• Live Oak Bancshares reported past full-year 2025 results showing net interest income of US$448.36 million and net income of US$105.87 million, with earnings per share rising from the prior year as net charge-offs in the fourth quarter fell to US$13.74 million from US$33.57 million.
• Management pointed to record loan production, strong deposit growth, and expanding small-dollar SBA lending and technology investments as key drivers of this improved performance and operational efficiency.
• Next, we’ll examine how record loan production and deposit growth shape Live Oak Bancshares’ investment narrative in light of these results.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

What Is Live Oak Bancshares' Investment Narrative?

For Live Oak Bancshares, the core investment story still comes down to whether you believe in its digital-first small business banking model, supported by record loan production and strong deposit growth. The latest full-year 2025 results, including higher net interest income and net income, along with lower fourth quarter net charge-offs, reinforce that thesis rather than change it. Beating revenue and EPS expectations, plus the share price pop around TD Cowen’s positive initiation, suggest the market is starting to price in that momentum, so near-term catalysts now skew more toward continued loan and deposit growth and further efficiency gains from technology and AI investments. At the same time, credit quality and the bank’s relatively high level of bad loans remain front and center as key risks, even with the recent improvement in charge-offs.

However, investors should be aware that credit quality trends could look quite different if conditions shift. Live Oak Bancshares' shares have been on the rise but are still potentially undervalued by 29%. Find out what it's worth.

Exploring Other Perspectives

The Simply Wall St Community’s two fair value views, spanning roughly US$42 to about US$55.67, show how far apart individual expectations can be. Against that backdrop, the recent earnings beat and improving charge-offs give you more concrete data to weigh alongside these differing opinions when thinking about Live Oak Bancshares’ future performance.

Explore 2 other fair value estimates on Live Oak Bancshares - why the stock might be worth just $42.00!

Build Your Own Live Oak Bancshares Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Live Oak Bancshares research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Live Oak Bancshares research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Live Oak Bancshares' overall financial health at a glance.

Seeking Other Investments?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• AI is about to change healthcare. These 109 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.