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

Live Oak Bancshares CEO James S. Mahan III sold 20,000 shares of common stock in early March 2026, executed under a pre-arranged Rule 10b5-1 trading plan.

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 March 4, 2026, and March 5, 2026.
• On March 4, 2026, 10,000 shares were sold at a weighted average price of $36.6872 per share.
• On March 5, 2026, two separate transactions occurred: 8,861 shares were sold at $35.3735 per share, and 1,139 shares were sold at $35.8894 per share.
• These transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on August 27, 2025.
• Following these transactions, Mahan's indirect beneficial ownership through the James S. Mahan Revocable Trust decreased to 2,967,844 shares.
• Mahan also holds indirect beneficial ownership 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 selling can sometimes raise concerns, the execution under a pre-planned 10b5-1 plan mitigates negative interpretations, suggesting personal financial management rather than a lack of confidence in the company.

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

• Insider selling, even under a 10b5-1 plan, can sometimes be perceived negatively by the market as it reduces the insider's direct stake in the company.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Management Comments

• The reporting person hereby undertakes to provide upon request to the SEC staff, the Issuer or a security holder of the Issuer full information regarding the number of shares and prices at which the trades were effected.

Industry Context

StockSavvy.ai notes that insider selling, even under a 10b5-1 plan, is a routine event for executives managing personal finances and diversification. In the banking sector, such sales are typically viewed in the context of the company's overall financial health and market performance, rather than as an immediate indicator of distress, especially when pre-scheduled.

Comparison to Industry Standards

• This Form 4 filing details a standard insider transaction under a Rule 10b5-1 plan. There are no specific company or project results to compare against global benchmarks in this type of filing.

Stakeholder Impact

• Shareholders: May observe a slight decrease in insider ownership, but the 10b5-1 plan context generally lessens concerns.

Next Steps

• The reporting person undertakes to provide full information regarding the number of shares and prices at which the trades were effected upon request.

Key Dates

Recommendation

The insider sales by CEO James S. Mahan III were conducted under a pre-arranged Rule 10b5-1 trading plan, which typically indicates a planned personal financial strategy rather than a reaction to new company-specific information. While a reduction in insider ownership is noted, the pre-scheduled nature of the transactions suggests no immediate negative implications for the company's operational performance or future prospects. Therefore, a 'hold' recommendation is appropriate as this filing does not present new information warranting a change in investment thesis.

Keywords

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