Live Oak Bancshares reports Q3 profit drop as credit provisions surge
Live Oak Bancshares reported third-quarter 2026 results on October 21, 2026, with total revenue up 12.5% from the prior quarter and 23.4% from a year earlier. Net income attributable to common shareholders fell 30.1% from the prior quarter to $24,260, while diluted earnings per common share was 0.52. The company recorded $54.7 million of provision expense for credit losses, including $17.0 million tied to its stressed distillery portfolio, alongside $2.1 billion of loan production.
Why it matters
The elevated credit provision reduced reported earnings despite higher revenue, loan production and deposits. CEO James S. (Chip) Mahan III said the company’s operating leverage and loan growth provided capacity to absorb the provision and continue investing in its business.
Key facts
- 1Total revenue was $175,646, in dollars in thousands, up 12.5% from the second quarter and 23.4% from the third quarter of 2025. stocktitan.net
- 2Provision expense for credit losses was $54.7 million, including $17.0 million related to the stressed distillery portfolio. stocktitan.net
- 3Net income attributable to common shareholders was $24,260, in dollars in thousands, down 30.1% from the second quarter. stocktitan.net
- 4Diluted earnings per common share was 0.52, compared with 0.74 in the second quarter and 0.55 in the third quarter of 2025. stocktitan.net
- 5Loan and lease production reached $2.1 billion during the third quarter. stocktitan.net
- 6Total deposits increased by 6.3% from the second quarter to $15,468,175, in dollars in thousands. stocktitan.net
Open questions
- The $750m annual Live Oak Express target and $60m distillery exposure are reported only in material 9 and are not detailed in the company results release provided.
Summary written by AlphAI AI Desk from 11 of 11 sources. Not investment advice. Figures are as stated by the linked sources.