Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), announced third quarter 2011 net income of $1.2 million, or $0.20 per diluted share, an increase of 48.6% compared to net income of $778,000, or $0.13 per diluted share, for the third quarter of 2010. In addition, net income for the nine months ended September 30, 2011 was $3.1 million, or $0.54 per diluted share, an increase of 44.0% from $2.1 million, or $0.37 per diluted share, for the nine months ended September 30, 2010.
Highlights – Third Quarter of 2011
- Earnings per share of $0.20, an increase of 53.8% compared to $0.13 per share for the third quarter of 2010;
- Net interest income of $3.8 million increased 14.5% compared to the prior year quarter;
- Net interest margin improved by 30 basis points compared to the prior year quarter;
- Return on average equity was 7.57%, an increase of 224 basis points compared to the prior year quarter;
- The Bank’s nonperforming loans to total loans ratio of 0.89% remains significantly below industry averages;
- Total assets of $493.8 million, a 3.1% increase since December 31, 2010; and
- Return on average assets of 0.95%, an increase of 28 basis points compared to third quarter 2010.
“The earnings momentum that started at the beginning of 2010 continued as we booked our seventh consecutive quarter of double-digit growth in earnings during the third quarter of 2011,” said Daniel P. Reininga, President and Chief Executive Officer. “Our effective noninterest expense management and continued strong asset quality enabled Lake Shore to realize positive earnings improvement, as well as substantive growth of shareholders’ equity during the third quarter. We remain focused on managing our business to build value in our franchise.”