Lyons Bancorp, Inc., the parent financial holding company of The Lyons National Bank (LNB), reported second quarter 2022 earnings of $1.16 per common share as compared to $0.92 per common share reported for the same period last year. On a contiguous quarter basis, earnings per common share were up 3.5%. Continued balance sheet growth drove much of the increase in earnings. At June 30, 2022, assets totaled $1.7 billion, a 7.5% increase from the $1.58 billion reported at June 30, 2021. Driving asset growth was an almost 16% increase in loans. On June 30, 2022, loans totaled $1.23 billion, compared to $1.06 billion on June 30, 2021. Deposits increased to $1.5 billion on June 30, 2022, compared to $1.4 billion at June 30, 2021.
In addition to balance sheet growth, the Bank increased its net interest margin to 3.07% as of June 30, 2022 from 2.89% at June 30, 2021. Net interest margin is the difference between the amount of revenue it generates from its assets, namely loan and investments, and expenses it pays on deposits. Furthermore, the Bank improved its efficiency ratio at June 30, 2022, to 62.98% from 74.63% at June 30, 2021. The efficiency ratio calculates how much of each dollar earned is spent making that dollar. “The Bank team was again on its game,” said Robert A. Schick, Board Chairman. “It’s not getting easier; rather they remained focused.”
For the first six months of 2022, the Bank’s return on average shareholder equity was 16% compared to 12% for the first six months of 2021. Moreover, the previously reported dividend increase resulted in a total of $0.68 per common share being paid in this year’s first six months as compared to $0.62 for the same period last year.
When compared to peers, all asset quality measurements remained excellent. Even so, the Bank set aside an additional $1 million in its provision for possible loan losses. Referring to the provision increase, Schick noted, “It’s our conservative DNA.”
At the Company’s annual shareholder meeting in June, shareholders approved increasing the number of authorized shares to 15 million from 7.5 million and elected Case Marshall, Kaye Stone-Gansz, Joseph Bartolotta and Dale Hunt each to a three-year term.