Form 4: Live Oak Bancshares Officer Converts RSUs, Sells Shares

Live Oak Bancshares' Chief Banking Officer, Mark Michael Moroz, converted restricted stock units into common stock and subsequently sold shares to cover tax liabilities.

Summary

• Mark Michael Moroz, Chief Banking Officer of Live Oak Bancshares, Inc. (LOB), reported transactions on February 17, 2026.
• Moroz acquired 1,580 shares of voting common stock through the conversion of restricted stock units (RSUs).
• Following this acquisition, Moroz beneficially owned 12,737 shares directly.
• Concurrently, Moroz disposed of 703 shares of voting common stock at a price of $40.75 per share, likely to cover tax liabilities associated with the RSU vesting.
• After these transactions, Moroz directly beneficially owns 12,034 shares of voting common stock.
• Moroz continues to hold 69,980 restricted stock units (RSUs) across several grants with various vesting schedules extending into 2027.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event. While there's a sale of shares, it's a standard tax-related transaction following RSU vesting, and the executive retains a substantial equity stake, indicating continued commitment.

Positives

• The conversion of RSUs into common stock indicates the vesting of previously granted equity awards, which is a positive for the executive as it represents earned compensation.
• The executive continues to hold a significant number of common shares (12,034) and a substantial amount of unvested RSUs (69,980), demonstrating continued alignment with shareholder interests.

Negatives

• The sale of 703 shares, even if for tax purposes, reduces the executive's direct ownership in the company.

Future Outlook

The filing details future vesting schedules for a significant number of Restricted Stock Units held by the Chief Banking Officer, indicating continued long-term equity incentives and alignment with company performance.

Industry Context

StockSavvy.ai notes that insider transactions, particularly those involving RSU vesting and subsequent tax-related sales, are common occurrences in the banking industry. Such filings provide transparency into executive compensation structures and equity ownership, which are key considerations for investors evaluating corporate governance and management alignment.

Comparison to Industry Standards

• StockSavvy.ai observes that the practice of executives receiving equity compensation in the form of Restricted Stock Units (RSUs) and subsequently selling a portion upon vesting to cover tax obligations is a standard industry practice across publicly traded companies, including those in the financial sector like JPMorgan Chase, Bank of America, and Wells Fargo.
• The specific number of shares and the vesting schedule are company-specific, but the mechanism is typical. The sale of 703 shares at $40.75 to cover taxes on 1,580 vested shares implies a tax rate consistent with typical income and capital gains tax rates for high-income earners in the U.S.

Stakeholder Impact

• Shareholders: Provides transparency into executive equity ownership and compensation. The executive's continued significant holding of shares and RSUs aligns their interests with shareholders.
• Employees: The RSU vesting demonstrates the company's commitment to long-term incentive plans for its executives.

Next Steps

• Future vesting of 69,980 Restricted Stock Units according to their respective schedules, with the earliest vesting beginning December 9, 2025, and the latest installments extending to February 9, 2027.

Key Dates

Recommendation

This Form 4 filing reports a routine insider transaction involving the vesting of restricted stock units and a subsequent tax-related sale. It does not provide new fundamental information about the company's operations, financial performance, or strategic direction that would warrant a change in investment recommendation. The executive maintains a substantial equity position, which is a positive for alignment, but the transaction itself is not a strong signal for buying or selling.

Keywords

Live Oak Bancshares, LOB, Insider Trading, Form 4, Restricted Stock Units, RSU Conversion, Stock Sale, Executive Compensation, Mark Michael Moroz, Chief Banking Officer