Live Oak Bancshares Inc. reported second-quarter earnings that easily beat Wall Street expectations due to strong loan growth, according to a filing Wednesday with the Securities and Exchange Commission.

The Wilmington, North Carolina-based bank reported net income of $9.8 million, or 27 cents per share, compared to net income of $123,000 in the same quarter in 2016. Analysts were expecting earnings of 24 cents per share.

Live Oak reported loan and lease originations of $586.5 million in the second quarter, which is a record. Its loan origination in the second quarter of 2016 was $356.9 million.

“Our highest-ever origination level in the second quarter fully demonstrates the growing power of the Live Oak business model,” said Chief Executive Officer James S. Mahan in a statement.

Live Oak’s shares fell 35 cents to $24.95 in Wednesday trading.

Live Oak was founded in 2008 and specializes in originating loans for new and expanding businesses. Instead of using branches, the company operates entirely online.

Net interest income for the second quarter increased to $18.4 million compared to $9.9 million for the second quarter of 2016.

Nonperforming loans decreased to $21.9 million in the second quarter of 2017 from $22.5 million at the end of the prior quarter.

Total deposits increased by $232.6 million, or 14.2 percent, to $1.87 billion at June 30.