January 30, 2012
Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported earnings of $5.1 million for the year ended December 31, 2011, an increase of 23% over the same period last year. Earnings per diluted share were $5.64, an increase of 16% over the same period last year.
The increase in net income year over year was due primarily to increases in net interest income and noninterest income and a reduction in provision for loan losses. Net interest income totaled $17.6 million, up 3% over the same period last year, due primarily to growth in earning assets. Net interest margin, on a tax-equivalent basis, was 3.63% for the year ended December 31, 2011, declining from 3.87% for the same period last year.
Provisions for credit losses in 2011 totaled $965,000, compared to $2.4 million for the same period in 2010, as the credit quality of loan portfolio continued to improve. At December 31, 2011, the company's allowance for credit losses totaled $7.0 million, or 1.94% of total loans. Nonperforming loans totaled 1.65% of total loans as of December 31, 2011, decreasing from 1.79% at December 31, 2010, while net charge-offs during 2011 were 0.12% of average loans, decreasing eighteen basis points from the prior year. Each of these indicators helped support the level of the company's allowance for credit losses, and the subsequent reduction in provision expense, and continues to compare favorably to national averages published by the Federal Reserve.
Noninterest income was $6.0 million, up $865,000 or 17% year over year, due primarily to increased gains on sale of loans and other assets, as well as increases in earnings from financial services and service charges on deposit accounts. Noninterest expenses increased 8% year over year, due primarily to the opening of the company's newest branch office in June 2010, located in Seneca County.
Total assets as of December 31, 2011 were $555.5 million, an increase of $41.6 million or 8% over the same period last year. Total loans outstanding as of December 31, 2011 were $360.0 million, up $47.3 million or 15% over the same period last year. Loan growth was funded by strong growth in core deposits, as total deposits increased $37.0 million, totaling $461.0 million at December 31, 2011.
"Our 2011 record earnings of $5.1 million represent the 17th consecutive time we have reported higher year-over-year dollar earnings", stated President and CEO Robert A. Schick. "This is an outstanding feat in its own right, but to accomplish it given the economic and industry malaise of the past few years makes it even more noteworthy and a testimony to our hometown banking focus."
Lyons Bancorp, Inc. is the 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; Jordon in Onondaga County; Geneva in Ontario County; Penn Yan in Yates County; and Waterloo in Seneca County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp. For more information visit us online at www.bankwithlnb.com.