James S. Mahan III, Chief Executive Officer of Live Oak Bancshares (LOB 0.21%), sold 10,000 shares for a transaction value of ~$351,300 through indirect holdings on Dec. 12, 2025, as disclosed in the SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (indirect) | 10,000 |
| Transaction value | ~$351,300 |
| Post-transaction shares (indirect through the James S. Mahan Revocable Trust) | 3,087,844 |
| Post-transaction value (indirect ownership through the James S. Mahan Revocable Trust) | ~$109 million |
Transaction value based on SEC Form 4 weighted average purchase price ($35.13); post-transaction value based on Dec. 12, 2025 market close ($35.31).
Key questions
- What was the structure and context of this insider sale?
The entire disposition involved 10,000 shares sold indirectly through the James S. Mahan Revocable Trust. Mr. Mahan holds other company shares indirectly through the Marguerite D. Mahan Revocable Trust, 2021 Chip Mahan Family and Charitable Trust, 2021 Peggy Mahan Family Trust, and Peapod II, LLC, with no direct holdings involved either before or after the transaction. - How significant is this trade relative to Mr. Mahan’s recent activity and remaining capacity?
The 10,000-share size is consistent with the recent median for Mr. Mahan's sell transactions, and the post-sale balance leaves only indirect holdings. - What is the impact on overall ownership and what entities retain the remaining shares?
This transaction decreased Mr. Mahan’s total and indirect holdings by 0.32%; the remaining 3,087,844 shares are all indirectly held in the James S. Mahan Revocable Trust. More than another three million shares are held across the identified trusts and LLCs. - How does the sale price compare to prevailing market levels and one-year performance?
The average sale price of around $35.13 per share was just below the Dec. 12, 2025, close of $35.31, and comes amid a one-year total return of -19.97% for the stock as of the transaction date.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $533.05 million |
| Net income (TTM) | $68.61 million |
| Dividend yield | 0.30% |
| 1-year price change | -20.30% |
* 1-year price change calculated using Dec. 12, 2025 as the reference date.
Company snapshot
- Live Oak Bancshares offers commercial banking products and services, including deposit accounts, commercial and industrial loans, real estate loans, and government-guaranteed loan settlement and securitization services.
- It generates revenue primarily through net interest income from lending activities, as well as fee-based income from wealth management, investment advisory, and specialized financial services.
- The company serves individuals, small businesses, and professionals, with a focus on clients in North Carolina and broader U.S. markets seeking tailored financial solutions.
Live Oak Bancshares is a regional bank holding company with a diversified financial services platform and a focus on commercial banking for small business clients.
What this transaction means for investors
The disposition of Live Oak Bancshares stock by CEO James S. Mahan does not appear to be cause for alarm. He still indirectly retained over six million shares in the company across the identified trusts and LLCs.
Mr. Mahan's sale comes at a time when Live Oak Bancshares stock experienced an upswing. His disposition of shares at a price of $35.13 was not far from the stock's 52-week high of $41.56 reached in January of 2025. Given this, it looks like Mr. Mahan was taking advantage of the rise in share price to lock in some gains.
Live Oak Bancshares saw third quarter revenue grow 2% year over year to $146.1 million as its total assets grew 16% year over year to $14.67 billion. This was due to strong loan production and growth in deposits.
The financial institution's business performance is solid, but its price-to-earnings ratio is a bit elevated, making now a good time to sell but not necessarily to buy. Wait for the share price to drop before deciding to invest.
Glossary
Indirect holdings: Shares owned through trusts, LLCs, or other entities rather than in the individual's own name.
Direct holdings: Shares owned personally and registered directly to the individual, not through intermediaries.
Form 4: A required SEC filing disclosing insider trades of company securities by executives, directors, or major shareholders.
Revocable trust: A legal entity allowing the owner to retain control and make changes, often used for estate planning and asset management.
LLC (Limited Liability Company): A business structure offering liability protection and flexible ownership, sometimes used to hold investments.
Disposition: The act of selling or otherwise transferring ownership of an asset, such as company shares.
Median sell cadence: The typical frequency or size of recent share sales by an insider, used for comparison.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Dividend yield: Annual dividend income expressed as a percentage of the current share price.
TTM: The 12-month period ending with the most recent quarterly report.
Beneficial ownership: The true ownership of shares, even if held indirectly through trusts or other entities.
Insider sale: The sale of company stock by an executive, director, or major shareholder, typically reported to regulators.
