520 Third Street, Fourth Floor, Santa Rosa, CA 95401 (844) 446-8201
LUTHER BURBANK CORPORATION REPORTS EARNINGS FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 2019
Quarterly Cash Dividend of $0.0575 Per Common Share Declared
SANTA ROSA, Calif. (July 29, 2019) – Luther Burbank Corporation (NASDAQ: LBC) (the “Company”), the holding company for Luther Burbank Savings (the “Bank”), today reported net income of $11.7 million and $23.7 million, or $0.21 and $0.42 diluted earnings per common share (“EPS”), for the quarter and six months ended June 30, 2019, respectively, compared to net income of $12.0 million, or $0.21 EPS, for the linked quarter and $11.2 million and $22.3 million, or $0.20 and $0.39 EPS, for the same periods last year, respectively. Pre-tax, pre-provision earnings for the quarter and six months ended June 30, 2019 was $17.3 million and $34.6 million, respectively, compared to $17.2 million for the linked quarter and $17.1 million and $33.8 million for the same periods last year, respectively.
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 proud to announce our financial results for the quarter and six months ended June 30, 2019. Total assets grew at a measured pace during the quarter, increasing to $7.1 billion. Asset growth was primarily driven by loan growth of $122 million, resulting in net loans at quarter end of $6.3 billion. We generated new deposits of $153 million during the quarter, bringing total deposits to $5.2 billion. Net interest income decreased to $30.6 million, or $1.5 million below the linked quarter. The decline was primarily attributable to a $1.8 million increase in interest expense caused by an 11 basis point increase in the cost of our deposits compared to the linked quarter, as well as an increase in our average total deposits during the quarter. Net interest margins were 1.75% and 1.86% during the quarters ended June 30, 2019 and March 31, 2019, respectively. The 11 basis point compression was due to a 3 basis point decline in the yield on loans and the aforementioned 11 basis point increase in our cost of deposits. Despite the challenges resulting from the current interest rate environment, I remain optimistic that our efforts to improve our deposit structure will ultimately have a positive impact on our funding costs. In addition, we maintain a very disciplined approach to expense management and, as a result, we are one of the most efficient companies within our peer group, with an efficiency ratio of 46% for the quarter and a noninterest expense to average total assets ratio of only 84 basis points.”
Ms. Lagomarsino continued, “During the quarter, we repurchased 366,701 shares of our common stock at an average price of $10.22 per share, and since the inception of our stock repurchase program, we've repurchased 933,001 shares
The following information was filed by Luther Burbank Corp (LBC) on Monday, July 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.