Lewis & Clark Bancorp (OTC Pink: LWCL) announces 2022 first quarter consolidated results. Quarter to date net income totaled $384,000 for the three months ended March 31, 2022, a decrease of $526,000 compared to $910,000 for the same period last year. Earnings per share were $0.36 for the current year quarter, compared to $0.81 for the prior year quarter.
The decreased earnings in the current year quarter 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. 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 investment securities, and a decrease in interest expense due to lower rates paid on deposits, consistent with market conditions. The net interest margin was 2.58% for the current year quarter compared to 3.43% 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, professional fees, software license and maintenance, and bank service charges, partially offset by a decrease in intangible amortization. The increase in noninterest income was due to increases in interchange fees, earnings from cash surrender value of life insurance and realized gains on equity securities. The decrease in the provision for income taxes was due to a decrease in pre-tax earnings compared to the prior year period.
Jeffrey Sumpter, President and CEO, commented, “Our earnings are in-line with expectations given the many and previously announced strategic investment and growth initiatives we are working on for 2022.” Sumpter added, “These initiatives—ranging from process improvement and automation to banking-as-a-service and channel partnerships to building expanded operations and compliance capacity—will position Lewis & Clark Bancorp for a future of strong earnings and growth. We are also pleased to report that we have paid twenty-four consecutive quarters of shareholder dividends.”
As of March 31, 2022, total consolidated assets were $416.7 million, a decrease of $27.9 million, or 6.3%, compared to December 31, 2021, primarily due to decreases in cash, gross loans, and total deposits, partially offset by an increase in investment securities and other assets. Gross loans decreased by $3.8 million primarily due to principal reductions and payoffs exceeding new originations. Total deposits decreased $22.7 million, which was expected given the increased growth in the prior year related to the deposits generated from PPP loans. Investment securities increased by $17.9 million primarily due to deploying excess liquidity into short-term bonds to increase yield compared to holding cash. Total other assets increased by $3.4 million due to an increase in deferred taxes related to unrealized losses on investment securities and receivables balances. Shareholders’ equity totaled $32.9 million at March 31, 2022, a decrease of $4.7 million, compared to $37.6 million at December 31, 2021. The decrease was substantially due to a $4.9 million increase in unrealized losses on investment securities, and shareholder dividends totaling $80,000, partially offset by earnings of $384,000.
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 throughout Oregon and SW Washington, the Bank believes that being an integral part of the community it serves, helps promote both growth and success.
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) |
|||||||||||||||
March 31, 2022 |
December 31, 2021 |
$ Change |
% Change |
||||||||||||
ASSETS |
|||||||||||||||
Cash |
$ |
21,729 |
$ |
66,517 |
$ |
(44,788 |
) |
-67.3 |
% |
||||||
Equity Securities |
1,565 |
2,117 |
(552 |
) |
-26.1 |
% |
|||||||||
Investment Securities |
182,300 |
164,324 |
17,976 |
10.9 |
% |
||||||||||
Gross loans |
189,863 |
193,657 |
(3,794 |
) |
-2.0 |
% |
|||||||||
Allowance for loan losses |
(3,058 |
) |
(3,054 |
) |
(4 |
) |
0.1 |
% |
|||||||
Net loans |
186,805 |
190,603 |
(3,798 |
) |
-2.0 |
% |
|||||||||
Fixed Assets |
7,179 |
7,232 |
(53 |
) |
-0.7 |
% |
|||||||||
Other Assets |
17,143 |
13,830 |
3,313 |
24.0 |
% |
||||||||||
Total Assets |
$ |
416,721 |
$ |
444,623 |
$ |
(27,902 |
) |
-6.3 |
% |
||||||
LIABILITIES AND EQUITY |
|||||||||||||||
Deposits: |
|||||||||||||||
Noninterest-bearing |
$ |
94,556 |
$ |
97,189 |
$ |
(2,633 |
) |
-2.7 |
% |
||||||
Interest-bearing demand |
18,395 |
20,558 |
(2,163 |
) |
-10.5 |
% |
|||||||||
Money market and savings |
225,736 |
237,681 |
(11,945 |
) |
-5.0 |
% |
|||||||||
Time deposits |
36,539 |
42,527 |
(5,988 |
) |
-14.1 |
% |
|||||||||
Total deposits |
375,227 |
397,955 |
(22,728 |
) |
-5.7 |
% |
|||||||||
Subordinated debentures, net |
6,912 |
6,905 |
7 |
0.10 |
% |
||||||||||
Other liabilities |
1,625 |
2,134 |
(509 |
) |
-23.9 |
% |
|||||||||
Total liabilities |
383,764 |
406,994 |
(23,230 |
) |
-5.7 |
% |
|||||||||
Equity |
32,957 |
37,629 |
(4,672 |
) |
-12.4 |
% |
|||||||||
Total Liabilities and Equity |
$ |
416,721 |
$ |
444,623 |
$ |
(27,902 |
) |
-6.3 |
% |
||||||
Net loans to deposits |
49.78 |
% |
47.90 |
% |
|||||||||||
Allowance for loan losses to total loans |
1.61 |
% |
1.58 |
% |
|||||||||||
DDA deposits to total deposits |
25.20 |
% |
24.42 |
% |
|||||||||||
Tangible book value per share |
$ |
29.93 |
$ |
34.22 |
|||||||||||
Summary Income Statement |
||||||||
(dollars in thousands) |
||||||||
Three months ended March 31, |
||||||||
2022 |
2021 |
|||||||
Interest and fees on loans and investments |
$ |
2,911 |
$ |
3,496 |
||||
Interest expense |
243 |
360 |
||||||
Net interest income |
2,668 |
3,136 |
||||||
Provision for loan losses |
- |
- |
||||||
Net interest income after provision |
2,668 |
3,136 |
||||||
Noninterest income |
368 |
176 |
||||||
Noninterest expense |
2,531 |
2,080 |
||||||
Pre-tax income |
505 |
1,232 |
||||||
Provision for income taxes |
121 |
322 |
||||||
Net income |
$ |
384 |
$ |
910 |
||||
Return on average equity |
4.24 |
% |
9.83 |
% |
||||
Return on average assets |
0.35 |
% |
0.94 |
% |
||||
Net interest margin |
2.58 |
% |
3.43 |
% |
||||
Efficiency ratio |
83.36 |
% |
62.80 |
% |
||||
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