Lyons Bancorp, Inc., the parent company of The Lyons National Bank (LNB), reported earnings of $3.3 million for the third quarter of 2021, an increase of 23% over the third quarter of 2020. On a per share basis, earnings were $1.01 versus $0.82 for 2020. For the first nine months of 2021 ending on September 30, earnings were $9.1 million or $2.75 per share versus $7.6 million or $2.30 per share for the same period in 2020. On a contiguous quarter basis, third quarter earnings increased 10% over second quarter earnings. All per share numbers are reported on a fully diluted basis. “Obviously, we are pleased with our third quarter and year-to-date financial performance,” said Robert A. Schick, Company Chairman and President. “Our great staff, led by Bank President and CEO Tom Kime, continues to add shareholder value and grow the Bank by providing top-quality customer service.”
Assets totaled $1.6 billion at the end of September, an increase of $259 million from September 30, 2020. The gain was driven by deposits which increased by $230 million or 18% to $1.5 billion. Loans totaled $1.1 billion, an increase of $70 million or 7% from last September. Loan quality remains excellent. Loans charged off totaled $162 thousand or 0.02% of total loans for the first nine months of 2021. That compares to $234 thousand or 0.03% of total loans charged off in the first nine months of 2020. Non-performing loans at September 30, 2021, totaled $3.7 million or 0.34% virtually the amount and percentage as last year. The Bank continues to maintain a very healthy loan loss reserve of almost $18 million or 1.63% of total loans. Unlike many other financial institutions, the Bank has not, and does not plan in the future to drawn down any portion of the precautionary loan loss reserves it set aside last year in a move related to the pandemic. “While the economy is in a better place this year than last, there are still unknowns we are facing,” said Schick “Therefore, our strategy is to allow our future loan growth to catch up with our elevated level of loan reserves.”
The Company’s return on average assets was 0.78% at September 30, 2021, versus 0.79% at September 30, 2020. The Company’s return on average equity increased to 12.55% at September 30, 2021, as compared to 10.96% at September 30, 2020. A continuation of historically low interest rates further compressed the Company’s net interest margin to 2.90% at September 30, 2021, from 3.19% at September 30, 2020. However, year-to-date net interest income rose by over $3.0 million or 10.5% from 2020 due to the strong growth in the balance sheet. The Company’s efficiency ratio through September 30, 2021, was 73.0% but is showing good progress due to cost control by dropping to below 72% in the third quarter.
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.