falsedesktopLBC2020-09-30000147534820000052{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "\t\tPage\n\tPART I - FINANCIAL INFORMATION\t\nItem 1.\tFinancial Statements\t3\n\tConsolidated Statements of Financial Condition\t3\n\tUnaudited Consolidated Statements of Income\t4\n\tUnaudited Consolidated Statements of Comprehensive Income\t5\n\tUnaudited Consolidated Statements of Changes in Stockholders' Equity\t6\n\tUnaudited Consolidated Statements of Cash Flows\t8\n\tNotes to Unaudited Consolidated Financial Statements\t8\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t34\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t63\nItem 4.\tControls and Procedures\t66\n\tPART II - OTHER INFORMATION\t\nItem 1.\tLegal Proceedings\t67\nItem 1A.\tRisk Factors\t67\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t70\nItem 3.\tDefaults Upon Senior Securities\t70\nItem 4.\tMine Safety Disclosures\t70\nItem 5.\tOther Information\t70\nItem 6.\tExhibits\t71\n\tSignatures\t72\n", "q10k_tbl_1": "\tSeptember 30 2020 (unaudited)\tDecember 31 2019\nASSETS\t\t\nCash cash equivalents and restricted cash\t214066\t91325\nAvailable for sale debt securities at fair value\t623499\t625074\nHeld to maturity debt securities at amortized cost (fair value of $8393 and $10349 at September 30 2020 and December 31 2019 respectively)\t7990\t10170\nEquity securities at fair value\t12070\t11782\nLoans receivable net of allowance for loan losses of $46063 and $36001 at September 30 2020 and December 31 2019 respectively\t6102438\t6194976\nAccrued interest receivable\t19894\t20814\nFederal Home Loan Bank (\"FHLB\") stock at cost\t29612\t30342\nPremises and equipment net\t18750\t19504\nGoodwill\t3297\t3297\nPrepaid expenses and other assets\t40047\t38544\nTotal assets\t7071663\t7045828\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nLiabilities:\t\t\nDeposits\t5276680\t5234717\nFHLB advances\t961747\t978702\nJunior subordinated deferrable interest debentures\t61857\t61857\nSenior debt\t\t\n95000 face amount 6.5% interest rate due September 30 2024 (less debt issuance costs of $491 and $584 at September 30 2020 and December 31 2019 respectively)\t94509\t94416\nAccrued interest payable\t1254\t2901\nOther liabilities and accrued expenses\t66783\t58771\nTotal liabilities\t6462830\t6431364\nCommitments and contingencies (Note 16)\t\t\nStockholders' equity:\t\t\nPreferred stock no par value; 5000000 shares authorized; none issued and outstanding at September 30 2020 and December 31 2019 respectively\t0\t0\nCommon stock no par value; 100000000 shares authorized; 52410053 and 55999754 shares issued and outstanding at September 30 2020 and December 31 2019 respectively\t415115\t447784\nRetained earnings\t187147\t165236\nAccumulated other comprehensive income net of taxes\t6571\t1444\nTotal stockholders' equity\t608833\t614464\nTotal liabilities and stockholders' equity\t7071663\t7045828\n", "q10k_tbl_2": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nInterest and fee income:\t\t\t\t\nLoans\t56766\t64010\t175661\t186078\nInvestment securities\t2167\t3900\t7787\t11943\nCash cash equivalents and restricted cash\t83\t766\t454\t1688\nTotal interest and fee income\t59016\t68676\t183902\t199709\nInterest expense:\t\t\t\t\nDeposits\t15744\t27927\t60146\t78686\nFHLB advances\t5307\t5983\t16550\t19165\nJunior subordinated deferrable interest debentures\t279\t604\t1104\t1888\nSenior debt\t1574\t1577\t4727\t4725\nTotal interest expense\t22904\t36091\t82527\t104464\nNet interest income before provision for (reversal of) loan losses\t36112\t32585\t101375\t95245\nProvision for (reversal of) loan losses\t0\t(500)\t10550\t250\nNet interest income after provision for (reversal of) loan losses\t36112\t33085\t90825\t94995\nNoninterest income:\t\t\t\t\nGain on sale of loans\t0\t77\t0\t607\nFHLB dividends\t368\t557\t1277\t1604\nOther income\t219\t359\t779\t1650\nTotal noninterest income\t587\t993\t2056\t3861\nNoninterest expense:\t\t\t\t\nCompensation and related benefits\t11408\t9191\t32913\t27857\nDeposit insurance premium\t482\t0\t1429\t985\nProfessional and regulatory fees\t431\t521\t1316\t1419\nOccupancy\t1156\t1425\t3397\t4214\nDepreciation and amortization\t673\t672\t2029\t2001\nData processing\t999\t945\t3004\t2809\nMarketing\t306\t1217\t1511\t3442\nOther expenses\t919\t2098\t2982\t4300\nTotal noninterest expense\t16374\t16069\t48581\t47027\nIncome before provision for income taxes\t20325\t18009\t44300\t51829\nProvision for income taxes\t6008\t5273\t13089\t15425\nNet income\t14317\t12736\t31211\t36404\nBasic earnings per common share\t0.28\t0.23\t0.58\t0.65\nDiluted earnings per common share\t0.27\t0.23\t0.58\t0.65\nDividends per common share\t0.06\t0.06\t0.17\t0.17\n", "q10k_tbl_3": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet income\t14317\t12736\t31211\t36404\nOther comprehensive income:\t\t\t\t\nUnrealized gain on available for sale debt securities:\t\t\t\t\nUnrealized holding (loss) gain arising during the period\t(1)\t1183\t7222\t9156\nTax effect\t6\t(344)\t(2095)\t(2653)\nNet of tax\t5\t839\t5127\t6503\nUnrealized gain on cash flow hedge:\t\t\t\t\nUnrealized holding gain arising during the period\t0\t0\t0\t147\nTax effect\t0\t0\t0\t(43)\nNet of tax\t0\t0\t0\t104\nTotal other comprehensive income\t5\t839\t5127\t6607\nComprehensive income\t14322\t13575\t36338\t43011\n", "q10k_tbl_4": "\t\t\t\tAccumulated Other Comprehensive Income (Net of Taxes)\tTotal Stockholders' Equity\n\tCommon Stock\t\tRetained Earnings\tAvailable for Sale Securities\t\n\tShares\tAmount\t\t\nBalance June 30 2019\t55982491\t449825\t146514\t1128\t\t597467\t\t\nComprehensive income:\t\t\t\t\t\t\t\t\nNet income\t0\t0\t12736\t0\t\t12736\t\t\nOther comprehensive income\t0\t0\t0\t839\t\t839\t\t\nSettled restricted stock units\t377728\t0\t0\t0\t\t0\t\t\nShares withheld to pay taxes on stock based compensation\t(178403)\t(1972)\t0\t0\t\t(1972)\t\t\nRestricted stock forfeitures\t(36045)\t(89)\t8\t0\t\t(81)\t\t\nStock based compensation expense\t0\t786\t0\t0\t\t786\t\t\nShares repurchased\t(111000)\t(1161)\t0\t0\t\t(1161)\t\t\nCash dividends ($0.06 per share)\t0\t0\t(3242)\t0\t\t(3242)\t\t\nBalance September 30 2019\t56034771\t447389\t156016\t1967\t\t605372\t\t\nBalance June 30 2020\t52382895\t414264\t175852\t6566\t\t596682\t\t\nComprehensive income:\t\t\t\t\t\t\t\t\nNet income\t0\t0\t14317\t0\t\t14317\t\t\nOther comprehensive income\t0\t0\t0\t5\t\t5\t\t\nIssuance of restricted stock awards\t11604\t0\t0\t0\t\t0\t\t\nSettled restricted stock units\t24188\t0\t0\t0\t\t0\t\t\nShares withheld to pay taxes on stock based compensation\t(7797)\t(75)\t0\t0\t\t(75)\t\t\nRestricted stock forfeitures\t(837)\t(5)\t0\t0\t\t(5)\t\t\nStock based compensation expense\t0\t931\t0\t0\t\t931\t\t\nCash dividends ($0.06 per share)\t0\t0\t(3022)\t0\t\t(3022)\t\t\nBalance September 30 2020\t52410053\t415115\t187147\t6571\t\t608833\t\t\n", "q10k_tbl_5": "\t\t\t\tAccumulated Other Comprehensive (Loss) Income (Net of Taxes)\t\tTotal Stockholders' Equity\n\tCommon Stock\t\tRetained Earnings\tAvailable for Sale Securities\tCash Flow Hedge\n\tShares\tAmount\t\t\nBalance December 31 2018\t56379066\t456378\t129806\t(4935)\t(104)\t581145\nCumulative effect of change in accounting principal (1)\t0\t0\t(399)\t399\t0\t0\nComprehensive income:\t\t\t\t\t\t\nNet income\t0\t0\t36404\t0\t0\t36404\nOther comprehensive income\t0\t0\t0\t6503\t104\t6607\nIssuance of restricted stock awards\t321784\t0\t0\t0\t0\t0\nSettled restricted stock units\t499707\t0\t0\t0\t0\t0\nShares withheld to pay taxes on stock based compensation\t(223044)\t(2409)\t0\t0\t0\t(2409)\nRestricted stock forfeitures\t(72041)\t(220)\t18\t0\t0\t(202)\nStock based compensation expense\t0\t2431\t0\t0\t0\t2431\nShares repurchased\t(870701)\t(8791)\t0\t0\t0\t(8791)\nCash dividends ($0.17 per share)\t0\t0\t(9813)\t0\t0\t(9813)\nBalance September 30 2019\t56034771\t447389\t156016\t1967\t0\t605372\nBalance December 31 2019\t55999754\t447784\t165236\t1444\t0\t614464\nComprehensive income:\t\t\t\t\t\t\nNet income\t0\t0\t31211\t0\t0\t31211\nOther comprehensive income\t0\t0\t0\t5127\t0\t5127\nIssuance of restricted stock awards\t261722\t0\t0\t0\t0\t0\nSettled restricted stock units\t94408\t0\t0\t0\t0\t0\nShares withheld to pay taxes on stock based compensation\t(64361)\t(666)\t0\t0\t0\t(666)\nRestricted stock forfeitures\t(29661)\t(31)\t8\t0\t0\t(23)\nStock based compensation expense\t0\t2742\t0\t0\t0\t2742\nShares repurchased\t(3851809)\t(34714)\t0\t0\t0\t(34714)\nCash dividends ($0.17 per share)\t0\t0\t(9308)\t0\t0\t(9308)\nBalance September 30 2020\t52410053\t415115\t187147\t6571\t0\t608833\n", "q10k_tbl_6": "\tNine Months Ended September 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income\t31211\t36404\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nDepreciation and amortization\t2029\t2001\nProvision for loan losses\t10550\t250\nAmortization of deferred loan costs net\t11785\t10386\nAmortization of premiums on investment securities net\t2447\t1039\nGain on sale of loans\t0\t(607)\nStock based compensation expense net of forfeitures\t2711\t2211\nChange in fair value of mortgage servicing rights\t807\t652\nChange in fair value of equity securities\t(288)\t(399)\nLoss on disposition of leasehold improvements\t0\t1120\nOther items net\t331\t(383)\nEffect of changes in:\t\t\nAccrued interest receivable\t920\t(1338)\nAccrued interest payable\t(1647)\t(969)\nPrepaid expenses and other assets\t(4134)\t(2040)\nOther liabilities and accrued expenses\t(3780)\t5770\nNet cash provided by operating activities\t52942\t54097\nCash flows from investing activities:\t\t\nProceeds from maturities paydowns and calls of available for sale debt securities\t188270\t55523\nProceeds from maturities and paydowns of held to maturity debt securities\t2096\t1216\nProceeds from sales of available for sale debt securities\t0\t1000\nPurchases of available for sale debt securities\t(181837)\t(71694)\nNet decrease (increase) in loans receivable\t101994\t(190602)\nProceeds from loans held for sale previously classified as portfolio loans\t0\t62235\nPurchase of loans\t(20507)\t(10052)\nRedemption of FHLB stock net\t730\t1480\nPurchase of premises and equipment\t(1275)\t(663)\nNet cash provided by (used in) investing activities\t89471\t(151557)\nCash flows from financing activities:\t\t\nNet increase in deposits\t41963\t360962\nProceeds from long-term FHLB advances\t136500\t375100\nRepayment of long-term FHLB advances\t(151955)\t(375022)\nNet change in short-term FHLB advances\t(1500)\t(166000)\nShares withheld for taxes on vested restricted stock\t(666)\t(2409)\nShares repurchased\t(34714)\t(8791)\nCash paid for dividends\t(9300)\t(9795)\nNet cash (used in) provided by financing activities\t(19672)\t174045\nIncrease in cash cash equivalents and restricted cash\t122741\t76585\nCash cash equivalents and restricted cash beginning of period\t91325\t91697\nCash cash equivalents and restricted cash end of period\t214066\t168282\nSupplemental disclosure of cash flow information:\t\t\nCash paid during the period for:\t\t\nInterest\t84174\t105433\nIncome taxes\t15069\t14125\nNon-cash investing activity:\t\t\nLoans transferred to held for sale\t0\t61751\n", "q10k_tbl_7": "(Dollars in thousands except share amounts)\t\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n\t2020\t\t2019\t\t2020\t\t2019\nNet income\t\t14317\t\t12736\t\t31211\t\t36404\nWeighted average basic common shares outstanding\t\t52001097\t\t55654429\t\t53359460\t\t56094285\nAdd: Dilutive effects of assumed vesting of restricted stock\t\t156106\t\t273104\t\t118309\t\t219587\nWeighted average diluted common shares outstanding\t\t52157203\t\t55927533\t\t53477769\t\t56313872\nIncome per common share:\t\t\t\t\t\t\t\t\nBasic EPS\t\t0.28\t\t0.23\t\t0.58\t\t0.65\nDiluted EPS\t\t0.27\t\t0.23\t\t0.58\t\t0.65\nAnti-dilutive shares not included in calculation of diluted earnings per share\t\t26\t\t4398\t\t17623\t\t4381\n", "q10k_tbl_8": "(Dollars in thousands)\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tEstimated Fair Value\nAt September 30 2020:\t\t\t\t\nGovernment and Government Sponsored Entities:\t\t\t\t\nResidential mortgage backed securities ('MBS\") and collateralized mortgage obligations (\"CMOs\")\t231925\t3977\t(62)\t235840\nCommercial MBS and CMOs\t366948\t6224\t(893)\t372279\nAgency bonds\t15367\t58\t(45)\t15380\nTotal available for sale debt securities\t614240\t10259\t(1000)\t623499\nAt December 31 2019:\t\t\t\t\nGovernment and Government Sponsored Entities:\t\t\t\t\nResidential MBS and CMOs\t145333\t340\t(481)\t145192\nCommercial MBS and CMOs\t353727\t3267\t(825)\t356169\nAgency bonds\t123977\t59\t(323)\t123713\nTotal available for sale debt securities\t623037\t3666\t(1629)\t625074\n", "q10k_tbl_9": "\tSeptember 30 2020\t\t\t\t\t\n\tLess than 12 Months\t\t12 Months or More\t\tTotal\t\n(Dollars in thousands)\tFair Value\tUnrealized Losses\tFair Value\tUnrealized Losses\tFair Value\tUnrealized Losses\nGovernment and Government Sponsored Entities:\t\t\t\t\t\t\nResidential MBS and CMOs\t15931\t(59)\t4620\t(3)\t20551\t(62)\nCommercial MBS and CMOs\t122166\t(428)\t59258\t(465)\t181424\t(893)\nAgency bonds\t12323\t(45)\t0\t0\t12323\t(45)\nTotal available for sale debt securities\t150420\t(532)\t63878\t(468)\t214298\t(1000)\n", "q10k_tbl_10": "\tDecember 31 2019\t\t\t\t\t\n\tLess than 12 Months\t\t12 Months or More\t\tTotal\t\n(Dollars in thousands)\tFair Value\tUnrealized Losses\tFair Value\tUnrealized Losses\tFair Value\tUnrealized Losses\nGovernment and Government Sponsored Entities:\t\t\t\t\t\t\nResidential MBS and CMOs\t43623\t(181)\t54870\t(300)\t98493\t(481)\nCommercial MBS and CMOs\t95950\t(339)\t57219\t(486)\t153169\t(825)\nAgency bonds\t29471\t(86)\t87405\t(237)\t116876\t(323)\nTotal available for sale debt securities\t169044\t(606)\t199494\t(1023)\t368538\t(1629)\n", "q10k_tbl_11": "(Dollars in thousands)\tAmortized Cost\tGross Unrecognized Gains\tGross Unrecognized Losses\tEstimated Fair Value\nAs of September 30 2020:\t\t\t\t\nGovernment Sponsored Entities:\t\t\t\t\nResidential MBS\t7912\t403\t0\t8315\nOther investments\t78\t0\t0\t78\nTotal held to maturity investment securities\t7990\t403\t0\t8393\nAs of December 31 2019:\t\t\t\t\nGovernment Sponsored Entities:\t\t\t\t\nResidential MBS\t10087\t205\t(26)\t10266\nOther investments\t83\t0\t0\t83\nTotal held to maturity investment securities\t10170\t205\t(26)\t10349\n", "q10k_tbl_12": "\tLess than 12 Months\t\t12 Months or More\t\tTotal\t\n(Dollars in thousands)\tFair Value\tUnrecognized Losses\tFair Value\tUnrecognized Losses\tFair Value\tUnrecognized Losses\nAs of December 31 2019:\t\t\t\t\t\t\nGovernment Sponsored Entities:\t\t\t\t\t\t\nResidential MBS\t0\t0\t2253\t(26)\t2253\t(26)\n", "q10k_tbl_13": "\tSeptember 30 2020\t\n(Dollars in thousands)\tAmortized Cost\tFair Value\nAvailable for sale debt securities\t\t\nFive to ten years\t3491\t3483\nBeyond ten years\t11876\t11897\nMBS and CMOs\t598873\t608119\nTotal available for sale debt securities\t614240\t623499\nHeld to maturity investments securities\t\t\nBeyond ten years\t78\t78\nMBS\t7912\t8315\nTotal held to maturity debt securities\t7990\t8393\n", "q10k_tbl_14": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nPermanent mortgages on:\t\t\nMultifamily residential\t4086059\t3985981\nSingle family residential\t1839156\t2021320\nCommercial real estate\t203920\t203134\nConstruction and land loans\t19266\t20442\nNon-Mortgage (‘‘NM'') loans\t100\t100\nTotal\t6148501\t6230977\nAllowance for loan losses\t(46063)\t(36001)\nLoans held for investment net\t6102438\t6194976\n", "q10k_tbl_15": "(Dollars in thousands)\tMultifamily Residential\tSingle Family Residential\tCommercial Real Estate\tLand Construction and NM\tTotal\nThree months ended September 30 2020\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\nBeginning balance allocated to portfolio segments\t30837\t11628\t3305\t215\t45985\nProvision for (reversal of) loan losses\t836\t(1014)\t247\t(69)\t0\nCharge-offs\t0\t0\t0\t0\t0\nRecoveries\t0\t3\t0\t75\t78\nEnding balance allocated to portfolio segments\t31673\t10617\t3552\t221\t46063\nThree months ended September 30 2019\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\nBeginning balance allocated to portfolio segments\t22745\t9439\t2412\t625\t35221\nProvision for (reversal of) loan losses\t408\t(415)\t115\t(608)\t(500)\nCharge-offs\t0\t0\t0\t0\t0\nRecoveries\t0\t2\t0\t200\t202\nEnding balance allocated to portfolio segments\t23153\t9026\t2527\t217\t34923\nNine months ended September 30 2020\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\nBeginning balance allocated to portfolio segments\t23372\t10076\t2341\t212\t36001\nProvision for (reversal of) loan losses\t8301\t1254\t1211\t(216)\t10550\nCharge-offs\t0\t(722)\t0\t0\t(722)\nRecoveries\t0\t9\t0\t225\t234\nEnding balance allocated to portfolio segments\t31673\t10617\t3552\t221\t46063\nNine months ended September 30 2019\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\nBeginning balance allocated to portfolio segments\t21326\t10125\t2441\t422\t34314\nProvision for (reversal of) loan losses\t1827\t(1108)\t86\t(555)\t250\nCharge-offs\t0\t0\t0\t0\t0\nRecoveries\t0\t9\t0\t350\t359\nEnding balance allocated to portfolio segments\t23153\t9026\t2527\t217\t34923\n", "q10k_tbl_16": "(Dollars in thousands)\tMultifamily Residential\tSingle Family Residential\tCommercial Real Estate\tLand Construction and NM\tTotal\nAs of September 30 2020:\t\t\t\t\t\nEnding allowance balance allocated to:\t\t\t\t\t\nLoans individually evaluated for impairment\t0\t25\t0\t0\t25\nLoans collectively evaluated for impairment\t31673\t10592\t3552\t221\t46038\nEnding balance\t31673\t10617\t3552\t221\t46063\nLoans:\t\t\t\t\t\nEnding balance: individually evaluated for impairment\t528\t5575\t0\t0\t6103\nEnding balance: collectively evaluated for impairment\t4085531\t1833581\t203920\t19366\t6142398\nEnding balance\t4086059\t1839156\t203920\t19366\t6148501\nAs of December 31 2019:\t\t\t\t\t\nEnding allowance balance allocated to:\t\t\t\t\t\nLoans individually evaluated for impairment\t0\t815\t0\t0\t815\nLoans collectively evaluated for impairment\t23372\t9261\t2341\t212\t35186\nEnding balance\t23372\t10076\t2341\t212\t36001\nLoans:\t\t\t\t\t\nEnding balance: individually evaluated for impairment\t541\t7097\t0\t0\t7638\nEnding balance: collectively evaluated for impairment\t3985440\t2014223\t203134\t20542\t6223339\nEnding balance\t3985981\t2021320\t203134\t20542\t6230977\n", "q10k_tbl_17": "(Dollars in thousands)\tMultifamily Residential\tSingle Family Residential\tCommercial Real Estate\tLand Construction and NM\tTotal\nAs of September 30 2020:\t\t\t\t\t\nGrade:\t\t\t\t\t\nPass\t3795037\t1650400\t137824\t19366\t5602627\nWatch\t263250\t172167\t62470\t0\t497887\nSpecial mention\t19155\t11522\t3626\t0\t34303\nSubstandard\t8617\t5067\t0\t0\t13684\nDoubtful\t0\t0\t0\t0\t0\nTotal\t4086059\t1839156\t203920\t19366\t6148501\nAs of December 31 2019:\t\t\t\t\t\nGrade:\t\t\t\t\t\nPass\t3917264\t1980845\t200371\t20542\t6119022\nWatch\t47309\t16432\t2763\t0\t66504\nSpecial mention\t19708\t13635\t0\t0\t33343\nSubstandard\t1700\t8808\t0\t0\t10508\nDoubtful\t0\t1600\t0\t0\t1600\nTotal\t3985981\t2021320\t203134\t20542\t6230977\n", "q10k_tbl_18": "(Dollars in thousands)\t30 Days\t60 Days\t90+ Days\tNon-accrual\tCurrent\tTotal\nAs of September 30 2020:\t\t\t\t\t\t\nLoans:\t\t\t\t\t\t\nMultifamily residential\t0\t0\t0\t528\t4085531\t4086059\nSingle family residential\t2473\t0\t0\t4303\t1832380\t1839156\nCommercial real estate\t0\t0\t0\t0\t203920\t203920\nLand construction and NM\t0\t0\t0\t0\t19366\t19366\nTotal\t2473\t0\t0\t4831\t6141197\t6148501\nAs of December 31 2019:\t\t\t\t\t\t\nLoans:\t\t\t\t\t\t\nMultifamily residential\t1411\t0\t0\t541\t3984029\t3985981\nSingle family residential\t4037\t690\t0\t5792\t2010801\t2021320\nCommercial real estate\t0\t0\t0\t0\t203134\t203134\nLand construction and NM\t0\t0\t0\t0\t20542\t20542\nTotal\t5448\t690\t0\t6333\t6218506\t6230977\n", "q10k_tbl_19": "\tAs of September 30 2020\t\t\tAs of December 31 2019\t\t\n(Dollars in thousands)\tRecorded Investment\tUnpaid Principal Balance\tRelated Allowance\tRecorded Investment\tUnpaid Principal Balance\tRelated Allowance\nWith no related allowance recorded:\t\t\t\t\t\t\nMultifamily residential\t528\t605\t0\t541\t618\t0\nSingle family residential\t4689\t5723\t0\t4588\t4915\t0\n\t5217\t6328\t0\t5129\t5533\t0\nWith an allowance recorded:\t\t\t\t\t\t\nSingle family residential\t886\t882\t25\t2509\t2484\t815\n\t886\t882\t25\t2509\t2484\t815\nTotal:\t\t\t\t\t\t\nMultifamily residential\t528\t605\t0\t541\t618\t0\nSingle family residential\t5575\t6605\t25\t7097\t7399\t815\n\t6103\t7210\t25\t7638\t8017\t815\n", "q10k_tbl_20": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(Dollars in thousands)\tAverage Recorded Investment\tInterest Income\tCash Basis Interest\tAverage Recorded Investment\tInterest Income\tCash Basis Interest\nWith no related allowance recorded:\t\t\t\t\t\t\nMultifamily residential\t530\t8\t8\t7121\t9\t9\nSingle family residential\t4724\t18\t14\t7397\t48\t18\n\t5254\t26\t22\t14518\t57\t27\nWith an allowance recorded:\t\t\t\t\t\t\nSingle family residential\t890\t10\t0\t919\t12\t0\n\t890\t10\t0\t919\t12\t0\nTotal:\t\t\t\t\t\t\nMultifamily residential\t530\t8\t8\t7121\t9\t9\nSingle family residential\t5614\t28\t14\t8316\t60\t18\n\t6144\t36\t22\t15437\t69\t27\n", "q10k_tbl_21": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(Dollars in thousands)\tAverage Recorded Investment\tInterest Income\tCash Basis Interest\tAverage Recorded Investment\tInterest Income\tCash Basis Interest\nWith no related allowance recorded:\t\t\t\t\t\t\nMultifamily residential\t535\t25\t25\t3182\t21\t21\nSingle family residential\t4757\t62\t48\t5408\t143\t43\n\t5292\t87\t73\t8590\t164\t64\nWith an allowance recorded:\t\t\t\t\t\t\nSingle family residential\t1377\t30\t0\t1145\t36\t0\n\t1377\t30\t0\t1145\t36\t0\nTotal:\t\t\t\t\t\t\nMultifamily residential\t535\t25\t25\t3182\t21\t21\nSingle family residential\t6134\t92\t48\t6553\t179\t43\n\t6669\t117\t73\t9735\t200\t64\n", "q10k_tbl_22": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nTroubled debt restructurings:\t\t\nSingle family residential\t3937\t1305\n", "q10k_tbl_23": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nNon-accrual loans:\t\t\nMultifamily residential\t528\t541\nSingle family residential\t4303\t5792\nTotal non-accrual loans\t4831\t6333\nReal estate owned\t0\t0\nTotal nonperforming assets\t4831\t6333\n", "q10k_tbl_24": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nMortgage loans serviced for:\t\t\nFederal Home Loan Mortgage Corporation (\"Freddie Mac\")\t274331\t379339\nOther financial institutions\t106733\t134140\nTotal mortgage loans serviced for others\t381064\t513479\n", "q10k_tbl_25": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nBeginning balance\t2028\t3172\t2657\t3463\nAdditions\t0\t0\t0\t155\nDisposals\t0\t0\t0\t0\nChange in fair value due to changes in assumptions\t0\t0\t0\t0\nOther changes in fair value\t(178)\t(206)\t(807)\t(652)\nEnding balance\t1850\t2966\t1850\t2966\n", "q10k_tbl_26": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nTime deposits\t3153215\t3526688\nMoney market savings\t1589428\t1330585\nInterest-bearing demand\t369056\t222509\nMoney market checking\t86208\t111338\nNoninterest-bearing demand\t78773\t43597\nTotal\t5276680\t5234717\n", "q10k_tbl_27": "October 1 - December 31 2020\t414864\n2021\t2522508\n2022\t196717\n2023\t6802\n2024\t5511\nThereafter\t6813\nTotal\t3153215\n", "q10k_tbl_28": "\tOutstanding Balances\t\tAs of September 30 2020\t\t\t\n(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\tMinimum Interest Rate\tMaximum Interest Rate\tWeighted Average Rate\tMaturity Dates\nFixed rate short-term\t0\t1500\t-%\t-%\t-%\tN/A\nFixed rate long-term\t961747\t977202\t0.00%\t7.33%\t2.19%\tNovember 2020 to March 2030\n\t961747\t978702\t\t\t\t\n", "q10k_tbl_29": "October 1 - December 31 2020\t5000\n2021\t355100\n2022\t100000\n2023\t400000\n2024\t0\nThereafter\t101647\n\t961747\n", "q10k_tbl_30": "\tSeptember 30 2020\t\tDecember 31 2019\t\tDate\tMaturity\tRate Index\nIssuer\tAmount\tRate\tAmount\tRate\tIssued\tDate\t(Quarterly Reset)\nLuther Burbank Statutory Trust I\t41238\t1.63%\t41238\t3.27%\t3/1/2006\t6/15/2036\t3 month LIBOR + 1.38%\nLuther Burbank Statutory Trust II\t20619\t1.87%\t20619\t3.51%\t3/1/2007\t6/15/2037\t3 month LIBOR + 1.62%\n", "q10k_tbl_31": "\tSeptember 30 2020\t\tDecember 31 2019\t\t\t\n(Dollars in thousands)\tPrincipal\tUnamortized Debt Issuance Costs\tPrincipal\tUnamortized Debt Issuance Costs\tMaturity Date\tFixed Interest Rate\nSenior Unsecured Term Notes\t95000\t491\t95000\t584\t9/30/2024\t6.50%\n", "q10k_tbl_32": "\tFor the Three Months Ended September 30\t\tFor the Nine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nDerivative - interest rate swaps:\t\t\t\t\nInterest income\t(3437)\t1400\t(7383)\t1514\nHedged items - loans:\t\t\t\t\nInterest income\t(16)\t6\t40\t5\nNet effect on interest income\t(3453)\t1406\t(7343)\t1519\n", "q10k_tbl_33": "\t\tFair Values of Derivative Instruments\t\t\t\n\t\tAsset Derivatives\t\tLiability Derivatives\t\n(Dollars in thousands)\tNotional Amount\tBalance Sheet Location\tFair Value\tBalance Sheet Location\tFair Value\nDerivatives designated as hedging instruments:\t\t\t\t\t\nAs of September 30 2020:\t\t\t\t\t\nInterest Rate Swaps\t1000000\tPrepaid Expenses and Other Assets\t0\tOther Liabilities and Accrued Expenses\t10834\nAs of December 31 2019:\t\t\t\t\t\nInterest Rate Swaps\t1000000\tPrepaid Expenses and Other Assets\t1156\tOther Liabilities and Accrued Expenses\t746\n", "q10k_tbl_34": "Line Item in the Consolidated Statements of Financial Condition in Which the Hedged Items are Included\tCarrying Amount of the Hedged Assets\tCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets\n(Dollars in thousands)\t\t\nAs of September 30 2020:\t\t\nLoans receivable net (1)\t1010879\t10879\nAs of December 31 2019:\t\t\nLoans receivable net (1)\t999595\t(405)\n", "q10k_tbl_35": "\tNine Months Ended September 30\t\t\t\n\t2020\t\t2019\t\n\tNumber of Shares\tWeighted Average Grant Date Fair Value\tNumber of Shares\tWeighted Average Grant Date Fair Value\nBeginning of the period balance\t717999\t10.53\t1155359\t10.97\nShares granted\t261722\t11.62\t321784\t9.80\nShares settled\t(235398)\t10.54\t(557053)\t10.96\nShares forfeited\t(31129)\t11.07\t(86082)\t10.67\nEnd of the period balance\t713194\t10.90\t834008\t10.56\n", "q10k_tbl_36": "\t\t\tFair Level Measurements Using\t\t\n(Dollars in thousands)\tCarrying Amount\tFair Value\tLevel 1\tLevel 2\tLevel 3\nAs of September 30 2020:\t\t\t\t\t\nFinancial assets:\t\t\t\t\t\nCash cash equivalents and restricted cash\t214066\t214066\t214066\t0\t0\nDebt securities:\t\t\t\t\t\nAvailable for sale\t623499\t623499\t0\t623499\t0\nHeld to maturity\t7990\t8393\t0\t8393\t0\nEquity securities\t12070\t12070\t0\t12070\t0\nLoans receivable net\t6102438\t6158846\t0\t0\t6158846\nAccrued interest receivable\t19894\t19894\t3\t1083\t18808\nFHLB stock\t29612\tN/A\tN/A\tN/A\tN/A\nFinancial liabilities:\t\t\t\t\t\nDeposits\t5276680\t5310264\t1938466\t3371798\t0\nFHLB advances\t961747\t1003764\t0\t1003764\t0\nJunior subordinated deferrable interest debentures\t61857\t55751\t0\t55751\t0\nSenior debt\t94509\t102783\t0\t102783\t0\nAccrued interest payable\t1254\t1254\t0\t1254\t0\nInterest rate swaps\t10834\t10834\t0\t10834\t0\nAs of December 31 2019:\t\t\t\t\t\nFinancial assets:\t\t\t\t\t\nCash cash equivalents and restricted cash\t91325\t91325\t91325\t0\t0\nDebt securities:\t\t\t\t\t\nAvailable for sale\t625074\t625074\t0\t625074\t0\nHeld to maturity\t10170\t10349\t0\t10349\t0\nEquity securities\t11782\t11782\t0\t11782\t0\nLoans receivable net\t6194976\t6346496\t0\t0\t6346496\nAccrued interest receivable\t20814\t20814\t26\t1685\t19103\nFHLB stock\t30342\tN/A\tN/A\tN/A\tN/A\nInterest rate swap\t1156\t1156\t0\t1156\t0\nFinancial liabilities:\t\t\t\t\t\nDeposits\t5234717\t5253511\t1558029\t3695482\t0\nFHLB advances\t978702\t996860\t0\t996860\t0\nJunior subordinated deferrable interest debentures\t61857\t59272\t0\t59272\t0\nSenior debt\t94416\t99806\t0\t99806\t0\nAccrued interest payable\t2901\t2901\t0\t2901\t0\nInterest rate swap\t746\t746\t0\t746\t0\n", "q10k_tbl_37": "Description\tFair Value\tLevel 1\tLevel 2\tLevel 3\nAs of September 30 2020:\t\t\t\t\nFinancial Assets:\t\t\t\t\nAvailable for sale debt securities:\t\t\t\t\nGovernment and Government Sponsored Entities:\t\t\t\t\nResidential MBS and CMOs\t235840\t0\t235840\t0\nCommercial MBS and CMOs\t372279\t0\t372279\t0\nAgency bonds\t15380\t0\t15380\t0\nTotal available for sale debt securities\t623499\t0\t623499\t0\nEquity securities\t12070\t0\t12070\t0\nMortgage servicing rights\t1850\t0\t0\t1850\nFinancial Liabilities:\t\t\t\t\nInterest rate swaps\t10834\t0\t10834\t0\nAs of December 31 2019:\t\t\t\t\nFinancial Assets:\t\t\t\t\nAvailable for sale debt securities:\t\t\t\t\nGovernment and Government Sponsored Entities:\t\t\t\t\nResidential MBS and CMOs\t145192\t0\t145192\t0\nCommercial MBS and CMOs\t356169\t0\t356169\t0\nAgency bonds\t123713\t0\t123713\t0\nTotal available for sale debt securities\t625074\t0\t625074\t0\nEquity securities\t11782\t0\t11782\t0\nMortgage servicing rights\t2657\t0\t0\t2657\nInterest rate swap\t1156\t0\t1156\t0\nFinancial Liabilities:\t\t\t\t\nInterest rate swap\t746\t0\t746\t0\n", "q10k_tbl_38": "Description\tFair Value\tLevel 1\tLevel 2\tLevel 3\nSeptember 30 2020\t\t\t\t\nImpaired loans:\t\t\t\t\nSingle family residential\t858\t0\t0\t858\nDecember 31 2019\t\t\t\t\nImpaired loans:\t\t\t\t\nSingle family residential\t790\t0\t0\t790\n", "q10k_tbl_39": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nProceeds from loan sales\t0\t10629\t0\t62235\nServicing fees\t214\t320\t730\t987\n", "q10k_tbl_40": "(Dollars in thousands)\tSingle Family Residential\tMultifamily Residential\nAs of September 30 2020:\t\t\nPrincipal balance of loans\t19928\t361136\nLoans 90+ days past due\t0\t0\nCharge-offs net\t0\t0\nAs of December 31 2019:\t\t\nPrincipal balance of loans\t24146\t489333\nLoans 90+ days past due\t0\t0\nCharge-offs net\t0\t0\n", "q10k_tbl_41": "October 1 - December 31 2020\t1212\n2021\t4598\n2022\t3668\n2023\t2428\n2024\t1454\nThereafter\t2658\nTotal\t16018\n", "q10k_tbl_42": "(Dollars in thousands except per share data)\t\tAs of or For the Three Months Ended\t\t\t\t\t\tAs of or For the Nine Months Ended\t\t\n\tSeptember 30 2020\t\tJune 30 2020\t\tSeptember 30 2019\t\tSeptember 30 2020\t\tSeptember 30 2019\nStatements of Income and Financial Condition Data\t\t\t\t\t\t\t\t\t\t\nNet Income\t\t14317\t\t9318\t\t12736\t\t31211\t\t36404\nPre-tax pre-provision net earnings (1)\t\t20325\t\t18471\t\t17509\t\t54850\t\t52079\nTotal assets\t\t7071663\t\t7168346\t\t7161419\t\t7071663\t\t7161419\nPer Common Share\t\t\t\t\t\t\t\t\t\t\nDiluted earnings per share\t\t0.27\t\t0.18\t\t0.23\t\t0.58\t\t0.65\nBook value per share\t\t11.62\t\t11.39\t\t10.80\t\t11.62\t\t10.80\nTangible book value per share (1)\t\t11.55\t\t11.33\t\t10.74\t\t11.55\t\t10.74\nSelected Ratios\t\t\t\t\t\t\t\t\t\t\nReturn on average:\t\t\t\t\t\t\t\t\t\t\nAssets\t\t0.80%\t\t0.52%\t\t0.71%\t\t0.59%\t\t0.69%\nStockholders' equity\t\t9.43%\t\t6.21%\t\t8.45%\t\t6.84%\t\t8.15%\nDividend payout ratio\t\t21.11%\t\t32.60%\t\t25.39%\t\t29.80%\t\t26.91%\nNet interest margin\t\t2.03%\t\t1.88%\t\t1.84%\t\t1.92%\t\t1.82%\nEfficiency ratio (1)\t\t44.62%\t\t45.38%\t\t47.86%\t\t46.97%\t\t47.45%\nNoninterest expense to average assets\t\t0.91%\t\t0.86%\t\t0.90%\t\t0.91%\t\t0.89%\nLoan to deposit ratio\t\t116.52%\t\t116.67%\t\t116.74%\t\t116.52%\t\t116.74%\nCredit Quality Ratios\t\t\t\t\t\t\t\t\t\t\nAllowance for loan losses to loans\t\t0.75%\t\t0.73%\t\t0.56%\t\t0.75%\t\t0.56%\nAllowance for loan losses to nonperforming loans\t\t953.49%\t\t940.20%\t\t269.88%\t\t953.49%\t\t269.88%\nNonperforming assets to total assets\t\t0.07%\t\t0.07%\t\t0.18%\t\t0.07%\t\t0.18%\nNet (recoveries) charge-offs to average loans\t\t(0.01)%\t\t(0.00)%\t\t(0.01)%\t\t0.01%\t\t(0.01)%\nCapital Ratios\t\t\t\t\t\t\t\t\t\t\nTier 1 leverage ratio\t\t9.22%\t\t9.14%\t\t9.25%\t\t9.22%\t\t9.25%\nTotal risk-based capital ratio\t\t18.19%\t\t17.44%\t\t17.55%\t\t18.19%\t\t17.55%\n(1) Considered a non-GAAP financial measure. See Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - ‘‘Non-GAAP Financial Measures'' for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. Pre-tax pre-provision net earnings is defined as net income before taxes and provision for loan losses. Tangible book value is defined as total assets less goodwill and total liabilities. Efficiency ratio is defined as the ratio of noninterest expense to net interest income plus noninterest income.\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_43": "\tAs of or For the Three Months Ended\t\t\tAs of or For the Nine Months Ended\t\n(Dollars in thousands)\tSeptember 30 2020\tJune 30 2020\tSeptember 30 2019\tSeptember 30 2020\tSeptember 30 2019\nPre-tax Pre-provision Net Earnings\t\t\t\t\t\nIncome before taxes\t20325\t13221\t18009\t44300\t51829\nPlus: Provision for (reversal of) loan losses\t0\t5250\t(500)\t10550\t250\nPre-tax pre-provision net earnings\t20325\t18471\t17509\t54850\t52079\nEfficiency Ratio\t\t\t\t\t\nNoninterest expense (numerator)\t16374\t15348\t16069\t48581\t47027\nNet interest income\t36112\t33148\t32585\t101375\t95245\nNoninterest income\t587\t671\t993\t2056\t3861\nOperating revenue (denominator)\t36699\t33819\t33578\t103431\t99106\nEfficiency ratio\t44.62%\t45.38%\t47.86%\t46.97%\t47.45%\n", "q10k_tbl_44": "(Dollars in thousands except per share data)\tSeptember 30 2020\tJune 30 2020\tSeptember 30 2019\nTangible Book Value Per Share\t\t\t\nTotal assets\t7071663\t7168346\t7161419\nLess: Goodwill\t(3297)\t(3297)\t(3297)\nTangible assets\t7068366\t7165049\t7158122\nLess: Total liabilities\t(6462830)\t(6571664)\t(6556047)\nTangible stockholders' equity (numerator)\t605536\t593385\t602075\nPeriod end shares outstanding (denominator)\t52410053\t52382895\t56034771\nTangible book value per share\t11.55\t11.33\t10.74\n", "q10k_tbl_45": "\tTotal Loans Modified (1)\t\t\t\t\t\n(Dollars in thousands)\t# of Loans\tCurrent Balance\t% of Loan Portfolio Segment\tWeighted Avg. LTV\tWeighted Avg. DSC(2)\tWeighted Avg. DTI(2)\t\t\t\t\t\t\nMultifamily residential\t101\t183122\t4.5%\t60.2%\t1.35\tN/A\t\t\t\t\t\t\nSingle family residential\t148\t160559\t8.9%\t69.1%\tN/A\t39.6%\t\t\t\t\t\t\nCommercial real estate\t20\t53779\t26.5%\t57.6%\t1.47\tN/A\t\t\t\t\t\t\nTotal\t269\t397460\t6.5%\t63.4%\t1.37\t39.6%\t\t\t\t\t\t\n", "q10k_tbl_46": "\tLoans Returned/Returning to Payment Status (1)\t\t\n(Dollars in thousands)\t# of Loans\tCurrent Balance\t% of Total Modified Loans\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nMultifamily residential\t83\t139465\t76.2%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nSingle family residential\t122\t134446\t83.7%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nCommercial real estate\t17\t48235\t89.7%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTotal\t222\t322146\t81.1%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_47": "\tRemaining Modified Loans (1)\t\t\t\t\t\n(Dollars in thousands)\t# of Loans\tCurrent Balance\t% of Loan Portfolio Segment\tWeighted Avg. LTV\tWeighted Avg. DSC(2)\tWeighted Avg. DTI(2)\t\t\t\t\t\t\nMultifamily residential\t18\t43657\t1.1%\t59.5%\t1.22\tN/A\t\t\t\t\t\t\nSingle family residential\t26\t26113\t1.4%\t68.9%\tN/A\t40.1%\t\t\t\t\t\t\nCommercial real estate:\t\t\t\t\t\t\t\t\t\t\t\t\nMulti-Tenant Industrial\t1\t2243\t1.1%\t62.3%\t1.18\tN/A\t\t\t\t\t\t\nShadow Retail\t1\t2029\t1.0%\t62.4%\t1.70\tN/A\t\t\t\t\t\t\nMore than 50% Commercial\t1\t1272\t0.6%\t54.1%\t1.18\tN/A\t\t\t\t\t\t\nTotal\t47\t75314\t1.2%\t62.8%\t1.24\t40.1%\t\t\t\t\t\t\n", "q10k_tbl_48": "(Dollars in thousands)\t# of Loans\tBalance\t% of Total Loans\tWeighted Average LTV (1)\nMultifamily residential\t2537\t4086059\t66.4%\t56.7%\nSingle family residential\t1967\t1839156\t30.0%\t64.4%\nCommercial real estate type:\t\t\t\t\nStrip Retail\t23\t49051\t0.8%\t51.3%\nMid Rise Office\t7\t39386\t0.6%\t65.2%\nLow Rise Office\t13\t25974\t0.4%\t55.7%\nMedical Office\t7\t20535\t0.3%\t62.6%\nMulti-Tenant Industrial\t8\t12842\t0.2%\t49.3%\nAnchored Retail\t3\t12274\t0.2%\t53.4%\nMore than 50% commercial\t11\t10909\t0.2%\t47.4%\nShopping Center\t4\t8822\t0.1%\t50.7%\nUnanchored Retail\t7\t8538\t0.1%\t44.6%\nShadow Retail\t4\t7009\t0.1%\t59.9%\nWarehouse\t4\t3097\t0.1%\t41.5%\nFlex Industrial\t2\t2507\t0.0%\t64.5%\nRestaurant\t2\t1535\t0.0%\t34.2%\nLight Manufacturing\t1\t1351\t0.0%\t49.8%\nOther\t1\t90\t0.0%\t17.1%\nCommercial Real Estate\t97\t203920\t3.3%\t55.7%\nConstruction & Land Development\t12\t19266\t0.3%\t53.2%\nNon-mortgage Loans\t1\t100\t0.0%\tNA\nTotal\t4614\t6148501\t100.0%\t58.9%\n(1) Construction and land development LTV is calculated based on an \"as completed\" property value.\t\t\t\t\n", "q10k_tbl_49": "(Dollars in thousands)\t\nAllowance for Loan Losses - as of 6/30/2020\t45985\nCOVID-19 economic impact\t98\nIncrease due to criticized loans\t770\nNet recoveries\t78\nDecline in portfolio and other changes\t(868)\nAllowance for Loan Losses - as of 9/30/2020\t46063\nAllowance for Loan Losses - as of 12/31/2019\t36001\nCOVID-19 economic impact\t10182\nIncrease due to criticized loans\t1006\nNet charge-offs\t(488)\nDecline in portfolio and other changes\t(638)\nAllowance for Loan Losses - as of 9/30/2020\t46063\n", "q10k_tbl_50": "(Dollars in thousands)\tAs of 9/30/2020\t% of Assets\nCash & Cash Equivalents\t202146\t2.9%\nUnencumbered Liquid Securities\t635569\t9.0%\nUnutilized Brokered Deposit Capacity (1)\t696502\t9.8%\nUnutilized FHLB Borrowing Capacity (2) (3)\t709197\t10.0%\nUnutilized FRB Borrowing Capacity (2)\t168194\t2.4%\nCommercial Lines of Credit\t50000\t0.7%\nTotal Liquidity\t2461608\t34.8%\n(1) Capacity based on internal guidelines\t\t\n(2) Capacity based on pledged loan collateral specific to the FHLB or FRB as applicable\t\t\n(3) Availability to borrow from the FHLB is permitted up to 40% of the Bank's assets or $2.8 billion. At September 30 2020 we had $961.7 million and $62.6 million in outstanding advances and letters of credit with the FHLB respectively.\t\t\n", "q10k_tbl_51": "\tFor the Three Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(Dollars in thousands)\tAverage Balance\tInterest Inc/Exp\tYield/Rate\tAverage Balance\tInterest Inc/Exp\tYield/Rate\nInterest-Earning Assets\t\t\t\t\t\t\nMultifamily residential\t4077293\t37805\t3.71%\t3934650\t42368\t4.31%\nSingle family residential\t1911888\t16224\t3.39%\t2118339\t18901\t3.57%\nCommercial real estate\t209379\t2444\t4.67%\t200742\t2412\t4.81%\nConstruction land and NM\t17883\t293\t6.52%\t18761\t329\t6.96%\nTotal Loans (1)\t6216443\t56766\t3.65%\t6272492\t64010\t4.08%\nInvestment securities\t661400\t2167\t1.31%\t665730\t3900\t2.34%\nCash cash equivalents and restricted cash\t242528\t83\t0.14%\t142960\t766\t2.13%\nTotal interest-earning assets\t7120371\t59016\t3.32%\t7081182\t68676\t3.88%\nNoninterest-earning assets (2)\t56529\t\t\t77416\t\t\nTotal assets\t7176900\t\t\t7158598\t\t\nInterest-Bearing Liabilities\t\t\t\t\t\t\nTransaction accounts\t368072\t463\t0.49%\t201480\t637\t1.24%\nMoney market demand accounts\t1593623\t3467\t0.85%\t1418275\t4871\t1.34%\nTime deposits\t3343849\t11814\t1.38%\t3654313\t22419\t2.40%\nTotal deposits\t5305544\t15744\t1.16%\t5274068\t27927\t2.07%\nFHLB advances\t961747\t5307\t2.20%\t1021396\t5983\t2.32%\nJunior subordinated debentures\t61857\t279\t1.79%\t61857\t604\t3.87%\nSenior debt\t94488\t1574\t6.66%\t94365\t1577\t6.68%\nTotal interest-bearing liabilities\t6423636\t22904\t1.40%\t6451686\t36091\t2.20%\nNoninterest-bearing deposit accounts\t77572\t\t\t43188\t\t\nOther noninterest-bearing liabilities\t68194\t\t\t60548\t\t\nTotal liabilities\t6569402\t\t\t6555422\t\t\nTotal stockholders' equity\t607498\t\t\t603176\t\t\nTotal liabilities and stockholders' equity\t7176900\t\t\t7158598\t\t\nNet interest spread (3)\t\t\t1.92%\t\t\t1.68%\nNet interest income/margin (4)\t\t36112\t2.03%\t\t32585\t1.84%\n", "q10k_tbl_52": "\tThree Months Ended September 30 2020 vs 2019\t\t\n\tVariance Due To\t\t\n(Dollars in thousands)\tVolume\tYield/Rate\tTotal\nInterest-Earning Assets\t\t\t\nMultifamily residential\t1496\t(6059)\t(4563)\nSingle family residential\t(1765)\t(912)\t(2677)\nCommercial real estate\t103\t(71)\t32\nConstruction land and NM\t(15)\t(21)\t(36)\nTotal Loans\t(181)\t(7063)\t(7244)\nInvestment securities\t(25)\t(1708)\t(1733)\nCash cash equivalents and restricted cash\t316\t(999)\t(683)\nTotal interest-earning assets\t110\t(9770)\t(9660)\nInterest-Bearing Liabilities\t\t\t\nTransaction accounts\t336\t(510)\t(174)\nMoney market demand accounts\t523\t(1927)\t(1404)\nTime deposits\t(1767)\t(8838)\t(10605)\nTotal deposits\t(908)\t(11275)\t(12183)\nFHLB advances\t(359)\t(317)\t(676)\nJunior subordinated debentures\t0\t(325)\t(325)\nSenior debt\t2\t(5)\t(3)\nTotal interest-bearing liabilities\t(1265)\t(11922)\t(13187)\nNet Interest Income\t1375\t2152\t3527\n", "q10k_tbl_53": "\tFor the Three Months Ended September 30\t\t\t\n(Dollars in thousands)\t2020\t2019\t Increase (Decrease)\t% Increase (Decrease)\nNoninterest Income\t\t\t\t\nGain on sale of loans\t0\t77\t(77)\t(100.0)%\nFHLB dividends\t368\t557\t(189)\t(33.9)%\nFee income\t134\t144\t(10)\t(6.9)%\nOther\t85\t215\t(130)\t(60.5)%\nTotal noninterest income\t587\t993\t(406)\t(40.9)%\n", "q10k_tbl_54": "\tFor the Three Months Ended September 30\t\t\t\n(Dollars in thousands)\t2020\t2019\t Increase (Decrease)\t% Increase (Decrease)\nNoninterest Expense\t\t\t\t\nCompensation and related benefits\t11408\t9191\t2217\t24.1%\nDeposit insurance premium\t482\t0\t482\tN/A\nProfessional and regulatory fees\t431\t521\t(90)\t(17.3)%\nOccupancy\t1156\t1425\t(269)\t(18.9)%\nDepreciation and amortization\t673\t672\t1\t0.1%\nData processing\t999\t945\t54\t5.7%\nMarketing\t306\t1217\t(911)\t(74.9)%\nOther expenses\t919\t2098\t(1179)\t(56.2)%\nTotal noninterest expense\t16374\t16069\t305\t1.9%\n", "q10k_tbl_55": "\tFor the Nine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(Dollars in thousands)\tAverage Balance\tInterest Inc/Exp\tYield/Rate\tAverage Balance\tInterest Inc/Exp\tYield/Rate\nInterest-Earning Assets\t\t\t\t\t\t\nMultifamily residential\t4054303\t116952\t3.85%\t3838154\t119553\t4.15%\nSingle family residential\t1948693\t50480\t3.45%\t2169862\t58782\t3.61%\nCommercial real estate\t207746\t7210\t4.63%\t195042\t7015\t4.80%\nConstruction land and NM\t20195\t1019\t6.74%\t14589\t728\t6.67%\nTotal Loans (1)\t6230937\t175661\t3.76%\t6217647\t186078\t3.99%\nInvestment securities\t652093\t7787\t1.59%\t659635\t11943\t2.41%\nCash cash equivalents and restricted cash\t161394\t454\t0.38%\t103185\t1688\t2.19%\nTotal interest-earning assets\t7044424\t183902\t3.48%\t6980467\t199709\t3.81%\nNoninterest-earning assets (2)\t62347\t\t\t77106\t\t\nTotal assets\t7106771\t\t\t7057573\t\t\nInterest-Bearing Liabilities\t\t\t\t\t\t\nTransaction accounts\t289325\t1366\t0.62%\t208287\t2058\t1.30%\nMoney market demand accounts\t1458688\t10920\t0.98%\t1385633\t13705\t1.30%\nTime deposits\t3489881\t47860\t1.80%\t3532068\t62923\t2.35%\nTotal deposits\t5237894\t60146\t1.51%\t5125988\t78686\t2.02%\nFHLB advances\t972311\t16550\t2.27%\t1079231\t19165\t2.37%\nJunior subordinated debentures\t61857\t1104\t2.38%\t61857\t1888\t4.08%\nSenior debt\t94458\t4727\t6.67%\t94335\t4725\t6.68%\nTotal interest-bearing liabilities\t6366520\t82527\t1.71%\t6361411\t104464\t2.17%\nNoninterest-bearing deposit accounts\t62931\t\t\t41567\t\t\nOther noninterest-bearing liabilities\t69224\t\t\t59225\t\t\nTotal liabilities\t6498675\t\t\t6462203\t\t\nTotal stockholders' equity\t608096\t\t\t595370\t\t\nTotal liabilities and stockholders' equity\t7106771\t\t\t7057573\t\t\nNet interest spread (3)\t\t\t1.77%\t\t\t1.64%\nNet interest income/margin (4)\t\t101375\t1.92%\t\t95245\t1.82%\n", "q10k_tbl_56": "\tNine Months Ended September 30 2020 vs 2019\t\t\n\tVariance Due To\t\t\n(Dollars in thousands)\tVolume\tYield/Rate\tTotal\nInterest-Earning Assets\t\t\t\nMultifamily residential\t6425\t(9026)\t(2601)\nSingle family residential\t(5786)\t(2516)\t(8302)\nCommercial real estate\t449\t(254)\t195\nConstruction land and NM\t283\t8\t291\nTotal Loans\t1371\t(11788)\t(10417)\nInvestment securities\t(135)\t(4021)\t(4156)\nCash cash equivalents and restricted cash\t636\t(1870)\t(1234)\nTotal interest-earning assets\t1872\t(17679)\t(15807)\nInterest-Bearing Liabilities\t\t\t\nTransaction accounts\t611\t(1303)\t(692)\nMoney market demand accounts\t682\t(3467)\t(2785)\nTime deposits\t(732)\t(14331)\t(15063)\nTotal deposits\t561\t(19101)\t(18540)\nFHLB advances\t(1834)\t(781)\t(2615)\nSenior debt\t7\t(5)\t2\nJunior subordinated debentures\t0\t(784)\t(784)\nTotal interest-bearing liabilities\t(1266)\t(20671)\t(21937)\nNet Interest Income\t3138\t2992\t6130\n", "q10k_tbl_57": "\tFor the Nine Months Ended September 30\t\t\t\n(Dollars in thousands)\t2020\t2019\t Increase (Decrease)\t% Increase (Decrease)\nNoninterest Income\t\t\t\t\nGain on sale of loans\t0\t607\t(607)\t(100.0)%\nFHLB dividends\t1277\t1604\t(327)\t(20.4)%\nFee income\t192\t492\t(300)\t(61.0)%\nOther\t587\t1158\t(571)\t(49.3)%\nTotal noninterest income\t2056\t3861\t(1805)\t(46.7)%\n", "q10k_tbl_58": "\tFor the Nine Months Ended September 30\t\t\t\n(Dollars in thousands)\t2020\t2019\t Increase (Decrease)\t% Increase (Decrease)\nNoninterest Expense\t\t\t\t\nCompensation and related benefits\t32913\t27857\t5056\t18.1%\nDeposit insurance premium\t1429\t985\t444\t45.1%\nOccupancy\t3397\t4214\t(817)\t(19.4)%\nDepreciation and amortization\t2029\t2001\t28\t1.4%\nProfessional and regulatory fees\t1316\t1419\t(103)\t(7.3)%\nMarketing\t1511\t3442\t(1931)\t(56.1)%\nData processing\t3004\t2809\t195\t6.9%\nOther expenses\t2982\t4300\t(1318)\t(30.7)%\nTotal noninterest expense\t48581\t47027\t1554\t3.3%\n", "q10k_tbl_59": "\tAs of September 30 2020\t\tAs of December 31 2019\t\n(Dollars in thousands)\tAmount\t% of total\tAmount\t% of total\nReal estate loans held for investment\t\t\t\t\nMultifamily residential\t4061912\t66.7%\t3962929\t64.1%\nSingle family residential\t1813743\t29.7%\t1993484\t32.3%\nCommercial real estate\t203196\t3.3%\t202452\t3.3%\nConstruction and land\t19352\t0.3%\t20565\t0.3%\nNon-mortgage\t100\t-%\t100\t-%\nTotal loans before deferred items\t6098303\t100.0%\t6179530\t100.0%\nDeferred loan costs net\t50198\t\t51447\t\nTotal loans held for investment\t6148501\t\t6230977\t\n", "q10k_tbl_60": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nLoan Inflows:\t\t\t\t\nMultifamily residential\t166664\t201216\t611215\t659549\nSingle family residential\t68577\t167092\t402969\t425418\nCommercial real estate\t0\t5910\t12106\t35040\nConstruction and land\t0\t8144\t9583\t21331\nPurchases\t0\t0\t20380\t10052\nTotal loans originated and purchased\t235241\t382362\t1056253\t1151390\nLoan Outflows:\t\t\t\t\nLoan principal reductions and payoffs\t(368845)\t(386076)\t(1158026)\t(956044)\nPortfolio loan sales\t0\t(10394)\t0\t(60841)\nOther (1)\t1066\t(3685)\t19297\t(5615)\nTotal loan outflows\t(367779)\t(400155)\t(1138729)\t(1022500)\nNet change in total loan portfolio\t(132538)\t(17793)\t(82476)\t128890\n(1) Other changes in loan balances primarily represent the net change in disbursements on unfunded commitments deferred loan costs fair value adjustments and to the extent applicable may include foreclosures charge-offs negative amortization and interest capitalized as a result of COVID-19 modifications.\t\t\t\t\n", "q10k_tbl_61": "(Dollars in thousands)\tDue in 1 year or less\tDue after 1 year through 5 years\tDue after 5 years\tTotal\nAs of September 30 2020:\t\t\t\t\nLoans\t\t\t\t\nReal estate mortgage loans:\t\t\t\t\nMultifamily residential\t13\t7099\t4054800\t4061912\nSingle family residential\t13\t1278\t1812452\t1813743\nCommercial real estate\t0\t2604\t200592\t203196\nConstruction and land\t11084\t8268\t0\t19352\nNon-mortgage\t0\t0\t100\t100\nTotal loans\t11110\t19249\t6067944\t6098303\nFixed interest rates\t0\t13\t26369\t26382\nFloating or hybrid adjustable rates\t11110\t19236\t6041575\t6071921\nTotal loans\t11110\t19249\t6067944\t6098303\nAs of December 31 2019:\t\t\t\t\nLoans\t\t\t\t\nReal estate mortgage loans:\t\t\t\t\nMultifamily residential\t0\t1498\t3961431\t3962929\nSingle family residential\t1445\t1403\t1990636\t1993484\nCommercial real estate\t58\t1640\t200754\t202452\nConstruction and land\t15884\t4681\t0\t20565\nNon-mortgage\t0\t0\t100\t100\nTotal loans\t17387\t9222\t6152921\t6179530\nFixed interest rates\t0\t352\t29828\t30180\nFloating or hybrid adjustable rates\t17387\t8870\t6123093\t6149350\nTotal loans\t17387\t9222\t6152921\t6179530\n", "q10k_tbl_62": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nNon-accrual loans\t\t\nMultifamily residential portfolio\t528\t541\nSingle family residential portfolio\t4303\t5792\nTotal non-accrual loans\t4831\t6333\nReal estate owned\t0\t0\nTotal nonperforming assets\t4831\t6333\nPerforming TDRs\t1272\t1305\nAllowance for loan losses to period end nonperforming loans\t953.49%\t568.47%\nNonperforming loans to period end loans\t0.08%\t0.10%\nNonperforming assets to total assets\t0.07%\t0.09%\nNonperforming loans plus performing TDRs to total loans\t0.10%\t0.12%\n", "q10k_tbl_63": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nAllowance for loan losses at beginning of period\t45985\t35221\t36001\t34314\nCharge-offs:\t\t\t\t\nSingle family residential\t0\t0\t(722)\t0\nTotal charge-offs\t0\t0\t(722)\t0\nRecoveries:\t\t\t\t\nSingle family residential\t3\t2\t9\t9\nConstruction and land\t75\t200\t225\t350\nTotal recoveries\t78\t202\t234\t359\nNet recoveries (charge-offs)\t78\t202\t(488)\t359\nProvision for (reversal of) loan losses\t0\t(500)\t10550\t250\nAllowance for loan losses at period end\t46063\t34923\t46063\t34923\nAllowance for loan losses to period end loans held for investment\t0.75%\t0.56%\t0.75%\t0.56%\nAnnualized net (recoveries) charge-offs to average loans\t(0.01)%\t(0.01)%\t0.01%\t(0.01)%\n", "q10k_tbl_64": "\tSeptember 30 2020\t\tDecember 31 2019\t\n(Dollars in thousands)\tBook Value\t% of Total\tBook Value\t% of Total\nAvailable for sale debt securities (at fair value):\t\t\t\t\nGovernment and Government Sponsored Entities:\t\t\t\t\nResidential mortgage backed securities ('MBS\") and collateralized mortgage obligations (\"CMOs\")\t235840\t36.64%\t145192\t22.44%\nCommercial MBS and CMOs\t372279\t57.85%\t356169\t55.05%\nAgency bonds\t15380\t2.39%\t123713\t19.12%\nTotal available for sale debt securities\t623499\t96.88%\t625074\t96.61%\nHeld to maturity (at amortized cost):\t\t\t\t\nGovernment Sponsored Entities:\t\t\t\t\nResidential MBS\t7912\t1.23%\t10087\t1.56%\nOther investments\t78\t0.01%\t83\t0.01%\nTotal held to maturity debt securities\t7990\t1.24%\t10170\t1.57%\nEquity securities (at fair value)\t12070\t1.88%\t11782\t1.82%\nTotal investment securities\t643559\t100.00%\t647026\t100.00%\n", "q10k_tbl_65": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(Dollars in thousands)\tAverage Amount\tWeighted average rate paid\tPercent of total deposits\tAverage Amount\tWeighted average rate paid\tPercent of total deposits\nNoninterest-bearing deposit accounts\t77572\t-%\t1.3%\t43188\t-%\t0.8%\nInterest-bearing transaction accounts\t368072\t0.49%\t6.8%\t201480\t1.24%\t3.8%\nMoney market demand accounts\t1593623\t0.85%\t29.6%\t1418275\t1.34%\t26.7%\nTime deposits\t3343849\t1.38%\t62.3%\t3654313\t2.40%\t68.7%\nTotal\t5383116\t1.16%\t100.0%\t5317256\t2.07%\t100.0%\n", "q10k_tbl_66": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(Dollars in thousands)\tAverage Amount\tWeighted average rate paid\tPercent of total deposits\tAverage Amount\tWeighted average rate paid\tPercent of total deposits\nNoninterest-bearing deposit accounts\t62931\t-%\t1.2%\t41567\t-%\t0.8%\nInterest-bearing transaction accounts\t289325\t0.62%\t5.5%\t208287\t1.30%\t4.0%\nMoney market demand accounts\t1458688\t0.98%\t27.5%\t1385633\t1.30%\t26.8%\nTime deposits\t3489881\t1.80%\t65.8%\t3532068\t2.35%\t68.4%\nTotal\t5300825\t1.51%\t100.0%\t5167555\t2.02%\t100.0%\n", "q10k_tbl_67": "(Dollars in thousands except for column headings)\tUnder $100000\t100000 and greater\nRemaining maturity:\t\t\nThree months or less\t104466\t310398\nOver three through six months\t127183\t399200\nOver six through twelve months\t250320\t1637147\nOver twelve months\t57045\t267456\nTotal\t539014\t2614201\nPercent of total deposits\t10.22%\t49.54%\n", "q10k_tbl_68": "\tSeptember 30 2020\t\tDecember 31 2019\t\tDate\tMaturity\tRate Index\nIssuer\tAmount\tRate\tAmount\tRate\tIssued\tDate\t(Quarterly Reset)\nLuther Burbank Statutory Trust I\t41238\t1.63%\t41238\t3.27%\t3/1/2006\t6/15/2036\t3 month LIBOR + 1.38%\nLuther Burbank Statutory Trust II\t20619\t1.87%\t20619\t3.51%\t3/1/2007\t6/15/2037\t3 month LIBOR + 1.62%\n", "q10k_tbl_69": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nFHLB advances\t\t\t\t\nAverage amount outstanding during the period\t961747\t1021396\t972311\t1079231\nMaximum amount outstanding at any month-end during the period\t961747\t1052115\t1040199\t1052120\nBalance outstanding at end of period\t961747\t977210\t961747\t977210\nWeighted average maturity (in years)\t2.1\t2.6\t2.1\t2.6\nWeighted average interest rate at end of period\t2.19%\t2.30%\t2.19%\t2.30%\nWeighted average interest rate during the period\t2.20%\t2.32%\t2.27%\t2.37%\nJunior subordinated deferrable interest debentures\t\t\t\t\nBalance outstanding at end of period\t61857\t61857\t61857\t61857\nWeighted average maturity (in years)\t16.3\t17.3\t16.3\t17.3\nWeighted average interest rate at end of period\t1.71%\t3.58%\t1.71%\t3.58%\nWeighted average interest rate during the period\t1.79%\t3.87%\t2.38%\t4.08%\nSenior unsecured term notes\t\t\t\t\nBalance outstanding at end of period\t94509\t94386\t94509\t94386\nWeighted average maturity (in years)\t4.1\t5.1\t4.1\t5.1\nWeighted average interest rate at end of period\t6.66%\t6.68%\t6.66%\t6.68%\nWeighted average interest rate during the period\t6.66%\t6.68%\t6.67%\t6.68%\n", "q10k_tbl_70": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nOutstanding at period end\t0\t0\t0\t0\nAverage amount outstanding\t0\t1847\t9239\t65191\nMaximum amount outstanding at any month end\t0\t0\t63000\t209700\nWeighted average interest rate:\t\t\t\t\nDuring period\t-%\t2.44%\t1.45%\t2.57%\nEnd of period\t-%\t-%\t-%\t-%\n", "q10k_tbl_71": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nCommitments to fund loans held for investment\t124100\t103227\n", "q10k_tbl_72": "\t\tPayments Due by Period\t\t\t\n\t\tLess than 1 Year\t1 to 3 Years\t3 to 5 Years\tMore than 5 Years\n(Dollars in thousands)\tTotal\t\t\nContractual Cash Obligations\t\t\t\t\t\nTime deposits (1)\t3153215\t2828714\t312008\t12493\t0\nFHLB advances (1)\t961747\t360100\t400000\t201500\t147\nSenior debt (1)\t95000\t0\t0\t95000\t0\nJunior subordinated debentures (1)\t61857\t0\t0\t0\t61857\nOperating leases\t16018\t4804\t6581\t2788\t1845\nSignificant contract (2)\t6804\t1213\t2427\t2427\t737\nTotal\t4294641\t3194831\t721016\t314208\t64586\n(1) Amounts exclude interest\t\t\t\t\t\n(2) We have one significant long-term contract for core processing services which expires May 9 2026. The actual obligation is unknown and dependent on certain factors including volume and activities. For purposes of this disclosure future obligations are estimated using our current year-to-date average monthly expense extrapolated over the remaining life of the contract.\t\t\t\t\t\n", "q10k_tbl_73": "\t\t\tMinimum Required\t\t\t\t\t\n\tActual\t\tFor Capital Adequacy Purposes\t\tPlus Capital Conservation Buffer\t\tFor Well- Capitalized Institution\t\n(Dollars in thousands)\tAmount\tRatio\tAmount\tRatio\tAmount\tRatio\tAmount\tRatio\nLuther Burbank Corporation\t\t\t\t\t\t\t\t\nAs of September 30 2020\t\t\t\t\t\t\t\t\nTier 1 Leverage Ratio\t660822\t9.22%\t286682\t4.00%\tN/A\tN/A\tN/A\tN/A\nCommon Equity Tier 1 Risk-Based Ratio\t598965\t15.39%\t175152\t4.50%\t272458\t7.00%\tN/A\tN/A\nTier 1 Risk-Based Capital Ratio\t660822\t16.98%\t233536\t6.00%\t330842\t8.50%\tN/A\tN/A\nTotal Risk-Based Capital Ratio\t708025\t18.19%\t311381\t8.00%\t408687\t10.50%\tN/A\tN/A\nAs of December 31 2019\t\t\t\t\t\t\t\t\nTier 1 Leverage Ratio\t671580\t9.47%\t283631\t4.00%\tN/A\tN/A\tN/A\tN/A\nCommon Equity Tier 1 Risk-Based Ratio\t609723\t15.46%\t177523\t4.50%\t276147\t7.00%\tN/A\tN/A\nTier 1 Risk-Based Capital Ratio\t671580\t17.02%\t236697\t6.00%\t335321\t8.50%\tN/A\tN/A\nTotal Risk-Based Capital Ratio\t708847\t17.97%\t315596\t8.00%\t414220\t10.50%\tN/A\tN/A\nLuther Burbank Savings\t\t\t\t\t\t\t\t\nAs of September 30 2020\t\t\t\t\t\t\t\t\nTier 1 Leverage Ratio\t741409\t10.35%\t286606\t4.00%\tN/A\tN/A\t358257\t5.00%\nCommon Equity Tier 1 Risk-Based Ratio\t741409\t19.07%\t174973\t4.50%\t272181\t7.00%\t252739\t6.50%\nTier 1 Risk-Based Capital Ratio\t741409\t19.07%\t233298\t6.00%\t330505\t8.50%\t311063\t8.00%\nTotal Risk-Based Capital Ratio\t788612\t20.28%\t311063\t8.00%\t408271\t10.50%\t388829\t10.00%\nAs of December 31 2019\t\t\t\t\t\t\t\t\nTier 1 Leverage Ratio\t748916\t10.57%\t283542\t4.00%\tN/A\tN/A\t354428\t5.00%\nCommon Equity Tier 1 Risk-Based Ratio\t748916\t18.99%\t177437\t4.50%\t276012\t7.00%\t256297\t6.50%\nTier 1 Risk-Based Capital Ratio\t748916\t18.99%\t236582\t6.00%\t335158\t8.50%\t315443\t8.00%\nTotal Risk-Based Capital Ratio\t786183\t19.94%\t315443\t8.00%\t414019\t10.50%\t394303\t10.00%\n", "q10k_tbl_74": "Interest Rate Risk to Earnings (NII)\t\t\nSeptember 30 2020\t\t\n(Dollars in millions)\t\t\nChange in Interest Rates (basis points)\t Change NII\t% Change NII\n+400 BP\t(7.7)\t(5.1)%\n+300 BP\t(4.2)\t(2.8)%\n+200 BP\t(1.9)\t(1.3)%\n+100 BP\t(0.6)\t(0.4)%\n-100 BP\t1.0\t0.6%\n", "q10k_tbl_75": "Interest Rate Risk to Capital (EVE)\t\t\nSeptember 30 2020\t\t\n(Dollars in millions)\t\t\nChange in Interest Rates (basis points)\t Change EVE\t% Change EVE\n+400 BP\t(167.3)\t(31.3)%\n+300 BP\t(116.4)\t(21.8)%\n+200 BP\t(79.8)\t(14.9)%\n+100 BP\t(46.7)\t(8.7)%\n-100 BP\t41.0\t7.7%\n", "q10k_tbl_76": "(Dollars in thousands)\t\t\t\tFair Value\t\nHedging Instrument\tHedge Accounting Type\tMonths to Maturity\tNotional\tOther Assets\tOther Liabilities\nFHLB fixed rate advance\tWith embedded cap\t5\t100000\t0\t0\nInterest rate swap\tFair value hedge\t9\t500000\t0\t5478\nInterest rate swap\tFair value hedge\t11\t500000\t0\t5356\n\t\t\t1100000\t0\t10834\n", "q10k_tbl_77": "\t\t\tIncorporated by Reference\t\t\t\nExhibit Number\tDescription\tFiled Herewith\tForm\tFile No.\tExhibit\tFiling Date\n3.1\tAmended and Restated Articles of Incorporation of Luther Burbank Corporation\t\tS-1\t333-221455\t3.1\t11/9/2017\n3.2\tAmended and Restated Bylaws of Luther Burbank Corporation\t\tS-1\t333-221455\t3.2\t11/9/2017\n4.1\tSpecimen Certificate for Common Stock\t\tS-1\t333-221455\t4.1\t11/9/2017\n\tPursuant to Item 601(b) (4) (iii) (A) of Regulation S-K copies of instruments defining the rights of holders of long-term debt and preferred securities are not filed. The Company agrees to furnish a copy thereof to the SEC upon request.\t\t\t\t\t\n31.1\tRule 13a-14(a) Certification of Chief Executive Officer*\tX\t\t\t\t\n31.2\tRule 13a-14(a) Certification of Chief Financial Officer*\tX\t\t\t\t\n32.1\tSection 1350 Certification of Chief Executive Officer*\tX\t\t\t\t\n32.2\tSection 1350 Certification of Chief Financial Officer*\tX\t\t\t\t\n101.INS\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document\tX\t\t\t\t\n101.SCH\tInline XBRL Taxonomy Extension Schema Document\tX\t\t\t\t\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document\tX\t\t\t\t\n101.DEF\tInline XBRL Taxonomy Extension Definitions Linkbase Document\tX\t\t\t\t\n101.LAB\tInline XBRL Taxonomy Extension Label Linkbase Document\tX\t\t\t\t\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document\tX\t\t\t\t\n104\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\tX\t\t\t\t\n"}{"bs": "q10k_tbl_1", "is": "q10k_tbl_2", "cf": "q10k_tbl_6"}None
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
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 Class
Trading Symbol
Name of Each Exchange on Which Registered
Common stock, no par value
LBC
The 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. Yesx 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). Yesx 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 October 30, 2020, there were 52,409,960 shares of the registrant’s common stock, no par value, outstanding.
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, 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. Continued deterioration in general business and economic conditions, including further 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 2019 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.
$95,000 face amount, 6.5% interest rate, due September 30, 2024 (less debt issuance costs of $491 and $584 at September 30, 2020 and December 31, 2019, respectively)
94,509
94,416
Accrued interest payable
1,254
2,901
Other liabilities and accrued expenses
66,783
58,771
Total liabilities
6,462,830
6,431,364
Commitments and contingencies (Note 16)
Stockholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized; none issued and outstanding at September 30, 2020 and December 31, 2019, respectively
—
—
Common stock, no par value; 100,000,000 shares authorized; 52,410,053 and 55,999,754 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
415,115
447,784
Retained earnings
187,147
165,236
Accumulated other comprehensive income, net of taxes
6,571
1,444
Total stockholders' equity
608,833
614,464
Total liabilities and stockholders' equity
$
7,071,663
$
7,045,828
See accompanying notes to unaudited consolidated financial statements
Accumulated Other Comprehensive (Loss) Income (Net of Taxes)
Total Stockholders' Equity
Common Stock
Retained Earnings
Available for Sale Securities
Cash Flow Hedge
Shares
Amount
Balance, December 31, 2018
56,379,066
$
456,378
$
129,806
$
(4,935)
$
(104)
$
581,145
Cumulative effect of change in accounting principal (1)
—
—
(399)
399
—
—
Comprehensive income:
Net income
—
—
36,404
—
—
36,404
Other comprehensive income
—
—
—
6,503
104
6,607
Issuance of restricted stock awards
321,784
—
—
—
—
—
Settled restricted stock units
499,707
—
—
—
—
—
Shares withheld to pay taxes on stock based compensation
(223,044)
(2,409)
—
—
—
(2,409)
Restricted stock forfeitures
(72,041)
(220)
18
—
—
(202)
Stock based compensation expense
—
2,431
—
—
—
2,431
Shares repurchased
(870,701)
(8,791)
—
—
—
(8,791)
Cash dividends ($0.17 per share)
—
—
(9,813)
—
—
(9,813)
Balance, September 30, 2019
56,034,771
$
447,389
$
156,016
$
1,967
$
—
$
605,372
Balance, December 31, 2019
55,999,754
$
447,784
$
165,236
$
1,444
$
—
$
614,464
Comprehensive income:
Net income
—
—
31,211
—
—
31,211
Other comprehensive income
—
—
—
5,127
—
5,127
Issuance of restricted stock awards
261,722
—
—
—
—
—
Settled restricted stock units
94,408
—
—
—
—
—
Shares withheld to pay taxes on stock based compensation
(64,361)
(666)
—
—
—
(666)
Restricted stock forfeitures
(29,661)
(31)
8
—
—
(23)
Stock based compensation expense
—
2,742
—
—
—
2,742
Shares repurchased
(3,851,809)
(34,714)
—
—
—
(34,714)
Cash dividends ($0.17 per share)
—
—
(9,308)
—
—
(9,308)
Balance, September 30, 2020
52,410,053
$
415,115
$
187,147
$
6,571
$
—
$
608,833
(1) Represents the impact of adopting Accounting Standards Update ("ASU") 2016-01. See Note 3 to the unaudited consolidated financial statements for further information.
See accompanying notes to unaudited consolidated financial statements
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, 2019, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 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 and nine months ended September 30, 2020 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, 2020.
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. The estimates utilized to determine the appropriate allowance for loan losses at September 30, 2020 may be materially different from actual results due to the COVID-19 pandemic. See Note 2 to the unaudited consolidated financial statements for additional information regarding the COVID-19 pandemic.
Reclassifications
Certain prior balances in the unaudited consolidated financial statements have been reclassified to
conform to current year presentation. These reclassifications had no effect on prior year net income or stockholders’ equity.
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 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 September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Net income
$
14,317
$
12,736
$
31,211
$
36,404
Weighted average basic common shares outstanding
52,001,097
55,654,429
53,359,460
56,094,285
Add: Dilutive effects of assumed vesting of restricted stock
156,106
273,104
118,309
219,587
Weighted average diluted common shares outstanding
52,157,203
55,927,533
53,477,769
56,313,872
Income per common share:
Basic EPS
$
0.28
$
0.23
$
0.58
$
0.65
Diluted EPS
$
0.27
$
0.23
$
0.58
$
0.65
Anti-dilutive shares not included in calculation of diluted earnings per share
26
4,398
17,623
4,381
Qualified Affordable Housing Project Investments
During the quarter ended September 30, 2020, the Company invested in a qualified affordable housing project that is expected to provide federal and California state tax credits in the future. This investment is accounted for using the proportional amortization method. During the quarter ended September 30, 2020, the Company committed to invest $4.8 million, of which $1.6 million has been funded at September 30, 2020, and was included in prepaid expenses and other assets in the unaudited consolidated statement of financial condition. The total unfunded commitment related to the investment totaled $3.3 million at September 30, 2020 and was included in other liabilities and accrued expenses in the unaudited consolidated statement of financial condition. Unfunded commitments are expected to be paid by the Company no later than 2023. During both the three and nine months ended September 30, 2020, the Company recognized amortization expense of $21 thousand and tax benefits related to the investment of $28 thousand. Amortization expense and tax benefits are included in the provision for income taxes in the unaudited consolidated statement of income.
In late March 2020, the Company implemented a loan modification program that permits borrowers who have been financially impacted by the COVID-19 pandemic, and are unable to service their loans, to defer loan payments for a specified period of time. As of September 30, 2020, the Company had modified 269 current outstanding loans with an aggregate principal balance of $397.5 million, representing 6.5% of the Company's loan portfolio. Of these loans, 222 loans with an aggregate principal balance totaling $322.1 million as of September 30, 2020 have returned, or the borrower has indicated they intend to return, to payments following their respective modification period. Excluded from the modified loan amounts above, 15 loans totaling $24.0 million have paid off subsequent to modification as of September 30, 2020. Modified loans under this program have generally been downgraded to a Watch risk rating at the time of their respective modifications. During the nine months ended September 30, 2020, the Company recorded a loan loss reserve of $10.2 million in connection with the potential credit impact from the pandemic. See Note 4 for further discussion regarding loan risk ratings and the Company's allowance for loan losses.
In conjunction with the passage of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), as well as the revised interagency guidance issued in April 2020, "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus (Revised)", banks have been provided the option, for loans meeting specific criteria, to temporarily suspend certain requirements under GAAP related to Troubled Debt Restructurings ("TDRs") for a limited time to account for the effects of COVID-19. As a result, the Company is not recognizing eligible COVID-19 loan modifications as TDRs. Additionally, loans qualifying for these modifications are not required to be reported as delinquent, nonaccrual, impaired or criticized solely as a result of a COVID-19 loan modification. Through the date of this filing, the Company has not experienced any loan charge-offs caused by the economic impact from COVID-19. Management has evaluated events related to COVID-19 that have occurred subsequent to September 30, 2020 and has concluded there are no matters that would require recognition in the accompanying unaudited consolidated financial statements.
3. 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 Cost
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
At September 30, 2020:
Government and Government Sponsored Entities:
Residential mortgage backed securities ('MBS") and collateralized mortgage obligations ("CMOs")