Business
Lewis & Clark Bancorp Announces 2023 Second Quarter and Year-to-Date Results
Lewis & Clark Bancorp Announces 2023 Second Quarter and Year-to-Date Results.
About this update from Lewis & Clark Bancorp
[{"type":"text","content":"\nLewis & Clark Bancorp (OTC Pink: LWCL) announces 2023 second-quarter and year-to-date consolidated results. Quarter-to-date net loss totaled $2.7 million for the three months ended June 30, 2023, which included a $3.2 million pre-tax loss on the sale of investment securities. Net income for the same period last year was $515 thousand. Earnings (loss) per share were ($2.51) for the current-year quarter, compared to $0.48 for the prior-year quarter.\n\n\nInvestment Securities\n\n\nThe net loss during the current year was substantially due to a $3.2 million pre-tax loss on the sale of investment securities during the three months ended June 30, 2023. 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. A portion of the proceeds of this sale was reinvested into higher-yielding investment securities totaling $21.8 million, while the remaining $47.9 million was invested 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 6.18% and interest-bearing cash balances of 5.13%, for a combined weighted-average net yield of 5.66%. This repositioning provides a significant increase in earnings on the $69.7 million in sale proceeds. Note, however, that the Company still holds $77.5 million of investment securities currently yielding a weighted-average 1.11%. At this time, Management does not intend to sell all or a portion of these investment securities.\n\n\nIncome Statement\n\n\nThe decreased earnings in the current-year quarter were due to a decrease in net interest income and an increase in loss on sale of securities, partially offset by an in increase in noninterest income and decreases in both noninterest expense and the provision for income taxes compared to the same period one year ago. The decrease in net i...