Lyons Bancorp, Inc. Reports 56% Increase in Earnings
Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported earnings of $1.6 million for the quarter ended March 31, 2012, an increase of 56% over the same period last year. Earnings per diluted share were $1.15, an increase of 55% over the same period last year.
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 $4.6 million, up 12% over the same period last year, due primarily to growth in earning assets. Net interest margin, on a tax-equivalent basis, was 3.62% for the quarter ended March 31, 2012, essentially flat as compared to the same period last year.
During the first quarter of 2012, there were no provisions for loan losses made, compared to $195,000 for the same period in 2011, as credit quality of loan portfolio continued to improve. At March 31, 2012, the company’s allowance for credit losses totaled $7.0 million, or 1.87% of total loans. Nonperforming loans totaled 1.55% of total loans as of March 31, 2012, decreasing from 1.65% at December 31, 2011. There was a small net recovery recorded for the first quarter of 2012, compared to net charge-offs to total loans of 0.03% for the same quarter 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 $1.5 million for the first quarter of 2012, up $214,000 or 16% 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 ATM interchange fees. Noninterest expenses increased 8% year over year, due primarily to an increase in salaries and benefits, data processing and advertising.
Total assets as of March 31, 2012 were $608.4 million, an increase of $80.6 million or 15% over the same period last year. Total loans outstanding as of March 31, 2012 were $374.2 million, up $61.5 million or 20% over the same period last year. Loan growth was funded by strong growth in core deposits, as total deposits increased $73.3 million, totaling $537.3 million at March 31, 2012.
“It’s no secret that we have become more aggressive in promoting our brand of personal touch hometown banking“, stated President and CEO Robert A. Schick. “It’s obvious from these results it’s a brand more people want.”
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.