Diagnose/Live Oak Banking Company

Live Oak — Illustrative Re-Rating (public FDIC data, not CSI)

DELIVEREDComposite 3 — FairM&A intent

Imported from FDIC public data · cert 58665 · financials as of Q1 2026 · Wilmington, NC

Profile and the ratios below are real public call-report data. Component conditions are suggested from these ratios; ratings and findings are illustrative — not the bank's actual supervisory data (CSI).

Total capital (RBC)

11.87%

Tier 1 capital

10.61%

Noncurrent loans

4.00%

ROA

0.89%

Loans / deposits

88.80%

Total findings

Material / noncompliance

Discountable %

67%

Findings (9)

Comp	Description	Nature	Sev	Status	Ref
A	ILLUSTRATIVE: SBA 7(a) and CRE concentration in the held-for-investment portfolio exceeds peer benchmarks without commensurate reserve build.	Material Financial Risk	2	Open	ILLUSTRATIVE-01
S	ILLUSTRATIVE: Interest-rate sensitivity of gain-on-sale revenue underestimated under a sustained higher-for-longer scenario.	Material Financial Risk	1	Open	ILLUSTRATIVE-02
M	ILLUSTRATIVE: Third-party / fintech-partner oversight program lacks a formal risk-rating methodology for embedded-lending channels.	Significant Noncompliance	1	In Remediation	ILLUSTRATIVE-03
C	ILLUSTRATIVE: Capital planning process does not formally document stress scenario selection rationale.	Process/Governance	1	Open	—
A	ILLUSTRATIVE: Loan review documentation lacks a consistent format for criticizing SBA-guaranteed credits.	Documentation	1	Open	—
E	ILLUSTRATIVE: Gain-on-sale earnings forecasting model lacks a formal governance and validation schedule.	Process/Governance	1	Open	—
L	ILLUSTRATIVE: Contingency funding plan not tested under a deposit-concentration runoff scenario in the prior 12 months.	Process/Governance	1	Open	—
M	ILLUSTRATIVE: Board risk committee charter does not specify quorum and voting requirements.	Process/Governance	1	Open	—
S	ILLUSTRATIVE: Market risk policy requires update to reflect the current product mix and hedging strategies.	Documentation	1	Open	—