Live Oak Q2 net income +57.1% to $36.8M; new material weakness in loan participation accounting

Filed August 4, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 5, 2025 · ~1 min read

Key Changes

• high

  Material weakness scope changed from loan review process to loan participation accounting/classification errors in income statement and cash flow statement, with remediation targeted for end of FY2026.

  Controls & Procedures verify on EDGAR →
• high

  Net income rose $11.3M (48%) to $34.7M ($0.74/share) on stronger net interest income (+$16.1M), lower provision expense, and reduced noninterest costs; net interest margin improved 5bp to 3.33%.

  MD&A: Results of Operations verify on EDGAR →
• high

  Unguaranteed nonperforming loans doubled to $124.3M (1.00% of portfolio) from $59.6M (0.56%) year-over-year, though criticized/classified loans declined and net charge-offs fell 23% to 0.80% annualized.

  MD&A: Asset Quality verify on EDGAR →