Live Oak Bancshares Reports Q4 and Yearly Net Income
On January 22, 2025, Live Oak Bancshares, Inc. (LOB) announced its financial results for the fourth quarter and the full year ended December 31, 2024. The company reported a net income attributable to the Company of $9.9 million, which translates to $0.22 per diluted share.
Fourth Quarter Financial Performance
Live Oak’s fourth-quarter revenue was $135.7 million, a 12% increase compared to the same period last year. The net interest income grew by 14% year over year, reaching $78.2 million. The company’s non-interest income also increased by 5% to $57.5 million. The provision for loan losses was $2.5 million, resulting in a net interest margin of 3.85%.
Yearly Financial Performance
Live Oak’s annual revenue for 2024 was $538.5 million, a 10% increase compared to the previous year. The net interest income grew by 13% year over year, reaching $312.6 million. The non-interest income also increased by 8% to $225.9 million. The provision for loan losses was $14.6 million, resulting in a net interest margin of 3.95%.
Impact on Shareholders
The reported earnings per share (EPS) of $1.69 for the full year 2024 represents a 10% increase compared to the previous year. This growth in EPS can lead to an increase in the stock price, making it a potentially attractive investment for those looking for capital appreciation. Additionally, the company’s consistent growth in revenue, net interest income, and non-interest income demonstrates its financial stability and ability to generate profits.
Impact on the World
Live Oak Bancshares’ financial performance is significant because it reflects the overall health of the banking sector. The company’s growth in revenue, net interest income, and non-interest income indicates a robust economy with strong consumer and business spending. Furthermore, Live Oak’s ability to maintain a net interest margin above 3.9% shows that banks can still generate profits despite the low-interest-rate environment. This, in turn, can lead to increased confidence in the banking sector and the broader economy.
Conclusion
Live Oak Bancshares’ fourth-quarter and full-year financial results demonstrate the company’s continued growth and financial stability. The reported EPS of $1.69 for 2024 represents a 10% increase from the previous year, making it an attractive investment opportunity. Furthermore, the company’s robust revenue, net interest income, and non-interest income growth indicate a strong economy with healthy consumer and business spending. Overall, Live Oak Bancshares’ financial performance is a positive sign for the banking sector and the broader economy.
- Live Oak Bancshares reported a net income attributable to the Company of $9.9 million for Q4 2024, or $0.22 per diluted share.
- Annual net income attributable to the Company was $77.5 million, or $1.69 per diluted share.
- Revenue for Q4 2024 was $135.7 million, a 12% increase year over year.
- Net interest income for Q4 2024 grew by 14% year over year, reaching $78.2 million.
- Non-interest income for Q4 2024 increased by 5% to $57.5 million.
- Annual revenue for 2024 was $538.5 million, a 10% increase year over year.
- Net interest income for 2024 grew by 13% year over year, reaching $312.6 million.
- Non-interest income for 2024 increased by 8% to $225.9 million.
- The reported EPS of $1.69 for 2024 represents a 10% increase from the previous year.
- Live Oak Bancshares’ financial performance is a positive sign for the banking sector and the broader economy.
