The following is a discussion of our financial condition at June 30, 2022 and
December 31, 2021 and our results of operations for the three months ended June
30, 2022 and March 31, 2022 and the six months ended June 30, 2022 and 2021, and
should be read in conjunction with our audited consolidated financial statements
set forth in our Annual Report on Form 10-K for the year ended December 31, 2021
that was filed with the Securities and Exchange Commission (the "SEC") on March
14, 2022 (our "Annual Report") and with the accompanying Notes to Unaudited
Consolidated Financial Statements set forth in this Quarterly Report on Form
10-Q for the quarterly period ended June 30, 2022 (this "Report"). Because we
conduct all of our material business operations through our bank subsidiary,
Luther Burbank Savings (the "Bank"), the discussion and analysis relates to
activities primarily conducted by the Bank.
Overview
We are a bank holding company headquartered in Santa Rosa, California, and the
parent company of Luther Burbank Savings, a California-chartered commercial bank
headquartered in Gardena, California with $7.5 billion in assets at June 30,
2022. Our principal business is providing high-value, relationship-based banking
products and services to our customers, which include real estate investors,
professionals, entrepreneurs, depositors and commercial businesses. We generate
most of our revenue from interest on loans and investments. Our primary source
of funding for our loans is retail deposits and we place secondary reliance on
wholesale funding, primarily borrowings from the FHLB and brokered deposits. Our
largest expenses are interest on deposits and borrowings along with salaries and
related employee benefits. Our principal lending products are real estate
secured loans, consisting primarily of multifamily residential properties and
jumbo single family residential properties on the West Coast.
Selected Financial Data
The following table sets forth the Company's selected historical consolidated
financial data for the periods and as of the dates indicated. You should read
this information together with the Company's audited consolidated financial
statements included in our Annual Report and the unaudited consolidated
financial statements and related notes included elsewhere in this Report. The
selected historical consolidated financial data as of and for the three and six
months ended June 30, 2022 and 2021 are derived from our unaudited consolidated
financial statements, which are included elsewhere in this Report. The selected
historical consolidated financial data for the three months ended March 31, 2022
are derived from our unaudited consolidated financial statements which were
included in our previously filed Form 10-Q on May 6, 2022. The Company's
historical results for any prior period are not necessarily indicative of future
performance.
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