Lyons Bancorp announces record profits for 2021
FINGER LAKES – Due to strong year-over-year growth in assets and the number of new customers choosing LNB as their bank, and the conservative approach the business took in 2020 to deal with uncertainties of the pandemic, Lyons Bancorp, Inc., the parent financial holding company of National Bank of Lyon, reported record earnings for 2021. Lyons Bancorp posted a profit of $15.5 million in 2021, an increase 51% from $10.3 million reported in 2020. On a diluted per share basis, earnings were $4.62 compared to $3.12 last year. Following the Bank’s common shareholder rights offering in the third quarter of 2021, the Company had approximately 250,000 more shares outstanding at December 31, 2021 than a year earlier.
“Last year (2021) was a pivotal year for the Bank,” said Robert Schick, Chairman and President of Lyons Bancorp, Inc. prevailing in 2020, many people were still in hibernation mode, and even today many businesses are still not operating at full capacity.Yet the Bank recorded its second best year ever in attracting new customers to how we operate. It is simply amazing and a tribute to the leadership of Tom Kime, President and CEO of our Bank and his remarkable staff.
The conservative approach the bank took in 2020 to significantly increase its reserve for potential loan losses squeezed profits that year, ending the bank’s 23-year record of consecutive profit increases. one year to the next. Fortunately, the bank did not experience a surge in problem loans. As a result, while the bank added to its loan loss reserve again in 2021, it did so at a significantly less aggressive pace. “It is important to note that unlike many other financial institutions which withdrew money from their loan reserves in 2021, LNB did not. Rather, the Bank’s strategy is to increase the amount of its outstanding loans, thereby absorbing any excess in its reserve account,” Schick said.
Year-end assets totaled $1.63 billion for 2021, compared to $1.42 billion for 2020. Year-end loans and deposits for 2021 totaled $1.14 billion and $1.47, respectively. billion, compared to loan and deposit balances of $1.02 billion and $1.29 billion in 2020. Shareholders’ equity totaled $109.6 million, up more than $14 million dollars compared to last year. In 2021, the Company paid $4.6 million in ordinary and preferred dividends, compared to $4.2 million in 2020.
The company’s return on average assets in 2021 was 0.99% compared to 0.78% in 2020. Its return on average equity was 15.62%, up 5.15% from the year former.
The bank wrote off 0.04% of total loans in 2021, compared to 0.05% in 2020. The year-end total for non-conforming loans was $3.5 million in 2021 compared to 3, $3 million in 2020. The bank’s provision for possible loan losses was $18.3 million. at the end of fiscal 2021, compared to $17.4 million in 2020.
Common stock of Lyons Bancorp, Inc. trades on the OTCQX. The last known trade of Lyons Bancorp common stock in 2021 was $43.20 compared to $40.00 in 2020. As of this writing, the last known trade reported was $46.50 per share.
Lyons Bancorp, Inc. is the financial holding company of La Banque Nationale de Lyon. 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, Canandaigua and Farmington in Ontario County; Waterloo in Seneca County, Penn Yan in Yates County, Perinton in Monroe County, and Auburn in Cayuga County. Banque Nationale de Lyon has a subsidiary, Lyons Realty Associates Corp.