Luther Burbank Stock Price, News & Analysis

Luther Burbank Corporation (NASDAQ: LBC) reported a net income of $13.4 million, or $0.26 per diluted share, for Q1 2023, reflecting a slight decrease from the previous quarter. The net interest margin dropped to 1.72%, primarily due to rising interest expenses and a decline in deposits, which fell by 3.3% to $5.6 billion. The company increased its liquidity, raising its borrowing capacity by 34% to $2.3 billion. Despite challenges posed by the volatile banking sector, Luther Burbank maintained a low nonperforming asset ratio of 0.06% and strengthened its capital position, with a Tier 1 leverage ratio of 9.73%. Future growth may be hindered by lower consumer demand and expected decreases in loan production.

Luther Burbank Corporation (NASDAQ: LBC) reported a net income of $13.7 million, or $0.27 per diluted share, for Q4 2022, down from $21 million or $0.41 EPS in Q3 2022. The net interest margin decreased to 2.01% due to rising interest rates, impacting net interest income which fell to $39.3 million. Loans grew by $156 million, achieving an annualized growth rate of 9%. The company highlighted a nonperforming assets ratio of 0.08% and expressed optimism about its merger with Washington Federal, expected to close in 2023.

Washington Federal reported quarterly earnings of $79.5 million, marking a 58% increase from the previous year. Net income available for common shareholders rose to $1.16 per diluted share, a 63% rise. Return on equity was 15.15%, while return on assets hit 1.50%. Loan growth was strong, increasing $880 million or 5.5%. The efficiency ratio improved to 46.8%. Total assets rose to $21.7 billion. The firm anticipates growth from its merger with Luther Burbank Corporation.

Washington Federal and Luther Burbank Corporation announced a definitive merger agreement valued at approximately $654 million. Under this all-stock transaction, Luther Burbank shareholders will receive 0.3353 shares of Washington Federal stock for each share they own. The merger is expected to close by the second quarter of 2023, subject to regulatory and shareholder approvals. This strategic move aims to enhance Washington Federal’s presence in California, with a combined total of approximately $29 billion in assets and over 210 locations across several states.

Washington Federal (NASDAQ: WAFD) has signed a definitive merger agreement to acquire Luther Burbank Corporation (NASDAQ: LBC) in an all-stock transaction valued at approximately $654 million. Luther Burbank shareholders will receive 0.3353 shares of Washington Federal stock for each share held. This merger aims to enhance Washington Federal's presence in California and is expected to close in the second quarter of 2023, pending regulatory and shareholder approvals. The combined entity will manage assets totaling approximately $29 billion.