Lake Shore Bancorp Inc (LSBK) has reported a 5.01 percent fall in profit for the quarter ended Jun. 30, 2016. The company has earned $0.66 million, or $0.11 a share in the quarter, compared with $0.70 million, or $0.12 a share for the same period last year. Revenue during the quarter grew 6.68 percent to $4.32 million from $4.05 million in the previous year period. Net interest income for the quarter rose 2.30 percent over the prior year period to $3.78 million. Non-interest income for the quarter rose 10.24 percent over the last year period to $0.60 million.
Lake Shore Bancorp has made provision of $0.06 million for loan losses during the quarter, down 70.27 percent from $0.18 million in the same period last year.
Net interest margin improved 12 basis points to 3.41 percent in the quarter from 3.29 percent in the last year period.
“Lake Shore’s 2016 second quarter and year-to-date results were positive due to our continued strategic growth in the commercial loan and core deposit portfolios,” said Daniel P. Reininga, president and chief executive officer. “We continue to develop relationships with small business and commercial customers to finance projects that are contributing to the surge of economic growth throughout our local communities. The growth in commercial loans has decreased the Bank’s interest rate risk and better positioned the Bank for future increases in interest rates. Growth in core deposits continues to evolve, resulting in lower interest expense and an improved net interest margin. As part of our 125th anniversary celebration, we introduced exciting new checking products featuring non-traditional benefits, such as proximity couponing via customized mobile device app, merchant discount offers, cell phone protection and roadside assistance. Not only do these contemporary checking products provide additional value-added services to customers, they allow us to partner with local merchants for “shop local” initiatives and provide us with a unique opportunity to expand market share. Through our dedicated community bank focus, we will continue to offer quality products enhanced with technological conveniences, and personalized service, to drive growth in the asset size and value of our Company.”
Assets, liabilities remain almost stable
Total assets stood at $479.98 million as on Jun. 30, 2016, down 0.33 percent compared with $481.59 million on Jun. 30, 2015. On the other hand, total liabilities stood at $393.79 million as on Jun. 30, 2016, down 3.89 percent from $409.75 million on Jun. 30, 2015.
Loans outpace deposit growth
Net loans stood at $315.22 million as on Jun. 30, 2016, up 6.29 percent compared with $296.56 million on Jun. 30, 2015. Deposits stood at $374.84 million as on Jun. 30, 2016, up 1.54 percent compared with $369.16 million on Jun. 30, 2015. Investments stood at $95.02 million as on Jun. 30, 2016, down 16.07 percent or $18.19 million from year-ago. Shareholders equity stood at $77.04 million as on Jun. 30, 2016, up 7.24 percent or $5.20 million from year-ago.
Return on assets moved down 2 basis points to 0.56 percent in the quarter from 0.58 percent in the last year period. At the same time, return on equity decreased 37 basis points to 3.47 percent in the quarter from 3.84 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 1.07 percent in the quarter, down from 1.14 percent in the last year period.
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