Should You Add Live Oak Bancshares to Your Portfolio?

Live Oak Bancshares (NASDAQ: LOB) is one of the best-performing bank stocks of 2020, and for good reason. As the bank puts it, it's "on a mission to be America's small-business bank" -- and this laser focus on small businesses has paid off.

Live Oak Bank primarily focuses on originating business loans, such as U.S. Small Business Administration (SBA) loans, which are partially guaranteed by the government. The bank focuses on loans to small banks and professionals that it believes are lower-risk, and it carefully selects those customers it will lend to. This paid off in more stellar earnings results in the third quarter, thanks in part to its involvement in originating small-business loans through the Paycheck Protection Program (PPP), a key component of the $2 trillion CARES Act passed in March.

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Source Fool.com