Live Oak Bank
| Company type | Division of Live Oak Bancshares, Inc. |
|---|---|
| Industry | Financial services |
| Founded | 2008 |
| Founder | James S. (Chip) Mahan III |
| Headquarters | Wilmington, North Carolina , United States |
Area served | United States |
Key people | Huntley Garriott (former president), Kevin Doyle (VP of small business lending), Renato Derraik (chief information/digital officer), William "B.J." Losch (chief financial officer, later president) |
| Products | SBA and USDA lending, business and personal deposit accounts, digital banking platform |
Number of employees | Over a dozen general lenders (exact total not specified) |
| Website | www |
Live Oak Bank, a division of Live Oak Bancshares, Inc., is a U.S. financial institution headquartered in Wilmington, North Carolina. The bank primarily caters to small business proprietors across the country and was the leading lender through the SBA by loan amount in 2022. Serving clients in every state, it concentrates on providing customized financial solutions tailored to its target clientele.
History
Established in 2008 by James S. (Chip) Mahan III, Live Oak began by offering loans to specific professional sectors such as veterinarians and dentists. Currently, it extends credit to more than 35 distinct industries nationwide and employs over a dozen general lenders dedicated to small business clients. Its expertise lies in SBA and USDA lending, alongside offering both business and personal deposit accounts through its fully digital, branchless platform.
In 2017, the bank inaugurated an office in Washington, D.C., aimed at managing financing for renewable energy projects and government contracts. That same year marked the launch of Apiture, a joint venture with payment technology firm First Data, and an expansion into automotive industry lending.
Scott Custer held the role of president from April 2017 until September 2018, when he stepped down to initiate a community banking startup.
In 2018, Live Oak formed a partnership with Finxact, a cloud-based core banking software provider, completing adoption of this platform for loan origination by 2020 and for retail and commercial deposit services by 2021.
The bank ventured into the field of venture banking in 2019 by appointing Huntley Garriott, formerly of Goldman Sachs, as president. The following year, Live Oak launched Live Oak Labs at its Raleigh location on N.C. State University’s Centennial Campus.
Live Oak became the official sponsor of Wilmington’s Live Oak Band Pavilion in 2021 and revealed plans for Channel, a downtown small business hub. That year also saw Kevin Doyle join as vice president of small business lending, while Renato Derraik (ex-Chief Data Officer at Ally Financial) and William "B.J." Losch (former CFO at First Horizon) were added to the executive leadership as chief information/digital officer and chief financial officer respectively.
The bank broadened its footprint by opening offices in Dallas during 2022 and introduced Tidal Small Business Checking, marking its first checking account designed specifically for small businesses. In December 2022, Live Oak shifted its stock exchange listing from Nasdaq to the NYSE under the ticker symbol LOB.
Live Oak Ventures, the company’s investment division, has funded fintech and healthcare startups including Pharmacy Marketplace, Finxact, Asset Class, and Uplinq.
By 2023, Live Oak ranked as North Carolina’s fourth-largest state-chartered bank and maintained its position as the top SBA lender for six consecutive years. It also commissioned construction of a new four-story office building in Wilmington built by Swinerton and Monteith. In August 2023, CFO “BJ” Losch was promoted to president, succeeding Huntley Garriott.
Operating solely as a branchless online bank, Live Oak’s main office remains in Wilmington with additional locations in Dallas, Raleigh, Charlotte, and California.
Live Oak timeline
- 2008 - Founding of Live Oak Bank
- 2011 – Creation of nCino by founders of Live Oak
- 2012 - $1.2 billion in loans originated
- 2013 – Establishment of Live Oak Ventures
- 2014 – Spin-off of nCino to shareholders
- 2014-17 – Named “Best Bank to Work For” by American Banker
- 2015 – Filed for initial public offering (Nasdaq: LOB)
- 2015 – Launch of digital banking platform
- 2017-2020 – Nationally ranked #1 SBA 7(a) lender
- 2017 – Formation of Apiture joint venture with First Data; part of fintech network
- 2018 – Transitioned business model to loan holding
- 2019 – Leading USDA lender nationally by dollar volume
- 2019 - $10.95 billion in loans originated
- 2020 – Launch of Canapi Ventures $545 million fintech investment fund
- 2020 – Implementation of Finxact core banking system
nCino
In 2012, Live Oak separated its banking software segment to form nCino. This company specializes in creating platforms such as nCino IQ, which utilizes artificial intelligence and machine learning technologies to streamline and improve various processes within the banking operating system.
Apiture
Established in 2017 as a collaborative effort between First Data Corporation and Live Oak Bank, Apiture offers an open API banking platform. It maintains offices located in Wilmington, North Carolina, and Austin, Texas.
Live Oak Private Wealth
Operating under Live Oak Bancshares since 2018 and headquartered in Wilmington, North Carolina, Live Oak Private Wealth is a registered investment advisory firm with the SEC. It provides services including investment management, wealth advisory, portfolio construction, estate and retirement planning, financial analytics, and cash flow management. The firm broadened its service offerings by acquiring Jolly Asset Management in 2020.
Canapi Ventures
Formerly known as Live Oak Ventures, Canapi Ventures is a venture capital entity focusing on early to growth-stage fintech enterprises. In 2020, it introduced a $650 million fund dedicated to fostering innovation within financial services. Canapi is advised by Canapi Advisors, LLC—a subsidiary of Live Oak Bancshares—and CenterHarbor Advisors. The fund is co-managed by Gene Ludwig, a former Comptroller of the Currency, alongside Chip Mahan, CEO of Live Oak Bancshares. The leadership team also features seasoned financial industry professionals including Neil Underwood, Walker Forehand, Dan Beldy, and Jeff Reitman. Canapi’s offices are situated in Wilmington, North Carolina; Washington, D.C.; and New York City.
Legal issues
A class-action lawsuit filed in March 2021 accused Live Oak Bank, nCino, and Apiture of colluding to prevent each other from hiring staff members. This followed an antitrust complaint submitted to Live Oak Bank in December 2020. The involved parties agreed to a $4.65 million settlement in March 2022. The settlement pertains to roughly 1,911 employees who have been employed by the three companies since 2017.