Live Oak Bancshares Inc (LOB) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Q1 2025 Live Oak Bancshares earnings call. (Operator Instructions)

女士們、先生們，早安，歡迎參加 2025 年第一季 Live Oak Bancshares 收益電話會議。（操作員指示）

Also note that this call is being recorded on Thursday, April 24, 2025. I would now like to turn the conference over to General Counsel and Chief Risk Officer, Greg Seward. Please go ahead, sir.

另請注意，本次通話是在 2025 年 4 月 24 日星期四錄製的。現在，我想將會議交給總法律顧問兼首席風險長 Greg Seward。先生，請繼續。

Thank you. Good morning, everyone. Welcome to Live Oak's first-quarter of 2025 earnings conference call. We are webcasting live over the internet, and this call is being recorded. To access the call over the internet and review the presentation materials that we will reference on the call, please visit our website at investor.liveoakbank.com and go to the events and presentations tab for supporting materials. Our first quarter earnings release is also available on our websites.

謝謝。大家早安。歡迎參加 Live Oak 2025 年第一季財報電話會議。我們正在透過網路進行現場直播，而本次通話正在錄音。若要透過網路存取電話會議並查看我們將在電話會議上參考的簡報資料，請造訪我們的網站 investor.liveoakbank.com 並前往「活動和簡報」標籤以取得支援資料。我們的第一季財報也可在我們的網站上查閱。

Before we get started, I'd like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual results to differ materially from our expectations are details in the materials accompanying this call, and in our SEC filings.

在我們開始之前，我想提醒您，我們可能會在今天的電話會議中做出前瞻性的陳述，這些陳述存在風險和不確定性。可能導致實際結果與我們的預期有重大差異的因素詳見本次電話會議隨附的資料以及我們向美國證券交易委員會提交的文件中。

We do not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the day of today's call. Information about any non-GAAP financial measures referenced, including reconciliation of those measures to GAAP measures, can also be found in our SEC filings and in the presentation materials.

我們不承諾更新前瞻性陳述以反映今天電話會議召開日之後可能出現的情況或事件的影響。有關所引用的任何非 GAAP 財務指標的資訊（包括這些指標與 GAAP 指標的對帳）也可在我們的 SEC 文件和簡報資料中找到。

I will now turn the call over to Chip Mahan, our Chairman and Chief Executive Officer.

現在我將電話轉給我們的董事長兼執行長 Chip Mahan。

Thanks, Greg and good morning. As was our custom last time. I'll be handing the mic over to BJ Losch for their prepared comments. Chief Credit Officer; Michael Cairns and I will be joining for the Q&A.

謝謝，格雷格，早安。正如我們上次的習慣一樣。我將把麥克風交給 BJ Losch，請他們發表準備好的評論。首席信貸官邁克爾凱恩斯 (Michael Cairns) 和我將參加問答環節。

Let's go, BJ.

走吧，BJ。

Thanks James. Good morning, everyone. Thanks for joining the call. Let's get started on slide four.

謝謝詹姆斯。大家早安。感謝您參加電話會議。讓我們從第四張投影片開始。

Strong momentum continued in the first quarter in many areas across Live Oak as we continue to be proactive with credit reserving and navigate an uncertain environment.

由於我們繼續積極主動地進行信貸準備並應對不確定的環境，Live Oak 的許多地區在第一季繼續保持強勁勢頭。

As you see on slide five, our strong PPNR growth continues with excellent loan and deposit production leading to strong revenue growth well in excess of expenses, and I expect this to continue.

正如您在第五張幻燈片中看到的，我們強勁的 PPNR 成長仍在繼續，出色的貸款和存款生產導致強勁的收入成長遠遠超過支出，我預計這種情況將持續下去。

Key growth initiatives such as Live Oak Express, which is our small dollar SBA loan program, and acquiring checking relationships are continuing to ramp. On slide six, you see evidence of our focus on building full relationships with our customers through primary checking relationships. Our checking balances stood at $279 million at quarter end, more than four times the levels of just one year ago.

關鍵的成長計劃，例如 Live Oak Express（我們的小額 SBA 貸款計劃）和獲取支票關係，正在繼續增加。在第六張投影片上，您可以看到我們專注於透過主要檢查關係與客戶建立全面關係的證據。截至本季末，我們的支票餘額為 2.79 億美元，是去年同期的四倍多。

As you can see, we are adding incremental checking and savings accounts as we add loan customers, with the percentage of customers with full relationships, both a loan and a deposit, doubling from last year.

正如您所看到的，隨著貸款客戶的增加，我們的支票和儲蓄帳戶也在不斷增加，擁有完整關係（包括貸款和存款）的客戶比例比去年翻了一番。

Much more is to come on this front over the next several years, which will create deeper relationships, more stability for our cost of funds and them, and provide much greater real-time insight into our borrowers' cash flows. We remain quite proud of the unique diversification of our lending portfolio.

未來幾年，我們將在這方面取得更多進展，建立更深的關係，提高我們和借款人的資金成本穩定性，並更即時地了解借款人的現金流。我們對我們的貸款組合的獨特多樣化感到非常自豪。

And as you see on slide seven, 33% of our loans are government guaranteed, which provides significant comfort and quality of our risk profile. And in addition, our portfolio is well diversified with low average loan sizes. Nevertheless, elevated provision as shown on slide eight continues to weigh down our current profitability.

正如您在第七張投影片上看到的，我們 33% 的貸款都是政府擔保的，這為我們的風險狀況提供了極大的安慰和品質。此外，我們的投資組合多樣化，平均貸款規模較低。然而，第八張投影片所示的撥備增加繼續拖累我們目前的獲利能力。

As we've discussed before, with our loan growth continuing at a high double digit pace, [Cecil] requires us to book estimated life of loan provision on day one before we make a penny of income. Trying to look at this glass half full, we call this good provision, which usually makes up anywhere between 15% and 30% of our provision each quarter, which is not an insignificant amount. In addition, we continue building reserves as we work through a small business credit cycle we entered in the latter part of last year, and as a result, you can see on our chart our provisioning in excess of charge-offs has resulted in an increase to the allowance for credit losses of $51 million over the last five quarters. That feels quite healthy.

正如我們之前討論過的，隨著我們的貸款繼續以兩位數的高速度增長，[Cecil] 要求我們在第一天就記入貸款準備金的預計期限，然後才能賺取一分錢的收入。試著把這個杯子看成是半滿的，我們稱之為良好的準備金，這通常占我們每季準備金的 15% 到 30%，這並不是一個微不足道的數額。此外，隨著我們在去年下半年進入小型企業信貸週期，我們繼續建立儲備金，因此，您可以在我們的圖表上看到，我們超過沖銷的撥備導致信貸損失準備金在過去五個季度增加了 5,100 萬美元。感覺非常健康。

We have started to see reasons for optimism in the first quarter, which Walt and Michael will discuss further, but the uncertainty of the current economic environment keeps us cautious and conservative in the near term. We take great pride in our credit quality focus and always strive to be better, but it is also important to have perspective beyond our four walls. And as you can see on slide nine, our default rates and track record on charge-offs relative to the SBA industry remain best in class.

我們已經開始看到第一季樂觀的理由，沃爾特和邁克爾將進一步討論，但當前經濟環境的不確定性使我們在短期內保持謹慎和保守。我們對我們的信用品質重點感到非常自豪，並始終致力於做得更好，但擁有超越我們自身範圍的視角也同樣重要。正如您在第九張幻燈片中看到的，我們的違約率和相對於 SBA 行業的沖銷記錄仍然是最好的。

On slide 10, I want to highlight the strength of our capital position because of the uniqueness of our balance sheet. Starting with the fact that over 40% of our assets are cash or government guaranteed, are in excess of industry peers, chip has always reminded us to remain focused on the importance of understanding the true risk on the balance sheet, the unguaranteed loans, and what our reserve and capital coverage is relative to those loans. We affectionately call this the Mahan ratio, and as you can see at almost 17% it is quite strong in addition to our healthy regulatory ratios and gives us great confidence in any operating environment.

在第 10 張投影片上，我想強調我們的資本狀況的強勁，因為我們的資產負債表是獨一無二的。首先，我們的資產有 40% 以上是現金或政府擔保，這一比例超過行業同行，這一點一直提醒我們要專注於了解資產負債表上的真正風險、無擔保貸款以及我們的儲備和資本覆蓋率相對於這些貸款的重要性。我們親切地稱之為馬漢比率，正如您所見，接近 17% 的比率與我們健康的監管比率相比相當強勁，讓我們在任何營運環境中都充滿信心。

Finally, on slide 11, there's been a lot of news on government agencies lately, including the SBA. Here's what we know.

最後，在第 11 張投影片上，最近有很多關於政府機構的新聞，包括 SBA。以下是我們所知道的。

The SBA is alive and well. We have not yet seen impacts from doge-related staffing changes at the SBA, though we have heard positive early feedback on the doge efforts related to future technology upgrades at the agency.

SBA 依然活躍且健康。雖然我們已經聽到了有關 DOGE 與 SBA 未來技術升級相關的努力的積極早期反饋，但我們尚未看到 SBA 與 DOGE 相關的人員變動帶來的影響。

As expected, rule changes implemented during the prior administration will be rolled back, including reinstatement of small dollar borrower fees and several other changes. None of them are surprising or onerous to us. In fact, we believe that it may give us a competitive advantage given how we currently do business relative to other participants in the industry.

正如預期的那樣，上屆政府實施的規則變更將被撤銷，包括恢復小額美元借款人費用和其他幾項變更。對我們來說，這些都不是令人驚訝或繁重的事情。事實上，我們相信，考慮到我們目前的經營方式相對於產業內其他參與者而言，這可能會為我們帶來競爭優勢。

With that, Walt, how about running through some of the financial highlights for the quarter.

沃爾特，您能不能先介紹一下本季的一些財務亮點？

Thanks, BJ. Good morning, everyone. Let's get started on slide 14 with an overview of our Q1 performance.

謝謝，BJ。大家早安。讓我們從第 14 張投影片開始概述我們的第一季業績。

Our commentary and expectations we set forth in our last earnings call noted that we expected our top line growth momentum to continue into 2025, driven by strong loan production and balanced growth, margin expansion, and secondary market sales, aided by our efforts to expand small loan SBA originations.

我們在上次收益電話會議上提出的評論和期望指出，我們預計我們的營收成長動能將持續到 2025 年，這得益於強勁的貸款生產和均衡的成長、利潤率的擴大和二級市場銷售，以及我們擴大小額貸款 SBA 發放的努力。

This top line growth will continue to drive our favorable core operating leverage growth. As we have experienced in prior years, we expected our expenses to increase in Q1 compared to Q4 as annual salary adjust adjustments took effect. And we expect that our provision expense to remain elevated as we continue to work through the small business credit cycle. All of these expectations held true in the first quarter.

這一營收成長將繼續推動我們核心營運槓桿的良好成長。正如我們前幾年所經歷的，隨著年度薪資調整生效，我們預計第一季的支出將比第四季增加。我們預計，隨著我們繼續推進小型企業信貸週期，我們的撥備支出仍將保持高位。所有這些預期在第一季都得到了實現。

Our earnings per share of $0.21 was similar to last quarter and was the result of a healthy PPNR and growth quarter offset by an elevated provision.

我們的每股收益為 0.21 美元，與上一季相似，這是健康的 PPNR 和成長季度被增加的撥備所抵消的結果。

As BJ noted, our core PPNR of $50 million was up 27% year over year, driven primarily by increasing net interest income either by strong balance growth. A strong and consistent secondary market generating reoccurring gain on sale and continued focus on expenses.

正如 BJ 所指出的，我們的核心 PPNR 為 5000 萬美元，年增 27%，主要得益於淨利息收入的增加或強勁的餘額增長。強勁而穩定的二級市場產生經常性的銷售收益並持續關注費用。

As BJ just highlighted, we typically see our core PPNR set down from 2,421 each year before continuing on its up into the right trajectory, and we expect 2025 to be no different. A few key highlights note within our Q1 PPNR.

正如 BJ 剛才強調的那樣，我們通常會看到核心 PPNR 每年從 2,421 下降，然後繼續上升到正確的軌道，我們預計 2025 年不會例外。我們第一季的 PPNR 中有幾個關鍵亮點值得注意。

Loan balanced growth from strong production activity coupled with better than expected margin expansion enabled our net interest income to grow 3% in one quarter and 12% compared to Q1 of 2024.

強勁的生產活動帶來的貸款平衡成長，加上好於預期的利潤率擴張，使我們的淨利息收入在一個季度內增長了 3%，與 2024 年第一季相比增長了 12%。

Our secondary market sales increased quarter over quarter in Q1 as our lending teams continue to demonstrate discipline pricing while also focusing on small loan SBA origination. And our core operating expenses were up quarter over quarter, driven primarily by annual salary adjustments, seasonal taxes, as well as good costs related to incremental volumes.

由於我們的貸款團隊繼續展示紀律定價，同時專注於小額貸款 SBA 發放，我們的二級市場銷售額在第一季環比增長。我們的核心營運費用較上季上升，主要原因是年度薪資調整、季節性稅收以及與增量相關的成本。

Growth on both loan and deposit fronts remains strong. Q1 2025 loan originations of $1.4 billion was our largest Q1 of loan production in bank history. This resulted in a late quarter loan growth of just below $500 million or approximately 5%.

貸款和存款的成長依然強勁。2025 年第一季貸款發放量為 14 億美元，是我們銀行史上第一季貸款發放量最大的一次。這導致本季末貸款成長略低於 5 億美元，約 5%。

And our pipeline remains healthy, indicating that despite the economic uncertainty, we have not yet seen a decline in potential borrowers' appetite.

我們的管道依然健康，這表明儘管存在經濟不確定性，但我們尚未看到潛在藉款人的興趣下降。

The first quarter has historically been a strong growth quarter for our customer deposits, and 2025, let's continued this trend with our customer deposits growing approximately 8% in late quarters. As BJ highlighted, we also continue to build momentum with our business checking product as these non-interest bearing balances have increased 31% in that quarter.

從歷史上看，第一季一直是我們客戶存款強勁增長的一個季度，到 2025 年，我們將延續這一趨勢，我們的客戶存款將在後幾個季度增長約 8%。正如 BJ 所強調的，我們的商業支票產品也繼續保持強勁成長勢頭，因為這些無息餘額在該季度增長了 31%。

The major themes influencing our provision expense in the first quarter are consistent with comments made by both BJ and I on our last earnings call. We are a growing bank and as such, our good provision as BJ just noted, will increase nationally with our growth.

影響我們第一季撥備支出的主要主題與 BJ 和我上次財報電話會議上的評論一致。我們是一家成長型銀行，因此，正如 BJ 剛才提到的，我們的良好撥備將隨著我們的成長在全國範圍內增加。

And this is a difficult environment for small businesses. Even with the 100 basis points cuts in the second half of 2024, rates still remain elevated for many borrowers that originated their loans back in 2023, 2022.

對於小型企業來說，這是一個艱難的環境。即使在 2024 年下半年降息 100 個基點，對於許多在 2023 年、2022 年發放貸款的借款人來說，利率仍然處於高位。

Inflation levels have proven to be more stubborn than expected. COVID era government stimulus benefits are dwindling and now they face potential new challenge with tariffs. We continue to work with our borrowing base to help them navigate this environment while also ensuring that our reserves adequately consider the potential risks at hand.

事實證明，通貨膨脹水準比預期的更頑固。新冠疫情時期政府刺激措施的效益正在減少，現在又面臨關稅的潛在新挑戰。我們繼續與我們的借款群體合作，幫助他們應對這種環境，同時確保我們的儲備充分考慮到當前的潛在風險。

Now let's unpack the quarter performance a bit more on the following slides.

現在讓我們透過以下投影片進一步分析本季的表現。

Slide 15 highlights our loan originations by vertical and business unit as shown on the right hand side of the page. Our Q1 2025 loan origination totaled approximately $1.4 billion relatively flat in Q4 2024 and 73% higher than Q1 of 2024.

投影片 15 重點介紹了我們按垂直和業務部門劃分的貸款發放情況，如頁面右側所示。我們 2025 年第一季的貸款發放總額約為 14 億美元，與 2024 年第四季基本持平，比 2024 年第一季高出 73%。

60% of Q1's loan production came via our small business banking team, primarily in the form of SBA 7(a) loans, a 55% increase year to year.

Q1 的 60% 貸款來自我們的小型企業銀行團隊，主要為 SBA 7(a) 貸款，年增 55%。

And 40% of our Q1's loan production came to our commercial lending team, a 110% increase compared to the prior year.

我們第一季的貸款有 40% 來自商業貸款團隊，比前一年成長了 110%。

You can see the year every year vertical view on the left hand side of the page with more than half of our verticals originating more production in Q1 of 2025 than they did in Q1 of 2024.

您可以在頁面左側看到每年的垂直視圖，其中超過一半的垂直行業在 2025 年第一季的產量比 2024 年第一季有所增加。

Slide 16 illustrates the quarter of a quarter loan and deposit b growth, highlighting the strong consistent growth trends on both fronts.

投影片 16 展示了季度貸款和存款 b 的成長情況，強調了兩個方面強勁的持續成長趨勢。

Loan balances were up 5% in quarter and 20% compared to the prior year. Continuous consistent loan growth.

本季貸款餘額增加了 5%，比去年同期成長了 20%。貸款持續穩定成長。

As I mentioned, we had a very strong Q1 in terms of customer deposit growth. The approximately 8% quarter to quarter growth was nearly double the Q1 growth we experienced in Q1 of 2024.

正如我所提到的，我們第一季的客戶存款成長非常強勁。環比成長約 8%，幾乎是 2024 年第一季成長的兩倍。

Net interest income and margin trends are highlighted on slide 17.

幻燈片 17 重點展示了淨利息收入和利潤率趨勢。

In Q1 2025, we saw our quarterly net interest income eclipse $100 million for the first time in bank history with approximately $101 million of net interest income.

2025 年第一季度，我們的季度淨利息收入首次突破 1 億美元，達到約 1.01 億美元。

Our net interest margin also expands 5 basis points to 3.20%. A few other highlights from this page, consistent with commentary from our last earnings call, in addition to Fed actions, our loan growth will continue to be the driving factor influencing our net interest income going forward.

我們的淨利差也擴大5個基點至3.20%。本頁的其他一些亮點與我們上次收益電話會議的評論一致，除了聯準會的行動之外，我們的貸款成長將繼續成為影響我們未來淨利息收入的驅動因素。

Our margin continues to be supported by the great pricing discipline of our lending teams. Our loan production yields of approximately 8.14%, noted in the second bullet on the top right, are approximately 80 basis points above our current portfolio yield of 7.35% as shown in the top of the table in the middle of the page.

我們的利潤率繼續受到貸款團隊嚴格定價紀律的支持。我們的貸款生產收益率約為 8.14%，如右上角第二項所示，比我們目前的投資組合收益率 7.35% 高出約 80 個基點，如頁面中間表格頂部所示。

There are two primary factors driving our cost of funds. First, our growth. We continue to put up strong loan growth results each quarter, and the pipeline is not flowing down. As such, we must position our products in the market to remain competitive to support our strong loan origination.

影響我們資金成本的主要因素有兩個。首先，我們的成長。我們每季都持續保持強勁的貸款成長業績，而且貸款管道並未減少。因此，我們必須在市場上定位我們的產品以保持競爭力，以支持我們強大的貸款發放。

Secondly, while we have seen more downward repricing activity in both the consumer and business savings markets, the funding market in general remains competitive, and it continues to be an influx of new market entrants. Our 20% downwards beta on consumer savings has been intentional, and that is where we are seeing the most robust growth thus far.

其次，雖然我們看到消費者和商業儲蓄市場都出現了更多的向下定價活動，但融資市場總體上仍然競爭激烈，並且繼續湧入新的市場進入者。我們有意將消費者儲蓄的貝塔值下調 20%，而這也是我們迄今為止看到的最強勁的成長點。

Meanwhile, we have been able to reprice our business savings down over time, now at a 50% beta, which is largely in line with the broader business savings market data.

同時，我們能夠隨著時間的推移重新調整我們的商業儲蓄價格，目前為 50% 的貝塔值，這與更廣泛的商業儲蓄市場數據基本一致。

We are continuing to focus on strategies to lower our savings rates faster while still achieving the growth needed.

我們將繼續專注於更快降低儲蓄率的策略，同時仍實現所需的成長。

Lastly, on the stage, the CD market has continued to provide near term tailwinds as our CDs have renewed into rates approximately 84 basis points below their maturing rates as highlighted in the middle of the debate.

最後，在舞台上，CD 市場繼續提供短期順風，因為我們的 CD 已更新至比到期利率低約 84 個基點的利率，正如辯論中所強調的那樣。

Guaranteed loan sale trends are shown on flight 18. The demand for government guaranteed SB 8 loans on the secondary market remains strong, providing consistent gain on sale revenue and recycling liquidity back into the bank.

擔保貸款銷售趨勢如圖 18 所示。二級市場對政府擔保的 SB 8 貸款的需求依然強勁，為銷售收入提供了持續的收益，並將流動性重新回流到銀行。

We sold $266 million of SBA loans in Q1 for a 7% average premium, generating approximately $19 million of game loan sales.

我們在第一季以 7% 的平均溢價出售了 2.66 億美元的 SBA 貸款，產生了約 1,900 萬美元的遊戲貸款銷售額。

We're also beginning to see the benefits of our focus on small loan SBA origination as small loan SBA sales provide for approximately 18% of the loan sold and 22% of our Q1 game loan sale.

我們也開始看到專注於小額貸款 SBA 發放的好處，因為小額貸款 SBA 銷售額約佔貸款銷售額的 18%，占我們第一季遊戲貸款銷售額的 22%。

Expense trends are detailed on July 19.

費用趨勢詳情將於 7 月 19 日公佈。

With expenses expenses increased approximately 4% in one quarter as expected. This increase was due to the gross annual salary adjustments taking effect. Typically the largest driver increases from 241 each year. Seasonal increase in cyclA payroll taxes, as well as good costs that are growth driven.

如預期，費用在一個季度內增加了約 4%。這一增長是由於年度總工資調整生效所致。通常，最大的駕駛員數量每年從 241 人增加。週期性工資稅的增加，以及由成長驅動的良好成本。

No change to our expense management strategy since our last earnings period. We are focused on achieving a positive annual operating leverage by aligning both current expenses with current revenues. Yet we are cognizant that we are a growth bank, and as such, we will continue to focus on good costs that support our lending and funding growth, invest in our bank back office to support our complexity, and involve our technology and product strategy.

自上次獲利期以來，我們的費用管理策略沒有改變。我們致力於透過調整當前支出和當前收入來實現積極的年度經營槓桿。然而，我們認識到我們是一家成長型銀行，因此，我們將繼續專注於支持我們的貸款和融資增長的良好成本，投資於我們的銀行後台以支持我們的複雜性，並涉及我們的技術和產品策略。

Credit quality trends are detailed on slide 20. Our current loan portfolio is split 65%, 35% in favor of small business banking over a commercial lending segment, with as BJ noted, approximately 1/3 of the total portfolio government guaranteed.

信用品質趨勢詳見投影片 20。我們目前的貸款組合分為 65% 和 35% 兩種，其中小型企業銀行貸款佔 35%，商業貸款佔 35%，正如 BJ 指出的，總貸款組合中約有 1/3 是由政府擔保的。

Despite the elevated provision expense for the quarter and us still working through the small business credit cycle that we discussed on our last earnings call, we are starting to see some positive signs as we aggressively monitor our portfolio.

儘管本季的撥備費用較高，而且我們仍在努力應對上次收益電話會議上討論的小型企業信貸週期，但隨著我們積極監控投資組合，我們開始看到一些積極跡象。

Past dues remain low in Q1 of 2025, at $10 million or approximately 9 basis points of our total held for investment loan portfolio. That is the second consecutive quarter of loan past dues of low past dues and is a good trend.

2025 年第一季的逾期餘額仍然很低，為 1,000 萬美元，約占我們持有的投資貸款組合總額的 9 個基點。這是連續第二季貸款逾期率較低，這是一個好的趨勢。

Although not accruing classified loans increased quarter to quarter, the rate at which they have increased has slowed compared to the second half of 2024.

儘管未提列分類貸款逐季增加，但與 2024 年下半年相比，增幅有所放緩。

Total classified loans increased 5 basis points quarter to quarter, much less than the increase in the second half of 2024. This is encouraging as we did not see a substantial deterioration in the portfolio and downgrade migration within the quarter.

分類貸款總額較上季增加 5 個基點，遠低於 2024 年下半年的增幅。這是令人鼓舞的，因為我們沒有看到本季投資組合和降級遷移大幅惡化。

And while our net charge offs historically have been choppy, we continue to actively identify impairments and generally reserve for them ahead of charge-offs. So another way, you may see instances of larger net charge-offs in future periods, yet generally the bulk of those charge offs have already been reserved for prior to the charge off event.

儘管我們的淨沖銷額歷來不穩定，但我們仍會繼續積極識別減值，並通常在沖銷之前為其預留準備金。因此，從另一個角度來看，您可能會在未來期間看到更大淨沖銷的情況，但通常大部分沖銷已經在沖銷事件之前預留了。

We still have some road to cover within the current small business credit cycle and are monitoring the macroeconomic uncertainty and potential impacts, yet we believe that our current reserve levels are healthy and well positioned, given the risk within their portfolios.

在當前的小型企業信貸週期中，我們仍有一些路要走，並且正在監測宏觀經濟的不確定性和潛在影響，但我們相信，考慮到投資組合中的風險，我們目前的儲備水平是健康的，並且處於良好的位置。

Thank you all for your time, and with that, I will turn it back over to BJ for his closing comments before we head to.

感謝大家抽出時間，在我們開始之前，我將把時間交還給 BJ 進行總結發言。

Good deal. Thanks, Walt. It's always a good time to focus on controlling what we can control, and that's exactly what we're doing. Great things are happening at Live Oak, and we will continue to help small businesses.

好交易。謝謝，沃爾特。集中精力控制我們能夠控制的事情總是好的，而這正是我們正在做的事情。Live Oak 正在發生偉大的事情，我們將繼續幫助小型企業。

Manage, grow, and prosper. So with a big thank you to all live ochres and our customers, let's take some questions.

管理、成長和繁榮。因此，非常感謝所有現場觀眾和我們的客戶，讓我們來回答一些問題。

Thank you, sir. (Operator Instructions)

謝謝您，先生。（操作員指示）

First, we will hear from Crispin Love at Piper Sandler. Please go ahead.

首先，我們來聽聽 Piper Sandler 的 Crispin Love 的演講。請繼續。

Thank you and good morning everyone. First, can you just give us your latest thoughts on the margin and NII trajectory margin expanded in the quarter and in the past you've talked about getting to around a 350 margin by the end of the year, early next. So curious on any update there and how you'd expect the cadence of the margin to be in this environment, which I understand is uncertain throughout the rest of the year? Thanks.

謝謝大家，早安。首先，您能否向我們介紹一下您對本季利潤率和 NII 軌跡利潤率擴大的最新看法，過去您曾談到到今年年底或明年年初利潤率將達到 350 左右。所以很好奇那裡有什麼更新，以及您預計在這種環境下利潤率的節奏會如何，據我所知，今年剩餘時間內利潤率的節奏是不確定的？謝謝。

Hey Kristen, this is Walt. Thanks for the question.

嘿，克里斯汀，我是沃特。謝謝你的提問。

Yeah, I think you hit on the last part of that. This is an extremely difficult environment right now to give any kind of forward-looking guidance when it comes to the margin, I think the best approach right now is just to kind of take a step back and generally look at our interest rate risk position and our profile.

是的，我認為你已經理解了最後一部分。在目前的環境下，對於保證金問題給出任何前瞻性的指導都極其困難，我認為現在最好的方法就是退一步，全面審視我們的利率風險狀況和狀況。

We're an asset sensitive bank with both our lending and our funding primarily tied to the short end of the curve. So as you think kind of going forward, I think the best approach is to take kind of that. Knowledge in that perspective right imply, kind of whatever, economic forecasts you think, may make sense you know our aspiration always been up to the right, and that continues, but I think right now with the market and the way it is, you essentially got to control what you what you can control, as BJ noted and you know kind of go from there.

我們是一家資產敏感型銀行，我們的貸款和融資主要與曲線的短期端相關。因此，當您考慮前進時，我認為最好的方法就是採取那種方式。從這個角度來看，知識意味著，無論如何，您認為的經濟預測可能是有道理的，您知道我們的願望始終是正確的，並且這種情況會持續下去，但我認為現在有了市場和現狀，您基本上必須控制您可以控制的東西，正如 BJ 指出的那樣，您知道從那裡開始。

Thanks Pa.

謝謝爸爸。

I appreciate that. And then just one last question for me on loan growth and your pipelines. You continue to put up solid growth in loans and originations, and I know you're a growth bank, but do you believe that now is the right time to be growing meaningfully just considering the uncertain macro we're in and the small business credit cycle you've mentioned last quarter, this quarter and that you're going through.

我很感激。最後我還有一個關於貸款成長和你們的管道的問題。你們的貸款和發放業務繼續保持穩健增長，我知道你們是一家成長型銀行，但考慮到我們所處的不確定的宏觀環境以及您提到的上個季度、本季度和你們正在經歷的小企業信貸週期，您是否認為現在是實現有意義增長的最佳時機？

Yeah, it's a great question, Kristen. We are constantly looking at the quality of the production that we're seeing, and we're still very comfortable with the activity on both the small business side and the commercial side. We are very active in terms of understanding the credit box being disciplined around what we, what we'll approve and what we won't approve.

是的，這是一個很好的問題，克里斯汀。我們一直在關注我們所看到的生產質量，我們對小型企業方面和商業方面的活動仍然非常滿意。我們非常積極地了解信貸框的紀律，了解我們會批准什麼以及我們不會批准什麼。

And so we continue to constantly monitor that, but we continue to feel comfortable with the activity and the and the growth that we're seeing.

因此，我們會繼續不斷監控這一點，但我們對所看到的活動和成長仍然感到滿意。

Thanks, BJ. I appreciate you both taking my questions.

謝謝，BJ。感謝你們回答我的問題。

Thanks.

謝謝。

Next question will be from Tim Switzer at KBW. Please go ahead.

下一個問題來自 KBW 的 Tim Switzer。請繼續。

Hey, good morning, guys. Thank you for taking my questions.

嘿，大家早安。感謝您回答我的問題。

It I wanted to ask a few about some of the recent changes made at the SBA, my first one being about the impact of the return of the 55 basis points on the lenders's annual service fee.

我想問幾個有關 SBA 最近做出的一些改變的問題，我的第一個問題是關於 55 個基點的回報對貸款人年度服務費的影響。

Can you walk us through on, does that impact loans that have already been originated, and how is that fee paid? Is that paid by you guys now, or are you able to pass that on to people who have purchased the loan, meaning that can maybe result in an increase in expenses for you.

您能否向我們介紹一下，這是否會影響已經發放的貸款？費用是如何支付的？這些錢現在是由你們支付嗎，還是你們可以將其轉嫁給購買貸款的人，這意味著這可能會導致你們的開支增加。

Yeah, so it doesn't impact existing loans, and so small dollar borrower fees that are being reinstituted are paid by the borrower as part of the loan. They're still relatively small.

是的，所以它不會影響現有貸款，因此重新設立的小額借款人費用由借款人作為貸款的一部分支付。它們仍然相對較小。

They've got a gradation that essentially starts with a lower percentage for small dollar loans and goes. Higher as the loan is larger, we don't see a material impact on this as it becomes just part of the lending closing package.

他們有一個等級制度，基本上從小額美元貸款的較低百分比開始，然後逐漸增加。儘管貸款金額較大，但我們看不到這方面有任何實質的影響，因為它只是貸款結算方案的一部分。

It's essentially a roll back to what the Trump administration had prior to the Biden administration and so. That's kind of how we all normally operated before and so as long as that's very clear to borrowers, we don't see that as a particular issue. We do think that.

這本質上是回到了拜登政府之前的川普政府的做法。這是我們以前通常的做法，只要藉款人清楚這一點，我們就不會認為這是一個特殊問題。我們確實這麼認為。

On balance, this is actually going to be better for us than other participants in the industry. As a matter of fact, we've already seen some smaller dollar lenders, particularly fintech oriented lenders or those that are heavily reliant on simply doing small dollar loans very quickly without a lot of oversight or documentation already backing away because of the changes in the SOP.

總的來說，這對我們來說實際上比行業內的其他參與者更有利。事實上，我們已經看到一些規模較小的美元貸款機構，特別是金融科技導向的貸款機構，或者那些嚴重依賴快速發放小額美元貸款而不需要大量監管或文件的貸款機構，由於 SOP 的變化而退出。

Because we have always done SBA lending from a full underwrite perspective, we know exactly how to do that, and we're building technology to do it more efficiently and in an automated fashion, so we think we're going to be incredibly well positioned to take advantage of disruption that might be caused by SOP changes.

因為我們一直從全面承保的角度進行 SBA 貸款，所以我們確切地知道如何做到這一點，並且我們正在構建技術以更有效率和自動化的方式完成這項工作，因此我們認為我們將處於非常有利的位置，可以利用可能由 SOP 變化引起的中斷。

Okay, I have a follow up on those underwriting requirements you referenced, but I want to be clear on that lender's annual service fee. From my understanding, the FDA says that that cannot be passed on to the borrower, so that 55 basis points that's paid each year that got rein re in place, can you just explain, I guess, like who exactly is paying that to the SBA and then if you have any ability to pass it on to anyone.

好的，我會跟進您提到的承保要求，但我想清楚了解貸款人的年度服務費。據我了解，FDA 表示，這筆費用不能轉嫁給借款人，因此，每年支付的 55 個基點已經到位，您能否解釋一下，例如究竟是誰向 SBA 支付這筆費用，然後您是否有能力將其轉嫁給任何人。

Else?

別的？

Well that's been going on for years. The 55 basis point trails, that and the origination fees fund the program, it was unprecedented on October 31st of 2023 when the Biden administration basically came in and said every loan under a million dollars, no more origination fee. Every loan under $500,000 you do not have to take all available collateral, and we're just going to. Right back the way it's been for 70 years, right back the way it was in the first Trump administration. We did not make those changes, particularly under loans under 500,000, where we did what we always do, which is take a general security interest in all the collateral of the business as opposed to eliminating that the way some of these Charlottean lenders have done. And as BJ said, it looks like some of those folks have lost their funding.

嗯，這種情況已經持續好幾年了。55 個基點的追蹤利率以及發起費為該計劃提供資金，這是前所未有的，2023 年 10 月 31 日，拜登政府上台後表示，每筆低於一百萬美元的貸款都不再收取發起費。每筆低於 50 萬美元的貸款，您不必承擔所有可用的抵押品，我們只需要承擔所有抵押品。回到 70 年來的狀態，回到第一屆川普政府時期的狀態。我們沒有做出這些改變，特別是在 50 萬以下的貸款下，我們做了我們一直在做的事情，即對企業的所有抵押品採取一般擔保權益，而不是像夏洛特的一些貸款機構那樣取消這種權益。正如 BJ 所說，看起來其中一些人已經失去了資金。

Okay, got it. Thank you. And on the change in the underwriting requirements, I know that the rollback of that was, or I guess the lower underwriting requirements is one of the main reasons Live Oak decided to get in to start Live Oak express and get in the small dollar space because it'd be a lot more efficient.

好的，明白了。謝謝。關於承保要求的變化，我知道，降低承保要求是 Live Oak 決定啟動 Live Oak Express 並進入小額美元領域的主要原因之一，因為這樣效率更高。

How does this change the profitability of those loans for you? I know you get a better gain on sale margin, but now that you have to do the full underwriting, obviously this is your bread and butter, but can you talk about how that kind of changes the profitability of Live Oak Express relative to before?

這對你的貸款獲利能力有何影響？我知道你們獲得了更好的銷售利潤，但是現在你們必須進行全面承保，顯然這是你們的生計，但是你能談談這與以前相比如何改變 Live Oak Express 的盈利能力嗎？

Yeah, so this is BJ. I really don't think it's going to change the profitability because I think as we've talked about several times, we're building technology to make it simpler, easier, faster, more efficient to do these loans and actually our larger dollar loans over time.

是的，這就是 BJ。我真的不認為這會改變盈利能力，因為我認為正如我們多次談到的那樣，我們正在開發技術，使這些貸款變得更簡單、更容易、更快捷、更高效，實際上隨著時間的推移，我們的更大額度的美元貸款也會變得更簡單、更容易、更快捷、更有效率。

I think what it's going to do though, Tim, is Instead of being able to close in a handful of days, which was our target because of, easing of documentation and tax tax requirements.

提姆，我認為它的作用不是能夠在幾天內完成，而是透過簡化文件和稅務要求來實現我們的目標。

And equity injections and those types of things on the smaller end we're going to have to require those so it's going to take a little bit more time to close these loans, but I don't think it's going to impact the profitability because of the automation that we are building.

對於較小規模的貸款，我們必須要求注入股權和諸如此類的東西，因此結清這些貸款需要更多時間，但我認為這不會影響獲利能力，因為我們正在建立自動化系統。

I do think it's going to impact.

我確實認為它會產生影響。

The profitability of those lenders that solely focused on small dollar loans and built their A platforms around just taking in applications and sending them through without a lot of oversight. We were doing a lot of this stuff already, even on the small dollar loans. So again, I don't think it's going to impact our profitability might impact a little bit of the time to close.

那些只專注於小額美元貸款並建立 A 平台的貸款機構的盈利能力僅僅是接受申請並在沒有太多監督的情況下發送申請。我們已經做了很多這樣的事情，甚至包括小額美元貸款。所以，我再說一遍，我認為這不會影響我們的獲利能力，但可能會對成交時間產生一點影響。

Got it. Makes a lot of sense. Thank you for all the color.

知道了。很有道理。謝謝你帶來的所有色彩。

Thanks.

謝謝。

Once again, ladies and gentlemen, (Operator Instructions)

女士們、先生們，（操作員指示）

Next, we will hear from David Fister at Raymondja. Please go ahead.

接下來，我們將聽取 Raymondja 的 David Fister 的演講。請繼續。

Hi, good morning, everybody.

大家好，早安。

Hey David.

嘿，大衛。

You touched a lot and we've touched on it a bit, and, you guys have been very proactive with credit, there's a lot of uncertainty and volatility in the market. I'm just curious as you dig into this, where are you focused on, what are you watching more closely and maybe where are you, are there any segments where you're seeing more pressure, just high level kind of how do you think about the impacts or what segments may Maybe be more impacted from the trade wars and tariffs or even those and just your approach to managing those.

你們談了很多，我們也談了一些，而且，你們在信貸方面非常積極主動，市場上有很多不確定性和波動性。我只是很好奇，當您深入研究這個問題時，您關注的重點在哪裡，您更密切關注的是什麼，也許您在哪裡，是否有任何領域讓您感到更大的壓力，只是高層您如何看待影響，或者哪些領域可能會受到貿易戰和關稅甚至這些的更大影響，以及您應對這些問題的方法。

Yeah, good morning, David. Michael Carnes, Chief Officer. Thanks for the question. So yeah, we, I guess just to kind of give you some insight into what's been happening here at Live Oak over the last quarter and what you can't see necessarily in the numbers yet today is our servicing team is super dedicated to understanding the portfolio, particularly on The SBA side of the equation are small business borrowers, which is what has been impacted, and things haven't, that there hasn't been additional stress or pressure. We're still navigating all of those things we talked about last quarter with economic challenges over the last few years and interest rates rapidly. Rising and our teams are dialed in. We're looking across the entire SBB portfolio and our commercial portfolio. We have a holistic approach. So there are industries think about auto dealerships, government contracting, where we are skeptical of new transactions, given the uncertainties related to government action. But overall our servicing team is all over the portfolio and additionally I'm inspired every day by the leadership of our servicing team.

是的，早上好，大衛。麥可‧卡恩斯 (Michael Carnes)，首席官。謝謝你的提問。是的，我想我們只是想讓您了解一下 Live Oak 上個季度發生的情況，而您今天在數字中不一定能看到的是，我們的服務團隊非常致力於了解投資組合，特別是在 SBA 方面，小企業借款人受到了影響，而事情並沒有受到影響，也沒有額外的壓力。我們仍在應對上個季度討論的所有問題，包括過去幾年的經濟挑戰和快速的利率變化。我們正在崛起，我們的團隊正在努力。我們正在檢視整個 SBB 投資組合和我們的商業投資組合。我們採取整體方法。因此，對於汽車經銷商、政府承包等行業，考慮到與政府行動相關的不確定性，我們對新的交易持懷疑態度。但總體而言，我們的服務團隊遍布整個投資組合，此外，我每天都受到我們服務團隊領導的啟發。

We have very customer focused leaders but also credit minded, and so I'm cautiously optimistic about, where we're headed from our portfolio standpoint. And the other things that give me confidence is things that BJ and Walt have already identified, which is really having consecutive quarters of low past dues is an encouraging sign, and the flat classified loan pool and lack of growth there is also very encouraging for me. So I don't think we're out of the woods, but cautiously optimistic about what we're heading.

我們的領導者非常注重客戶，但同時也注重信用，因此，從投資組合的角度來看，我對我們的發展方向持謹慎樂觀的態度。讓我充滿信心的其他因素是 BJ 和 Walt 已經確定的因素，即連續幾個季度的逾期率較低是一個令人鼓舞的跡象，而分類貸款池持平且缺乏增長也對我來說非常令人鼓舞。因此，我認為我們還沒有脫離險境，但對於未來的發展我們仍持謹慎樂觀的態度。

Yeah, I'll just add a little bit, David, just overall, in my opening comments I talked about, if you're a believer in Cecil.

是的，大衛，我只想補充一點，總的來說，在我開場白中我談到了，如果你相信塞西爾。

We're, we are proactively building reserves and have well in excess of our charge offs over the last several quarters and we, you can tell by how we are moving through the portfolio, whether it's looking at classified, whether it's looking at non-accruals, whether it's looking at how we're reserving.

我們正在積極建立儲備，並且在過去幾個季度中，我們的沖銷額已經遠遠超過預期，您可以透過我們在投資組合中的運作方式來判斷，無論是查看分類項目，還是查看非應計項目，還是查看我們如何儲備。

How we're tightening down on past dues, we are not kicking the can down the road. We are aggressively getting in front of any of our borrowers that we think may have an issue and helping them through this time. And if we can't, we are moving them through our risk rating system to classified, criticized, and to loss if we need to. So we're not, we're not waiting around and hoping things get better.

我們正在嚴厲追討逾期欠款，我們不會把問題拖延下去。我們會積極地聯繫任何我們認為可能有問題的借款人，並幫助他們度過這段時期。如果做不到，我們會透過風險評級系統對其進行分類、批評，必要時甚至損失處理。所以我們不會等待並希望事情會變得更好。

To Michael's point, absent what's going on in the environment with tariffs and inflation, uncertainty and everything going on in DC, I would have said we were in the latter half of the innings as it relates to getting through the small business credit cycle that we've been in the last two quarters.

對於邁克爾的觀點，如果不考慮關稅、通貨膨脹、不確定性以及華盛頓特區發生的一切環境因素，我會說我們正處於後半段，因為我們要度過過去兩個季度所經歷的小企業信貸週期。

Uncertainty in the environment now, who knows, but again, I point to how proactive we've been getting things through our pipeline, what the front end, the past dues look like now, and how healthy our reserves are. So I'm incredibly proud like Michael is of the entire team. We take credit incredibly seriously here. And it shows with how we are making sure that this place stays as safe and sound as it possibly can, and we help small business borrowers exactly when they need us to help them and maybe.

現在環境不確定，誰知道呢，但我再次指出，我們一直積極主動地透過我們的管道處理事情​​，前端、過去的欠款現在是什麼樣子，以及我們的儲備有多健康。因此，我和麥可一樣，為整個團隊感到無比自豪。我們非常重視信譽。這表明，我們正在盡可能確保這個地方的安全，並且當小型企業借款人需要我們幫助時，我們就會幫助他們。

Yeah sorry go ahead.

是的，抱歉，請繼續。

Sorry, and BJ, I think that if you look back a year ago, we've tightened the credit scores here a little bit. We are doing, not doing some things that we did a year ago, but the pipeline still continues to fill each quarter with a more discerning situation from the credit department. 100%.

抱歉，BJ，我認為如果回顧一年前，我們已經稍微收緊了這裡的信用評分。我們正在做的，不是做一年前做過的一些事情，但渠道仍然在每個季度繼續填充來自信貸部門的更加挑剔的情況。100%。

And maybe just digging into that, one of the things we, we've spent a lot of time over the past couple of years touching on credit and what makes y'all different. One of the things that I think is really important is kind of that that that we've talked about is the verticality of your business and how that gives you not only opportunities for growth but also helps on the credit side, basically as your as your bankers are sometimes consultants, right? Could you talk about how that's playing out today? Where is that verticality, where are you seeing the most benefit of that verticality to manage risk and is that playing out kind of how you expected?

也許只是深入研究這一點，我們在過去幾年中花了很多時間討論信用以及你們的不同之處。我認為真正重要的一點是我們討論過的是您業務的垂直性，以及它如何不僅為您提供增長機會，而且還在信貸方面提供幫助，基本上就像您的銀行家有時是顧問一樣，對嗎？能談談目前情況如何嗎？這種垂直性在哪裡？您認為這種垂直性在管理風險方面的最大益處是什麼？它是否按照您預期的方式發揮作用？

I mean, go ahead. Micheal.

我的意思是，繼續吧。麥可。

Yeah, I mean, well, one area where we have really leaned in to our vertical experts is with the uncertainties related to tariffs, right? So our we take the lead from A hard lenders who know those industries inside and out as to where the pitfalls could be based on government action or, changes in the administration's decisions and so we in credit take their lead and provide that data and insight to our portfolio managers and servicing people and that has made a big difference in just being educated and being able to educate our borrowers as well.

是的，我的意思是，我們真正依賴垂直專家的一個領域是與關稅相關的不確定性，對嗎？因此，我們以熟悉這些行業的資深放貸者為榜樣，了解政府行動或政府決策變化可能帶來的陷阱，因此，我們在信貸方面以他們為榜樣，向我們的投資組合經理和服務人員提供數據和見解，這對於我們接受教育以及教育我們的借款人都產生了很大的影響。

Well, I think an example too there, Mike and BJ would be we had our broadband people present to the board the other day, and four or five years ago we had an expert that came on our payroll to help us understand how we can make SBA loans to rural broadband providers.

嗯，我想也有一個例子，Mike 和 BJ 前幾天讓我們的寬頻人員向董事會做報告，四五年前，我們僱用了一位專家來幫助我們了解如何向農村寬頻提供者提供 SBA 貸款。

And now, Our own Pierce Bakk knows more about that business than just about anybody on the planet, and we're moving away from SPA loans to conventional loans. So it's the progression and the maturity of the theory of verticality.

現在，我們自己的 Pierce Bakk 比地球上的任何人都更了解這項業務，我們正在從 SPA 貸款轉向傳統貸款。所以這是垂直性理論的進步和成熟。

Okay, that's great. And then just maybe last one, two initiatives that that we've been focused on, one was the syndication side that was supported by the Simply Investment and then embedded finance. We, we've talked about those a bit, but, in the past, I was just hoping you could give us an update on those two initiatives and maybe some, other things on the horizon that that you're working on and excited about.

好的，太好了。然後也許最後一個，我們一直在關注的兩項舉措，一個是 Simply Investment 支持的銀團貸款方面，然後是嵌入式融資。我們已經討論過這些了，但是，過去我只是希望您能向我們介紹一下這兩項計劃的最新情況，以及您正在進行的和感興趣的一些其他事情。

Yeah, we talk about a couple of things here. One is, particularly in this environment, I've said multiple times to our people, let's keep the main thing the main thing right now, which is, being a great lender and building out our deposits platform, particularly checking.

是的，我們在這裡討論一些事情。一是，特別是在這種環境下，我已經多次對我們的員工說過，讓我們把現在最重要的事情放在第一位，那就是成為一個優秀的貸款機構，並建立我們的存款平台，特別是支票平台。

At the very same time we have this spirit of innovation from the founders that we're constantly looking for new ideas and things that are going to help us grow and pay off in the next 357, 10 years. Incubation of simply like you mentioned, is a great example.

同時，我們繼承了創辦人的創新精神，不斷尋找新想法和新事物，幫助我們在未來 357 年、10 年內成長並獲得回報。正如您所提到的，簡單的孵化就是一個很好的例子。

We had one of our developers. That had this idea. He was working closely with our head of syndications at the time.

我們有一位開發人員。有這個想法。當時他正與我們的辛迪加主管密切合作。

They felt like there was a better way. They came to us. We incubated it internally for a year and then once it was ready for prime time, we then raised some seed money from some outside investors and spun that out and that's That whether it's that or whether it was, some of the embedded banking work or some of the other things that we're doing around Live Oak Express and building a brand new technology platform with a very next generation AI driven partner, we're doing a lot of different things to TRY to build the business for the long term. But I also say, David, it's like a tale of two cities right now. We've got so much momentum from loan production, deposit production, checkings ramping, small dollar loans are ramping, our revenue is expanding, our expenses are well controlled, yet. The other city is, we're helping small business borrowers work through a credit cycle, and so, we've just got a lot going on, but we've got to make sure that we're just controlling what we can control right now, get through the environment, and I think once these clouds clear on credit.

他們覺得還有更好的方法。他們來到我們這裡。我們在內部孵化了一年，然後，當它準備好迎接黃金時段時，我們從一些外部投資者那裡籌集了一些種子資金，並將其分拆出來，無論是那樣，還是一些嵌入式銀行工作，或者我們圍繞 Live Oak Express 所做的一些其他事情，以及與下一代人工智能驅動的合作夥伴一起構建一個全新的技術平台，我們正在做很多不同的事情來嘗試建立長期業務。但我也說，大衛，現在的情況就像是兩個城市的故事。我們從貸款生產、存款生產、支票成長、小額美元貸款成長中獲得了巨大的動力，我們的收入不斷擴大，我們的支出得到了很好的控制。另一個城市是，我們正在幫助小型企業借款人度過信貸週期，因此，我們有很多事情要做，但我們必須確保我們只控制我們現在可以控制的事情，度過環境，我認為一旦這些信貸陰雲消散。

I think people are going to refocus on the strength and power of the business model that that we're continuing to build.

我認為人們將重新關注我們正在繼續建立的商業模式的優勢和威力。

That's great. Extremely helpful. Thanks everybody.

那太棒了。非常有幫助。謝謝大家。

Thanks David.

謝謝大衛。

Thank you. And at this time, we have no other questions registered, so I'll turn the call over to Chairman and CEO Chip Mahan for final comments.

謝謝。目前，我們還沒有其他問題，因此我將把電話轉給董事長兼首席執行官 Chip Mahan 進行最後的評論。

Thank you everyone for attending our Q1 call, and we shall see you in 90 days.

感謝大家參加我們的第一季電話會議，我們將在 90 天後與您見面。

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we ask that you please disconnect your line.

謝謝您，先生。女士們、先生們，今天的電話會議到此結束。再次感謝您的出席，此時，請您斷開線路。