Live Oak Bancshares, Inc. has recently released its 10-K report, providing a detailed look into its financial performance for the year. The company, which operates as the bank holding company for Live Oak Banking Company, offers various banking products and services in the United States through its Banking and Fintech segments. It accepts various deposit products, including noninterest-bearing demand, interest-bearing checking, money market, savings, and time deposits. The company also offers a range of loans, investment management services, and financing for renewable energy applications.
In the 10-K report, Live Oak Bancshares, Inc. reported net income attributable to the company of $77.5 million, or $1.69 per diluted share, for 2024, compared to $73.9 million, or $1.64 per diluted share, for 2023. The increase in net income was largely due to increased net interest income of $30.6 million, increased net gains on sales of loans of $14.4 million, and increased other noninterest income of $14.0 million. However, this was partially offset by increased provision for credit losses of $44.9 million, increased net loss on the loan servicing asset revaluation of $17.0 million, and increased salaries and employee benefits of $8.2 million.
The net interest income for 2024 increased by $30.6 million, or 8.9%, to $375.9 million compared to $345.3 million for 2023. This increase was principally due to the growth in the held for investment loan and lease portfolio outpacing the growth in interest-bearing liabilities. The company's average interest-earning assets increased by $1.20 billion, or 11.6%, to $11.50 billion for 2024, compared to $10.30 billion for 2023. The yield on average interest-earning assets increased by 39 basis points to 7.07%, while the cost of funds on interest-bearing liabilities for 2024 increased by 52 basis points to 4.11%.
The provision for credit losses for 2024 was $96.2 million compared to $51.3 million in 2023, an increase of $44.9 million. This increase was primarily the result of record loan growth combined with the impacts of the current macroeconomic environment, which adversely affected some borrowers' performance.
Noninterest income for 2024 increased by $12.0 million, or 10.8%, compared to 2023. This increase was primarily due to higher servicing revenue, increased net gains on sales of loans, increased net gain on loans accounted for under the fair value option, and increased other noninterest income.
These figures provide a comprehensive view of Live Oak Bancshares, Inc.'s financial performance and the key factors driving its results for the year. The market has reacted to these announcements by moving the company's shares -2.2% to a price of $27.66. For the full picture, make sure to review Live Oak Bancshares's 10-K report.
