Live Oak Bancshares declares dividends on common and preferred shares

Live Oak Bancshares, Inc. (NYSE:LOB), a $1.57 billion market cap financial institution with an impressive 11-year track record of consistent dividend payments, announced Tuesday that its board of directors has declared a cash dividend of $0.03 per share for its Voting Common Stock. The company also declared a cash dividend of $0.23845 per depositary share for its 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock.

Both dividends are scheduled to be paid on September 15, 2025, to shareholders of record as of September 2, 2025. The bank, which currently maintains a "GOOD" financial health score according to InvestingPro analysis, offers a dividend yield of 0.35%. Discover more insights and 6 additional ProTips about LOB with an InvestingPro subscription.

This information is based on a statement from the company’s press release included in a filing with the Securities and Exchange Commission.

In other recent news, Live Oak Bancshares announced that its subsidiary, Live Oak Banking Company, anticipates a pre-tax gain between $20 million and $25 million following the acquisition of Apiture by Computer Services Inc. This development is part of a merger agreement where Apiture will become a wholly owned subsidiary of CSI, with Live Oak Banking Company receiving a portion of the merger consideration. Additionally, Keefe, Bruyette & Woods upgraded Live Oak Bancshares from Market Perform to Outperform, citing several positive catalysts expected to drive the bank’s shares higher through 2025.

In a move to strengthen its leadership, Live Oak Bancshares appointed Jeffrey W. Lunsford to its board of directors, bringing his extensive technology leadership experience to the company. The company also announced the pricing of an underwritten offering of 4,000,000 depositary shares, each representing a 1/40th ownership interest in a share of 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. These shares are priced with a liquidation preference of $25 per share, with dividends payable at an annual rate of 8.375%, beginning in September 2025, if declared by the board.

Furthermore, Raymond (NSE:RYMD) James reiterated its Market Perform rating on Live Oak Bancshares, following the bank’s second-quarter results that surpassed forecasts. Despite the strong financial performance, Raymond James expressed concerns about the broader economy’s impact on Live Oak’s SBA (LON:SBA) loan portfolio, noting elevated losses but also improvements in nonaccruals and stable past due balances.

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