Live Oak Bancshares (LOB), Bancorp (TBBK) fall as Fed rate-cut hopes fade

Live Oak Bancshares and The Bancorp shares traded lower on May 14, 2026, as investors repriced bank stocks after major Wall Street firms pushed back expectations for Federal Reserve interest-rate cuts to December 2026 from September 2026. Goldman Sachs and Bank of America revised their rate outlooks after stronger jobs and inflation data suggested the U.S. economy may not be slowing enough to justify earlier Fed easing. The shift lifted Treasury yields, while Bank of America analysts said the risk of another Fed rate increase may be underpriced. Live Oak Bancshares traded at $36.70, up 5.7% year to date but 12.1% below its 52-week high of $41.75 set in February 2026. The stock has posted only nine moves of more than 5% over the past year, making the latest decline notable. Higher-for-longer rates can support bank margins but may pressure loan demand and credit growth.