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Luther Burbank

Nasdaq:LBC
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LBC
Nasdaq
$605M
Market Cap
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Last updated 2019/08/17 01:13
Company description

Luther Burbank Corporation operates as the bank holding company for Luther Burbank Savings that provides various banking products and services for real estate investors, professionals, entrepreneurs, high net worth individuals, and commercial businesses. The last earnings update was 8 days ago. More info.

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LBC Share Price and Events
7 Day Returns
2.9%
NasdaqGS:LBC
-2.5%
US Mortgage
-3.1%
US Market
1 Year Returns
-1.6%
NasdaqGS:LBC
-2.5%
US Mortgage
-1.7%
US Market
LBC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Luther Burbank (LBC) 2.9% -0.5% 6.2% -1.6% - -
US Mortgage -2.5% -3.7% -2.5% -2.5% 22.1% 38.3%
US Market -3.1% -5.3% -1.2% -1.7% 28.2% 35%
1 Year Return vs Industry and Market
  • LBC matched the Mortgage industry (-2.5%) over the past year.
  • LBC matched the United States of America Market (-1.7%) over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Luther Burbank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Luther Burbank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Luther Burbank.

NasdaqGS:LBC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $11.28 * 7.9% 		$0.89
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $11.28
Discount Rate (Cost of Equity) See below 13.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LBC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.806 (1 + (1- 21%) (202.59%)) 		1.735
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.73
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.735 * 5.96%) 		13.07%

Discounted Cash Flow Calculation for NasdaqGS:LBC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Luther Burbank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:LBC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7.9% – 13.07%) * $11.28) 		$-0.58
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.58 / (13.07% - 2.73%) 		$-5.65
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $11.28 + $-5.65 		$5.63
NasdaqGS:LBC Discount to Share Price
Calculation Result
Value per share (USD) From above. $5.63
Current discount Discount to share price of $10.77
= -1 x ($10.77 - $5.63) / $5.63 		-91.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Luther Burbank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Luther Burbank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Luther Burbank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LBC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.82
NasdaqGS:LBC Share Price ** NasdaqGS (2019-08-16) in USD $10.77
United States of America Mortgage Industry PE Ratio Median Figure of 128 Publicly-Listed Mortgage Companies 13.56x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Luther Burbank.

NasdaqGS:LBC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LBC Share Price ÷ EPS (both in USD)

= 10.77 ÷ 0.82

 13.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luther Burbank is good value based on earnings compared to the US Mortgage industry average.
  • Luther Burbank is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Luther Burbank's expected growth come at a high price?
Raw Data
NasdaqGS:LBC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts		 6.7%per year
United States of America Mortgage Industry PEG Ratio Median Figure of 48 Publicly-Listed Mortgage Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

NasdaqGS:LBC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.06x ÷ 6.7%

 1.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luther Burbank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Luther Burbank's assets?
Raw Data
NasdaqGS:LBC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $10.67
NasdaqGS:LBC Share Price * NasdaqGS (2019-08-16) in USD $10.77
United States of America Mortgage Industry PB Ratio Median Figure of 144 Publicly-Listed Mortgage Companies 1.1x
United States of America Market PB Ratio Median Figure of 5,261 Publicly-Listed Companies 1.67x
NasdaqGS:LBC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LBC Share Price ÷ Book Value per Share (both in USD)

= 10.77 ÷ 10.67

 1.01x

* Primary Listing of Luther Burbank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luther Burbank is good value based on assets compared to the US Mortgage industry average.
Show me more potentially undervalued companies in the Mortgage industry
X
Value checks
We assess Luther Burbank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
    5. Luther Burbank has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Luther Burbank expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Luther Burbank expected to grow at an attractive rate?
  • Luther Burbank's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Luther Burbank's earnings growth is positive but not above the United States of America market average.
  • Luther Burbank's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LBC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LBC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 6.7%
NasdaqGS:LBC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 5.2%
United States of America Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 9.2%
United States of America Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LBC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LBC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 138 50 4
2019-12-31 129 46 4
NasdaqGS:LBC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 130 70 46
2019-03-31 129 67 46
2018-12-31 126 59 45
2018-09-30 121 72 55
2018-06-30 121 68 60
2018-03-31 124 77 68
2017-12-31 122 78 69
2017-09-30 125 41 62
2017-06-30 124 39 59
2017-03-31 117 25 54
2016-12-31 115 30 52

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Luther Burbank's earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
  • Luther Burbank's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LBC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Luther Burbank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LBC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.90 0.91 0.89 4.00
2019-12-31 0.82 0.82 0.82 4.00
NasdaqGS:LBC Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.82
2019-03-31 0.82
2018-12-31 0.80
2018-09-30 1.02
2018-06-30 1.21
2018-03-31 1.47
2017-12-31 1.62
2017-09-30 1.48
2017-06-30 1.41
2017-03-31 1.28
2016-12-31 1.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Luther Burbank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Luther Burbank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Luther Burbank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Luther Burbank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Luther Burbank's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Luther Burbank's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Luther Burbank's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Luther Burbank's 1-year earnings growth is negative, it can't be compared to the US Mortgage industry average.
Earnings and Revenue History
Luther Burbank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Luther Burbank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LBC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 129.73 46.40 57.55
2019-03-31 128.80 45.97 57.46
2018-12-31 125.62 45.06 55.87
2018-09-30 120.57 54.88 51.58
2018-06-30 120.60 60.50 50.11
2018-03-31 124.34 68.19 50.36
2017-12-31 121.78 69.38 50.72
2017-09-30 124.82 62.24 54.68
2017-06-30 123.80 59.19 55.72
2017-03-31 116.63 53.86 53.82
2016-12-31 115.18 52.12 53.68
2015-12-31 98.98 35.39 52.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Luther Burbank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Luther Burbank used its assets less efficiently than the US Mortgage industry average last year based on Return on Assets.
  • Unable to establish if Luther Burbank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Luther Burbank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Luther Burbank has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Luther Burbank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Luther Burbank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Luther Burbank Company Filings, last reported 1 month ago.

NasdaqGS:LBC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 597.47 1,225.04 93.91
2019-03-31 588.30 1,265.81 104.58
2018-12-31 581.15 1,299.28 73.10
2018-09-30 571.40 1,118.26 60.70
2018-06-30 562.18 1,306.83 76.02
2018-03-31 553.75 1,314.21 74.43
2017-12-31 549.75 1,145.28 59.58
2017-09-30 433.46 964.52 87.09
2017-06-30 416.29 1,516.43 86.86
2017-03-31 407.51 1,314.34 75.80
2016-12-31 404.38 1,267.77 46.43
2015-12-31 371.30 825.17 62.35
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Luther Burbank has an acceptable proportion of non-loan assets held.
  • Luther Burbank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Luther Burbank are broadly funded by customer deposits.
  • Luther Burbank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Luther Burbank has a sufficient allowance for bad loans.
  • Luther Burbank has an acceptable level of bad loans (less than 2%).
Show me more healthy companies in the Mortgage industry
X
Financial health checks
We assess Luther Burbank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Luther Burbank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Luther Burbank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.14%
Current annual income from Luther Burbank dividends. Estimated to be 2.29% next year.
If you bought $2,000 of Luther Burbank shares you are expected to receive $43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Luther Burbank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).
  • Luther Burbank's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LBC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 96 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LBC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.26 3.00
2019-12-31 0.23 3.00
NasdaqGS:LBC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-09 0.230 2.198
2019-07-29 0.230 2.145
2019-05-10 0.230 2.179
2019-04-29 0.230 2.200
2019-03-04 0.230 2.217
2019-01-28 0.230 2.274
2018-11-09 0.230 2.420
2018-10-25 0.230 2.379
2018-08-09 0.230 2.120
2018-07-26 0.230 2.135
2018-05-10 0.230 1.892
2018-04-26 0.230 1.837
2018-03-16 0.230 1.917
2018-01-25 0.230 1.782

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Luther Burbank has been paying a dividend for less than 10 years.
  • Luther Burbank has only been paying a dividend for 2 years, and since then there has been no growth.
Current Payout to shareholders
What portion of Luther Burbank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Luther Burbank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Luther Burbank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Luther Burbank has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Luther Burbank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Simone Lagomarsino
COMPENSATION $0
AGE 58
TENURE AS CEO 0.6 years
CEO Bio

Ms. Simone F. Lagomarsino is an Independent Director at Hannon Armstrong Sustainable Infrastructure Capital, Inc since July 30, 2019. She has been the Chief Executive Officer and President of Luther Burbank Corporation and Luther Burbank Savings since January 2, 2019. Ms. Lagomarsino served as President and Chief Executive Officer of Western Bankers Association, the organization resulting from the January 1, 2018 merger of the California Bankers Association and the Western Independent Bankers Association. Prior to that merger, she served as the President and Chief Executive Officer of the California Bankers Association since April 2017. Ms. Lagomarsino served as President and Chief Executive Officer of Heritage Oaks BanCorp. (“Company”) since September 10, 2011 until 2016 and also served as its Interim Chief Financial Officer since January 31, 2014. Ms. Lagomarsino served as Chief Executive Officer of Heritage Oaks Bank (“Bank”), a subsidiary of company since September 10, 2011 and served as its President since March 28, 2016. She has more than 20 years of experience in executive positions at financial institutions in Southern California. She served as the President of company and bank from September 10, 2011 to January 5, 2015. Ms. Lagomarsino was a director, President and Chief Executive Officer of HEOP since September, 2011. She served as the Interim Chief Financial Officer of company and bank from January 31, 2014 to March 19, 2014. She served as an Interim Chief Financial Officer of company since November 6, 2012. She served as an Executive Vice President at FirstFed Financial Corp. since January 2006. She served as the President of the Retail Banking Division and Executive Vice President of First Federal Bank of California, A Federal Savings Bank. She served as the Chief Executive Officer and President at Kinecta Federal Credit Union from June 2006 to January 2010. Her banking career includes Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer positions at a variety of community and regional financial institutions. She provided consulting services to several financial firms, including consulting with respect to development and implementation of strategic plans and acting as a strategic advisor to boards and management. She served as the President of Retail Banking Division of FirstFed Financial Corp. since January 2006. She served as the President and Chief Executive Officer of Hawthorne Financial Corp. and Hawthorne Savings, F.S.B. (the Bank) since December 1999. Ms. Lagomarsino served as an Executive Vice President and Chief Financial Officer of Hawthorne Financial Corp. and Hawthorne Savings F.S.B. from February 1999 to December 1999. She served as an Executive Vice President and Chief Financial Officer of First Plus Bank from March 1998 to February 1999, Senior Vice President of Imperial Financial Group from March 1997 to March 1998 and Senior Vice President and Chief Financial Officer of Ventura County National Bancorp. and Ventura County National Bank from March 1995 to March 1997. She served as Secretary of Ventura County National. She served as a Financial Consultant for Prudential Securities from September 1993 to March 1995 and Independent Bank Consultant from April 1993 to September 1993. She served as Chief Executive Officer of Premier Bank from April 1991 to April 1993 and Chief Financial Officer from December 1990 to April 1991. She served as Senior Vice President of Budgets and Financial Planning of City National Bank from June 1990 to December 1990. Ms. Lagomarsino served as the Chief Financial Officer of Warner Center Bank from April 1988 to June 1990. She has been a Director of Luther Burbank Corporation and Luther Burbank Savings since November 30, 2018. She has been a Director of Pacific Premier Bancorp and Pacific Premier Bank since April 1, 2017. She served as a Director of Heritage Oaks Bank and Heritage Oaks BanCorp. since September 10, 2011. She served as a Director of Hawthorne Financial Corp. and Hawthorne Savings F.S.B. (the Bank) since December 1999. She serves as council to the Dean of the Business School at CLU. She serves as Director of The Foundation for the Performing Arts Center of San Luis Obispo and Sierra Vista Regional Medical Center. She served as Director of the Alzheimer’s Association’s California Central Coast California Bankers Chapter,Sierra. Ms. Lagomarsino earned a Masters in Business Administration with an emphasis in finance from Claremont Graduate School and Bachelor of Arts in Economics from Claremont McKenna College. In 2013, Ms. Lagomarsino was honored by American Banker as Community Banker of the Year. Ms. Lagomarsino serves on the board of directors of the Federal Home Loan Bank of San Francisco.

CEO Compensation
  • Insufficient data for Simone to compare compensation growth.
  • Simone's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Luther Burbank management team in years:

2.6
Average Tenure
56
Average Age
  • The tenure for the Luther Burbank management team is about average.
Management Team

Simone Lagomarsino

TITLE
CEO, President & Director
AGE
58
TENURE
0.6 yrs

Laura Tarantino

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
54
TENURE
13.6 yrs

Liana Prieto

TITLE
Executive VP
COMPENSATION
$944K
AGE
40
TENURE
5.6 yrs

John Biggs

TITLE
COMPENSATION
$1M
AGE
64
TENURE
0.6 yrs

Brad Satenberg

TITLE
Investor Relations
AGE
48

Tammy Mahoney

TITLE
Executive VP & Chief Risk Officer
AGE
52
TENURE
2.6 yrs

Alexander Stefani

TITLE
Senior VP & Director of Income Property Lending
AGE
39

John Cardamone

TITLE
Executive VP & Chief Credit Officer
AGE
69

Jose Casillas

TITLE
Senior VP & Director of Retail Banking
AGE
64

Lisa Kepler

TITLE
Director of Residential Lending
AGE
59
Board of Directors Tenure

Average tenure and age of the Luther Burbank board of directors in years:

5
Average Tenure
65
Average Age
  • The tenure for the Luther Burbank board of directors is about average.
Board of Directors

Victor Trione

TITLE
Chairman of the Board
COMPENSATION
$793K
AGE
72

Simone Lagomarsino

TITLE
CEO, President & Director
AGE
58
TENURE
0.8 yrs

Brad Shuster

TITLE
Independent Director
COMPENSATION
$125K
AGE
64
TENURE
20.6 yrs

Jack Krouskup

TITLE
Independent Director
COMPENSATION
$125K
AGE
70
TENURE
7.6 yrs

Tom Wajnert

TITLE
Lead Independent Director
COMPENSATION
$175K
AGE
76

Anita Newcomb

TITLE
Independent Director
COMPENSATION
$75K
AGE
65
TENURE
5 yrs

John Erickson

TITLE
Independent Director
COMPENSATION
$100K
AGE
57
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
03. May 19 Sell Liana Prieto Individual 01. May 19 01. May 19 -20,000 $10.56 $-200,506
15. Feb 19 Buy Simone Lagomarsino Individual 14. Feb 19 15. Feb 19 10,000 $10.50 $104,601
11. Feb 19 Buy John Hamann Individual 20. Dec 18 20. Dec 18 3,000 $8.34 $25,020
18. Dec 18 Sell Jack Krouskup Individual 13. Dec 18 13. Dec 18 -12,722 $9.21 $-116,350
14. Dec 18 Buy John Erickson Individual 12. Dec 18 12. Dec 18 2,600 $9.34 $24,284
10. Dec 18 Buy Victor Trione Individual 06. Dec 18 06. Dec 18 15,000 $10.12 $150,100
06. Dec 18 Buy Victor Trione Individual 04. Dec 18 04. Dec 18 10,000 $9.45 $94,477
05. Nov 18 Buy Scott Frazee Individual 05. Nov 18 05. Nov 18 2,600 $9.55 $24,830
21. Aug 18 Buy Anita Newcomb Individual 20. Aug 18 20. Aug 18 1,000 $10.87 $10,870
X
Management checks
We assess Luther Burbank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Luther Burbank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Many Luther Burbank Corporation (NASDAQ:LBC) Shares Did Insiders Buy, In The Last Year?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Luther Burbank Luther Burbank Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Executive VP, Liana Prieto, sold US$201k worth of shares at a price of US$10.56 per share. … NasdaqGS:LBC Recent Insider Trading, July 24th 2019 Insiders at Luther Burbank Have Sold Stock Recently The last three months saw significant insider selling at Luther Burbank. … It's great to see that Luther Burbank insiders own 73% of the company, worth about US$447m.

Simply Wall St - –

Read This Before You Buy Luther Burbank Corporation (NASDAQ:LBC) Because Of Its P/E Ratio

We'll apply a basic P/E ratio analysis to Luther Burbank Corporation's (NASDAQ:LBC), to help you decide if the stock is worth further research. … Check out our latest analysis for Luther Burbank How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Luther Burbank: P/E of 12.84 = $10.49 ÷ $0.82 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St - –

Should Luther Burbank Corporation (NASDAQ:LBC) Be Part Of Your Dividend Portfolio?

Dividend paying stocks like Luther Burbank Corporation (NASDAQ:LBC) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Luther Burbank's EPS are effectively flat over the past five years. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings per share are down, and to our mind Luther Burbank has not been paying a dividend long enough to demonstrate its resilience across economic cycles.

Simply Wall St - –

Should You Take Comfort From Insider Transactions At Luther Burbank Corporation (NASDAQ:LBC)?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So before you buy or sell Luther Burbank Corporation (NASDAQ:LBC), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Luther Burbank.

Simply Wall St - –

Did You Manage To Avoid Luther Burbank's 22% Share Price Drop?

That downside risk was realized by Luther Burbank Corporation (NASDAQ:LBC) shareholders over the last year, as the share price declined 22%. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Simply Wall St - –

Need To Know: Luther Burbank Corporation (NASDAQ:LBC) Insiders Have Been Buying Shares

So before you buy or sell Luther Burbank Corporation (NASDAQ:LBC), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Luther Burbank. … Overall, Luther Burbank insiders were net buyers last year

Simply Wall St - –

Do You Know What Luther Burbank Corporation's (NASDAQ:LBC) P/E Ratio Means?

We'll show how you can use Luther Burbank Corporation's (NASDAQ:LBC) P/E ratio to inform your assessment of the investment opportunity. … Luther Burbank has a P/E ratio of 10.24, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St - –

What Does Luther Burbank Corporation's (NASDAQ:LBC) PE Ratio Tell You?

Luther Burbank Corporation (NASDAQ:LBC) is trading with a trailing P/E of 9x, which is lower than the industry average of 19.2x. … While this makes LBC appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … View our latest analysis for Luther Burbank

Simply Wall St - –

With An ROE Of 12.31%, Has Luther Burbank Corporation's (NASDAQ:LBC) Management Done Well?

and want to begin learning the link between Luther Burbank Corporation (NASDAQ:LBC)’s return fundamentals and stock market performance. … Luther Burbank Corporation (NASDAQ:LBC) outperformed the thrifts and mortgage finance industry on the basis of its ROE – producing a higher 12.31% relative to the peer average of 5.71% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St - –

Does Luther Burbank Corporation's (NASDAQ:LBC) PE Ratio Signal A Buying Opportunity?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LBC Price per share = $12 Earnings per share = $1.468 ∴ Price-Earnings Ratio = $12 ÷ $1.468 = 8.2x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … Ideally, we want to compare the stock’s P/E ratio to the average of companies that have similar characteristics as LBC, such as size and country of operation.

Simply Wall St - –

Company Info

Description

Luther Burbank Corporation operates as the bank holding company for Luther Burbank Savings that provides various banking products and services for real estate investors, professionals, entrepreneurs, high net worth individuals, and commercial businesses. The company offers interest and noninterest-bearing transaction accounts, certificates of deposit, and money market accounts. It also provides commercial real estate loans, including first mortgage loans for the purchase, refinance, or build-out of tenant improvements on investor owned multifamily residential properties, as well as loans for the purchase, refinance, or improvement of office, retail, and light industrial properties; single family residential loans; and mortgage products, such as a portfolio of 30-year fixed rate first mortgage and a forgivable second mortgage. In addition, the company offers ATM machines, debit cards, and online and mobile banking services; engages in the real estate investment and equal housing lending activities; and issues trust preferred securities. As of January 28, 2019, it had operations in California, Oregon, and Washington through nine branches in California; 1 branch in Washington; and 9 lending offices located throughout the market area, including Santa Rosa, Los Angeles, San Francisco, San Jose, San Diego, and Seattle. The company was founded in 1983 and is headquartered in Santa Rosa, California.

Details
Name: Luther Burbank Corporation
LBC
Exchange: NasdaqGS
Founded: 1983
$604,702,640
56,146,949
Website: http://www.lutherburbanksavings.com
Address: Luther Burbank Corporation
520 Third Street,
Fourth Floor,
Santa Rosa,
California, 95401,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LBC Common Stock Nasdaq Global Select US USD 08. Dec 2017
Number of employees
Current staff
Staff numbers
278
Luther Burbank employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 01:13
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/07/31
Last earnings filing: 2019/08/09
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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