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CORRECTING and REPLACING Lewis & Clark Bancorp Announces 2022 Third Quarter and Year to Date Results
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OREGON CITY, Ore.--(BUSINESS WIRE)--
Second paragraph, seventh sentence of release dated Nov. 14, 2022, should read: These include infrastructure and channel partnership development to support banking-as-a-service, lending platforms, and payments; automation efforts to support scale; and overall, back-office operational efficiencies.
The updated release reads:
LEWIS & CLARK BANCORP ANNOUNCES 2022 THIRD QUARTER AND YEAR TO DATE RESULTS
Lewis & 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.
The 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, 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 compared to the prior year period.
Year to date net income totaled $1,217,000, or $1.13 per share, compared to $3,243,000, or $2.94 per share for the same period last year. The decreased earnings in the current year period 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. Except for noninterest income, the decreased earnings for the year-to-date period are substantially the same as those for the current year quarter as previously discussed. The increase in noninterest income was due to increases in both earnings from cash surrender value of life insurance and gains on equity securities compared to the prior year period, partially offset by a decline in proceeds from life insurance received in the prior year period.
Jeffrey Sumpter, President and CEO, commented, “Although our quarterly and year to date earnings are less than those reported in the prior year periods, they are in line with our expectations given the many and previously announced strategic investment and growth initiatives that are now in full implementation mode.” Sumpter added, “We continue to move forward with these initiatives which are designed to augment and diversify revenue, ensure capacity to scale, and improve overall efficiencies as we move forward into the coming years. Our balance sheet is well positioned to accommodate anticipated loan and deposit growth arising from the several strategic partnerships that have recently gone live or will go live over the next two quarters. We are also pleased to report that we have paid twenty-six consecutive quarters of shareholder dividends.”
As of September 30, 2022, total consolidated assets were $373.2 million, a decrease of $71.5 million, or 16.1%, compared to December 31, 2021, primarily due to decreases in cash, investment securities, gross loans, and total deposits, partially offset by an increase in other assets and borrowings. Investment securities decreased by $13.6 million substantially due to a $12.8 million increase in unrealized losses. Gross loans decreased by $20.5 million primarily due to principal reductions and payoffs exceeding new originations. Total deposits decreased $83.5 million, which was expected given the increased growth in the prior year related to the deposits generated from PPP loans. Total other assets increased by $3.6 million due to an increase in deferred taxes related to unrealized losses on investment securities. Shareholders’ equity totaled $29.3 million at September 30, 2022, a decrease of $8.3 million, compared to $37.6 million at December 31, 2021. The decrease was due to a $9.3 million increase in unrealized losses on investment securities, and shareholder dividends totaling $241,000, partially offset by earnings of $1,217,000.
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—whether in our local geographic footprint within Oregon and SW Washington or through select channel partnerships nationally—we believe that being an integral part of the community we serve helps promote both growth and success for all stakeholders.
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.
