On Monday, North Carolina-based Trust Co of the South disclosed in an SEC filing that it sold 162,500 shares of Live Oak Bancshares (LOB 1.69%) during the fourth quarter, an estimated $5.44 million transaction based on quarterly average pricing.
What Happened
In its quarterly disclosure to the Securities and Exchange Commission released Monday, Trust Co of the South reported a sale of 162,500 shares of Live Oak Bancshares (LOB 1.69%). The estimated value of the shares sold was $5.44 million, calculated using the quarter’s average closing price. The fund’s position at quarter-end was 167,500 shares. The net position value declined by $5.87 million from the prior quarter, accounting for both sales and price changes.
What Else to Know
Live Oak Bancshares represents 0.93% of Trust Co of the South’s 13F reportable AUM following the transaction.
Top five holdings after the filing:
- NYSEMKT:DFAT: $108.41 million (17.4% of AUM)
- NYSEMKT:DFUV: $82.10 million (13.2% of AUM)
- NYSEMKT:DFAC: $51.05 million (8.2% of AUM)
- NYSEMKT:VOO: $42.59 million (6.8% of AUM)
- NYSEMKT:DFIC: $34.83 million (5.6% of AUM)
As of Friday, Live Oak Bancshares shares were priced at $34.71, down 9.6% over the past year and underperforming the S&P 500 by 28.5 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $533.05 million |
| Net income (TTM) | $69.56 million |
| Dividend yield | 0.3% |
| Price (as of Friday) | $34.71 |
Company Snapshot
- Live Oak Bancshares offers commercial banking products and services, including deposit accounts, commercial and industrial loans, real estate lending, and government-guaranteed loan settlement and securitization.
- The company generates revenue primarily from net interest income on loans and deposits, as well as fee income from wealth management, investment advisory, and related financial services.
- It serves small businesses, professionals, and high-net-worth individuals across the United States, with a focus on the North Carolina region.
Live Oak Bancshares is a regional bank holding company with nearly $1 billion in trailing twelve-month revenue and a diversified portfolio of commercial banking services. The company leverages a technology-driven approach to deliver tailored financial solutions to small businesses and professionals, while also offering wealth management and investment advisory services. Its focus on government-guaranteed lending and specialized financial products provides a competitive edge in the regional banking sector.
What this transaction means for investors
Trims like this are often more revealing than outright exits. Live Oak is still growing, but the pace and profile of that growth increasingly matter in a higher-rate environment. Operationally, the company posted a solid third quarter. Net income attributable to common shareholders rose to $25.6 million, or $0.55 per diluted share, with loan production hitting $1.65 billion and deposits up nearly $700 million sequentially. Net interest margin edged up to 3.33%, and total assets climbed to $14.7 billion, up more than 16% year over year.
On paper, that’s a bank still executing, so what about the market? Live Oak’s shares are down nearly 10% over the past year, underperforming the S&P 500 by almost 30 percentage points. That divergence helps explain why a diversified allocator would scale exposure rather than double down, especially when this holding sits well outside the portfolio’s core positions.
Glossary
13F reportable assets under management (AUM): The portion of a fund’s assets required to be disclosed in SEC Form 13F filings.
Quarter-end position: The number of shares or value of a holding at the end of a financial quarter.
Trading activity: The buying or selling of securities within an investment portfolio during a specific period.
Government-guaranteed loan: A loan backed by a government agency, reducing risk for the lender if the borrower defaults.
Securitization: The process of pooling financial assets and selling them as securities to investors.
Net interest income: The difference between interest earned on assets and interest paid on liabilities, such as deposits.
Wealth management: A suite of financial services for individuals, including investment advice and estate planning.
Investment advisory: Professional guidance on investment decisions and portfolio management for clients.
Dividend yield: The annual dividend income expressed as a percentage of the share price.
Fund holding: A security or asset owned by an investment fund.
Regional bank holding company: A company that owns and controls one or more banks operating in a specific geographic area.
TTM: The 12-month period ending with the most recent quarterly report.
