April 8, 2021

Lyons Bancorp, Inc., the parent company of The Lyons National Bank (LNB), reported that first quarter 2021 earnings were $0.82 per common share as compared to $0.71 that was reported for the same period last year. Substantial balance sheet growth was the main driver of the increase in earnings. Assets on March 31, totaled $1.5 billion as compared to $1.2 billion at the end of March 2020. Deposits on March 31, 2021, were $1.4 billion as compared to $1.1 billion on March 31, 2020. Passage of the two federal stimulus packages was the main thrust behind the Bank's balance sheet growth. "Banks were intermediaries for the federal government to get money in the hands of individual and small businesses," said Robert A. Schick, Chairman and President of Lyons Bancorp. "Because of lockdowns and uncertainty a significant percentage of the stimulus funds was not spent and remained in our customers' accounts. We were and still are aggressive in helping our business customers obtain Paycheck Protection Program (PPP) loans."

The Bank did a record amount of residential mortgage originations in the last nine months of 2020 and again in the first three months of 2021 due to record low interest rates

"While the federal stimulus programs certainly were instrumental in the growth of the Bank, we continue to increase our market share," said Thomas Kime, President and CEO of The Lyons National Bank. "In 2020, we recorded our second best year in terms of attracting new customers to the Bank."

For the first three months of 2021, the Bank added $375,000 to its loan loss reserves. Loans charged off in the first quarter were a mere $22,000. Loans not performing in accordance with their original terms totaled slightly more than $4 million (total loans on 3/31/21 were $1.1 billion), an increase of approximately $1 million from the end of the first quarter in 2020. Both of these asset quality benchmarks compare quite favorably to industry standards. The continued low interest rates environment did negatively affect the Bank's return on average assets (ROAA). At March 31, 2021, the Bank's ROAA was 0.74% versus 0.80% at the end of the first quarter last year. The growth in earnings had the opposite effect on the Bank's return on average equity (ROAE). At March 31, 2021, the Bank's ROAE was 11.40% as compared to 10.56% at March 31, 2020. 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.