Business
Lewis & Clark Bancorp Announces 2021 Second Quarter and Year to Date Results
Lewis & Clark Bancorp Announces 2021 Second Quarter and Year to Date Results.
About this update from Lewis & Clark Bancorp
[{"type":"text","content":"\nLewis & Clark Bancorp (OTC Pink: LWCL) announces 2021 second quarter and year to date consolidated results. As a result of the Lewis & Clark Bancorp holding company reorganization and merger, effective as of July 31, 2020, the current period financial discussion reflects the Lewis & Clark Bancorp consolidated summary balance sheet for both periods presented. The current year summary income statements in this release reflect Lewis & Clark Bancorp consolidated, while the comparative prior year period is Lewis & Clark Bank only. As the results presented are substantially the performance of Lewis & Clark Bank, management believes there is not a material difference related to disclosing the current and comparative results as presented.\n\nQuarter to date net income totaled $1,034,000 for the three months ended June 30, 2021, an increase of $417,000 compared to $617,000 for the same period last year. Earnings per share were $0.94 for the current year quarter, compared to $0.54 for the prior year quarter.\n\nThe increased earnings in the current year quarter were due to an increase in net interest income and a decrease in the provision for loan losses, partially offset by a decrease in noninterest income and increases in both noninterest expense and the provision for income taxes compared to the same period one year ago. The increase in net interest income is due to an increase in interest and fees on loans primarily related to increased interest and fees earned from the SBA Paycheck Protection Program (PPP) loans and a decrease in interest expense on deposits due to Management’s decision to lower the cost of funds to reflect market conditions. These favorable variances were partially offset by an increase in interest expense on borrowings due to the subordinated debt issued in the prior year, and a decline in interest earned on investments due to liquidating the investment portfolio in the prior year. The decrease in the provision for loan losses was due to Management’s assessment of risk factors related to the ongoing COVID-19 pandemic and improved qualitative risk factors compared to the prior year. The decrease in noninterest income was due to a realized gain on the liquidation of the investment portfolio in the prior year quarter, partially offset by increases in interchange fees due to an inc...