Press Releases
Luther Burbank Corporation Reports 2017 Fourth Quarter Earnings Per Diluted Common Share of $0.45
Mr. Biggs continued, “Asset growth continues to excel, exceeding 13% for the year. The Company completed a successful common equity IPO, raising net proceeds of over
“At the same time, we remain vigilant to achieving exceptional efficiency of our operations, with one of the best efficiency ratios of our real estate and commercial bank peers. Coupled with our excellent efficiency is our extremely low level of non-performing assets, which at year end was only 0.12% of total assets, again, one of the best ratios of our peers.”
Board Declares Quarterly Cash Dividend of
On
Fourth Quarter and Twelve Months Earnings Summary
Net interest income for the quarter ended
For the quarter ended
Noninterest income for the quarter ended
General and administrative ("G&A") expense for the quarter ended
For the twelve months ended
Balance Sheet Summary
Total assets at
The multifamily residential (“MFR”) mortgage loan portfolio totaled
The single family residential mortgage loan portfolio totaled
Deposits totaled
Stockholders’ equity totaled
Asset Quality
Non-performing loans (“NPLs”), totaled
About
Cautionary Statements Regarding Forward-Looking Information
Certain statements in this earnings release are forward-looking statements that reflect the Company’s current view with respect to, among other things, future events and our Company’s financial and operational performance. These statements are often, but not always, made through the use of such words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar terms and phrases, including references to assumptions.
Forward-looking statements are based on various assumptions and analyses made by us in light of our management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond our control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events that may be subject to circumstances beyond our control; increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment; changes in deposit flows, loan demand or collateral values; changes in accounting principles, policies or guidelines; changes in general economic conditions, either nationally or locally in some or all areas in which we do business, or conditions in the real estate or securities markets or the banking industry; legislative or regulatory changes, including those that may be implemented by the new administration in
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “pre-tax, pre-provision net earnings,” “tangible book value,” “efficiency ratio,” “tangible assets,” “tangible stockholders’ equity,” “tangible stockholders’ equity to tangible assets,” “return on average tangible equity,” “proforma net income” and “proforma ratios” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||
(In thousands except for per share data and ratios) | ||||||||||||||||||||
31-Dec-17 | 30-Sep-17 | 30-Jun-17 | 31-Mar-17 | 31-Dec-16 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 75,578 | $ | 87,051 | $ | 86,819 | $ | 75,719 | $ | 59,208 | ||||||||||
Available for sale investment securities, at fair value | 503,288 | 471,438 | 483,846 | 466,564 | 459,162 | |||||||||||||||
Held to maturity investment securities, at amortized cost | 6,921 | 6,965 | 7,222 | 7,267 | 7,561 | |||||||||||||||
Loans held-for-sale | - | 39,011 | 701,947 | 47,844 | 34,974 | |||||||||||||||
Loans held-for-investment (2) | 5,041,547 | 4,630,926 | 4,306,893 | 4,729,359 | 4,439,766 | |||||||||||||||
Allowance for loan losses | (30,312 | ) | (28,984 | ) | (27,356 | ) | (33,699 | ) | (33,298 | ) | ||||||||||
Accrued interest receivable | 14,901 | 13,902 | 14,561 | 13,174 | 12,141 | |||||||||||||||
Federal Home Loan Bank stock | 27,733 | 40,159 | 38,582 | 32,910 | 30,410 | |||||||||||||||
Premises and equipment, net | 22,452 | 22,697 | 23,262 | 23,785 | 24,356 | |||||||||||||||
Goodwill | 3,297 | 3,297 | 3,297 | 3,297 | 3,297 | |||||||||||||||
Prepaid expenses and other assets | 38,975 | 33,095 | 30,344 | 25,320 | 26,008 | |||||||||||||||
Total assets | $ | 5,704,380 | $ | 5,319,557 | $ | 5,669,417 | $ | 5,391,540 | $ | 5,063,585 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | $ | 3,951,238 | $ | 3,863,411 | $ | 3,681,175 | $ | 3,620,642 | $ | 3,333,969 | ||||||||||
Federal Home Loan Bank advances | 989,260 | 807,667 | 1,359,573 | 1,157,480 | 1,111,886 | |||||||||||||||
Junior subordinated deferrable interest debentures | 61,857 | 61,857 | 61,857 | 61,857 | 61,857 | |||||||||||||||
Senior debt | 94,161 | 94,128 | 94,095 | 94,061 | 94,028 | |||||||||||||||
Accrued interest payable | 1,781 | 2,112 | 3,192 | 1,398 | 1,302 | |||||||||||||||
Other liabilities and accrued expenses | 56,338 | 56,922 | 53,239 | 48,596 | 56,168 | |||||||||||||||
Total liabilities | 5,154,635 | 4,886,097 | 5,253,131 | 4,984,034 | 4,659,210 | |||||||||||||||
Stockholders' equity: | ||||||||||||||||||||
Common stock, no par value; 100,000,000 shares authorized; 56,107,577 and 42,000,000 shares issued and outstanding at December 31, 2017 and 2016, respectively |
458,570 | 2,262 | 2,262 | 2,262 | 2,262 | |||||||||||||||
Unearned Restricted Stock Award common stock | (4,283 | ) | - | - | - | - | ||||||||||||||
Retained earnings | 102,459 | 435,912 | 418,664 | 410,143 | 407,648 | |||||||||||||||
Accumulated other comprehensive loss, net of taxes | (7,001 | ) | (4,714 | ) | (4,640 | ) | (4,899 | ) | (5,535 | ) | ||||||||||
Total stockholders' equity | 549,745 | 433,460 | 416,286 | 407,506 | 404,375 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 5,704,380 | $ | 5,319,557 | $ | 5,669,417 | $ | 5,391,540 | $ | 5,063,585 | ||||||||||
Net tangible book value (1) | $ | 546,448 | $ | 430,163 | $ | 412,989 | $ | 404,209 | $ | 401,078 | ||||||||||
Period end shares outstanding (3) | 56,107,577 | 42,000,000 | 42,000,000 | 42,000,000 | 42,000,000 | |||||||||||||||
(1) = Considered a non-GAAP financial measure. See ‘‘Non-GAAP Financial Measures’’ for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. Pre-tax, pre-provision net earnings is defined as net income plus income tax expense and provision for (reversal of) loan losses. Net tangible book value is defined as total assets less goodwill and total liabilities. Efficiency ratio is defined as the ratio of noninterest expense to net interest income plus noninterest income. Tangible assets is defined as total assets less goodwill. Tangible equity is defined as total equity less goodwill. We calculate our pro forma net income, return on average assets, return on average equity and return on average tangible equity by adding back our franchise S Corporation tax to net income, and using a combined C Corporation effective tax rate for Federal and California income taxes of 42.0%. This calculation reflects only the change in our status as an S Corporation and does not give effect to any other transaction. | ||||||||||||||||||||
(2) = Loans held-for-investment include unamortized deferred fees/costs. All portfolio loans are collateralized by real estate with the exception of one $50 thousand non-mortgage loan. | ||||||||||||||||||||
(3) = Earnings per common share, basic and diluted, book value per common share and number of common shares outstanding have been adjusted retroactively to reflect a 200-for-1 stock split effective April 27, 2017. | ||||||||||||||||||||
CONSOLIDATED INCOME STATEMENTS (UNAUDITED) | |||||||||||||||||||||||||||
(In thousands except for per share data and ratios) | For the Three Months Ended | For the Years Ended | |||||||||||||||||||||||||
31-Dec-17 | 30-Sep-17 | 30-Jun-17 | 31-Mar-17 | 31-Dec-16 | 31-Dec-17 | 31-Dec-16 | |||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||
Interest and fees on loans | $ | 42,477 | $ | 44,180 | $ | 41,173 | $ | 38,743 | $ | 36,054 | $ | 166,573 | $ | 139,385 | |||||||||||||
Interest and dividends on investment securities | 2,159 | 2,016 | 1,875 | 1,664 | 1,251 | 7,714 | 4,774 | ||||||||||||||||||||
Total interest income | 44,636 | 46,196 | 43,048 | 40,407 | 37,305 | 174,287 | 144,159 | ||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||
Interest on deposits | 11,285 | 10,156 | 9,058 | 8,314 | 8,329 | 38,813 | 31,648 | ||||||||||||||||||||
Interest on FHLB advances | 3,759 | 5,260 | 4,260 | 3,276 | 2,873 | 16,555 | 10,219 | ||||||||||||||||||||
Interest on junior subordinated deferrable interest debentures | 447 | 430 | 408 | 380 | 368 | 1,665 | 1,348 | ||||||||||||||||||||
Interest on other borrowings | 1,578 | 1,577 | 1,577 | 1,577 | 1,578 | 6,309 | 6,309 | ||||||||||||||||||||
Total interest expense | 17,069 | 17,423 | 15,303 | 13,547 | 13,148 | 63,342 | 49,524 | ||||||||||||||||||||
Net interest income before provision for loan losses | 27,567 | 28,773 | 27,745 | 26,860 | 24,157 | 110,945 | 94,635 | ||||||||||||||||||||
Provision (reversal) of provision for loan losses | 1,250 | 1,550 | (6,481 | ) | 309 | (3,624 | ) | (3,372 | ) | (12,703 | ) | ||||||||||||||||
Net interest income after provision (reversal) for loan losses | 26,317 | 27,223 | 34,226 | 26,551 | 27,781 | 114,317 | 107,338 | ||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||
Increase in cash surrender value of life insurance | 48 | 48 | 47 | 49 | 55 | 192 | 233 | ||||||||||||||||||||
Net gain on sale of loans | - | 4,133 | (693 | ) | (163 | ) | 1,140 | 3,277 | 3,884 | ||||||||||||||||||
FHLB dividends | 696 | 581 | 562 | 634 | 1,521 | 2,473 | 2,848 | ||||||||||||||||||||
Other income | 737 | 156 | 272 | 351 | 344 | 1,516 | 879 | ||||||||||||||||||||
Total noninterest income | 1,481 | 4,918 | 188 | 871 | 3,060 | 7,458 | 7,844 | ||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||
Compensation and related benefits | 8,140 | 8,664 | 9,523 | 10,197 | 11,887 | 36,524 | 38,551 | ||||||||||||||||||||
Deposit insurance premium | 404 | 580 | 431 | 397 | 375 | 1,812 | 1,725 | ||||||||||||||||||||
Professional and regulatory fees | 582 | 428 | 840 | 184 | 650 | 2,034 | 2,577 | ||||||||||||||||||||
Occupancy | 1,295 | 1,339 | 1,223 | 1,298 | 1,280 | 5,155 | 5,477 | ||||||||||||||||||||
Depreciation and amortization | 724 | 717 | 728 | 734 | 743 | 2,903 | 2,873 | ||||||||||||||||||||
Data processing | 789 | 791 | 797 | 790 | 933 | 3,167 | 3,322 | ||||||||||||||||||||
Marketing | 298 | 253 | 205 | 179 | 294 | 935 | 875 | ||||||||||||||||||||
Other expenses | 989 | 1,010 | 1,093 | 922 | 938 | 4,014 | 5,842 | ||||||||||||||||||||
Total noninterest expense | 13,221 | 13,782 | 14,840 | 14,701 | 17,100 | 56,544 | 61,242 | ||||||||||||||||||||
Income before provision for income taxes | 14,577 | 18,359 | 19,574 | 12,721 | 13,741 | 65,231 | 53,940 | ||||||||||||||||||||
Provision for income taxes | (5,844 | ) | 612 | 653 | 426 | 464 | (4,153 | ) | 1,819 | ||||||||||||||||||
Net income | $ | 20,421 | $ | 17,747 | $ | 18,921 | $ | 12,295 | $ | 13,277 | $ | 69,384 | $ | 52,121 | |||||||||||||
Basic earnings per common share (3) | $ | 0.45 | $ | 0.42 | $ | 0.45 | $ | 0.29 | $ | 0.32 | $ | 1.62 | $ | 1.24 | |||||||||||||
Diluted earnings per common share (3) | $ | 0.45 | $ | 0.42 | $ | 0.45 | $ | 0.29 | $ | 0.32 | $ | 1.62 | $ | 1.24 | |||||||||||||
Weighted average common shares outstanding - basic (3) | 45,667,516 | 42,000,000 | 42,000,000 | 42,000,000 | 42,000,000 | 42,916,879 | 42,000,000 | ||||||||||||||||||||
Weighted average common shares outstanding - diluted (3) | 45,831,743 | 42,000,000 | 42,000,000 | 42,000,000 | 42,000,000 | 42,957,936 | 42,000,000 | ||||||||||||||||||||
(1) = Considered a non-GAAP financial measure. See ‘‘Non-GAAP Financial Measures’’ for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. Pre-tax, pre-provision net earnings is defined as net income plus income tax expense and provision for (reversal of) loan losses. Net tangible book value is defined as total assets less goodwill and total liabilities. Efficiency ratio is defined as the ratio of noninterest expense to net interest income plus noninterest income. Tangible assets is defined as total assets less goodwill. Tangible equity is defined as total equity less goodwill. We calculate our pro forma net income, return on average assets, return on average equity and return on average tangible equity by adding back our franchise S Corporation tax to net income, and using a combined C Corporation effective tax rate for Federal and California income taxes of 42.0%. This calculation reflects only the change in our status as an S Corporation and does not give effect to any other transaction. | |||||||||||||||||||||||||||
(2) = Loans held-for-investment include unamortized deferred fees/costs. All portfolio loans are collateralized by real estate with the exception of one $50 thousand non-mortgage loan. | |||||||||||||||||||||||||||
(3) = Earnings per common share, basic and diluted, book value per common share and number of common shares outstanding have been adjusted retroactively to reflect a 200-for-1 stock split effective April 27, 2017. | |||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||||
(In thousands except for per share data and ratios) | As of or for the Three Months Ended | As of or for the Years Ended | ||||||||||||||||||||||||||
31-Dec-17 | 30-Sep-17 | 30-Jun-17 | 31-Mar-17 | 31-Dec-16 | 31-Dec-17 | 31-Dec-16 | ||||||||||||||||||||||
RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||
Interest income | $ | 44,636 | $ | 46,196 | $ | 43,048 | $ | 40,407 | $ | 37,305 | $ | 174,287 | $ | 144,159 | ||||||||||||||
Interest expense | 17,069 | 17,423 | 15,303 | 13,547 | 13,148 | 63,342 | 49,524 | |||||||||||||||||||||
Net interest income | 27,567 | 28,773 | 27,745 | 26,860 | 24,157 | 110,945 | 94,635 | |||||||||||||||||||||
Provision for (reversal of) loan losses | 1,250 | 1,550 | (6,481 | ) | 309 | (3,624 | ) | (3,372 | ) | (12,703 | ) | |||||||||||||||||
Net interest income after provision for loan losses | 26,317 | 27,223 | 34,226 | 26,551 | 27,781 | 114,317 | 107,338 | |||||||||||||||||||||
Noninterest income | 1,481 | 4,918 | 188 | 871 | 3,060 | 7,458 | 7,844 | |||||||||||||||||||||
Noninterest expense | 13,221 | 13,782 | 14,840 | 14,701 | 17,100 | 56,544 | 61,242 | |||||||||||||||||||||
Income before provision for income taxes | 14,577 | 18,359 | 19,574 | 12,721 | 13,741 | 65,231 | 53,940 | |||||||||||||||||||||
Provision for income taxes | (5,844 | ) | 612 | 653 | 426 | 464 | (4,153 | ) | 1,819 | |||||||||||||||||||
Net income | $ | 20,421 | $ | 17,747 | $ | 18,921 | $ | 12,295 | $ | 13,277 | $ | 69,384 | $ | 52,121 | ||||||||||||||
Pre-tax, pre-provision net earnings (1) | 15,827 | 19,909 | 13,093 | 13,030 | 10,117 | 61,859 | 41,237 | |||||||||||||||||||||
Basic earnings per share (3) | $ | 0.45 | $ | 0.42 | $ | 0.45 | $ | 0.29 | $ | 0.32 | $ | 1.62 | $ | 1.24 | ||||||||||||||
Diluted earnings per share (3) | $ | 0.45 | $ | 0.42 | $ | 0.45 | $ | 0.29 | $ | 0.32 | $ | 1.62 | $ | 1.24 | ||||||||||||||
Average basic shares outstanding (3) | 45,667,516 | 42,000,000 | 42,000,000 | 42,000,000 | 42,000,000 | 42,916,879 | 42,000,000 | |||||||||||||||||||||
Average diluted shares outstanding (3) | 45,831,743 | 42,000,000 | 42,000,000 | 42,000,000 | 42,000,000 | 42,957,936 | 42,000,000 | |||||||||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
Return on average: | ||||||||||||||||||||||||||||
Assets | 1.50 | % | 1.23 | % | 1.37 | % | 0.95 | % | 1.08 | % | 1.26 | % | 1.11 | % | ||||||||||||||
Stockholders' equity | 17.97 | % | 16.62 | % | 18.41 | % | 12.01 | % | 13.15 | % | 16.30 | % | 13.35 | % | ||||||||||||||
Tangible stockholders' equity (1) | 14.95 | % | 16.50 | % | 18.33 | % | 12.17 | % | 13.24 | % | 12.70 | % | 13.00 | % | ||||||||||||||
Efficiency ratio (1) | 45.51 | % | 40.91 | % | 53.13 | % | 53.01 | % | 62.83 | % | 47.76 | % | 59.76 | % | ||||||||||||||
Noninterest expense to average assets | 0.97 | % | 0.95 | % | 1.08 | % | 1.14 | % | 1.39 | % | 1.03 | % | 1.31 | % | ||||||||||||||
Loans to deposit ratio | 127.59 | % | 120.88 | % | 136.07 | % | 131.94 | % | 134.22 | % | 127.59 | % | 134.22 | % | ||||||||||||||
Average stockholders' equity to average assets | 8.32 | % | 7.38 | % | 7.45 | % | 7.92 | % | 8.21 | % | 7.76 | % | 8.35 | % | ||||||||||||||
Dividend payout ratio | 230.64 | % | 2.82 | % | 54.97 | % | 79.71 | % | 33.89 | % | 97.72 | % | 32.23 | % | ||||||||||||||
PRO FORMA | ||||||||||||||||||||||||||||
Pro forma net income (1) | 8,455 | 10,648 | 11,353 | 7,378 | 7,970 | 37,834 | 31,285 | |||||||||||||||||||||
Pro forma return on average: | ||||||||||||||||||||||||||||
Assets (1) | 0.62 | % | 0.74 | % | 0.82 | % | 0.57 | % | 0.65 | % | 0.69 | % | 0.67 | % | ||||||||||||||
Stockholders' equity (1) | 7.44 | % | 9.97 | % | 11.04 | % | 7.21 | % | 7.89 | % | 8.89 | % | 8.02 | % | ||||||||||||||
Tangible stockholders' equity (1) | 7.49 | % | 10.05 | % | 11.13 | % | 7.27 | % | 7.96 | % | 8.96 | % | 8.08 | % | ||||||||||||||
YIELDS/ RATES | ||||||||||||||||||||||||||||
Yield on loans | 3.53 | % | 3.46 | % | 3.37 | % | 3.38 | % | 3.31 | % | 3.43 | % | 3.36 | % | ||||||||||||||
Yield on investments | 1.57 | % | 1.39 | % | 1.38 | % | 1.32 | % | 1.07 | % | 1.42 | % | 1.07 | % | ||||||||||||||
Yield on interest earning assets | 3.31 | % | 3.24 | % | 3.16 | % | 3.16 | % | 3.06 | % | 3.22 | % | 3.11 | % | ||||||||||||||
Cost of deposits | 1.15 | % | 1.09 | % | 1.00 | % | 0.96 | % | 1.01 | % | 1.05 | % | 0.99 | % | ||||||||||||||
Cost of borrowings | 2.25 | % | 1.85 | % | 1.75 | % | 1.69 | % | 1.68 | % | 1.86 | % | 1.73 | % | ||||||||||||||
Cost of interest bearing liabilities | 1.38 | % | 1.31 | % | 1.21 | % | 1.15 | % | 1.18 | % | 1.27 | % | 1.17 | % | ||||||||||||||
Net interest spread | 1.93 | % | 1.93 | % | 1.95 | % | 2.01 | % | 1.88 | % | 1.95 | % | 1.94 | % | ||||||||||||||
Net interest margin | 2.05 | % | 2.02 | % | 2.03 | % | 2.10 | % | 1.98 | % | 2.05 | % | 2.04 | % | ||||||||||||||
(1) = Considered a non-GAAP financial measure. See ‘‘Non-GAAP Financial Measures’’ for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. Pre-tax, pre-provision net earnings is defined as net income plus income tax expense and provision for (reversal of) loan losses. Net tangible book value is defined as total assets less goodwill and total liabilities. Efficiency ratio is defined as the ratio of noninterest expense to net interest income plus noninterest income. Tangible assets is defined as total assets less goodwill. Tangible equity is defined as total equity less goodwill. We calculate our pro forma net income, return on average assets, return on average equity and return on average tangible equity by adding back our franchise S Corporation tax to net income, and using a combined C Corporation effective tax rate for Federal and California income taxes of 42.0%. This calculation reflects only the change in our status as an S Corporation and does not give effect to any other transaction. | ||||||||||||||||||||||||||||
(2) = Loans held-for-investment include unamortized deferred fees/costs. All portfolio loans are collateralized by real estate with the exception of one $50 thousand non-mortgage loan. | ||||||||||||||||||||||||||||
(3) = Earnings per common share, basic and diluted, book value per common share and number of common shares outstanding have been adjusted retroactively to reflect a 200-for-1 stock split effective April 27, 2017. | ||||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||||
(In thousands except for per share data and ratios) | As of or for the Three Months Ended | As of or for the Years Ended | ||||||||||||||||||||||||||
31-Dec-17 | 30-Sep-17 | 30-Jun-17 | 31-Mar-17 | 31-Dec-16 | 31-Dec-17 | 31-Dec-16 | ||||||||||||||||||||||
CAPITAL | ||||||||||||||||||||||||||||
Total equity to total assets | 9.64 | % | 8.15 | % | 7.34 | % | 7.56 | % | 7.99 | % | 9.64 | % | 7.99 | % | ||||||||||||||
Tangible stockholders' equity to tangible assets (1) | 9.58 | % | 8.09 | % | 7.29 | % | 7.50 | % | 7.93 | % | 9.58 | % | 7.93 | % | ||||||||||||||
Book value per share | $ | 9.80 | $ | 10.32 | $ | 9.91 | $ | 9.70 | $ | 9.63 | $ | 9.80 | $ | 9.63 | ||||||||||||||
Tangible book value per share (1) | $ | 9.74 | $ | 10.24 | $ | 9.83 | $ | 9.62 | $ | 9.55 | $ | 9.74 | $ | 9.55 | ||||||||||||||
Market value per share (period end) | $ | 12.04 | N/A | N/A | N/A | N/A | $ | 12.04 | N/A | |||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||
Loans and loans held for sale | $ | 4,818,654 | $ | 5,109,599 | $ | 4,887,459 | $ | 4,578,372 | $ | 4,360,442 | $ | 4,849,894 | $ | 4,146,713 | ||||||||||||||
Earning assets | 5,388,238 | 5,705,891 | 5,455,216 | 5,113,760 | 4,869,178 | 5,417,323 | 4,633,321 | |||||||||||||||||||||
Total assets | 5,461,226 | 5,786,035 | 5,517,404 | 5,172,186 | 4,921,585 | 5,485,832 | 4,676,676 | |||||||||||||||||||||
Deposits | 3,914,149 | 3,734,643 | 3,627,225 | 3,467,450 | 3,313,524 | 3,687,224 | 3,200,180 | |||||||||||||||||||||
Total equity | 454,635 | 427,018 | 411,176 | 409,451 | 404,014 | 425,698 | 390,318 | |||||||||||||||||||||
Tangible equity (1) | 451,338 | 423,721 | 407,879 | 406,154 | 400,717 | 422,401 | 387,021 | |||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||
Net (charge-offs) recoveries | $ | 78 | $ | 78 | $ | 138 | $ | 92 | $ | (2 | ) | $ | 386 | $ | 492 | |||||||||||||
Nonperforming loans | 7,037 | 5,829 | 6,123 | 4,314 | 2,641 | 7,037 | 2,641 | |||||||||||||||||||||
Nonperforming assets | 7,037 | 5,829 | 6,123 | 4,314 | 2,641 | 7,037 | 2,641 | |||||||||||||||||||||
Allowance for loan losses | 30,312 | 28,984 | 27,356 | 33,699 | 33,298 | 30,312 | 33,298 | |||||||||||||||||||||
Annualized net (charge offs) recoveries to average loans | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.01 | % | ||||||||||||||
Nonperforming loans to total loans | 0.14 | % | 0.13 | % | 0.12 | % | 0.09 | % | 0.06 | % | 0.14 | % | 0.06 | % | ||||||||||||||
Nonperforming assets to total assets | 0.12 | % | 0.11 | % | 0.11 | % | 0.08 | % | 0.05 | % | 0.12 | % | 0.05 | % | ||||||||||||||
Allowance for loan losses to loans held-for-investment (2) | 0.60 | % | 0.63 | % | 0.64 | % | 0.71 | % | 0.75 | % | 0.60 | % | 0.75 | % | ||||||||||||||
Allowance for loan losses to nonperforming loans | 430.75 | % | 497.24 | % | 446.77 | % | 781.15 | % | 1260.81 | % | 430.75 | % | 1260.81 | % | ||||||||||||||
LOAN COMPOSITION | ||||||||||||||||||||||||||||
Multifamily residential | $ | 2,887,438 | $ | 2,628,691 | $ | 3,055,559 | $ | 2,889,947 | $ | 2,600,262 | $ | 2,887,438 | $ | 2,600,262 | ||||||||||||||
Single family residential | 1,957,546 | 1,857,042 | 1,787,194 | 1,734,911 | 1,746,148 | 1,957,546 | 1,746,148 | |||||||||||||||||||||
Commercial real estate | 112,492 | 95,668 | 73,459 | 69,754 | 59,611 | 112,492 | 59,611 | |||||||||||||||||||||
Construction and land | 41,165 | 48,004 | 51,433 | 42,142 | 29,465 | 41,165 | 29,465 | |||||||||||||||||||||
Non-mortgage | 50 | 50 | 50 | 50 | 50 | 50 | 50 | |||||||||||||||||||||
DEPOSIT COMPOSITION | ||||||||||||||||||||||||||||
Non-interest bearing transaction accounts | $ | 30,899 | $ | 27,166 | $ | 23,907 | $ | 14,490 | $ | 11,826 | $ | 30,899 | $ | 11,826 | ||||||||||||||
Interest bearing transaction accounts | 203,159 | 196,062 | 192,033 | 197,729 | 191,892 | 203,159 | 191,892 | |||||||||||||||||||||
Money market deposit accounts | 1,474,498 | 1,430,201 | 1,532,234 | 1,571,721 | 1,500,976 | 1,474,498 | 1,500,976 | |||||||||||||||||||||
Time deposits | 2,242,682 | 2,209,982 | 1,933,001 | 1,836,702 | 1,629,275 | 2,242,682 | 1,629,275 | |||||||||||||||||||||
(1) = Considered a non-GAAP financial measure. See ‘‘Non-GAAP Financial Measures’’ for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. Pre-tax, pre-provision net earnings is defined as net income plus income tax expense and provision for (reversal of) loan losses. Net tangible book value is defined as total assets less goodwill and total liabilities. Efficiency ratio is defined as the ratio of noninterest expense to net interest income plus noninterest income. Tangible assets is defined as total assets less goodwill. Tangible equity is defined as total equity less goodwill. We calculate our pro forma net income, return on average assets, return on average equity and return on average tangible equity by adding back our franchise S Corporation tax to net income, and using a combined C Corporation effective tax rate for Federal and California income taxes of 42.0%. This calculation reflects only the change in our status as an S Corporation and does not give effect to any other transaction. | ||||||||||||||||||||||||||||
(2) = Loans held-for-investment include unamortized deferred fees/costs. All portfolio loans are collateralized by real estate with the exception of one $50 thousand non-mortgage loan. | ||||||||||||||||||||||||||||
(3) = Earnings per common share, basic and diluted, book value per common share and number of common shares outstanding have been adjusted retroactively to reflect a 200-for-1 stock split effective April 27, 2017. | ||||||||||||||||||||||||||||
Average Balance Sheet and Net Interest Analysis | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | ||||||||||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||||||||||||||||||||||||||||||||||
Balance | Inc / Exp | Yield/Rate (6) | Balance | Inc / Exp | Yield/Rate (6) | Balance | Inc / Exp | Yield/Rate (6) | Balance | Inc / Exp | Yield/Rate (6) | Balance | Inc / Exp | Yield/Rate (6) | ||||||||||||||||||||||||||||||||||
Interest-Earning Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily residential | $ | 2,748,817 | $ | 25,093 | 3.65 | % | $ | 3,127,491 | $ | 27,445 | 3.51 | % | $ | 2,987,171 | $ | 25,681 | 3.44 | % | $ | 2,724,909 | $ | 23,490 | 3.45 | % | $ | 2,524,648 | $ | 21,690 | 3.44 | % | ||||||||||||||||||
Single family residential | 1,924,628 | 15,830 | 3.29 | % | 1,852,487 | 15,371 | 3.32 | % | 1,780,312 | 14,178 | 3.19 | % | 1,755,119 | 14,118 | 3.22 | % | 1,744,356 | 13,444 | 3.08 | % | ||||||||||||||||||||||||||||
Commercial | 97,252 | 1,120 | 4.61 | % | 81,577 | 933 | 4.57 | % | 71,907 | 841 | 4.68 | % | 60,953 | 784 | 5.14 | % | 56,555 | 668 | 4.72 | % | ||||||||||||||||||||||||||||
Construction, land and NM | 47,957 | 434 | 3.62 | % | 48,044 | 431 | 3.59 | % | 48,069 | 473 | 3.94 | % | 37,391 | 351 | 3.75 | % | 34,883 | 252 | 2.89 | % | ||||||||||||||||||||||||||||
Total loans (1) | 4,818,654 | 42,477 | 3.53 | % | 5,109,599 | 44,180 | 3.46 | % | 4,887,459 | 41,173 | 3.37 | % | 4,578,372 | 38,743 | 3.38 | % | 4,360,442 | 36,054 | 3.31 | % | ||||||||||||||||||||||||||||
Securities available-for-sale | 473,085 | 1,826 | 1.54 | % | 484,469 | 1,646 | 1.36 | % | 475,090 | 1,603 | 1.35 | % | 456,953 | 1,477 | 1.29 | % | 421,956 | 1,088 | 1.03 | % | ||||||||||||||||||||||||||||
Securities held-to-maturity (2) | 6,948 | 59 | 3.40 | % | 7,047 | 57 | 3.24 | % | 7,249 | 61 | 3.37 | % | 7,452 | 59 | 3.17 | % | 7,751 | 62 | 3.20 | % | ||||||||||||||||||||||||||||
Cash and cash equivalents | 89,551 | 274 | 1.22 | % | 104,776 | 313 | 1.19 | % | 85,418 | 211 | 0.99 | % | 70,983 | 128 | 0.72 | % | 79,029 | 101 | 0.51 | % | ||||||||||||||||||||||||||||
Total interest-earning assets | $ | 5,388,238 | $ | 44,636 | 3.31 | % | $ | 5,705,891 | $ | 46,196 | 3.24 | % | $ | 5,455,216 | $ | 43,048 | 3.16 | % | $ | 5,113,760 | $ | 40,407 | 3.16 | % | $ | 4,869,178 | $ | 37,305 | 3.06 | % | ||||||||||||||||||
Noninterest-earning assets | 72,988 | 80,144 | 62,188 | 58,426 | 52,407 | |||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 5,461,226 | $ | 5,786,035 | $ | 5,517,404 | $ | 5,172,186 | $ | 4,921,585 | ||||||||||||||||||||||||||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Transaction accounts (3) | $ | 236,169 | $ | 427 | 0.72 | % | $ | 220,206 | $ | 416 | 0.76 | % | $ | 212,295 | $ | 359 | 0.68 | % | $ | 205,712 | $ | 351 | 0.68 | % | $ | 197,987 | $ | 333 | 0.67 | % | ||||||||||||||||||
Money market demand accounts | 1,423,937 | 3,079 | 0.86 | % | 1,462,382 | 3,016 | 0.82 | % | 1,553,124 | 3,085 | 0.79 | % | 1,545,433 | 2,919 | 0.76 | % | 1,493,331 | 2,822 | 0.76 | % | ||||||||||||||||||||||||||||
Time deposits | 2,254,043 | 7,779 | 1.38 | % | 2,052,055 | 6,724 | 1.31 | % | 1,861,806 | 5,614 | 1.21 | % | 1,716,305 | 5,044 | 1.18 | % | 1,622,206 | 5,174 | 1.28 | % | ||||||||||||||||||||||||||||
Total deposits | 3,914,149 | 11,285 | 1.15 | % | 3,734,643 | 10,156 | 1.09 | % | 3,627,225 | 9,058 | 1.00 | % | 3,467,450 | 8,314 | 0.96 | % | 3,313,524 | 8,329 | 1.01 | % | ||||||||||||||||||||||||||||
FHLB advances | 873,206 | 3,759 | 1.72 | % | 1,412,319 | 5,260 | 1.49 | % | 1,271,353 | 4,260 | 1.34 | % | 1,084,901 | 3,276 | 1.21 | % | 993,505 | 2,873 | 1.16 | % | ||||||||||||||||||||||||||||
Senior debt | 94,139 | 1,578 | 6.70 | % | 94,106 | 1,577 | 6.70 | % | 94,073 | 1,577 | 6.71 | % | 94,037 | 1,577 | 6.71 | % | 94,006 | 1,578 | 6.71 | % | ||||||||||||||||||||||||||||
Junior subordinated debentures | 61,857 | 447 | 2.89 | % | 61,857 | 430 | 2.78 | % | 61,857 | 408 | 2.64 | % | 61,857 | 380 | 2.46 | % | 61,857 | 368 | 2.38 | % | ||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 4,943,351 | $ | 17,069 | 1.38 | % | $ | 5,302,925 | $ | 17,423 | 1.31 | % | $ | 5,054,508 | $ | 15,303 | 1.21 | % | $ | 4,708,245 | $ | 13,547 | 1.15 | % | $ | 4,462,892 | $ | 13,148 | 1.18 | % | ||||||||||||||||||
Noninterest-bearing liabilities | 63,240 | 56,092 | 51,720 | 54,490 | 54,679 | |||||||||||||||||||||||||||||||||||||||||||
Total stockholders' equity | 454,635 | 427,018 | 411,176 | 409,451 | 404,014 | |||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 5,461,226 | $ | 5,786,035 | $ | 5,517,404 | $ | 5,172,186 | $ | 4,921,585 | ||||||||||||||||||||||||||||||||||||||
Net interest spread (4) | 1.93 | % | 1.93 | % | 1.95 | % | 2.01 | % | 1.88 | % | ||||||||||||||||||||||||||||||||||||||
Net interest income/margin (5) | $ | 27,567 | 2.05 | % | $ | 28,773 | 2.02 | % | $ | 27,745 | 2.03 | % | $ | 26,860 | 2.10 | % | $ | 24,157 | 1.98 | % | ||||||||||||||||||||||||||||
(1) Loan balance includes portfolio real estate loans, real estate loans held for sale and one $50 thousand non-mortgage loan. Non-accrual loans are included in total loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Securities held to maturity include municipal securities. Yields are not calculated on a tax equivalent basis. | ||||||||||||||||||||||||||||||||||||||||||||||||
(3) Transaction accounts include both interest and non-interest bearing deposits. | ||||||||||||||||||||||||||||||||||||||||||||||||
(4) Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||
(5) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||||||||||||||||||||||||||||||||
(6) Yields shown are annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance Sheet and Net Interest Analysis | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||||
Balance | Inc / Exp | Yield/Rate | Balance | Inc / Exp | Yield/Rate | |||||||||||||||
Interest-Earning Assets | ||||||||||||||||||||
Multifamily residential | $ | 2,897,794 | 101,708 | 3.51 | % | $ | 2,437,487 | 84,766 | 3.48 | % | ||||||||||
Single family residential | 1,828,668 | 59,498 | 3.25 | % | 1,629,370 | 50,756 | 3.12 | % | ||||||||||||
Commercial | 78,032 | 3,678 | 4.71 | % | 49,863 | 2,886 | 5.79 | % | ||||||||||||
Construction, land and NM | 45,400 | 1,689 | 3.72 | % | 29,993 | 977 | 3.26 | % | ||||||||||||
Total loans (1) | 4,849,894 | 166,573 | 3.43 | % | 4,146,713 | 139,385 | 3.36 | % | ||||||||||||
Securities available-for-sale | 472,477 | 6,553 | 1.39 | % | 402,035 | 4,151 | 1.03 | % | ||||||||||||
Securities held-to-maturity (2) | 7,172 | 236 | 3.29 | % | 8,570 | 253 | 2.95 | % | ||||||||||||
Cash and cash equivalents | 87,780 | 925 | 1.05 | % | 76,003 | 370 | 0.49 | % | ||||||||||||
Total interest-earning assets | $ | 5,417,323 | $ | 174,287 | 3.22 | % | $ | 4,633,321 | $ | 144,159 | 3.11 | % | ||||||||
Noninterest-earning assets | 68,509 | 43,355 | ||||||||||||||||||
Total Assets | $ | 5,485,832 | $ | 4,676,676 | ||||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||
Transaction accounts (3) | $ | 218,683 | $ | 1,553 | 0.71 | % | $ | 130,573 | $ | 502 | 0.38 | % | ||||||||
Money market demand accounts | 1,495,794 | 12,099 | 0.81 | % | 1,440,129 | 10,506 | 0.73 | % | ||||||||||||
Time deposits | 1,972,747 | 25,161 | 1.28 | % | 1,629,478 | 20,640 | 1.27 | % | ||||||||||||
Total deposits | 3,687,224 | 38,813 | 1.05 | % | 3,200,180 | 31,648 | 0.99 | % | ||||||||||||
FHLB advances | 1,160,555 | 16,555 | 1.43 | % | 879,237 | 10,219 | 1.16 | % | ||||||||||||
Senior debt | 94,090 | 6,309 | 6.71 | % | 93,956 | 6,309 | 6.71 | % | ||||||||||||
Junior subordinated debentures | 61,857 | 1,665 | 2.69 | % | 61,857 | 1,348 | 2.18 | % | ||||||||||||
Total interest-bearing liabilities | $ | 5,003,726 | $ | 63,342 | 1.27 | % | $ | 4,235,230 | $ | 49,524 | 1.17 | % | ||||||||
Noninterest-bearing liabilities | 56,408 | 51,128 | ||||||||||||||||||
Total stockholders' equity | 425,698 | 390,318 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ | 5,485,832 | $ | 4,676,676 | ||||||||||||||||
Net interest spread (4) | 1.95 | % | 1.94 | % | ||||||||||||||||
Net interest income/margin (5) | $ | 110,945 | 2.05 | % | $ | 94,635 | 2.04 | % | ||||||||||||
(1) Loan balance includes portfolio real estate loans, real estate loans held for sale and one $50 thousand non-mortgage loan. Non-accrual loans are included in total loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. | ||||||||||||||||||||
(2) Securities held to maturity include municipal securities . Yields are not calculated on a tax equivalent basis. | ||||||||||||||||||||
(3) Transaction accounts include both interest and non-interest bearing deposits. See "Selected Historical Financial Data". | ||||||||||||||||||||
(4) Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities. | ||||||||||||||||||||
(5) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||||
Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||
(Dollars in thousands) | As of and for the Three Months Ended | As of and for the Years Ended | ||||||||||||||||||||||||||||
31-Dec-17 | 30-Sep-17 | 30-Jun-17 | 31-Mar-17 | 31-Dec-16 | 31-Dec-17 | 31-Dec-16 | ||||||||||||||||||||||||
Pre-tax, pre-provision net earnings | ||||||||||||||||||||||||||||||
Income before taxes | $ | 14,577 | $ | 18,359 | $ | 19,574 | $ | 12,721 | $ | 13,741 | $ | 65,231 | $ | 53,940 | ||||||||||||||||
Plus: Provision (reversal of provision) for loan losses | 1,250 | 1,550 | (6,481 | ) | 309 | (3,624 | ) | (3,372 | ) | (12,703 | ) | |||||||||||||||||||
Pre-tax, pre-provision net earnings | $ | 15,827 | $ | 19,909 | $ | 13,093 | $ | 13,030 | $ | 10,117 | $ | 61,859 | $ | 41,237 | ||||||||||||||||
Net Tangible Book Value | ||||||||||||||||||||||||||||||
Total Assets | $ | 5,704,380 | $ | 5,319,557 | $ | 5,669,417 | $ | 5,391,540 | $ | 5,063,585 | $ | 5,704,380 | $ | 5,063,585 | ||||||||||||||||
Less: Goodwill | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | ||||||||||||||||
Less: Total liabilities | (5,154,635 | ) | (4,886,097 | ) | (5,253,131 | ) | (4,984,034 | ) | (4,659,210 | ) | (5,154,635 | ) | (4,659,210 | ) | ||||||||||||||||
Net tangible book value | $ | 546,448 | $ | 430,163 | $ | 412,989 | $ | 404,209 | $ | 401,078 | $ | 546,448 | $ | 401,078 | ||||||||||||||||
Efficiency Ratio | ||||||||||||||||||||||||||||||
Noninterest expense (numerator) | $ | 13,221 | $ | 13,782 | $ | 14,840 | $ | 14,701 | $ | 17,100 | $ | 56,544 | $ | 61,242 | ||||||||||||||||
Net interest income | $ | 27,567 | $ | 28,773 | $ | 27,745 | $ | 26,860 | $ | 24,157 | $ | 110,945 | $ | 94,635 | ||||||||||||||||
Noninterest income | 1,481 | 4,918 | 188 | 871 | 3,060 | 7,458 | 7,844 | |||||||||||||||||||||||
Operating revenue (denominator) | $ | 29,048 | $ | 33,691 | $ | 27,933 | $ | 27,731 | $ | 27,217 | $ | 118,403 | $ | 102,479 | ||||||||||||||||
Efficiency ratio | 45.51 | % | 40.91 | % | 53.13 | % | 53.01 | % | 62.83 | % | 47.76 | % | 59.76 | % | ||||||||||||||||
Tangible Assets | ||||||||||||||||||||||||||||||
Total Assets | $ | 5,704,380 | $ | 5,319,557 | $ | 5,669,417 | $ | 5,391,540 | $ | 5,063,585 | $ | 5,704,380 | $ | 5,063,585 | ||||||||||||||||
Less: Goodwill | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | ||||||||||||||||
Tangible Assets | $ | 5,701,083 | $ | 5,316,260 | $ | 5,666,120 | $ | 5,388,243 | $ | 5,060,288 | $ | 5,701,083 | $ | 5,060,288 | ||||||||||||||||
Tangible Stockholders' Equity | ||||||||||||||||||||||||||||||
Total Stockholders' Equity | $ | 549,745 | $ | 433,460 | $ | 416,286 | $ | 407,506 | $ | 404,375 | $ | 549,745 | $ | 404,375 | ||||||||||||||||
Less: Goodwill | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | ||||||||||||||||
Tangible Stockholders' Equity | $ | 546,448 | $ | 430,163 | $ | 412,989 | $ | 404,209 | $ | 401,078 | $ | 546,448 | $ | 401,078 | ||||||||||||||||
Tangible Stockholders' Equity to Tangible Assets | ||||||||||||||||||||||||||||||
Tangible stockholders' equity (numerator) | $ | 546,448 | $ | 430,163 | $ | 412,989 | $ | 404,209 | $ | 401,078 | $ | 546,448 | $ | 401,078 | ||||||||||||||||
Tangible assets (denominator) | $ | 5,701,083 | $ | 5,316,260 | $ | 5,666,120 | $ | 5,388,243 | $ | 5,060,288 | $ | 5,701,083 | $ | 5,060,288 | ||||||||||||||||
Tangible Stockholders' Equity to Tangible Assets | 9.58 | % | 8.09 | % | 7.29 | % | 7.50 | % | 7.93 | % | 9.58 | % | 7.93 | % | ||||||||||||||||
Return on Average Tangible Equity | ||||||||||||||||||||||||||||||
Annualized net income (numerator) | $ | 81,684 | $ | 70,988 | $ | 75,684 | $ | 49,180 | $ | 53,108 | $ | 69,384 | $ | 52,121 | ||||||||||||||||
Average stockholders' equity | $ | 454,635 | $ | 427,018 | $ | 411,176 | $ | 409,451 | $ | 404,014 | $ | 425,698 | $ | 390,318 | ||||||||||||||||
Less: Average goodwill | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | (3,297 | ) | ||||||||||||||||
Average tangible stockholders' equity (denominator) | $ | 451,338 | $ | 423,721 | $ | 407,879 | $ | 406,154 | $ | 400,717 | $ | 422,401 | $ | 387,021 | ||||||||||||||||
Return on Average Tangible Equity | 18.10 | % | 16.75 | % | 18.56 | % | 12.11 | % | 13.25 | % | 16.43 | % | 13.47 | % | ||||||||||||||||
Pro Forma Net Income | ||||||||||||||||||||||||||||||
Income before provision for income taxes | $ | 14,577 | $ | 18,359 | $ | 19,574 | $ | 12,721 | $ | 13,741 | $ | 65,231 | $ | 53,940 | ||||||||||||||||
Pro forma provision for income taxes (4) | 6,122 | 7,711 | 8,221 | 5,343 | 5,771 | 27,397 | 22,655 | |||||||||||||||||||||||
Pro forma net income | $ | 8,455 | $ | 10,648 | $ | 11,353 | $ | 7,378 | $ | 7,970 | $ | 37,834 | $ | 31,285 | ||||||||||||||||
Pro Forma Ratios | ||||||||||||||||||||||||||||||
Annualized pro forma net income (numerator) | $ | 33,819 | $ | 42,593 | $ | 45,412 | $ | 29,513 | $ | 31,879 | $ | 37,834 | $ | 31,285 | ||||||||||||||||
Average assets (denominator) | 5,461,226 | 5,786,035 | 5,517,404 | 5,172,186 | 4,921,585 | 5,485,832 | 4,676,676 | |||||||||||||||||||||||
Pro forma return on average assets | 0.62 | % | 0.74 | % | 0.82 | % | 0.57 | % | 0.65 | % | 0.69 | % | 0.67 | % | ||||||||||||||||
Average stockholders' equity (denominator) | 454,635 | 427,018 | 411,176 | 409,451 | 404,014 | 425,698 | 390,318 | |||||||||||||||||||||||
Pro forma return on average stockholders' equity | 7.44 | % | 9.97 | % | 11.04 | % | 7.21 | % | 7.89 | % | 8.89 | % | 8.02 | % | ||||||||||||||||
Average tangible stockholders' equity (denominator) | 451,338 | 423,721 | 407,879 | 406,154 | 400,717 | 422,401 | 387,021 | |||||||||||||||||||||||
Pro forma return on average stockholders' equity | 7.49 | % | 10.05 | % | 11.13 | % | 7.27 | % | 7.96 | % | 8.96 | % | 8.08 | % | ||||||||||||||||
Contact:
Investor Relations
707-921-3655
investorrelations@lbsavings.com
Source: Luther Burbank Corporation