Live Oak Bancshares, Inc. LOB

Competitive advantage analysis · financial-services

Bank Specialized
Overall moat score
43/100
Developing

Ranked against 399 peers in Banks - Regional

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various banking products and services in the United States. It operates through two segments: Banking and Fintech. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also provides commercial and industrial … Full LOB analysis →

Key strengths

  • Strong Capital Position Capital position is strong (score 0.87), exceeding regulatory minimums.
  • Disciplined Risk Management Risk management appears disciplined (asset quality score 0.82).

Key risks

  • Weak Deposit Franchise Deposit franchise appears weak (profitability score 0.40).
  • Weak Net Interest Margin Net interest margin proxy is weak (score 0.34).

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Deposit Franchise

Developing
27
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Signals, strengths and risks for Deposit Franchise

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Signals, strengths and risks for Lending Advantage

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Signals, strengths and risks for Capital Strength

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Signals, strengths and risks for Cost Discipline

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Signals, strengths and risks for Revenue Diversification

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Signals, strengths and risks for Risk Management

Where LOB ranks in Banks - Regional

Live Oak Bancshares, Inc. ranks #252 of 393 scored companies in Banks - Regional by moat score — the top 64%. The widest moat in the group is 1st Source Corporation (SRCE) at 86/100.

# Company Moat score Rating
248 Southside Bancshares, Inc. SBSI 43/100 Developing
249 Carter Bankshares, Inc. CARE 43/100 Developing
250 Capitol Federal Financial, Inc. CFFN 43/100 Developing
251 Citizens & Northern Corp CZNC 43/100 Developing
252 Live Oak Bancshares, Inc. LOB 43/100 Developing
253 Union Bankshares, Inc. UNB 43/100 Developing
254 Investar Holding Corporation ISTR 42/100 Developing
255 LendingClub Corporation LC 42/100 Developing
256 Sound Financial Bancorp, Inc. SFBC 42/100 Developing

See every Banks & Lenders company ranked by moat score →

How LOB scores on the Bank Specialized defenses

Deposit Franchise

Score 27 · 22% of the moat score

A deposit franchise is the cheapest and most valuable thing a bank can own.

Lending Advantage

Score 28 · 18% of the moat score

Lending advantage is the ability to originate loans at attractive spreads without buying that volume with looser credit standards.

Capital Strength

Score 70 · 20% of the moat score

Capital is the buffer between loan losses and insolvency, and it is what regulators judge a bank on first.

Cost Discipline

Score 28 · 16% of the moat score

Banking carries high fixed costs in branches, compliance and technology, so what it costs to run the bank relative to what the bank earns is a genuine competitive variable.

Revenue Diversification

Score 53 · 14% of the moat score

A bank earning everything from net interest income is a leveraged bet on the rate cycle.

Risk Management

Score 57 · 10% of the moat score

Risk management is the defense that only reveals itself late.

How each Bank Specialized defense is measured, in full →

Understanding LOB's moat

What is Live Oak Bancshares, Inc.'s moat score?

Live Oak Bancshares, Inc. (LOB) scores 43 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #252 of 393 scored companies in Banks - Regional, the top 64%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 399 companies in Banks - Regional. Its strongest defense is Capital Strength (70/100) and its weakest is Deposit Franchise (27/100).

How does Live Oak Bancshares, Inc. compare with other Banks - Regional companies?

Live Oak Bancshares, Inc. ranks #252 of 393 scored companies in Banks - Regional by moat score. The widest moat in Banks - Regional is 1st Source Corporation (SRCE) at 86/100. The companies ranked closest are Citizens & Northern Corp (CZNC) at 43 just above it and Union Bankshares, Inc. (UNB) at 42 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Bank Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 399 companies in Banks - Regional. The defenses are then weighted to produce the overall score out of 100.

Why is Live Oak Bancshares, Inc. scored with the Bank Specialized template?

A bank does not sell a product at a margin. It funds itself, lends at a spread, and books profits that remain an estimate until the loans are actually repaid. That makes the usual margin-and-return questions misleading, so the Bank template scores what really determines a bank's durability: where its funding comes from, what it lends against, how much capital stands behind it, and whether it has been pricing risk honestly.

Which competitive defenses are measured for Live Oak Bancshares, Inc.?

The Bank Specialized template measures 6 defenses, and LOB scores: Deposit Franchise (27), Lending Advantage (28), Capital Strength (70), Cost Discipline (28), Revenue Diversification (53), Risk Management (57). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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