Lake Shore Bancorp, Inc., the holding company for Lake Shore Savings Bank, announced unaudited results for the three months ended March 31. Net income for first quarter 2020 was $731,000, or $0.12 per diluted share, as compared to first quarter 2019 net income of $898,000, or $0.15 per diluted share.

First quarter 2020 net income reflected a $425,000 increase in provision for loan losses primarily related to declining economic conditions as a result of the COVID-19 pandemic and a $134,000 decrease in non-interest income which was partially offset by a $358,000 increase in net interest income, a $29,000 decrease in income tax expense and a $5,000 decrease in non-interest expense when compared to the first quarter of 2019.

“We are committed to putting people first by keeping the best interest of our customers, employees and communities in mind during the Coronavirus Pandemic, as evidenced by every precaution we have proactively taken to ensure the safety of our customers, employees, and vendor partners, while we strive to deliver uninterrupted service and support, both in-branch and online,” stated Daniel P. Reininga, president and chief executive officer. “Our strong capital and liquidity levels provide us with a resilient financial position that will allow us to navigate through these challenging times and to continue to serve our valued customers during these unprecedented circumstances.”

During the first quarter of 2020, Lake Shore Savings Bank was actively engaged in responding to the COVID-19 pandemic. All bank branches remain open to serve our customers and local communities with strict social distancing protocols in place. We have encouraged our customers to visit us via drive-thru lanes and to utilize our mobile banking, online banking and ATM services to promote social distancing. In-person lobby visits are by appointment only. To protect the health of everyone, many employees are working remotely and cleaning protocols have been enhanced across all locations.

The bank announced in March the waiver of all ATM fees for our customers who use another Bank’s ATM. We are providing payment deferral for up to 90 days to borrowers with hardship requests and we are participating in the Small Business Administration’s (“SBA”) Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act.

Loans, net totaled $473.4 million at March 31, 2020, compared to $470.8 million at December 31, 2019, an increase of $2.5 million, or 0.5%. Loan originations of $20.9 million and line utilization increases of $1.3 million were offset by payoffs of $19.2 million;

The bank’s loan portfolio exposure at March 31, 2020 to industries most affected by COVID-19 includes 9.2% retail properties and businesses, 4.1% hospitality, 5.8% restaurants and 3.0% construction and contractors. Loans to dental and medical practices and gyms represent less than 1.5%;

As of April 17, the bank approved loan relief requests for payment deferral on approximately $92.6 million of the Bank’s loan portfolio and the approvals were primarily for payment deferral of 90 days. 90.8% of the total payment deferral requests are on loans secured by real estate located primarily in Western New York. 83.1% of the total payment deferral requests were by commercial real estate or commercial business loan customers.