Form 4: Live Oak Bancshares Officer Exercises RSUs, Sells for Tax

Live Oak Bancshares' Chief Credit Officer, Michael Cairns, reported the exercise of Restricted Stock Units and subsequent tax-related dispositions of common stock.

Summary

• Michael Cairns, Chief Credit Officer of Live Oak Bancshares, Inc. (LOB), reported transactions involving the exercise of Restricted Stock Units (RSUs) and the disposition of common stock.
• On December 8, 2025, Cairns exercised 946 RSUs into voting common stock.
• Concurrently, on December 8, 2025, 421 shares of voting common stock were disposed of at a price of $32.95 per share, likely to cover tax liabilities associated with the RSU vesting and exercise.
• On December 9, 2025, Cairns exercised an additional 943 RSUs into voting common stock.
• On the same day, December 9, 2025, 420 shares of voting common stock were disposed of at a price of $33.02 per share, also likely for tax purposes.
• Following these transactions, Cairns beneficially owns 9,338 shares of voting common stock directly.
• Cairns continues to hold various tranches of Restricted Stock Units with future vesting schedules extending through August 2029, contingent on continuous service.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The RSU exercises indicate continued executive equity participation, which is generally viewed favorably. The subsequent sales are routine for tax purposes and do not suggest a negative outlook.

Positives

• The exercise of Restricted Stock Units demonstrates continued equity participation by a key executive, aligning management interests with shareholders.
• The transactions were made pursuant to a Rule 10b5-1 plan, indicating pre-planned, routine activity rather than discretionary trading based on immediate insider information.

Negatives

• A portion of the shares acquired through RSU exercise was immediately sold to cover tax obligations, which is a common practice but reduces the executive's direct shareholding from the gross amount vested.

Future Outlook

This Form 4 filing primarily reports past and scheduled insider transactions and does not contain forward-looking statements or guidance regarding the company's operational or financial performance.

Industry Context

This filing is a routine insider transaction report specific to Live Oak Bancshares and its Chief Credit Officer. It does not provide broader industry trends or competitive insights.

Stakeholder Impact

• Shareholders: The filing indicates a routine insider transaction, showing continued alignment of executive interests with shareholder value through equity compensation, with a minor reduction due to tax-related sales.
• Employees: The RSU vesting schedules highlight the company's use of long-term equity incentives for key personnel, which can be a positive for employee retention and motivation.

Next Steps

• Future vesting of remaining Restricted Stock Units on various dates through August 2029, contingent on Michael Cairns' continuous service to the company.

Key Dates

Keywords

Live Oak Bancshares, LOB, Michael Cairns, Chief Credit Officer, Form 4, Insider Trading, Restricted Stock Units, RSU, Common Stock, Stock Transactions, Equity Compensation