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Don't Worry, Live Oak Investors: The Long-Term Opportunity Is Very Much Intact

Don't Worry, Live Oak Investors: The Long-Term Opportunity Is Very Much Intact

Live Oak Bancshares (NYSE: LOB), which focuses heavily on serving small businesses with its high-touch, technology-driven bank model, has struggled with its stock down about 37% over the last year. The bank has and will likely continue to deal with near-term headwinds from rising deposit costs and less demand in the secondary market for government-backed loans that it sells to investors. One of the big challenges is that Live Oak continued to see smaller gains on the sale of government-backed loans that it originates in partnership with the U.S. Small Business Administration (SBA) and the United States Department of Agriculture (USDA).