Lyons Bancorp Reports Q1 Earnings 2026
The first quarter of 2026 saw the US economy face a sobering macroeconomic shock of a new war in the Middle East, stubborn inflation, shifting interest rate expectations, and elevated energy prices threatening to delay Federal Reserve rate cuts until the end of 2026. Despite the headwinds, the Bank ended 2025 on a high note, with healthy net income, rising loan balances, and favorable asset quality. This positive momentum continued into the first quarter of 2026, as Lyons Bancorp delivered strong earnings in a challenging market environment driven by resilient net interest income, strong non-interest income growth, disciplined expense management, capital strength, and a positive outlook on credit quality.
On a year-over-year comparison basis, for the first quarter of 2026, Lyons Bancorp, Inc. earned $5.3 million or $1.52 per diluted common share. This is a 31.9% increase over the first quarter of 2025 at $4.1 million in earnings and ahead of our $1.15 per diluted common share performance. At March 31, 2026, assets totaled $2.107 billion, compared to $2.026 billion reported same time last year. Loans grew $75.4 million or 5.1% to $1.555 billion at March 31, 2026, from $1.480 billion at March 31, 2025. Deposits totaled $1.918 billion at March 31, 2026, compared to $1.864 billion same time last year. Shareholder’s equity grew to $169.9 million at March 31, 2026, compared to $153.3 million same time last year. The Tier 1 leverage capital ratio was 8.11% on March 31, 2026, versus 7.88% on March 31, 2025. The Company maintains a strong capital position, impacted positively by our net income results noted and after dividends paid, as well as share repurchases.
At March 31, 2026, the Company’s net interest margin was 2.98% compared to 2.64% same time last year. The increase was due to higher rates on earning assets offset by the impact of current interest rates on the deposit mix. Lyons Bancorp continues to deliver strong expense management and maintained its efficiency ratio at 61.65% at March 31, 2026, an improvement from 65.37% same time last year. Return on average assets increased to 1.02% at March 31, 2026 from 0.83% at March 31, 2025. Return on average shareholder’s equity increased to 14.79% at March 31, 2026, up from 13.75% at March 31, 2025.
“Our loan portfolio continues to demonstrate strong performance and exceptional credit quality, supported by consistent underwriting standards and a well-diversified mix of loans. Non-performing loans remained below 0.5% at the end of the first quarter, with minimal charge-offs totaling $153 thousand. As a result, our net charge-off ratio remains significantly below our peer group average.
Despite this strength, along with solid loan growth and robust earnings, the Board and management team have chosen to maintain a disciplined approach to reserves. Our allowance for any potential loan losses stands at 1.50% of total loans, above peer group levels, positioning LNB with strong reserves to support future growth. LNB’s history of outstanding portfolio results reinforces that the Bank will maintain a strong financial position as we navigate the current economic environment and remain well positioned to manage and grow,” said Tom Kime, President and CEO.
At March 31, 2026, Lyons Bancorp had 3.5 million shares outstanding on a diluted basis. As of March 31, 2026, the last stock trade reported was $51.50 per share. Lyons Bancorp, Inc. is a publicly-owned company and its common shares are traded on the OTCQX Best Market under the stock symbol LYBC.