Lewis & Clark Bancorp Announces 2021 Third Quarter and Year to Date Results
Lewis & Clark Bancorp (OTC Pink: LWCL) announced strong growth in its 2021 Q3 results, reporting a net income of $1.3 million, a significant increase from $319,000 in Q3 2020. Year-to-date net income reached $3.2 million, up from $1.1 million last year, with earnings per share rising to $1.21 and $2.94 respectively. The increase in earnings was attributed to higher net interest income from PPP loans, decreased provision for loan losses, and growth in total assets to $427.3 million. However, continued economic uncertainties may impact future performance.
- Q3 net income increased by $980,000 year-over-year to $1,299,000.
- Year-to-date net income of $3,243,000 reflects a $2,181,000 improvement compared to last year.
- Earnings per share rose to $1.21 for Q3 and $2.94 year-to-date.
- Total consolidated assets grew 23.4% to $427.3 million since December 31, 2020.
- Total deposits increased by $85.6 million, driven by PPP loans and higher savings.
- Total gross loans decreased by $55.8 million due to PPP loan forgiveness.
- Increased provision for income taxes attributed to higher pre-tax earnings could pressure future profits.
- Loan demand has not yet returned to pre-pandemic levels, indicating potential future revenue challenges.
The increased earnings in the current year quarter were due to an increase in both net interest income and noninterest income, and a decrease in the provision for loan losses, partially offset by increases in both noninterest expense and the provision for income taxes compared to the same period one year ago. The increase in net interest income is due to an increase in interest and fees on loans primarily related to increased interest and fees earned from the SBA Paycheck Protection Program (PPP) loans and a decrease in interest expense on deposits due to lower cost of funds. These favorable variances were partially offset by an increase in interest expense on borrowings due to the subordinated debt issued in the prior year. The increase in noninterest income was due to an increase in both interchange fees and earnings from bank owned life insurance. The decrease in the provision for loan losses was due to Management’s assessment of risk factors related to the ongoing COVID-19 pandemic and improved qualitative risk factors compared to the prior year. The increase in noninterest expense was due to increases in salaries and employee benefits, data processing,
The increased earnings in the current year period were due to an increase in net interest income and a decrease in the provision for loan losses, partially offset by a decrease in noninterest income and increases in both noninterest expense and the provision for income taxes compared to the same period one year ago. The increase in net interest income is due to an increase in interest and fees on loans primarily related to increased interest and fees earned from the SBA Paycheck Protection Program (PPP) loans and a decrease in interest expense on deposits due to lower cost of funds. These favorable variances were partially offset by an increase in interest expense on borrowings due to the subordinated debt issued in the prior year, and a decrease in interest earned on interest bearing cash balances and investments. The decrease in the provision for loan losses was substantially the same as that for the current year quarter as previously discussed. The decrease in noninterest income was due to recording a gain on the liquidation of the securities portfolio in the prior year, partially offset by increases in interchange fees, earnings from bank owned life insurance, and unrealized gains on equity securities. The increase in noninterest expense was due to increases in salaries and employee benefits, occupancy expense,
As of
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Headquartered in
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Summary Balance Sheet |
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(dollars in thousands) (Unaudited) |
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$ Change |
% Change |
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ASSETS |
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Cash |
$ |
173,916 |
|
$ |
73,171 |
|
$ |
100,745 |
|
137.7 |
% |
||||
|
|
1,962 |
|
|
702 |
|
|
1,260 |
|
179.5 |
% |
||||
|
|
33,520 |
|
|
1,515 |
|
|
32,005 |
|
2112.5 |
% |
||||
Gross loans |
|
200,405 |
|
|
256,233 |
|
|
(55,828 |
) |
-21.8 |
% |
||||
Allowance for loan losses |
|
(3,054 |
) |
|
(3,043 |
) |
|
(11 |
) |
0.4 |
% |
||||
Net loans |
|
197,351 |
|
|
253,190 |
|
|
(55,839 |
) |
-22.1 |
% |
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Fixed Assets |
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7,248 |
|
|
7,210 |
|
|
38 |
|
0.5 |
% |
||||
Other Assets |
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13,272 |
|
|
10,510 |
|
|
2,762 |
|
26.3 |
% |
||||
Total Assets |
$ |
427,269 |
|
$ |
346,298 |
|
$ |
80,971 |
|
23.4 |
% |
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LIABILITIES AND EQUITY |
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Deposits: |
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Noninterest bearing |
$ |
108,265 |
|
$ |
86,191 |
|
$ |
22,074 |
|
25.6 |
% |
||||
Interest-bearing demand |
|
19,313 |
|
|
16,791 |
|
|
2,522 |
|
15.0 |
% |
||||
Money market and savings |
|
209,851 |
|
|
149,915 |
|
|
59,936 |
|
40.0 |
% |
||||
Time deposits |
|
43,188 |
|
|
42,082 |
|
|
1,106 |
|
2.6 |
% |
||||
Total deposits |
|
380,617 |
|
|
294,979 |
|
|
85,638 |
|
29.0 |
% |
||||
Subordinated debentures, net |
|
6,899 |
|
|
6,880 |
|
|
19 |
|
0.28 |
% |
||||
Borrowings |
|
- |
|
|
5,873 |
|
|
(5,873 |
) |
-100.00 |
% |
||||
Other liabilities |
|
1,777 |
|
|
1,690 |
|
|
87 |
|
5.1 |
% |
||||
Total liabilities |
|
389,293 |
|
|
309,422 |
|
|
79,871 |
|
25.8 |
% |
||||
Equity |
|
37,976 |
|
|
36,876 |
|
|
1,100 |
|
3.0 |
% |
||||
Total Liabilities and Equity |
$ |
427,269 |
|
$ |
346,298 |
|
$ |
80,971 |
|
23.4 |
% |
||||
Net loans to deposits |
|
51.85 |
% |
|
85.83 |
% |
|||||||||
Allowance for loan losses to total loans |
|
1.52 |
% |
|
1.19 |
% |
|||||||||
DDA deposits to total deposits |
|
28.44 |
% |
|
29.22 |
% |
|||||||||
Tangible book value per share |
$ |
33.46 |
|
$ |
31.42 |
|
Summary Income Statement |
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(dollars in thousands) (Unaudited) |
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Three months ended |
Nine months ended |
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|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
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Interest and fees on loans and investments |
$ |
4,224 |
|
$ |
3,121 |
|
$ |
11,410 |
|
$ |
9,490 |
|
||||
Interest expense |
|
330 |
|
|
299 |
|
|
1,068 |
|
|
1,148 |
|
||||
Net interest income |
|
3,894 |
|
|
2,822 |
|
|
10,342 |
|
|
8,342 |
|
||||
Provision for loan losses |
|
- |
|
|
428 |
|
|
- |
|
|
1,055 |
|
||||
Net interest income after provision |
|
3,894 |
|
|
2,394 |
|
|
10,342 |
|
|
7,287 |
|
||||
Noninterest income |
|
226 |
|
|
175 |
|
|
739 |
|
|
754 |
|
||||
Noninterest expense |
|
2,362 |
|
|
2,144 |
|
|
6,735 |
|
|
6,628 |
|
||||
Pre-tax income |
|
1,758 |
|
|
425 |
|
|
4,346 |
|
|
1,413 |
|
||||
Provision for income taxes |
|
459 |
|
|
106 |
|
|
1,103 |
|
|
351 |
|
||||
Net income |
$ |
1,299 |
|
$ |
319 |
|
$ |
3,243 |
|
$ |
1,062 |
|
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Return on average equity |
|
14.04 |
% |
|
3.51 |
% |
|
11.67 |
% |
|
3.92 |
% |
||||
Return on average assets |
|
1.18 |
% |
|
0.41 |
% |
|
1.02 |
% |
|
0.47 |
% |
||||
Net interest margin |
|
3.73 |
% |
|
3.85 |
% |
|
3.47 |
% |
|
3.95 |
% |
||||
Efficiency ratio |
|
57.33 |
% |
|
71.54 |
% |
|
60.78 |
% |
|
72.87 |
% |
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FAQ
What were Lewis & Clark Bancorp's Q3 2021 earnings results?
What is the earnings per share for LWCL in the latest report?
How much did total consolidated assets increase for LWCL in 2021?
What factors contributed to the increase in net income for Lewis & Clark Bancorp?