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©2025 Live Oak Bancshares. All rights reserved. SECOND QUARTER 2025 July 24, 2025
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 2 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business and usually can be identified by the use of forward-looking terminology such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “plan,” “intend,” “project,” “goals,” “outlook,” or “continue,” or the negative thereof or other variations thereof or comparable terminology. These statements represent our judgment concerning the future and are subject to business, economic and other risks and uncertainties, both known and unknown. These statements are based on current expectations, estimates and projections about our business, management’s beliefs and assumptions made by management. These statements are not guarantees of our future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements. Please see the Appendix for more information about these risks, uncertainties and assumptions. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. Moreover, these forward-looking statements speak only as of the date they are made and based only on information actually known to us at the time. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Except as otherwise disclosed, forward-looking statements do not reflect: (i) the effect of any acquisitions, divestitures or similar transactions that have not been previously disclosed; (ii) any changes in laws, regulations or regulatory interpretations; or (iii) any change in current dividend or repurchase strategies, in each case after the date as of which such statements are made. Non-GAAP Measures This document presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. Tabular presentation of this reconciliation is included in the Appendix to this document. We consider these adjustments to be relevant to ongoing operating results. We believe that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing our operating results or financial position. The non-GAAP financial measures are used by management to assess the performance of our business for presentations of our performance to investors, and for other reasons as may be requested by investors and analysts. We further believe that presenting the non-GAAP financial measures will permit investors and analysts to assess our performance on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP. Numbers may not foot due to rounding in this presentation. FORWARD LOOKING STATEMENTS
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 3 LIVE OAK BANCSHARES, INC. ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 a Net Interest Income $ 91.3 $ 97.0 $ 97.5 $ 100.5 $ 109.2 Provision for Credit Losses 11.8 34.5 33.6 29.0 23.3 b Total Noninterest Income 34.2 32.9 30.6 25.6 34.5 a + b Total Revenue 125.5 129.9 128.1 126.1 143.7 c Total Noninterest Expense 77.7 77.6 81.3 84.0 89.3 a + b - c Pre-Provision Net Revenue (PPNR) 47.8 52.3 46.8 42.1 54.5 Income before Taxes 36.1 17.8 13.2 13.1 31.2 Net Income 27.0 13.0 9.9 9.7 23.4 Diluted Earnings per Share $ 0.59 $ 0.28 $ 0.22 $ 0.21 $ 0.51 Total Assets $ 11,868.6 $ 12,607.3 $ 12,943.4 $ 13,595.7 $ 13,831.2 Total HFS and HFI Loans and Leases 9,535.8 10,191.9 10,579.4 11,061.9 11,364.8 Allowance for Credit Losses on Loans and Leases (137.9) (168.7) (167.5) (190.2) (182.2) All Other Assets 2,470.7 2,584.2 2,531.5 2,724.0 2,648.6 Total Liabilities 10,907.5 11,599.6 11,939.9 12,564.3 12,763.9 Total Deposits 10,707.0 11,400.5 11,760.5 12,395.9 12,594.8 Borrowings 117.7 115.4 112.8 110.2 107.7 Other Liabilities 82.7 83.7 66.6 58.1 61.5 Total Shareholders' Equity 961.0 1,007.8 1,003.5 1,031.4 1,067.3 Net Interest Margin 3.28 % 3.33 % 3.15 % 3.20 % 3.28 % Effective Tax Rate 25.2 % 27.0 % 25.6 % 26.4 % 25.0 % LIVE OAK BANCSHARES Q2 GAAP RESULTS
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 4 Business momentum continues Strong growth in core PPNR Checking relationships building Credit moderating LIVE OAK | Q2 2025 HIGHLIGHTS
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 5 $ in millions $45 $53 $53 $50 $62 Adjusted PPNR Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Live Oak Core Operating Leverage 1 Adjusted Total Revenue Adjusted Noninterest Expense 1 1 $123 $131 $77 $77 +36% PYQ $133 $80 $134 $84 $148 $86 10% 3% % CHANGE QoQ $ in millions LIVE OAK'S CORE BUSINESS GENERATING IMPROVED LEVERAGE +22% LQ
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 6 Business Checking Customers $125 $145 $212 $279 $288 $179 $232 $334 $419 $511 2.63% 2.45% 2.47% 2.25% 2.19% 4.13% 4.15% 4.03% 3.88% 3.75% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 16% 18%10% 12% 14%Customers with Loan and Deposit Accounts (%) $799$304 $377 $546 $698Total Balances New Loan Customers with Checking Accounts (%) 36%30% 34% 35% 36% $ in millions BUSINESS CHECKING CONTINUES TO GROW CHECKING ACCOUNTS BUILDING DEEPER, MORE PROFITABLE RELATIONSHIPS
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 7 Quarterly Provision and Unguaranteed Reserve $12 $35 $34 $29 $23 2.28% 2.53% 2.37% 2.53% 2.34% Provision Unguaranteed ACL / Unguaranteed Loans and Leases Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Allowance for Credit Losses $182$138 $169 $168 $190 CREDIT MODERATED AS EXPECTED, KEY METRICS IMPROVED $ in millions 2
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©2025 Live Oak Bancshares. All rights reserved. FINANCIAL HIGHLIGHTS
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 9 Q2 2025 CHANGE VS. $ in millions Q2 2025 Q1 2025 Q2 2024 Net interest income $ 109 $9 $18 Noninterest income $ 35 $9 $— a Total revenue $ 144 $18 $18 b Noninterest expense $ 89 $5 $12 a-b PPNR $ 54 $12 $7 Provision for credit losses $ 23 $(6) $11 Net income before tax $ 31 $18 $(5) Income tax expense $ 8 $4 $(1) Net income $ 23 $14 $(4) Diluted EPS $ 0.51 $0.30 $(0.08) Q2 2025 Q1 2025 Q2 2024 ROE 8.85% 3.78% 11.39% ROA 0.68% 0.30% 0.93% Net interest margin 3.28% 3.20% 3.28% Efficiency ratio1 62.1% 66.6% 61.9% Common equity tier 1 capital 10.7% 10.7% 11.9% TBV per share1 $ 23.29 $22.55 $21.28 Loan and lease originations $ 1,527 $1,396 $1,171 Period-end total loan and lease portfolio $ 11,365 $11,062 $9,536 Period-end total deposits $ 12,595 $12,396 $10,707 Notable Items Line Item Q2 2025 Q2 2024 Noninterest income $0.8 million from bioenergy lease buyout $6.7 million gain on sale of fixed asset Noninterest Expense $2.8 million loss on bioenergy lease buyout $0.2 million renewable energy tax credit impairment$0.3 million renewable energy tax credit impairment Key Highlights Soundness • 2.34% unguaranteed ACL to unguaranteed loans and leases2 • 2:1 liquidity capacity to uninsured deposits, 85% of deposits insured Profitability • Reported PPNR +29% LQ, +14% PYQ • NII +9% LQ, +20% PYQ • TBV1 per share +3% LQ, +9% PYQ Growth • $1.5 billion loan production • Loan and Lease balances +3% LQ • Checking balances +3% LQ Q2 2025 EARNINGS RESULTS
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 10 Q2 EARNINGS SUMMARY PPNR • Net Interest Income of $109 million, +9% LQ and +20% PYQ • Net Interest Margin +8bps LQ, ~flat to PYQ • Adjusted PPNR1 of $62 million, +22% LQ and +36% PYQ • Customer deposit growth +6% LQ despite strong competition and uncertain market • Checking product continues to ramp, current balances of $288 million, +3% LQ, and ~2.3x PYQ • +3% LQ and +9% PYQ • $23 million, -20% LQ • Improving credit trends • Reserve coverage healthy • +$303 million, +3% LQ and +19% PYQ • $1.5B loan production quarter, and pipeline remains healthy Deposit growth Loan growth TBV1 growth Provision EPS • Diluted EPS of $0.51, +$0.30 (+143%) LQ • Substantial LQ improvement in ROE and ROA
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 11 $642 $811 $767 $839 $914 $529 $947 $654 $557 $613 $1,171 $1,758 $1,421 $1,396 $1,527 Small Business BankingCommercial Total Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Size represents each vertical's outstanding balance as a proportion of the bank's total outstanding balance YOY Origination Growth by Vertical Q2 2025 ORIGINATIONS $ in millions Q2 LOANS OUTSTANDING3 $ Q2 2025 vs. Q2 2024 % Change Small Business Banking $7,389 $914 42 % Commercial 4,018 613 16 Seniors Housing Sponsor SBA General Lending Solar Healthcare Self Storage Live Oak Express SBA ©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation $ in millions Quarterly Production Trend Investment Advisors Conventional Real Estate Financing DIVERSIFIED LOAN ORIGINATIONS DRIVING GROWTH
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 12 Period-End Loan and Deposit Balance Trends $9.5 $10.2 $10.6 $11.1 $11.4 $10.7 $11.4 $11.8 $12.4 $12.6 3% 7% 4% 5% 3% Total HFS and HFI Loans and LeasesTotal Deposits QoQ % Loan Growth Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $8.8 +8% $9.4 +6% $7.8 +3% $8.1 +3% $8.3 +1% Customer Deposit Growth Trends STRONG BALANCE SHEET GROWTH TRENDS CONTINUE $ in billions Key Highlights • Strong QoQ loan and deposit growth driving net interest income • $1.5 billion of loan production in Q2 drives elevated loan growth: +3% LQ and +19% PYQ • +6% LQ and +20% PYQ growth in total customer deposits
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 13 Key Highlights • Net Interest Income +9% LQ, +20% PYQ • Net Interest Margin +8bps LQ • Growth and pricing discipline driving 9bps improvement to net spread LQ ◦ Q2 loan production average yield @ 8.05%, +74bps to average portfolio loan yield • Repricing savings product offerings conservatively to support growth Net Spread 3.66% 3.68% 3.44% 3.47% 3.56% Portfolio Loan Yield 7.79% 7.83% 7.47% 7.35% 7.31% Deposit Cost 4.13% 4.15% 4.03% 3.88% 3.75% CDs: LOB average CD rate 4.18% 4.24% 4.18% 4.03% 3.93% CD Maturities ($ in millions) $616 $464 $834 $763 $529 Avg CD renewal rate +5bps -21bps -91bps -84bps -72bps Savings: LOB consumer rate 4.40% 4.40% 4.20% 4.20% 4.10% LOB business rate 4.00% 4.00% 3.70% 3.50% 3.35% Top digital competitors4 4.45% 4.38% 3.97% 3.84% 3.72% $91 $97 $97 $101 $109 3.28% 3.33% 3.15% 3.20% 3.28% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net Interest Income Net Interest Margin $ in millions Net Interest Income Net Interest Margin Q1 2025 $100.5 3.20% Loan Volume & Mix $7.8 0.08% Loan Rates $(2.1) (0.06)% Funding Volume & Mix $(3.2) (0.10)% Funding Rates $4.2 0.13% Other $1.0 0.03% Day Count $1.0 —% Q2 2025 $109.2 3.28% NET INTEREST MARGIN AND NET INTEREST INCOME TRENDS $ in millions
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 14 Key Highlights Net gains on Q2 loan sales • SBA premiums relatively steady since Q2 2024 • Small loan SBA 7(a) and USDA providing additional gain on sale volume • 90% or more of small business production variable rate5 last four quarters; provides for more sales flexibility Secondary Market Performance $14 $17 $18 $19 $22 106% 107% 107% 107% 107% Net Gains on Sales of LoansTotal Average Gain on Sale Premium Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $322$250 $267 $278 $266 LOAN SALES CONTINUE TO PROVIDE REVENUE, LIQUIDITY, AND OPTIONALITY $ in millions Guaranteed Loans Sold ($ in millions)
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 15 Quarterly Expenses $78 $78 $81 $84 $89 $46 $45 $45 $48 $49 $32 $33 $35 $36 $37 $1 $3 Personnel expense Non-personnel expenseNon-GAAP adjustments Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Efficiency ratio1 62% 60% 63% 67% 62% 1 $ in millions $1 EXPENSE TRENDS: SUPPORTING GROWTH, TARGETING EFFICIENCY IMPROVEMENTS
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 16 Key Credit Metrics & Trends Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Over 30 days past due, accruing 6, 7 0.34% 0.74% 0.14% 0.09% 0.11% Non accrual ratio 6, 8 0.53% 0.60% 0.89% 1.03% 0.63% Net charge-off ratio 2, 9 0.38% 0.08% 1.39% 0.27% 1.19% ACL to loans & leases HFI 2 1.57% 1.78% 1.69% 1.83% 1.70% Unguaranteed ACL to unguaranteed loans and leases HFI 2 2.28% 2.53% 2.37% 2.53% 2.34% % of loan portfolio guaranteed 36% 34% 34% 33% 32% Number of New Defaults 39 51 85 49 40 Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025 Non Accrual Loans $49 $59 $91 $111 $69 Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025 Over 30 Days Past Due $32 $73 $14 $10 $13 Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025 $ in millions 7 10 CREDIT QUALITY OVERVIEW 8 $ in millions
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 17 $3,705 $1,988 $435 $7,703 Unguaranteed Loans & Leases Other, net Cash and Securities Guaranteed Loans $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 MAHAN RATIO Q2 2025 Tier 1 Capital (a) $1,089 ACL and FV Mark on Unguaranteed Loans and Leases (b) $184 Total Unguaranteed Loans and Leases12 (c) $7,703 Tier 1 Capital to Unguaranteed Loans and Leases12 (a/c) 14.1% ACL and FV Mark to Unguaranteed Loans and Leases12 (b/c) 2.4% Tier 1 Capital + ACL & FV Mark to Unguaranteed Loans and Leases12 (a+b/c) 16.5% 16.5% = CAPITAL RATIOS Q2 2025 Common Equity Tier 1 Capital 10.7% Tier 1 Capital 10.7% Tier 1 Leverage 7.9% Total Capital 11.9% Total Assets Tier 1 Capital + ACL & FV Mark Unguaranteed Loans & Leases12 14 12 13 $ in millions UNIQUE BALANCE SHEET COMPOSITION AND THE MAHAN RATIO GOVERNMENT GUARANTEED LOAN MIX IS ~8X THE INDUSTRY11: 41% OF ASSETS ARE CASH OR GOVERNMENT GUARANTEED
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 18 LIVE OAK | FOCUS Building momentum in what we do best Seizing new growth opportunities right in front of us Modernizing the engine with new innovations
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©2025 Live Oak Bancshares. All rights reserved. 19
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©2025 Live Oak Bancshares. All rights reserved. APPENDIX
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©2025 Live Oak Bancshares. All rights reserved. 21APPENDIX: PRESENTATION FOOTNOTES 1. Non-GAAP financial measures. See Appendix for reconciliation of non-GAAP items to reported balances. 2. Loans and leases at historical cost only (excludes loans measured at fair value). 3. Represents total loans and leases at amortized cost, excluding PPP loans (inclusive of loans and leases at fair value and historical cost). 4. Source: Bankrate. Top Digital Competitors include: Capital One, Goldman Sachs Marcus, Ally Bank, American Express, Sallie Mae, Synchrony, Barclays, Citizens, CIT, and Discover. 5. Variable rate loans include those with a reprice frequency of one year or less. 6. Ratio uses total HFI loans and leases at amortized cost (inclusive of loans and leases at fair value and historical cost) as denominator. 7. Past due loans and leases include HFI unguaranteed loans and leases on accrual status at amortized cost (inclusive of loans and leases at fair value and historical cost). 8. Nonaccruals includes nonaccrual HFI unguaranteed loans and leases at amortized cost (inclusive of loans and leases at fair value and historical cost). 9. Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized. 10. Number of loans newly coded as non-accrual in the quarter, excluding PPP. 11. From financial institution industry data. Government guarantee derived from that data by assuming reported loans and leases with a 0% and 20% risk-weighting are government guaranteed. Source is S&P Capital IQ as of March 31, 2025, including data for all Bank Holding Companies. 12. Represents total unguaranteed loans and leases at amortized cost (inclusive of loans and leases at fair value and historical cost). 13. Includes cash and due from banks, certificates of deposit with other banks and investment securities available for sale. 14. Balance reflected is at amortized cost.
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©2025 Live Oak Bancshares. All rights reserved. 22 Information in this presentation may contain “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. These statements generally relate to our financial condition, results of operations, plans, objectives, future performance or business and usually can be identified by the use of forward-looking terminology such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “plan,” “intend,” “project,” “goals,” “outlook,” or “continue,” or the negative thereof or other variations thereof or comparable terminology. These statements represent our judgment concerning the future and are subject to business, economic and other risks and uncertainties, both known and unknown. These statements are based on current expectations, estimates and projections about our business, management’s beliefs and assumptions made by management. These statements are not guarantees of our future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements. These risks, uncertainties and assumptions include, without limitation: • deterioration in the financial condition of borrowers resulting in significant increases in our provision for credit losses and other adverse impacts to results of operations and financial condition; • changes in SBA rules, regulations and loan products, including specifically the Section 7(a) program, changes in SBA standard operating procedures or changes to the status of Live Oak Banking Company as an SBA Preferred Lender; • changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; • changes in interest rates that affect the level and composition of deposits, loan demand and the values of loan collateral, securities, and interest sensitive assets and liabilities; • the failure of assumptions underlying the establishment of reserves for possible credit losses; • changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; • adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; • the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; • a reduction in or the termination of our ability to use the technology-based platform that is critical to the success of our business model or to develop a next-generation banking platform, including a failure in or a breach of our operational or security systems or those of its third party service providers; • risks relating to the material weakness we identified in our internal control over financial reporting; • technological risks and developments, including cyber threats, attacks, or events; • changes in financial market conditions, either internationally, nationally or locally in areas in which we conduct operations, including reductions in rates of business formation and growth, demand for our products and services, commercial and residential real estate development and prices, premiums paid in the secondary market for the sale of loans, and valuation of servicing rights; • changes in accounting principles, policies, and guidelines applicable to bank holding companies and banking; • fluctuations in markets for equity, fixed-income, commercial paper and other securities, which could affect availability, market liquidity levels, and pricing; • the effects of competition from other commercial banks, non-bank lenders, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and mutual funds, and other financial service providers operating in our market area and elsewhere, including providers operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone and the Internet; • our ability to attract and retain key personnel; • changes in governmental monetary and fiscal policies as well as other legislative and regulatory changes, including with respect to SBA or USDA lending programs and investment tax credits; • changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; • a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; • changes in political and economic conditions, including any prolonged U.S. government shutdown; • the impact of heightened regulatory scrutiny of financial products and services, primarily led by the Consumer Financial Protection Bureau and various state agencies; • our ability to comply with any requirements imposed on us by our regulators, and the potential negative consequences that may result; • operational, compliance and other factors, including conditions in local areas in which we conduct business such as inclement weather or a reduction in the availability of services or products for which loan proceeds will be used, that could prevent or delay closing and funding loans before they can be sold in the secondary market; • the effect of any mergers, acquisitions or other transactions, to which we may from time to time be a party, including management’s ability to successfully integrate any businesses that we acquire; • adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions • other risk factors listed from time to time in reports that we file with the SEC, including in our Annual Report on Form 10-K; and • our success at managing the risks involved in the foregoing. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. Moreover, these forward-looking statements speak only as of the date they are made and based only on information actually known to us at the time. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Except as otherwise disclosed, forward-looking statements do not reflect: (i) the effect of any acquisitions, divestitures or similar transactions that have not been previously disclosed; (ii) any changes in laws, regulations or regulatory interpretations; or (iii) any change in current dividend or repurchase strategies, in each case after the date as of which such statements are made. FORWARD LOOKING STATEMENTS
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©2025 Live Oak Bancshares. All rights reserved. 23 1.Includes valuation adjustments related to equity security investments, equity warrant assets, and foreclosed assets Reconciliation of non-GAAP items to reported balances ($ in millions) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 a Net interest income, as reported $ 91.3 $ 97.0 $ 97.5 $ 100.5 $ 109.2 b Total noninterest income, as reported 34.2 32.9 30.6 25.6 34.5 Fair value adjustments: Add loan servicing asset revaluation loss 2.9 4.2 2.3 4.7 3.1 Add net loss (gain) on loans accounted for under the fair value option (0.2) (2.3) (0.2) 1.0 (1.1) Add other losses (gains) on valuation adjustments(1) (0.6) 0.1 0.1 0.3 0.1 Total fair value adjustments 2.1 2.0 2.3 6.1 2.1 Less gain on sale of fixed asset (6.7) (2.4) — — — Add equity method investments loss (income) 1.8 1.4 2.7 2.2 2.7 Subtract lease income on bioenergy lease buyout — — — — (0.8) c Adjusted noninterest income 31.4 33.9 35.6 33.9 38.6 a+c Adjusted total revenue 122.7 130.9 133.1 134.4 147.8 d Total noninterest expense, as reported 77.7 77.6 81.3 84.0 89.3 Less renewable energy tax credit impairment 0.2 0.1 1.2 — 0.3 Less loss on bioenergy lease early buyout — — — — 2.8 Adjusted noninterest expense 77.5 77.5 80.1 84.0 86.2 a+b-d PPNR, as reported 47.8 52.3 46.8 42.1 54.5 Net interest income 91.3 97.0 97.5 100.5 109.2 Adjusted noninterest income 31.4 33.9 35.6 33.9 38.6 Adjusted noninterest expense 77.5 77.5 80.1 84.0 86.2 e Adjusted PPNR 45.2 53.5 53.0 50.4 61.6 f Provision for credit losses, as reported 11.8 34.5 33.6 29.0 23.3 e-f Adjusted net income before tax $ 33.4 $ 19.0 $ 19.4 $ 21.5 $ 38.3 APPENDIX: RECONCILIATION
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©2025 Live Oak Bancshares. All rights reserved. 24 ($ in millions) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total shareholders' equity $ 961.0 $ 1,007.8 $ 1,003.5 $ 1,031.4 $ 1,067.3 Less: Goodwill 1.8 1.8 1.8 1.8 1.8 Other intangible assets 1.6 1.6 1.6 1.5 1.5 a Tangible shareholders' equity 957.6 1,004.4 1,000.1 1,028.1 1,064.0 b Shares outstanding 45,003,856 45,151,691 45,359,425 45,589,633 45,686,081 a/b TBV (Tangible Book Value) per share $ 21.28 $ 22.24 $ 22.05 $ 22.55 $ 23.29 ($ in millions) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Efficiency Ratio Noninterest expense $ 77.7 $ 77.6 $ 81.3 $ 84.0 $ 89.3 Net interest income 91.3 97.0 97.5 100.5 109.2 Noninterest income 34.2 32.9 30.6 25.6 34.5 Adjusted operating revenue 125.5 129.9 128.1 126.1 143.7 Efficiency Ratio 61.9 % 59.7 % 63.4 % 66.6 % 62.1% Efficiency ratio adjusted for non-GAAP activities Adjusted noninterest expense $ 77.5 $ 77.5 $ 80.1 $ 84.0 $ 86.2 Net interest income 91.3 97.0 97.5 100.5 109.2 Adjusted noninterest income 31.4 33.9 35.6 33.9 38.6 Adjusted efficiency ratio 63.2 % 59.2 % 60.2 % 62.5 % 58.3% APPENDIX: RECONCILIATION
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 25 WELL-DIVERSIFIED LOAN PORTFOLIO $11.4 billion Portfolio Balance Average loan size of $1.2 million ~40 Unique Verticals ~32% of portfolio is government guaranteed NO INDIVIDUAL INDUSTRY BALANCE IS GREATER THAN 10% OF THE TOTAL LOAN PORTFOLIO WELL-DIVERSIFIED LOAN PORTFOLIO NO INDIVIDUAL VERTICAL BALANCE IS GREATER THAN 10% OF THE TOTAL LOAN PORTFOLIO
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 26 $11,062 $606 $819 $(642) $(322) $(158) $11,365 Q1 2025 Total Loan and Lease Balance Full Funded Originations Other Loan Disbursements Prepayment and Amortizations Guaranteed Sold Unguaranteed Loan Participations Q2 2025 Total Loan and Lease Balance Increase Decrease Total Period End ($ in millions) 7% Net growth before loan sales A B APPENDIX: CURRENT AND PAST PRODUCTION DRIVING LOAN GROWTH 3% PERIOD-END LOAN GROWTH LQ; 7% TOTAL NET GROWTH LQ BEFORE LOAN SALES A. Other Loan Disbursements includes disbursements on construction loans and revolving loans. B. Prepayment and Amortizations also includes charge-offs and change in deferred loan fees and cost.
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©2025 Live Oak Bancshares. All rights reserved. | View all disclosures at end of presentation 27 1, 2 Annualized SBA Net Charge-Off Ratio (10-year average) 0.3% 0.6% Live Oak SBA Industry 43 APPENDIX: TAKING THE LONG VIEW LIVE OAK CREDIT TRENDS REMAIN BETTER THAN OTHER SBA LENDERS 1. Source: Lumos Technologies, Inc., SBA 7(a) Program Data for fiscal years ending March 31. 2. Default is defined as 60 days past due or indication that the business has been shut down when less than 60 days past due. Denominator is total active loans. 3. 10 year average of SBA quarterly net charge-offs as a percentage of the quarterly simple average of SBA loans and leases held for investment, annualized. 4. Source: Lumos Technologies, Inc., SBA 7(a) Program by NAICS. 10 year annualized charge offs by dollar of loans through March 31, 2025.
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©2025 Live Oak Bancshares. All rights reserved. 28 $62 Portfolio Companies 1 2 4 6 6 7 9 11 13 13 14 Additions by Period Cash ProceedsB to Date $171 million Total Implied ValueA Q2 2025 $178 million $1 $4 $80 $129 $154 $155 $198 $321 $333 $345 $349 $1 $4 $6 $15 $17 $19 $29 $52 $59 $66 $70 $1 $4 $80 $82 $80 $82 $117 $131 $132 $131 $132 Book Value Cash Invested Implied Value Cash Proceeds 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $— $50 $100 $150 $200 $250 $300 $350 A B APPENDIX: LIVE OAK VENTURES A. Estimated implied value based on most recent transaction data and not necessarily indicative of future values. B. Includes actual cash proceeds from the partial sale of Greenlight Financial Technology, Inc., and full sale of Finxact, Inc. and Payrailz, LLC. Note: Data is year to date 2025 $132 $70