Luther Burbank reports Q4 EPS 27c, consensus 33c

Reports Q4 book value per share of $13.36; Tangible book value per share of $13.30 and Q4 net interest income in the fourth quarter of 2022 was $39.3M, a decrease of $6.2M from the third quarter, primarily due to higher interest expense on our deposit portfolio, partially offset by higher interest income on loans. The increase in interest expense on deposits was due to higher interest rates, while the increase in loan interest income was due to an increase in the average balance and interest rate of loans, as well as higher income earned on our interest rate swaps. As compared to the linked quarter, the average balance and cost of interest bearing deposits increased by $269M and 100 basis points, respectively, while the average balance and yield on our loan portfolio increased by $193.7M and 38 basis points. Simone Lagomarsino, President and Chief Executive Officer, stated, "I’m pleased to report our earnings for the fourth quarter. We remain focused on executing on our core fundamentals including strong credit underwriting, excellent customer service and efficient operations, as we work to manage the pressure on our margin resulting from the unprecedented rising interest rate environment. "