Lake Shore Bancorp, Inc., the holding company for Lake Shore Savings Bank, announced second quarter 2012 net income of $895,000, or $0.16 per diluted share, compared to net income of $987,000, or $0.17 per diluted share, for the second quarter of 2011.
Lake Shore had net income of $1.902 million, or $0.33 per diluted share, for the six months ended June 30, and $1.937 million, or $0.34 per diluted share, for the six months ended June 30, 2011.
The second quarter and year to date highlights include:
Deposits grew by $5 million, an annualized increase of 2.6 percent from Dec. 31.
Non-interest bearing deposits grew an annualized 24.8 percent from Dec. 31.
Commercial real estate loans grew an annualized 14.1 percent from Dec. 31.
Stockholders' equity increased $1.8 million, an annualized increase of 5.5 percent from Dec. 31.
"Our solid second quarter earnings performance reflects our ongoing strategy of effectively managing our net interest margin and interest rate risk in this challenging low rate environment for financial institutions," said Daniel P. Reininga, president and chief executive officer. "Looking forward, we remain committed to meaningful growth in our commercial lending portfolio and to improving the efficiency of our delivery model."
Net interest income was $3.8 million, for the second quarter of 2012 and 2011.
Interest income was $5.0 million in the second quarter of 2012 compared to $5.2 million in second quarter 2011. The decrease in interest income for the current quarter was due to a $2 million decrease in average loan balances in comparison to the prior year quarter, and lower yields on investment securities.
Interest expense for second quarter 2012 decreased by $220,000, or 15.6 percent, compared to the prior year quarter, as a result of a 22 basis-point decline in the rate paid by the Bank on deposits and borrowings, and a $1.6 million decline in the average balance of interest bearing liabilities. The reduction in interest bearing liabilities resulted from a $5.9 million reduction in average borrowings offset by a $4.3 million increase in average deposits.