Lyons Bancorp Inc., the parent company of The Lyons National Bank, reported earnings as of Sept. 30, 2013.
The company earned $1.8 million, or $1.15 per diluted share, for the three months ending Sept. 30, an increase of 3 percent over the same period last year. Earnings for the nine months ending Sept. 30 were $5.5 million, or $3.51 per diluted share, an increase of 7 percent year over year. As a result of its successful second quarter 2012 common stock offering, the company issued approximately 192,000 additional shares.
In addition, total assets for Lyons Bancorp were $721 million at Sept. 30, an increase of $65 million from the same period last year. Strong loan growth was reported across most major loan categories, funded by deposit growth as a result of new customer relationships as well as strengthened existing relationships.
The increase in earnings year over year was due to both an increase in net interest income as well as noninterest income. Net interest income totaled $16.4 million, up 14 percent over the same period last year, due primarily to growth in earning assets. Noninterest income totaled $4.0 million, an increase of 15 percent over 2012 levels, due primarily to increased income generated from the company's financial services division as well as increases in cardholder fee income.
Credit quality of the loan portfolio continued to improve, as nonperforming loans decreased to 0.21 percent of total loans as of Sept. 30 from 1.07 percent the same period last year. Net chargeoffs to average loans were 0.06 percent during the first nine months of 2013. Each of these indicators helped support the level of the company's allowance for credit losses, which totaled 1.45 percent of gross loans at Sept. 30 compared to 1.64 percent the same period last year.