Live Oak Bancshares, Inc. Prices Public Offering of Voting Common Stock

WILMINGTON, N.C., Aug. 09, 2017 -- Live Oak Bancshares, Inc. (Nasdaq:LOB) (“Live Oak” or “the Company”), parent company and registered bank holding company of Live Oak Banking Company (the “Bank”), today announced that it has priced an underwritten public offering of 4,500,000 shares of its voting common stock at a price of $23.00 per share for aggregate gross proceeds of approximately $103.5 million. Net proceeds after underwriting discounts and commissions and expenses of the offering are expected to be approximately $98.3 million. The company also has granted the underwriters a 30-day option to purchase up to an additional 675,000 shares, which would result in additional net proceeds of approximately $14.8 million, if exercised in full. The Company intends to use the net proceeds from the offering to make investments in the Bank and in its nonbank subsidiaries, to enhance its capital position and that of the Bank, and for general corporate purposes. The offering is expected to close on or about August 14, 2017, subject to satisfaction of customary closing conditions.

Goldman Sachs & Co. LLC is acting as the sole book-running manager for the offering.  Sandler O’Neill & Partners, L.P. and SunTrust Robinson Humphrey, Inc. are acting as co-managers.

The securities described above are being offered by Live Oak pursuant to a registration statement previously filed and declared effective by the Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering. The offering may be made only by means of a prospectus, copies of which may be obtained, when available, from Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, or by email at [email protected]; from Sandler O'Neill + Partners, L.P., Attn: Prospectus Department, 1251 Avenue of the Americas, 6th Floor, New York, New York 10020; emailing [email protected] or calling (866) 805-4128; or writing to SunTrust Robinson Humphrey, Inc., Attn: Prospectus Department, 3333 Peachtree Road NE, 11th Floor, Atlanta, GA 30326; emailing [email protected] or calling (404) 926-5744.

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; and the other factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (Nasdaq:LOB) is a financial holding company and the parent company of Live Oak Banking Company, a national online platform for small business lending.

Contacts:

Brett Caines | CFO | Investor Relations | 910.796.1645 & Micah Davis | Marketing Director | Media Relations | 910.550.2255