The sharp provision increase and credit deterioration in the distillery portfolio are the key negatives. Monitor the Q4 2026 provision trajectory and any further commentary on the distillery book during the Oct 22 conference call. The strong loan production and revenue beat provide some offset, but credit costs are the dominant driver near-term.
Price Chart
Executive Summary
Live Oak Bancshares reported Q3 2026 EPS of $0.52, a 21% miss vs consensus of $0.66, driven by a sharp increase in provision for credit losses to $54.7M (up 112% QoQ) including a $17M charge on the distillery portfolio. Revenue of $175.6M beat the $171.5M consensus on strong loan production ($2.1B) and deposit growth, but the elevated provision and higher credit costs overshadowed the top-line beat.
Key Financial Metrics
Key Facts
- Q3 2026 EPS of $0.52 missed consensus of $0.66 by 21.2%
- Revenue of $175.6M exceeded consensus of $171.5M, up 12.5% QoQ and 23.4% YoY
- Provision for credit losses surged to $54.7M from $25.8M in Q2 2026 and $22.2M in Q3 2025, including a $17.0M charge on the stressed distillery portfolio
- Net income attributable to common shareholders fell 30.1% QoQ to $24.3M
- Loan production hit a record $2.1B, up 37.8% QoQ
- Net interest margin narrowed 3 bps to 3.30% from 3.33% in Q2 2026
- Nonperforming unguaranteed loans (historical cost) rose to 1.05% of loans held for investment from 1.00% in Q2 2026
- Net charge-offs increased to $32.1M (1.00% annualized) from $24.2M (0.80%) in Q2 2026
Financial Impact
EPS miss of $0.14 vs consensus; provision expense increased $28.9M QoQ to $54.7M; net income down $10.4M QoQ
Risk Factors
- Further credit deterioration in the distillery portfolio or other SBA lending segments
- Continued elevated provision expense compressing earnings despite revenue growth
- Net interest margin compression if deposit costs continue to rise
- Rising nonperforming loans could pressure capital ratios (CET1 fell to 9.94% from 10.42% QoQ)
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3385917 |
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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