LOB Earnings Prediction
The chart below shows how LOB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LOB sees a -1.03% change in stock price 10 days leading up to the earnings, and a +0.50% change 10 days following the report. On the earnings day itself, the stock moves by -0.26%. This data can give you a slight idea of what to expect for the next quarter's release.
LOB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
123.27M
-1.87%
6.22%
Gross Margin
--
--
--
Operating Margin
14.96%
-57.85%
-54.11%
Net Margin
10.57%
-66.64%
-54.50%
EPS
0.28
-68.18%
-52.54%
No Data Available
LOB Earnings Analysis
Live Oak Bancshares Inc Corporation (LOB.N) Earnings Conference Call
Positive
PPNR Growth Surge: PPNR growth increased by 18% on an adjusted basis compared to the previous quarter and 22% year-over-year, demonstrating strong financial performance.
Record Loan Production: Loan production reached a record high of approximately $1.8 billion in Q3 2024, surpassing the previous high watermark by 50%.
Loan Portfolio Growth: Total loan and lease portfolio exceeded $10 billion, with loan balances up 7% linked quarter and 16% year-over-year, indicating robust growth.
Deposit Growth Analysis: Deposit growth was 7% linked quarter and 14% year-over-year, driven by customer deposit platform and broker deposits, enhancing liquidity.
Net Interest Income Growth: Net interest income increased by 6% linked quarter and 9% year-over-year, supported by loan growth and a net interest margin expansion of 5 basis points.
Negative
Credit Quality Deterioration: Unguaranteed classified loans increased to 240 basis points as of Q3 2024, indicating a deterioration in credit quality, with 40% of the increase attributed to three specific relationships.
Rising Delinquency Rates: $73 million or 109 basis points of loans were over 30 days past due as of Q3 2024, reflecting a significant rise in delinquency rates compared to previous quarters.
Loan Loss Provisions Impact: The provision for loan losses included $14 million driven by three specific impairments, highlighting isolated but impactful credit issues within the portfolio.
Repricing Gap Impact: The bank's negative one-year repricing gap of approximately 19% suggests potential margin compression in the near term as liabilities reprice at lower rates than assets.
Loan Origination Decline Risks: Despite strong loan production, the expectation of a decline in loan origination levels from the record $1.8 billion in Q3 2024 to a more normalized range of $1.2 billion indicates potential future revenue challenges.
LOB FAQs
How does LOB typically perform around its earnings report dates?
Is Earnings call transcript: Live Oak Bancshares Q3 2024 misses EPS, revenue positive or negative?
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LOB Earning Call Sentiment
Earnings call transcript: Live Oak Bancshares Q3 2024 misses EPS, revenue
LOB.N
2.17%Positive
The earnings call presents a mixed picture with strong financial performance, particularly in loan production and PPNR growth, which are positive indicators. However, there are risks related to credit quality and the high interest rate environment. The Q&A reveals optimism in loan origination and embedded banking. Despite some isolated credit stress incidents, management's optimistic outlook and strategic growth initiatives suggest a positive sentiment, likely leading to a 2% to 8% stock price increase, especially given the company's small-cap status.
