Company Quick10K Filing
Luther Burbank
Price11.49 EPS1
Shares56 P/E14
MCap647 P/FCF12
Net Debt-168 EBIT171
TEV479 TEV/EBIT3
TTM 2019-09-30, in MM, except price, ratios
10-Q 2021-03-31 Filed 2021-05-07
10-K 2020-12-31 Filed 2021-03-11
10-Q 2020-09-30 Filed 2020-11-06
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-11
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-03-04
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-16
8-K 2020-10-30
8-K 2020-10-27
8-K 2020-10-09
8-K 2020-07-28
8-K 2020-07-10
8-K 2020-05-04
8-K 2020-04-28
8-K 2020-04-10
8-K 2020-03-11
8-K 2020-02-26
8-K 2020-01-28
8-K 2020-01-10
8-K 2019-10-23
8-K 2019-10-03
8-K 2019-07-29
8-K 2019-07-10
8-K 2019-04-29
8-K 2019-04-26
8-K 2019-04-24
8-K 2019-04-10
8-K 2019-01-31
8-K 2019-01-28
8-K 2019-01-10
8-K 2018-12-14
8-K 2018-11-30
8-K 2018-10-25
8-K 2018-10-10
8-K 2018-08-16
8-K 2018-07-26
8-K 2018-07-10
8-K 2018-06-07
8-K 2018-05-24
8-K 2018-04-27
8-K 2018-04-26
8-K 2018-04-05
8-K 2018-03-05
8-K 2018-01-25

LBC 10Q Quarterly Report

Part I.
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II.
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 lbc10qex311_2021q1.htm
EX-31.2 lbc10qex312_2021q1.htm
EX-32.1 lbc10qex321_2021q1.htm
EX-32.2 lbc10qex322_2021q1.htm

Luther Burbank Earnings 2021-03-31

Balance SheetIncome StatementCash Flow

lbc-20210331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-38317
Luther Burbank Corporation
(Exact name of registrant as specified in its charter)
California
(State or other jurisdiction of incorporation or organization)
68-0270948
(I.R.S. employer identification number)
   
520 Third St, Fourth Floor, Santa Rosa, California
 (Address of principal executive offices)
 
95401
(Zip Code)
 

Registrant's telephone number, including area code: (844) 446-8201
Securities Registered Pursuant to Section 12(b) of the Act
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common stock, no par valueLBCThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by checkmark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
o
Accelerated filer
Non-accelerated filer
o
Smaller Reporting Company
Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act): Yes No x

As of April 30, 2021, there were 52,213,697 shares of the registrant’s common stock, no par value, outstanding.



Table of Contents
Table of Contents
Page
PART I - FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II - OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
1

Table of Contents
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
 
This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can find many (but not all) of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” and other similar expressions in this Quarterly Report on Form 10-Q. With respect to any such forward-looking statements, Luther Burbank Corporation (the "Company") claims the protection of the safe harbor provided for in the Private Securities Litigation Reform Act of 1995, as amended. The Company cautions investors that any forward-looking statements presented in this Quarterly Report on Form 10-Q, or those that the Company may make orally or in writing from time to time, are based on the beliefs of, assumptions made by, and information available to, management at the time such statements are first made. Actual outcomes will be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control or ability to predict.  Although the Company believes that management’s beliefs and assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, the Company’s actual future results can be expected to differ from management’s expectations, and those differences may be material and adverse to the Company’s business, results of operations and financial condition. Accordingly, investors should use caution in placing any reliance on forward-looking statements to anticipate future results or trends.

The coronavirus disease 2019 ("COVID-19") pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Further deterioration in general business and economic conditions, including increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. Some of the other risks and uncertainties that may cause the Company’s actual results, performance or achievements to differ materially from those expressed include, but are not limited to, the following: the impact of changes in interest rates; political instability; changes in the monetary policies of the U.S. Government; a decline in economic conditions; deterioration in the value of West Coast real estate, both residential and commercial; an increase in the level of non-performing assets and charge-offs; further increased competition among financial institutions; the Company’s ability to continue to attract deposits and quality loan customers; further government regulation, including regulations regarding capital requirements, and the implementation and costs associated with the same; internal and external fraud and cyber-security threats including the loss of bank or customer funds, loss of system functionality or the theft or loss of data; management’s ability to successfully manage the Company’s operations; and the other risks set forth in the Company’s reports filed with the U.S. Securities and Exchange Commission. For further discussion of these and other factors, see “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q and the Company’s 2020 Annual Report on Form 10-K.

Any forward-looking statements in this Quarterly Report on Form 10-Q and all subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made, and hereby specifically disclaims any intention to do so, unless required by law.


2

Table of Contents
PART I.

Item 1. Financial Statements
LUTHER BURBANK CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar amounts in thousands)
March 31,
2021 (unaudited)
December 31,
2020
ASSETS
Cash, cash equivalents and restricted cash$81,641 $178,861 
Available for sale debt securities, at fair value639,682 593,734 
Held to maturity debt securities, at amortized cost (fair value of $5,991 and $7,870 at March 31, 2021 and December 31, 2020, respectively)
5,684 7,467 
Equity securities, at fair value11,826 12,037 
Loans receivable, net of allowance for loan losses of $43,766 and $46,214 at March 31, 2021 and December 31, 2020, respectively
6,227,590 6,003,602 
Accrued interest receivable19,181 18,795 
Federal Home Loan Bank ("FHLB") stock, at cost25,122 25,122 
Premises and equipment, net17,674 18,226 
Goodwill3,297 3,297 
Prepaid expenses and other assets47,277 44,963 
Total assets$7,078,974 $6,906,104 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $5,391,908 $5,264,329 
FHLB advances840,947 806,747 
Junior subordinated deferrable interest debentures61,857 61,857 
Senior debt
$95,000 face amount, 6.5% interest rate, due September 30, 2024 (less debt issuance costs of $430 and $461 at March 31, 2021 and December 31, 2020, respectively)
94,570 94,539 
Accrued interest payable734 1,388 
Other liabilities and accrued expenses64,989 63,553 
Total liabilities6,455,005 6,292,413 
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized; none issued and outstanding at March 31, 2021 and December 31, 2020, respectively
  
Common stock, no par value; 100,000,000 shares authorized; 52,231,912 and 52,220,266 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively
411,702 414,120 
Retained earnings208,236 192,834 
Accumulated other comprehensive income, net of taxes4,031 6,737 
Total stockholders' equity623,969 613,691 
Total liabilities and stockholders' equity$7,078,974 $6,906,104 
See accompanying notes to unaudited consolidated financial statements

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LUTHER BURBANK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollar amounts in thousands, except per share data)
Three Months Ended March 31,
20212020
Interest and fee income:
Loans$54,058 $60,705 
Investment securities1,982 3,303 
Cash, cash equivalents and restricted cash51 317 
Total interest and fee income56,091 64,325 
Interest expense:
Deposits11,606 24,581 
FHLB advances3,933 5,558 
Junior subordinated deferrable interest debentures258 493 
Senior debt1,575 1,578 
Total interest expense17,372 32,210 
Net interest income before provision for loan losses38,719 32,115 
(Reversal of) provision for loan losses(2,500)5,300 
Net interest income after provision for loan losses41,219 26,815 
Noninterest income:
FHLB dividends367 535 
Other income(58)263 
Total noninterest income309 798 
Noninterest expense:
Compensation and related benefits10,380 11,205 
Deposit insurance premium472 476 
Professional and regulatory fees484 431 
Occupancy1,215 1,140 
Depreciation and amortization655 669 
Data processing973 967 
Marketing292 875 
Other expenses933 1,096 
Total noninterest expense15,404 16,859 
Income before provision for income taxes26,124 10,754 
Provision for income taxes7,713 3,178 
Net income$18,411 $7,576 
Basic earnings per common share$0.35 $0.14 
Diluted earnings per common share$0.35 $0.14 
Dividends per common share$0.06 $0.06 

See accompanying notes to unaudited consolidated financial statements

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LUTHER BURBANK CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(Dollar amounts in thousands)
Three Months Ended March 31,
20212020
Net income$18,411 $7,576 
Other comprehensive (loss) income:
Unrealized (loss) gain on available for sale debt securities:
Unrealized holding (loss) gain arising during the period(3,815)1,051 
Tax effect1,109 (305)
Total other comprehensive (loss) income, net of tax(2,706)746 
Comprehensive income$15,705 $8,322 

See accompanying notes to unaudited consolidated financial statements

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LUTHER BURBANK CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
(Dollar amounts in thousands, except per share data)
Accumulated Other Comprehensive Income (Loss) (Net of Taxes)Total Stockholders' Equity
Common StockRetained EarningsAvailable for Sale Securities
SharesAmount
Balance, December 31, 201955,999,754 $447,784 $165,236 $1,444 $614,464 
Comprehensive income:
Net income— — 7,576 — 7,576 
Other comprehensive income— — — 746 746 
Issuance of restricted stock awards250,118 — — — — 
Settled restricted stock units70,220 — — — — 
Shares withheld to pay taxes on stock based compensation(53,824)(563)— — (563)
Restricted stock forfeitures(17,408)(8)6 — (2)
Stock based compensation expense— 911 — — 911 
Shares repurchased(1,962,395)(16,546)— — (16,546)
Cash dividends ($0.06 per share)
— — (3,246)— (3,246)
Balance, March 31, 202054,286,465 $431,578 $169,572 $2,190 $603,340 
Balance, December 31, 202052,220,266 $414,120 $192,834 $6,737 $613,691 
Comprehensive income:
Net income— — 18,411 — 18,411 
Other comprehensive loss— — — (2,706)(2,706)
Issuance of restricted stock awards283,078 — — — — 
Settled restricted stock units68,873 — — — — 
Shares withheld to pay taxes on stock based compensation(85,825)(901)— — (901)
Restricted stock forfeitures(52,798)(67)13— (54)
Stock based compensation expense— 651 — — 651 
Shares repurchased(201,682)(2,101)— — (2,101)
Cash dividends ($0.06 per share)
— — (3,022)— (3,022)
Balance, March 31, 202152,231,912 $411,702 $208,236 $4,031 $623,969 


See accompanying notes to unaudited consolidated financial statements

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LUTHER BURBANK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollar amounts in thousands)
Three Months Ended March 31,
20212020
Cash flows from operating activities:
Net income$18,411 $7,576 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization655 669 
(Reversal of) provision for loan losses(2,500)5,300 
Amortization of deferred loan costs, net4,626 3,725 
Amortization of premiums on investment securities, net657 487 
Stock based compensation expense, net of forfeitures584 903 
Change in fair value of mortgage servicing rights171 395 
Change in fair value of equity securities211 (188)
Other items, net55 (40)
Effect of changes in:
Accrued interest receivable(386)(9)
Accrued interest payable(654)(266)
Prepaid expenses and other assets1,773 (1,332)
Other liabilities and accrued expenses1,800 (1,423)
Net cash provided by operating activities25,403 15,797 
Cash flows from investing activities:
Proceeds from maturities, paydowns and calls of available for sale debt securities39,735 92,128 
Proceeds from maturities and paydowns of held to maturity debt securities1,741 416 
Purchases of available for sale debt securities(90,113)(107,942)
Net decrease in loans receivable57,275 46,956 
Purchase of loans(286,917)(20,507)
Redemption of FHLB stock, net 730 
Purchase of premises and equipment(112)(957)
Net cash (used in) provided by investing activities(278,391)10,824 
Cash flows from financing activities:
Net increase in deposits127,579 50,659 
Proceeds from long-term FHLB advances 126,500 
Repayment of long-term FHLB advances(100,000)(150,008)
Net change in short-term FHLB advances134,200 (1,500)
Shares withheld for taxes on vested restricted stock(901)(563)
Shares repurchased(2,101)(16,546)
Cash paid for dividends(3,009)(3,240)
Net cash provided by financing activities155,768 5,302 
(Decrease) increase in cash, cash equivalents and restricted cash(97,220)31,923 
Cash, cash equivalents and restricted cash, beginning of period178,861 91,325 
Cash, cash equivalents and restricted cash, end of period$81,641 $123,248 
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest$18,026 $32,476 
Income taxes$8 $410 

See accompanying notes to unaudited consolidated financial statements

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LUTHER BURBANK CORPORATION
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.NATURE OF OPERATIONS

Organization

Luther Burbank Corporation (the ‘‘Company’’), a California corporation headquartered in Santa Rosa, is the bank holding company for its wholly-owned subsidiary, Luther Burbank Savings (the "Bank"), and its wholly-owned subsidiary, Burbank Investor Services. The Company also owns Burbank Financial Inc., a real estate investment company, and all the common interests in Luther Burbank Statutory Trusts I and II, entities created to issue trust preferred securities.

The Bank conducts its business from its headquarters in Gardena, California. It has ten full service branches in California located in Sonoma, Marin, Santa Clara, and Los Angeles Counties and one full service branch in Washington located in King County. Additionally, there are seven loan production offices located throughout California, as well as a loan production office in Clackamas County, Oregon.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all footnotes as would be necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, these interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2020, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (the “SEC”), under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.
 
The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2021.

The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry.

Use of Estimates

Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited consolidated financial statements and the disclosures provided, and actual results could differ.
Earnings Per Share ("EPS")

Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the period. In determining the weighted average number of shares outstanding, vested restricted stock units are included. Diluted EPS represents the amount of earnings for the period available to each share of common
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stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of common shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and units, calculated using the treasury stock method.
(Dollars in thousands, except share amounts)Three Months Ended March 31,
20212020
Net income$18,411 $7,576 
Weighted average basic common shares outstanding51,982,731 55,611,827 
Add: Dilutive effects of assumed vesting of restricted stock115,507 113,271 
Weighted average diluted common shares outstanding52,098,238 55,725,098 
Income per common share:
Basic EPS$0.35 $0.14 
Diluted EPS$0.35 $0.14 
Anti-dilutive shares not included in calculation of diluted earnings per share3,695 17,313 
2.     INVESTMENT SECURITIES
Available for Sale
The following table summarizes the amortized cost and the estimated fair value of available for sale debt securities as of the dates indicated:
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
At March 31, 2021:
Government and Government Sponsored Entities:
Residential mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs")$188,387 $2,062 $(861)$189,588 
Commercial MBS and CMOs402,037 5,570 (1,078)406,529 
Agency bonds13,239 67 (42)13,264 
Other asset backed securities ("ABS")30,340 24 (63)30,301 
Total available for sale debt securities$634,003 $7,723 $(2,044)$639,682 
At December 31, 2020:
Government and Government Sponsored Entities:
Residential MBS and CMOs$213,279 $3,459 $(14)$216,724 
Commercial MBS and CMOs355,963 6,337 (312)361,988 
Agency bonds14,998 69 (45)15,022 
Total available for sale debt securities$584,240 $9,865 $(371)$593,734 
Net unrealized gains on available for sale investment securities are recorded as accumulated other comprehensive income within stockholders’ equity and totaled $4.0 million and $6.7 million, net of $1.6 million and $2.8 million in tax liabilities, at March 31, 2021 and December 31, 2020, respectively. There were no sales or transfers of available for sale investment securities and no realized gains or losses on these securities during the three months ended March 31, 2021 or 2020.

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The following tables summarize the gross unrealized losses and fair value of available for sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
March 31, 2021
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Government and Government Sponsored Entities:
Residential MBS and CMOs$50,339 $(856)$543 $(5)$50,882 $(861)
Commercial MBS and CMOs98,047 (853)22,565 (225)120,612 (1,078)
Agency bonds3,228 (8)7,011 (34)10,239 (42)
Other ABS14,623 (63)  14,623 (63)
Total available for sale debt securities$166,237 $(1,780)$30,119 $(264)$196,356 $(2,044)
At March 31, 2021, the Company held 86 residential MBS and CMOs of which ten were in a loss position and six had been in a loss position for twelve months or more. The Company held 50 commercial MBS and CMOs of which 14 were in a loss position and five had been in a loss position for twelve months or more. The Company held three agency bonds of which two were in a loss position and one had been in a loss position for twelve months or more. The Company held three other ABS of which one was in a loss position and none had been in a loss position for twelve months or more.
December 31, 2020
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Government and Government Sponsored Entities:
Residential MBS and CMOs$14,193 $(12)$4,248 $(2)$18,441 $(14)
Commercial MBS and CMOs33,986 (37)37,194 (275)71,180 (312)
Agency bonds3,331 (8)8,667 (37)11,998 (45)
Total available for sale debt securities$51,510 $(57)$50,109 $(314)$101,619 $(371)
At December 31, 2020, the Company held 86 residential MBS and CMOs of which 11 were in a loss position and six had been in a loss position for twelve months or more. The Company held 46 commercial MBS and CMOs of which ten were in a loss position and six had been in a loss position for twelve months or more. The Company held three agency bonds of which two were in a loss position and one had been in a loss position for twelve months or more.
The unrealized losses on the Company’s investments were caused by interest rate changes. In addition, the contractual cash flows of these investments are guaranteed by the U.S. government or agencies sponsored by the U.S. government. Accordingly, it is expected that the securities will not be settled at a price less than amortized cost. Because the decline in market value is attributable to changes in interest rates but not credit quality, and because the Company has the ability and intent to hold those investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2021 or December 31, 2020.
As of March 31, 2021 and December 31, 2020, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders' equity, other than the U.S. government and its agencies.
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Held to Maturity
The following table summarizes the amortized cost and estimated fair value of held to maturity investment securities as of the dates indicated:
(Dollars in thousands)Amortized CostGross Unrecognized GainsGross Unrecognized LossesEstimated Fair Value
As of March 31, 2021:
Government Sponsored Entities:
Residential MBS$5,610 $307 $ $5,917 
Other investments74   74 
Total held to maturity investment securities$5,684 $307 $ $5,991 
As of December 31, 2020:
Government Sponsored Entities:
Residential MBS$7,391 $403 $ $7,794 
Other investments76   76 
Total held to maturity investment securities$7,467 $403 $ $7,870 
At both March 31, 2021 and December 31, 2020, the Company held seven held to maturity residential MBS of which none were in a loss position.
The following table summarizes the scheduled maturities of available for sale and held to maturity investment securities as of March 31, 2021:
March 31, 2021
(Dollars in thousands)Amortized CostFair Value
Available for sale debt securities
Five to ten years$10,239 $10,196 
Beyond ten years3,000 3,068 
MBS, CMOs and other ABS620,764 626,418 
Total available for sale debt securities$634,003 $639,682 
Held to maturity investments securities
Beyond ten years$74 $74 
MBS5,610 5,917 
Total held to maturity debt securities$5,684 $5,991 
The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. As such, mortgage backed securities, collateralized mortgage obligations and other asset backed securities are not included in the maturity categories above and instead are shown separately. No securities were pledged as of March 31, 2021 or December 31, 2020.

Equity Securities

Equity securities consist of investments in a qualified community reinvestment fund. At March 31, 2021 and December 31, 2020, the fair value of equity securities totaled $11.8 million and $12.0 million, respectively. Changes in fair value are recognized in other noninterest income. During the three months ended March 31, 2021, the fair value of these investments decreased $211 thousand compared to an increase in fair value of $188 thousand during the three months ended March 31, 2020. There were no sales of equity securities during the three months ended March 31, 2021 or 2020.
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3.     LOANS
Loans consist of the following:
(Dollars in thousands)March 31,
2021
December 31,
2020
Permanent mortgages on:
Multifamily residential$4,109,991 $4,100,831 
Single family residential1,939,411 1,723,953 
Commercial real estate199,497 202,871 
Construction and land loans22,357 22,061 
Non-Mortgage (‘‘NM’’) loans100 100 
Total6,271,356 6,049,816 
Allowance for loan losses(43,766)(46,214)
Loans held for investment, net$6,227,590 $6,003,602 

Certain loans have been pledged to secure borrowing arrangements (see Note 7).
During the three months ended March 31, 2021, the Company purchased a pool of performing, fixed rate single family residential loans. The pool had an aggregate principal balance of $287.8 million and contained loans with a weighted average interest rate and maturity of 2.31% and 26.4 years, respectively.
The following table summarizes activity in and the allocation of the allowance for loan losses by portfolio segment:
(Dollars in thousands)Multifamily ResidentialSingle Family ResidentialCommercial Real EstateLand, Construction and NMTotal
Three months ended March 31, 2021
Allowance for loan losses:
Beginning balance allocated to portfolio segments$33,259 $9,372 $3,347 $236 $46,214 
(Reversal of) provision for loan losses(2,421)442 (476)(45)(2,500)
Charge-offs     
Recoveries 2  50 52 
Ending balance allocated to portfolio segments$30,838 $9,816 $2,871 $241 $43,766 
Three months ended March 31, 2020
Allowance for loan losses:
Beginning balance allocated to portfolio segments$23,372 $10,076 $2,341 $212 $36,001 
Provision for (reversal of) loan losses3,936 1,069 336 (41)5,300 
Charge-offs (722)  (722)
Recoveries 3  75