10 Oversold Bank Stocks To Buy Right Now

4. Live Oak Bancshares, Inc. (NYSE:LOB)

6-Month Performance: -10.92%

Analysts Upside Potential: 35.25%

Live Oak Bancshares, Inc. (NYSE:LOB) is a bank holding company that operates primarily through its subsidiary, Live Oak Banking Company. The banking company focuses on providing loans and deposit services specifically for small businesses across the United States. It differentiates due to its diversified portfolio. The company lends to small businesses in over 35 different industries, including healthcare and renewable energy.

Live Oak Bancshares, Inc. (NYSE:LOB) is entering 2025 with strong momentum in its business operations, particularly in small business lending. Management noted that there is an increase in activity within the small business, which will prove beneficial for the company. Moreover, management is also focusing on initiatives like Live Oak Express, which offers small-dollar loans backed by the SBA (Small Business Administration), and is expanding checking account relationships with customers.

In 2024, the bank achieved record loan production of $5.16 billion, alongside a strong deposit growth of $1.49 billion. This reflects its effective lending strategy and market presence. During the fiscal fourth quarter of 2024, the bank reported a 9% year-over-year increase in net income, while also reducing noninterest expenses by 3%. The company is confident about its growth trajectory for 2025, driven by ongoing improvements in small business sentiment and a robust loan pipeline.

Diamond Hill Small Cap Fund stated the following regarding Live Oak Bancshares, Inc. (NYSE:LOB) in its Q3 2024 investor letter:

“On an individual holdings basis, among our top Q3 contributors were Live Oak Bancshares, Inc. (NYSE:LOB), First Advantage Corp. and United States Lime & Minerals. Shares of regional bank Live Oak rose in sympathy with the broader financial sector as investors anticipated the beginning of a rate-cut cycle. Broader rally aside, we like Live Oak for its solid balance sheet, which we believe is well-positioned relative to those of its peers as we enter a new interest-rate environment.”