Live Oak Bancshares Inc (NYSE:LOB)
$ 26.59 +0.18 (+0.68%) Market Cap: 1.21 Bil Enterprise Value: 582.38 Mil PE Ratio: 20.45 PB Ratio: 1.18 GF Score: 78/100
Back to the Transcripts List

Q4 2024 Live Oak Bancshares Inc Earnings Call Transcript

Jan 23, 2025 / 02:00PM GMT
Release Date Price: $35.07 (-13.96%)

Key Points

Positve
  • Live Oak Bancshares Inc (LOB) reported strong PPNR growth on both a reported and adjusted basis, showcasing excellent loan and deposit growth.
  • The company achieved record loan production in 2024, with pipelines steadily increasing, supporting optimistic outlook for 2025.
  • Live Oak Bancshares Inc (LOB) has a significant portion of its loan portfolio (34%) government guaranteed, providing credit quality and capital advantages.
  • The company is experiencing strong growth in checking account balances, which increased 46% quarter over quarter, indicating successful customer relationship expansion.
  • Live Oak Bancshares Inc (LOB) is leveraging AI technology to streamline processes, enhancing efficiency and focusing on customer success.
Negative
  • The company faced elevated provision expenses in the second half of 2024, primarily related to loans within the SBA portfolio.
  • There was a notable increase in default activity in the latter part of the fourth quarter, leading to impairments and charge-offs.
  • Net interest margin experienced compression due to rate cuts, impacting the company's financial performance.
  • The competitive deposit market poses challenges, with cautious repricing affecting the company's funding strategy.
  • Nonaccrual levels in Q4 caused a drag on interest income, compressing the margin by 11 basis points.
Operator

Good morning, ladies and gentlemen, and welcome to the Q4 2024 Live Oak Bancshares earnings call. at this time. (Operator Instructions)

This call is being recorded on Thursday, January 23, 2025. I would now like to turn the conference over to Claire Parker, Head of Investor Relations. Please go ahead.

Claire Parker
Live Oak Bancshares Inc - Head of Investor Relations

Thank you, and good morning, everyone. Welcome to Live Oak's fourth-quarter 2024 earnings conference call. We are webcasting live over the internet and this call is being recorded. To access the call over the internet and review the presentation materials that we will reference in the call, please visit our website at investor.liveoakbank.com and go to the events and presentations tab for supporting materials. Our fourth-quarter earnings release is also available on our website.

Before we get started, I would like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual results to

Already have an account? Log in
Get the full story
Start 7-Day Free Trial
Access to All Earning Calls and Stock Analysis
30-Year Financial on one screen
All-in-one Stock Screener with unlimited filters
Customizable Stock Dashboard
Real Time Insider Trading Transactions
8,000+ Institutional investors’ 13F holdings
Powerful Excel Add-in and Google sheets Add-on
All data downloadable
Quick customer support
And much more...
30-Day 100% money back guarantee
You are not charged until the trial ends. Subscription fee may be tax deductible.
Excellent
4.6 out of 5 Trustpilot
Research Tools
All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board
Product
Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App 中文
Education
Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation
Company
About GuruFocus Career Contact Us Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program
Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey
Follow Us
download GuruFocus on Apple store download GuruFocus on Google Play
Disclaimers
GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.
© 2004-2025 GuruFocus.com, LLC. All Rights Reserved.