Live Oak prices $100M preferred share offering as assets hit $17B
What's the deal? Live Oak Bancshares priced an underwritten offering of 4,000,000 depositary shares on November 4, 2026, raising $100 million. Each share represents a 1/40th interest in its 8.750% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock, with a $25 liquidation preference per depositary share.
The details: Dividends run at 8.750% per annum, payable quarterly from December 15, 2026. Live Oak can redeem the stock on any dividend payment date on or after December 15, 2031. The offering is expected to close on or about November 12, 2026.
Who's involved: Morgan Stanley; Keefe, Bruyette & Woods; RBC Capital MarketsDealroom has a profile for this one. Try Dealroom →; and UBS Investment BankDealroom has a profile for this one. Try Dealroom → are joint bookrunning managers. Underwriters hold a 30-day option to buy up to 600,000 additional shares to cover overallotments. Live Oak plans to list the depositary shares on the NYSE under "LOB/PB."
What's the money for? Net proceeds will fund general corporate purposes, including balance-sheet growth at Live Oak Banking Company and strengthening the company's capital position.
Why now? The raise follows rapid expansion. In Q3 2026, Live Oak reported record $2.1 billion loan production, $920.6 million in deposit growth, and assets reaching $17 billion.
What could go wrong? The bank also booked a $54.7 million credit-loss provision, including $17 million tied to its stressed distillery portfolio. The new capital offers a cushion against those rising credit costs.
The signal: This is Live Oak's second preferred-equity raise in roughly a year, after a $100 million Series A offering priced in July 2025 at 8.375%. The pattern shows the lender leaning on preferred stock — not common equity — to fund growth while absorbing credit pressure.
Read more: marketscreener.com
Image credit: Ken Lund
