Live Oak Bank goes public, makes NASDAQ debut

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Nasdaq - Live Oak Bancshares Opening Bell_Fotor
Live Oak Bancshares CEO James ‘Chip’ S. Mahan III is accompanied by company representatives after ringing the bell. Photo courtesy NASDAQ.

Wilmington met Wall Street on Thursday as Live Oak Bancshares Inc. CEO James “Chip” S. Mahan III rang the opening bell of the NASDAQ Stock Market, celebrating the Wilmington company’s initial public offering.

According to a news release from Live Oak Bancshares, the parent company and registered bank holding company of Live Oak Banking Co., announced the price of its initial public offering (IPO) of 4,800,000 shares of its voting common stock at $17 per share.

Live Oak Bancshares is listed under the ticker symbol “LOB” on the NASDAQ Stock Market.

Defined by federal securities law as an “emerging growth company,” Live Oak, a national online banking platform for small business lending, submitted its Securities Exchange Commission (SEC) filing on June 19. As an “emerging growth company,” Live Oak Bancshares has revenues of less than $1 billion.

Related story: Live Oak Bancshares files with SEC to take company public

“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.

The company lists its total loans in the U.S. as $2.2 billion, with $98 million in loans in North Carolina.

“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,” the filing states. “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. ”

Read related story: nCino CEO: We’re going to expand locally

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.”