Lake Shore Bancorp, Inc., the holding company for Lake Shore Savings Bank, reported unaudited net income of $1.8 million, or $0.31 per diluted share, for the fourth quarter of 2021 compared to net income of $1.2 million, or $0.21 per diluted share, for the fourth quarter of 2020. For the year ended Dec. 31, 2021, the company reported unaudited net income of $6.2 million, or $1.05 per diluted share, as compared to $4.6 million, or $0.77 per diluted share, for the year ended Dec. 31, 2020.

The company also reported:

¯ Fourth quarter net income of $1.8 million increased by $572,000, or 46.0%, when compared to the fourth quarter of 2020. Fourth 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 a decrease in non-interest income and an increase in income tax expense.

¯ Net income of $6.2 million for the year ended Dec. 31, 2021 increased by $1.6 million, or 35.8%, when compared to the year ended 2020. Net income during 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 December 31, 2021 increased $27.9 million, or 4.1%, to $714.1 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, partially offset by a decrease in loans receivable, net≥ Total deposits grew by $33.5 million, or 6.0%, to $593.7 million at Dec. 31, when compared to 2020, primarily due to growth in core deposits.

¯ Stock repurchases of $2.3 million, representing the repurchase of 150,542 shares at an average cost per share of $14.98, were completed during the year ended Dec. 31, 2021.

¯ Cash dividend payments of $1.0 million were paid to shareholders during the year ended Dec. 31, 2021, resulting in an annual dividend per share of $0.54, a 10.2% increase over last year.

¯ Book value per share increased 4.7% to $15.45 per share at December 31, 2021 as compared to $14.75 per share at December 31, 2020.

“We are extremely pleased to report significant growth in both total assets and net income during 2021,” stated Daniel P. Reininga, president and chief executive officer. “We exceeded the $700 million threshold for total assets in 2021 through our continued commitment to understanding the individual needs of our customers and integrating new technology for processing efficiencies, while also withstanding the challenges of the current interest rate environment and intense competition throughout our market area.”

During 2021, the bank originated 33 Small Business Administration Paycheck Protection Program loans for $11.4 million to lessen the continued economic impact of the COVID-19 pandemic on small businesses in our market areas. These loans were in addition to the 252 PPP loans for $26.9 million which were originated by the Bank during 2020. The SBA PPP loan program ended on May 31. As of Dec. 31, $4.6 million of the PPP loans originated during 2021 were still outstanding on the Bank’s balance sheet. All PPP loans originated during 2020 had been forgiven as of Dec. 31.