Lewis & Clark Bancorp Announces 2021 First Quarter Results
Lewis & Clark Bancorp (OTC Pink: LWCL) announces 2021 first quarter 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 reflects the Lewis & Clark Bancorp consolidated summary balance sheet for both periods presented, and the current period summary income statement in this release reflects Lewis & Clark Bancorp consolidated, while the comparative prior year period is 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 $910,000 for the three months ended March 31, 2021, an increase of $784,000 compared to $126,000 for the same period last year. Earnings per share were $0.81 for the current year quarter, compared to $0.11 for the prior year quarter.
The increased earnings in the current year quarter were due to an increase in both net interest income and noninterest income and decreases in both the provision for loan losses and noninterest expense, partially offset by an increase in 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 and a decrease in interest expense as a result of Management's decision to lower the rates paid on deposits to reflect current market conditions, partially offset by a decline in interest earned on investments and interest earning cash balances. 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 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 decrease in noninterest expense was due to a reduction in overall salaries and employee benefits, data processing, intangible amortization, and travel occupancy expense. The increase in the provision for income taxes was due to increased pre-tax earnings compared to the prior year period.
Jeffrey Sumpter, President and CEO commented, "We are pleased to report increased first quarter earnings highlighted by increases in total revenue and a decrease in expenses compared to the prior year period, as well as continued asset growth through the first quarter of 2021. We are also pleased to announce 20 consecutive quarters of shareholder dividends." Sumpter continued, "Although we entered the new year with the same economic uncertainty that we faced in 2020, we are cautiously optimistic that conditions will improve as we move through the remainder of 2021, and that we are well positioned with a strong balance sheet and disciplined underwriting."
As of March 31, 2021, total consolidated assets were $425.1 million, an increase of $78.8 million, or 22.8%, compared to December 31, 2020. This increase was primarily due to increases in cash, gross loans, and total deposits, partially offset by a decline in borrowings compared to the balances reported at December 31, 2020. Cash increased by $54.2 million, primarily due to an increase in total deposits, partially offset by loan originations and the repayment of borrowings. Total gross loans increased $22.8 million substantially due to originating $42.9 million in SBA Paycheck Protection Program (PPP) Loans partially offset by $20.8 million in forgiveness related to existing PPP loans. Total deposits increased $84.7 million primarily due to increases in noninterest-bearing and interest-bearing demand deposits, related to the PPP loans, as well as money market and savings deposits, partially offset by a decline in time deposits. The decrease in time deposits is due to depositor's preference to hold their balances in liquid accounts as well as adjusting deposit rates to reflect current market conditions and allowing higher rate deposits to transition out. Borrowings decreased $5.9 million due to the repayment of funding provided through the Federal Reserve's Paycheck Protection Program Liquidity Facility. Shareholders' equity totaled $36.8 million at March 31, 2021, a decrease of $32,000, compared to $36.9 million at December 31, 2020. The decrease was substantially due to the Company repurchasing $864,000 of stock during the current year period related to the Company's share repurchase program, and shareholder dividends totaling $85,000, partially offset by earnings of $910,000.
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.
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