Lewis & Clark Bancorp Announces 2020 Fourth Quarter and Year to Date Results
Lewis & Clark Bancorp (OTC Pink: LWCL) reported a net income of $734,000 for Q4 2020, an increase from $546,000 last year. Earnings per share rose to $0.65, up from $0.48. Year-to-date net income decreased to $1,796,000, or $1.58 per share, compared to $2,287,000, or $2.25 per share in the prior year. Total assets reached $346.5 million, up 22.9% year-over-year, primarily due to growth in PPP loans and deposits. Management indicated ongoing economic uncertainty but expressed confidence in the company's strong balance sheet and commitment to serving its communities.
- Q4 2020 net income increased to $734,000, from $546,000 in Q4 2019.
- Earnings per share for Q4 rose to $0.65, up from $0.48.
- Total assets increased by 22.9% to $346.5 million compared to the previous year.
- Total deposits rose by $49.7 million, influenced by PPP loans.
- Year-to-date net income declined to $1,796,000 from $2,287,000 the previous year.
- Year-to-date earnings per share decreased to $1.58 from $2.25.
- Increased provision for loan losses attributed to COVID-19 risk factors.
Lewis & Clark Bancorp (OTC Pink: LWCL) announces 2020 fourth quarter and year to date consolidated results. As a result of the Lewis & Clark Bancorp holding company reorganization and merger effective as of July 31, 2020, the current period financial discussion and summary balance sheet and income statement in this release reflect Lewis & Clark Bancorp consolidated, while the comparative prior year periods are Lewis & Clark Bank only. As the results presented are substantially the performance of Lewis & Clark Bank, management believes there is not a material difference related to disclosing the current and comparative results as presented.
Quarter to date net income totaled
The increased earnings in the current year quarter were due to an increase in noninterest income, and decreases in both noninterest expense, and the provision for income taxes, partially offset by a decrease in net interest income, compared to the same period one year ago. The increase in noninterest income was primarily due to an increase in interchange fees related to an increase in debit cards and a more favorable fee structure. The decrease in noninterest expense was due to declines in data processing, intangible amortization, travel, and occupancy expense, partially offset by an increase in compensation and employee benefits. The decrease in the provision for income taxes was due to both a state tax refund from final return for Clatsop Community Bank and also adjustments recorded in the prior year quarter related to nondeductible merger expenses. The decrease in net interest income is due to decreased interest and fees on loans and investments, partially offset by a decrease in interest expense as a result of Management’s decision to lower the rates paid on deposits to reflect current market conditions.
Year to date net income totaled
The decreased earnings in the current year period were due to an increase in the provision for loan losses and noninterest expense, partially offset by increases in both net interest income and noninterest income compared to the same period one year ago. The increased provision for loan losses was based on Management’s assessment of risk factors related to the ongoing COVID-19 pandemic. The increase in noninterest expense was due to an increase in salaries and employee benefits due to an increase in staffing levels and a year of combined operations as a result of the merger with Clatsop Community Bank effective during the second quarter in the prior year period. In addition to this increase, data processing costs increased due to the core conversion in the first quarter of this year, as well as a full year of combined operations, and core deposit intangible amortization increased, primarily due to having a full year of amortization in the current year period. The increase in net interest income is due to an increase in interest and fees on loans, as well as a decrease in interest expense compared to the prior year period. The increase in noninterest income was due to realizing a gain on the liquidation of the investment portfolio, as well as increased interchange income as previously discussed.
Jeffrey Sumpter, President and CEO, commented, “Although it has been a challenging year, with unprecedented economic uncertainty, we are pleased to close the year with increased earnings during the fourth quarter and a strong balance sheet with more reserves, improved liquidity, and increased deposits. Sumpter continued, “As we transition into a new year, we expect that the economic uncertainty that we faced in 2020, will continue to be present in 2021. Our mission going forward, as it has been in the past, is to continue serving both our customers and the communities we serve to help navigate through the challenges that lie ahead.”
As of December 31, 2020, total consolidated assets were
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.
Summary Balance Sheet |
||||||||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|||||||||||||
December 31, 2020 |
December 31, 2019 |
$$ Change |
%% Change |
|||||||||||||
ASSETS |
||||||||||||||||
Cash |
$ |
73,171 |
|
$ |
49,084 |
|
$ |
24,087 |
|
|
49.1 |
% |
||||
Equity Securities |
|
702 |
|
|
715 |
|
|
(13 |
) |
|
-1.8 |
% |
||||
Investment Securities |
|
1,515 |
|
|
16,965 |
|
|
(15,450 |
) |
|
-91.1 |
% |
||||
Gross loans |
|
256,232 |
|
|
200,284 |
|
|
55,948 |
|
|
27.9 |
% |
||||
Allowance for loan losses |
|
(3,043 |
) |
|
(2,040 |
) |
|
(1,003 |
) |
|
49.2 |
% |
||||
Net loans |
|
253,189 |
|
|
198,244 |
|
|
54,945 |
|
|
27.7 |
% |
||||
Fixed Assets |
|
7,705 |
|
|
7,415 |
|
|
290 |
|
|
3.9 |
% |
||||
Other Assets |
|
10,221 |
|
|
9,536 |
|
|
685 |
|
|
7.2 |
% |
||||
Total Assets |
$ |
346,503 |
|
$ |
281,959 |
|
$ |
64,544 |
|
|
22.9 |
% |
||||
LIABILITIES AND EQUITY |
||||||||||||||||
Deposits: |
||||||||||||||||
Noninterest-bearing |
$ |
86,191 |
|
$ |
62,928 |
|
$ |
23,263 |
|
|
37.0 |
% |
||||
Interest-bearing demand |
|
16,791 |
|
|
7,805 |
|
|
8,986 |
|
|
115.1 |
% |
||||
Money market and savings |
|
149,915 |
|
|
121,683 |
|
|
28,232 |
|
|
23.2 |
% |
||||
Time deposits |
|
42,082 |
|
|
52,841 |
|
|
(10,759 |
) |
|
-20.4 |
% |
||||
Total deposits |
|
294,979 |
|
|
245,257 |
|
|
49,722 |
|
|
20.3 |
% |
||||
Borrowings |
|
5,873 |
|
|
- |
|
|
5,873 |
|
|
100.0 |
% |
||||
Long-term debt |
|
6,880 |
|
|
- |
|
|
6,880 |
|
|
100.0 |
% |
||||
Other liabilities |
|
1,680 |
|
|
993 |
|
|
687 |
|
|
69.2 |
% |
||||
Total liabilities |
|
309,412 |
|
|
246,250 |
|
|
63,162 |
|
|
25.6 |
% |
||||
Equity |
|
37,091 |
|
|
35,709 |
|
|
1,382 |
|
|
3.9 |
% |
||||
Total Liabilities and Equity |
$ |
346,503 |
|
$ |
281,959 |
|
$ |
64,544 |
|
|
22.9 |
% |
||||
Summary Income Statement |
||||||||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
||||||||
Three months ended December 31, |
Full year ended December 31, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Interest and fees on loans and investments |
$ |
3,193 |
|
$ |
3,413 |
|
$ |
12,699 |
|
$ |
12,493 |
|
||||
Interest expense |
|
375 |
|
|
534 |
|
|
1,523 |
|
|
2,116 |
|
||||
Net interest income |
|
2,818 |
|
|
2,879 |
|
|
11,176 |
|
|
10,377 |
|
||||
Provision for loan losses |
|
- |
|
|
- |
|
|
1,055 |
|
|
- |
|
||||
Net interest income after provision |
|
2,818 |
|
|
2,879 |
|
|
10,121 |
|
|
10,377 |
|
||||
Noninterest income |
|
219 |
|
|
144 |
|
|
957 |
|
|
471 |
|
||||
Noninterest expense |
|
2,087 |
|
|
2,202 |
|
|
8,715 |
|
|
7,658 |
|
||||
Pre-tax income |
|
950 |
|
|
821 |
|
|
2,363 |
|
|
3,190 |
|
||||
Provision for income taxes |
|
216 |
|
|
275 |
|
|
567 |
|
|
903 |
|
||||
Net income |
$ |
734 |
|
$ |
546 |
|
$ |
1,796 |
|
$ |
2,287 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210302006153/en/
FAQ
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