Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), announced net income of $0.65 million, or $0.11 per diluted share, for the second quarter of 2010, up 83% compared to net income of $0.35 million, or $0.06 per diluted share, for the second quarter of 2009. For the six months ended June 30, 2010 net income was $1.37 million, or $0.24 per diluted share, an 80% increase compared to net income of $0.76 million, or $0.13 per diluted share, for the comparable period of 2009.
Highlights – Second Quarter 2010
- Income before taxes increased by 98% compared to second quarter 2009.
- Net interest income increased by 20.4% compared to second quarter 2009.
- Net interest margin increased 35 basis points compared to second quarter 2009.
- The Bank’s asset quality remained strong with nonperforming to total assets at 0.59%.
- The Bank opened its new full-service branch in Depew, NY in April 2010.
“The momentum we developed early in the year continued through the second quarter with strong year-on-year revenue and earnings growth and continuation of our strong and stable asset quality,” said David C. Mancuso, President and Chief Executive Officer. “We added nearly $27 million in deposits in the second quarter, reflecting our successful expansion in the metropolitan Buffalo area and, in particular, our new location in Depew, New York. This new branch was opened in April and has already attracted more than $17 million in deposits, exceeding our initial expectations for this location.”
Total revenue for the second quarter of 2010 was $4.0 million, an increase of $0.56 million, or 16.3%, compared to the second quarter of 2009, and was reflective of the Company’s strong net interest income growth of 20.4% in the 2010 quarter. Revenue growth for the six months ended June 30, 2010 was up 17.3%, or $1.2 million, compared to the same period in 2009, and was also driven by the growth in net interest income.