Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), announced first quarter 2011 net income of $950,000, an increase of 31.8% compared to net income of $721,000 for the first quarter of 2010.
Highlights – First Quarter 2011
- Earnings per diluted share of $0.17, an increase of 41.7% over first quarter 2010 earnings per diluted share of $0.12
- Net interest income increased 6.8% compared to the quarter ended March 31, 2010
- Net interest margin improved by 13 basis points to 3.24% for the quarter ended March 31, 2011 compared to 3.11% for the quarter ended December 31, 2010
- Deposits grew by $56.2 million, to $376.8 million, or 17.5%, compared to $320.6 million at March 31, 2010
- Total assets of $483.9 million at March 31, 2011, an increase of 12% compared to $432.0 million at March 31, 2010
- The Bank’s asset quality remained solid with nonperforming loans to total loans at 0.86%
“Our 2011 first quarter was the fifth consecutive reporting period with year over year earnings improvement,” said Daniel P. Reininga, President and Chief Executive Officer. “Our asset quality remains very strong, and our healthy capital levels insures that we are positioned to pursue all appropriate growth opportunities within our retail service area.”
Net interest income was $3.6 million for the first quarter 2011, an increase of $232,000 from $3.4 million during first quarter 2010. The increased net interest income was reflective of a 3.8% increase in interest income and a 2.8% decrease in interest expense. The Bank’s first quarter 2011 average loan balance increased by $6.0 million, and the average balance for investment securities increased by $36.0 million compared with the prior year quarter.