Live Oak Bancshares CEO Lobbed Up 10,000 Shares For Sale in December
Key Points
The transactions conducted by LOB's CEO only impacted indirect shares of voting common stock.
The CEO continued to sell more shares of the company throughout December 2025.
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James S. Mahan III, Chief Executive Officer of Live Oak Bancshares (NYSE:LOB), disposed of 10,000 shares through indirect open-market sales on Dec. 10, 2025, as disclosed in this SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (indirect) | 10,000 |
| Transaction value | ~$343,300 |
| Post-transaction shares (direct) | 0 |
| Post-transaction shares (indirect) | 3,097,844 |
Transaction value based on SEC Form 4 weighted average sale price ($34.33).
Key questions
- How significant is the transaction relative to Mahan's remaining equity exposure?
This sale represented only 0.32% of Mahan's aggregate indirect holdings, leaving the vast majority of his beneficial interest, which is still over 3 million shares, held via trust and affiliated entities. - What does the trade reveal about direct versus indirect insider ownership?
Mahan's direct ownership remained at zero, with all shares sold in this filing sourced from indirect holdings managed through trusts such as the James S. Mahan Revocable Trust, underscoring a preference for indirect equity exposure and estate planning vehicles.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $434.21 million |
| Net income (TTM) | $68.61 million |
| Dividend yield | 0.33% |
| *1-year price change | -1.71% |
* 1-year price change calculated using Jan. 12, 2025 as the reference date.
Company snapshot
- Live Oak Bancshares operates as a regional bank holding company with a diversified suite of commercial banking and financial services.
- It offers a range of commercial banking products and services, including various deposit accounts, commercial and industrial loans, real estate lending, and government-guaranteed loan settlement and securitization services.
- The bank generates revenue primarily through net interest income from lending activities, fees from wealth management and investment advisory services, as well as the servicing of government-backed loans.
What this transaction means for investors
Since the mentioned transaction, Mahan continued to sell shares indirectly through various trust companies. His most recent transaction was on Dec. 19, 2025, where he was left with 3.02,547 shares, 30,000 less than what he had on Dec. 10. However, these sales were predetermined and not conducted by the trusts in the moment. Using a Rule 10b5-1 trading plan, the sale of shares was planned on Aug. 27, 2025. to be executed on specific dates in December.
Investors may want to wait until LOB's next earnings report for Q4 FY 2025, as that comes out soon on Jan. 21, 2026. The company's financial performance has been underwhelming in recent years, but it is on track to close FY 2025 with its highest annual revenue since FY 2022.
Investors should review the upcoming earnings report to determine if the company has any newer long-term plans to help turn things around for the better.
Glossary
Indirect ownership: Holding securities through trusts or affiliated entities, not in the individual's direct personal account.
Open-market sale: The sale of securities on a public exchange, rather than through private transactions or company buybacks.
SEC Form 4: A required filing disclosing insider trades by company officers, directors, or significant shareholders.
Beneficial interest: The right to benefit from assets held by another party, such as shares in a trust.
Trust (as in revocable trust): A legal arrangement allowing assets to be managed by a trustee for beneficiaries, often for estate planning.
Insider ownership: Shares held by a company's executives, directors, or significant shareholders, indicating their personal investment in the firm.
Capacity reduction: Gradual decrease in the size of a position or holding, often to manage risk or diversify.
Government-guaranteed loan: A loan backed by a government agency, reducing lender risk in case of borrower default.
Securitization: The process of pooling financial assets and selling them as securities to investors.
Net interest income: The difference between interest earned on loans and interest paid on deposits or borrowings.
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.
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Adé Hennis has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Live Oak Bancshares. The Motley Fool has a disclosure policy.
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