Live Oak Bancshares, Inc. (LOB)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Live Oak Bancshares, Inc. (LOB) trades at $41.85 with AI Score 64/100 (Grade B+). Live Oak Bancshares, Inc. Market cap: $1.94B, Sector: Financial services.
Price live · AI analysis from May 10, 2026LOB stock analysis for 2026: Analysts have set a consensus price target of $41.00 for Live Oak Bancshares, Inc., suggesting 2.0% downside from the current price of $41.85. The AI MoonshotScore is 64/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
LOB: 1/1 perspectives are bullish.
How is this calculated? →Live Oak Bancshares, Inc. (LOB) Financial Services Profile
Live Oak Bancshares, Inc. is a regional bank holding company distinguished by its specialization in government-guaranteed lending programs and strategic investments in emerging financial technology firms, catering to small businesses and high-net-worth individuals with a focus on commercial and industrial loans.
What Is the Investment Thesis for LOB?
Live Oak Bancshares presents an interesting investment case centered on its specialization in government-guaranteed lending and fintech investments. The company's focus on SBA and USDA loans provides a relatively lower-risk lending portfolio compared to traditional commercial banking, supported by government guarantees. With a P/E ratio of 9.0 and a profit margin of 11.7%, Live Oak demonstrates profitability and efficiency. Growth catalysts include increasing demand for small business loans and strategic investments in promising fintech companies. However, investors may want to evaluate the potential impact of interest rate fluctuations and regulatory changes on the bank's lending activities and profitability. The company's high beta of 1.90 indicates higher volatility compared to the market.
Based on FMP financials and quantitative analysis
LOB Key Highlights
- Market capitalization of $1.94B, reflecting investor valuation of the company's assets and growth potential.
- P/E ratio of 9.0 indicates the price investors are willing to pay for each dollar of Live Oak's earnings.
- Profit margin of 11.7% demonstrates the company's ability to generate profit from its revenue.
- Gross margin of 50.1% showcases the efficiency of Live Oak's core banking operations.
- Dividend yield of 0.32% provides a small income stream for investors, supplementing potential capital appreciation.
Who Are LOB's Competitors?
LOB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BAC Bank of America Corporation | $60.02 | +0.20% | $425.90B | 85 |
| WFC Wells Fargo & Company | $87.36 | -0.10% | $267.35B | 41 |
| JPM JPMorgan Chase & Co. | $338.62 | +0.27% | $907.34B | 82 |
| MCHB Mechanics Bank | $16.24 | +0.17% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.25 | +0.22% | $80.38M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| GBOOY Grupo Financiero Banorte, S.A.B. de C.V. | $53.76 | -0.92% | $30.25B | 67 |
| BMRC Bank of Marin Bancorp | $28.46 | -0.14% | $460.76M | 64 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are LOB's Key Strengths?
- Specialization in government-guaranteed lending.
- Strategic investments in fintech companies.
- Strong relationships with government agencies.
- Experienced management team.
What Are LOB's Weaknesses?
- Concentration in specific lending sectors.
- Sensitivity to interest rate fluctuations.
- Reliance on government programs.
- Smaller scale compared to larger national banks.
What Could Drive LOB Stock Higher?
- Potential changes in government lending policies could increase demand for SBA and USDA loans.
- Strategic investments in fintech companies may lead to new revenue streams and technological advancements.
- Expansion of digital banking initiatives could attract new customers and improve efficiency.
What Are the Key Risks for LOB?
- Financial-distress signal — its Altman Z-Score of -0.68 sits in the distress zone (elevated bankruptcy risk).
- Changes in interest rates could impact the bank's net interest margin and profitability.
- Economic downturn could lead to increased loan defaults and credit losses.
- Regulatory scrutiny and compliance costs could increase operating expenses.
- Cybersecurity threats could compromise customer data and disrupt operations.
What Are the Growth Opportunities for LOB?
- Expansion of Government-Guaranteed Lending: Live Oak can further expand its market share in government-guaranteed lending programs such as SBA and USDA loans. The market for SBA 7(a) loans alone was approximately $36 billion in 2023. By leveraging its expertise and established infrastructure, Live Oak can increase its loan origination volume and generate higher fee income. This expansion can be achieved through strategic partnerships with government agencies and targeted marketing to small businesses seeking access to capital.
- Strategic Investments in Fintech Companies: Live Oak's investment advisory services to funds focused on venture capital for fintech companies present a significant growth opportunity. The fintech market is projected to reach $305 billion by 2025. By identifying and investing in promising fintech startups, Live Oak can generate substantial returns and gain access to innovative technologies that can enhance its own banking operations. These investments can also create synergies between Live Oak and the fintech companies, leading to new product offerings and revenue streams.
- Wealth and Investment Management Services: Live Oak can expand its wealth and investment management services to high-net-worth individuals and families. The global wealth management market is estimated to reach $140 trillion by 2025. By offering personalized financial planning, investment advisory, and estate planning services, Live Oak can attract affluent clients and generate recurring fee income. This expansion can be achieved through hiring experienced wealth management professionals and developing tailored investment solutions.
- Geographic Expansion: Live Oak can expand its geographic footprint by establishing new branches or acquiring existing banks in underserved markets. This expansion can increase its customer base and loan portfolio, leading to higher revenue and profitability. The company can target regions with strong economic growth and a high concentration of small businesses. Geographic expansion can also diversify Live Oak's risk profile and reduce its reliance on specific geographic areas.
- Digital Banking Initiatives: Live Oak can invest in digital banking technologies to enhance its customer experience and streamline its operations. This includes developing mobile banking apps, online loan application portals, and automated customer service platforms. By embracing digital banking, Live Oak can attract tech-savvy customers, reduce operating costs, and improve efficiency. The digital banking market is projected to reach $9 trillion by 2026, indicating a significant opportunity for Live Oak to capitalize on the digital transformation of the banking industry.
What Opportunities Does LOB Have?
- Expansion into new geographic markets.
- Development of new digital banking products.
- Increased demand for small business loans.
- Growing fintech market.
What Threats Does LOB Face?
- Changes in government regulations.
- Increased competition from larger banks.
- Economic downturn affecting loan performance.
- Cybersecurity risks.
What Are LOB's Competitive Advantages?
- Specialization in Government-Guaranteed Lending: Expertise in SBA and USDA loan programs creates a niche market with less competition.
- Strategic Investments in Fintech: Access to innovative technologies and potential synergies with portfolio companies.
- Strong Relationships: Established relationships with government agencies and small business communities.
- Experienced Management Team: Leadership with deep understanding of banking and financial services.
What Does LOB Do?
Live Oak Bancshares, Inc., incorporated in 2008 and headquartered in Wilmington, North Carolina, operates as the bank holding company for Live Oak Banking Company. The bank provides a range of commercial banking products and services tailored to individuals, small businesses, and professionals throughout the United States. Live Oak distinguishes itself through its focus on government-guaranteed lending, particularly through the SBA and USDA programs, offering specialized expertise and services in this niche. The bank accepts various deposit products, including noninterest-bearing demand accounts, interest-bearing checking accounts, money market accounts, savings accounts, and time deposits. Its loan portfolio includes commercial and industrial loans, construction and development loans, owner-occupied and non-owner-occupied commercial real estate loans, and commercial land loans. Beyond traditional banking, Live Oak provides settlement, accounting, and securitization services for government-guaranteed loans. It also offers wealth and investment management services to high-net-worth individuals and families, and investment advisory services to funds focused on venture capital investments in new and emerging financial technology companies. Live Oak operates an on-site restaurant for employees and business visitors, reflecting its commitment to employee well-being and client relations.
What Products and Services Does LOB Offer?
- Provides commercial banking products and services to individuals, small businesses, and professionals.
- Accepts various deposit products, including checking, savings, and money market accounts.
- Offers commercial and industrial loans to businesses.
- Provides construction and development loans.
- Offers commercial real estate loans for both owner-occupied and non-owner-occupied properties.
- Provides settlement, accounting, and securitization services for government-guaranteed loans.
- Offers wealth and investment management services to high-net-worth individuals and families.
- Provides investment advisory services to venture capital funds focused on fintech companies.
How Does LOB Make Money?
- Generates revenue through interest income from loans.
- Earns fees from settlement, accounting, and securitization services for government-guaranteed loans.
- Receives fees from wealth and investment management services.
- Generates income from investments in fintech companies.
What Industry Does LOB Operate In?
Live Oak Bancshares operates within the regional banking sector, which is characterized by intense competition and evolving regulatory landscapes. The industry is influenced by macroeconomic factors such as interest rates, economic growth, and regulatory policies. Live Oak differentiates itself through its specialization in government-guaranteed lending and fintech investments. The regional banking sector is experiencing consolidation, with larger banks acquiring smaller institutions to expand their market presence and service offerings. Live Oak's focus on niche markets and innovative financial solutions positions it to capitalize on growth opportunities within the broader banking industry.
Who Are LOB's Key Customers?
- Small businesses seeking commercial loans.
- Professionals requiring banking services.
- High-net-worth individuals and families seeking wealth management services.
- Fintech companies seeking venture capital investments.
FY2026 estForward Outlook
Wall Street analysts project Live Oak Bancshares, Inc. revenue of about $640.3M for fiscal 2026, with EPS near $3.07. The estimate reflects 3 contributing analysts.
LOB Valuation & Market Position
With a $1.94B market cap, Live Oak Bancshares, Inc. sits in the small-cap segment of the market. Relative to its peer group, LOB's quantitative score of 64/100 is roughly in line with the peer average of 70/100.
ROE 10%Key Financial Metrics
Return on equity for Live Oak Bancshares, Inc. stands at 10.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.8%, showing how much profit it generates from its asset base. LOB trades at a trailing price-to-earnings ratio of 8.96, below the Financial Services sector average of ~18x. Its free cash flow yield is 6.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.12 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.5%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
Live Oak Bancshares, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.68 places it in the distress zone, a signal of elevated financial risk.
Company Profile
Live Oak Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Wilmington, US. The company is led by CEO James S. Mahan. LOB has traded publicly since 2015.
LOB Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Insider buying activity has increased, suggesting confidence in the company's future performance.
- Recent community sentiment has turned positive, indicating growing interest and optimism among retail investors.
- The banking sector's resilience amid economic uncertainty has bolstered Live Oak's reputation as a stable investment.
- Innovative digital banking initiatives are gaining traction, potentially expanding customer reach and enhancing profitability.
Bear Case
- Concerns about rising interest rates may impact loan demand and profitability for Live Oak.
- Negative sentiment from some community discussions highlights worries about competition in the digital banking space.
- Recent regulatory scrutiny in the banking sector could pose challenges for operational flexibility.
- Market perception remains cautious, with some investors fearing potential economic downturns affecting loan defaults.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · February 2026
LOB Latest News
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Discover RadNet And 2 Other Stocks Estimated To Be Trading Below Intrinsic Value
Simply Wall St. · Jun 8, 2026
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Live Oak Bancshares Insider Sold Shares Worth $737,303, According to a Recent SEC Filing
MT Newswires · Jun 5, 2026
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Axos Financial and Live Oak Bancshares Shares Skyrocket, What You Need To Know
StockStory · Jun 5, 2026
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The Bancorp and Live Oak Bancshares Shares Plummet, What You Need To Know
StockStory · Jun 4, 2026
LOB Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for LOB.
Price Targets
Consensus target: $41.00
LOB MoonshotScore
What does this score mean?
The MoonshotScore rates LOB's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Discover RadNet And 2 Other Stocks Estimated To Be Trading Below Intrinsic Value
Live Oak Bancshares Insider Sold Shares Worth $737,303, According to a Recent SEC Filing
Axos Financial and Live Oak Bancshares Shares Skyrocket, What You Need To Know
The Bancorp and Live Oak Bancshares Shares Plummet, What You Need To Know
Leadership: James S. Mahan
Chief Executive Officer
James S. Mahan is the Chief Executive Officer of Live Oak Bancshares, Inc. He has extensive experience in the financial services industry, with a background in commercial lending and banking. Prior to founding Live Oak Bancshares, Mahan held leadership positions at several financial institutions, where he focused on developing and implementing strategies for growth and profitability. He is known for his expertise in government-guaranteed lending programs and his commitment to supporting small businesses. Mahan's leadership has been instrumental in establishing Live Oak as a leading provider of banking services to entrepreneurs and professionals.
Track Record: Under James Mahan's leadership, Live Oak Bancshares has grown from a startup to a publicly traded company with a market capitalization of $1.94B. He has overseen the expansion of the bank's lending operations, the development of its fintech investment strategy, and the implementation of innovative digital banking solutions. Mahan has also fostered a culture of customer service and employee engagement, contributing to Live Oak's reputation as a trusted and reliable financial partner.
Live Oak Bancshares, Inc. Financial Services Stock: Key Questions Answered
What does Live Oak Bancshares, Inc. do?
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company, providing commercial banking products and services to individuals, small businesses, and professionals across the United States. The bank specializes in government-guaranteed lending programs, such as SBA and USDA loans, offering expertise in this niche market. Additionally, Live Oak provides wealth and investment management services, as well as investment advisory services to funds focused on venture capital investments in emerging financial technology companies, positioning itself as a financial partner for entrepreneurs and innovators.
What do analysts say about LOB stock?
Analyst coverage of Live Oak Bancshares (LOB) typically focuses on the company's specialization in government-guaranteed lending and its strategic investments in fintech companies. Key valuation metrics include the P/E ratio of 9.0 and the profit margin of 11.7%. Growth considerations often revolve around the company's ability to expand its loan portfolio, capitalize on the growing fintech market, and manage interest rate risk. Analyst consensus is mixed, with some highlighting the company's growth potential and others expressing caution due to its sensitivity to economic conditions and regulatory changes. No buy or sell recommendations are made here.
What are the main risks for LOB?
Live Oak Bancshares faces several key risks, including interest rate risk, credit risk, and regulatory risk. Changes in interest rates can impact the bank's net interest margin and profitability. An economic downturn could lead to increased loan defaults and credit losses, particularly in its commercial and industrial loan portfolio. Regulatory scrutiny and compliance costs can increase operating expenses and limit the bank's ability to innovate. Additionally, cybersecurity threats pose a risk to customer data and operational stability. Effective risk management is crucial for Live Oak to mitigate these challenges and maintain its financial performance.
What are the key factors to evaluate for LOB?
Live Oak Bancshares, Inc. (LOB) holds an AI score of 64/100 (moderate). P/E: 9.0x vs the S&P 500's ~20-25x. Analysts target $41.00 (-2%). Not financial advice.
How frequently does LOB data refresh on this page?
LOB prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven LOB's recent stock price performance?
Live Oak Bancshares, Inc. (LOB) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Specialization in government-guaranteed lending. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider LOB overvalued or undervalued right now?
Live Oak Bancshares, Inc. (LOB) trades at 9.0x earnings. Analysts target $41.00 (-2%) — near fair value. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying LOB?
Before investing in Live Oak Bancshares, Inc. (LOB), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available company data and market analysis.
- Financial metrics are as of the latest available reporting period.
- Market conditions and company performance are subject to change.