Lake Shore Bancorp, Inc., the holding company for Lake Shore Savings Bank, announced third quarter 2012 net income of $863,000, or $0.15 per diluted share, compared to net income of $1.2 million, or $0.20 per diluted share, for third quarter 2011. The company had net income of $2.8 million, or $0.48 per diluted share, for the nine months ended September 30, 2012, compared to net income of $3.1 million, or $0.54 per diluted share for the same period in 2011.
Third quarter and year-to-date highlights include:
Deposits grew by $12.8 million, from Dec. 31.
Non-interest bearing deposits grew an annualized 47.7 percent from Dec. 31.
Stockholders' equity increased $3.1 million, an annualized 6.5 percent, from Dec. 31.
Continued strong asset quality metrics.
"We continue to realize solid bottom-line performance with our consistent and conservative approach to managing through this extended low interest rate period," said Daniel P. Reininga, president and chief executive officer. "Our business focus remains on adding well-collateralized, adjustable-rate commercial real estate loans to mitigate potential interest rate risk over the longer term. Our solid asset quality metrics are indicative of an effective underwriting process. Our overall approach continues to be centered on meeting the financial needs of local families and businesses with a superior level of personal service that differentiates us from large banks."
Net interest income was $3.7 million for the third quarter 2012, compared to $3.8 million for third quarter 2011, reflecting lower interest income and reduced interest expense. Third quarter 2012 interest income was $4.8 million compared to $5.2 million in the prior year quarter, as a result of reduced average loan balances, as well as a lower yield earned on the investment portfolio. Interest expense for the third quarter of 2012 was reduced by $241,000, or 17.4 percent, to $1.1 million compared to third quarter 2011, which reflected a 25 basis-point decline in the Bank's average rate paid on interest bearing liabilities. The decrease reflected a $5.2 million reduction in average borrowings offset by a $6.0 million increase in average deposits.
Net interest income was $11.3 million for the nine months ended Sept. 30, 2012 and 2011. Interest income for the nine months ended Sept. 30, 2012 was $14.9 million compared to $15.6 million for the prior year period. This change was reflective of a 30 basis-point decline in the average interest rate on interest-earning assets which was partially offset by an $11.2 million increase in the average balance of interest-earning assets.