Lewis & Clark Bancorp Announces 2022 First Quarter Results

Rhea-AI Summary

Lewis & Clark Bancorp (OTC Pink: LWCL) reported a first-quarter net income of $384,000 for Q1 2022, down $526,000 from $910,000 in Q1 2021. Earnings per share decreased to $0.36 from $0.81. The decline in earnings was attributed to lower net interest income, primarily from a decrease in Paycheck Protection Program (PPP) loan earnings, and an increase in noninterest expenses. Total consolidated assets decreased by 6.3% to $416.7 million, with a $22.7 million drop in total deposits. Shareholders' equity was $32.9 million, down $4.7 million from the previous quarter.

Positive

• Increased noninterest income due to higher interchange fees and gains on equity securities.
• Reduction in the provision for income taxes due to lower pre-tax earnings.
• Strategic initiatives aimed at future growth and strong earnings.

Negative

• Net income decreased by $526,000 year-over-year.
• Earnings per share dropped from $0.81 to $0.36.
• Net interest margin fell from 3.43% to 2.58%.
• Total assets decreased by $27.9 million, or 6.3%.
• Total deposits decreased by $22.7 million.

OREGON CITY, Ore.--(BUSINESS WIRE)-- 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	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220607006194/en/

Jeffrey Sumpter – President and Chief Executive Officer

Phone: (503) 212-3107

John Lende – Executive Vice President and Chief Financial Officer

Phone: (503) 212-3141

Source: Lewis & Clark Bancorp

FAQ

What were Lewis & Clark Bancorp's earnings for Q1 2022?

Lewis & Clark Bancorp reported a net income of $384,000 for Q1 2022.

How did earnings per share change for LWCL in Q1 2022?

Earnings per share decreased from $0.81 in Q1 2021 to $0.36 in Q1 2022.

What caused the decrease in net interest income for LWCL?

The decrease in net interest income was primarily due to lower earnings from Paycheck Protection Program (PPP) loans.

What was the status of total assets for Lewis & Clark Bancorp as of March 31, 2022?

Total consolidated assets were $416.7 million, a decrease of 6.3% from the previous quarter.

How much did total deposits decrease for LWCL in Q1 2022?

Total deposits decreased by $22.7 million in Q1 2022.