NasdaqGS:LBC

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

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.


Market Performance


7 Day Return

8.1%

LBC

10.1%

US Mortgage

-0.04%

US Market


1 Year Return

3.4%

LBC

-14.2%

US Mortgage

17.1%

US Market

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.


Shareholder returns

LBCIndustryMarket
7 Day8.1%10.1%-0.04%
30 Day12.6%-0.5%5.1%
90 Day20.3%43.5%19.5%
1 Year5.8%3.4%-11.8%-14.2%19.6%17.1%
3 Yearn/a-0.1%-7.2%42.5%33.3%
5 Yearn/a12.0%-0.3%75.1%56.2%

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

Valuation

Is Luther Burbank undervalued compared to its fair value and its price relative to the market?

13.75x

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).


Next Steps

Future Growth

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

18.6%

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%).


Next Steps

Past Performance

How has Luther Burbank performed over the past 5 years?

-3.6%

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.


Next Steps

Financial Health

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


Balance Sheet


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%).


Next Steps

Dividend

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

2.18%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Simone Lagomarsino (59 yo)

1.58yrs

Tenure

US$2,605,480

Compensation

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.


Leadership Team

NamePositionTenureCompensationOwnership
Simone Lagomarsino
CEO, President & Director1.58yrsUS$2.61m0.35%
$ 1.9m
Laura Tarantino
Executive VP & CFO14.58yrsUS$1.05m0.31%
$ 1.7m
Liana Prieto
Executive VP6.58yrsUS$917.44k0.075%
$ 411.9k
Parham Medhat
Executive VP and Chief Operations & Technology Officer0.58yrno data0.017%
$ 91.5k
Bradley Satenberg
Investor Relationsno datano datano data
Lisa Kepler
Senior VP & Director of Single Family Residential Lendingno datano data0.023%
$ 126.7k
Tammy Mahoney
Executive VP & Chief Risk Officerno datano data0.12%
$ 684.0k
Alexander Stefani
Senior VP & Director of Income Property Lendingno datano data0.080%
$ 441.9k
John Cardamone
Executive VP & Chief Credit Officerno datano data0.16%
$ 911.0k
William Fanter
Executive VP & Head of Retail Bankingno datano datano data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: LBC's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simone Lagomarsino
CEO, President & Director1.58yrsUS$2.61m0.35%
$ 1.9m
Bradley Shuster
Independent Director21.58yrsUS$185.00k0.052%
$ 286.0k
Thomas Wajnert
Lead Independent Directorno dataUS$235.00k0.12%
$ 657.5k
John Erickson
Independent Director3.58yrsUS$160.00k0.068%
$ 377.4k
Anita Newcomb
Independent Director6yrsUS$135.00k0.086%
$ 478.1k
Victor Trione
Chairman of the Boardno dataUS$793.58k61.12%
$ 337.9m
Jack Krouskup
Independent Director8.58yrsUS$185.00k0.064%
$ 353.2k

6.0yrs

Average Tenure

66yo

Average Age

Experienced Board: LBC's board of directors are considered experienced (6 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Luther Burbank Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Luther Burbank Corporation
  • 520 Third Street
  • Fourth Floor
  • Santa Rosa
  • California
  • 95401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2017
3QMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2017

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/13 00:21
End of Day Share Price2020/08/12 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.