LOB official logo LOB
LOB 2-star rating from Upturn Advisory
Live Oak Bancshares, Inc. (LOB) company logo

Live Oak Bancshares, Inc. (LOB)

Live Oak Bancshares, Inc. (LOB) 2-star rating from Upturn Advisory
$32.8
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PASS
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Upturn Stock price based on last close icon Stock price based on last close
*as per simulation
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Upturn Advisory Summary

12/05/2025: LOB (2-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

Upturn 2 star rating for performance

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

1 star rating from financial analysts

3 Analysts rated it

Very few follow this stock; limited insights, higher-risk early investing.

1 Year Target Price $42.5

1 Year Target Price $42.5

Analysts Price Target For last 52 week
$42.5 Target price
52w Low $22.62
Current$32.8
52w High $46.73

Analysis of Past Performance

Type Stock
Historic Profit 113.38%
Avg. Invested days 66
Today’s Advisory PASS
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 5.0
Stock Returns Performance Upturn Returns Performance icon 5.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 12/05/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.50B USD
Price to earnings Ratio 22.01
1Y Target Price 42.5
Price to earnings Ratio 22.01
1Y Target Price 42.5
Volume (30-day avg) 3
Beta 2.06
52 Weeks Range 22.62 - 46.73
Updated Date 12/6/2025
52 Weeks Range 22.62 - 46.73
Updated Date 12/6/2025
Dividends yield (FY) 0.37%
Basic EPS (TTM) 1.49

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 16.02%
Operating Margin (TTM) 32.56%

Management Effectiveness

Return on Assets (TTM) 0.51%
Return on Equity (TTM) 6.28%

Valuation

Trailing PE 22.01
Forward PE 9.51
Enterprise Value 817071808
Price to Sales(TTM) 3.46
Enterprise Value 817071808
Price to Sales(TTM) 3.46
Enterprise Value to Revenue 3.15
Enterprise Value to EBITDA -
Shares Outstanding 45857617
Shares Floating 35188384
Shares Outstanding 45857617
Shares Floating 35188384
Percent Insiders 23.43
Percent Institutions 67.66

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc.(LOB) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

Live Oak Bancshares, Inc. was founded in 2008 and is headquartered in Wilmington, North Carolina. It focuses on providing financial services to small businesses and entrepreneurs, primarily in niche industries. They have grown rapidly by leveraging technology and industry expertise.

Company business area logo Core Business Areas

  • Commercial Banking: Provides loans, deposit accounts, and other financial services to small businesses across various sectors.
  • Venture Capital: Invests in early-stage companies, particularly those focused on innovation and technology in the banking and financial services sectors.
  • Live Oak Ventures: Invests in companies with the goal of transforming the banking industry.

leadership logo Leadership and Structure

James S. (Chip) Mahan, III is the Chairman and CEO. The organization follows a traditional corporate structure with a board of directors and executive leadership team overseeing different functional areas like lending, technology, and finance.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • SBA Loans: Live Oak specializes in Small Business Administration (SBA) loans, catering to entrepreneurs in specific industries like veterinary practices, agriculture, and renewable energy. Market share in SBA lending is significant, consistently ranking among the top SBA lenders by volume. Competitors include traditional banks like Bank of America and Wells Fargo, as well as other specialized SBA lenders such as Celtic Bank.
  • USDA Loans: Live Oak Bank also offers USDA loans and services to cater to entrepreneurs in specific industries. Competitors include traditional banks like Bank of America and Wells Fargo, as well as other specialized SBA lenders such as Celtic Bank.
  • Commercial Loans: Offers term loans, equipment financing, and working capital loans to small businesses. Market share varies depending on the specific industry. Competitors include regional and national banks.

Market Dynamics

industry overview logo Industry Overview

The small business lending market is competitive, with a mix of traditional banks, credit unions, online lenders, and specialized SBA lenders. Increasing demand for capital from small businesses, coupled with technological advancements in lending, are driving growth. Regulatory changes and economic conditions also significantly impact the industry.

Positioning

Live Oak differentiates itself through its industry expertise and focus on niche markets. Its technology-driven lending platform and emphasis on customer relationships provide a competitive advantage. They are a leading player in the SBA lending space.

Total Addressable Market (TAM)

The SBA lending market is estimated to be billions of dollars annually. Live Oak's positioning allows it to capture a significant portion of this TAM, particularly within its target industries.

Upturn SWOT Analysis

Strengths

  • Deep industry expertise in niche markets
  • Technology-driven lending platform
  • Strong SBA lending performance
  • Experienced management team
  • Strong customer relationships

Weaknesses

  • Concentration in specific industries, increasing risk
  • Reliance on government-backed lending programs
  • Higher operating expenses compared to some larger banks
  • Relatively small size compared to major financial institutions

Opportunities

  • Expansion into new niche markets
  • Increased adoption of digital lending solutions
  • Strategic acquisitions
  • Partnerships with fintech companies
  • Capitalizing on underserved small business lending needs

Threats

  • Changes in government regulations affecting SBA lending
  • Increased competition from other lenders
  • Economic downturn impacting small business loan performance
  • Cybersecurity risks
  • Interest rate fluctuations

Competitors and Market Share

Key competitor logo Key Competitors

  • BAC
  • WFC
  • TCBI

Competitive Landscape

Live Oak's advantage lies in its specialization and technology. Traditional banks have broader offerings but may lack Live Oak's niche expertise. Online lenders offer speed and convenience but may not provide the same level of personalized service.

Major Acquisitions

Apiture

  • Year: 2021
  • Acquisition Price (USD millions): 201.3
  • Strategic Rationale: Acquisition of Apiture strengthens Live Oak's digital banking platform capabilities.

Growth Trajectory and Initiatives

Historical Growth: Live Oak has experienced strong loan growth and revenue increases over the past decade, driven by its specialization in SBA lending and strategic investments in technology.

Future Projections: Analyst estimates suggest continued growth in loan volume and revenue, driven by expansion into new markets and increased adoption of digital lending. Profitability may be impacted by interest rate changes and regulatory costs.

Recent Initiatives: Recent initiatives include expanding its digital lending platform, investing in new technologies, and exploring strategic partnerships.

Summary

Live Oak Bancshares is a specialized lender focused on SBA loans with a strong technology platform. Its niche focus gives it an edge, but also concentrates its risk. Recent acquisitions and strategic initiatives position it for continued growth in the digital banking landscape. The company must carefully manage regulatory changes and economic fluctuations to maintain its profitability.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company filings, market research reports, analyst reports, SBA data.

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Market data is subject to change. Always consult with a qualified financial advisor before making investment decisions.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Live Oak Bancshares, Inc.

Exchange NYSE
Headquaters Wilmington, NC, United States
IPO Launch date 2015-07-23
Chairman & CEO Mr. James S. Mahan III
Sector Financial Services
Industry Banks - Regional
Full time employees 1029
Full time employees 1029

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various banking products and services in the United States. It operates through two segments: Banking and Fintech. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also provides commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company offers settlement, accounting, and securitization services for government guaranteed loans; financing for renewable energy application industry; wealth and investment management services to high-net-worth individuals and families; and investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.