520 Third Street, Fourth Floor, Santa Rosa, CA 95401 (844) 446-8201
LUTHER BURBANK CORPORATION REPORTS EARNINGS FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2019
Quarterly Cash Dividend of $0.0575 Per Common Share Declared
SANTA ROSA, Calif. (October 23, 2019) – Luther Burbank Corporation (NASDAQ: LBC) (the “Company”), the holding company for Luther Burbank Savings (the “Bank”), today reported net income of $12.7 million and $36.4 million, or $0.23 and $0.65 diluted earnings per common share (“EPS”), for the quarter and nine months ended September 30, 2019, respectively, compared to net income of $11.7 million, or $0.21 EPS, for the linked quarter and $12.1 million and $34.5 million, or $0.21 and $0.61 EPS, for the same periods last year, respectively. Pre-tax, pre-provision earnings for the quarter and nine months ended September 30, 2019 was $17.5 million and $52.1 million, respectively, compared to $17.3 million for the linked quarter and $17.7 million and $51.5 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 pleased to announce our financial results for the quarter and nine months ended September 30, 2019. Total assets increased to $7.2 billion during the quarter. Asset growth during the quarter was primarily attributable to liquidity generated from new deposit relationships. Deposits increased by $127.5 million, to $5.4 billion, during the quarter, driven by strong retail deposit growth. Our net interest margin improved to 1.84% during the quarter ended September 30, 2019 compared to 1.75% during the linked quarter. The 9 basis point expansion was primarily due to a 15 basis point improvement in loan yields during the quarter caused by a combination of swap income earned and an increase in loan prepayment fees collected. Loan originations were $382.4 million during the current quarter compared to $457.5 million for the linked quarter and $463.4 million for the same period last year, while prepayment speeds increased as customers moved to long-term fixed rate loans to benefit from the current rate environment. As a result, loans held-for-investment modestly declined by $7.2 million during the quarter as compared to the linked quarter. In addition, we continue to maintain a 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 48% and a noninterest expense to average total assets ratio of 90 basis points for the quarter.”
Ms. Lagomarsino continued, “During the quarter, we repurchased 111,000 shares of our common stock at an average price of $10.46 per share, and since the inception of our stock repurchase program, we've repurchased 1,044,001 shares at an average price of $9.85 per share, or a 9% discount to our book value. There is approximately $4.7 million for additional share repurchases remaining in the program.”
The following information was filed by Luther Burbank Corp (LBC) on Wednesday, October 23, 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.