Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported record earnings of $4.2 million in 2010, which translates into earnings per share of $4.86, an increase of 10.7 percent over earnings per share of $4.39 in 2009.  Earnings for the fourth quarter of 2010 were $1.1 million, or $1.28 per share, an increase of 4.1 percent from the third quarter of 2010 and 1.6 percent over the same quarter last year.

Lyons Bancorp, Inc., the parent company of The Lyons National Bank, reported record earnings of $4.2 million in 2010, which translates into earnings per share of $4.86, an increase of 10.7 percent over earnings per share of $4.39 in 2009.  Earnings for the fourth quarter of 2010 were $1.1 million, or $1.28 per share, an increase of 4.1 percent from the third quarter of 2010 and 1.6 percent over the same quarter last year.

The increase in net income year over year was due primarily to an increase in net interest income.  Net interest income totaled $17.1 million, up $2.0 million or 12.9 percent over the same period last year, due primarily to an increase in earning assets funded by strong core deposit growth. Net interest margin, on a tax-equivalent basis, was 3.83 percent for 2010, improving modestly from 3.82 percent for 2009.  Noninterest income was essentially flat year over year, while noninterest expenses increased 5.9 percent year over year, due primarily to the opening of the company’s newest branch office, located in Seneca County.

Total assets as of Dec. 31, 2010 were $513.6 million, an increase of $55.8 million or 12.2 percent over the prior year.  Total loans outstanding as of December 31, 2010 were $312.6 million, up $24.4 million or 8.5percent over the same period last year.  Loan growth was funded by strong growth in core deposits, as total deposits increased $41.7 million during 2010 and ended the year at $424.0 million.

At year end, the company’s allowance for loan losses totaled $6.4 million, or 2.06 percent of total loans at Dec. 31, 2010.  Nonperforming loans totaled 1.79 percent of total loans as of Dec. 31, 2010, increasing from 0.86 percent at December 31, 2009, while net charge-offs for 2010 were 0.30 percent of average loans, also an increase from 2009 levels.  Both of these factors contributed to an increased provision for loan loss expense year over year; however each of these ratios continue to compare favorably to national averages published by the Federal Reserve.

The capital was raised through a private placement offering of Trust Preferred Securities which added approximately $2.9 million in regulatory capital.  This offering, coupled with strong earnings, strengthened the company’s ratio of Tier 1 capital to average assets, which measured 8.30 percent at Dec. 31, 2010, compared to 8.00 percent at Dec. 31, 2009.