Luther Burbank Corp. (Nasdaq: LBC) on Monday reported fourth-quarter net income of $10.6 million, down 48.1 percent from a year before and off by 12.3 percent from the third quarter.
The holding company for Santa Rosa-based Luther Burbank Savings said it had fourth-quarter earnings of 19 cents per share, down from 45 cents a year before and 22 cents in the third quarter.
The company revoked its S corporation status at the end of 2017. Based on proforma net income of $8.5 million in the fourth quarter of 2017 and $37.8 million for that year, growth over 12 months was 25 percent for the quarter and 19 percent for the year.
The bank holding company posted fourth-quarter revenue of $63.9 million. Its revenue net of interest expense was $33 million, surpassing Street forecasts.
"Despite a challenging interest rate environment, which has compressed our net interest margin, I'm encouraged by the resilience of our team to continue generating quality loans and retail deposit relationships, which are exemplified by the sustained improvement in the level of our nonperforming assets and the retention rates of our deposit customers," said Simone Lagomarsino, president and CEO, in a statement.
The bank's loan and deposit portfolios were $1.1 billion and $1.0 billion, respectively, at the end of last year.
Luther Burbank shares have risen 11 percent since the beginning of the year. In the final minutes of trading on Monday, shares hit $10, a decrease of 23 percent in the last 12 months.
North Bay Business Journal contributed to this report.