Live Oak (LOB) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 9:53 AM CDT 31 min read

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Thursday, April 23, 2026 astatine 9:00 a.m. ET

• Chairman and Chief Executive Officer — Chip Mahan

• President — BJ Losch

• Chief Financial Officer — Walter Phifer

• Chief Credit Officer — Michael Cairns

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Chip Mahan: Good morning, everyone. Team Live Oak is excited to archer you astir our show for the archetypal quarter. Things are a small spot antithetic today. Our President, BJ Losch, is simply a spot nether the upwind and, predictably, helium is dialing successful remotely. He volition commencement america disconnected with a fewer overarching comments, and we volition manus it implicit to Walter Phifer, our CFO, for immoderate numbers, and each of us, including Michael Cairns, our Chief Credit Officer, volition beryllium disposable for questions astatine the end. BJ, implicit to you.

BJ Losch: Great. Thanks, Chip. Good morning, everybody. Thanks for joining us. Let america get started connected descent four. Our program to make much sustainable net momentum is truly working, arsenic you tin spot successful our net trends, with reported EPS of $0.60 for the 4th and adjacent stronger show from the halfway operations. Our lending businesses proceed to enactment up beardown numbers, our recognition trends are unchangeable to improving, and we are continuing to ramp up small-dollar SBA lending. Checking is having a meaningful interaction connected our results with acold much to come. And arsenic you would expect from Live Oak Bancshares, Inc., we are continuing to find ways to innovate and enactment astatine the forefront of technological changes.

Turning to descent five, you spot the net momentum continues. And arsenic arrogant arsenic I americium of our indebtedness accumulation results, what matters astir is however you construe that into profitable operating leverage and beardown recognition quality. As you tin spot connected descent five, those results are outstanding, with adjusted PPNR up 30% implicit this clip past twelvemonth and adjusted EPS astir doubled from this clip past year. On descent six, you tin spot our recognition trends implicit 10 years comparative to each different SBA lenders, and portion default rates person moved higher implicit the past 2 years, Live Oak Bancshares, Inc.'s show has been modestly improving contempt a hard backdrop for tiny businesses.

The dependable betterment successful our provision, reserve coverage, and past dues reflects this. Over the past respective quarters, we person been sharing with you advancement connected 2 cardinal initiatives: checking and Live Oak Express, our small-dollar 7(a) program. Both of these efforts launched successful aboriginal 2024, and successful conscionable 24 months, our teams person made important gains successful winning lawsuit checking relationships and serving much tiny concern borrowers. That sounds great, and it is. But wherefore is it truthful important to us? Two large reasons. Number one, if we are going to beryllium America's tiny concern bank, we person got to connection each the superior products they need.