February 13, 2024

As a result of year-over-year growth in all types of loans, commercial, agricultural and consumer, Lyons Bancorp reported higher earnings for 2023. At December 31, 2023, loans totaled $1.38 billion as compared to $1.30 billion at December 31, 2022. The growth in loans drove 2023 earnings to $17.4 million from $17.0 million reported in 2022. On a per share basis, 2023 earnings were $4.90 compared to $4.86 for 2022. The credit quality of the Bank's loan portfolio remains stellar. Loans charged off in 2023 totaled only $301 thousand or 0.02%, in line with the $324 thousand charged off in 2022, or 0.03%. Non-performing loans were also negligible at the end of 2023, totaling 0.25% as compared to 0.27% at the end of 2022.

While many banks experienced an outflow of deposits in 2023, Lyons' deposits were $1.627 billion at December 31, 2023, consistent with the prior yearend of $1.623 billion.

At December 31, 2023, shareholder equity grew to $141 million from $127 million at the end of 2022.  The growth in equity increased the Bank's Tier 1 leverage ratio to 7.76% at December 31, 2023, from 7.43% at December 31, 2022. With a sense that the Federal Reserve Bank has paused in its persistent increases in short-term interest rates, the Bank's tangible shareholders' equity increased to $104 million at December 31, 2023, from $87 million at December 31, 2022.

The Bank's 2023 lower Net Interest Margin (NIM) of 2.68%, as compared to 3.10% for 2022, reduced its 2023 Return on Average Equity (ROAE) to 18.39% from 18.53% in 2022. Its Return on Average Assets (ROAA) also fell. In 2023, it was 0.95% as compared to 1.01% in 2022. The Bank's Efficiency Ratio ticked up slightly to 62.36% from 60.72% in 2022. The efficiency ratio measures the amount of each dollar spent to raise that dollar.

In October of 2023, The Bank's Board of Directors declared a special one-time cash dividend of $0.07 per common share. That dividend was paid in December of 2023.

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; Jordan in Onondaga County; Geneva, Canandaigua and Farmington in Ontario County; Waterloo in Seneca County, Penn Yan in Yates County, Perinton in Monroe County and Auburn in Cayuga County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp.