Lake Shore Bancorp, Inc., the holding company for Lake Shore Bank, reported unaudited net income of $1.9 million, or 26 cents per diluted share, for the fourth quarter of 2025 compared to net income of $1.5 million, or 19 cents per diluted share, for the fourth quarter of 2024.

For the year ended Dec. 31, the company reported unaudited net income of $7.3 million, or 97 cents per diluted share, as compared to $4.9 million, or 65 cents per diluted share, for the year ended Dec. 31, 2024. The company’s 2025 financial performance was positively impacted by an increase in net interest income and a decrease in non-interest expenses.

“Our fourth quarter and 2025 year-end results reflect the effectiveness of our strategies,” stated Kim C. Liddell, President, chief executive officer and director. “We increased core earnings, improved margins, strengthened the balance sheet, reduced borrowings and non-performing assets, and grew tangible book value. Our disciplined focus on prudent loan growth and core deposits positions us well for 2026 and delivering shareholder value.”

Some fourth quarter and full year highlights included:

— Net income increased to $1.9 million during the fourth quarter of 2025, an increase of $465,000, or 31.7%, when compared to the fourth quarter of 2024 and increased to $7.3 million during the year ended Dec. 31, 2025, an increase of $2.3 million, or 47.4%, when compared to the year ended Dec. 31, 2024.

— Net interest margin increased to 3.85% during the fourth quarter of 2025, an increase of 13 basis points when compared to net interest margin of 3.72% during the third quarter of 2025. Net interest margin increased to 3.73% for the year ended Dec. 31, 2025, an increase of 52 basis points when compared to net interest margin of 3.21% for the year ended Dec. 31, 2024.