Live Oak Bancshares Q2 revenue beats estimates on loan, deposit growth

Overview

• U.S. banking services provider's Q2 revenue rose 12% yr/yr, beating analyst expectations

• Diluted EPS for Q2 rose 45% yr/yr to $0.74

• Company saw record loan originations and strong deposit growth in Q2

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co said strong loan production of $1.55 bln and deposit growth of $712.5 mln supported revenue and asset growth in Q2

• HIGHER NET INTEREST INCOME - Net interest income increased 5.0% from Q1 and 14.8% from Q2 last yr, helped by higher loan balances and net interest margin

• CREDIT LOSS PROVISION - Provision expense for credit losses rose $5.7 mln from Q1 and $2.5 mln from Q2 last yr, partially offsetting revenue gains

Company press release: ID:nGNX6pW1Gq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Live Oak Bancshares Inc is $44.50, about 6.8% above its July 21 closing price of $41.67

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 21 - Webster Financial Q2 revenue beats estimates on loan, deposit growth

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - KeyCorp quarterly profit rises on interest income strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)