Live Oak Bancshares, Inc.

and thank you for standing by welcome to the second quarter 2021 live oak bank shares earnings conference call at this time all participant lines are in listen only mode after the presentation there will be a question and answer session to ask a question during the session you will need to press star then one on your telephone keypad please be advised that today's conference may be recorded if you require operator assistance please press star then zero I'd now like to hand the conference over to Greg Seward, General Counsel, Live Oak Bank Shares. Please go ahead.

Thank you, and good morning, everyone. Welcome to Live Oak's second quarter 2021 earnings conference call. We're webcasting live over the Internet, and this call is being recorded. To access the call over the Internet and review the presentation materials and commentary that we will reference on the call, please visit our website at investor.liveoakbank.com and go to today's call on our event calendar for supporting materials. Our second quarter earnings release is also available on our website. Before we get started, I would like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual results to differ materially from our expectations are detailed in the materials accompanying this call and in our SEC filings. We do not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of today's call. Information about any non-GAAP financial measures referenced, including reconciliation of those measures to GAAP measures, can also be found on our SEC filings and in the presentation materials and commentary. I will now turn the call over to Chip Mahan, our Chairman and Chief Executive Officer.

Thanks, Greg, and good morning to all. As you stare at the last six quarter results, allow me to review today's agenda. It has proven to be our best quarter ever. And what a way for Brett Canes to go out with a bang. Brett, it's been 13 short years since I found you in a chemical plant on the Cape Fear River wearing a hard hat and safety glasses. It goes without saying that it's been an honor to serve with you. In our next call, we will explain Brett's next new and exciting role in our company. And yes, to all who know how this works, today's preso, And each quarterly prezo is all Brett. Huntley and I just show up. Brett, thanks again for all your fine work these last 24 quarters as a public company. And now back to the best quarter ever. Highlights are a $44 million gain in the value of Greenlight shares brought on by the cash sale of $15 million, causing a remark of our carrying value. It is important to note that we took $4 million of the $15 million in cash gains and gave it to our folks, once again excluding the senior management team. You will recall that we were distributed $7.5 million to our folks at the end of PPP 1.0, given the long hours they spent helping American small business get through this clunky process. This $44 million one-time non-operating game is a nice addition to Tier 1 capital. Secondly, Originations reached an all-time high of $1.1 billion while credit quality continues to improve. Third, as the accountants and PPP make the unpacking of our financials more difficult, we're proud to announce the dramatic increase in pre-tax, pre-provision earnings as the operating leverage and our business kicks in. Lastly, Neil Underwood will discuss live venture investments as well as a canopy update before we turn things over to Huntley for a deep dive. Greg, let's move to slide five and talk about credit quality. So as you stare at this, I'm going to ask Steve, as we did last time, a couple of questions. Steve, last quarter you discussed where the ACL was going. What is your vision over the next several quarters?