Q2 2024 Live Oak Bancshares Inc Earnings Call Transcript
Key Points
- Live Oak Bancshares Inc (LOB) reported strong EPS and PPNR on both a reported and adjusted basis.
- The company experienced healthy loan and deposit growth, with loan originations up 45% from Q1 and 14% year-over-year.
- Credit quality remains strong with low levels of charge-offs and significant reserve building.
- The company's small business banking and specialty finance units showed impressive growth, with originations up 30% and 88% year-over-year, respectively.
- Live Oak Bancshares Inc (LOB) continues to attract and retain high-quality talent and invest in innovative technology and partnerships.
- Net interest margin compressed by 5 basis points quarter-over-quarter due to increased interest expense.
- The energy and infrastructure business unit had a slow start in the first half of 2024 due to delays in loan closing timelines.
- The competitive deposit market remains challenging, impacting the ability to grow or maintain the deposit base.
- The company faces uncertainties related to macroeconomic and political impacts, including Federal Reserve rate decisions.
- Expense growth remains a concern, with the need to balance investment in growth initiatives and maintaining expense discipline.
Good morning, ladies and gentlemen, and welcome to the Q2 2024 Live Oak Bancshares earnings conference call. (Operator Instructions) This call is being recorded on Thursday, July 25, 2024.
I would now like to turn the conference over to Greg Seward, General Counsel and Chief Risk Officer. Please go ahead.
Thank you. Good morning, everyone. Welcome to Live Oak's second quarter 2024 earnings conference call. We are webcasting live over the internet, and this call is being recorded. To access the call over the internet and review the presentation materials that we will reference on the call. Please visit our website at investor.liveoakmercbank.com and go to the Events and Presentations tab for supporting materials. Our second quarter earnings release is also available on our website.
Before we get started, I'd like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual
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