Live Oak: The Small Business Bank

This episode is brought to you by:
Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 driveable global models handbuilt by a team of sector-focused analysts, 35+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick.

(00:02:16) - (First question) - The unique market opportunity that the founders saw when starting this business

(00:04:39) - How Live Oak differentiated its approach to make a more successful business model

(00:06:03) - How they approached the SBA loan program differently

(00:09:04) - The Live Oak sales strategy 

(00:10:06) - Their strategy for trading partially guaranteed government-backed loans 

(00:12:12) - Overcoming challenges to attract clients to specialized loans

(00:15:44) - A brief history of Chip Mahan’s career

(00:20:23) - Chip’s technology-centric approach without relying on physical locations

(00:22:49) - Traditional banking security with high-upside ventures, contrasting with neo banks 

(00:27:51) - The balance between the traditional lending business and technology-focused ventures

(00:31:48) - How Live Oak intends to scale the business 

(00:36:52) - How the surge in SBA programs during COVID impacted Live Oak

(00:40:02) - Handling the effects of the Silicon Valley Bank collapse

(00:42:32) - The strategy for deposit growth and how pivotal is it for the bank's competitiveness

(00:46:13) - How Live Oak navigates threats from entities employing similar strategies 

(00:53:36) - The significance of Chip Mahan's role and his influence on the organization's future 

(00:56:43) - Potential risks that Live Oak faces

(00:59:44) - Lessons learned from researching Live Oak