4 Reasons Live Oak Banchsares Is 'Hitting on All Cylinders'
The nearly $8.1 billion asset Live Oak Bancshares (NASDAQ: LOB) recently turned in its strongest quarterly earnings in the company's history, generating a profit of $33.8 million in the third quarter. That's up roughly 766% from the same period of 2019 and up a similar amount from this year's second quarter. It also more than tripled analysts' earnings estimates for the quarter. The stock is trading at 226% above book value and is up about 75% year to date. "We're hitting on all cylinders," said Live Oak's CEO, James Mahan III, on the earnings call. Here are four reasons why.
Live Oak's net interest income climbed to more than $51 million in the quarter, while its total revenue exceeded $98 million. Both of those numbers surpassed any previous quarter in the bank's history, at a time when most of the banking industry was experiencing pressure on loan margins due to the low-rate environment.
Source Fool.com