Luther Burbank Corporation (NASDAQ: LBC) (the “Company”), the
holding company for Luther Burbank Savings (the “Bank”), today
reported net income of $1.9 million and $22.3 million, or $0.04 and
$0.44 diluted earnings per common share (“EPS”), for the quarter
and nine months ended September 30, 2023, respectively.
Simone Lagomarsino, President and Chief
Executive Officer, stated, “Our financial performance for the
current quarter reflects our continued focus on effectively
managing risks associated with interest rates and credit, while
also cautiously maintaining conservative levels of liquidity and
capital. At the end of the quarter, our liquidity ratio was 13.84%
and our credit quality remained strong, with our ratio of
nonperforming assets to total assets of 0.08%. In addition, we
prudently increased our coverage ratio of allowance for credit
losses to total loans to 58 basis points by adding $3.0 million in
provision for credit losses during the quarter to address
forecasted declines in real estate market values. As I mentioned
last quarter, in light of fierce deposit competition in the
industry, I am encouraged that our customer deposit activity
remains stable. As compared to the prior quarter, retail deposits
increased by $55.2 million, or 1%, at September 30, 2023 and
uninsured deposits remained relatively consistent at $1.0 billion,
or 17.6% of our total deposits. At the same time, loans declined by
$94 million, or 1%, during the quarter, as the prepayment of loans
outpaced our loan production during the period."
Ms. Lagomarsino continued, "Consistent with the
past several quarters, our financial results mirror the significant
challenges caused by the rapid rise in market interest rates, which
have continued to increase our cost of funds and compress our
margins. I'm proud that we were able to deliver over $22 million in
year to date net earnings, despite these challenging economic
conditions. I anticipate that our profitability will continue to be
under stress until interest rate pressures recede. However, with
more than $467 million of excess tier 1 leverage capital as
compared to minimum regulatory requirements, I believe that we are
well positioned to weather this challenging period.”
Liquidity and Borrowing
Capacity
We continue to closely monitor our liquidity
levels to ensure that we are well-positioned for deposit
volatility. At September 30, 2023, our access to on and
off-balance sheet liquidity was $3.6 billion, representing 44% of
our total assets. We have pledged substantially all of our loans
and investment portfolio to the Federal Home Loan Bank of San
Francisco ("FHLB") and Federal Reserve Bank of San Francisco
("FRB") for liquidity contingency planning. Although the Bank has
access to an aggregate borrowing capacity of $1.2 billion under the
FRB's Bank Term Funding Program and discount window, we have not
utilized either FRB line during the current year. At the end of the
quarter, our total on-balance sheet liquidity and borrowing
capacity, as shown below, represented 348% of our uninsured deposit
balances. As of September 30, 2023, we maintained the
following liquidity position:
(Dollars in thousands) |
September 30, 2023 |
|
% of Assets |
Unrestricted cash & cash equivalents |
$ |
579,724 |
|
7.13 |
% |
Unpledged liquid securities |
|
31,903 |
|
0.39 |
% |
Unutilized brokered deposit capacity(1) |
|
422,266 |
|
5.19 |
% |
Unutilized FHLB borrowing capacity(2)(3) |
|
1,276,920 |
|
15.70 |
% |
Unutilized FRB borrowing capacity(2) |
|
1,197,853 |
|
14.73 |
% |
Commercial line of credit |
|
25,000 |
|
0.31 |
% |
Total liquidity |
$ |
3,533,666 |
|
43.44 |
% |
(1) Capacity based on internal
guidelines.(2) Capacity based on pledged
collateral specific to the FHLB or FRB, as
applicable.(3) Availability to borrow from the
FHLB is permitted up to 40% of the Bank assets or $3.3 billion,
subject to collateral capacity. At September 30, 2023, we had $1.4
billion and $62.6 million in outstanding advances and letters of
credit with the FHLB, respectively. |
|
Income Statement
The Company reported net income of $1.9 million,
or $0.04 EPS, for the three months ended September 30, 2023
compared to net income of $6.9 million, or $0.14 EPS, for the
linked quarter. Pre-tax, pre-provision net earnings totaled $5.6
million for the three months ended September 30, 2023 compared
to $11.1 million for the linked quarter.
Net Interest Income
Net interest income in the third quarter of 2023
was $19.6 million, a decrease of $6.8 million from the second
quarter, primarily due to higher interest expense on our deposit
portfolio, partially offset by lower interest expense on FHLB
advances. Interest expense on deposits increased $7.4 million due
to a 47 basis point increase in the interest rate paid on deposits
during the third quarter as compared to the linked quarter.
Interest expense on FHLB advances decreased $1.9 million due to a
decline in the average balance and cost of FHLB advances of $187.1
million and 13 basis points, respectively, as compared to the prior
quarter.
As of September 30, 2023, the Company held
swaps with an aggregate notional amount of $1.8 billion, carrying a
weighted average fixed payment rate of 3.78%, while receiving a
federal funds weighted average rate of 5.33%. The Company's swaps
provide a partial hedge against the interest rate risk associated
with hybrid adjustable loans in their fixed period, as well as a
pool of fixed rate single family loans. The net hedging impact
associated with our swaps is reported in interest income on loans.
During the quarters ended September 30 and June 30, 2023, interest
income earned on these swaps totaled $6.4 million and $8.0 million,
respectively. The decline in interest income on swaps was
attributable to the maturity of a $300 million swap at the end of
the prior quarter. The Company replaced this swap with a new $300
million swap at the end of the current quarter.
Net interest margin for the third quarter of
2023 was 0.97% compared to 1.27% for the previous quarter. The
decrease in our net interest margin reflects the net impact of an
increase in the cost of interest bearing liabilities, partially
offset by an increase in the yield on interest earning assets.
During the third quarter, the cost of our interest bearing
liabilities increased by 34 basis points primarily due to an
increase in the cost of our deposits, while the yield on our
interest earning assets increased by 6 basis points primarily due
to increases in yields on our cash and investment holdings. Our net
interest spread in the third quarter was 0.70%, a decrease of 28
basis points as compared to the linked quarter.
Noninterest Income
Noninterest income for the third quarter of 2023
was $1.0 million, an increase of $141 thousand compared to the
second quarter. The increase was primarily attributable to a $261
thousand increase in FHLB dividends due to a 75 basis point
increase in the annualized dividend rate compared to the prior
quarter.
Noninterest income primarily consists of FHLB
stock dividends, fair value adjustments on equity securities and
fee income.
Noninterest Expense
Noninterest expense for the third quarter of
2023 was $15.0 million, a decrease of $1.1 million compared to the
linked quarter. The decrease was due to a $1.6 million decrease in
compensation costs primarily due to an approximate 10% workforce
reduction during the second quarter, which predominantly affected
our loan production team, and to a lesser extent, a decline in the
required accrual for post-retirement benefits due to rising
long-term interest rates during the period. Noninterest expense was
negatively impacted by a $514 thousand increase in costs incurred
in connection with our previously announced merger with Washington
Federal, Inc. ("WaFd") compared to the prior quarter. Our
efficiency ratio was 73.0% for the quarter ended September 30,
2023 compared to 59.2% for the previous quarter and was affected by
the decline in net interest income, partially offset by the
decrease in noninterest expense.
Noninterest expense primarily consists of
compensation costs, as well as expenses incurred related to
occupancy, depreciation and amortization, data processing,
marketing, professional services and merger-related costs.
Balance Sheet
Total assets at September 30, 2023 were
$8.1 billion, an increase of $159.3 million, or 2.0%, from
December 31, 2022. The increase was primarily due to a $393.8
million increase in cash and cash equivalents as compared to the
prior year end, partially offset by a $183.2 million decline in
loans and a $71.4 million decrease in available for sale
securities. Total liabilities were $7.4 billion at quarter end, an
increase of $146.8 million, or 2.0%, from December 31, 2022.
The increase in total liabilities was primarily attributable to a
$218.5 million increase in FHLB advances, partially offset by a
$79.2 million decline in deposits.
Loans
Total loans at September 30, 2023 were $6.8
billion, a decrease of 2.6% compared to the prior year end. The
change in loans during the nine months ended September 30,
2023 was primarily attributable to loan prepayments exceeding loan
originations. Loan production has slowed substantially during 2023.
During the year to date period, loan prepayments totaled $403.0
million while loan origination volume totaled $222.9 million. Our
loan portfolio generally consists of income property loans ("IPL")
and single family residential ("SFR") mortgage loans, which
represent 66.0% and 33.7%, respectively, of our total loan
portfolio. Our IPL portfolio primarily consists of
hybrid-adjustable rate multifamily residential and nonresidential
commercial real estate loans and totaled $4.5 billion and $4.7
billion at September 30, 2023 and December 31, 2022,
respectively. Our SFR loan portfolio totaled $2.3 billion, as of
both September 30, 2023 and December 31, 2022, and consisted
primarily of hybrid-adjustable rate loans representing 86.5% and
85.9%, respectively, of the total as of the same dates. The
remaining portion of our SFR loan portfolio primarily consisted of
30-year fixed rate loans, representing 13.4% and 13.9% of the SFR
portfolio as of September 30, 2023 and December 31, 2022,
respectively.
Selected Loan Data (1) |
As of or For the Three Months Ended |
|
As of or For the Nine Months Ended |
(Dollars in thousands) |
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Loan Yield |
IPL Portfolio |
|
4.52 |
% |
|
|
4.56 |
% |
|
|
3.75 |
% |
|
|
4.48 |
% |
|
|
3.75 |
% |
SFR Loan Portfolio |
|
4.01 |
% |
|
|
3.84 |
% |
|
|
3.56 |
% |
|
|
3.96 |
% |
|
|
3.04 |
% |
Loan Originations |
|
|
|
|
|
|
|
IPL Portfolio |
$ |
19,554 |
|
$ |
18,994 |
|
$ |
296,296 |
|
$ |
61,928 |
|
$ |
1,109,427 |
SFR Loan Portfolio |
$ |
43,248 |
|
$ |
50,825 |
|
$ |
231,249 |
|
$ |
161,000 |
|
$ |
714,596 |
Weighted Average Coupon on Loan Originations |
IPL Portfolio |
|
6.10 |
% |
|
|
6.02 |
% |
|
|
4.31 |
% |
|
|
6.08 |
% |
|
|
3.61 |
% |
SFR Loan Portfolio |
|
7.25 |
% |
|
|
7.06 |
% |
|
|
5.06 |
% |
|
|
6.89 |
% |
|
|
3.93 |
% |
Prepayment Speeds |
IPL Portfolio |
|
5.96 |
% |
|
|
6.49 |
% |
|
|
16.02 |
% |
|
|
5.15 |
% |
|
|
20.67 |
% |
SFR Loan Portfolio |
|
6.57 |
% |
|
|
5.61 |
% |
|
|
15.24 |
% |
|
|
6.32 |
% |
|
|
27.07 |
% |
Weighted Average Months to Repricing |
IPL Portfolio |
|
28.6 |
|
|
30.7 |
|
|
36.7 |
|
|
28.6 |
|
|
36.7 |
SFR Loan Portfolio |
|
75.8 |
|
|
78.4 |
|
|
88.0 |
|
|
75.8 |
|
|
88.0 |
|
|
|
|
|
|
|
|
|
|
(1) This table excludes loan data related to
construction loans, which are an insignificant component of our
loan portfolio. |
|
During the three months ended September 30,
2023, the Company's internal production of new loans was $62.8
million, a decrease of $7.0 million, or 10.1%, as compared to the
linked quarter. Loan originations remained low during the current
quarter primarily due to slowing demand resulting from the general
rise in interest rates, coupled with our desire to achieve a risk
adjusted return on new loan volume in light of the high cost of new
funding. During the quarter, the weighted average coupon on IPL and
SFR loan originations increased 8 basis points and 19 basis points,
respectively, compared to the linked quarter due to continued
increases in market interest rates.
During the current quarter, IPL yields decreased
4 basis points compared to the prior quarter primarily due to a
$2.0 million decrease in income earned on IPL related interest rate
swaps. This decline was attributable to the maturity of one IPL
related swap at the end of the prior quarter. IPL prepayment speeds
remained low during the current quarter as higher interest rates
have slowed purchase and refinance activity. The weighted average
interest rate on the prepayment and other principal reduction of
IPL loans was 5.31% and 5.20% for the quarters ended September and
June 30, 2023, respectively.
During the three months ended September 30,
2023, SFR portfolio yields increased by 17 basis points compared to
the linked quarter due to the origination of new loans at higher
rates throughout the current year, as well as a $353 thousand
increase in income earned on SFR loan related interest rate swaps.
This increase was attributable to increases in the average federal
funds rate during the current quarter. Consistent with the IPL
discussion above, SFR loan portfolio prepayment speeds remained low
during the current quarter due to high market interest rates. The
weighted average interest rate on the prepayment and other
principal reduction of SFR loans was 4.22% and 4.35% for the
quarters ended September and June 30, 2023, respectively.
At September 30, 2023, our entire loan portfolio
was secured by real estate collateral and 97% of our loan balances
financed multifamily residential ("MFR") or SFR loans having a
weighted average loan-to-value ("LTV") of 58.7%. Our MFR portfolio
primarily supports workforce housing and, at the end of the current
quarter, had an average loan balance of $1.6 million, with a
weighted average debt service coverage ratio of 1.6 times and
supporting collateral averaging 13.6 housing units. At
September 30, 2023, the SFR portfolio had an average loan
balance of $904 thousand and a weighted average borrower credit
score at origination/refresh of 759. Our exposure to nonresidential
commercial real estate is limited and, at September 30, 2023,
had an average loan balance of $2.1 million and a weighted average
debt service coverage ratio of 1.6 times. Additional detail is
provided within the table below as of September 30, 2023:
(Dollars in thousands) |
|
Count |
|
Balance |
|
Weighted Average LTV |
|
% of Total Loans |
Multifamily Real Estate |
|
2,675 |
|
$ |
4,349,645 |
|
55.9 |
% |
|
63.7 |
% |
Single Family Real Estate |
|
2,553 |
|
|
2,303,280 |
|
63.9 |
% |
|
33.7 |
% |
Commercial Real Estate Type: |
|
|
|
|
|
|
|
|
Mid Rise Office |
|
7 |
|
|
37,281 |
|
56.3 |
% |
|
0.5 |
% |
Strip Retail |
|
12 |
|
|
19,682 |
|
48.3 |
% |
|
0.3 |
% |
Medical Office |
|
5 |
|
|
18,314 |
|
58.6 |
% |
|
0.3 |
% |
Shopping Center |
|
5 |
|
|
17,748 |
|
56.0 |
% |
|
0.3 |
% |
Unanchored Retail |
|
8 |
|
|
14,399 |
|
43.9 |
% |
|
0.2 |
% |
Low Rise Office |
|
7 |
|
|
11,254 |
|
51.3 |
% |
|
0.2 |
% |
More than 50% commercial |
|
10 |
|
|
10,729 |
|
47.1 |
% |
|
0.2 |
% |
Anchored Retail |
|
2 |
|
|
7,851 |
|
47.9 |
% |
|
0.1 |
% |
Multi-Tenant Industrial |
|
5 |
|
|
6,888 |
|
41.0 |
% |
|
0.1 |
% |
Shadow Retail |
|
3 |
|
|
3,876 |
|
60.8 |
% |
|
0.1 |
% |
Flex Industrial |
|
2 |
|
|
2,340 |
|
60.3 |
% |
|
0.0 |
% |
Warehouse |
|
3 |
|
|
2,323 |
|
43.6 |
% |
|
0.0 |
% |
Restaurant |
|
2 |
|
|
1,231 |
|
25.6 |
% |
|
0.0 |
% |
Other |
|
1 |
|
|
70 |
|
13.3 |
% |
|
0.0 |
% |
Commercial Real Estate |
|
72 |
|
|
153,986 |
|
52.0 |
% |
|
2.3 |
% |
Construction (1) |
|
5 |
|
|
20,308 |
|
58.6 |
% |
|
0.3 |
% |
Total |
|
5,305 |
|
$ |
6,827,219 |
|
58.5 |
% |
|
100.0 |
% |
(1) Construction LTV is
calculated based on an "as-completed" property value. Undisbursed
commitments for construction loans totaled $4.3 million at
September 30, 2023.
Asset Quality
Nonperforming assets totaled $6.6 million, or
0.08% of total assets, at September 30, 2023, compared to $6.5
million, or 0.08% of total assets, at December 31, 2022.
Classified loans, which includes loans graded Substandard and of
greater risk, totaled $19.8 million and $18.9 million at
September 30, 2023 and December 31, 2022, respectively.
Criticized loans, which includes loans graded Special Mention and
classified loans, were $31.2 million at September 30, 2023
compared to $22.3 million at December 31, 2022. This increase
was primarily caused by the downgrade of three loans to Special
Mention during the current quarter. As of September 30, 2023
and December 31, 2022, we had no real estate owned and we have
not foreclosed on any collateral since 2015.
The Company adopted the Current Expected Credit
Losses ("CECL") methodology on January 1, 2023 using the modified
retrospective method. Results for reporting periods beginning
January 1, 2023 are reported under the CECL methodology, while
prior period results continue to be reported under previously
applicable U.S. generally accepted accounting principles ("GAAP").
During the three months ended September 30, 2023 and
June 30, 2023, the Company recorded loan loss provisions of
$3.1 million and $1.3 million, respectively. The provisions
recorded during both the current and prior quarter were primarily
related to forecasted declines in multifamily property values. Our
allowance for credit losses on loans to total loans was 0.58% at
September 30, 2023 compared to 0.54% and 0.52% at
June 30, 2023 and December 31, 2022, respectively.
Investments
Investments totaled $549.0 million and $620.8
million at September 30, 2023 and December 31, 2022,
respectively. Our investment portfolio is generally comprised of
U.S. government agency securities, with over 97.9% classified as
available for sale ("AFS"). The unrealized losses in the Company's
AFS and held to maturity portfolios were $62.3 million and $369
thousand, respectively, and represented 10.20% and 0.06%,
respectively, of the total amortized cost of our investment
portfolio at September 30, 2023. Unrealized losses in our AFS
portfolio are reported in our stockholders' equity, net of any tax
impact. Over 62% of our AFS securities portfolio consisted of
floating rate securities with an average repricing period of
approximately 13 months. The following table summarizes the
amortized cost and the estimated fair value of our investment
portfolio as of September 30, 2023.
(Dollars in thousands) |
AmortizedCost |
|
GrossUnrealizedGains |
|
GrossUnrealizedLosses |
|
Fair Value |
Available for sale: |
|
|
|
|
|
|
|
Government and Government Sponsored Entities: |
|
|
|
|
|
|
|
Commercial MBS and CMOs |
$ |
333,497 |
|
$ |
145 |
|
$ |
(34,736 |
) |
|
$ |
298,906 |
Residential MBS and CMOs |
|
205,351 |
|
|
13 |
|
|
(27,239 |
) |
|
|
178,125 |
Agency bonds |
|
37,069 |
|
|
76 |
|
|
(137 |
) |
|
|
37,008 |
Other ABS |
|
22,344 |
|
|
— |
|
|
(459 |
) |
|
|
21,885 |
Total available for sale |
|
598,261 |
|
|
234 |
|
|
(62,571 |
) |
|
|
535,924 |
Held to maturity: |
|
|
|
|
|
|
|
Government Sponsored Entities: |
|
|
|
|
|
|
|
Residential MBS |
|
2,971 |
|
|
— |
|
|
(369 |
) |
|
|
2,602 |
Other investments |
|
54 |
|
|
— |
|
|
— |
|
|
|
54 |
Total held to maturity |
|
3,025 |
|
|
— |
|
|
(369 |
) |
|
|
2,656 |
Equity securities |
|
10,018 |
|
|
— |
|
|
— |
|
|
|
10,018 |
Total investment securities |
$ |
611,304 |
|
$ |
234 |
|
$ |
(62,940 |
) |
|
$ |
548,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid Expenses and Other
Assets
Prepaid expenses and other assets totaled $160.6
million at September 30, 2023 compared to $147.8 million at
December 31, 2022, an increase of $12.8 million, or 8.7%. The
increase was primarily due to an $11.5 million increase in the fair
value of interest rate swaps.
Prepaid expenses and other assets primarily
consist of bank-owned life insurance, other investments, prepaid
expenses, accrued interest receivable, lease right-of-use assets,
fair value adjustments on derivatives and tax related items.
Deposits
Deposits totaled $5.8 billion at both
September 30, 2023 and December 31, 2022. Retail and
brokered deposits decreased $65.2 million and $14.1 million,
respectively, from December 31, 2022. The 1.2% decline in
retail deposits during the year to date period was primarily in
money market savings accounts, partially offset by increases in
time deposits. Consequently, the proportion of non-maturity
deposits within the portfolio decreased to 36.7% at
September 30, 2023 compared to 46.3% at December 31,
2022, while our portfolio of time deposits increased to 63.3% at
September 30, 2023 from 53.7% at December 31, 2022.
Retail deposit declines began after the events in the banking
industry that occurred in mid-March, and resulted in large first
quarter outflows which were partially offset by retail deposit
increases during the second and third quarters as deposit activity
stabilized. Our cost of interest bearing deposits was 3.77% during
the quarter ended September 30, 2023 compared to 3.30% during
the linked quarter. The increase in our cost of interest bearing
deposits compared to the prior quarter was predominantly due to
competitive pricing pressures, which have caused increases in the
cost of both retail and brokered deposits.
Estimated uninsured deposits represented 17.6%
and 22.5% of total deposits as of September 30, 2023 and
December 31, 2022, respectively. The following table
summarizes our deposit composition by source and segregates
balances between estimated insured and uninsured totals for each
deposit category as of the same dates.
|
September 30, 2023 |
|
December 31, 2022 |
(Dollars in thousands) |
Insured |
|
Uninsured |
|
Insured |
|
Uninsured |
Consumer |
$ |
3,372,444 |
|
$ |
818,831 |
|
$ |
3,090,797 |
|
$ |
931,454 |
Business |
|
930,719 |
|
|
196,359 |
|
|
981,692 |
|
|
379,560 |
Brokered |
|
441,749 |
|
|
— |
|
|
455,837 |
|
|
— |
Total deposits |
$ |
4,744,912 |
|
$ |
1,015,190 |
|
$ |
4,528,326 |
|
$ |
1,311,014 |
|
|
|
|
|
|
|
|
|
|
|
|
FHLB Advances
FHLB advances totaled $1.4 billion and $1.2
billion at September 30, 2023 and December 31, 2022,
respectively. The increase in FHLB advances was primarily utilized
to supplement our liquidity in response to the unexpected bank
failures in March 2023 and offset first quarter declines in retail
deposits, discussed above. At September 30, 2023, the weighted
average interest rate and weighted average remaining maturity of
FHLB advances outstanding was 3.40% and 1.1 years, respectively,
compared to 2.64% and 1.7 years, respectively, at December 31,
2022. The increase in the weighted average interest rate was due to
the general rise in interest rates.
Other Liabilities
Other liabilities totaled $95.4 million at
September 30, 2023 compared to $88.0 million at
December 31, 2022, an increase of $7.5 million, or 8.5%. The
change was predominately due to a $6.9 million increase in accrued
interest payable related to the higher cost of deposits compared to
the prior year end.
Other liabilities primarily consist of accrued
employee benefits, loan escrow balances, checks outstanding, lease
liabilities, low income housing tax credit investment commitments,
fair value adjustments for derivatives, accrued interest payable
and the allowance for credit losses on unfunded commitments and
other off-balance sheet exposures.
Capital
As of September 30, 2023, the Company was
in compliance with all applicable regulatory capital requirements
and the Bank qualified as ‘‘well-capitalized’’ for purposes of the
FDIC’s prompt corrective action regulations, as summarized in the
table below:
|
September 30, 2023 |
|
June 30,2023 |
|
September 30,2022 |
|
MinimumRequired For Capital Adequacy Purposes |
|
Minimum Required For Well- Capitalized
Institution |
(Dollars in thousands, unaudited) |
Capital Ratio |
ExcessCapital (2) |
|
CapitalRatio |
|
CapitalRatio |
|
CapitalRatio |
|
CapitalRatio |
Luther Burbank Corporation |
|
|
|
|
|
Tier 1 Leverage Ratio |
9.66 |
% |
$ |
467,323 |
|
9.40 |
% |
|
9.99 |
% |
|
4.00 |
% |
|
N/A |
Common Equity Tier 1 Risk-Based Ratio |
18.31 |
% |
|
454,642 |
|
17.95 |
% |
|
16.85 |
% |
|
7.00 |
% |
|
N/A |
Tier 1 Risk-Based Capital Ratio |
19.85 |
% |
|
456,228 |
|
19.47 |
% |
|
18.33 |
% |
|
8.50 |
% |
|
N/A |
Total Risk-Based Capital Ratio |
20.86 |
% |
|
416,210 |
|
20.39 |
% |
|
19.20 |
% |
|
10.50 |
% |
|
N/A |
Total Equity to Total Assets |
8.54 |
% |
N/A |
|
8.37 |
% |
|
8.54 |
% |
|
N/A |
|
N/A |
Tangible Stockholders' Equity to Tangible Assets
(1) |
8.51 |
% |
N/A |
|
8.33 |
% |
|
8.50 |
% |
|
N/A |
|
N/A |
Luther Burbank Savings |
|
|
|
|
|
Tier 1 Leverage Ratio |
10.60 |
% |
$ |
462,505 |
|
10.33 |
% |
|
11.06 |
% |
|
4.00 |
% |
|
5.00 |
% |
Common Equity Tier 1 Risk-Based Ratio |
21.80 |
% |
|
594,346 |
|
21.41 |
% |
|
20.29 |
% |
|
7.00 |
% |
|
6.50 |
% |
Tier 1 Risk-Based Capital Ratio |
21.80 |
% |
|
534,117 |
|
21.41 |
% |
|
20.29 |
% |
|
8.50 |
% |
|
8.00 |
% |
Total Risk-Based Capital Ratio |
22.81 |
% |
|
494,154 |
|
22.34 |
% |
|
21.17 |
% |
|
10.50 |
% |
|
10.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) See "Non-GAAP Reconciliation" table |
(2) Excess capital is based on the Basel III
capital minimums including the capital conservation buffer, with
the exception of Tier 1 Leverage Ratios, which are based on the
regulatory requirements of 4.00% and 5.00% for the Company and the
Bank, respectively. |
|
The Company's stockholders’ equity totaled
$695.0 million at September 30, 2023, an increase of $12.5
million, or 1.8%, compared to December 31, 2022. The increase
in stockholders' equity was primarily due to net income of $22.3
million, partially offset by unrealized losses on securities, net
of taxes, of $10.0 million during the nine months ended September
30, 2023.
Given the pending merger with WaFd, and the
desire to preserve capital in the current economic environment, the
Company’s Board of Directors is continuing to suspend quarterly
cash dividends.
Merger Update
As announced in November of last year, the
Company entered into an agreement to merge with and into WaFd. On
May 4, 2023, shareholders of each entity approved the transaction,
and on October 13, 2023, the Washington State Department of
Financial Institutions granted conditional approval of the merger.
The merger remains subject to the receipt of approvals from the
Federal Deposit Insurance Corporation and the Board of Governors of
the Federal Reserve System.
About Luther Burbank
Corporation
Luther Burbank Corporation is a publicly owned
company traded on the NASDAQ Capital Market under the symbol “LBC.”
The Company is headquartered in Santa Rosa, California with total
assets of $8.1 billion, total loans of $6.8 billion and total
deposits of $5.8 billion as of September 30, 2023. It operates
primarily through its wholly-owned subsidiary, Luther Burbank
Savings, an FDIC insured, California-chartered bank. Luther Burbank
Savings executes on its mission to improve the financial future of
customers, employees and shareholders by providing personal banking
and business banking services. It offers consumers a host of
competitive depository and mortgage products coupled with
personalized attention. Business customers benefit from
boutique-quality service along with access to products which meet
their unique financial needs from the convenience of online and
mobile banking, robust cash management solutions, and high-yield
liquidity management products to multifamily and commercial real
estate lending. Currently operating in the western United States,
from ten branches in California, one branch in Washington and
lending offices located throughout the market area, Luther Burbank
Savings is an equal housing lender. For additional information,
please visit lutherburbanksavings.com.
Cautionary Statements
Regarding Forward-Looking Information
This communication and the related management
commentary contain, and responses to investor questions may
contain, forward-looking statements. These forward-looking
statements are based on current expectations, estimates and
projections about our industry, management's beliefs and certain
assumptions made by management, many of which, by their nature, are
inherently uncertain and beyond our control and involve a number of
risks and uncertainties. Accordingly, we caution you that any such
forward-looking statement is not a guarantee of future performance
and that actual results may prove to be materially different from
the results expressed or implied by the forward-looking statements
due to a number of factors, including, but not limited to, the
following: interest rate, liquidity, economic, market, credit,
operational, inflation risks associated with our business or
industry, including the speed and predictability of changes in
these risks; our ability to retain deposits and attract new
deposits and loans and the composition and terms of such deposits
and loans; our access to adequate sources of liquidity; business
and economic conditions generally and in the financial services
industry, nationally and within our current and future geographic
markets, including the tight labor market, ineffective management
of the U.S. Federal budget or debt, bank failures or turbulence or
uncertainty in domestic or foreign financial markets; any failure
to adequately manage the transition from LIBOR as a reference rate;
changes in the level of our nonperforming assets and charge-offs;
the adequacy of our allowance for credit losses; our management of
risks inherent in our real estate loan portfolio, including the
seasoning of the portfolio, the level of non-conforming loans, the
number of large borrowers, and the risk of a prolonged downturn in
the real estate market; significant market concentrations in
California and Washington; the occurrence of significant natural or
man-made disasters (including fires, earthquakes and terrorist
acts), severe weather events, health crises and other catastrophic
events; climate change, including any enhanced regulatory,
compliance, credit and reputational risks and costs; political
instability or the effects of war or other conflicts, including,
but not limited to, the current conflicts between Russia and
Ukraine and in the Middle East, as well as civil unrest in Sudan;
the announced merger with WaFd, including delays in the
consummation of the merger or litigation or other conditions that
may cause the parties to abandon the merger or make the merger more
expensive or less beneficial; the impact that the announced merger
may have on our ability to attract and retain customers and key
personnel, the value of our shares, our expenses, and/or our
ability to conduct our business in the ordinary course and execute
on our strategies; the performance of our third-party vendors;
fraud, financial crimes and fund transfer errors; failures,
interruptions, cybersecurity incidents and data breaches involving
the our data, technology and systems and those of our customers and
third-party providers; rapid technological changes in the financial
services industry; any inadequacy in our risk management framework
or use of data and/or models; the laws and regulations applicable
to our business, and the impact of recent and future legislative
and regulatory changes; changing bank regulatory conditions,
policies or programs, whether arising as new legislation or
regulatory initiatives, that could lead to restrictions on
activities of banks generally, or our subsidiary bank in
particular, more restrictive regulatory capital requirements,
increased costs, including deposit insurance premiums, regulation
or prohibition of certain income producing activities or changes in
the secondary market for loans and other products; our involvement
from time to time in legal proceedings and examinations and
remedial actions by regulators; increased competition in the
financial services industry; and changes in our reputation. Other
factors include, without limitation, those listed in our annual
report on Form 10-K for the year ended December 31, 2022,
including under the caption “Risk Factors” in Item 1A of Part I,
subsequent Quarterly Reports on Form 10-Q and other reports or
filings we file or make with the SEC. You should not place undue
reliance on any of these forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is
made, and we do not undertake any obligation to update or review
any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required
by law.
Non-GAAP Financial Measures
This news release and related management
commentary contain financial measures that are not measures
recognized under GAAP, and, therefore, are considered non-GAAP
financial measures, including pre-tax, pre-provision net earnings,
efficiency ratio, liquidity ratio, dependence on wholesale funds,
tangible assets, tangible stockholders’ equity, tangible book value
per share and tangible stockholders’ equity to tangible assets. Our
management uses these non-GAAP financial measures in their analysis
of the Company’s performance, financial condition and the
efficiency of its operations. We believe that these non-GAAP
financial measures provide a greater understanding of ongoing
operations and enhance comparability of results with prior periods
and other companies, as well as demonstrate the effects of
significant changes in the current period. We also believe that
investors find these non-GAAP financial measures useful as they
assist investors in understanding our underlying operating
performance and the analysis of ongoing operating trends. However,
we acknowledge that our non-GAAP financial measures have a number
of limitations. You should not view these disclosures as a
substitute for results determined in accordance with GAAP, and they
are not necessarily comparable to non-GAAP financial measures that
other banking companies use. Other banking companies may use names
similar to those we use for the non-GAAP financial measures we
disclose, but may calculate them differently. You should understand
how we and other companies each calculate non-GAAP financial
measures when making comparisons. Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP measures
are provided in the tables below.
Contact
Bradley SatenbergInvestor Relations(844)
446-8201investorrelations@lbsavings.com
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands) |
September 30,2023
(unaudited) |
|
December 31,2022 |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
579,724 |
|
|
$ |
185,895 |
|
Available for sale debt securities, at fair value |
|
535,924 |
|
|
|
607,348 |
|
Held to maturity debt securities, at amortized cost |
|
3,025 |
|
|
|
3,108 |
|
Equity securities, at fair value |
|
10,018 |
|
|
|
10,340 |
|
Loans |
|
6,827,219 |
|
|
|
7,010,445 |
|
Allowance for credit losses on loans |
|
(39,885 |
) |
|
|
(36,685 |
) |
Total loans, net |
|
6,787,334 |
|
|
|
6,973,760 |
|
FHLB stock |
|
44,370 |
|
|
|
32,694 |
|
Premises and equipment, net |
|
12,884 |
|
|
|
13,661 |
|
Prepaid expenses and other assets |
|
160,634 |
|
|
|
147,826 |
|
Total assets |
$ |
8,133,913 |
|
|
$ |
7,974,632 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Liabilities: |
|
|
|
Deposits |
$ |
5,760,102 |
|
|
$ |
5,839,340 |
|
FHLB advances |
|
1,426,647 |
|
|
|
1,208,147 |
|
Junior subordinated deferrable interest debentures |
|
61,857 |
|
|
|
61,857 |
|
Senior debt |
|
94,877 |
|
|
|
94,785 |
|
Other liabilities |
|
95,425 |
|
|
|
87,967 |
|
Total liabilities |
|
7,438,908 |
|
|
|
7,292,096 |
|
Total stockholders' equity |
|
695,005 |
|
|
|
682,536 |
|
Total liabilities and stockholders' equity |
$ |
8,133,913 |
|
|
$ |
7,974,632 |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)
|
Three Months Ended |
|
Nine Months Ended |
(Dollars in thousands except per share data) |
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Interest and fee income: |
|
|
|
|
|
|
|
|
|
Loans |
$ |
75,116 |
|
$ |
76,014 |
|
$ |
62,366 |
|
$ |
225,734 |
|
$ |
172,911 |
Investment securities |
|
5,711 |
|
|
5,613 |
|
|
4,127 |
|
|
16,812 |
|
|
9,290 |
Cash and cash equivalents |
|
8,243 |
|
|
8,623 |
|
|
547 |
|
|
20,169 |
|
|
812 |
Total interest income |
|
89,070 |
|
|
90,250 |
|
|
67,040 |
|
|
262,715 |
|
|
183,013 |
Interest expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
55,099 |
|
|
47,717 |
|
|
14,085 |
|
|
140,423 |
|
|
27,018 |
FHLB advances |
|
11,722 |
|
|
13,630 |
|
|
5,346 |
|
|
34,614 |
|
|
12,071 |
Junior subordinated deferrable interest debentures |
|
1,112 |
|
|
1,008 |
|
|
560 |
|
|
3,086 |
|
|
1,220 |
Senior debt |
|
1,574 |
|
|
1,575 |
|
|
1,575 |
|
|
4,723 |
|
|
4,724 |
Total interest expense |
|
69,507 |
|
|
63,930 |
|
|
21,566 |
|
|
182,846 |
|
|
45,033 |
Net interest income before provision for credit losses |
|
19,563 |
|
|
26,320 |
|
|
45,474 |
|
|
79,869 |
|
|
137,980 |
Provision for credit losses |
|
3,001 |
|
|
1,212 |
|
|
500 |
|
|
3,418 |
|
|
500 |
Net interest income after provision for credit losses |
|
16,562 |
|
|
25,108 |
|
|
44,974 |
|
|
76,451 |
|
|
137,480 |
Noninterest income |
|
1,032 |
|
|
891 |
|
|
269 |
|
|
3,158 |
|
|
689 |
Noninterest expense |
|
15,035 |
|
|
16,104 |
|
|
15,376 |
|
|
48,073 |
|
|
44,213 |
Income before provision for income taxes |
|
2,559 |
|
|
9,895 |
|
|
29,867 |
|
|
31,536 |
|
|
93,956 |
Provision for income taxes |
|
652 |
|
|
2,978 |
|
|
8,865 |
|
|
9,270 |
|
|
27,447 |
Net income |
$ |
1,907 |
|
$ |
6,917 |
|
$ |
21,002 |
|
$ |
22,266 |
|
$ |
66,509 |
Basic earnings per common share |
$ |
0.04 |
|
$ |
0.14 |
|
$ |
0.41 |
|
$ |
0.44 |
|
$ |
1.31 |
Diluted earnings per common share |
$ |
0.04 |
|
$ |
0.14 |
|
$ |
0.41 |
|
$ |
0.44 |
|
$ |
1.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
As of or For the Three Months Ended |
|
For the Nine Months Ended |
(Dollars in thousands except per share data) |
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
Return on average: |
|
|
|
|
|
|
|
|
|
Assets |
|
0.09 |
% |
|
|
0.33 |
% |
|
|
1.10 |
% |
|
0.36 |
% |
|
1.20 |
% |
Stockholders' equity |
|
1.09 |
% |
|
|
3.94 |
% |
|
|
12.33 |
% |
|
4.25 |
% |
|
13.11 |
% |
Efficiency ratio (1) |
|
73.00 |
% |
|
|
59.18 |
% |
|
|
33.61 |
% |
|
57.90 |
% |
|
31.88 |
% |
Noninterest expense to average assets |
|
0.73 |
% |
|
|
0.76 |
% |
|
|
0.80 |
% |
|
0.78 |
% |
|
0.80 |
% |
Loan to deposit ratio |
|
118.53 |
% |
|
|
118.50 |
% |
|
|
118.29 |
% |
|
118.53 |
% |
|
118.29 |
% |
Average stockholders' equity to average assets |
|
8.55 |
% |
|
|
8.33 |
% |
|
|
8.90 |
% |
|
8.49 |
% |
|
9.14 |
% |
Dividend payout ratio |
|
— |
% |
|
|
— |
% |
|
|
29.23 |
% |
|
— |
% |
|
27.80 |
% |
YIELDS/RATES |
|
|
|
|
|
|
|
|
|
Yield on loans |
|
4.37 |
% |
|
|
4.35 |
% |
|
|
3.70 |
% |
|
4.33 |
% |
|
3.54 |
% |
Yield on investments |
|
4.01 |
% |
|
|
3.77 |
% |
|
|
2.43 |
% |
|
3.78 |
% |
|
1.88 |
% |
Yield on interest earning assets |
|
4.42 |
% |
|
|
4.36 |
% |
|
|
3.56 |
% |
|
4.34 |
% |
|
3.35 |
% |
Cost of interest bearing deposits |
|
3.77 |
% |
|
|
3.30 |
% |
|
|
1.00 |
% |
|
3.24 |
% |
|
0.66 |
% |
Cost of borrowings |
|
3.55 |
% |
|
|
3.62 |
% |
|
|
2.42 |
% |
|
3.48 |
% |
|
2.28 |
% |
Cost of interest bearing liabilities |
|
3.72 |
% |
|
|
3.38 |
% |
|
|
1.26 |
% |
|
3.29 |
% |
|
0.92 |
% |
Net interest spread |
|
0.70 |
% |
|
|
0.98 |
% |
|
|
2.30 |
% |
|
1.05 |
% |
|
2.43 |
% |
Net interest margin |
|
0.97 |
% |
|
|
1.27 |
% |
|
|
2.42 |
% |
|
1.32 |
% |
|
2.52 |
% |
CAPITAL |
|
|
|
|
|
|
|
|
|
Total equity to total assets |
|
8.54 |
% |
|
|
8.37 |
% |
|
|
8.54 |
% |
|
|
|
|
Tangible stockholders' equity to tangible assets
(1) |
|
8.51 |
% |
|
|
8.33 |
% |
|
|
8.50 |
% |
|
|
|
|
Book value per share |
$ |
13.62 |
|
|
$ |
13.71 |
|
|
$ |
13.25 |
|
|
|
|
|
Tangible book value per share (1) |
$ |
13.56 |
|
|
$ |
13.64 |
|
|
$ |
13.18 |
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
Net charge-offs |
$ |
463 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
Net charge-off ratio |
|
0.03 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
|
|
Nonperforming loans to total loans |
|
0.10 |
% |
|
|
0.07 |
% |
|
|
0.06 |
% |
|
|
|
|
Nonperforming assets to total assets |
|
0.08 |
% |
|
|
0.06 |
% |
|
|
0.05 |
% |
|
|
|
|
Allowance for credit losses on loans to loans
held-for-investment |
|
0.58 |
% |
|
|
0.54 |
% |
|
|
0.53 |
% |
|
|
|
|
Allowance for credit losses on loans to nonperforming loans |
|
601.95 |
% |
|
|
751.04 |
% |
|
|
940.86 |
% |
|
|
|
|
Criticized loans |
$ |
31,153 |
|
|
$ |
21,269 |
|
|
$ |
24,120 |
|
|
|
|
|
Classified loans |
$ |
19,828 |
|
|
$ |
18,266 |
|
|
$ |
20,689 |
|
|
|
|
|
LOAN COMPOSITION |
|
|
|
|
|
|
|
|
|
Multifamily residential |
$ |
4,349,645 |
|
|
$ |
4,428,226 |
|
|
$ |
4,495,363 |
|
|
|
|
|
Single family residential |
$ |
2,303,280 |
|
|
$ |
2,308,912 |
|
|
$ |
2,159,384 |
|
|
|
|
|
Commercial real estate |
$ |
153,986 |
|
|
$ |
161,588 |
|
|
$ |
181,971 |
|
|
|
|
|
Construction and land |
$ |
20,308 |
|
|
$ |
22,268 |
|
|
$ |
17,737 |
|
|
|
|
|
DEPOSIT COMPOSITION |
|
|
|
|
|
|
|
|
|
Noninterest bearing transaction accounts |
$ |
70,111 |
|
|
$ |
72,347 |
|
|
$ |
148,658 |
|
|
|
|
|
Interest bearing transaction accounts |
$ |
122,919 |
|
|
$ |
127,638 |
|
|
$ |
169,019 |
|
|
|
|
|
Money market deposit accounts |
$ |
1,919,250 |
|
|
$ |
1,894,183 |
|
|
$ |
2,862,302 |
|
|
|
|
|
Time deposits |
$ |
3,647,822 |
|
|
$ |
3,746,271 |
|
|
$ |
2,614,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See "Non-GAAP Reconciliation" table |
|
NON-GAAP RECONCILIATION (UNAUDITED)
|
For the Three Months Ended |
|
For the Nine Months Ended |
(Dollars in thousands) |
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Pre-tax, Pre-provision Net Earnings |
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
$ |
2,559 |
|
|
$ |
9,895 |
|
|
$ |
29,867 |
|
|
$ |
31,536 |
|
|
$ |
93,956 |
|
Plus: Provision for credit losses |
|
3,001 |
|
|
|
1,212 |
|
|
|
500 |
|
|
|
3,418 |
|
|
|
500 |
|
Pre-tax, pre-provision net earnings |
$ |
5,560 |
|
|
$ |
11,107 |
|
|
$ |
30,367 |
|
|
$ |
34,954 |
|
|
$ |
94,456 |
|
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
Noninterest expense (numerator) |
$ |
15,035 |
|
|
$ |
16,104 |
|
|
$ |
15,376 |
|
|
$ |
48,073 |
|
|
$ |
44,213 |
|
Net interest income |
|
19,563 |
|
|
|
26,320 |
|
|
|
45,474 |
|
|
|
79,869 |
|
|
|
137,980 |
|
Noninterest income |
|
1,032 |
|
|
|
891 |
|
|
|
269 |
|
|
|
3,158 |
|
|
|
689 |
|
Operating revenue (denominator) |
$ |
20,595 |
|
|
$ |
27,211 |
|
|
$ |
45,743 |
|
|
$ |
83,027 |
|
|
$ |
138,669 |
|
Efficiency ratio |
|
73.00 |
% |
|
|
59.18 |
% |
|
|
33.61 |
% |
|
|
57.90 |
% |
|
|
31.88 |
% |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands except per share data) |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
Tangible Book Value Per Share |
|
|
|
|
|
Total assets |
$ |
8,133,913 |
|
|
$ |
8,360,070 |
|
|
$ |
7,921,584 |
|
Less: Goodwill |
|
(3,297 |
) |
|
|
(3,297 |
) |
|
|
(3,297 |
) |
Tangible assets |
|
8,130,616 |
|
|
|
8,356,773 |
|
|
|
7,918,287 |
|
Less: Total liabilities |
|
(7,438,908 |
) |
|
|
(7,660,723 |
) |
|
|
(7,244,915 |
) |
Tangible stockholders' equity (numerator) |
$ |
691,708 |
|
|
$ |
696,050 |
|
|
$ |
673,372 |
|
Period end shares outstanding (denominator) |
|
51,027,878 |
|
|
|
51,027,878 |
|
|
|
51,074,605 |
|
Tangible book value per share |
$ |
13.56 |
|
|
$ |
13.64 |
|
|
$ |
13.18 |
|
Tangible Stockholders' Equity to Tangible
Assets |
|
|
|
|
|
Tangible stockholders' equity (numerator) |
$ |
691,708 |
|
|
$ |
696,050 |
|
|
$ |
673,372 |
|
Tangible assets (denominator) |
$ |
8,130,616 |
|
|
$ |
8,356,773 |
|
|
$ |
7,918,287 |
|
Tangible stockholders' equity to tangible assets |
|
8.51 |
% |
|
|
8.33 |
% |
|
|
8.50 |
% |
Liquidity Ratio |
|
|
|
|
|
Unrestricted cash & cash equivalents |
$ |
579,724 |
|
|
$ |
699,366 |
|
|
$ |
256,658 |
|
Available for sale debt securities, at fair value |
|
535,924 |
|
|
|
564,274 |
|
|
|
640,473 |
|
Equity securities, at fair value |
|
10,018 |
|
|
|
10,340 |
|
|
|
10,317 |
|
Total liquid assets (numerator) |
$ |
1,125,666 |
|
|
$ |
1,273,980 |
|
|
$ |
907,448 |
|
Total assets (denominator) |
$ |
8,133,913 |
|
|
$ |
8,360,070 |
|
|
$ |
7,921,584 |
|
Liquidity ratio |
|
13.84 |
% |
|
|
15.24 |
% |
|
|
11.46 |
% |
Dependence on Wholesale Funds |
|
|
|
|
|
Brokered deposits |
$ |
441,749 |
|
|
|
|
|
FHLB advances |
|
1,426,647 |
|
|
|
|
|
Junior subordinated deferrable interest debentures |
|
61,857 |
|
|
|
|
|
Senior debt |
|
94,877 |
|
|
|
|
|
Total wholesale funds (numerator) |
$ |
2,025,130 |
|
|
|
|
|
Deposits |
$ |
5,760,102 |
|
|
|
|
|
FHLB advances |
|
1,426,647 |
|
|
|
|
|
Junior subordinated deferrable interest debentures |
|
61,857 |
|
|
|
|
|
Senior debt |
|
94,877 |
|
|
|
|
|
Total fundings (denominator) |
$ |
7,343,483 |
|
|
|
|
|
Dependence on wholesale funds |
|
27.6 |
% |
|
|
|
|
|
|
|
|
|
|
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