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.
Flawless balance sheet second-rate dividend payer.
Share Price & News
How has Luther Burbank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LBC has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LBC exceeded the US Mortgage industry which returned -14.2% over the past year.
Return vs Market: LBC underperformed the US Market which returned 17.1% over the past year.
Price Volatility Vs. Market
How volatile is Luther Burbank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
20 hours ago | Simply Wall StDon't Ignore The Fact That This Insider Just Sold Some Shares In Luther Burbank Corporation (NASDAQ:LBC)
1 month ago | Simply Wall StWould Shareholders Who Purchased Luther Burbank's(NASDAQ:LBC) Stock Year Be Happy With The Share price Today?
2 months ago | Simply Wall StAt US$10.26, Is Luther Burbank Corporation (NASDAQ:LBC) Worth Looking At Closely?
Is Luther Burbank undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LBC ($10.55) is trading above our estimate of fair value ($7.53)
Significantly Below Fair Value: LBC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LBC is poor value based on its PE Ratio (13.7x) compared to the US Mortgage industry average (11.4x).
PE vs Market: LBC is good value based on its PE Ratio (13.7x) compared to the US market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: LBC is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: LBC is overvalued based on its PB Ratio (0.9x) compared to the US Mortgage industry average (0.8x).
How is Luther Burbank forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LBC's forecast earnings growth (18.6% per year) is above the savings rate (2.2%).
Earnings vs Market: LBC's earnings (18.6% per year) are forecast to grow slower than the US market (24.1% per year).
High Growth Earnings: LBC's earnings are forecast to grow, but not significantly.
Revenue vs Market: LBC's revenue (10.5% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: LBC's revenue (10.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LBC's Return on Equity is forecast to be low in 3 years time (8.6%).
How has Luther Burbank performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LBC has high quality earnings.
Growing Profit Margin: LBC's current net profit margins (34.2%) are lower than last year (35.9%).
Past Earnings Growth Analysis
Earnings Trend: LBC's earnings have declined by 3.6% per year over the past 5 years.
Accelerating Growth: LBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LBC had negative earnings growth (-9.3%) over the past year, making it difficult to compare to the Mortgage industry average (7.6%).
Return on Equity
High ROE: LBC's Return on Equity (7.1%) is considered low.
How is Luther Burbank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: LBC's Assets to Equity ratio (12x) is moderate.
Allowance for Bad Loans: LBC has a sufficient allowance for bad loans (940%).
Low Risk Liabilities: 82% of LBC's liabilities are made up of primarily low risk sources of funding.
Loan Level: LBC has an appropriate level of Loans to Assets ratio (87%).
Low Risk Deposits: LBC's Loans to Deposits ratio (116%) is appropriate.
Level of Bad Loans: LBC has an appropriate level of bad loans (0.1%).
What is Luther Burbank current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LBC's dividend (2.18%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: LBC's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (4.3%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LBC has been paying a dividend for less than 10 years.
Growing Dividend: LBC has only been paying a dividend for 3 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30%), LBC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LBC's dividends in 3 years are forecast to be well covered by earnings (22.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Simone Lagomarsino (59 yo)
Ms. Simone F. Lagomarsino is an Independent Director at Hannon Armstrong Sustainable Infrastructure Capital, Inc since July 30, 2019. She serves as Member of Community Depository Institutions Advisory Coun ...
CEO Compensation Analysis
Compensation vs Market: Simone's total compensation ($USD2.61M) is about average for companies of similar size in the US market ($USD2.03M).
Compensation vs Earnings: Insufficient data to compare Simone's compensation with company performance.
|CEO, President & Director||1.58yrs||US$2.61m||0.35% |
|Executive VP & CFO||14.58yrs||US$1.05m||0.31% |
|Executive VP||6.58yrs||US$917.44k||0.075% |
|Executive VP and Chief Operations & Technology Officer||0.58yr||no data||0.017% |
|Investor Relations||no data||no data||no data|
|Senior VP & Director of Single Family Residential Lending||no data||no data||0.023% |
|Executive VP & Chief Risk Officer||no data||no data||0.12% |
|Senior VP & Director of Income Property Lending||no data||no data||0.080% |
|Executive VP & Chief Credit Officer||no data||no data||0.16% |
|Executive VP & Head of Retail Banking||no data||no data||no data|
Experienced Management: LBC's management team is considered experienced (4.1 years average tenure).
|CEO, President & Director||1.58yrs||US$2.61m||0.35% |
|Independent Director||21.58yrs||US$185.00k||0.052% |
|Lead Independent Director||no data||US$235.00k||0.12% |
|Independent Director||3.58yrs||US$160.00k||0.068% |
|Independent Director||6yrs||US$135.00k||0.086% |
|Chairman of the Board||no data||US$793.58k||61.12% |
|Independent Director||8.58yrs||US$185.00k||0.064% |
Experienced Board: LBC's board of directors are considered experienced (6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LBC insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Luther Burbank Corporation's company bio, employee growth, exchange listings and data sources
- Name: Luther Burbank Corporation
- Ticker: LBC
- Exchange: NasdaqGS
- Founded: 1983
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$552.758m
- Shares outstanding: 52.39m
- Website: https://www.lutherburbanksavings.com
Number of Employees
- Luther Burbank Corporation
- 520 Third Street
- Fourth Floor
- Santa Rosa
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LBC||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Dec 2017|
|3QM||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Dec 2017|
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 ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/13 00:21|
|End of Day Share Price||2020/08/12 00:00|
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.