Lyons Bancorp, Inc. Reports 24% Increase in Earnings
Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported earnings of $4.7 million for the nine months ended September 30, 2012, an increase of 24% over the same period last year. Earnings per diluted share were $3.29, an increase of 18% over the same period last year. The Company raised $5.0 million in a successful common stock offering late in the second quarter of 2012.
The increase in net income year over year was due primarily to increases in net interest income and noninterest income and a reduction in provision for loan losses. Net interest income totaled $14.4 million, up 11% over the same period last year, due primarily to growth in earning assets. Net interest margin, on a tax-equivalent basis, was 3.46% for the nine months ended September 30, 2012, down fifteen basis points, or 4.2% compared to the same period last year.
During the first nine months of 2012, there were no provisions for loan losses made, compared to $835,000 for the same period in 2011, as credit quality in the loan portfolio continued to improve. At September 30, 2012, the company’s allowance for credit losses totaled $7.0 million, or 1.64% of total loans. Nonperforming loans totaled 1.07% of total loans as of September 30, 2012, decreasing from 1.65% at December 31, 2011. Net charge-offs to total loans were 0.01% during the first nine months of 2012, compared to 0.12% for the same period last year. Each of these indicators helped support the level of the company’s allowance for credit losses, and the subsequent reduction in provision expense, and continues to compare favorably to national averages published by the Federal Reserve.
Noninterest income, excluding gains on sales of securities, was $5.1 million for the first nine months of 2012, up $618,000 or 14% from the same period last year, due primarily to increased gains on sale of residential loans, as well as increases in loan servicing fees and cardholder fees. Noninterest expenses increased 11% year over year, due primarily to an increase in salaries, benefits and advertising expenses.
Total assets as of September 30, 2012 were $656.3 million, an increase of $115.9 million or 21% over the same period last year. Total loans outstanding as of September 30, 2012 were $424.1 million, up $81.7 million or 24% over the same period last year. Loan growth was funded by strong growth in core deposits, as total deposits increased $110.1 million, totaling $584.2 million at September 30, 2012.
“Our brand of personalized, one-to-one hometown banking continues to resonate across the spectrum of our franchise”, stated President and CEO Robert A. Schick. “Over and over again, we hear from new as well as existing customers that “this is the type of banking relationship” they are looking for.”
Lyons Bancorp, Inc. is the holding company for The Lyons National Bank. The Lyons National Bank is a community bank with offices in Lyons, Clyde, Macedon, Newark, Ontario, and Wolcott in Wayne County; Jordan in Onondaga County; Geneva in Ontario County; Penn Yan in Yates County; and Waterloo in Seneca County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp.