Announcement • Mar 04
Luther Burbank Files Form 15 Luther Burbank Corporation has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended. Price Target Changed • Jan 11
Price target increased by 14% to US$12.50 Up from US$11.00, the current price target is provided by 1 analyst. New target price is 24% above last closing price of US$10.07. Stock is down 13% over the past year. The company is forecast to post earnings per share of US$0.50 for next year compared to US$1.58 last year. Board Change • Jan 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. Independent Director Mario Yzaguirre was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • Nov 24
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risk Profit margins are more than 30% lower than last year (30% net profit margin). Reported Earnings • Oct 31
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: US$0.04 (down from US$0.41 in 3Q 2022). Revenue: US$17.6m (down 61% from 3Q 2022). Net income: US$1.91m (down 91% from 3Q 2022). Profit margin: 11% (down from 46% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 67%. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Oct 31
Luther Burbank Corporation Reports Net Charge-Offs for the Third Quarter Ended September 30, 2023 Luther Burbank Corporation reported net charge-offs for the third quarter ended September 30, 2023. For the quarter, the company reported net charge-offs of $463,000. Announcement • Jul 26
Luther Burbank Corporation, Annual General Meeting, Oct 24, 2023 Luther Burbank Corporation, Annual General Meeting, Oct 24, 2023. Reported Earnings • Jul 26
Second quarter 2023 earnings released: EPS: US$0.14 (vs US$0.44 in 2Q 2022) Second quarter 2023 results: EPS: US$0.14 (down from US$0.44 in 2Q 2022). Revenue: US$26.0m (down 43% from 2Q 2022). Net income: US$6.92m (down 69% from 2Q 2022). Profit margin: 27% (down from 50% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jun 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.0%. The fair value is estimated to be US$12.21, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to decline by 20% in a year. Earnings is forecast to decline by 40% in the next year. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$9.92, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 8x in the Banks industry in the US. Total returns to shareholders of 3.3% over the past three years. Price Target Changed • May 24
Price target decreased by 12% to US$12.75 Down from US$14.50, the current price target is provided by 1 analyst. New target price is 40% above last closing price of US$9.09. The company is forecast to post earnings per share of US$0.85 for next year compared to US$1.58 last year. Reported Earnings • Apr 26
First quarter 2023 earnings released: EPS: US$0.26 (vs US$0.45 in 1Q 2022) First quarter 2023 results: EPS: US$0.26 (down from US$0.45 in 1Q 2022). Revenue: US$36.0m (down 24% from 1Q 2022). Net income: US$13.4m (down 41% from 1Q 2022). Profit margin: 37% (down from 48% in 1Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Buying Opportunity • Apr 11
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 17%. The fair value is estimated to be US$12.20, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 33%. Buying Opportunity • Mar 22
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 17%. The fair value is estimated to be US$12.04, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 33%. Revenue is forecast to decline by 19% in 2 years. Earnings is forecast to decline by 43% in the next 2 years. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$9.69, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 9x in the Mortgage industry in the US. Total returns to shareholders of 29% over the past three years. Reported Earnings • Jan 26
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: US$1.58 (down from US$1.70 in FY 2021). Revenue: US$177.8m (down 2.9% from FY 2021). Net income: US$80.2m (down 8.6% from FY 2021). Profit margin: 45% (down from 48% in FY 2021). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is expected to decline by 12% p.a. on average during the next 2 years, while revenues in the Mortgage industry in the US are expected to grow by 7.3%. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jan 22
Price target increased to US$16.00 Up from US$14.50, the current price target is provided by 1 analyst. New target price is 42% above last closing price of US$11.27. The company is forecast to post earnings per share of US$1.61 for next year compared to US$1.70 last year. Reported Earnings • Oct 26
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: US$0.41 (down from US$0.48 in 3Q 2021). Revenue: US$45.2m (down 8.7% from 3Q 2021). Net income: US$21.0m (down 15% from 3Q 2021). Profit margin: 46% (down from 50% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 7.9%. Revenue is expected to decline by 8.2% p.a. on average during the next 3 years, while revenues in the Mortgage industry in the US are expected to grow by 4.4%. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 27
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: US$0.44 (up from US$0.41 in 2Q 2021). Revenue: US$45.3m (up 3.2% from 2Q 2021). Net income: US$22.6m (up 6.4% from 2Q 2021). Profit margin: 50% (up from 48% in 2Q 2021). Revenue exceeded analyst estimates by 6.6%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Over the next year, revenue is expected to shrink by 12% compared to a 11% decline forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • May 12
Key Executive recently sold US$80k worth of stock On the 6th of May, Parham Medhat sold around 6k shares on-market at roughly US$13.32 per share. This was the largest sale by an insider in the last 3 months. This was Parham's only on-market trade for the last 12 months. Reported Earnings • Apr 27
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: US$0.45 (up from US$0.35 in 1Q 2021). Revenue: US$47.6m (up 15% from 1Q 2021). Net income: US$22.9m (up 25% from 1Q 2021). Profit margin: 48% (up from 44% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Over the next year, revenue is expected to shrink by 6.0% compared to a 7.7% decline forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 16
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$1.70 (up from US$0.75 in FY 2020). Revenue: US$183.1m (up 40% from FY 2020). Net income: US$87.8m (up 120% from FY 2020). Profit margin: 48% (up from 31% in FY 2020). The increase in margin was driven by higher revenue. Net interest margin (NIM): 2.40% (up from 1.97% in FY 2020). Cost-to-income ratio: 34.3% (down from 52.4% in FY 2020). Non-performing loans: 0.04% (down from 0.11% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.8%. Over the next year, revenue is expected to shrink by 1.5% compared to a 8.2% decline forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Price Target Changed • Feb 01
Price target decreased to US$15.33 Down from US$16.50, the current price target is an average from 3 analysts. New target price is 19% above last closing price of US$12.86. Stock is up 30% over the past year. The company is forecast to post earnings per share of US$1.58 for next year compared to US$1.70 last year. Reported Earnings • Jan 27
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$1.70 (up from US$0.75 in FY 2020). Revenue: US$183.1m (up 40% from FY 2020). Net income: US$87.8m (up 120% from FY 2020). Profit margin: 48% (up from 31% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.8%. Over the next year, revenue is forecast to grow 3.6% compared to a 10% decline forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 05
Price target increased to US$16.75 Up from US$15.25, the current price target is an average from 2 analysts. New target price is 15% above last closing price of US$14.56. Stock is up 48% over the past year. The company is forecast to post earnings per share of US$1.66 for next year compared to US$0.75 last year. Price Target Changed • Oct 29
Price target increased to US$16.25 Up from US$14.33, the current price target is an average from 2 analysts. New target price is 12% above last closing price of US$14.54. Stock is up 53% over the past year. The company is forecast to post earnings per share of US$1.59 for next year compared to US$0.75 last year. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS US$0.48 (vs US$0.28 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$49.5m (up 35% from 3Q 2020). Net income: US$24.7m (up 73% from 3Q 2020). Profit margin: 50% (up from 39% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 13% per year. Recent Insider Transactions • Sep 16
Executive VP & Chief Risk Officer recently sold US$100k worth of stock On the 14th of September, Tammy Mahoney sold around 8k shares on-market at roughly US$12.51 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$678k more than they bought in the last 12 months. Reported Earnings • Jul 29
Second quarter 2021 earnings released: EPS US$0.41 (vs US$0.18 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$43.9m (up 54% from 2Q 2020). Net income: US$21.2m (up 128% from 2Q 2020). Profit margin: 48% (up from 33% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Recent Insider Transactions • May 11
Independent Director recently sold US$57k worth of stock On the 3rd of May, Jack Krouskup sold around 5k shares on-market at roughly US$11.44 per share. In the last 3 months, there was an even bigger sale from another insider worth US$361k. Insiders have been net sellers, collectively disposing of US$616k more than they bought in the last 12 months. Recent Insider Transactions • May 06
Independent Director recently sold US$57k worth of stock On the 3rd of May, Jack Krouskup sold around 5k shares on-market at roughly US$11.44 per share. In the last 3 months, there was an even bigger sale from another insider worth US$361k. Insiders have been net sellers, collectively disposing of US$616k more than they bought in the last 12 months. Reported Earnings • Apr 29
First quarter 2021 earnings released The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$41.5m (up 50% from 1Q 2020). Net income: US$18.4m (up 143% from 1Q 2020). Profit margin: 44% (up from 27% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Price Target Changed • Apr 02
Price target increased to US$14.33 Up from US$13.17, the current price target is an average from 3 analysts. New target price is 22% above last closing price of US$11.73. Stock is up 27% over the past year. Reported Earnings • Mar 13
Full year 2020 earnings released: EPS US$0.75 (vs US$0.87 in FY 2019) The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: US$130.6m (flat on FY 2019). Net income: US$39.9m (down 18% from FY 2019). Profit margin: 31% (down from 37% in FY 2019). Net interest margin (NIM): 1.97% (up from 1.84% in FY 2019). Cost-to-income ratio: 52.4% (up from 46.9% in FY 2019). Non-performing loans: 0.11% (up from 0.10% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Mar 13
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.5%. Earnings per share (EPS) missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 22% compared to a 2.0% decline forecast for the Mortgage industry in the US. Recent Insider Transactions • Mar 04
Executive VP & Chief Risk Officer recently sold US$128k worth of stock On the 1st of March, Tammy Mahoney sold around 12k shares on-market at roughly US$10.64 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$300k more than they bought in the last 12 months. Is New 90 Day High Low • Mar 03
New 90-day high: US$10.79 The company is up 7.0% from its price of US$10.13 on 02 December 2020. The American market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Mortgage industry, which is up 38% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$9.66 per share. Major Estimate Revision • Feb 02
Analysts increase EPS estimates to US$1.27 The 2021 consensus revenue estimate increased from US$156.0m to US$159.7m. The earnings per share estimate also received an upgrade from US$1.07 to US$1.27 for the same period. Net income is expected to grow by 64% next year compared to 5.7% growth forecast for the Mortgage industry in the US. The consensus price target increased from US$12.67 to US$13.17. Share price is down by 3.2% to US$9.87 over the past week. Reported Earnings • Jan 30
Full year 2020 earnings released: EPS US$0.75 (vs US$0.87 in FY 2019) The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: US$130.6m (flat on FY 2019). Net income: US$39.9m (down 18% from FY 2019). Profit margin: 31% (down from 37% in FY 2019). Net interest margin (NIM): 1.97% (up from 1.84% in FY 2019). Cost-to-income ratio: 67.2% (up from 46.9% in FY 2019). Non-performing loans: 0.10% (no change from 0.10% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Jan 30
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.5%. Earnings per share (EPS) missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 21% compared to a 1.5% decline forecast for the Mortgage industry in the US. Price Target Changed • Jan 05
Price target raised to US$12.67 Up from US$11.83, the current price target is an average from 3 analysts. The new target price is 30% above the current share price of US$9.71. As of last close, the stock is down 17% over the past year. Is New 90 Day High Low • Nov 11
New 90-day high: US$10.92 The company is up 8.0% from its price of US$10.14 on 13 August 2020. The American market is up 6.0% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Mortgage industry, which is also up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$7.04 per share. Analyst Estimate Surprise Post Earnings • Nov 10
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 27%. Over the next year, revenue is forecast to grow 21%, compared to a 11% growth forecast for the Mortgage industry in the US. Reported Earnings • Nov 10
Third quarter 2020 earnings released: EPS US$0.28 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: US$36.7m (up 7.7% from 3Q 2019). Net income: US$14.3m (up 12% from 3Q 2019). Profit margin: 39% (up from 37% in 3Q 2019). The increase in margin was driven by higher revenue. Major Estimate Revision • Nov 03
Analysts increase EPS estimates to US$0.86 The 2020 consensus revenue estimate increased from US$138.7m to US$140.4m. The earnings per share estimate also received an upgrade from US$0.75 to US$0.86 for the same period. Net income is expected to grow by 17% next year compared to 0.8% decline forecast for the Mortgage industry in the US. The consensus price target increased from US$11.50 to US$11.83. Share price is up 1.7% to US$9.53 over the past week. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of US$43.7m, down 7.1% from the prior year. Total revenue was US$125.9m over the last 12 months, down 4.2% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 30
Third-quarter earnings released: Revenue and earnings beat expectations Third-quarter revenue exceeded analyst estimates by 3.0% at US$36.7m. Earnings per share (EPS) also surpassed analyst estimates by 27% at US$0.27. Revenue is forecast to grow 19% over the next year, compared to a 11% growth forecast for the Mortgage industry in the US. Is New 90 Day High Low • Sep 19
New 90-day low: US$8.77 The company is down 4.0% from its price of US$9.18 on 19 June 2020. The American market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Mortgage industry, which is down 29% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$7.34 per share.