Live Oak Bancshares, Inc. has announced a public offering of 4 million depositary shares, each representing a 1/40th interest in its 8.750% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock. This strategic move, filed on November 4, 2026, is aimed at enhancing the company's capital position and supporting its balance sheet growth.

The offering is significant for the state commercial banking industry, as it reflects ongoing capital-raising efforts amid competitive pressures. The depositary shares will be priced at $25 each, equivalent to $1,000 per share of the Series B preferred stock. The company has also granted underwriters an option to purchase an additional 600,000 depositary shares.

Background

Live Oak Bancshares, Inc. operates within the SIC category of State Commercial Banks (SIC 6022) and is listed on the New York Stock Exchange under the ticker symbols LOB and LOB-PA. The company is based in Wilmington, North Carolina, and has been actively involved in various financial activities, including lending and deposit services.

What the Filing Says

The filing details that the aggregate liquidation amount for the offering is set at $100 million. If declared, dividends on the preferred stock will accrue quarterly at a rate of 8.750% per annum, starting December 15, 2026. The net proceeds from this offering are expected to be approximately $96.85 million, which will be used for general corporate purposes.

Impact

This offering may affect various stakeholders, including investors seeking stable income through dividends and analysts monitoring capital adequacy in the banking sector. The preferred shares are not deposits or obligations of the company's bank or non-bank subsidiaries and are not insured by the Federal Deposit Insurance Corporation.

What's Next

The filing does not specify what happens next, but the company intends to file an application to list the depositary shares on the NYSE under the symbol 'LOB/PB'. If approved, trading is expected to begin within 30 days after the initial issuance.