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.
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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
