The following is a discussion of our financial condition at June 30, 2020 and
December 31, 2019 and our results of operations for the three and six months
ended June 30, 2020 and 2019, and should be read in conjunction with our audited
consolidated financial statements set forth in our Annual Report on Form 10-K
for the year ended December 31, 2019 that was filed with the Securities and
Exchange Commission (the "SEC") on March 11, 2020 (our "Annual Report") and with
the accompanying unaudited notes to consolidated financial statements set forth
in this Quarterly Report on Form 10-Q for the quarterly period ended June 30,
2020 (this "Report"). Because we conduct all of our material business operations
through our bank subsidiary, Luther Burbank Savings, the discussion and analysis
relates to activities primarily conducted by the Bank.
Overview
We are a bank holding company headquartered in Santa Rosa, California, and the
parent company of Luther Burbank Savings, a California-chartered commercial bank
headquartered in Gardena, California with $7.2 billion in assets at June 30,
2020. Our principal business is providing high-value, relationship-based banking
products and services to our customers, which include real estate investors,
professionals, entrepreneurs, depositors and commercial businesses. We generate
most of our revenue from interest on loans and investments. Our primary source
of funding for our loans is retail deposits and we place secondary reliance on
wholesale funding, primarily borrowings from the FHLB and brokered deposits. Our
largest expenses are interest on deposits and borrowings along with salaries and
related employee benefits. Our principal lending products are real estate
secured loans, consisting primarily of multifamily residential properties and
jumbo single family residential properties on the West Coast.
Selected Financial Data
The following table sets forth the Company's selected historical consolidated
financial data for the periods and as of the dates indicated. You should read
this information together with the Company's audited consolidated financial
statements included in our Annual Report and the unaudited consolidated
financial statements and related notes included elsewhere in this Report. The
selected historical consolidated financial data as of and for the three and six
months ended June 30, 2020 and 2019 are derived from our unaudited consolidated
financial statements, which are included elsewhere in this Quarterly Report on
Form 10-Q. The selected historical consolidated financial data as of and for the
three months ended March 31, 2020 are derived from our unaudited consolidated
financial statements in our previously filed Quarterly Report on Form 10-Q. The
Company's historical results for any prior period are not necessarily indicative
of future performance.
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