Lyons Bancorp, Inc., the parent financial holding company of The Lyons National Bank (LNB), reported third quarter 2022 earnings of $1.24 per common share as compared to $1.01 per common share reported for the same period last year. On a contiguous quarter basis, earnings per common share were up 7.0%. Continued balance sheet growth drove much of the increase in earnings. At September 30, 2022, assets totaled $1.73 billion, a 5% increase from the $1.64 billion reported at September 30, 2021. Driving asset growth was an almost 17% increase in loans. On September 30, 2022, loans totaled $1.26 billion, compared to $1.09 billion on September 30, 2021. Deposits increased to $1.55 billion on September 30, 2022, compared to $1.49 billion at September 30, 2021.
In addition to balance sheet growth, increased earnings were supported by a higher net interest margin (NIM). At September 30, 2022, the Bank’s NIM was 3.13% as compared to 2.94% at September 30, 2021. Net interest margin is the difference between the amount of revenue the Bank generates from its assets, namely loans and investments, and expenses it pays on deposits. Also aiding the increase in earnings was the ability by the Bank to improve its operating efficiency. At September 30, 2022, the Bank’s efficiency ratio was 62.6% as compared to 74.5% at September 30, 2021. The efficiency ratio calculates how much of each dollar earned is spent making that dollar. “Our positive earnings momentum continues and should for the balance of this year,” said Robert A. Schick, Board Chairman. “The aggressive stance the Federal Reserve Bank is taking towards increasing interest rates, however, could result in economic storm clouds forming on the horizon.”
For the first nine months of 2022, the Bank’s return on average shareholder equity was 19% compared to 13% for the first nine months of 2021. The previously reported dividend increase resulted in a total of $1.03 per common share being declared in this year’s first nine months, the same amount as last year. In the third quarter of 2021, the Bank declared a special one-time dividend of $0.10 per common share.
All asset quality measurements remain excellent. Consistent with its conservative nature, the Bank set aside an additional $1 million in its provision for possible loan losses in the third quarter of 2022. Year to date, the Bank has added an additional $2 million in its reserve for loan losses and it now totals over $20 million.
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, Canandaigua and Farmington in Ontario County; Waterloo in Seneca County, Perinton in Monroe County and Auburn in Cayuga County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp.