520 Third Street, Fourth Floor, Santa Rosa, CA 95401 (844) 446-8201
FOR IMMEDIATE RELEASE
LUTHER BURBANK CORPORATION REPORTS EARNINGS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2020
Fourth Quarter 2020 Highlights
•Net income of $8.7 million, or $0.17 per diluted share for the quarter
•Net interest margin of 2.13% compared to 2.03% for Q3 2020
•Loan production of $385.2 million during the quarter
•Over 99% of COVID-19 loan modifications have returned to payment status
•Retail deposit growth of $32.6 million during the quarter
•Prepaid $150.0 million of FHLB borrowings with a weighted average interest rate of 2.95%
•Book value per share of $11.75
•Approval of $20.0 million stock repurchase plan in October 2020
•Quarterly cash dividend of $0.0575 per common share declared
SANTA ROSA, Calif. (January 26, 2021) – Luther Burbank Corporation (NASDAQ: LBC) (the “Company”), the holding company for Luther Burbank Savings (the “Bank”), today reported net income of $8.7 million and $39.9 million, or $0.17 and $0.75, diluted earnings per common share (“EPS”), for the quarter and year ended December 31, 2020, respectively.
Simone Lagomarsino, President and Chief Executive Officer, stated, “I'm proud to report our financial results for the quarter and year ended December 31, 2020. During the quarter, net income dipped to $8.7 million, or $0.17 per diluted share compared to $14.3 million, or $0.27 per diluted share during the linked quarter. This decline was entirely attributable to a $10.4 million non-recurring cost incurred in connection with the prepayment of $150.0 million of long-term fixed rate FHLB borrowings in late December. Excluding the impact of this nonrecurring cost, net income for the quarter and year ended December 31, 2020 would have been $16.1 million, or $0.31 EPS, and $47.3 million, or $0.89 EPS, respectively. The weighted average interest rate and remaining term to maturity on these borrowings was 2.95% and 2.5 years, respectively. The prepayments were a strategic decision to utilize low yielding excess liquidity to remove high cost borrowings to benefit our net interest margin in future quarters. During the current quarter, net interest margin improved to 2.13% compared to 2.03% during the linked quarter. Our net interest margin during the quarter benefited from a 16 basis point decline in the cost of our interest bearing deposits as deposits continue to reprice down to lower interest rates. I'm also encouraged by the strength of loan demand that we experienced during the current quarter. Loan origination volume this quarter of $385.2 million was $149.9 million
The following information was filed by Luther Burbank Corp (LBC) on Tuesday, January 26, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.