520 Third Street, Fourth Floor, Santa Rosa, CA 95401 (844) 446-8201
LUTHER BURBANK CORPORATION REPORTS EARNINGS FOR THE QUARTER ENDED MARCH 31, 2019
Quarterly Cash Dividend of $0.0575 Per Common Share Declared
SANTA ROSA, Calif. (April 29, 2019) – Luther Burbank Corporation (NASDAQ: LBC) (the “Company”), the holding company for Luther Burbank Savings (the “Bank”), today reported net income of $12.0 million, or $0.21 diluted earnings per common share (“EPS”), for the quarter ended March 31, 2019, compared to net income of $10.6 million, or $0.19 EPS, for the linked quarter and $11.1 million, or $0.20 EPS, for the same period last year. Pre-tax, pre-provision earnings for the quarter ended March 31, 2019 was $17.2 million, compared to $15.0 million for the linked quarter and $16.8 million for the same period last year.
Pre-tax, pre-provision earnings, a non-GAAP financial measure, is presented because management believes this financial metric provides stockholders with useful information for evaluating the profitability of the Company. A schedule reconciling our GAAP net income to pre-tax, pre-provision earnings is provided in the tables below.
Simone Lagomarsino, President and Chief Executive Officer, stated, “I'm pleased to announce our financial results for the quarter ended March 31, 2019. During the quarter, we grew our assets to approximately $7.0 billion, with total loans and deposits increasing to $6.1 billion and $5.1 billion, respectively. In addition, net income increased to $12.0 million or $1.4 million above the linked quarter. This increase in earnings was primarily attributable to a $341 thousand increase in net interest income, as well as the absence of non-recurring expenses incurred during the previous period in connection with our CEO succession plan. Net interest margins were 1.86% and 1.88% during the quarters ended March 31, 2019 and December 31, 2018, respectively, as the decline in our margins moderated due to a slowing in the growth of our cost of funds, which increased by 11 basis points during the current quarter as compared to 15 basis points during the linked quarter. Our team continues to focus on improving our deposit structure as we concentrate our efforts and resources on developing deposit relationships with a lower funding cost. In addition, we remain one of the most efficient companies within our peer group, with an efficiency ratio of 49% for the quarter.”
Ms. Lagomarsino continued, “During the quarter, we repurchased 393,000 shares at an average price of $9.88 per share, and since the inception of our stock repurchase program, we've repurchased 566,300 of our shares at an average price of $9.49 per share, or a 9% discount to our book value. There is approximately $9.6 million remaining in the program.”
The following information was filed by Luther Burbank Corp (LBC) on Monday, April 29, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.