Lake Shore Bancorp, Inc., the holding company for Lake Shore Savings Bank, reported unaudited net income of $1.7 million, or $0.29 per diluted share, for the third quarter of 2021 compared to net income of $1.2 million, or $0.21 per diluted share, for the third quarter of 2020. For the first nine months of 2021, the company reported unaudited net income of $4.4 million, or $0.74 per diluted share, as compared to $3.3 million, or $0.56 per diluted share, for the first nine months of 2020.

Highlights include:

¯ Net income of $1.7 million in the third quarter of 2021 increased by $460,000, or 37.4%, when compared to the third quarter of 2020. Third quarter 2021 net income was positively impacted by an increase in net interest income and a decrease in provision for loan losses, partially offset by increases in non-interest expense and income tax expense;

¯ Net income of $4.4 million for the nine months ended September 30, 2021 increased by $1.1 million, or 31.9%, when compared to the nine months ended September 30, 2020. Net income during the first nine months of 2021 was positively impacted by increased net interest income and non-interest income and a decrease in provision for loan losses, partially offset by increases in non-interest expense and income tax expense;

¯ Total assets at September 30, 2021 increased $23.1 million, or 3.4%, to $709.3 million when compared to December 31, 2020, primarily due to an increase in cash and cash equivalents which was driven by deposit growth. This increase was also due to an increase in securities available for sale;

¯ Total deposits grew by $31.5 million, or 5.6%, to $591.8 million at September 30, 2021 when compared to December 31, 2020, primarily due to growth in core deposits;

¯ Third quarter 2021 included stock repurchases and cash dividend payments of $897,000 and $280,000, respectively; and

¯ Book value per share grew to $15.17 per share at September 30, 2021 from $14.75 per share at December 31, 2020.

“Our strategic goal to improve financial performance is reflected in our strong quarterly financial results and balance sheet growth which is being achieved despite a low interest rate environment and the lingering impact of the pandemic,” stated Mr. Daniel P. Reininga, President and Chief Executive Officer. “Our core banking business has been strengthened by year-to-date deposit growth and $97.6 million of new loan originations (excluding PPP loan originations) being added to our loan portfolio. We successfully converted to a new core banking system during the quarter, which resulted in non-recurring costs that impacted our year-to-date financial results. We remain focused on prudently deploying excess cash to strengthen our financial performance, along with meeting the needs of new and existing customers in the markets that we serve, while integrating our new technology for processing efficiencies.”