Luther Burbank Corporation (NASDAQ:LBC) Q2 2022 Results Conference Call July 27, 2022 11:00 AM ET

Company Participants

Simone Lagomarsino - Chief Executive Officer, President & Director

Laura Tarantino - Executive Vice President & Chief Financial Officer

Conference Call Participants

Matthew Clark - Piper Sandler

Woody Lay - KBW

Operator

Good morning, and welcome to the Luther Burbank Corporation Second Quarter 2022 Earnings Conference Call. [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 current 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 Ms. Simone Lagomarsino, President and CEO. Please go ahead.

Simone Lagomarsino

Thank you very much. Good morning, everyone, and welcome to Luther Burbank Corporation's earnings conference call. This is Simone Lagomarsino, President and CEO; and with me is Laura Tarantino, our CFO. Thank you for joining the call today to review our second quarter results. As is customary, we will focus on our actual financial performance, share our observations regarding recent trends and then open the line for analysts' questions.

We reported net income for the second quarter of $22.6 million or $0.44 per diluted share as compared to $22.9 million or $0.45 per diluted share in the linked quarter. The decline in net earnings of $373,000 was primarily attributed to 3 key factors.

While our net interest income increased by $2.4 million and our noninterest expense decreased by $2.2 million, these 2 positive trends were more than offset by a $5 million fluctuation in the provision for loan losses between the first and second quarters of the year.