July 13, 2011

Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported earnings of $2.3 million for the six months ended June 30, 2011, an increase of 15.6% over the same period last year. Earnings per diluted share were $2.56, an increase of 9.4% over the same period last year. Earnings for the second quarter of 2011 were $1.3 million, an increase of 30.6% from the first quarter of 2011 and 30.7% over the same quarter last year. The increase in net income year over year was due primarily to an increase in noninterest income and a reduction in provision for loan losses. Net interest income totaled $8.4 million, down 1.6% over the same period last year, due primarily to continued pressure on the net interest margin. Net interest margin, on a tax-equivalent basis, was 3.57% for the first six months of 2011, declining from 4.02% for the same period last year. Provisions for loan losses totaled $325,000 for the first six months of 2011, compared to $1.1 million for the same period in 2010. Noninterest income was $2.9 million, up $433,000 or 17.8% year over year, due primarily to increased service charges on deposit accounts, and increases in earnings from financial services. Noninterest expenses increased 9.7% 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 June 30, 2011 were $537.9 million, an increase of $50.1 million or 10.3% over the same period last year. Total loans outstanding as of June 30, 2011 were $328.8 million, up $32.3 million or 10.9% over the same period last year. Loan growth was funded by strong growth in core deposits, as total deposits increased $50.3 million, totaling $473.4 million at June 30, 2011. At June 30, 2011, the company's allowance for credit losses totaled $6.4 million, or 1.96% of total loans. Nonperforming loans totaled 1.84% of total loans as of June 30, 2011, decreasing from 1.98% at June 30, 2010, while net charge-offs for the first six months of 2011 were 0.11% of average loans, unchanged 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. "2011 is shaping up to be another successful year for LNB", stated President and CEO Robert A. Schick. "While the national economy struggles to gain any sort of sustained growth, we experienced continued residential mortgage, consumer and commercial/agricultural loan demand, without sacrificing credit quality." 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. Subsidiaries of The Lyons National Bank are Lyons Realty Associates Corp. and Lyons Life Agency, Inc