Business
Lewis & Clark Bancorp announces 2023 Fourth Quarter and Year-to-Date Results
Lewis & Clark Bancorp announces 2023 Fourth Quarter and Year-to-Date Results.
About this update from Lewis & Clark Bancorp
[{"type":"text","content":"\nLewis & Clark Bancorp (OTC Pink: LWCL) announces 2023 fourth-quarter and year-to-date consolidated results. Quarter-to-date net income totaled $191,000 for the three months ended December 31, 2023, compared to net income for the same period last year of $617,000. Earnings per share were $0.18 for the current-year quarter, compared to $0.57 for the prior-year quarter.\n\n\nInvestment Securities\n\n\nThe full-year 2023 net loss was substantially due to a $3.2 million pre-tax loss on the sale of investment securities. In response to the rapid and unprecedented increase in market interest rates and resulting negative net interest margin earned on the investment portfolio, Management effected the sale of $72.9 million (amortized cost) of fixed-rate investment securities. The proceeds from the sale of investments totaled $69.7 million, resulting in a $3.2 million pre-tax loss. The bulk of the proceeds from this sale were reinvested into higher-yielding investment securities, with the remainder being held in interest-bearing cash balances. This sale better positioned the Company’s balance sheet in three ways: increased earnings going forward, enhanced on-balance-sheet liquidity, and a more flexible interest-rate risk position.\n\n\nThe weighted-average net yield of the securities sold was 0.62%, compared to the weighted-average net yield of the replacement securities of 6.09%, while the interest-bearing cash balance is currently earning 5.38%. This repositioning provides a significant increase in earnings on the $69.7 million in sale proceeds. As of December 31, 2023, the Company still holds $81.0 million of investment securities currently yielding a weighted-average 1.11%.\n\n\nIncome Statement\n\n\nThe decreased earnings in the current-year quarter were due to a decrease in net interest income, a decrease in the recapture of credit losses, and an increase in noninterest expense, partially offset by an in increase in noninterest income and 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 an increase in interest expense as a result of increased rates paid on deposits and interest expense on borrowings, partially offset by an increase in earnings from investments and interest-bearing cash. Net interest margin was 2.62% for the current-year q...