Lyons Bancorp, Inc. Reports Second Quarter 2016 Earnings
Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported net income available to shareholders of $3.9 million or $1.24 per diluted share for the six months ended June 30, 2016, an increase of 9% from the same time last year. Earnings for the quarter ended June 30, 2016 were $2.2 million, an increase of 22% over the first quarter 2016.
Total assets for Lyons Bancorp, Inc. were $928 million at June 30, 2016, an increase of $91 million year over year. Balance sheet growth, primarily in loans, investments and cash, was funded by core deposit growth across most of the Company’s branch network, including approximately $45 million in deposit growth attributed to the newer markets of Canandaigua and Perinton. Asset quality indicators continue to show positive results, as the ratio of nonperforming loans to total loans decreased to 0.60% at June 30, 2016, compared to 0.66% at March 31, 2016 and 0.74% at June 30, 2015.
“While year-over-year assets grew nicely, we consciously reduced the size of our balance sheet in the second quarter, letting some municipal deposits run off as well as matching securities,” stated President and CEO Robert A. Schick. “We replaced some of the securities with loans that generate higher returns. Subsequently, all of our key earnings ratios improved. Most importantly, we increased our earnings per share.”
Net interest income for the six months ended June 30, 2016 totaled $13.7 million, up 10% compared to the same time last year, while the Company’s tax equivalent net interest margin decreased eight basis points to 3.28%. Noninterest income increased 4% compared to the first six months of 2015, due primarily to increased cardholder fee income. Noninterest expense for the six months ended June 30, 2016 increased 12% compared to the same time last year, due primarily to higher salary and benefit expenses as well as higher occupancy expenses, due in part to the opening of our new Perinton office, as well as the opening of our new Operations Center in Geneva.