Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), announced fourth quarter 2011 net income of $587,000, or $0.10 per diluted share, compared to net income of $895,000, or $0.16 per diluted share, for the fourth quarter of 2010. Fourth quarter 2011 net income reflected a $500,000 write-down, which represented the entire investment made by the mid-tier holding company (Lake Shore Bancorp, Inc.) in common stock of a small, local payment processing company. Fourth quarter 2011 net income excluding the write-down, would have been $1.1 million, or $0.19 per diluted share, an increase of $192,000, or 21.5%, in comparison to 2010 fourth quarter net income. Net income for 2011 was $3.7 million, or $0.65 per diluted share, an increase of 21.0% from $3.0 million, or $0.53 per diluted share for 2010.
2011 Year to Date Highlights
- Record Company net income of $3.7 million, or $0.65 per diluted share
- An 11.2% increase in net interest income compared with 2010
- A 13 basis-point improvement in the net interest margin to 3.34%
- A $1.7 million reduction in the provision for loan losses compared to 2010
- Asset quality metrics remained significantly better than industry averages
- A 16.7% increase in cash dividends declared, compared to the prior year
- Expansion of the Board, with the appointment of two additional independent outside directors
“Our Company’s performance remained very solid in the fourth quarter, as illustrated by our net interest income growth, improved net interest margin, increased interest earning assets, and effective operating expense management,” said Daniel P. Reininga, President and Chief Executive Officer. “We believe that our full year performance is indicative of an effective and appropriate approach to business in an economic climate which remains difficult for our industry. The substantive percentage increase in our cash dividend during 2011 reflects our Board’s commitment to returning value to our investors.”
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