Press Releases

<< Back
Printer Friendly Version View printer-friendly version
Live Oak Bancshares, Inc. Reports Third Quarter 2016 Results

WILMINGTON, N.C., Oct. 26, 2016 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (Nasdaq:LOB) (“Live Oak” or “the Company”) today reported third quarter net earnings available to common shareholders of $3.5 million, or $0.10 per diluted share, compared to $2.9 million, or $0.09 per diluted share, for the third quarter of 2015.  The third quarter of 2016 included $3.4 million, or $0.06 per diluted share, in stock based compensation expense related to restricted stock awards with an effective grant date of May 24, 2016, for key employee retention, as discussed in Note 10 of our March 31, 2016 Form 10-Q.

“Live Oak continues on its growth mission to provide needed credit to small business owners across the country.  Loan production volume was again at record levels in the third quarter.  We have generated over $1 billion in loans in the first nine months of this year with continued future growth anticipated from newly established lines of business.  We are on track to meet our expectation of $1.5 billion in origination volume for the full year and are hard at work to provide a complete digital banking experience for our customers.  Our strategic repositioning designed to enhance levels of net interest income has started to deliver results,” said James S. Mahan, III, Chief Executive Officer of Live Oak.

Third Quarter 2016 Key Measures

(Dollars in thousands)       Increase (Decrease)    
  Q3 2016   Q3 2015   Dollars   Percent   Q2 2016
Loan production:                  
Loans originated $ 381,050     $ 302,962     $ 78,088     26 %   $ 356,865  
% Fully funded 36.1 %   42.4 %     n/a     n/a     40.2 %
Loan sales:                  
Guaranteed loans sold $ 210,610     $ 147,377     $ 63,233     43 %   $ 135,555  
Net gains on sales of loans 21,833     15,424     6,409     42     14,555  
Average net gain on sale of loans, per million sold 103.67     104.66     (0.99 )   (1 )   107.37  
Net interest income and servicing revenues 17,491     10,847     6,644     61     14,998  
Net income attributable to Live Oak Bancshares, Inc. 3,479     2,901     578     20     123  
Diluted earnings per share 0.10     0.09     0.01     11     0.00  
Non-GAAP net income (1) 5,498     2,901     2,597     90     3,883  
Non-GAAP diluted earnings per share (1) 0.16     0.09     0.07     78     0.11  
 
(1) See accompanying GAAP to Non-GAAP Reconciliation.
 

Net Interest Income

Net interest income for the third quarter of 2016 increased to $11.6 million compared to $6.6 million for the third quarter of 2015. The increase was driven by the significant growth in the combined held for sale and held for investment loan portfolios attributable to steadily rising loan originations, in part due to the Company's efforts to grow recurring revenue sources by increasing the level of loans on the balance sheet.  Another positive factor was a higher net interest margin which rose from 3.11% for the third quarter of 2015 to 3.32% for the third quarter of 2016, reflecting higher loan rates.  The increase from the second quarter 2016 margin of 3.26% was principally due to a rising yield on interest earning assets combined with slightly lower funding costs in money market funds.

Provision for Loan Losses

The provision for loan losses for the third quarter of 2016 increased to $3.8 million compared to $3.5 million for the second quarter of 2016 and $1.2 million for the third quarter of 2015. Net charge-offs (recoveries) were $937 thousand in the third quarter of 2016 compared to ($240) thousand in the second quarter of 2016 and $243 thousand in the third quarter of 2015.  Net charge-offs as a percentage of average held for investment loans, annualized, for the quarters ended September 31, 2016 and 2015 were 0.51% and 0.40%, respectively.  The increase in net charge-offs contributed to the higher level of provision for the quarter and was largely attributable to a single problem credit that is in workout status. Net charge-offs for the first nine months of 2016 totaled $929 thousand as compared to $594 thousand for the first nine months of 2015. The higher provision in the third quarter also reflects the continued strong growth in the loan portfolio which contributed to the increase in the allowance for loan losses.

Noninterest Income

Noninterest income for the third quarter of 2016 totaled $25.4 million, compared to $17.8 million for the third quarter of 2015.  Net gains on sales of loans increased to $21.8 million in the third quarter of 2016 compared to $14.6 million in the second quarter of 2016 and $15.4 million in the third quarter of 2015 due to a much higher volume of loan sales. Loan servicing revenues rose by $1.6 million from the third quarter of 2015 to $5.9 million.

Noninterest Expense

Noninterest expense for the third quarter of 2016 was $27.2 million compared to $25.1 million for the second quarter of 2016 and$18.1 million for the third quarter of 2015. Salaries and employee benefits increased to $17.5 million from $9.9 million for the third quarter of 2015 as a result of increased staffing and developing infrastructure to support growing loan demand and multiple new initiatives of the Company, along with $3.4 million in stock based compensation expense related to restricted stock awards with an effective grant date of May 24, 2016 for key employee retention, as discussed in Note 10 of our March 31, 2016 Form 10-Q.  Future expense associated with these restricted stock awards is expected to be $3.4 million in the fourth quarter of 2016, with subsequent quarterly expense declining to approximately $346 thousand through the end of the implied term.  Total stock based compensation expense in the third quarter of 2016 was $4.1 million compared to $2.9 million for the second quarter of 2016 and $498 thousand for the third quarter of 2015.

Loans and Asset Quality

Net loans held for investment increased $73.6 million, or 10.9%, to $751.8 million at September 30, 2016, from $678.2 million at June 30, 2016. Loans held for sale increased $16.1 million, or 4.9%, to $345.3 million at September 30, 2016, from $329.2 million at June 30, 2016. The increase in both portfolios is the result of growth in loan origination activities.  The combined total loan portfolio at September 30, 2016 and June 30, 2016, of $1.11 billion and $1.02 billion, respectively, were comprised of approximately 66.3% and 64.9% of unguaranteed loans, respectively.  The combined total loan portfolio of $1.11 billion at September 30, 2016, rose by 58.1% above its level of a year ago.

Average loans were $1.09 billion during the third quarter of 2016 compared to $939.1 million during the second quarter of 2016.

The allowance for loan losses increased $2.9 million, or 23.3%, to $15.2 million at September 30, 2016, from $12.3 million at June 30, 2016.  The increase in the allowance for loan losses was largely attributable to continued growth in the loan portfolio combined with the effects of charge-off experience, as discussed above.  The allowance for loan losses as a percentage of total loans held for investment increased from 1.78% at June 30, 2016 to 1.98% at September 30, 2016.

The unguaranteed exposure of nonperforming loans amounted to $3.4 million at September 30, 2016, compared to $2.2 million at June 30, 2016.  Total nonperforming loans increased to $14.0 million from $12.9 million at the end of the prior quarter.  Total unguaranteed nonperforming loans as a percentage of total held for investment loans was 0.44% and 0.31% as of September 30, 2016, and June 30, 2016, respectively.

Foreclosed assets decreased $736 thousand to $2.2 million at September 30, 2016, from June 30, 2016.

Deposits

Total deposits increased by $262.2 million, or 23.0%, to $1.40 billion at September 30, 2016, compared to $1.14 billion at June 30, 2016, following successful deposit gathering campaigns.  Average total interest bearing deposits for the third quarter of 2016 increased $156.6 million, or 14.5%, to $1.24 billion, compared to $1.08 billion for the second quarter of 2016. The ratio of average total loans to average interest bearing deposits was 87.7% for the third quarter of 2016, compared to 86.7% for the second quarter of 2016.

Conference Call

Live Oak will host a conference call to discuss third quarter results at 9:00 a.m. ET tomorrow morning (October 27, 2016). Media representatives, analysts and the public are invited to listen to this discussion by calling (844) 743-2494 (domestic) or (661) 378-9528 (international) with conference ID 94419161. A live webcast of the conference call along with presentation materials referenced during the conference call will be available on the Investor Relations page of the Company’s website at http://investor.liveoakbank.com. A replay of the webcast will be archived on the Company's website for one year.  A replay of the conference call will also be available until 5:00 p.m. ET November 3, 2016, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international).

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; 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; 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; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; 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. (Nasdaq:LOB) is a financial holding company and the parent company of Live Oak Banking Company, a national online platform for small business lending.

Live Oak Bancshares, Inc.
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)

  Three months ended
  3Q 2016   2Q 2016   1Q 2016   4Q 2015   3Q 2015
Interest income                  
Loans and fees on loans $ 14,961     $ 12,902     $ 11,005     $ 10,474     $ 8,728  
Investment securities, taxable 337     252     251     224     211  
Other interest earning assets 264     248     138     80     84  
Total interest income 15,562     13,402     11,394     10,778     9,023  
Interest expense                  
Deposits 3,689     3,243     2,444     2,105     1,997  
Borrowings 242     242     241     203     395  
Total interest expense 3,931     3,485     2,685     2,308     2,392  
Net interest income 11,631     9,917     8,709     8,470     6,631  
Provision for loan losses 3,806     3,453     1,433     1,467     1,212  
Net interest income after provision for loan losses 7,825     6,464     7,276     7,003     5,419  
Noninterest income                  
Loan servicing revenue 5,860     5,081     4,784     4,404     4,216  
Loan servicing asset revaluation (3,421 )   (1,604 )   (26 )   (1,996 )   (2,650 )
Net gains on sales of loans 21,833     14,555     16,425     20,781     15,424  
Gain on sale of securities available-for-sale 1             1     12  
Construction supervision fee income 502     667     630     745     344  
Other noninterest income 657     649     619     433     424  
Total noninterest income 25,432     19,348     22,432     24,368     17,770  
Noninterest expense                  
Salaries and employee benefits 17,471     15,411     12,993     12,700     9,949  
Travel expense 2,218     2,330     1,846     1,465     2,200  
Professional services expense 907     910     528     752     493  
Advertising and marketing expense 1,097     1,365     963     1,156     1,051  
Occupancy expense 1,058     1,055     1,193     1,555     703  
Data processing expense 1,252     1,404     1,208     1,195     773  
Equipment expense 611     534     551     646     642  
Other loan origination and maintenance expense 806     621     574     685     673  
Other expense 1,798     1,502     1,855     1,979     1,579  
Total noninterest expense 27,218     25,132     21,711     22,133     18,063  
Income before taxes 6,039     680     7,997     9,238     5,126  
Income tax expense 2,561     557     3,314     3,523     2,228  
Net income 3,478     123     4,683     5,715     2,898  
Net loss attributable to noncontrolling interest 1         8     1     3  
Net income attributable to Live Oak Bancshares, Inc. $ 3,479     $ 123     $ 4,691     $ 5,716     $ 2,901  
Earnings per share                  
Basic $ 0.10     $ 0.00     $ 0.14     $ 0.17     $ 0.09  
Diluted $ 0.10     $ 0.00     $ 0.13     $ 0.16     $ 0.09  
Weighted average shares outstanding                  
Basic 34,206,943     34,189,217     34,176,753     34,169,855     32,824,587  
Diluted 35,001,817     35,206,125     34,954,592     35,079,486     33,917,282  
                             

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)

  As of the quarter ended
  3Q 2016   2Q 2016   1Q 2016   4Q 2015   3Q 2015
Assets                  
Cash and due from banks $ 355,485     $ 175,506     $ 226,556     $ 102,607     $ 129,881  
Certificates of deposit with other banks 7,500     8,500     9,000     10,250     10,000  
Investment securities available-for-sale 70,334     66,804     55,674     53,762     51,628  
Loans held for sale 345,277     329,206     537,293     480,619     443,871  
Loans held for investment 766,977     690,517     313,633     279,969     259,552  
Allowance for loan losses (15,178 )   (12,309 )   (8,616 )   (7,415 )   (6,153 )
Net loans 751,799     678,208     305,017     272,554     253,399  
Premises and equipment, net 60,646     61,064     61,839     62,653     62,641  
Foreclosed assets 2,235     2,971     3,020     2,666     1,258  
Servicing assets 49,729     48,454     47,377     44,230     40,590  
Other assets 26,735     24,591     22,765     23,281     19,498  
Total assets $ 1,669,740     $ 1,395,304     $ 1,268,541     $ 1,052,622     $ 1,012,766  
Liabilities and Shareholders’ Equity                  
Liabilities                  
Deposits:                  
Noninterest-bearing $ 28,461     $ 22,942     $ 21,125     $ 21,502     $ 20,420  
Interest-bearing 1,374,556     1,117,855     994,340     783,286     742,208  
Total deposits 1,403,017     1,140,797     1,015,465     804,788     762,628  
Long term borrowings 28,074     28,173     28,271     28,375     42,079  
Other liabilities 24,497     18,984     20,372     19,971     13,963  
Total liabilities 1,455,588     1,187,954     1,064,108     853,134     818,670  
Shareholders’ equity                  
Non-cumulative perpetual preferred stock (Series A), no shares authorized, issued or outstanding at September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, 6,800 shares authorized, issued and outstanding for September 30, 2015                  
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding                  
Class A common stock (voting) 145,284     141,181     138,199     137,492     136,852  
Class B common stock (non-voting) 50,015     50,015     50,015     50,015     50,015  
Retained earnings 18,723     15,928     16,147     12,140     7,108  
Accumulated other comprehensive income (loss) 130     201     47     (192 )   87  
Total shareholders’ equity attributed to Live Oak Bancshares, Inc. 214,152     207,325     204,408     199,455     194,062  
Noncontrolling interest     25     25     33     34  
Total equity 214,152     207,350     204,433     199,488     194,096  
Total liabilities and shareholders’ equity $ 1,669,740     $ 1,395,304     $ 1,268,541     $ 1,052,622     $ 1,012,766  
                                       

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)

  As of and for the three months ended
  3Q 2016   2Q 2016   1Q 2016   4Q 2015   3Q 2015
Income Statement Data                  
Net income attributable to Live Oak Bancshares, Inc. $ 3,479     $ 123     $ 4,691     $ 5,716     $ 2,901  
Per Common Share                  
Net income, basic $ 0.10     $ 0.00     $ 0.14     $ 0.17     $ 0.09  
Net income, diluted 0.10     0.00     0.13     0.16     0.09  
Dividends declared 0.02     0.01     0.02     0.01     0.01  
Book value 6.26     6.06     5.98     5.84     5.68  
Tangible book value (1) 6.26     6.06     5.98     5.84     5.68  
Performance Ratios                  
Return on average assets (annualized) 0.91 %   0.04 %   1.67 %   2.18 %   1.19 %
Return on average equity (annualized) 6.54     0.24     9.38     11.60     7.15  
Net interest margin 3.32     3.26     3.52     3.66     3.11  
Efficiency ratio (1) 73.44     85.88     69.72     67.40     74.06  
Noninterest income to total revenue 68.62     66.11     72.03     74.21     72.81  
Selected Loan Metrics                  
Loans originated $ 381,050     $ 356,865     $ 284,530     $ 330,798     $ 302,962  
Guaranteed loans sold 210,610     135,555     155,643     219,328     147,377  
Average net gain on sale of loans 103.67     107.37     105.53     94.75     104.66  
Held for sale guaranteed loans (note amount) (2) 692,278     639,356     541,595     497,875     499,303  
Quarterly increase (decrease) in note amount of held for sale guaranteed loans 52,922     97,761     42,292     (1,428 )   68,071  
Estimated net gain to be recognized on quarterly increase in guaranteed loans held for sale (3) 5,486     10,497     4,463       N/A     7,124  
Asset Quality Ratios                  
Allowance for loan losses to loans held for investment 1.98 %   1.78 %   2.75 %   2.65 %   2.37 %
Net charge-offs (recoveries) to average loans held for investment (4) 0.51     (0.18 )   0.30     0.30     0.40  
Nonperforming loans $ 14,023     $ 12,902     $ 14,829     $ 12,367     $ 18,384  
Foreclosed assets 2,235     2,971     3,020     2,666     1,258  
Nonperforming loans (unguaranteed exposure) 3,354     2,174     2,421     2,037     2,562  
Foreclosed assets (unguaranteed exposure) 304     433     438     373     48  
Nonperforming loans not guaranteed by the SBA and foreclosures 3,658     2,607     2,859     2,410     2,610  
Nonperforming loans and foreclosures, not guaranteed by the SBA, to total assets 0.22 %   0.19 %   0.23 %   0.23 %   0.26 %
Capital Ratios                                      
Common equity tier 1 capital (to risk-weighted assets) 16.63 %   18.26 %   20.61 %   23.22 %   24.40 %
Total capital (to risk-weighted assets) 17.88     19.43     21.54     24.12     25.21  
Tier 1 risk based capital (to risk-weighted assets) 16.63     18.26     20.61     23.22     24.40  
Tier 1 leverage capital (to average assets) 13.18     14.32     17.09     18.36     19.07  
                             

Notes to Quarterly Selected Financial Data

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

(2) Includes the entire note amount, including undisbursed funds for the multi-advance loans.

(3) The estimated revenue from the sale of the quarterly increase in guaranteed loans is based on the average net gain on sale of loans for that quarter.

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

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)

    Three months ended September 30, 2016   Three months ended June 30, 2016
    Average
Balance
   Interest   Average
Yield/Rate
  Average
Balance
   Interest   Average
Yield/Rate
Interest earning assets:                        
Interest earning balances in other banks   $ 231,238     $ 264     0.45 %   $ 224,838     $ 248     0.44 %
Investment securities   69,869     337     1.91     56,261     252     1.80  
Loans held for sale   358,867     4,996     5.52     398,087     5,527     5.57  
Loans held for investment (1)   728,041     9,965     5.43     540,988     7,375     5.47  
Total interest earning assets   1,388,015     15,562     4.45     1,220,174     13,402     4.41  
Less: allowance for loan losses   (12,188 )           (8,792 )        
Non-interest earning assets   146,159             145,343          
Total assets   $ 1,521,986             $ 1,356,725          
                         
Interest bearing liabilities:                        
Money market accounts   $ 471,447     $ 866     0.73 %   $ 412,592     $ 797     0.77 %
Certificates of deposit   767,887     2,823     1.46     670,144     2,446     1.46  
Total interest bearing deposits   1,239,334     3,689     1.18     1,082,736     3,243     1.20  
Other borrowings   28,172     242     3.41     28,270     242     3.43  
Total interest bearing liabilities   1,267,506     3,931     1.23     1,111,006     3,485     1.26  
Non-interest bearing deposits   20,742             19,311          
Non-interest bearing liabilities   20,807             18,518          
Shareholders' equity   212,914             207,865          
Noncontrolling interest   17             25          
Total liabilities and shareholders' equity   $ 1,521,986             $ 1,356,725          
                         
Net interest income and interest rate spread       $ 11,631     3.22 %       $ 9,917     3.15 %
                         
Net interest margin           3.32             3.26  
                         
Ratio of average interest-earning assets to average interest-bearing liabilities           109.51 %           109.83 %
                             

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

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)

  As of and for the three months ended
  3Q 2016   2Q 2016   1Q 2016   4Q 2015   3Q 2015
Total shareholders’ equity $ 214,152     $ 207,350     $ 204,433     $ 199,488     $ 194,096  
Less:                  
Goodwill                  
Other intangible assets                 103  
Tangible shareholders’ equity (a) $ 214,152     $ 207,350     $ 204,433     $ 199,488     $ 193,993  
Shares outstanding (c) 34,215,050     34,192,382     34,183,878     34,172,899     34,167,500  
Total assets $ 1,669,740     $ 1,395,304     $ 1,268,541     $ 1,052,622     $ 1,012,766  
Less:                  
Goodwill                  
Other intangible assets                 103  
Tangible assets (b) $ 1,669,740     $ 1,395,304     $ 1,268,541     $ 1,052,622     $ 1,012,663  
Tangible shareholders’ equity to tangible assets (a/b) 12.83 %   14.86 %   16.12 %   18.95 %   19.16 %
Tangible book value per share (a/c) $ 6.26     $ 6.06     $ 5.98     $ 5.84     $ 5.68  
Efficiency ratio:                  
Noninterest expense (d) $ 27,218     $ 25,132     $ 21,711     $ 22,133     $ 18,063  
Net interest income 11,631     9,917     8,709     8,470     6,631  
Noninterest income 25,432     19,348     22,432     24,368     17,770  
Less: gain on sale of securities 1             1     12  
Adjusted operating revenue (e) $ 37,062     $ 29,265     $ 31,141     $ 32,837     $ 24,389  
Efficiency ratio (d/e) 73.44 %   85.88 %   69.72 %   67.40 %   74.06 %
                             

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation (Continued)
(Dollars in thousands)

  Three months ended   Nine months ended
  9/30/2016   6/30/2016   9/30/2015   9/30/2016   9/30/2015
Reconciliation of net income to non-GAAP net income for non-routine income and expenses:                  
Net income attributable to Live Oak Bancshares, Inc. $ 3,479     $ 123     $ 2,901     $ 8,293     $ 14,910  
Gain on sale of investment in non-consolidated affiliate                 (3,782 )
Provision for loans reclassified as held for investment     4,023         4,023      
Stock based compensation expense for restricted stock awards with an effective grant date of May 24, 2016, as discussed in Note 10 of our March 31, 2016 Form 10-Q 3,365     2,243         5,608      
Income tax effects and adjustments for non-GAAP items * (1,346 )   (2,506 )       (3,852 )   1,513  
Non-GAAP net income $ 5,498     $ 3,883     $ 2,901     $ 14,072     $ 12,641  
* Estimated at 40.0%                  
Non-GAAP earnings per share:                  
Basic $ 0.16     $ 0.11     $ 0.09     $ 0.41     $ 0.42  
Diluted $ 0.16     $ 0.11     $ 0.09     $ 0.40     $ 0.41  
                   
Weighted-average shares outstanding:                  
Basic 34,206,943     34,189,217     32,824,587     34,191,014     30,037,436  
Diluted 35,001,817     35,206,125     33,917,282     35,217,704     30,930,230  
                   
Reconciliation of financial statement line items as reported to adjusted for non-routine income and expenses:                  
Noninterest income, as reported $ 25,432     $ 19,348     $ 17,770     $ 67,212     $ 59,960  
Gain on sale of investment in non-consolidated affiliate                 (3,782 )
Noninterest income, as adjusted 25,432     19,348     17,770     67,212     56,178  
                   
Provision for loan losses, as reported 3,806     3,453     1,212     8,692     2,339  
Provision for loans reclassified as held for investment     (4,023 )       (4,023 )    
Provision for loan losses, as adjusted 3,806     (570 )   1,212     4,669     2,339  
                   
Noninterest expense, as reported 27,218     25,132     18,063     74,061     49,581  
Stock based compensation expense (3,365 )   (2,243 )       (5,608 )    
Noninterest expense, as adjusted 23,853     22,889     18,063     68,453     49,581  
                   
Income tax expense, as reported 2,561     557     2,228     6,432     10,272  
Income tax effects and adjustments for non-recurring income and expenses 1,346     2,506         3,852     (1,513 )
Income tax expense, as adjusted $ 3,907     $ 3,063     $ 2,228     $ 10,284     $ 8,759  
                                       

This press release presents the non-GAAP financial measures previously shown. The adjustments to reconcile from the applicable GAAP financial measure to the non-GAAP financial measures 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.

 

Contacts:
Brett Caines | CFO | Investor Relations | 910.796.1645
Micah Davis | Marketing Director | Media Relations | 910.550.2255

Primary Logo

Live Oak Bancshares
Print Page  | E-mail Page  | RSS  | E-mail Alerts