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NEW YORK - Live Oak Bancshares, Inc. (NYSE:LOB) reported first quarter 2025 earnings that fell short of analyst expectations, sending shares down 6.4% in after-hours trading.
The bank holding company posted adjusted earnings per share of $0.21, missing the analyst consensus of $0.38 by $0.17. Revenue came in at $126.11 million, below estimates of $131.45 million and down from the same quarter last year.
Despite the earnings miss, Live Oak reported record first quarter loan production of $1.40 billion and strong deposit growth of $635.5 million. Total (EPA:TTEF) assets grew 5.0% to $13.60 billion. Net interest income increased 3.1% quarter-over-quarter, while net interest margin expanded 5 basis points to 3.20%.
The company recorded a provision for credit losses of $29.0 million, citing loan growth and challenges facing small business borrowers amid high interest rates and inflation.
"Live Oak Bank demonstrated strong growth across our lending and deposit franchises in the first quarter, all while navigating the current small business credit cycle and a backdrop of economic uncertainty," said Live Oak Chairman and CEO James S. (Chip) Mahan III.
Management highlighted positive momentum in non-interest bearing deposit growth and small dollar loan production as key initiatives for the quarter. However, pre-provision net revenue declined 10% due to lower revenue and higher noninterest expenses.
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