Luther Burbank Corporation (NASDAQ:LBC) Q3 2022 Earnings Conference Call October 26, 2022 11:00 AM ET
Company Participants
Simone Lagomarsino - CEO and President
Laura Tarantino - EVP and CFO
Conference Call Participants
Woody Lay - KBW
Adam Butler - Piper Sandler
Gary Tenner - D.A. Davidson
Operator
Good morning, and welcome to the Luther Burbank Corporation Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions].
Before we begin, the company would like to remind you that discussions during this call contain forward-looking statements that do not relate strictly to historical or facts. Luther Burbank Corporation does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Numerous factors could cause our actual results to differ materially from those described in forward-looking statements. For more information on those factors, please see the company's periodic reports accessible at the Luther Burbank Corporation website and filed with the SEC.
The presentation today contains certain non-GAAP financial measures that we believe provide useful information about our operational efficiency and performance relative to earlier periods and relative to other companies. For more details on these non-GAAP financial measures and their limitations, including presentation with and reconciliation to the most directly comparable GAAP financials, please refer to yesterday's earnings release and the related investor presentation, which is available on our website at www.lutherburbanksavings.com.
I would now like to turn the conference over to Simone Lagomarsino, President and CEO. Please go ahead.
Simone Lagomarsino
Thank you very much. Good morning, everyone, and welcome to the Luther Burbank Corporation's quarterly earnings conference call. This is Simone Lagomarsino, President and CEO. And with me today is Laura Tarantino, our CFO. Today, we'll review our third quarter financial performance, share our observations on recent trends, and then open the lines for our analysts' questions.
Our net income for the third quarter was $21 million or $0.41 per diluted share as compared to $22.6 million or $0.44 per diluted share in the linked quarter. The decline in net earnings of $1.6 million was primarily attributed to the rise in market interest rates.
Three key financial components summarize the changes in net income as compared to the second quarter. Our net interest income decreased by $2 million and our non-interest expense increased by $2.1 million, while our provision for loan losses declined by $2 million.
Let me address each of these in more detail. First, our interest income on earning assets increased as a result of loan growth, slower loan prepayments, greater earnings on interest rate swaps and higher loan coupons on new loan originations. Our yield on interest-earning assets during the third quarter increased by 25 basis points compared to the second quarter.