January 22, 2015
Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported net income available to shareholders of $7.2 million or $4.58 per diluted share for the year ended December 31, 2014, an increase of 2% from the prior year. Net income for the quarter ended December 31, 2014 was $1.9 million or $1.18 per diluted share, up 2% quarter over quarter.
Total assets for Lyons Bancorp, Inc. were $807 million at December 31, 2014, an increase of $74 million year over year. Balance sheet growth throughout 2014, primarily in commercial loans, was funded by strong core deposit growth across most of the Company's branch network. Asset quality indicators continue to show positive results, with net charge-offs to average loans of just 0.06% during 2014, and nonperforming loans to total loans of 0.73% at December 31, 2014, a decrease from the same time last year.
"2014 was the 18th consecutive year we reported record earnings; which is a testimony to our hardworking and focused staff," stated President and CEO Robert A. Schick. "Going forward, even when considering the effort of our staff, we will be challenged to continue our string of record setting years. Lingering historically low interest rates are reducing net interest spreads at all financial institutions. Community banks like LNB generate more than 80% of their revenues from these spreads."
Net interest income for 2014 totaled $23.3 million, up 6% compared to last year, even as the Company continued to experience compression of its net interest margin. Noninterest income increased 16% year over year, due primarily to increased service charges on deposit accounts, cardholder fees and financial services income. Gains on sales of loans totaled $904,000, up 4% from last year, reflecting higher sales of guaranteed commercial loans during the year. Noninterest expense increased 7% year over year, due primarily to a full year of expenses relating to the opening of a full service office in Canandaigua, as well as higher assessments from the Federal Deposit Insurance Corporation.
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; Jordan in Onondaga County; Geneva and Canandaigua in Ontario County; Penn Yan in Yates County; and Waterloo in Seneca County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp.