Live Oak Bancshares
Market Cap
US$557.4m
Last Updated
2020/06/03 04:28 UTC
Data Sources
Company Financials +
Executive Summary
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has Live Oak Bancshares's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LOB's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-4.9%
LOB
-0.3%
US Banks
1.7%
US Market
1 Year Return
-14.1%
LOB
-21.3%
US Banks
8.5%
US Market
Return vs Industry: LOB exceeded the US Banks industry which returned -21.1% over the past year.
Return vs Market: LOB underperformed the US Market which returned 9.3% over the past year.
Shareholder returns
| LOB | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.9% | -0.3% | 1.7% |
| 30 Day | 2.6% | 5.8% | 9.5% |
| 90 Day | -3.4% | -18.2% | 0.1% |
| 1 Year | -13.4%-14.1% | -18.6%-21.3% | 11.0%8.5% |
| 3 Year | -42.6%-43.6% | -7.0%-14.3% | 32.2%23.5% |
| 5 Year | n/a | 12.6%-0.8% | 58.6%40.8% |
Price Volatility Vs. Market
How volatile is Live Oak Bancshares's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Could The Live Oak Bancshares, Inc. (NASDAQ:LOB) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
How Does Live Oak Bancshares's (NASDAQ:LOB) P/E Compare To Its Industry, After Its Big Share Price Gain?1 month ago | Simply Wall St
How Should Investors Feel About Live Oak Bancshares, Inc.'s (NASDAQ:LOB) CEO Pay?Valuation
Is Live Oak Bancshares undervalued compared to its fair value and its price relative to the market?
68.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LOB ($13.83) is trading above our estimate of fair value ($7.8)
Significantly Below Fair Value: LOB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LOB is poor value based on its PE Ratio (69.1x) compared to the Banks industry average (9.6x).
PE vs Market: LOB is poor value based on its PE Ratio (69.1x) compared to the US market (15.7x).
Price to Earnings Growth Ratio
PEG Ratio: LOB is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: LOB is overvalued based on its PB Ratio (1x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Live Oak Bancshares forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
60.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOB's forecast earnings growth (60.9% per year) is above the savings rate (2.2%).
Earnings vs Market: LOB's earnings (60.9% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LOB's revenue (15.7% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: LOB's revenue (15.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if LOB's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Live Oak Bancshares performed over the past 5 years?
17.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOB has a high level of non-cash earnings.
Growing Profit Margin: LOB's current net profit margins (4.5%) are lower than last year (21.9%).
Past Earnings Growth Analysis
Earnings Trend: LOB's earnings have grown by 17.9% per year over the past 5 years.
Accelerating Growth: LOB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LOB had negative earnings growth (-80.5%) over the past year, making it difficult to compare to the Banks industry average (2.8%).
Return on Equity
High ROE: LOB's Return on Equity (1.5%) is considered low.
Next Steps
Financial Health
How is Live Oak Bancshares's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: LOB's Assets to Equity ratio (9.9x) is low.
Allowance for Bad Loans: LOB has a low allowance for bad loans (38%).
Low Risk Liabilities: 98% of LOB's liabilities are made up of primarily low risk sources of funding.
Loan Level: LOB has an appropriate level of Loans to Assets ratio (53%).
Low Risk Deposits: LOB's Loans to Deposits ratio (60%) is appropriate.
Level of Bad Loans: LOB has a high level of bad loans (3.4%).
Next Steps
Dividend
What is Live Oak Bancshares's current dividend yield, its reliability and sustainability?
0.87%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LOB's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: LOB's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (4.55%).
Stability and Growth of Payments
Stable Dividend: LOB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: LOB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: LOB is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LOB's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Chip Mahan (67yo)
no data
Tenure
US$716,226
Compensation
Mr. James S. Mahan III, also known as Chip, serves as Managing Partner at Canapi Ventures. He founded Live Oak Bancshares, Inc., in 2007 and serves as its Chairman of the Board and Chief Executive Officer. ...
CEO Compensation Analysis
Compensation vs Market: Chip's total compensation ($USD716.23K) is below average for companies of similar size in the US market ($USD2.22M).
Compensation vs Earnings: Chip's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | no data | US$716.23k | 15.39% $85.8m | |
| President & Director | 10.42yrs | US$832.46k | 3.46% $19.3m | |
| Chief Financial Officer | 9.42yrs | US$751.89k | 0.65% $3.6m | |
| President of Live Oak Banking Company | 1.75yrs | US$5.88m | 0.21% $1.2m | |
| Chief Risk Officer of Live Oak Banking Company | 2.17yrs | US$905.78k | 0.0074% $41.3k | |
| Vice Chairman & Executive VP | 8.42yrs | no data | 3.18% $17.7m | |
| Chief Accounting Officer | 6.42yrs | no data | 0.085% $474.2k | |
| Executive VP & General Counsel | 4.67yrs | US$979.36k | 0.032% $177.1k | |
| Vice President of Corporate Communications | no data | no data | no data | |
| Chief Marketing Officer | no data | no data | no data |
5.5yrs
Average Tenure
49yo
Average Age
Experienced Management: LOB's management team is seasoned and experienced (5.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | no data | US$716.23k | 15.39% $85.8m | |
| President & Director | 10.42yrs | US$832.46k | 3.46% $19.3m | |
| Vice Chairman & Executive VP | 8.42yrs | no data | 3.18% $17.7m | |
| Independent Director | 12.42yrs | US$109.99k | 0.49% $2.7m | |
| Independent Director | 5.83yrs | US$106.66k | 0.087% $482.9k | |
| Independent Director | 0.67yr | US$46.51k | 0.010% $56.4k | |
| Independent Director | 6.58yrs | US$119.99k | 0.35% $1.9m | |
| Independent Director | 9.83yrs | US$135.99k | 0.23% $1.3m | |
| Independent Director | 12.42yrs | US$109.99k | 0.24% $1.3m |
9.1yrs
Average Tenure
65yo
Average Age
Experienced Board: LOB's board of directors are considered experienced (9.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LOB insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Live Oak Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Live Oak Bancshares, Inc.
- Ticker: LOB
- Exchange: NasdaqGS
- Founded: 2008
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$557.410m
- Shares outstanding: 40.51m
- Website: https://www.liveoakbank.com
Number of Employees
Location
- Live Oak Bancshares, Inc.
- 1741 Tiburon Drive
- Wilmington
- North Carolina
- 28403
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LOB | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Jul 2015 |
Biography
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers 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 provides settlement, accounting, and securitization services for government guaranteed loans; wealth and investment management services to high-net-worth individuals and families; investment advisory services to new funds focused on providing venture capital to new and emerging financial technology companies; and an on-site restaurant location to company employees and business visitors. Live Oak Bancshares, Inc. was founded in 2008 and is headquartered in Wilmington, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/03 04:28 |
| End of Day Share Price | 2020/06/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.