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    Live Oak Bancshares (LOB) Could Be 21% Undervalued As Charge Offs Rise

    Simply Wall St·11/01/2026 00:38:25
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    Why Live Oak Bancshares Is Back On Investors’ Radar

    Live Oak Bancshares (LOB) just released third quarter earnings that pair higher net interest income with steady quarterly profit and a jump in net charge offs, putting credit quality and digital growth in sharper focus for shareholders.

    Live Oak Bancshares shares have lost momentum in recent months, with the share price down 6.0% over the past 30 days and 21.2% over 90 days, even though the 1 year total shareholder return is still 11.1%. This pullback around the latest net interest income and charge off update suggests that investors are reassessing both the growth potential of its digital small business platform and the perceived risk in parts of the loan book that are now under closer scrutiny.

    Compare Live Oak Bancshares’ small business lending story with other hand picked banks and lenders by running your eye over list of solid balance sheet and fundamentals (25 results), which may offer a different balance between net interest income and credit risk.

    Live Oak Bancshares now trades at a double discount, both to analyst targets and an intrinsic estimate, after a sharp pullback. Is that a margin of safety or a warning label as charge offs climb and credit questions build?

    Most Popular Narrative: 17% Undervalued

    On the most followed view, Live Oak Bancshares is worth $41.75 a share against a last close of $34.47, which puts the focus squarely on how durable its small business engine really is.

    The rapid scaling of Live Oak Express and newer business checking offerings from essentially zero in 2023 to record small-dollar 7(a) production of US$82 million in Q2 2026 and US$744 million of checking and other DDA balances is widening Live Oak Bancshares’ reach with digitally oriented small businesses and can support further revenue growth and a lower funding cost over time.

    See why 5 investors see Live Oak Bancshares as 17% undervalued.

    Result: Fair Value of $41.75 (UNDERVALUED)

    Still, Live Oak Bancshares faces meaningful pressure if SBA or USDA program terms shift in a less favorable direction or if recent insider selling reflects softer internal expectations.

    Find out about the key risks to this Live Oak Bancshares narrative.

    Next Steps

    Mixed messages on value, risk and momentum usually reward investors who go straight to the underlying numbers and form a clear opinion quickly. To weigh up both the upside potential and the concerns flagged around Live Oak Bancshares, start with the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Live Oak Bancshares?

    Do not stop with just one bank when the wider market is full of different risk profiles, income angles and potential mispricings worth a closer look.