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Is This the Biggest Risk to Live Oak Bancshares?

TheMotleyFool

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Is This the Biggest Risk to Live Oak Bancshares?: https://g.foolcdn.com/editorial/images/720865/small-business-owner-standing-at-cafe-entrance.jpg

When thinking about investing in the financial sector, it's easy to only consider the big banks that often get the headlines. However, limiting investment choices to these large-cap institutions would be a mistake, as there are hundreds of smaller, regional banks that often fly under the radar.

One of those is Live Oak Bancshares (NYSE: LOB), a regional bank based in North Carolina that specializes in lending to small businesses. After a tough 2022 that dragged the stock down 65%, Live Oak is up 20% so far in 2023.

How the rest of this year turns out may have a lot to do with Live Oak's biggest risk. Let's take a closer look.

Source Fool.com

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