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Live Oak Bancshares Q3 2026 Earnings Report
Live Oak Bancshares reports record loan growth and strong operating margins despite $17 million distillery portfolio provision.
In brief
Live Oak Bancshares reports record loan growth and strong operating margins despite $17 million distillery portfolio provision. Live Oak Bancshares reported $0.52 diluted EPS with $0.76 adjusted EPS, driven by $2.1 billion loan production and 33% year-over-year growth in adjusted pre-provision net revenue. Originally…
Q3 2026 Earnings Results
Live Oak Bancshares reported diluted EPS of $0.52, reflecting a $0.27 per share negative impact from a $17 million provision related to an exited distillery portfolio.
Adjusted EPS Performance
Adjusted EPS reached $0.76, excluding the specific impact of the distillery-related provisioning actions.
Pre-Provision Net Revenue Growth
Pre-provision net revenue grew to $89.9 million, representing a 52.9% year-over-year increase driven by significant revenue growth outpacing noninterest expenses.
Adjusted Pre-Provision Net Revenue
Adjusted pre-provision net revenue reached $88 million, representing 33% year-over-year growth and 16% growth from the prior quarter.
Total Revenue Growth
Total revenue increased to $175.6 million, a 23.4% year-over-year rise from $142.3 million.
Loan and Lease Production
Loan and lease production reached $2.1 billion, a record quarterly volume representing 29.4% year-over-year growth across 34 distinct industries.
Total Loans and Leases
Total loans and leases increased to $13.9 billion, a 16.4% year-over-year rise from $11.9 billion as of September 30, 2025.
Total Deposits Growth
Total deposits grew to $15.5 billion, reflecting 16.4% year-over-year growth with customer channels providing 75% of new funding.
Net Interest Income
Net interest income rose to $133.0 million, a 15.2% year-over-year increase from $115.5 million.
Net Interest Margin
Net interest margin decreased to 3.30%, a 3 basis point decline from 3.33% in the prior year reflecting higher funding costs and deposit market competition.
Provision for Credit Losses
Provision for credit losses totaled $54.7 million, comprising $17 million for the distillery portfolio, $16 million for loan growth reserves, $13 million for six commercial relationships, and $9 million for small business banking.
Live Oak Express Originations
Live Oak Express originations increased to $107 million, a 173% year-over-year rise generating $7 million in gain on sale revenue.
Business Checking Balances
Business checking balances grew to $500 million, representing a 39% year-over-year increase to reach roughly 5% of total deposits.
Reported Efficiency Ratio
Reported efficiency ratio improved to 48.8%, an improvement of 988 basis points from 58.7% in the third quarter of 2025.
Relationship Deposits
Relationship deposits reached $1.3 billion, representing a customer segment where 25% of borrowers now also hold a deposit account.
Relationship Deposit Cost
Relationship deposit cost remained at 184 basis points, compared to an overall deposit cost of 347 basis points for the quarter.
Here's the gist
Live Oak Bancshares reported $0.52 diluted EPS with $0.76 adjusted EPS, driven by $2.1 billion loan production and 33% year-over-year growth in adjusted pre-provision net revenue.
