July 9, 2020

Lyons Bancorp, Inc., the parent company of The Lyons National Bank (LNB), added an additional $2.5 million in reserves to its Allowance for Loan and Lease Loss account in the second quarter as a precautionary measure due to the coronavirus pandemic. This is in addition to the $1 million it set aside in the first quarter of this year. The reserve account now stands at almost $15 million or 1.53% of outstanding loans. The approximate $3.5 million that the Bank has added to its loan loss reserves so far this year is nearly five times greater than the amount it set aside in the first six months of 2019.

"The story line remains the same, no one knows how long the 'tail' of the pandemic is," said Robert A. Schick, Chairman and CEO. "Accordingly, we continue along a prudent path of setting aside reserves and will do so throughout the remainder of this year. Currently, our growth and earnings power allows us to take this path. Our earnings did slip slightly as a result of our actions, but when all things are considered, we remain convinced our strategy is correct." For the first six months of 2020, Lyons Bancorp earned $1.48 per common share versus the $1.54 per share it reported in 2019. Both numbers are reported on a diluted basis.

On June 30, 2020, assets totaled $1.36 billion, an almost 20% increase from $1.14 billion at June 30, 2019. Led by loans made under the Paycheck Protection Program (PPP), the Bank's loan portfolio grew year-over-year by 20% to approximately $1 billion. Working with both its customer base and other area businesses, the Bank has processed over 1,200 PPP loans totaling in excess of $115 million. Deposits grew by the same percentage and totaled $1.2 billion on June 30, 2020.

Adding additional reserves to the loan loss allowance reduced both the Bank's Return on Average Assets (ROAA) and Return on Average Equity (ROAE). At 6/30/20, the Bank's ROAA was 0.78% versus 0.93% at 6/30/19. The Bank's ROAE was 11.0% on 6/30/20 compared to 12.5% at the same time last year.

Loans charged off in the first six months of 2020 totaled $195,000, two-hundredths of one percent of the Bank's outstanding loans. This compares to $255,000 or three-hundredths of one percent for the same time last year. Loans not performing in accordance with their original terms total approximately 0.37% of the Bank's outstanding loans, down from 0.62% at June 30, 2019.

The Bank's capital account grew 9% to $93 million at June 30, 2020, an increase of $7.5 million from June 30, 2019. The Bank will pay its regular quarterly cash dividend of $0.31 per common share to its shareholders on July 15, 2020. All of the Bank's branch lobbies are again open and welcoming customers.

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 and Canandaigua in Ontario County (a branch office in Farmington is expected to open later this summer); Waterloo in Seneca County, Perinton in Monroe County and Auburn in Cayuga County. The Lyons National Bank has one subsidiary, Lyons Realty Associates Corp.