“Live Oak closed 2021 with one of our strongest quarters in the Company’s history,” said Live Oak Chairman and CEO
Year over Year Highlights
(Dollars in thousands, except per share data) | Increase (Decrease) | |||||||||||||||
2021 | 2020 | Dollars | Percent | |||||||||||||
Total revenue (1) | $ | 456,985 | $ | 280,723 | $ | 176,262 | 63 | % | ||||||||
Total noninterest expense | 230,987 | 192,676 | 38,311 | 20 | ||||||||||||
Income before taxes | 210,788 | 47,389 | 163,399 | 345 | ||||||||||||
Effective tax rate | 20.8 | % | (25.6 | )% | n/a | n/a | ||||||||||
Net income | $ | 166,995 | $ | 59,543 | $ | 107,452 | 180 | % | ||||||||
Diluted earnings per share | 3.71 | 1.43 | 2.28 | 159 | ||||||||||||
Loan and lease production: | ||||||||||||||||
Loans and leases originated | $ | 4,480,725 | $ | 4,450,198 | $ | 30,527 | 1 | % | ||||||||
% Fully funded | 64.5 | % | 78.6 | % | n/a | n/a | ||||||||||
Loans and leases originated, excluding PPP loans | $ | 3,933,207 | $ | 2,687,542 | $ | 1,245,665 | 46 | % | ||||||||
Total loans and leases: | 6,637,781 | 6,320,400 | 317,381 | 5 | ||||||||||||
Total loans and leases, excluding PPP loans: | 6,375,903 | 4,821,783 | 1,554,120 | 32 | ||||||||||||
Total assets: | 8,213,393 | 7,872,303 | 341,090 | 4 | ||||||||||||
Total deposits: | 7,112,044 | 5,712,828 | 1,399,216 | 24 |
Fourth Quarter 2021
(Dollars in thousands, except per share data) | Increase (Decrease) | |||||||||||||||||||
Q4 2021 | Q3 2021 | Dollars | Percent | Q4 2020 | ||||||||||||||||
Total revenue (1) | $ | 111,394 | $ | 103,011 | $ | 8,383 | 8 | % | $ | 73,104 | ||||||||||
Total noninterest expense | 59,698 | 55,459 | 4,239 | 8 | 52,435 | |||||||||||||||
Income before taxes | 47,778 | 43,233 | 4,545 | 11 | 12,035 | |||||||||||||||
Effective tax rate | 36.9 | % | 21.7 | % | n/a | n/a | (145.8 | )% | ||||||||||||
Net income | $ | 30,147 | $ | 33,839 | $ | (3,692 | ) | (11 | )% | $ | 29,588 | |||||||||
Diluted earnings per share | 0.66 | 0.76 | (0.10 | ) | (13 | ) | 0.68 | |||||||||||||
Loan and lease production: | ||||||||||||||||||||
Loans and leases originated | $ | 1,083,623 | $ | 1,063,190 | $ | 20,433 | 2 | % | $ | 808,010 | ||||||||||
% Fully funded | 54.1 | % | 55.1 | % | n/a | n/a | 55.6 | % |
(1) Total revenue consists of net interest income and total noninterest income.
Loans and Leases
At
The total loan and lease portfolio of
Loan and lease originations totaled
Deposits
Total deposits increased to
The increase in total deposits from the prior quarter provides support for the growth in the loan and lease portfolio and origination activities during the fourth quarter of 2021. Average total interest-bearing deposits for the fourth quarter of 2021 increased
Borrowings
Borrowings totaled
Net Interest Income
Net interest income for the fourth quarter of 2021 was
The increase for the fourth quarter of 2021 compared to the fourth quarter of 2020 was driven by significant growth in the total loan and lease portfolio, excluding PPP loans. The increase in net interest income comparing these two periods was also driven by the reduction in the average rate on interest-bearing liabilities from 1.13% for the fourth quarter of 2020 to 0.79% for the fourth quarter of 2021.
The net interest margin increased from the third quarter of 2021 by three basis points, from 3.99% to 4.02%. The yield on interest earning assets for the fourth quarter of 2021 increased one basis point compared to the third quarter of 2021. The increase in asset yield was further enhanced by a one basis point reduction in the average cost of interest-bearing liabilities from 0.80% for the quarter ended
Noninterest Income
Noninterest income for the fourth quarter of 2021 increased to
The largest driver of the increase in noninterest income for the fourth quarter of 2021 arose from equity method investment income which increased
The loan servicing asset revaluation resulted in a loss of
Net gains on sales of loans increased
The net loss on loans accounted for under the fair value option totaled
Noninterest Expense
Noninterest expense for the fourth quarter of 2021 totaled
Salaries and employee benefits for the fourth quarter of 2021 increased to
Professional services expense increased to
Data processing expense for the fourth quarter of 2021 totaled
Asset Quality
During the fourth quarter of 2021, the Company recognized net charge-offs for loans carried at historical cost of
Unguaranteed nonperforming (nonaccrual) loans and leases, excluding
Provision for Loan and Lease Credit Losses
The provision for loan and lease credit losses for the fourth quarter of 2021 totaled
The allowance for credit losses on loans and leases totaled
Income Tax
Income tax expense and related effective tax rate was
The income tax benefit for the fourth quarter of 2020 was principally the product of the vesting of restricted stock unit awards with market price conditions during the fourth quarter. Upon vesting, the fair value of these awards exceeded the total compensation cost recognized by the Company for book purposes, which resulted in the recognition of a tax benefit of
Shareholders’ Equity
Total shareholders’ equity increased by
Conference Call
Live Oak will host a conference call to discuss quarterly results at
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
About
Contacts:
William C. (BJ) Losch, III | CFO | Investor Relations | 910.218.2173
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Three months ended | 4Q 2021 Change vs. | |||||||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2021 | 4Q 2020 | ||||||||||||||||||||||
Interest income | % | % | ||||||||||||||||||||||||||
Loans and fees on loans | $ | 88,577 | $ | 89,388 | $ | 84,780 | $ | 84,993 | $ | 79,166 | (0.9 | ) | 11.9 | |||||||||||||||
Investment securities, taxable | 3,455 | 3,174 | 2,975 | 2,929 | 3,345 | 8.9 | 3.3 | |||||||||||||||||||||
Other interest earning assets | 171 | 224 | 244 | 303 | 529 | (23.7 | ) | (67.7 | ) | |||||||||||||||||||
Total interest income | 92,203 | 92,786 | 87,999 | 88,225 | 83,040 | (0.6 | ) | 11.0 | ||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 13,817 | 14,159 | 14,820 | 16,944 | 19,195 | (2.4 | ) | (28.0 | ) | |||||||||||||||||||
Borrowings | 748 | 892 | 1,717 | 1,331 | 1,544 | (16.1 | ) | (51.6 | ) | |||||||||||||||||||
Total interest expense | 14,565 | 15,051 | 16,537 | 18,275 | 20,739 | (3.2 | ) | (29.8 | ) | |||||||||||||||||||
Net interest income | 77,638 | 77,735 | 71,462 | 69,950 | 62,301 | (0.1 | ) | 24.6 | ||||||||||||||||||||
Provision for (recovery of) loan and lease credit losses |
3,918 | 4,319 | 7,846 | (873 | ) | 8,634 | (9.3 | ) | (54.6 | ) | ||||||||||||||||||
Net interest income after provision for (recovery of) loan and lease credit losses |
73,720 | 73,416 | 63,616 | 70,823 | 53,667 | 0.4 | 37.4 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Loan servicing revenue | 6,289 | 6,278 | 6,218 | 6,434 | 6,684 | 0.2 | (5.9 | ) | ||||||||||||||||||||
Loan servicing asset revaluation | (4,160 | ) | (5,878 | ) | (3,181 | ) | 1,493 | (5,756 | ) | (29.2 | ) | (27.7 | ) | |||||||||||||||
Net gains on sales of loans | 20,257 | 18,860 | 16,234 | 11,929 | 14,976 | 7.4 | 35.3 | |||||||||||||||||||||
Net (loss) gain on loans accounted for under the fair value option |
(66 | ) | (1,030 | ) | 1,135 | 4,218 | (4,759 | ) | (93.6 | ) | (98.6 | ) | ||||||||||||||||
Equity method investments income (loss) | 2,969 | (1,250 | ) | (2,278 | ) | (1,157 | ) | (8,739 | ) | (337.5 | ) | (134.0 | ) | |||||||||||||||
Equity security investments gains (losses), net | 218 | 176 | 44,253 | 105 | 107 | 23.9 | 103.7 | |||||||||||||||||||||
Lease income | 2,521 | 2,527 | 2,616 | 2,599 | 2,615 | (0.2 | ) | (3.6 | ) | |||||||||||||||||||
Management fee income | 1,482 | 1,489 | 1,473 | 1,934 | 2,206 | (0.5 | ) | (32.8 | ) | |||||||||||||||||||
Other noninterest income | 4,246 | 4,104 | 3,641 | 3,502 | 3,469 | 3.5 | 22.4 | |||||||||||||||||||||
Total noninterest income | 33,756 | 25,276 | 70,111 | 31,057 | 10,803 | 33.5 | 212.5 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Salaries and employee benefits | 32,464 | 28,202 | 32,900 | 31,366 | 29,477 | 15.1 | 10.1 | |||||||||||||||||||||
Travel expense | 1,782 | 1,819 | 1,549 | 659 | 1,056 | (2.0 | ) | 68.8 | ||||||||||||||||||||
Professional services expense | 3,724 | 4,251 | 3,329 | 3,831 | 1,691 | (12.4 | ) | 120.2 | ||||||||||||||||||||
Advertising and marketing expense | 1,844 | 1,631 | 875 | 652 | 973 | 13.1 | 89.5 | |||||||||||||||||||||
Occupancy expense | 2,045 | 2,042 | 2,224 | 2,112 | 2,302 | 0.1 | (11.2 | ) | ||||||||||||||||||||
Data processing expense | 5,186 | 4,867 | 4,234 | 3,894 | 3,414 | 6.6 | 51.9 | |||||||||||||||||||||
Equipment expense | 4,644 | 4,567 | 4,385 | 4,354 | 4,002 | 1.7 | 16.0 | |||||||||||||||||||||
Other loan origination and maintenance expense | 3,406 | 3,489 | 3,307 | 3,327 | 3,173 | (2.4 | ) | 7.3 | ||||||||||||||||||||
Renewable energy tax credit investment impairment | — | 60 | — | 3,127 | — | (100.0 | ) | — | ||||||||||||||||||||
1,931 | 1,670 | 1,704 | 1,765 | 2,147 | 15.6 | (10.1 | ) | |||||||||||||||||||||
Other expense | 2,672 | 2,861 | 3,051 | 3,185 | 4,200 | (6.6 | ) | (36.4 | ) | |||||||||||||||||||
Total noninterest expense | 59,698 | 55,459 | 57,558 | 58,272 | 52,435 | 7.6 | 13.9 | |||||||||||||||||||||
Income before taxes | 47,778 | 43,233 | 76,169 | 43,608 | 12,035 | 10.5 | 297.0 | |||||||||||||||||||||
Income tax expense (benefit) | 17,631 | 9,394 | 12,587 | 4,181 | (17,553 | ) | 87.7 | (200.4 | ) | |||||||||||||||||||
Net income | $ | 30,147 | $ | 33,839 | $ | 63,582 | $ | 39,427 | $ | 29,588 | (10.9 | ) | 1.9 | |||||||||||||||
Earnings per share | ||||||||||||||||||||||||||||
Basic | $ | 0.69 | $ | 0.78 | $ | 1.48 | $ | 0.92 | $ | 0.72 | (11.5 | ) | (4.2 | ) | ||||||||||||||
Diluted | $ | 0.66 | $ | 0.76 | $ | 1.41 | $ | 0.88 | $ | 0.68 | (13.2 | ) | (2.9 | ) | ||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||||
Basic | 43,492,172 | 43,329,889 | 43,173,312 | 42,673,615 | 41,320,851 | |||||||||||||||||||||||
Diluted | 45,474,530 | 45,040,690 | 45,062,392 | 44,696,850 | 43,333,707 |
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)
As of the quarter ended | 4Q 2021 Change vs. | |||||||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2021 | 4Q 2020 | ||||||||||||||||||||||
Assets | % | % | ||||||||||||||||||||||||||
Cash and due from banks | $ | 187,203 | $ | 336,362 | $ | 428,907 | $ | 630,081 | $ | 297,167 | (44.3 | ) | (37.0 | ) | ||||||||||||||
Federal funds sold | 16,547 | 10,672 | 9,917 | 5,461 | 21,153 | 55.1 | (21.8 | ) | ||||||||||||||||||||
Certificates of deposit with other banks | 4,750 | 6,000 | 6,000 | 6,500 | 6,500 | (20.8 | ) | (26.9 | ) | |||||||||||||||||||
Investment securities available-for-sale | 906,052 | 861,377 | 817,896 | 775,177 | 750,098 | 5.2 | 20.8 | |||||||||||||||||||||
Loans held for sale (1) | 1,116,519 | 1,042,756 | 1,064,911 | 1,076,741 | 1,175,470 | 7.1 | (5.0 | ) | ||||||||||||||||||||
Loans and leases held for investment (2) | 5,521,262 | 5,418,611 | 5,441,423 | 5,456,754 | 5,144,930 | 1.9 | 7.3 | |||||||||||||||||||||
Allowance for credit losses on loans and leases | (63,584 | ) | (59,681 | ) | (57,848 | ) | (52,417 | ) | (52,306 | ) | 6.5 | 21.6 | ||||||||||||||||
Net loans and leases | 5,457,678 | 5,358,930 | 5,383,575 | 5,404,337 | 5,092,624 | 1.8 | 7.2 | |||||||||||||||||||||
Premises and equipment, net | 240,196 | 244,212 | 249,069 | 253,774 | 259,267 | (1.6 | ) | (7.4 | ) | |||||||||||||||||||
Foreclosed assets | 620 | 883 | 1,793 | 4,185 | 4,155 | (29.8 | ) | (85.1 | ) | |||||||||||||||||||
Servicing assets | 33,574 | 33,968 | 36,966 | 37,744 | 33,918 | (1.2 | ) | (1.0 | ) | |||||||||||||||||||
Other assets | 250,254 | 242,181 | 244,152 | 223,875 | 231,951 | 3.3 | 7.9 | |||||||||||||||||||||
Total assets | $ | 8,213,393 | $ | 8,137,341 | $ | 8,243,186 | $ | 8,417,875 | $ | 7,872,303 | 0.9 | 4.3 | ||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Noninterest-bearing | $ | 89,279 | $ | 77,026 | $ | 89,768 | $ | 75,794 | $ | 75,287 | 15.9 | 18.6 | ||||||||||||||||
Interest-bearing | 7,022,765 | 6,739,587 | 6,431,065 | 6,240,210 | 5,637,541 | 4.2 | 24.6 | |||||||||||||||||||||
Total deposits | 7,112,044 | 6,816,613 | 6,520,833 | 6,316,004 | 5,712,828 | 4.3 | 24.5 | |||||||||||||||||||||
Borrowings | 318,289 | 575,021 | 1,012,431 | 1,465,961 | 1,542,093 | (44.6 | ) | (79.4 | ) | |||||||||||||||||||
Other liabilities | 67,927 | 56,284 | 52,575 | 45,550 | 49,532 | 20.7 | 37.1 | |||||||||||||||||||||
Total liabilities | 7,498,260 | 7,447,918 | 7,585,839 | 7,827,515 | 7,304,453 | 0.7 | 2.7 | |||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding |
— | — | — | — | — | — | — | |||||||||||||||||||||
Class A common stock (voting) | 310,970 | 304,085 | 299,809 | 298,525 | 298,890 | 2.3 | 4.0 | |||||||||||||||||||||
Class B common stock (non-voting) | 1,324 | 5,404 | 5,404 | 7,330 | 11,729 | (75.5 | ) | (88.7 | ) | |||||||||||||||||||
Retained earnings | 400,893 | 371,869 | 339,011 | 275,377 | 235,724 | 7.8 | 70.1 | |||||||||||||||||||||
Accumulated other comprehensive income | 1,946 | 8,065 | 13,123 | 9,128 | 21,507 | (75.9 | ) | (91.0 | ) | |||||||||||||||||||
Total shareholders' equity | 715,133 | 689,423 | 657,347 | 590,360 | 567,850 | 3.7 | 25.9 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,213,393 | $ | 8,137,341 | $ | 8,243,186 | $ | 8,417,875 | $ | 7,872,303 | 0.9 | 4.3 |
(1) Includes
(2) Includes
Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Twelve months ended | ||||||||
Interest income | ||||||||
Loans and fees on loans | $ | 347,738 | $ | 270,770 | ||||
Investment securities, taxable | 12,533 | 15,016 | ||||||
Other interest earning assets | 942 | 2,622 | ||||||
Total interest income | 361,213 | 288,408 | ||||||
Interest expense | ||||||||
Deposits | 59,740 | 89,726 | ||||||
Borrowings | 4,688 | 3,959 | ||||||
Total interest expense | 64,428 | 93,685 | ||||||
Net interest income | 296,785 | 194,723 | ||||||
Provision for loan and lease credit losses | 15,210 | 40,658 | ||||||
Net interest income after provision for loan and lease credit losses |
281,575 | 154,065 | ||||||
Noninterest income | ||||||||
Loan servicing revenue | 25,219 | 26,600 | ||||||
Loan servicing asset revaluation | (11,726 | ) | (9,958 | ) | ||||
Net gains on sales of loans | 67,280 | 49,473 | ||||||
Net gain (loss) on loans accounted for under the fair value option |
4,257 | (13,083 | ) | |||||
Equity method investments income (loss) | (1,716 | ) | (14,691 | ) | ||||
Equity security investments gains (losses), net | 44,752 | 14,909 | ||||||
Gain on sale of investment securities available-for-sale, net | — | 1,880 | ||||||
Lease income | 10,263 | 10,508 | ||||||
Management fee income | 6,378 | 6,352 | ||||||
Other noninterest income | 15,493 | 14,010 | ||||||
Total noninterest income | 160,200 | 86,000 | ||||||
Noninterest expense | ||||||||
Salaries and employee benefits | 124,932 | 112,525 | ||||||
Travel expense | 5,809 | 3,451 | ||||||
Professional services expense | 15,135 | 6,359 | ||||||
Advertising and marketing expense | 5,002 | 3,510 | ||||||
Occupancy expense | 8,423 | 8,757 | ||||||
Data processing expense | 18,181 | 12,344 | ||||||
Equipment expense | 17,950 | 17,603 | ||||||
Other loan origination and maintenance expense | 13,529 | 10,790 | ||||||
Renewable energy tax credit investment impairment | 3,187 | — | ||||||
7,070 | 7,473 | |||||||
Other expense | 11,769 | 9,864 | ||||||
Total noninterest expense | 230,987 | 192,676 | ||||||
Income before taxes | 210,788 | 47,389 | ||||||
Income tax expense (benefit) | 43,793 | (12,154 | ) | |||||
Net income | $ | 166,995 | $ | 59,543 | ||||
Earnings per share | ||||||||
Basic | $ | 3.87 | $ | 1.46 | ||||
Diluted | $ | 3.71 | $ | 1.43 | ||||
Weighted average shares outstanding | ||||||||
Basic | 43,169,935 | 40,677,496 | ||||||
Diluted | 45,071,304 | 41,771,250 |
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)
As of and for the three months ended | ||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | ||||||||||||||||
Income Statement Data | ||||||||||||||||||||
Net income | $ | 30,147 | $ | 33,839 | $ | 63,582 | $ | 39,427 | $ | 29,588 | ||||||||||
Per Common Share | ||||||||||||||||||||
Net income, diluted | $ | 0.66 | $ | 0.76 | $ | 1.41 | $ | 0.88 | $ | 0.68 | ||||||||||
Dividends declared | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | |||||||||||||||
Book value | 16.39 | 15.89 | 15.19 | 13.74 | 13.38 | |||||||||||||||
Tangible book value (1) | 16.31 | 15.80 | 15.10 | 13.65 | 13.28 | |||||||||||||||
Performance Ratios | ||||||||||||||||||||
Return on average assets (annualized) | 1.47 | % | 1.64 | % | 3.01 | % | 1.98 | % | 1.49 | % | ||||||||||
Return on average equity (annualized) | 16.80 | 19.67 | 41.30 | 26.89 | 19.86 | |||||||||||||||
Net interest margin | 4.02 | 3.99 | 3.63 | 3.81 | 3.33 | |||||||||||||||
Efficiency ratio (1) | 53.59 | 53.84 | 40.66 | 57.69 | 71.73 | |||||||||||||||
Noninterest income to total revenue | 30.30 | 24.54 | 49.52 | 30.75 | 14.78 | |||||||||||||||
Selected Loan Metrics | ||||||||||||||||||||
Loans and leases originated | $ | 1,083,623 | $ | 1,063,190 | $ | 1,153,693 | $ | 1,180,219 | $ | 808,010 | ||||||||||
Outstanding balance of sold loans serviced | 3,298,828 | 3,212,271 | 3,134,068 | 3,216,727 | 3,205,623 | |||||||||||||||
Asset Quality Ratios | ||||||||||||||||||||
Allowance for credit losses to loans and leases held for investment (3) |
1.30 | % | 1.26 | % | 1.23 | % | 1.12 | % | 1.21 | % | ||||||||||
Net charge-offs (3) | $ | 15 | $ | 2,485 | $ | 2,417 | $ | (984 | ) | $ | 537 | |||||||||
Net charge-offs to average loans and leases held for investment (2) (3) |
— | % | 0.21 | % | 0.21 | % | (0.09 | )% | 0.05 | % | ||||||||||
Nonperforming loans and leases at historical cost (3) (4) | ||||||||||||||||||||
Unguaranteed | $ | 15,987 | $ | 20,450 | $ | 22,458 | $ | 24,738 | $ | 20,078 | ||||||||||
Guaranteed | 26,546 | 28,888 | 25,551 | 32,633 | 26,032 | |||||||||||||||
Total | 42,533 | 49,338 | 48,009 | 57,371 | 46,110 | |||||||||||||||
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3) (4) |
0.33 | % | 0.43 | % | 0.48 | % | 0.53 | % | 0.46 | % | ||||||||||
Nonperforming loans at fair value (5) | ||||||||||||||||||||
Unguaranteed | $ | 4,791 | $ | 6,303 | $ | 5,503 | $ | 5,838 | $ | 5,387 | ||||||||||
Guaranteed | 33,471 | 36,708 | 34,323 | 34,396 | 30,112 | |||||||||||||||
Total | 38,262 | 43,011 | 39,826 | 40,234 | 35,499 | |||||||||||||||
Unguaranteed nonperforming fair value loans to loans held for investment (5) |
0.74 | % | 0.90 | % | 0.74 | % | 0.74 | % | 0.66 | % | ||||||||||
Capital Ratios | ||||||||||||||||||||
Common equity tier 1 capital (to risk-weighted assets) | 12.38 | % | 12.56 | % | 12.45 | % | 12.16 | % | 12.15 | % | ||||||||||
Tier 1 leverage capital (to average assets) | 8.87 | 8.82 | 8.70 | 8.50 | 8.40 |
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) The quarter ended
(5) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)
Three months ended |
Three months ended |
|||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Interest earning balances in other banks | $ | 331,077 | $ | 168 | 0.20 | % | $ | 452,830 | $ | 221 | 0.19 | % | ||||||||||||
Federal funds sold | 8,515 | 3 | 0.14 | 9,260 | 3 | 0.13 | ||||||||||||||||||
Investment securities | 879,138 | 3,455 | 1.56 | 808,697 | 3,174 | 1.56 | ||||||||||||||||||
Loans held for sale | 1,059,672 | 14,661 | 5.49 | 1,098,940 | 15,090 | 5.45 | ||||||||||||||||||
Loans and leases held for investment (1) | 5,391,283 | 73,916 | 5.44 | 5,366,088 | 74,298 | 5.49 | ||||||||||||||||||
Total interest earning assets | 7,669,685 | 92,203 | 4.77 | 7,735,815 | 92,786 | 4.76 | ||||||||||||||||||
Less: allowance for credit losses on loans and leases |
(59,088 | ) | (56,411 | ) | ||||||||||||||||||||
Non-interest earning assets | 569,493 | 581,771 | ||||||||||||||||||||||
Total assets | $ | 8,180,090 | $ | 8,261,175 | ||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||
Interest bearing checking | $ | — | $ | — | — | % | $ | — | $ | — | — | % | ||||||||||||
Savings | 3,470,813 | 4,487 | 0.51 | 3,367,168 | 4,359 | 0.51 | ||||||||||||||||||
Money market accounts | 97,230 | 61 | 0.25 | 104,576 | 74 | 0.28 | ||||||||||||||||||
Certificates of deposit | 3,337,399 | 9,269 | 1.10 | 3,156,834 | 9,726 | 1.22 | ||||||||||||||||||
Total interest bearing deposits | 6,905,442 | 13,817 | 0.79 | 6,628,578 | 14,159 | 0.85 | ||||||||||||||||||
Borrowings | 427,044 | 748 | 0.69 | 818,511 | 892 | 0.43 | ||||||||||||||||||
Total interest bearing liabilities | 7,332,486 | 14,565 | 0.79 | 7,447,089 | 15,051 | 0.80 | ||||||||||||||||||
Non-interest bearing deposits | 79,479 | 79,006 | ||||||||||||||||||||||
Non-interest bearing liabilities | 50,190 | 46,907 | ||||||||||||||||||||||
Shareholders' equity | 717,935 | 688,173 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 8,180,090 | $ | 8,261,175 | ||||||||||||||||||||
Net interest income and interest rate spread | $ | 77,638 | 3.98 | % | $ | 77,735 | 3.96 | % | ||||||||||||||||
Net interest margin | 4.02 | 3.99 | ||||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
104.60 | % | 103.88 | % |
(1) Average loan and lease balances include non-accruing loans.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)
As of and for the three months ended | ||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | ||||||||||||||||
Total shareholders’ equity | $ | 715,133 | $ | 689,423 | $ | 657,347 | $ | 590,360 | $ | 567,850 | ||||||||||
Less: | ||||||||||||||||||||
1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||||
Other intangible assets | 2,026 | 2,065 | 2,103 | 2,141 | 2,179 | |||||||||||||||
Tangible shareholders’ equity (a) | $ | 711,310 | $ | 685,561 | $ | 653,447 | $ | 586,422 | $ | 563,874 | ||||||||||
Shares outstanding (c) | 43,619,070 | 43,381,014 | 43,264,460 | 42,951,344 | 42,452,446 | |||||||||||||||
Total assets | $ | 8,213,393 | $ | 8,137,341 | $ | 8,243,186 | $ | 8,417,875 | $ | 7,872,303 | ||||||||||
Less: | ||||||||||||||||||||
1,797 | 1,797 | 1,797 | 1,797 | 1,797 | ||||||||||||||||
Other intangible assets | 2,026 | 2,065 | 2,103 | 2,141 | 2,179 | |||||||||||||||
Tangible assets (b) | $ | 8,209,570 | $ | 8,133,479 | $ | 8,239,286 | $ | 8,413,937 | $ | 7,868,327 | ||||||||||
Tangible shareholders’ equity to tangible assets (a/b) |
8.66 | % | 8.43 | % | 7.93 | % | 6.97 | % | 7.17 | % | ||||||||||
Tangible book value per share (a/c) | $ | 16.31 | $ | 15.80 | $ | 15.10 | $ | 13.65 | $ | 13.28 | ||||||||||
Efficiency ratio: | ||||||||||||||||||||
Noninterest expense (d) | $ | 59,698 | $ | 55,459 | $ | 57,558 | $ | 58,272 | $ | 52,435 | ||||||||||
Net interest income | 77,638 | 77,735 | 71,462 | 69,950 | 62,301 | |||||||||||||||
Noninterest income | 33,756 | 25,276 | 70,111 | 31,057 | 10,803 | |||||||||||||||
Less: gain on sale of securities | — | — | — | — | — | |||||||||||||||
Adjusted operating revenue (e) | $ | 111,394 | $ | 103,011 | $ | 141,573 | $ | 101,007 | $ | 73,104 | ||||||||||
Efficiency ratio (d/e) | 53.59 | % | 53.84 | % | 40.66 | % | 57.69 | % | 71.73 | % |
GAAP to Non-GAAP Reconciliation (Continued)
(Dollars in thousands)
Three months ended | Twelve months ended | |||||||||||||||||||
4Q 2021 | 3Q 2021 | 4Q 2020 | 4Q 2021 | 4Q 2020 | ||||||||||||||||
Reconciliation of net income to non-GAAP net income: | ||||||||||||||||||||
Net income | $ | 30,147 | $ | 33,839 | $ | 29,588 | $ | 166,995 | $ | 59,543 | ||||||||||
Loss (gain) on sale of aircraft | — | — | 6 | (114 | ) | 6 | ||||||||||||||
Impairment on aircraft held for sale | — | — | 244 | — | 1,263 | |||||||||||||||
Income tax effects and adjustments for non-GAAP items * |
— | — | (60 | ) | 27 | (305 | ) | |||||||||||||
Non-GAAP net income | $ | 30,147 | $ | 33,839 | $ | 29,778 | $ | 166,908 | $ | 60,507 | ||||||||||
* Estimated at 24.0% | ||||||||||||||||||||
Non-GAAP earnings per share: | ||||||||||||||||||||
Basic | $ | 0.69 | $ | 0.78 | $ | 0.72 | $ | 3.87 | $ | 1.49 | ||||||||||
Diluted | $ | 0.66 | $ | 0.76 | $ | 0.69 | $ | 3.70 | $ | 1.45 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 43,492,172 | 43,329,889 | 41,320,851 | 43,169,935 | 40,677,496 | |||||||||||||||
Diluted | 45,474,530 | 45,040,690 | 43,333,707 | 45,071,304 | 41,771,250 | |||||||||||||||
Reconciliation of financial statement line items as reported to non-GAAP: |
||||||||||||||||||||
Noninterest income, as reported | $ | 33,756 | $ | 25,276 | $ | 10,803 | $ | 160,200 | $ | 86,000 | ||||||||||
Gain on sale of aircraft | — | — | — | (114 | ) | — | ||||||||||||||
Noninterest income, non-GAAP | $ | 33,756 | $ | 25,276 | $ | 10,803 | $ | 160,086 | $ | 86,000 | ||||||||||
Noninterest expense, as reported | $ | 59,698 | $ | 55,459 | $ | 52,435 | $ | 230,987 | $ | 192,676 | ||||||||||
Loss on sale of aircraft | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Impairment on aircraft held for sale | — | — | (244 | ) | — | (1,263 | ) | |||||||||||||
Noninterest expense, non-GAAP | $ | 59,698 | $ | 55,459 | $ | 52,185 | $ | 230,987 | $ | 191,407 | ||||||||||
Income before taxes, as reported | $ | 47,778 | $ | 43,233 | $ | 12,035 | $ | 210,788 | $ | 47,389 | ||||||||||
Loss (gain) on sale of aircraft | — | — | 6 | (114 | ) | 6 | ||||||||||||||
Impairment on aircraft held for sale | — | — | 244 | — | 1,263 | |||||||||||||||
Income before taxes, non-GAAP | $ | 47,778 | $ | 43,233 | $ | 12,285 | $ | 210,674 | $ | 48,658 | ||||||||||
Income tax expense (benefit), as reported | $ | 17,631 | $ | 9,394 | $ | (17,553 | ) | $ | 43,793 | $ | (12,154 | ) | ||||||||
Income tax effects and adjustments for non-GAAP items |
— | — | 60 | (27 | ) | 305 | ||||||||||||||
Income tax expense (benefit), non-GAAP | $ | 17,631 | $ | 9,394 | $ | (17,493 | ) | $ | 43,766 | $ | (11,849 | ) |
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.

Source: Live Oak Bancshares, Inc.