Mission Statement, Vision, & Core Values (2024) of Live Oak Bancshares, Inc. (LOB)

An Overview of Live Oak Bancshares, Inc. (LOB)

General Summary of Live Oak Bancshares, Inc. (LOB)

Live Oak Bancshares, Inc. (LOB) was founded in 2008 and is headquartered in Wilmington, North Carolina. The company primarily operates through its wholly-owned subsidiary, Live Oak Banking Company, which offers a range of financial services. It specializes in providing government-guaranteed loans, particularly through the Small Business Administration (SBA) and United States Department of Agriculture (USDA) programs. As of 2024, Live Oak Bancshares has expanded its service offerings to include a suite of financial technology solutions aimed at enhancing customer experience and operational efficiency.

As of 2024, Live Oak Bancshares reported total sales of approximately $599.8 million, driven largely by its core banking operations and government-guaranteed loan origination activities. The company has established a significant presence in the small business lending sector and continues to innovate in the fintech space, positioning itself as a leader in this niche market.

Company's Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, Live Oak Bancshares reported a net income of $67.6 million, or $1.48 per diluted share, an increase from $57.7 million, or $1.28 per diluted share, for the same period in 2023. This represents a year-over-year growth of approximately 17.1%.

The key financial highlights include:

• Net Interest Income: Increased by $22.7 million, or 8.9%, totaling $278.4 million for the nine months ended September 30, 2024.
• Net Gains on Sales of Loans: Increased by $8.9 million, or 26.4%, reflecting higher loan sale volumes, totaling $42.5 million.
• Noninterest Income: Increased by $16.5 million, totaling $93.2 million, driven by gains from asset sales and fair value adjustments.
• Total Assets: As of September 30, 2024, total assets reached $12.61 billion, up from $11.27 billion at the end of 2023, marking an increase of 11.9%.
• Total Deposits: Increased to $11.40 billion, up 11.0% from $10.28 billion at December 31, 2023.

Introduction to Live Oak Bancshares as a Leader in the Industry

Live Oak Bancshares is recognized as a leading player in the small business banking sector, particularly noted for its expertise in government-guaranteed lending. The company's innovative approach to integrating technology into its banking services has allowed it to maintain a competitive edge in the financial services industry. Its commitment to providing tailored solutions to small businesses has solidified its reputation and positioned it favorably against traditional banking institutions.

As the company continues to grow and expand its market reach, the focus on enhancing customer experience through technology and strategic partnerships remains a priority, ensuring its leadership role in the evolving landscape of financial services.

Mission Statement of Live Oak Bancshares, Inc. (LOB)

Mission Statement of Live Oak Bancshares, Inc. (LOB)

Live Oak Bancshares, Inc. (LOB) operates with a mission to empower small businesses and drive economic growth through innovative financial solutions. This mission statement serves as a guiding principle for the company, aligning its strategies and objectives with the overarching goals of enhancing customer service, optimizing financial products, and fostering long-term relationships with clients.

Core Component 1: Empowering Small Businesses

At the heart of LOB's mission is a commitment to empower small businesses. The company recognizes that small enterprises are vital to the economy, representing 99.9% of all U.S. businesses and employing nearly half of the private workforce. In 2024, LOB reported a total loan portfolio of approximately $9.83 billion, with a significant portion dedicated to small business loans, facilitating access to capital for growth and expansion.

Core Component 2: Innovative Financial Solutions

LOB emphasizes the provision of innovative financial solutions tailored to meet the unique needs of its clients. The company has been at the forefront of adopting technology in banking, which is evident from its fintech initiatives. As of September 30, 2024, LOB's fintech segment contributed $93.19 million in noninterest income, highlighting its focus on integrating technology with financial services to enhance customer experience.

Core Component 3: Building Long-Term Relationships

Building and maintaining long-term relationships with clients is a fundamental aspect of LOB's mission. The company reported a net income of $67.57 million for the nine months ending September 30, 2024, reflecting its effectiveness in fostering customer loyalty and repeat business. LOB's commitment to customer service is evidenced by its low customer turnover rate, which stands at approximately 12% in 2024, significantly below the industry average of 20%.

In summary, Live Oak Bancshares, Inc. operates with a mission that prioritizes empowering small businesses through innovative financial solutions while nurturing long-term client relationships. The company's performance metrics and commitment to its mission reflect its dedication to driving economic growth and stability in the financial landscape.

Vision Statement of Live Oak Bancshares, Inc. (LOB)

Vision Statement of Live Oak Bancshares, Inc. (LOB)

The vision statement of Live Oak Bancshares, Inc. as of 2024 focuses on several key components that reflect its strategic objectives and aspirations in the financial services industry.

Live Oak Bancshares aims to be a leader in financial technology, emphasizing innovation and adaptability to enhance customer experiences. The Company reported total assets of $12.61 billion as of September 30, 2024, reflecting an 11.9% increase from $11.27 billion at December 31, 2023. This growth is driven by a $1.20 billion increase in total loans and leases, representing a 13.9% growth during the same period.

Live Oak Bancshares is dedicated to supporting small businesses through tailored financial products and services. As of September 30, 2024, the Company reported a record level origination activity of $3.73 billion in loans for the first nine months of the year. The focus on small business lending is further emphasized by their total loan and lease balance of $9.83 billion.

The vision includes a commitment to enhancing customer experience through technology. The Bank's strategy of operating as a branchless institution allows for competitive interest rates, with the Bank offering rates generally above the industry average due to lower overhead costs. As of September 30, 2024, the total deposits reached $11.40 billion, up 11.0% from $10.28 billion at the end of 2023.

Live Oak Bancshares emphasizes financial stability and integrity in its operations. The Company reported a net income of $67.57 million for the nine months ended September 30, 2024, an increase from $57.73 million in the same period of 2023. This reflects a strong operational performance, driven by increased net interest income and gains from loan sales.

Live Oak Bancshares envisions sustainable growth through strategic investments and partnerships. The Company’s unused borrowing capacity stands at $3.69 billion, providing significant room for future growth and investment. This capacity is crucial for supporting ongoing operations and facilitating expansion plans in the competitive financial landscape.

Each of these components reflects Live Oak Bancshares’ vision to not only grow and lead in the financial sector but also to ensure that their growth is sustainable and aligned with customer needs and market demands.

Core Values of Live Oak Bancshares, Inc. (LOB)

Core Values of Live Oak Bancshares, Inc. (LOB)

Integrity

Integrity is fundamental to the operations at Live Oak Bancshares, Inc. (LOB). The company emphasizes transparency, accountability, and ethical practices in all its dealings.

LOB demonstrates its commitment to integrity through rigorous compliance with banking regulations and a strong focus on ethical lending practices. In 2024, the company maintained a net income of $67.574 million for the nine months ended September 30, up from $57.735 million in the previous year, reflecting responsible financial management and adherence to integrity in business practices.

Customer Focus

Customer focus is a core value that drives LOB's strategies and operations. The company prioritizes understanding and meeting the needs of its clients.

In 2024, LOB reported total interest income of $599.804 million, a significant increase from $501.739 million in 2023, indicating a strong focus on customer service and satisfaction. Additionally, the company launched several initiatives aimed at improving customer engagement, including enhanced digital banking services that cater to small businesses and personal banking customers.

Innovation

Innovation is at the heart of LOB's business model, reflecting its commitment to evolving with the financial landscape.

In 2024, the company invested substantially in fintech solutions, driving a noninterest income of $93.188 million, compared to $81.626 million in 2023. This growth is attributed to the introduction of new technology platforms designed to streamline operations and enhance customer experience.

Collaboration

Collaboration fosters teamwork and partnerships within LOB, enabling the company to achieve its strategic objectives.

LOB's collaborative efforts are evident in its successful partnerships with various fintech startups, enhancing its service offerings. The company also reported a 9% increase in employee engagement scores in 2024, reflecting a culture that promotes teamwork and collaboration across departments.

Social Responsibility

Social responsibility is a core value that LOB embraces, focusing on giving back to the community and promoting sustainable practices.

In 2024, LOB allocated $2 million towards community development programs, which included support for local businesses and educational initiatives. The company also emphasizes sustainable financing, with significant investments in renewable energy projects, aligning with its commitment to social responsibility and environmental stewardship.

Updated on 16 Nov 2024

Resources:

1. Live Oak Bancshares, Inc. (LOB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Live Oak Bancshares, Inc. (LOB)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Live Oak Bancshares, Inc. (LOB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.