Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), announced net income of $778,000, or $0.13 per diluted share, for the third quarter of 2010, up 29% compared to net income of $602,000, or $0.10 per diluted share, for the third quarter of 2009. Net income for the nine months ended September 30, 2010 was $2.15 million, or $0.37 per diluted share, an increase of 58% compared to net income of $1.36 million, or $0.23 per diluted share, for the first nine months of 2009. Third quarter and nine month ended 2010 net income was positively affected by a $399,000 tax benefit resulting from a change to New York State tax law.
Performance Summary at and for the period ended September 30, 2010:
- Net interest income increased 13.6% for the third quarter of 2010 compared to the prior year quarter;
- Net interest income increased 18.5% year-to-date compared to 2009;
- Net interest margin increased 6 basis points for the third quarter of 2010 compared to the third quarter 2009, and increased 28 basis points year-to-date compared to 2009;
- The Company had $1.1 million of gains on the sale of investments for the quarter and nine months ended;
- Nonperforming loans to total loans were 0.91% at quarter end;
- Total deposits increased 14.3%, to $363.8 million, from December 31, 2009; and
- The Company had provision for loan losses of $1.7 million for the quarter and $2.0 million for the nine months.
“Our 2010 results are solid with nine-month net income up 58%, reflecting net interest income growth of $1.6 million, and a $1.1 million net gain on the sale of investments,” said David C. Mancuso, President and Chief Executive Officer. “Our deposit generation remained strong as we added over $16 million in deposits during the quarter, an annualized growth rate of more than 18%.”