WILMINGTON, N.C., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE:LOB) ("Live Oak" or "the Company") today reported third quarter of 2025 net income attributable to common shareholders of $25.6 million, or $0.55 per diluted common share.

Live Oak's performance in the quarter, compared to the second quarter of 2025 and third quarter of 2024, includes these notable items:

Strong loan production of $1.65 billion accompanied by strong deposit growth of $695.9 million in the third quarter of 2025, with total assets growing by 6.0% and 16.3% to $14.67 billion compared to the second quarter of 2025 and third quarter of 2024, respectively
$96.3 million in capital was raised as a result of preferred stock offering in the third quarter of 2025
Net interest income increased 5.7% and 19.1% compared to the second quarter of 2025 and third quarter of 2024, respectively; while net interest margin increased five basis points during the third quarter of 2025 from 3.28% for the second quarter of 2025 to 3.33% and remained flat compared to the third quarter of 2024
Revenue (comprised of net interest income and noninterest income) increased 1.6% and 12.4% compared to the second quarter of 2025 and third quarter of 2024, respectively, and noninterest expense decreased 2.2% and increased 12.5% compared to the second quarter of 2025 and third quarter of 2024, respectively, which generated an 8.0% and 12.4% increase in pre-provision net revenue¹compared to the second quarter of 2025 and third quarter of 2024, respectively
Provision expense for credit losses of $22.2 million, a decrease of $1.0 million and $12.3 million compared to the second quarter of 2025 and third quarter of 2024, respectively

Subsequent to September 30, 2025, the Company completed its sale of Apiture, Inc. resulting in a pre-tax gain of approximately $24.0 million.

"Live Oak's third quarter results reflect the strength of our core banking operations and our continued commitment to serving small businesses across the country. We delivered strong loan production, were again named the SBA's leading 7(a) lender by dollar amount, had significant deposit growth, and drove total assets to $14.67 billion—a 16% increase year-over-year," said Live Oak Chairman and CEO James S. (Chip) Mahan III. "In addition to our operating performance, we further strengthened our capital position with the successful preferred stock offering in August, and an approximate $24 million gain from the sale of Apiture, which closed this week. These strategic moves position Live Oak for continued growth and resilience as we enter the final stretch of 2025."

Conference Call

Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, October 23, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 72227. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

Live Telephone Dial-In

U.S.: 800.549.8228

International: +1 646.564.2877

Pass Code: None Required

Live Webcast Log-In

Webcast Link: investor.liveoakbank.com

Registration: Name and Email Required

Multi-Factor Code: Provided After Registration

(1) See accompanying GAAP to Non-GAAP Reconciliation.

Third Quarter 2025 Key Measures

(Dollars in thousands, except per share data)							Increase (Decrease)
	3Q 2025			2Q 2025			Dollars			Percent		3Q 2024
Total revenue ⁽¹⁾	$	146,099		$	143,747		$	2,352		1.6	%	$	129,932
Total noninterest expense		87,285			89,293			(2,008	)	(2.2	)		77,589
Income before taxes		36,572			31,202			5,370		17.2			17,841
Effective tax rate		27.6	%		25.0	%		n/a		n/a			27.0	%
Net income attributable to common shareholders	$	25,562		$	23,428		$	2,134		9.1	%	$	13,025
Diluted earnings per common share		0.55			0.51			0.04		7.8			0.28
Loan and lease production		1,648,711			1,526,592			122,119		8.0			1,757,856
Total loans and leases		11,915,511			11,364,846			550,665		4.8			10,191,868
Total assets		14,665,902			13,831,208			834,694		6.0			12,607,346
Total deposits		13,290,723			12,594,790			695,933		5.5			11,400,547

(1) Total revenue consists of net interest income and total noninterest income.

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company's plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration ("SBA") rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status 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; 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; 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; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of 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; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; 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; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and available at the SEC's Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (NYSE:LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank.

Contacts:

Live Oak Bancshares, Inc.

Quarterly Statements of Income (unaudited)

(Dollars in thousands, except per share data)

	Three Months Ended															3Q 2025 Change vs.
	3Q 2025			2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2025		3Q 2024
Interest income																%		%
Loans and fees on loans	$	211,599		$	204,513		$	195,616		$	194,821		$	192,170		3.5		10.1
Investment securities, taxable		12,175			11,648			11,089			10,490			9,750		4.5		24.9
Other interest earning assets		7,654			8,123			6,400			7,257			7,016		(5.8	)	9.1
Total interest income		231,428			224,284			213,105			212,568			208,936		3.2		10.8
Interest expense
Deposits		114,266			113,380			110,888			113,357			110,174		0.8		3.7
Borrowings		1,677			1,683			1,685			1,737			1,762		(0.4	)	(4.8	)
Total interest expense		115,943			115,063			112,573			115,094			111,936		0.8		3.6
Net interest income		115,485			109,221			100,532			97,474			97,000		5.7		19.1
Provision for credit losses		22,242			23,252			28,964			33,581			34,502		(4.3	)	(35.5	)
Net interest income after provision for credit losses		93,243			85,969			71,568			63,893			62,498		8.5		49.2
Noninterest income
Loan servicing revenue		8,812			8,565			8,298			8,524			8,040		2.9		9.6
Loan servicing asset revaluation		(4,360	)		(3,057	)		(4,728	)		(2,326	)		(4,207	)	(42.6	)	(3.6	)
Net gains on sales of loans		20,868			21,641			18,648			18,356			16,646		(3.6	)	25.4
Net (loss) gain on loans accounted for under the fair value option		(350	)		1,082			(1,034	)		195			2,255		(132.3	)	(115.5	)
Equity method investments (loss) income		(1,470	)		(2,716	)		(2,239	)		(2,739	)		(1,393	)	45.9		(5.5	)
Equity security investments gains, net		18			1,004			20			12			909		(98.2	)	(98.0	)
Lease income		2,179			3,103			2,573			2,456			2,424		(29.8	)	(10.1	)
Management fee income		—			—			—			—			1,116		—		(100.0	)
Other noninterest income		4,917			4,904			4,043			6,115			7,142		0.3		(31.2	)
Total noninterest income		30,614			34,526			25,581			30,593			32,932		(11.3	)	(7.0	)
Noninterest expense
Salaries and employee benefits		52,817			49,137			48,008			45,214			44,524		7.5		18.6
Travel expense		2,480			2,576			2,795			2,628			2,344		(3.7	)	5.8
Professional services expense		1,999			2,874			3,024			2,797			3,287		(30.4	)	(39.2	)
Advertising and marketing expense		1,839			4,420			3,665			1,979			2,473		(58.4	)	(25.6	)
Occupancy expense		2,339			2,369			2,737			2,558			2,807		(1.3	)	(16.7	)
Technology expense		10,234			10,066			9,251			9,406			9,081		1.7		12.7
Equipment expense		3,320			3,685			3,745			3,769			3,472		(9.9	)	(4.4	)
Other loan origination and maintenance expense		4,777			4,190			4,585			4,812			4,872		14.0		(1.9	)
Renewable energy tax credit investment impairment		336			270			—			1,172			115		24.4		192.2
FDIC insurance		3,643			3,545			3,551			3,053			1,933		2.8		88.5
Other expense		3,501			6,161			2,656			3,869			2,681		(43.2	)	30.6
Total noninterest expense		87,285			89,293			84,017			81,257			77,589		(2.2	)	12.5
Income before taxes		36,572			31,202			13,132			13,229			17,841		17.2		105.0
Income tax expense		10,106			7,815			3,464			3,386			4,816		29.3		109.8
Net income		26,466			23,387			9,668			9,843			13,025		13.2		103.2
Net loss attributable to non-controlling interest		50			41			49			57			—		22.0		100.0
Net income attributable to Live Oak Bancshares, Inc.		26,516			23,428			9,717			9,900			13,025		13.2		103.6
Preferred stock dividends		954			—			—			—			—		100.0		100.0
Net income attributable to common shareholders	$	25,562		$	23,428		$	9,717		$	9,900		$	13,025		9.1		96.3
Earnings per common share
Basic	$	0.56		$	0.51		$	0.21		$	0.22		$	0.28		9.8		100.0
Diluted	$	0.55		$	0.51		$	0.21		$	0.22		$	0.28		7.8		96.4
Weighted average shares outstanding
Basic		45,780,794			45,634,741			45,377,965			45,224,470			45,073,482
Diluted		46,216,958			45,795,608			45,754,499			46,157,979			45,953,947

Live Oak Bancshares, Inc.

Quarterly Balance Sheets (unaudited)

(Dollars in thousands)

	As of the quarter ended															3Q 2025 Change vs.
	3Q 2025			2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2025		3Q 2024
Assets																%		%
Cash and due from banks	$	892,445		$	662,755		$	744,263		$	608,800		$	666,585		34.7		33.9
Certificates of deposit with other banks		250			250			250			250			250		—		—
Investment securities available-for-sale		1,373,219			1,325,206			1,312,680			1,248,203			1,233,466		3.6		11.3
Loans held for sale		360,693			350,791			367,955			346,002			359,977		2.8		0.2
Loans and leases held for investment ⁽¹⁾		11,554,818			11,014,055			10,693,911			10,233,374			9,831,891		4.9		17.5
Allowance for credit losses on loans and leases		(185,700	)		(182,231	)		(190,184	)		(167,516	)		(168,737	)	(1.9	)	(10.1	)
Net loans and leases		11,369,118			10,831,824			10,503,727			10,065,858			9,663,154		5.0		17.7
Premises and equipment, net		241,140			246,493			259,113			264,059			267,032		(2.2	)	(9.7	)
Foreclosed assets		11,024			6,318			2,108			1,944			8,015		74.5		37.5
Servicing assets		62,491			60,359			56,911			56,144			52,553		3.5		18.9
Other assets		355,522			347,212			348,697			352,120			356,314		2.4		(0.2	)
Total assets	$	14,665,902		$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		6.0		16.3
Liabilities and shareholders' equity
*Liabilities*
Deposits:
Noninterest-bearing	$	494,019		$	393,393		$	386,108		$	318,890		$	258,844		25.6		90.9
Interest-bearing		12,796,704			12,201,397			12,009,837			11,441,604			11,141,703		4.9		14.9
Total deposits		13,290,723			12,594,790			12,395,945			11,760,494			11,400,547		5.5		16.6
Borrowings		105,045			107,659			110,247			112,820			115,371		(2.4	)	(9.0	)
Other liabilities		67,585			61,494			58,065			66,570			83,672		9.9		(19.2	)
Total liabilities		13,463,353			12,763,943			12,564,257			11,939,884			11,599,590		5.5		16.1
*Shareholders' equity*
Preferred stock		96,266			—			—			—			—		—		—
Class A common stock (voting)		383,288			377,953			370,513			365,607			361,925		1.4		5.9
Class B common stock (non-voting)		—			—			—			—			—		—		—
Retained earnings		770,820			746,450			724,215			715,767			707,026		3.3		9.0
Accumulated other comprehensive loss		(52,151	)		(61,514	)		(67,698	)		(82,344	)		(61,195	)	15.2		14.8
Total shareholders' equity attributed to Live Oak Bancshares, Inc.		1,198,223			1,062,889			1,027,030			999,030			1,007,756		12.7		18.9
Non-controlling interest		4,326			4,376			4,417			4,466			—		(1.1	)	100.0
Total shareholders' equity		1,202,549			1,067,265			1,031,447			1,003,496			1,007,756		12.7		19.3
Total liabilities and shareholders' equity	$	14,665,902		$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		6.0		16.3

(1) Includes $280.3 million, $303.8 million, $316.8 million, $328.7 million and $343.4 million loans measured at fair value for the quarters ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.

Live Oak Bancshares, Inc.

Statements of Income (unaudited)

(Dollars in thousands, except per share data)

	Nine Months Ended
	September 30, 2025			September 30, 2024
Interest income
Loans and fees on loans	$	611,728		$	550,020
Investment securities, taxable		34,912			27,923
Other interest earning assets		22,177			21,861
Total interest income		668,817			599,804
Interest expense
Deposits		338,534			317,530
Borrowings		5,045			3,843
Total interest expense		343,579			321,373
Net interest income		325,238			278,431
Provision for credit losses		74,458			62,631
Net interest income after provision for credit losses		250,780			215,800
Noninterest income
Loan servicing revenue		25,675			23,011
Loan servicing asset revaluation		(12,145	)		(9,829	)
Net gains on sales of loans		61,157			42,543
Net (loss) gain on loans accounted for under the fair value option		(302	)		2,208
Equity method investments (loss) income		(6,425	)		(8,182	)
Equity security investments gain (losses), net		1,042			541
Lease income		7,855			7,300
Management fee income		—			7,658
Other noninterest income		13,864			27,938
Total noninterest income		90,721			93,188
Noninterest expense
Salaries and employee benefits		149,962			138,054
Travel expense		7,851			7,110
Professional services expense		7,897			8,226
Advertising and marketing expense		9,924			9,169
Occupancy expense		7,445			7,442
Technology expense		29,551			24,800
Equipment expense		10,750			10,057
Other loan origination and maintenance expense		13,552			12,442
Renewable energy tax credit investment impairment (recovery)		606			(642	)
FDIC insurance		10,739			7,782
Other expense		12,318			8,542
Total noninterest expense		260,595			232,982
Income before taxes		80,906			76,006
Income tax expense		21,385			8,432
Net income		59,521			67,574
Net loss attributable to non-controlling interest		140			—
Net income attributable to Live Oak Bancshares, Inc.		59,661			67,574
Preferred stock dividends		954			—
Net income attributable to common shareholders	$	58,707		$	67,574
Earnings per common share
Basic	$	1.29		$	1.50
Diluted	$	1.28		$	1.48
Weighted average shares outstanding
Basic		45,632,313			44,937,409
Diluted		45,956,835			45,707,245

Live Oak Bancshares, Inc.

Quarterly Selected Financial Data

(Dollars in thousands, except per share data)

	As of and for the three months ended
	3Q 2025			2Q 2025			1Q 2025			4Q 2024			3Q 2024
Income Statement Data
Net income attributable to common shareholders	$	25,562		$	23,428		$	9,717		$	9,900		$	13,025
Per Common Share
Net income, diluted	$	0.55		$	0.51		$	0.21		$	0.22		$	0.28
Dividends declared - common		0.03			0.03			0.03			0.03			0.03
Book value per common share		24.03			23.36			22.62			22.12			22.32
Tangible book value per common share ⁽¹⁾		23.96			23.29			22.55			22.05			22.24
Performance Ratios
Return on average assets (annualized)		0.72	%		0.68	%		0.30	%		0.31	%		0.43	%
Return on average common equity (annualized)		9.32			8.85			3.78			3.85			5.21
Net interest margin		3.33			3.28			3.20			3.15			3.33
Efficiency ratio ⁽¹⁾		59.74			62.12			66.62			63.45			59.72
Noninterest income to total revenue		20.95			24.02			20.28			23.89			25.35
Selected Loan Metrics
Loans and leases originated	$	1,648,711		$	1,526,592		$	1,396,223		$	1,421,118		$	1,757,856
Outstanding balance of sold loans serviced		5,563,363			5,321,284			4,949,962			4,715,895			4,452,750
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment ⁽³⁾		1.65	%		1.70	%		1.83	%		1.69	%		1.78	%
Net charge-offs⁽³⁾	$	16,816		$	31,445		$	6,774		$	33,566		$	1,710
Net charge-offs to average loans and leases held for investment ^{(2) (3)}		0.61	%		1.19	%		0.27	%		1.39	%		0.08	%

Nonperforming loans and leases at historical cost ⁽³⁾
Unguaranteed	$	76,887		$	59,555		$	99,907		$	81,412		$	49,398
Guaranteed		379,381			336,777			322,993			222,885			166,177
Total		456,268			396,332			422,900			304,297			215,575
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment ⁽³⁾		0.68	%		0.56	%		0.96	%		0.82	%		0.52	%

Nonperforming loans at fair value ⁽⁴⁾
Unguaranteed	$	6,775		$	8,873		$	9,938		$	9,115		$	8,672
Guaranteed		54,887			60,453			58,100			54,873			49,822
Total		61,662			69,326			68,038			63,988			58,494
Unguaranteed nonperforming fair value loans to fair value loans held for investment ⁽⁴⁾		2.42	%		2.92	%		3.14	%		2.77	%		2.53	%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		10.51	%		10.67	%		10.67	%		11.04	%		11.19	%
Tier 1 leverage capital (to average assets)		8.57			7.90			8.03			8.21			8.60

Notes to Quarterly Selected Financial Data

(1)      See accompanying GAAP to Non-GAAP Reconciliation.

(2)      Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.

(3)      Loans and leases at historical cost only (excludes loans measured at fair value).

(4)      Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

Live Oak Bancshares, Inc.

Quarterly Average Balances and Net Interest Margin

(Dollars in thousands)

	Three Months Ended September 30, 2025							Three Months Ended June 30, 2025
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	701,059		$	7,654	4.33	%	$	727,715		$	8,123	4.48	%
Investment securities		1,418,810			12,175	3.40			1,408,942			11,648	3.32
Loans held for sale		396,084			8,103	8.12			381,531			8,008	8.42
Loans and leases held for investment⁽¹⁾		11,249,234			203,496	7.18			10,843,303			196,505	7.27
Total interest-earning assets		13,765,187			231,428	6.67			13,361,491			224,284	6.73
Less: Allowance for credit losses on loans and leases		(182,001	)						(186,022	)
Noninterest-earning assets		530,529							539,485
Total assets	$	14,113,715						$	13,714,954
Interest-bearing liabilities:
Interest-bearing checking	$	366,699		$	4,082	4.42	%	$	350,978		$	3,969	4.54	%
Savings		6,608,380			58,657	3.52			6,241,053			56,529	3.63
Money market accounts		131,756			84	0.25			128,757			93	0.29
Certificates of deposit		5,272,818			51,443	3.87			5,392,494			52,789	3.93
Total deposits		12,379,653			114,266	3.66			12,113,282			113,380	3.75
Borrowings		106,744			1,677	6.23			109,463			1,683	6.17
Total interest-bearing liabilities		12,486,397			115,943	3.68			12,222,745			115,063	3.78
Noninterest-bearing deposits		401,916							375,503
Noninterest-bearing liabilities		63,133							53,717
Shareholders' equity		1,157,893							1,058,572
Non-controlling interest		4,376							4,417
Total liabilities and shareholders' equity	$	14,113,715						$	13,714,954
Net interest income and interest rate spread				$	115,485	2.99	%				$	109,221	2.95	%
Net interest margin						3.33							3.28
Ratio of average interest-earning assets to average interest-bearing liabilities						110.24	%						109.32	%

(1) Average loan and lease balances include non-accruing loans and leases.

Live Oak Bancshares, Inc.

GAAP to Non-GAAP Reconciliation

(Dollars in thousands)

	As of and for the three months ended
	3Q 2025			2Q 2025			1Q 2025			4Q 2024			3Q 2024
Total shareholders' equity	$	1,202,549		$	1,067,265		$	1,031,447		$	1,003,496		$	1,007,756
Less:
Preferred stock		96,266			—			—			—			—
Non-controlling interest		4,326			—			—			—			—
Total common shareholders' equity	$	1,101,957		$	1,067,265		$	1,031,447		$	1,003,496		$	1,007,756
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,453			1,491			1,529			1,568			1,606
Tangible common shareholders' equity (a)	$	1,098,707		$	1,063,977		$	1,028,121		$	1,000,131		$	1,004,353
Shares outstanding (c)		45,855,739			45,686,081			45,589,633			45,359,425			45,151,691
Total assets	$	14,665,902		$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,453			1,491			1,529			1,568			1,606
Tangible assets (b)	$	14,662,652		$	13,827,920		$	13,592,378		$	12,940,015		$	12,603,943
Tangible common shareholders' equity to tangible assets (a/b)		7.49	%		7.69	%		7.56	%		7.73	%		7.97	%
Tangible book value per common share (a/c)	$	23.96		$	23.29		$	22.55		$	22.05		$	22.24
Efficiency ratio:
Noninterest expense (d)	$	87,285		$	89,293		$	84,017		$	81,257		$	77,589
Net interest income		115,485			109,221			100,532			97,474			97,000
Noninterest income		30,614			34,526			25,581			30,593			32,932
Total revenue (e)	$	146,099		$	143,747		$	126,113		$	128,067		$	129,932
Efficiency ratio (d/e)		59.74	%		62.12	%		66.62	%		63.45	%		59.72	%
Pre-provision net revenue (e-d)	$	58,814		$	54,454		$	42,096		$	46,810		$	52,343

This press release 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. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes 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 the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company's business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company 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.

Live Oak Bancshares, Inc. Reports Third Quarter 2025 Results