Lyons Bancorp, Inc. Reports Third Quarter Earnings; Assets Exceed $800 Million
Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported net income available to shareholders of $1.8 million or $1.16 per diluted share for the quarter ended September 30, 2014, unchanged from the prior quarter.
Total assets for Lyons Bancorp, Inc. were $804 million at September 30, 2014, an increase of $29 million from June 30, 2014. Balance sheet growth, primarily in commercial loans, was funded by strong core deposit growth across most of the Company’s newer markets. Asset quality indicators continue to show positive results, with net charge-offs to average loans of just 0.01% during the third quarter of 2014, and nonperforming loans to total loans of 0.68% at September 30, 2014, a decrease from second quarter.
“The continuation of historically low interest rates continues to pose a challenge for the banking industry,” stated President and CEO Robert A. Schick. “As older, higher yielding loans and investments either mature or are paid off, they are being replaced by lower yielding new loans and investments, further reducing the net interest margin of banks. Our strong year-to-date asset growth of approximately $70 million, driven by the efforts of our employees, has partially offset the decline in our margin.”
Net interest income totaled $5.9 million, up 3% compared to last quarter, even as the Company continued to experience modest pressure on its net interest margin. Noninterest income increased 5% quarter over quarter, due primarily to increased service charges on deposit accounts and mortgage servicing rights. Gains on sales of loans totaled $194,000, down 23% from last quarter, reflecting lower sales of commercial loans during the third quarter. Noninterest expense increased 4% quarter over quarter, due primarily to expenses related to the opening of the Company’s Canandaigua location, as well as to expenses incurred for upgraded software systems.
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 and Canandaigua in Ontario County; Penn Yan in Yates County; and Waterloo in Seneca County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp.