Press Release

Luther Burbank Savings Converts to State-Chartered Commercial Bank Status

SANTA ROSA, Calif. (October 4, 2016) – Luther Burbank Savings, one of the largest privately held financial institutions in California with over $4.7 billion in assets, has announced its strategic conversion from a federally-chartered savings association to a state-chartered commercial bank, according to John Biggs, President and Chief Executive Officer.

This transition means that Luther Burbank Savings will be regulated by the California Department of Business Oversight (DBO) and will continue to be insured by the Federal Deposit Insurance Corporation (FDIC).

“This charter conversion is a strategic initiative to streamline our operational efficiencies, and will have little to no impact on our customers, who will continue to receive the outstanding level of service they have always enjoyed,” explains Biggs.

With the Department of Business Oversight as regulator, Luther Burbank Savings will continue its customer-focused operations, offering a variety of consumer and wholesale banking services focusing on single family, multifamily and commercial mortgage loan origination and retail deposits, according to Biggs.

“The decision to shift to a locally-based regulator will further our customer-first focus, providing us with a regulator that is well-positioned to understand our business model and the local economy, thereby supporting us as we make decisions that are best for our customer base,” continues Biggs. 

Biggs notes that the shift to a state-chartered bank status is indicative of a larger trend as small-to-midsize community banks throughout the nation convert charters in the midst of federal regulatory reform. According to the New York Times, more than 600 savings and loan associations have moved from federal regulation under the Office of the Comptroller of the Currency (OCC) to state regulation in recent years.

As a result of this conversion, Luther Burbank Savings will transition from a unitary thrift structure, which controls a savings-and-loan association, to a bank holding company, which exercises control over a bank.

“This marks the next step in our progression as a bank, and ensures that we are structured for future growth,” says Jason Pendergist, President – Consumer & Commercial Banking.  He continues, “Luther Burbank will be expanding its breadth of services with the highly anticipated launch of business banking in the fourth quarter. We will also be offering enhanced online and mobile banking experiences, giving our customers improved digital platforms that deliver greater accessibility to our products and services.”

On the heels of its recent charter conversion and continued expansion of services, Luther Burbank Savings recently launched a newly refreshed brand, including a new logo and tagline - “You’re worth more here.” 

“This positioning is perfectly aligned with our vision as a company, which is a focus on helping our customers prosper in the things that matter most to them,” says Pendergist.  “Through that focus, we prove that our customers mean more to us than their account balances.  Rather than getting lost in the ‘big bank’ shuffle, our customers enjoy products and services that give them a competitive edge, while also enjoying being a part of our community, just as we are a part of theirs.”

Since launching its operations, Luther Burbank Savings has evolved into a $4.7 billion institution with nine branches and over 300 employees. With risk-based capital and non-performing asset ratios of 22.9 percent and 0.07 percent respectively, Luther Burbank Savings has grown into one of the strongest financial institutions in the state.

Pendergist notes that this success speaks to the strength of the bank’s team, its deep expertise in maintaining fiscally sound banking practices, and its ability to evolve as needed by pursuing operational efficiencies that will further the bank’s growth.

Founded in 1983 in Santa Rosa, California, Luther Burbank Savings is an FDIC insured, privately held, California state-chartered commercial bank with over $4.7 billion in assets. Luther Burbank Savings offers a variety of consumer and wholesale banking services focusing on single family, multifamily and commercial mortgage loan origination and retail deposits. To find out more about Luther Burbank Savings and why customers are worth more here, additional information is available at  Luther Burbank Savings, an Equal Housing Lender, is headquartered in Santa Rosa, California.

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