The company announced the move toward an Initial Public Offering (IPO) on Monday. Defined by federal securities law as an “emerging growth company,” Live Oak submitted its SEC filing on June 19. As an “emerging growth company,” Live Oak Bancshares has revenues of less than $1 billion.
In a news release, the company said it did not yet know how many shares it intended to sell in its IPO, or how much the price per share would be. The filing, likewise, was left blank or redacted where number of shares and share cost would be listed. Live Oak Bancshares plans to lists its stock under the ticker symbol “LOB” on the NASDAQ Stock Market.
“We are an established national online platform for small business lending,” Live Oak Bancshares’ prospectus filed with the SEC states. “We believe we have used technology to fundamentally change small business lending by streamlining the borrower experience. We are able to better serve our customers by leveraging technological advantages and our deep industry experience to create an optimized borrowing experience for our customers.
“We believe our business model mitigates credit risk while capitalizing on technology to efficiently and prudently generate loans and manage our portfolio of loans outstanding. Our guiding principles, in order of priority, are soundness, profitability and growth.”
The SEC filing cites nCino, Live Oak Bank’s cloud-based operating system, which was created in 2012 under Live Oak’s umbrella and then spun off into another company. nCino is a technology-based platform developed to “facilitate lending to the small business community on a national scale and we have leveraged this technology to optimize our loan origination process, customer experience, reporting metrics and servicing activity. ”
Live Oak Bank sold its shares of nCino in February and has no direct ownership interest in nCino.
“Certain of our directors, officers and employees collectively owned approximately 28.2 percent of nCino’s outstanding common stock as of March 31, 2015,” the filing states. “In addition, our Chief Executive Officer, James ‘Chip’ S. Mahan III, continues to serve as a member of the board of directors of nCino.”
The company lists its total loans in the U.S. as $2.2 billion, with $98 million in loans in North Carolina.
“The integration of this system into our day-to-day operations has improved work flow efficiency, minimized loan file and documentation exceptions, and provided unprecedented real-time clarity into our loan portfolio,” the filing states.
Requests for comments from Live Oak officials were not fulfilled at the time of this report’s publication.
Caroline Curran is the managing editor of Port City Daily. Reach her at (910) 772-6336 or firstname.lastname@example.org. On Twitter: @CGCurran