Lyons Bancorp Increases Reserves and Reports First Quarter 2020 Earnings
Canandaigua Clyde Geneva Jordan Lyons Macedon Newark Ontario Penn Yan Seneca County Wolcott Perinton Park Lyons (Main) Auburn (Downtown) Auburn (Grant Ave.), New York
Lyons Bancorp, Inc., the parent company of The Lyons National Bank (LNB), added an additional $1 million in reserves to its Allowance for Loan and Lease Loss account in the first quarter as a precautionary measure due to the coronavirus pandemic. The reserve account now stands at $12.5 million or 1.43% of outstanding loans. “The depth of economic impact caused by COVID-19 is unknown and will be for some time,” said Robert A. Schick, Chairman and CEO. “Accordingly, the Bank chose a prudent approach and added additional reserves to our already strong loan loss allowance. While we are consistently ranked among the top performing banks with regards to the quality of our loan portfolio, these unprecedented times call for extraordinary measures.” As a result of the action taken, Lyons Bancorp’s first quarter 2020 earnings were $2.29 million or $0.71 per diluted common share versus the $2.42 million or $0.75 per diluted common share reported for the first quarter of 2019.
On March 31, 2020, assets totaled $1.214 billion, a 10% increase from $1.104 billion at March 31, 2019. Loans grew year-over-year by 8% to $871 million on March 31, 2020. Deposits increased 6% to $1.064 billion on 3/31/20 compared to $1.006 billion one year ago.
Adding additional reserves to the loan loss allowance reduced both the Bank’s Return on Average Assets (ROAA) and Return on Average Equity (ROAE). At 3/31/20, the Bank’s ROAA was 0.80% versus 0.93% at 3/31/19. The Bank’s ROAE was 10.56% on 3/31/20 compared to 12.50% at the same time last year.
Loans charged off in the first quarter of 2020 totaled $152,000, two-hundredths of one percent of the Bank’s outstanding loans. Loans not performing in accordance with their original terms total slightly more than one-half of one percent of the Bank’s outstanding loans.
LNB continues to serve customers through drive-up windows at branches, by phone, by email, or by appointment, as circumstances permit, and robust online and mobile options offer convenient banking alternatives as we all practice social distancing.
Lyons Bancorp, Inc. is the financial 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; Penn Yan in Yates County; Jordan in Onondaga County; Geneva and Canandaigua in Ontario County (a branch office in Farmington is expected to open in mid-2020); Waterloo in Seneca County, Perinton in Monroe County and Auburn in Cayuga County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp.