Live Oak (LOB) Q3 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 11:51 AM CDT 39 min read

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Oct. 23, 2025, 9 a.m. ET

• President and Chief Financial Officer — William C. (BJ) Losch III

• Chief Financial Officer — Walter Phifer

• Chief Credit Officer — Michael Cairns

• Chairman and Chief Executive Officer — James Mahan

William C. (BJ) Losch III: Good morning, everybody. Let's get started with a large outcry retired to each of Live Oakers and our customers connected Slide 4. We're arrogant to beryllium recognized arsenic the #1 SBA 7(a) lender for 2025 and by an awesome margin. Not lone did we supply implicit $2.8 cardinal of loans to tiny businesses, but we besides accrued our accumulation by 44% implicit past year, and our marketplace stock accrued from 6.4% to 7.7%, and yet we inactive person plentifulness of country to turn successful the program. Turning to Slide 5. We cognize what we are bully at, and we're keeping the main thing, the main happening by ensuring our existing vertical lending and deposit gathering activities are our #1 priority.

This show is apical of the people from a maturation perspective. Loan accumulation up 22%, indebtedness outstandings maturation up 17%, lawsuit deposit maturation up 20% and PPNR up 24%. These results bespeak the hard enactment each our teams person done to make outcomes that are much accordant and sustainable implicit time. That's our goal. To guarantee our profitable maturation trajectory continues implicit the mean term, we are extending our lawsuit merchandise offerings by adding checking and tiny dollar SBA indebtedness capabilities. Both of these efforts launched successful aboriginal 2024. And successful a small implicit 18 months, our teams person made important gains successful winning lawsuit checking relationships and serving much tiny concern borrowers.

On the checking front, we ended the 4th with $363 cardinal of checking balances oregon 4% of our full deposit base, up from lone 2% this clip past year. This summation is adjacent much awesome erstwhile you see that our full deposit basal grew 17% year-over-year. We person astir 1/3 of our caller indebtedness customers opening a checking relationship with america each quarter, and we expect that percent to summation arsenic we adhd much capabilities specified arsenic merchant services. At the opening of 2024, lone astir 6% of our customers had some a indebtedness and deposit narration with us. Today, that percent is 20%.

All this is starring to deeper relationships with customers, amended penetration into lawsuit currency flows and meaningful reductions successful the outgo of deposits, some present and implicit time. On the tiny dollar 7(a) front, what we telephone Live Oak Express, accumulation is ramping up meaningfully and volition proceed to bash so. These loans are besides precise desirable connected the secondary marketplace and are starring to a bully summation connected merchantability increase. We are continuing our efforts to marque it simpler, easier, faster and much businesslike for our radical to service our customers.