LIVE OAK BANCSHARES, INC. (LOB) SPO
The SPO profiles may contain historical records.
Please visit the latest SPOs for the most recent information.
Please visit the latest SPOs for the most recent information.
|Company Name||LIVE OAK BANCSHARES, INC.|
|Company Address||1741 TIBURON DRIVE
WILMINGTON, NC 28403
|CEO||James S. Mahan III|
|Employees (as of 6/30/2017)||517|
|State of Inc||NC|
|Fiscal Year End||12/31|
|Exchange||NASDAQ Global Select|
|Shares Over Alloted||0|
|Shareholder Shares Offered||--|
|Lockup Period (days)||180|
|Quiet Period Expiration||9/18/2017|
We estimate that the net proceeds from the sale of the shares of common stock we are offering will be approximately $ million (or approximately $ million if the underwriters exercise their option to purchase additional shares of common stock in full), after deducting the underwriting discount and estimated offering costs payable by us. The principal purposes of this offering are to obtain additional capital to support our operations. We expect to use the net proceeds of this offering to make investments in the Bank and in our nonbank subsidiaries, to enhance our capital position and that of the Bank, and for general corporate purposes. The amounts and timing of our use of the net proceeds from this offering will depend on market conditions, among other factors. As of the date of this prospectus supplement, we cannot specify with certainty all of the particular uses for the net proceeds to us from this offering. Accordingly, our management will have broad discretion in the timing and application of these proceeds. Pending application of the net proceeds as described above, we intend to temporarily invest the proceeds in short-term, interest-bearing instruments.
Commercial banking in the United States is extremely competitive. The Company competes with national banking organizations including the largest commercial banks headquartered in the country, all of which have small business lending divisions. The Company also competes with other federally and state chartered financial institutions such as community banks and credit unions, finance and business development companies, peer-to-peer and marketplace lenders and other non-bank lenders. Many of the Company's competitors have higher legal lending limits and are also able to provide a wider array of services and make greater use of media advertising given their size and resources. Despite the intense level of competition among small business lenders, the Company believes that it occupies a lending category distinct from its competitors, having both the benefit of deposit funding and the ability to grow quality assets. One of the Company's principal advantages is the technology-based platform it uses, which management believes has accelerated the Company's ability to issue proposals, complete credit due diligence, finalize commitments and improve the overall customer experience. The Company believes that its personnel also provide a competitive advantage because they are industry participants with relevant experience in the Company's identified verticals. The Bank licenses the nCino bank operating system on a nonexclusive basis. As a result, this technology is available to other lenders. However, management believes that the Bank's ability to actively develop and improve upon the existing platform with in-house developers gives the Bank a competitive advantage over competitors who also may use this platform.
We are a bank holding company, headquartered in Wilmington, North Carolina, for Live Oak Banking Company . The Bank was incorporated in February 2008 as a North Carolina-chartered commercial bank and operates an established national online platform for small business lending. We were incorporated
under the laws of the State of North Carolina on December 18, 2008, for the purpose of serving as the bank holding company of the Bank. We predominately originate loans partially guaranteed by the SBA, to small businesses and professionals with what we believe are lower risk characteristics. The industries, or “verticals,” on which we focus our lending efforts are carefully selected. Within each vertical, we retain individuals who possess extensive industry-specific experience. Additionally, these domain experts are engaged and active in each of the industries served. In addition to focusing on industry verticals, we emphasize developing detailed knowledge of our customers’ businesses. This knowledge is developed, in part, through regular visits to customers’ operations, wherever they are located. These regular visits are designed to foster both for us and for the customer a deep and personalized experience throughout the lending relationship. We have developed and continue to refine a technology-based platform to facilitate providing financial services to the small business community on a national scale and have leveraged this technology to optimize our loan origination process, customer experience, reporting metrics, and servicing activity. We service customers efficiently throughout the loan process and monitor their performance by means of the technology-based platform, which eliminates the need to maintain traditional branch locations. In addition to the Bank, we hold the following wholly owned subsidiaries as of the date of this prospectus: • Live Oak Clean Energy Financing LLC, formed in November 2016 for the purpose of providing financing to entities for renewable energy applications; • Live Oak Ventures, Inc., formed in August 2016 for the purpose of investing in businesses that align with our strategic initiative to be a leader in financial technology; • Live Oak Grove, LLC, opened in September 2015 for the purpose of providing our employees and business visitors an on-site restaurant location; • Government Loan Solutions, Inc., a management and technology consulting firm that specializes in the settlement, accounting, and securitization processes for government-guaranteed loans, including loans originated under the SBA 7(a) loan program and USDA-guaranteed loans; and • 504 Fund Advisors, LLC, formed to serve as the investment advisor to the 504 Fund, a closed-end mutual fund organized to invest in SBA section 504 loans. On February 1, 2017, we completed our acquisition of Reltco, Inc. and National Assurance Title, Inc., two companies under common control based in Tampa, Florida, that provide nationwide title agency and settlement services. As of June 30, 2017, we had consolidated total assets of $2.20 billion, total loans held for investment of $1.06 billion, total deposits of $1.87 billion and total shareholders’ equity of $237.63 million. Our principal executive office is located at 1741 Tiburon Drive, Wilmington, North Carolina 28403, and our telephone number is (910) 790-5867. We maintain a website at www.liveoakbank.com.
|Auditor||Dixon Hughes Goodman LLP|
|Company Counsel||Wyrick Robbins Yates and Ponton LLP|
|Lead Underwriter||Goldman Sachs & Co. LLC|
|Transfer Agent||Broadridge Corporate Issuer Solutions, Inc|
|Underwriter||Sandler O’Neill & Partners, L.P.|
|Underwriter||SunTrust Robinson Humphrey, Inc|
|Underwriter Counsel||Covington & Burling LLP|
EDGAR® Online, a division of Donnelley Financial Solutions. EDGAR® is a federally registered trademark of the U.S. Securities and Exchange Commission. EDGAR Online is not affiliated with or approved by the U.S. Securities and Exchange Commission.