Live Oak Bancshares hits over one-year low after disclosing material weakness

Live Oak Bancshares' shares LOB.N fall as much as 6.3% to $26.50, hitting their lowest since October 2023

Stock last down 3.4% at $27.34

Regional lender late Tuesday filed its annual report and disclosed a material weakness in internal controls related to its loan review process

Ineffective controls impacted bank's ability to timely identify risk rating downgrades and the impact to allowance for credit losses - LOB

Piper Sandler says it views the material weakness as a negative especially as credit quality has worsened in the small business administration space

Brokerage expects LOB to resolve the issue by enhancing its loan review process and internal controls rating

LOB stock down 31% YTD