Lewis & Clark Bancorp - LWCL STOCK NEWS

Lewis & Clark Bancorp announces Q2 2023 results with a net loss of $2.7 million, compared to net income of $515 thousand in the same period last year. Loss per share was ($2.51), compared to $0.48 in the prior-year quarter. The net loss was due to a $3.2 million pre-tax loss on the sale of investment securities. The company sold $72.9 million of fixed-rate investment securities, resulting in a $3.2 million loss. However, the sale improved the company's balance sheet by increasing earnings, enhancing liquidity, and reducing interest-rate risk. The weighted-average net yield of the sold securities was 0.62%, while the replacement securities and interest-bearing cash balances had a combined weighted-average net yield of 5.66%. The company still holds $77.5 million of investment securities yielding a weighted-average 1.11%. The decrease in earnings was also attributed to a decrease in net interest income and an increase in loss on sale of securities. Strategic partnerships are performing well and expected to contribute meaningfully to net income. Total consolidated assets increased to $365.3 million, primarily due to increases in cash and borrowings, partially offset by decreases in investment securities, gross loans, and total deposits. Shareholders' equity decreased to $30.0 million due to the net loss and dividends, partially offset by a decrease in unrealized losses on investment securities.