- Live Oak Bancshares reported third quarter 2026 results with net interest income of US$133.01 million and net income of US$26.35 million, alongside basic earnings per share from continuing operations of US$0.52.
- The bank also recorded net charge offs of US$32.09 million for the quarter, almost double the prior year period. This puts credit quality trends and risk appetite under closer scrutiny for anyone watching the small business focused lender.
- We will look at how Live Oak Bancshares' investment narrative is affected by steady earnings alongside sharply higher quarterly net charge offs.
Scan beyond Live Oak Bancshares and stress test your approach to credit risk by comparing it with our curated set of 29 resilient stocks with low risk scores.
Live Oak Bancshares Investment Narrative Recap
To own Live Oak Bancshares, you need to be comfortable with a small business lender that leans heavily on SBA and USDA programs and on technology to keep costs in check. The recent quarter showed net interest income of US$133.01 million and net income of US$26.35 million, so the earnings engine is still functioning, even if quarterly profit per share is slightly lower than last year.
The short term swing factor now is whether credit costs settle after the US$32.09 million in net charge offs or keep pulling harder on returns. If problem loans or loss rates keep rising, that could test the thesis that Live Oak Bancshares can fund growth while holding its roughly US$85 million quarterly expense base in line.
The most relevant update for you is the Q3 2026 earnings release itself. Net interest income for the quarter came in at US$133.01 million compared with US$115.49 million a year earlier, while net income was US$26.35 million compared with US$26.52 million. Basic earnings per share from continuing operations for the period were US$0.52 compared with US$0.56 a year ago.
Across the first nine months of 2026, Live Oak Bancshares reported net interest income of US$377.75 million versus US$325.33 million for the same period in 2025, with net income of US$93.19 million compared with US$59.66 million. Those year to date figures sit alongside the US$32.09 million of Q3 net charge offs, so anyone focused on catalysts like Live Oak Express or AI driven efficiency now has to weigh them against more visible credit risk.
Live Oak Bancshares’ analyst narrative points to revenues of US$1.0b and earnings of US$280.0 million by 2029, based on a 25.5% yearly revenue growth assumption and an earnings increase of about US$148 million from US$132.3 million today.
Uncover why Live Oak Bancshares' fair value indicates a 19% potential upside to its current price, which could narrow quickly.
Exploring Other Perspectives
For Live Oak Bancshares, the most optimistic analysts were leaning hard into pre provision earnings power. Before this latest US$32.09 million in quarterly net charge offs, they were sketching out revenue near US$996.5 million and earnings around US$331.2 million by 2029. You can read that as a far more upbeat story that might shift as credit data evolves.
Explore 2 other Live Oak Bancshares fair value estimates, including one that suggests up to 128% upside from the current price.
The Verdict Is Yours
Don't just follow the ticker; dig into the data and build a conviction that's truly your own.
- 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.
- See our latest analysis for Live Oak Bancshares. The report includes 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.
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