Q3 2024 Live Oak Bancshares Inc Earnings Call Transcript
Key Points
- Live Oak Bancshares Inc (LOB) reported strong PPNR growth on both a reported and adjusted basis, with an 18% increase from the previous quarter and 22% year-over-year.
- The company achieved record loan production, with loan originations reaching approximately $1.8 billion, marking a 50% increase over the previous high.
- Loan and deposit growth were robust, with loan balances up 7% quarter-over-quarter and 16% year-over-year, and deposit growth of 7% quarter-over-quarter and 14% year-over-year.
- The company's net interest margin expanded by five basis points to 3.33%, driven by loan growth and disciplined pricing on new loan originations.
- Live Oak Bancshares Inc (LOB) is seeing strong momentum in building fuller relationships with customers, with the percentage of customers having both a loan and a deposit account tripling to approximately 12% since the beginning of the year.
- The company experienced elevated provisions, with about 40% attributed to impairments on three specific loans in the conventional lending side.
- There was an increase in unguaranteed classified loans, rising to 240 basis points, partly due to the aforementioned impairments.
- The company anticipates near-term net interest margin compression due to the timing of the Federal Reserve's rate cuts and the repricing of liabilities.
- Despite strong loan production, the company faces challenges in maintaining its growth trajectory amidst a competitive and uncertain rate environment.
- The credit performance showed some stress, with $73 million or 109 basis points of loans over 30 days past due, although this was reduced to $56 million or 84 basis points by the time of the call.
Good morning, ladies and gentlemen and welcome to the Q 3 2024 Live Oak Bank shares earnings conference call at this time lines are in listen-only mode. Following the presentation, we will conduct a question and answer session if at any time during this call or need assistance, please press star zero for the operator. This call is being recorded on Thursday, October 24th 2024. I would now like to turn the conference over to Greg Seward General Counsel and Chief Risk Officer. Please go ahead.
Thank you and good morning everyone. Welcome to Live Oak's third quarter 2024 earnings conference call. We're 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 liveoakbank.com and go to the events and presentations tab supporting materials.
Our third quarter earnings release is also available on our website before we get
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
