Luther Burbank
Market Cap
US$552.8m
Last Updated
2020/08/13 00:21 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
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
| LBC | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.1% | 10.1% | -0.04% |
| 30 Day | 12.6% | -0.5% | 5.1% |
| 90 Day | 20.3% | 43.5% | 19.5% |
| 1 Year | 5.8%3.4% | -11.8%-14.2% | 19.6%17.1% |
| 3 Year | n/a | -0.1%-7.2% | 42.5%33.3% |
| 5 Year | n/a | 12.0%-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
20 hours ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Luther Burbank Corporation (NASDAQ:LBC)1 month ago | Simply Wall St
Would Shareholders Who Purchased Luther Burbank's(NASDAQ:LBC) Stock Year Be Happy With The Share price Today?2 months ago | Simply Wall St
At US$10.26, Is Luther Burbank Corporation (NASDAQ:LBC) Worth Looking At Closely?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).
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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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 1.58yrs | US$2.61m | 0.35% $ 1.9m | |
| Executive VP & CFO | 14.58yrs | US$1.05m | 0.31% $ 1.7m | |
| Executive VP | 6.58yrs | US$917.44k | 0.075% $ 411.9k | |
| Executive VP and Chief Operations & Technology Officer | 0.58yr | no data | 0.017% $ 91.5k | |
| Investor Relations | no data | no data | no data | |
| Senior VP & Director of Single Family Residential Lending | no data | no data | 0.023% $ 126.7k | |
| Executive VP & Chief Risk Officer | no data | no data | 0.12% $ 684.0k | |
| Senior VP & Director of Income Property Lending | no data | no data | 0.080% $ 441.9k | |
| Executive VP & Chief Credit Officer | no data | no data | 0.16% $ 911.0k | |
| Executive VP & Head of Retail Banking | no data | no data | no data |
4.1yrs
Average Tenure
54yo
Average Age
Experienced Management: LBC's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 1.58yrs | US$2.61m | 0.35% $ 1.9m | |
| Independent Director | 21.58yrs | US$185.00k | 0.052% $ 286.0k | |
| Lead Independent Director | no data | US$235.00k | 0.12% $ 657.5k | |
| Independent Director | 3.58yrs | US$160.00k | 0.068% $ 377.4k | |
| Independent Director | 6yrs | US$135.00k | 0.086% $ 478.1k | |
| Chairman of the Board | no data | US$793.58k | 61.12% $ 337.9m | |
| Independent Director | 8.58yrs | US$185.00k | 0.064% $ 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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/13 00:21 |
| End of Day Share Price | 2020/08/12 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.