Form 4: LOB CEO Mahan Sells 20,000 Shares via 10b5-1 Plan

Live Oak Bancshares CEO James S. Mahan III reported the sale of 20,000 shares of common stock through pre-arranged Rule 10b5-1 trading plans.

Summary

• James S. Mahan III, CEO, Director, and 10% Owner of Live Oak Bancshares, Inc. (LOB), reported the sale of 20,000 shares of voting common stock.
• The sales occurred on February 25, 2026, and February 26, 2026.
• These transactions were executed under a Rule 10b5-1 trading plan adopted on August 27, 2025.
• The shares were sold at weighted average prices ranging from $39.2119 to $39.997 per share.
• Following these transactions, Mahan's indirect beneficial ownership through the James S. Mahan Revocable Trust decreased to 2,987,844 shares.
• Mahan also indirectly beneficially owns shares through the Marguerite D. Mahan Revocable Trust (3,032,547 shares), 2021 Chip Mahan Family and Charitable Trust (127,167 shares), 2021 Peggy Mahan Family Trust (127,167 shares), and Peapod II, LLC (140,150 shares).

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. While insider sales can sometimes be a negative signal, the execution under a Rule 10b5-1 plan mitigates concerns that it's based on new, adverse information, suggesting a planned financial move.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned divestment strategy rather than a reaction to recent negative company news.

Negatives

• A significant insider sale by the CEO, Director, and 10% owner could be perceived negatively by some investors, potentially signaling a desire to diversify holdings or a lack of confidence, despite the 10b5-1 plan.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider sales, even those executed under a 10b5-1 plan, are routinely monitored by investors for potential signals regarding management's perception of future company performance. While a 10b5-1 plan suggests a pre-determined sale for diversification or liquidity, rather than a reaction to immediate news, a CEO's divestment of a significant number of shares in the banking sector can still draw attention, especially given current economic uncertainties affecting financial institutions.

Stakeholder Impact

• Shareholders: May interpret the sale as a slight negative signal, though mitigated by the 10b5-1 plan, potentially leading to minor short-term sentiment shifts.
• Employees: No direct impact on employees is indicated by this filing.
• Customers: No direct impact on customers is indicated by this filing.
• Suppliers: No direct impact on suppliers is indicated by this filing.
• Creditors: No direct impact on creditors is indicated by this filing.

Key Dates

Recommendation

The insider sale by the CEO, while notable, was conducted under a pre-arranged 10b5-1 plan, suggesting a planned diversification or liquidity event rather than a reaction to new, adverse company information. This typically leads to a neutral to slightly cautious interpretation. Without additional company-specific news or broader market context, the filing alone does not warrant a change from a 'hold' position.

Keywords

Live Oak Bancshares, LOB, James S. Mahan III, Insider Sale, Form 4, Rule 10b5-1, CEO Stock Sale, Beneficial Ownership, Financial Services, Banking