The sharp increase in provision expense and credit deterioration (distillery portfolio stress, rising NPLs and charge-offs) overshadowed strong revenue growth and operating leverage improvement. Monitor the Q4 2026 earnings call for updates on the distillery portfolio and credit normalization trajectory.
Price Chart
Executive Summary
Live Oak Bancshares reported Q3 2026 GAAP diluted EPS of $0.52, missing the consensus estimate of $0.66 by 21.2%. Revenue of $175.6M beat the $171.5M consensus by 2.4%. Net interest income grew 6.1% QoQ and 15.2% YoY, but the provision for credit losses surged to $54.7M (up 112% QoQ), driven by a $17.0M charge on the stressed distillery portfolio and reserves for record loan growth. Net income attributable to common shareholders fell 30.1% QoQ and 5.1% YoY.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS of $0.52 missed consensus of $0.66 (-21.2%)
- Revenue of $175.6M beat consensus of $171.5M (+2.4%)
- Provision for credit losses of $54.7M, up 112% QoQ from $25.8M and up 145.9% YoY from $22.2M
- Provision included $17.0M decisive action on stressed distillery portfolio
- Net income attributable to common shareholders of $24.3M, down 30.1% QoQ and 5.1% YoY
- Net interest income of $133.0M, up 6.1% QoQ and 15.2% YoY
- Net interest margin of 3.30%, down 3 bps QoQ from 3.33%
- Loan production of $2.13B, up 37.8% QoQ and 29.4% YoY
- Total assets of $17.0B, up 5.8% QoQ and 15.7% YoY
- Net charge-offs of $32.1M, up from $24.2M in Q2 2026 and $16.8M in Q3 2025
- Unguaranteed nonperforming loans to loans held for investment at 1.05%, up from 1.00% QoQ and 0.68% YoY
- Common equity tier 1 capital ratio of 9.94%, down from 10.42% QoQ
- Efficiency ratio improved to 48.80% from 54.13% QoQ and 58.68% YoY
Financial Impact
EPS miss of $0.14 (-21.2%) vs consensus; provision expense surged $28.9M QoQ to $54.7M
Risk Factors
- Credit quality deterioration in the distillery portfolio may require further provisioning
- Rising unguaranteed nonperforming loans (1.05% vs 0.68% YoY) signal broader credit stress
- CET1 ratio declining (9.94% vs 10.42% QoQ) could constrain growth or dividends
- Net charge-offs annualized at 1.00% of average loans, up from 0.48% in Q4 2025
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001462120-26-000068 |
| Document: lob-20261021.htm | 0001462120-26-000068 |
| Document: 0001462120-26-000068-index-headers.html | 0001462120-26-000068 |
| Document: 0001462120-26-000068-index.html | 0001462120-26-000068 |
| Document: 0001462120-26-000068.txt | 0001462120-26-000068 |
| 8-K Data (Synthetic) | 0001462120-26-000068 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 144 | — | awaiting T+20 | — | — |
Oct 21, 2026 5d ago | 8-K | $35.71 | awaiting T+20 | — | $34.68 (+2.88%) |
Oct 21, 2026 5d ago | Press Release | $35.71 | awaiting T+20 | — | $34.68 (+2.88%) |
Oct 20, 2026 6d ago | 8-K | $35.35 | awaiting T+20 | — | $34.68 (−1.90%) |
Sep 11, 2026 6w ago | Insider Cluster | $39.40 $34.80 | ▼ −11.68% | ▼ −13.94% | $34.68 (−11.98%) |
Sep 8, 2026 6w ago | Insider Cluster | $38.90 $34.26 | ▼ −11.93% | ▼ −13.87% | $34.68 (−10.85%) |
Sep 3, 2026 7w ago | 144 | $39.56 $36.68 | ▼ −7.28% | ▼ −6.09% | $34.68 (−12.34%) |
Sep 2, 2026 7w ago | 144 | $39.51 $36.39 | ▼ −7.90% | ▼ −7.74% | $34.68 (−12.22%) |
Aug 20, 2026 9w ago | 144 | $40.73 $38.25 | ▲ +6.09% | ▲ +6.09% | $34.68 (+14.85%) |
Aug 19, 2026 9w ago | 144 | $40.89 $38.25 | ▼ −6.46% | ▼ −4.50% | $34.68 (−15.19%) |
US Market Status
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