Start here if you're new
what it is
It lends money to small businesses across the U.S., often through government-backed loan programs, and funds that with deposits.
how it gets paid
Last year Live Oak Bancshares made $908M in revenue.
why it's growing
Revenue grew 11.8% last year.
what just happened
This is the number holding up the valuation story. If management or analysts start walking it down, the stock loses one of its cleanest reasons to trade at.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
25.2x trailing p/e — priced about right
0.4% dividend yield — cash in your pocket every quarter
$1.69 fy2024 eps est
xvary composite: 56/100 — below average
What they do
It lends money to small businesses across the U.S., often through government-backed loan programs, and funds that with deposits.
Live Oak wins by being weird on purpose. It specializes in SBA 7(a) and USDA-backed small-business loans nationwide, and it does that with 1,008 employees instead of a giant branch network. Long-term debt is just $113M, or 7% of capital, so your lender is not dragging around a balance-sheet hangover while it hunts niche borrowers.
How they make money
$908M
annual revenue · their business grew +11.8% last year
total revenue
$908M
+11.8%
The products that matter
lends to small businesses
Commercial Lending
$480.8M in net interest income
This is the core engine. The page data ties it to $480.78M in trailing income and a 3.33% net interest margin, so every pricing or funding change shows up here first.
spread engine
funds the loan book
Deposit Services
supports the 3.33% margin
Deposits are the fuel. If funding costs rise faster than loan yields, that 3.33% margin gets squeezed and the recent earnings jump starts looking less durable.
funding base
fees and other banking income
Non-Interest Income
$427.2M of the mix
At $427.2M, this is too large to treat as side income. It gives you another earnings lever when pure lending spreads are under pressure.
47% of mix
Key numbers
$908M
annual revenue
This is the scale of the business today, and EDGAR says it grew 11.8% vs. prior year.
25.2x
trailing p/e
P/E → price versus yearly profit → so what: you are paying $25.20 for each $1 of earnings in a bank with uneven quarterly results.
7%
debt load
Debt to capital → how much of the funding stack is long-term debt → so what: $113M of debt, or 7% of capital, is light for a lender.
1.5
beta
Beta → market sensitivity → so what: your stock has historically moved about 50% more than the market.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $113M (7% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for LOB right now.
source: institutional data · return history unavailable
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
Your top risk is small-business credit and SBA lending concentration. When you own a specialized lender with a 35/100 predictability score, one soft credit stretch can undo a lot of margin progress.
med
Specialized lending cuts both ways
Live Oak focuses on small-business borrowers and the page already flags reliance on SBA lending. That specialization can drive growth. It also makes you more exposed if that borrower base weakens.
If credit quality slips, the 31% PPNR per share growth story gets overwhelmed by reserve pressure.
med
The peer scorecard is not flattering
Ameris Bancorp beats Live Oak on 12 of 17 tracked factors. That does not mean Live Oak fails. It means the market has alternatives if LOB stops out-executing.
The penalty is not just slower growth. It is a ceiling on valuation when a small bank already trades at 25.2x trailing earnings.
med
Predictability is weak
A 35/100 earnings predictability score is a warning label. In human-speak: this is not the bank you buy for quiet quarters and tidy estimate beats.
Expect sharper moves around earnings because the market has less confidence in what comes next.
When a bank trades near the top of its 52-week range, carries a 25.2x p/e, and scores 35/100 on predictability, you need the 3.33% margin and recent profit jump to keep holding up.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
31% projected PPNR per share growth
This is the number holding up the valuation story. If management or analysts start walking it down, the stock loses one of its cleanest reasons to trade at a premium.
trend
Net interest margin at 3.33%
A 5-basis-point move already changed the tone of the quarter. You want to see whether that spread keeps widening or gives back the gain.
calendar
Q1 2026 earnings
The next report is the quickest test of whether Q4 was a new earnings level or a very convenient comparison point. Watch profit, EPS, and any margin commentary together.
risk
Any sign the predictability problem is getting worse
A 35/100 predictability score already tells you estimates are shaky. Another messy quarter would make the premium multiple harder to justify.
Analyst rankings
earnings predictability
35 / 100
Low score. In human-speak, analysts do not expect this bank's quarters to arrive in a straight line.
risk rank
3
Middle-of-the-pack risk. Safer than some small caps, but not a bunker.
balance sheet grade
B+
Good enough to support the thesis. Not strong enough to erase the operating questions.
source: institutional data
Institutional activity
institutional ownership data for LOB is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$38
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive