Skip to main content

CORRECTING and REPLACING Lewis & Clark Bancorp Announces 2022 Third Quarter and Year to Date Results

Second paragraph, seventh sentence of release dated Nov. 14, 2022, should read: These include infrastructure and channel partnership development to support banking-as-a-service, lending platforms, and payments; automation efforts to support scale; and overall, back-office operational efficiencies.

The updated release reads:

LEWIS & CLARK BANCORP ANNOUNCES 2022 THIRD QUARTER AND YEAR TO DATE RESULTS

Lewis & Clark Bancorp (OTC Pink: LWCL) announces 2022 third quarter and year to date consolidated results. Quarter to date net income totaled $318,000 for the three months ended September 30, 2022, a decrease of $981,000 compared to $1,299,000 for the same period last year. Earnings per share were $0.30 for the current year quarter, compared to $1.21 for the prior year quarter.

The decreased earnings in the current year quarter were due to a decrease in both net interest income and noninterest income and an increase in noninterest expense, partially offset by a decrease in the provision for income taxes compared to the same period one year ago. The decrease in net interest income was due to a decrease in interest and fees on loans, primarily due to a decline in interest and fees earned on the Paycheck Protection Program (PPP) loans in the prior year period, partially offset by an increase in interest on interest bearing cash and investment securities, and a decrease in interest expense due to lower rates paid on deposits. Net interest margin was 3.06% for the current year quarter compared to 3.73% for the same period one year ago. The decrease in the net interest margin was primarily due to a decrease in interest and fees earned from the PPP loans, as well as the reinvestment of cash received upon forgiveness of the related loans into lower yielding investment securities. The increase in noninterest expense was due to increases in salaries and employee benefits, advertising and marketing, professional fees, software license and maintenance, and various other overhead expenses, partially offset by a decrease in both the FDIC assessment and intangible amortization. The increased noninterest expense is primarily due to our long-range strategic investment and growth initiatives, which are now in full implementation mode. These include infrastructure and channel partnership development to support banking-as-a-service, lending platforms, and payments; automation efforts to support scale; and overall, back-office operational efficiencies. These infrastructure and channel partnership investments are anticipated to continue at similar levels into the first half of 2023, before tapering off or being offset by associated revenue. The decrease in the provision for income taxes was due to a decrease in pre-tax earnings compared to the prior year period.

Year to date net income totaled $1,217,000, or $1.13 per share, compared to $3,243,000, or $2.94 per share for the same period last year. The decreased earnings in the current year period were due to a decrease in net interest income and an increase in noninterest expense, partially offset by an increase in noninterest income and a decrease in the provision for income taxes compared to the same period one year ago. Except for noninterest income, the decreased earnings for the year-to-date period are substantially the same as those for the current year quarter as previously discussed. The increase in noninterest income was due to increases in both earnings from cash surrender value of life insurance and gains on equity securities compared to the prior year period, partially offset by a decline in proceeds from life insurance received in the prior year period.

Jeffrey Sumpter, President and CEO, commented, “Although our quarterly and year to date earnings are less than those reported in the prior year periods, they are in line with our expectations given the many and previously announced strategic investment and growth initiatives that are now in full implementation mode.” Sumpter added, “We continue to move forward with these initiatives which are designed to augment and diversify revenue, ensure capacity to scale, and improve overall efficiencies as we move forward into the coming years. Our balance sheet is well positioned to accommodate anticipated loan and deposit growth arising from the several strategic partnerships that have recently gone live or will go live over the next two quarters. We are also pleased to report that we have paid twenty-six consecutive quarters of shareholder dividends.”

As of September 30, 2022, total consolidated assets were $373.2 million, a decrease of $71.5 million, or 16.1%, compared to December 31, 2021, primarily due to decreases in cash, investment securities, gross loans, and total deposits, partially offset by an increase in other assets and borrowings. Investment securities decreased by $13.6 million substantially due to a $12.8 million increase in unrealized losses. Gross loans decreased by $20.5 million primarily due to principal reductions and payoffs exceeding new originations. Total deposits decreased $83.5 million, which was expected given the increased growth in the prior year related to the deposits generated from PPP loans. Total other assets increased by $3.6 million due to an increase in deferred taxes related to unrealized losses on investment securities. Shareholders’ equity totaled $29.3 million at September 30, 2022, a decrease of $8.3 million, compared to $37.6 million at December 31, 2021. The decrease was due to a $9.3 million increase in unrealized losses on investment securities, and shareholder dividends totaling $241,000, partially offset by earnings of $1,217,000.

About Lewis & Clark Bancorp

Headquartered in Oregon City, Oregon, Lewis & Clark Bancorp is the holding company for Lewis & Clark Bank, a state-chartered full-service commercial bank. Partnering with people and businesses—whether in our local geographic footprint within Oregon and SW Washington or through select channel partnerships nationally—we believe that being an integral part of the community we serve helps promote both growth and success for all stakeholders.

For more information about Lewis & Clark Bank, visit www.lewisandclarkbank.com.

Forward-looking Statements

Statements included in this press release that are not historical or current fact are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Lewis & Clark Bancorp disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events or circumstances.

Summary Balance Sheet

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

December 31, 2021

$ Change

% Change

ASSETS

Cash

$

25,337

 

$

66,517

 

$

(41,180

)

-61.9

%

Equity Securities

 

2,512

 

 

2,117

 

 

395

 

18.7

%

Investment Securities

 

150,728

 

 

164,324

 

 

(13,596

)

-8.3

%

Gross loans

 

173,149

 

 

193,657

 

 

(20,508

)

-10.6

%

Allowance for loan losses

 

(3,058

)

 

(3,054

)

 

(4

)

0.1

%

Net loans

 

170,091

 

 

190,603

 

 

(20,512

)

-10.8

%

Fixed Assets

 

7,031

 

 

7,232

 

 

(201

)

-2.8

%

Other Assets

 

17,468

 

 

13,830

 

 

3,638

 

26.3

%

Total Assets

$

373,167

 

$

444,623

 

$

(71,456

)

-16.1

%

 

LIABILITIES AND EQUITY

Deposits:

Noninterest-bearing

$

103,950

 

$

97,189

 

$

6,761

 

7.0

%

Interest-bearing demand

 

16,601

 

 

20,558

 

 

(3,957

)

-19.2

%

Money market and savings

 

161,574

 

 

237,681

 

 

(76,107

)

-32.0

%

Time deposits

 

32,324

 

 

42,527

 

 

(10,203

)

-24.0

%

Total deposits

 

314,449

 

 

397,955

 

 

(83,506

)

-21.0

%

Subordinated debentures, net

 

6,924

 

 

6,905

 

 

19

 

0.28

%

Borrowings

 

21,000

 

 

-

 

 

21,000

 

100.00

%

Other liabilities

 

1,504

 

 

2,134

 

 

(630

)

-29.5

%

Total liabilities

 

343,877

 

 

406,994

 

 

(63,117

)

-15.5

%

Equity

 

29,290

 

 

37,629

 

 

(8,339

)

-22.2

%

Total Liabilities and Equity

$

373,167

 

$

444,623

 

$

(71,456

)

-16.1

%

 

Net loans to deposits

 

54.09

%

 

47.90

%

Allowance for loan losses to total loans

 

1.77

%

 

1.58

%

DDA deposits to total deposits

 

33.06

%

 

24.42

%

Tangible book value per share

$

27.12

 

$

34.22

 

Summary Income Statement

(dollars in thousands)

 

 

 

 

 

 

 

 

 

Three months ended September 30,

Nine months ended September 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Interest and fees on loans and investments

$

2,999

 

$

4,224

 

$

9,247

 

$

11,410

 

Interest expense

 

263

 

 

330

 

 

733

 

 

1,068

 

Net interest income

 

2,736

 

 

3,894

 

 

8,514

 

 

10,342

 

Provision for loan losses

 

-

 

 

-

 

 

-

 

 

-

 

Net interest income after provision

 

2,736

 

 

3,894

 

 

8,514

 

 

10,342

 

Noninterest income

 

221

 

 

226

 

 

804

 

 

739

 

Noninterest expense

 

2,542

 

 

2,362

 

 

7,711

 

 

6,735

 

Pre-tax income

 

415

 

 

1,758

 

 

1,607

 

 

4,346

 

Provision for income taxes

 

97

 

 

459

 

 

390

 

 

1,103

 

Net income

$

318

 

$

1,299

 

$

1,217

 

$

3,243

 

 

Return on average equity

 

4.07

%

 

13.92

%

 

4.88

%

 

11.61

%

Return on average assets

 

0.33

%

 

1.17

%

 

0.40

%

 

1.03

%

Net interest margin

 

3.06

%

 

3.73

%

 

2.97

%

 

3.47

%

Efficiency ratio

 

85.96

%

 

57.33

%

 

82.75

%

 

60.78

%

 

Contacts

Jeffrey Sumpter – President and Chief Executive Officer

Phone: (503) 212-3107

John Lende – Executive Vice President and Chief Financial Officer

Phone: (503) 212-3141

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.