Lake Shore Bancorp, Inc. reports third quarter results

Lake Shore Bancorp, Inc. the holding company for Lake Shore Savings Bank, announced unaudited results for the third quarter of 2017 and the nine months ended Sept. 30.

2017 Third quarter and year-to-date Highlights:

Total assets at Sept. 30, 2017 increased $23.6 million, or 4.8 percent, to $512.8 million when compared to Dec. 31, 2016 and exceeded $500 million for the first time in company history during 2017;

Loans receivable, net increased 11 percent to $362.4 million at Sept. 30, 2017 from $326.4 million at Dec. 31, 2016 primarily due to organic commercial loan growth of 25.3 percent during the first nine months of 2017;

Total deposits grew by $15.0 million, or 3.9 percent, to $400.9 million at Sept. 30, 2017 when compared to Dec. 31, 2016, which included net core (non-time) deposit growth of $14.8 million;

Net interest income increased $1.2 million, or 10.6 percent, for the nine months ended September 30, 2017 when compared to the prior year period primarily due to commercial loan growth;

Third quarter 2017 net interest margin was 3.63 percent, an increase of 17 basis points from third quarter 2016 and 18 basis points from fourth quarter 2016;

Net interest margin was 3.65 percent for the nine months ended Sept. 30, 2017, up 22 basis points when compared to the nine months ended September 30, 2016; and

Non-performing loans as a percent of total loans decreased from 1.80 percent as of Dec. 31, 2016 to 1.03 percent as of Sept. 30, 2017 primarily due to the payoff of non-performing commercial loans during the first nine months of 2017.

“We are extremely pleased to have exceeded the $500 million threshold in total assets, marking a significant milestone for the Bank,” stated Daniel P. Reininga, President and Chief Executive Officer. “Our financial results have been positively impacted by our strategic focus on organic growth through the establishment and strengthening of customer relationships. We will remain focused on delivering exceptional individualized service while providing our customers with innovative banking products and services.”

Net income for third quarter 2017 was $940,000, or $0.15 per diluted share, compared to net income of $757,000, or $0.13 per diluted share, for third quarter 2016. Third quarter 2017 net income reflected a $433,000 increase in net interest income which was partially offset by a $193,000 increase in non-interest expenses and a $66,000 increase in income tax expense when compared to the third quarter of 2016.

Net income for the nine months ended Sept. 30, 2017 was $2.8 million, or $0.46 per diluted share, compared to net income of $3.4 million, or $0.56 per diluted share, for the nine months ended Sept. 30, 2016.

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