Live Oak Bancshares, Inc. Reports Fourth Quarter 2024 Results

Источник: Nasdaq GlobeNewswire / 22 янв 2025 15:30:01 America/Chicago

WILMINGTON, N.C., Jan. 22, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported fourth quarter of 2024 net income attributable to the Company of $9.9 million, or $0.22 per diluted share. Net income attributable to the Company for the year ended December 31, 2024, totaled $77.5 million, or $1.69 per diluted share.

Live Oak’s performance in 2024, includes these notable items:

Record year of $5.16 billion of loan production accompanied by strong deposit growth of $1.49 billion, total assets grew by 14.8% to $12.94 billion
9% growth in revenue and 3% reduction in noninterest expenses generated 38% growth in pre-provision net revenue¹
Increased provision expense for credit losses of $44.9 million, or 87.5%, driven by record loan growth combined with the impacts of the current macroeconomic environment
Two key initiatives saw positive momentum — non-interest bearing deposit growth and small dollar loan production

“Live Oak Bank’s fourth quarter performance demonstrates our continued trajectory to grow the company in service of America’s small business owners,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “This year, we expanded loan and deposit products in meaningful ways, stayed close to our borrowers through challenges, and leveraged our greatest asset, our employees, to produce strong results across the year.”

Conference Call

Live Oak will host a conference call to discuss the company's financial results and business outlook tomorrow, January 23, 2025, at 9:00 a.m. ET.

The call will be accessible by telephone and webcast using Conference ID: 33467. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

Live Telephone Dial-In

U.S.: 800.549.8228
International: +1 289.819.1520
Pass Code: None Required

Live Webcast Log-In

Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration

(1) See accompanying GAAP to Non-GAAP Reconciliation.

Year Over Year Highlights

(Dollars in thousands, except per share data)							Increase (Decrease)
		2024			2023		Dollars			Percent
Total revenue ⁽¹⁾	$	499,686		$	457,038		$	42,648		9	%
Total noninterest expense		314,239			322,885			(8,646	)	(3	)
Income before taxes		89,235			82,830			6,405		8
Effective tax rate		13.2	%		10.8	%		n/a		n/a
Net income attributable to Live Oak Bancshares, Inc.	$	77,474		$	73,898		$	3,576		5	%
Diluted earnings per share		1.69			1.64			0.05		3
Loan and lease production:
Loans and leases originated	$	5,155,244		$	3,946,873		$	1,208,371		31	%
% Fully funded		44.2	%		55.1	%		n/a		n/a
Total loans and leases:	$	10,579,376		$	9,020,884		$	1,558,492		17	%
Total assets:		12,943,380			11,271,423			1,671,957		15
Total deposits:		11,760,494			10,275,019			1,485,475		14

(1) Total revenue consists of net interest income and total noninterest income.

Fourth Quarter 2024 Key Measures

(Dollars in thousands, except per share data)							Increase (Decrease)
	4Q 2024			3Q 2024			Dollars			Percent		4Q 2023
Total revenue ⁽¹⁾	$	128,067		$	129,932		$	(1,865	)	(1	)%	$	119,683
Total noninterest expense		81,257			77,589			3,668		5			93,204
Income before taxes		13,229			17,841			(4,612	)	(26	)		17,484
Effective tax rate		25.6	%		27.0	%		n/a		n/a			7.6	%
Net income attributable to Live Oak Bancshares, Inc.	$	9,900		$	13,025		$	(3,125	)	(24	)%	$	16,163
Diluted earnings per share		0.22			0.28			(0.06	)	(21	)		0.36
Loan and lease production:
Loans and leases originated	$	1,421,118		$	1,757,856		$	(336,738	)	(19	)%	$	981,703
% Fully funded		42.4	%		42.4	%	n/a			n/a			49.0	%

(1) Total revenue consists of net interest income and total noninterest income.

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of global health crises and pandemics, such as the Coronavirus Disease 2019 (COVID-19) pandemic, on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third party service providers; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoakbank.com.

Contacts:


Live Oak Bancshares, Inc. Quarterly Statements of Income (unaudited) (Dollars in thousands, except per share data)

	Three Months Ended															4Q 2024 Change vs.
	4Q 2024			3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2024		4Q 2023
Interest income																%		%
Loans and fees on loans	$	194,821		$	192,170		$	181,840		$	176,010		$	169,531		1.4		14.9
Investment securities, taxable		10,490			9,750			9,219			8,954			8,746		7.6		19.9
Other interest earning assets		7,257			7,016			7,389			7,456			8,259		3.4		(12.1	)
Total interest income		212,568			208,936			198,448			192,420			186,536		1.7		14.0
Interest expense
Deposits		113,357			110,174			105,358			101,998			96,695		2.9		17.2
Borrowings		1,737			1,762			1,770			311			265		(1.4	)	555.5
Total interest expense		115,094			111,936			107,128			102,309			96,960		2.8		18.7
Net interest income		97,474			97,000			91,320			90,111			89,576		0.5		8.8
Provision for credit losses		33,581			34,502			11,765			16,364			8,995		(2.7	)	273.3
Net interest income after provision for credit losses		63,893			62,498			79,555			73,747			80,581		2.2		(20.7	)
Noninterest income
Loan servicing revenue		8,524			8,040			7,347			7,624			7,342		6.0		16.1
Loan servicing asset revaluation		(2,326	)		(4,207	)		(2,878	)		(2,744	)		(3,974	)	44.7		41.5
Net gains on sales of loans		18,356			16,646			14,395			11,502			12,891		10.3		42.4
Net gain (loss) on loans accounted for under the fair value option		195			2,255			172			(219	)		(170	)	(91.4	)	214.7
Equity method investments (loss) income		(2,739	)		(1,393	)		(1,767	)		(5,022	)		47		(96.6	)	(5,927.7	)
Equity security investments gains (losses), net		12			909			161			(529	)		(384	)	(98.7	)	103.1
Lease income		2,456			2,424			2,423			2,453			2,439		1.3		0.7
Management fee income		—			1,116			3,271			3,271			3,309		(100.0	)	(100.0	)
Other noninterest income		6,115			7,142			11,035			9,761			8,607		(14.4	)	(29.0	)
Total noninterest income		30,593			32,932			34,159			26,097			30,107		(7.1	)	1.6
Noninterest expense
Salaries and employee benefits		45,214			44,524			46,255			47,275			44,274		1.5		2.1
Travel expense		2,628			2,344			2,328			2,438			1,544		12.1		70.2
Professional services expense		2,797			3,287			3,061			1,878			3,052		(14.9	)	(8.4	)
Advertising and marketing expense		1,979			2,473			3,004			3,692			2,501		(20.0	)	(20.9	)
Occupancy expense		2,558			2,807			2,388			2,247			2,231		(8.9	)	14.7
Technology expense		9,406			9,081			7,996			7,723			8,402		3.6		11.9
Equipment expense		3,769			3,472			3,511			3,074			3,480		8.6		8.3
Other loan origination and maintenance expense		4,812			4,872			3,659			3,911			3,937		(1.2	)	22.2
Renewable energy tax credit investment impairment (recovery)		1,172			115			170			(927	)		14,575		919.1		(92.0	)
FDIC insurance		3,053			1,933			2,649			3,200			4,091		57.9		(25.4	)
Other expense		3,869			2,681			2,635			3,226			5,117		44.3		(24.4	)
Total noninterest expense		81,257			77,589			77,656			77,737			93,204		4.7		(12.8	)
Income before taxes		13,229			17,841			36,058			22,107			17,484		(25.9	)	(24.3	)
Income tax expense (benefit)		3,386			4,816			9,095			(5,479	)		1,321		(29.7	)	156.3
Net income		9,843			13,025			26,963			27,586			16,163		(24.4	)	(39.1	)
Net loss attributable to non-controlling interest		57			—			—			—			—		100.0		100.0
Net income attributable to Live Oak Bancshares, Inc.	$	9,900		$	13,025		$	26,963		$	27,586		$	16,163		(24.0	)	(38.7	)
Earnings per share
Basic	$	0.22		$	0.28		$	0.60		$	0.62		$	0.36		(21.4	)	(38.9	)
Diluted	$	0.22		$	0.28		$	0.59		$	0.60		$	0.36		(21.4	)	(38.9	)
Weighted average shares outstanding
Basic		45,224,470			45,073,482			44,974,942			44,762,308			44,516,646
Diluted		46,157,979			45,953,947			45,525,082			45,641,210			45,306,506


Live Oak Bancshares, Inc. Quarterly Balance Sheets (unaudited) (Dollars in thousands)

	As of the quarter ended															4Q 2024 Change vs.
	4Q 2024			3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2024		4Q 2023
Assets																%		%
Cash and due from banks	$	608,800		$	666,585		$	615,449		$	597,394		$	582,540		(8.7	)	4.5
Certificates of deposit with other banks		250			250			250			250			250		—		—
Investment securities available-for-sale		1,248,203			1,233,466			1,151,195			1,120,622			1,126,160		1.2		10.8
Loans held for sale		346,002			359,977			363,632			310,749			387,037		(3.9	)	(10.6	)
Loans and leases held for investment ⁽¹⁾		10,233,374			9,831,891			9,172,134			8,912,561			8,633,847		4.1		18.5
Allowance for credit losses on loans and leases		(167,516	)		(168,737	)		(137,867	)		(139,041	)		(125,840	)	(0.7	)	33.1
Net loans and leases		10,065,858			9,663,154			9,034,267			8,773,520			8,508,007		4.2		18.3
Premises and equipment, net		264,059			267,032			267,864			258,071			257,881		(1.1	)	2.4
Foreclosed assets		1,944			8,015			8,015			8,561			6,481		(75.7	)	(70.0	)
Servicing assets		56,144			52,553			51,528			49,343			48,591		6.8		15.5
Other assets		352,120			356,314			376,370			387,059			354,476		(1.2	)	(0.7	)
Total assets	$	12,943,380		$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		2.7		14.8
Liabilities and Shareholders’ Equity
*Liabilities*
Deposits:
Noninterest-bearing	$	318,890		$	258,844		$	264,013		$	226,668		$	259,270		23.2		23.0
Interest-bearing		11,441,604			11,141,703			10,443,018			10,156,693			10,015,749		2.7		14.2
Total deposits		11,760,494			11,400,547			10,707,031			10,383,361			10,275,019		3.2		14.5
Borrowings		112,820			115,371			117,745			120,242			23,354		(2.2	)	383.1
Other liabilities		66,570			83,672			82,745			74,248			70,384		(20.4	)	(5.4	)
Total liabilities		11,939,884			11,599,590			10,907,521			10,577,851			10,368,757		2.9		15.2
*Shareholders’ equity*
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—			—			—			—		—		—
Class A common stock (voting)		365,607			361,925			356,381			349,648			344,568		1.0		6.1
Class B common stock (non-voting)		—			—			—			—			—		—		—
Retained earnings		715,767			707,026			695,172			669,307			642,817		1.2		11.3
Accumulated other comprehensive loss		(82,344	)		(61,195	)		(90,504	)		(91,237	)		(84,719	)	34.6		(2.8	)
Total shareholders' equity attributed to Live Oak Bancshares, Inc.		999,030			1,007,756			961,049			927,718			902,666		(0.9	)	10.7
Non-controlling interest		4,466			—			—			—			—		100.0		100.0
Total shareholders’ equity		1,003,496			1,007,756			961,049			927,718			902,666		(0.4	)	11.2
Total liabilities and shareholders’ equity	$	12,943,380		$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		2.7		14.8

(1) Includes $328.7 million, $343.4 million, $363.0 million, $379.2 million and $388.0 million measured at fair value for the quarters ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.


Live Oak Bancshares, Inc. Statements of Income (unaudited) (Dollars in thousands, except per share data)

	Twelve Months Ended
	December 31, 2024			December 31, 2023
Interest income
Loans and fees on loans	$	744,841		$	623,667
Investment securities, taxable		38,413			33,497
Other interest earning assets		29,118			31,111
Total interest income		812,372			688,275
Interest expense
Deposits		430,887			340,207
Borrowings		5,580			2,763
Total interest expense		436,467			342,970
Net interest income		375,905			345,305
Provision for credit losses		96,212			51,323
Net interest income after provision for credit losses		279,693			293,982
Noninterest income
Loan servicing revenue		31,535			27,399
Loan servicing asset revaluation		(12,155	)		4,886
Net gains on sales of loans		60,899			46,545
Net gain (loss) on loans accounted for under the fair value option		2,403			(3,539	)
Equity method investments (loss) income		(10,921	)		(5,994	)
Equity security investments gains (losses), net		553			(969	)
Lease income		9,756			10,007
Management fee income		7,658			13,324
Other noninterest income		34,053			20,074
Total noninterest income		123,781			111,733
Noninterest expense
Salaries and employee benefits		183,268			175,052
Travel expense		9,738			8,922
Professional services expense		11,023			7,737
Advertising and marketing expense		11,148			12,559
Occupancy expense		10,000			8,490
Technology expense		34,206			31,858
Equipment expense		13,826			14,997
Other loan origination and maintenance expense		17,254			14,804
Renewable energy tax credit investment impairment		530			14,644
FDIC insurance		10,835			16,670
Other expense		12,411			17,152
Total noninterest expense		314,239			322,885
Income before taxes		89,235			82,830
Income tax expense		11,818			8,932
Net income		77,417			73,898
Net loss attributable to non-controlling interest		57			—
Net income attributable to Live Oak Bancshares, Inc.	$	77,474		$	73,898
Earnings per share
Basic	$	1.72		$	1.67
Diluted	$	1.69		$	1.64
Weighted average shares outstanding
Basic		45,009,567			44,353,708
Diluted		45,820,321			45,094,879


Live Oak Bancshares, Inc. Quarterly Selected Financial Data (Dollars in thousands, except per share data)

	As of and for the three months ended
	4Q 2024			3Q 2024			2Q 2024			1Q 2024			4Q 2023
Income Statement Data
Net income attributable to Live Oak Bancshares, Inc.	$	9,900		$	13,025		$	26,963		$	27,586		$	16,163
Per Common Share
Net income, diluted	$	0.22		$	0.28		$	0.59		$	0.60		$	0.36
Dividends declared		0.03			0.03			0.03			0.03			0.03
Book value		22.12			22.32			21.35			20.64			20.23
Tangible book value ⁽¹⁾		22.05			22.24			21.28			20.57			20.15
Performance Ratios
Return on average assets (annualized)		0.31	%		0.43	%		0.93	%		0.98	%		0.58	%
Return on average equity (annualized)		3.85			5.21			11.39			11.93			7.36
Net interest margin		3.15			3.33			3.28			3.33			3.32
Efficiency ratio ⁽¹⁾		63.45			59.72			61.89			66.89			77.88
Noninterest income to total revenue		23.89			25.35			27.22			22.46			25.16
Selected Loan Metrics
Loans and leases originated	$	1,421,118		$	1,757,856		$	1,171,141		$	805,129		$	981,703
Outstanding balance of sold loans serviced		4,715,895			4,452,750			4,292,857			4,329,097			4,238,328
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment ⁽³⁾		1.69	%		1.78	%		1.57	%		1.63	%		1.53	%
Net charge-offs ⁽³⁾	$	33,566		$	1,710		$	8,253		$	3,163		$	4,428
Net charge-offs to average loans and leases held for investment ^{(2) (3)}		1.39	%		0.08	%		0.38	%		0.15	%		0.22	%

Nonperforming loans and leases at historical cost ⁽³⁾
Unguaranteed	$	81,412		$	49,398		$	37,340		$	43,117		$	39,285
Guaranteed		222,885			166,177			122,752			105,351			95,678
Total		304,297			215,575			160,092			148,468			134,963
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment ⁽³⁾		0.82	%		0.52	%		0.42	%		0.51	%		0.48	%

Nonperforming loans at fair value ⁽⁴⁾
Unguaranteed	$	9,115		$	8,672		$	9,590		$	7,942		$	7,230
Guaranteed		54,873			49,822			51,570			47,620			41,244
Total		63,988			58,494			61,160			55,562			48,474
Unguaranteed nonperforming fair value loans to loans held for investment ⁽⁴⁾		2.77	%		2.53	%		2.64	%		2.09	%		1.86	%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		11.04	%		11.19	%		11.85	%		11.89	%		11.73	%
Tier 1 leverage capital (to average assets)		8.21			8.60			8.71			8.69			8.58

Notes to Quarterly Selected Financial Data
(1) See accompanying GAAP to Non-GAAP Reconciliation.
(2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3) Loans and leases at historical cost only (excludes loans measured at fair value).
(4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).


Live Oak Bancshares, Inc. Quarterly Average Balances and Net Interest Margin (Dollars in thousands)

	Three Months Ended December 31, 2024							Three Months Ended September 30, 2024
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	603,758		$	7,257	4.78	%	$	519,340		$	7,016	5.37	%
Investment securities		1,340,027			10,490	3.11			1,287,410			9,750	3.01
Loans held for sale		339,394			7,361	8.63			409,902			9,859	9.57
Loans and leases held for investment ⁽¹⁾		10,030,353			187,460	7.44			9,354,522			182,311	7.75
Total interest-earning assets		12,313,532			212,568	6.87			11,571,174			208,936	7.18
Less: Allowance for credit losses on loans and leases		(155,498	)						(137,285	)
Noninterest-earning assets		551,265							567,098
Total assets	$	12,709,299						$	12,000,987
Interest-bearing liabilities:
Interest-bearing checking	$	350,304		$	4,350	4.94	%	$	350,239		$	4,892	5.56	%
Savings		5,333,338			52,308	3.90			5,043,930			51,516	4.06
Money market accounts		138,021			176	0.51			134,481			190	0.56
Certificates of deposit		5,376,290			56,523	4.18			5,028,830			53,576	4.24
Total deposits		11,197,953			113,357	4.03			10,557,480			110,174	4.15
Borrowings		114,561			1,737	6.03			116,925			1,762	6.00
Total interest-bearing liabilities		11,312,514			115,094	4.05			10,674,405			111,936	4.17
Noninterest-bearing deposits		281,874							237,387
Noninterest-bearing liabilities		83,373							90,079
Shareholders' equity		1,028,426							999,116
Non-controlling interest		3,112							—
Total liabilities and shareholders' equity	$	12,709,299						$	12,000,987
Net interest income and interest rate spread				$	97,474	2.82	%				$	97,000	3.01	%
Net interest margin						3.15							3.33
Ratio of average interest-earning assets to average interest-bearing liabilities						108.85	%						108.40	%

(1) Average loan and lease balances include non-accruing loans and leases.


Live Oak Bancshares, Inc. GAAP to Non-GAAP Reconciliation (Dollars in thousands)

	As of and for the three months ended															For the twelve months ended
	4Q 2024			3Q 2024			2Q 2024			1Q 2024			4Q 2023			2024		2023
Total shareholders’ equity	$	1,003,496		$	1,007,756		$	961,049		$	927,718		$	902,666
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,568			1,606			1,644			1,682			1,721
Tangible shareholders’ equity (a)	$	1,000,131		$	1,004,353		$	957,608		$	924,239		$	899,148
Shares outstanding (c)		45,359,425			45,151,691			45,003,856			44,938,673			44,617,673
Total assets	$	12,943,380		$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,568			1,606			1,644			1,682			1,721
Tangible assets (b)	$	12,940,015		$	12,603,943		$	11,865,129		$	11,502,090		$	11,267,905
Tangible shareholders’ equity to tangible assets (a/b)		7.73	%		7.97	%		8.07	%		8.04	%		7.98	%
Tangible book value per share (a/c)	$	22.05		$	22.24		$	21.28		$	20.57		$	20.15
Efficiency ratio:
Noninterest expense (d)	$	81,257		$	77,589		$	77,656		$	77,737		$	93,204		$	314,239	$	322,885
Net interest income		97,474			97,000			91,320			90,111			89,576			375,905		345,305
Noninterest income		30,593			32,932			34,159			26,097			30,107			123,781		111,733
Total revenue (e)	$	128,067		$	129,932		$	125,479		$	116,208		$	119,683		$	499,686	$	457,038
Efficiency ratio (d/e)		63.45	%		59.72	%		61.89	%		66.89	%		77.88	%
Pre-provision net revenue (e-d)	$	46,810		$	52,343		$	47,823		$	38,471		$	26,479		$	185,447	$	134,153

This press release presents the non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

Live Oak Bancshares, Inc. Reports Fourth Quarter 2024 Results

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