{"data":{"id":"sw_0260111a3f134361e852","slug":"live-oak-bancshares-8-375-series-a-preferred-trades-above-par-a-year-after-debut","title":"Live Oak Bancshares' 8.375% Series A Preferred Trades Above Par a Year After Debut","subheadline":"The bank holding company's newly issued preferred stock offers a fresh yield reference point as it changes hands slightly above its $25 liquidation preference.","summary":"Live Oak Bancshares' 8.375% Series A non-cumulative perpetual preferred, issued in August 2025, recently traded near $25.32-$25.40, a modest premium to its $25 par value, with a current yield of 8.27% ahead of its 2030 call date.","body":"Live Oak Bancshares' 8.375% Series A Non-Cumulative Perpetual Preferred Stock, which began trading roughly a year ago, has been changing hands at a slight premium to its $25 liquidation preference, according to security terms verified against the company's SEC filings. The preferred, listed under symbol LOB-P-A and also quoted as LOB-A, LOBprA and LOB.PRA, recently traded at $25.32, putting it about 1.28%, or $0.32, above par and producing a current yield of 8.27% against its 8.375% original coupon.\n\nThe premium pricing means investors buying the shares today would pay slightly more than the $25 redemption value the company would owe if it exercised its right to call the preferred, which becomes possible starting September 15, 2030. A preferred trading above par typically reflects that its fixed coupon remains attractive relative to comparable instruments at current market pricing, one interpretation supported by the security's own current-yield calculation relative to its stated coupon, though the shares' 52-week range of $24.61 to $26.61 shows the price has also traded below par at other points over the past year.\n\nFor income-focused investors, the issue offers a data point on how a newly minted bank preferred is being priced roughly a year after issuance. The stock, structured as depositary shares each representing a 1/40th interest in a full preferred share with a $1,000 liquidation value, pays quarterly on the 15th of March, June, September and December, with the most recent ex-dividend date recorded as June 2, 2026, and a per-share payment of $0.52344 in the March 2026 cycle following a partial-period payment of $0.23845 in September 2025, consistent with the August 4, 2025 issuance date. This discovery first stood out in data tracked on Preferred Stock AI, a Madison Labs research site.\n\nBackground on the issuer helps frame the coupon level. Live Oak Bancshares is a Wilmington, North Carolina-based bank holding company for Live Oak Bank, an online-focused commercial bank founded in 2008 that went public in 2015. The company operates as one of the larger U.S. Small Business Administration lenders by volume, with a national platform concentrated in SBA-guaranteed loans and, to a smaller extent, USDA rural and agricultural lending, targeting select industry verticals the company has identified as lower credit risk. According to the prospectus covering the Series A offering, Live Oak sold 4,000,000 depositary shares and intended to direct net proceeds of approximately $96,150,000 toward general corporate purposes.\n\nThe preferred's pricing sits within a broader universe the underlying data set groups as bank-sector preferreds, where the average issue in that comparison set was shown trading at a discount of roughly 15.1% to par, versus the Series A's premium of about 1.3%, though such peer comparisons depend on the composition of the sample and do not by themselves indicate relative value.\n\nAttention to Live Oak's securities has coincided with activity in the company's common stock. Live Oak Bancshares (NYSE: LOB) shares recently traded near $39.03, within a 52-week range of $26.77 to $42.89, according to the market data referenced alongside the preferred listing. Coverage from thelincolnianonline.com reported on August 22, 2026, that an analyst price target on the common stock had been raised to $45.00, a view attributed to that outlet's reporting and not independently verified here. The same outlet reported on August 23, 2026, that William Blair Investment Management LLC had established a new position in Live Oak Bancshares' common shares. Separately, Zacks.com published commentary on August 24, 2026, suggesting the stock \"may find a bottom soon,\" a characterization specific to that publication's analysis rather than a fact established elsewhere.\n\nThe preferred's above-par pricing comes against a broader fixed-income backdrop in which yield-seeking investors have other short-duration options to weigh; Yahoo Finance reported on September 1, 2026, that some certificates of deposit were offering annual percentage yields of up to 4.30%, a comparison point for investors evaluating income instruments generally, though CDs and perpetual preferred stock carry different risk, liquidity and duration characteristics.\n\nInvestors and analysts tracking LOB-P-A going forward are likely to watch whether the premium to par persists or narrows as the security's 2030 call date approaches, how Live Oak's underlying SBA lending business performs amid the credit and rate environment reflected in coverage from outlets such as Simply Wall St and Kalkine Media, and whether the company issues additional preferred or capital instruments that could offer updated coupon benchmarks. Any changes in the company's credit profile, dividend history or call decisions would factor into how the Series A preferred is priced relative to its $25 liquidation preference over time.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"News","license":"Free to republish, in full or in part, with attribution to SourceWire and a link to the original article. No fees, registration, or permission required.","quality_score":86,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/LOB-P-A","featured_image":null,"published_at":"2026-09-01T11:24:22.054223+00:00","updated_at":"2026-09-01T11:24:22.054223+00:00","is_demo":false,"attribution":"Via SourceWire. Discovered via Preferred Stock AI.","attribution_html":"Via SourceWire. Discovered via Preferred Stock AI."},"meta":{"demo_data":false}}