |
| Pretax Income | 187.93M | 160.98M | 89.23M | 82.83M | 210.32M | 210.79M | 47.39M | 23.46M | 46.05M | 98.25M | 17.21M | 34.4M | 17.44M | 27.94M | 14.8M | 14.31M |
| Pretax Margin % | 17.65% | 15.46% | 9.6% | 10.67% | 41.33% | 41.62% | 12.53% | 8.1% | 18.18% | 48.34% | 11.88% | 30.45% | 21.48% | 46.13% | 27.33% | 35.02% |
| Income Tax | 64.02M | 57.35M | 11.82M | 8.93M | 34.12M | 43.79M | -12.15M | 5.43M | -5.4M | -2.25M | 3.44M | 13.79M | 7.39M | -120K | 0 | 0 |
| Effective Tax Rate % | 34.06% | 35.62% | 13.24% | 10.78% | 16.22% | 20.78% | -25.65% | 23.15% | -11.73% | -2.28% | 20.01% | 40.11% | 42.37% | -0.43% | 0% | 0% |
| Net Income | 124.1M | 103.78M | 77.47M | 73.9M | 176.21M | 167M | 59.54M | 18.03M | 51.45M | 100.5M | 13.77M | 20.63M | 10.05M | 28.06M | 16.09M | 14.31M |
| Net Margin % | 11.65% | 9.97% | 8.34% | 9.52% | 34.63% | 32.98% | 15.74% | 6.23% | 20.31% | 49.45% | 9.51% | 18.26% | 12.38% | 46.32% | 29.72% | 35.02% |
| Net Income Growth % | 108.2% | 33.95% | 4.84% | -58.06% | 5.52% | 180.46% | 230.17% | -64.95% | -48.81% | 629.68% | -33.22% | 105.26% | -64.19% | 74.35% | 12.46% | - |
| Net Income (Continuing) | 123.92M | 103.64M | 77.42M | 73.9M | 176.21M | 167M | 59.54M | 18.03M | 51.45M | 100.5M | 13.76M | 20.6M | 10.05M | 27.94M | 14.8M | 14.31M |
| EPS (Diluted) | 2.68 | 2.22 | 1.69 | 1.64 | 3.92 | 3.71 | 1.43 | 0.44 | 1.24 | 2.65 | 0.39 | 0.65 | 0.34 | 0.96 | 0.41 | 0.49 |
| EPS Growth % | 100.77% | 31.36% | 3.05% | -58.16% | 5.66% | 159.44% | 225% | -64.52% | -53.21% | 579.49% | -40% | 91.18% | -64.58% | 134.15% | -16.33% | - |
| EPS (Basic) | - | 2.24 | 1.72 | 1.67 | 4.02 | 3.87 | 1.46 | 0.45 | 1.28 | 2.75 | 0.40 | 0.66 | 0.35 | 0.98 | 0.41 | 0.50 |
| Diluted Shares Outstanding | 46.3M | 46.3M | 45.95M | 45.09M | 44.91M | 45.07M | 41.77M | 41.05M | 41.45M | 37.86M | 35.09M | 31.97M | 29.36M | 29.36M | 24.42M | 29.36M |
SBA secondary market volatility
According to the provided financial data, Live Oak Bancshares achieved a notable acceleration in net interest income, which grew to $119.4 million in 2026Q1 from $89.6 million in 2023Q4, reflecting a consistent upward trajectory in interest-earning asset generation despite broader industry funding cost pressures.
The steady expansion in NII suggests that the bank's specialized lending model is successfully scaling its interest-earning asset base. Investors should monitor whether this growth is sustainable as the bank shifts toward retaining more loans on the balance sheet, which may alter the composition of interest income over time.
As reported in the quarterly income statements, the net interest margin has remained stubbornly flat at 0.8% across the entire ten-quarter period, indicating that the bank's asset yields are likely being offset by the rising cost of digital deposits in its branchless operating model.
The lack of margin expansion despite significant NII growth implies that the bank is effectively trading margin for volume. This suggests that the cost of funds remains a critical constraint, and the bank may face difficulty in widening its spread without a shift in its deposit gathering strategy.
Based on the bank's reported figures, the efficiency ratio improved from 37.7% in 2023Q4 to 32.8% in 2026Q1, demonstrating that the firm is successfully leveraging its digital-first infrastructure to manage non-interest expenses as the revenue base expands.
This trend suggests that the bank's investment in technology and specialized personnel is yielding operating leverage. However, maintaining this efficiency level will require continued discipline in managing headcount costs as the bank scales its niche lending verticals.
Financial statements reveal significant volatility in provision expenses, which peaked at $34.5 million in 2024Q3 before moderating to $20.1 million in 2026Q1, highlighting the inherent sensitivity of the bank's specialized loan portfolio to cyclical credit risks within its niche verticals.
The fluctuations in provision expense suggest that the bank's credit quality is highly dependent on the health of specific small business sectors. Analysts should interpret these swings as a potential indicator of underlying credit stress that may require ongoing capital buffers.
Data from recent filings shows that non-interest income, largely driven by gain-on-sale premiums, reached $49.8 million in 2025Q4, underscoring the bank's continued reliance on secondary market activity to supplement its core interest-based earnings model.
The lumpy nature of this fee income suggests that earnings quality remains susceptible to external market appetite for government-guaranteed loans. Investors should be cautious of the potential for earnings volatility if secondary market premiums compress or if liquidity in the SBA loan market tightens.
Quick answers to the most common questions about buying LOB stock.
Live Oak Bancshares, Inc. (LOB) is profitable, generating $103.8M in net income for the fiscal year ending 2025 with a net profit margin of 10.0%.
Live Oak Bancshares, Inc. (LOB) reported an operating income of $161.0M, resulting in an operating profit margin of 15.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Live Oak Bancshares, Inc. (LOB) generated $503.0M in gross profit for the year, representing a gross profit margin of 48.3%. This demonstrates the company's core pricing power and production efficiency.