James S. Mahan III, Chief Executive Officer of Live Oak Bancshares (LOB 1.81%), reported the indirect sale of 20,000 shares of Common Stock on Feb. 11 and Feb. 12, 2026, for a transaction value of approximately $810,000, according to a SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (indirect) | 20,000 |
| Transaction value | $810,000 |
| Post-transaction shares (indirect) | 6,454,875 |
Transaction value based on SEC Form 4 weighted average purchase price ($40.49).
Key questions
- What portion of Mahan's overall indirect holdings was affected?
This transaction involved 0.31% of his indirect holdings, a small fraction of his total shares through his trusts. - What was the context of the sale?
The sale was a part of a Rule 10b5-1 trading plan, where Mahan gets to plan the transaction ahead of time.
NYSE: LOB
Key Data Points
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $1.88 billion |
| Revenue (TTM) | $480.78 million |
| Net income (TTM) | $102.82 million |
| 1-year price change | 22.18% |
* 1-year price change calculated using Feb. 22, 2026 as the reference date.
Company snapshot
Live Oak Bancshares is a Wilmington, North Carolina-based regional bank holding company that offers commercial banking products and services, including deposit accounts, commercial and industrial loans, construction and real estate loans, and government-guaranteed loan services. It generates revenue primarily from interest income on loans and deposits, as well as fees from wealth management and investment advisory accounts.
What this transaction means for investors
Although Live Oak Banking Company, the bank that Live Oak Bancshares owns, may be one of the lesser-known banks compared to larger global banks, it’s still widely popular within the business sector.
In October 2025, the U.S. Small Business Administration (SBA) named it the most active SBA 7(a) lender in the nation by dollar volume. A 7(a) loan is the SBA’s primary business loan program that offers financial assistance to small businesses. The bank secured 2,280 SBA loan approvals in FY 2025, providing small business owners with over $2.8 billion in funding.
Live Oak Bancshares had its Q4 earnings report for fiscal year 2025, posting its fourth consecutive quarter of revenue growth, generating $150.93 million in revenue, a 61.75% increase from the previous year. The holding company also posted growth in net income and earnings per share (EPS).
While the Q4 results were an improvement over recent quarters, the company has still seen better numbers in previous fiscal years, which contributed to the company’s stock falling over the previous two years. The stock is currently up 18% (as of Feb. 21, 2026), but it may be difficult to decide whether to invest in a company that focuses on a niche market in small business banking.
