# Live Oak Bancshares Q3 2026 Earnings Report

> Live Oak Bancshares reports record loan growth and strong operating margins despite $17 million distillery portfolio provision.
- Title: Live Oak Bancshares Q3 2026 Earnings Report · The Motley Fool
- Summary: Live Oak Bancshares reports record loan growth and strong operating margins despite $17 million distillery portfolio provision. Live Oak Bancshares reported…
- Keywords: breaking, live oak bancshares, lob, q3 2026, earnings call, distillery portfolio, small business lending, sba 7a, live oak express, business checking, ai deployment, loan production
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/22/live-oak-bancshares-lob-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-22T16:54:09+00:00
- Read time: 2 min
- Topics: breaking, live oak bancshares, lob, q3 2026, earnings call, distillery portfolio, small business lending, sba 7a, live oak express, business checking, ai deployment, loan production
## 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.
## Key takeaway

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.