LOB
Financial ServicesLive Oak Bancshares, Inc. · Banks - Regional · $2B
What is Live Oak Bancshares, Inc.?
Live Oak Bancshares is a small-cap bank holding company focused on serving small businesses, professionals, and individuals across the United States. Its banking subsidiary, Live Oak Banking Company, combines commercial lending with government-guaranteed loan services.
Live Oak generates revenue primarily through commercial lending — including industrial loans, construction financing, and commercial real estate — alongside a range of deposit products. The company also provides settlement, accounting, and securitization services for government-guaranteed loans, and offers wealth management to high-net-worth clients. An investment advisory arm channels venture capital into emerging financial technology companies, giving Live Oak a broader footprint than a typical community bank.
Incorporated in 2008 and headquartered in Wilmington, North Carolina, Live Oak Bancshares began trading publicly in 2015.
- Commercial and industrial loans for small businesses
- Government-guaranteed loan settlement and securitization services
- Owner-occupied and non-owner-occupied commercial real estate loans
- Wealth and investment management for high-net-worth individuals
- Venture capital advisory focused on fintech companies
Is LOB a Good Stock to Buy?
UQS Score rates LOB as Good overall, reflecting a balanced but nuanced profile across its five pillars.
The Risk pillar stands out as a relative bright spot, suggesting the bank maintains a measured approach to credit and operational exposure. Valuation is rated Attractive, meaning the stock may offer reasonable entry pricing relative to its fundamentals — a notable characteristic in the current banking environment.
The Moat pillar registers as Weak, indicating limited structural competitive advantages compared to larger or more specialized peers. Quality and Growth both sit at Neutral, pointing to a business that is stable but not yet demonstrating standout earnings power or expansion momentum.
Pro members can view the complete pillar breakdown and underlying financial metrics to form a more complete picture. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does LOB pay dividends?
Yes — Live Oak Bancshares, Inc. pays a dividend.
Live Oak Bancshares pays a regular dividend, which is relatively uncommon among growth-oriented community banks. The dividend reflects a degree of capital discipline and signals confidence in recurring earnings. Income-focused investors may appreciate the payout, though the primary business model centers on lending growth rather than yield maximization.
When does LOB report earnings?
Live Oak Bancshares reports earnings on a quarterly cadence, consistent with standard practice for US-listed bank holding companies.
Loan portfolio performance and net interest margin trends are the key metrics to watch each quarter. As a small-cap lender with government-guaranteed loan exposure, results can shift with interest rate conditions and credit demand from small business borrowers.
For the most recent quarter's results and guidance, visit Live Oak Bancshares' investor relations page directly.
LOB Price History
-38.9% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Live Oak Bancshares, Inc.?
Based on Live Oak Bancshares, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
LOB Long-term Outlook
With Growth and Quality both rated Neutral, Live Oak's near-term trajectory appears steady rather than accelerating. The Attractive Valuation label suggests the market may not be fully pricing in potential upside from the bank's fintech-adjacent activities and government-loan servicing capabilities. The Good Risk rating provides some confidence that the balance sheet is managed conservatively, which matters in a rate-sensitive lending environment.
Growth drivers
- Expansion of government-guaranteed small business lending
- Growing demand for fintech-focused venture capital advisory services
- Wealth management services targeting high-net-worth client growth
Key risks
- Interest rate sensitivity affecting net interest margin
- Weak Moat rating signals vulnerability to competition from larger banks and digital lenders
- Concentration in small business credit, which can deteriorate in economic downturns
LOB vs Peers
Live Oak Bancshares operates in a competitive small-cap banking space alongside regional and community lenders with distinct strategic profiles.
A Canadian chartered bank with a broader retail and commercial footprint, operating under a different regulatory and currency environment than Live Oak.
A Midwest-focused community bank with a diversified revenue mix including insurance and investment services alongside traditional lending.
An Indiana-based community bank known for specialty finance niches such as aircraft and fleet vehicle lending, differentiating it from Live Oak's small business focus.
Frequently Asked Questions
What does Live Oak Bancshares do?
Live Oak Bancshares is the holding company for Live Oak Banking Company, which provides commercial loans, deposit products, and government-guaranteed loan services primarily to small businesses and professionals across the United States. It also offers wealth management and fintech-focused venture capital advisory services.
Does LOB pay dividends?
Yes, Live Oak Bancshares pays a regular dividend. This is relatively uncommon among smaller growth-oriented banks and reflects a degree of earnings stability. Investors seeking income alongside capital appreciation may find this noteworthy, though dividend levels can change based on business conditions.
When does LOB report earnings?
Live Oak Bancshares follows a standard quarterly earnings schedule. Exact dates vary each quarter, so investors should check the company's investor relations page or a financial calendar for the most current reporting schedule.
Is LOB a good stock to buy?
UQS Score rates LOB as Good overall. The Attractive Valuation and Good Risk labels are positive signals, while the Weak Moat and Neutral Quality ratings suggest the business has room to strengthen its competitive position. The full pillar breakdown is available to Pro members for a deeper view.
Is LOB overvalued?
Based on the UQS Valuation pillar, LOB is currently rated Attractive, suggesting the stock is not considered expensive relative to its fundamentals. However, valuation is just one of five pillars — investors should weigh it alongside the Moat and Quality ratings before drawing conclusions.
How does LOB compare to its competitors?
Live Oak Bancshares differentiates itself through its focus on government-guaranteed small business lending and its fintech venture capital advisory arm — areas where peers like German American Bancorp and 1st Source Corporation have less emphasis. The UQS competitor comparison tool shows relative pillar ratings side by side for Pro members.
What is LOB's market cap bracket?
Live Oak Bancshares is classified as a small-cap company. This places it in a segment of the market that can offer growth potential but also carries higher volatility and liquidity risk compared to large- or mega-cap financial institutions.
Who founded Live Oak Bancshares?
Live Oak Bancshares was incorporated in 2008 and is headquartered in Wilmington, North Carolina. Founding details are widely available through the company's public filings and investor relations materials for those seeking the full history.
Is LOB a long-term quality investment?
As a long-term quality indicator, LOB's Good UQS Score reflects a stable but not exceptional profile. The Good Risk rating is encouraging for long-term holders, but the Weak Moat suggests the bank has not yet built the durable competitive advantages that typically support sustained outperformance over many years.
What is the main competitive advantage of Live Oak Bancshares?
Live Oak's most distinctive edge lies in its specialization in government-guaranteed lending for small businesses and its early positioning in fintech venture capital advisory — areas that larger traditional banks have been slower to develop. However, the UQS Moat pillar rates this advantage as Weak, indicating it remains fragile relative to sector peers.
What sector does LOB belong to?
Live Oak Bancshares operates in the Financial Services sector, specifically within the community and commercial banking industry. Investors can explore other [financial sector stocks](/sector/financial-services) on UQS Score to compare quality ratings across the space.
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Pro Analysis
LOB — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 7, 2026 | 54.4 | 43.8 | 27.0 | 54.9 | 72.7 | 98.8 | 0.0 |
| May 3, 2026 | 54.4 | 43.8 | 27.0 | 54.9 | 72.7 | 98.9 | 0.0 |
| Apr 19, 2026 | 54.4 | 43.8 | 27.0 | 54.9 | 72.7 | 98.8 | -0.2 |
| Apr 18, 2026 | 54.6 | 44.4 | 27.0 | 54.9 | 72.7 | 99.0 | +0.1 |
| Apr 14, 2026 | 54.5 | 44.4 | 27.0 | 54.9 | 72.7 | 98.8 | -0.1 |
| Apr 12, 2026 | 54.6 | 44.4 | 27.0 | 54.9 | 72.7 | 98.9 | 0.0 |
| Apr 11, 2026 | 54.6 | 44.4 | 27.0 | 54.9 | 72.7 | 99.4 | 0.0 |
| Apr 10, 2026 | 54.6 | 44.1 | 27.0 | 54.9 | 72.7 | 99.4 | -0.1 |
| Apr 9, 2026 | 54.7 | 44.5 | 27.0 | 54.9 | 72.7 | 99.4 | -0.1 |
| Apr 7, 2026 | 54.8 | 45.1 | 27.0 | 54.9 | 72.7 | 99.4 | -0.1 |
LOB — Pillar Breakdown
Quality
— 58.5/100 (25%)Live Oak Bancshares, Inc. shows solid profitability with healthy returns on capital and reasonable margins.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 54.9/100 (20%)Live Oak Bancshares, Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 36.4/100 (15%)Live Oak Bancshares, Inc. has some risk factors including moderate leverage or solvency concerns.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 98.9/100 (15%)Live Oak Bancshares, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 27/100 (25%)Live Oak Bancshares, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for LOB.
Score Composition
Financial Data
More Stock Analysis
How is the LOB UQS Score Calculated?
The UQS (Unified Quality Score) for Live Oak Bancshares, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Live Oak Bancshares, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Live Oak Bancshares, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.