Business
Lewis & Clark Bancorp Announces 2022 Third Quarter and Year to Date Results
Lewis & Clark Bancorp Announces 2022 Third Quarter and Year to Date Results.
About this update from Lewis & Clark Bancorp
[{"type":"text","content":"\nLewis & 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.\n\nThe 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, (Baas) 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 compar...