Lake Shore Ban­corp an­nounces quaterly in­come-up

The Pak Banker - - Front Page -

DUNKIRK

Lake Shore Ban­corp Inc, the hold­ing com­pany for Lake Shore Sav­ings Bank an­nounced third quar­ter 2012 net in­come of $863,000, or $0.15 per di­luted share, com­pared to net in­come of $1.2 mil­lion, or $0.20 per di­luted share, for third quar­ter 2011.

The Com­pany had net in­come of $2.8 mil­lion, or $0.48 per di­luted share, for the nine months ended Septem­ber 30, 2012, com­pared to net in­come of $3.1 mil­lion, or $0.54 per di­luted share for the same pe­riod in 2011.

Third Quar­ter and Year-to-Date high­lights re­prot that de­posits grew by $12.8 mil­lion, from De­cem­ber 31, 2011· Non-in­ter­est bear­ing de­posits grew an an­nu­al­ized 47.7% from De­cem­ber 31, 2011. Stock­hold­ers' eq­uity in­creased $3.1 mil­lion, an an­nu­al­ized 6.5%, from De­cem­ber 31, 2011. We continue to re­al­ize solid bot­tom-line per­for­mance with our con­sis­tent and con­ser­va­tive ap­proach to manag­ing through this ex­tended low in­ter­est rate pe­riod, said Daniel P. Reininga, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer. "Our busi­ness fo­cus re­mains on adding well-col­lat­er­al­ized, ad­justable-rate com­mer­cial real es­tate loans to mit­i­gate po­ten­tial in­ter­est rate risk over the longer term. Our solid as­set qual­ity met­rics are in­dica­tive of an ef­fec­tive un­der­writ­ing process. Our over­all ap­proach con­tin­ues to be cen­tered on meet­ing the fi­nan­cial needs of lo­cal fam­i­lies and busi­nesses with a su­pe­rior level of per­sonal ser­vice that dif­fer­en­ti­ates us from large banks.

Net in­ter­est in­come was $3.7 mil­lion for the third quar­ter 2012, com­pared to $3.8 mil­lion for third quar­ter 2011, re­flect­ing lower in­ter­est in­come and re­duced in­ter­est ex­pense. Third quar­ter 2012 in­ter­est in­come was $4.8 mil­lion com­pared to $5.2 mil­lion in the prior year quar­ter, as a re­sult of re­duced av­er­age loan balances, as well as a lower yield earned on the in­vest­ment port­fo­lio. In­ter­est ex­pense for the third quar­ter of 2012 was re­duced by $241,000, or 17.4%, to $1.1 mil­lion com­pared to third quar­ter 2011, which re­flected a 25 ba­sis-point de­cline in the Bank's av­er­age rate paid on in­ter­est bear­ing li­a­bil­i­ties. The de­crease re­flected a $5.2 mil­lion re­duc­tion in av­er­age bor­row­ings off­set by a $6.0 mil­lion in­crease in av­er­age de­posits.

Net in­ter­est in­come was $11.3 mil­lion for the nine months ended Septem­ber 30, 2012 and 2011. In­ter­est in­come for the nine months ended Septem­ber 30, 2012 was $14.9 mil­lion com­pared to $15.6 mil­lion for the prior year pe­riod. This change was re­flec­tive of a 30 ba­sis-point de­cline in the av­er­age in­ter­est rate on in­ter­est-earn­ing as­sets which was par­tially off­set by an $11.2 mil­lion in­crease in the av­er­age bal­ance of in­ter­est-earn­ing as­sets.

In­ter­est ex­pense for the nine months ended Septem­ber 30, 2012 was $3.6 mil­lion, a de­crease of $699,000, or 16.3%, com­pared to the first nine months of 2011, re­flect­ing a 23 ba­sis-point de­cline in the av­er­age rate paid on in­ter­est-bear­ing li­a­bil­i­ties, and a $1.7 mil­lion re­duc­tion in the av­er­age balances of in­ter­est-bear­ing li­a­bil­i­ties. The de­crease in the av­er­age balances of in­ter­est-bear­ing li­a­bil­i­ties was due to a $5.6 mil­lion re­duc­tion in av­er­age bor­row­ings off­set by a $3.9 mil­lion in­crease in av­er­age de­posits.

Net in­ter­est mar­gin for third quar­ter 2012 was 3.15%, down 21 ba­sis points from 3.36% for the third quar­ter 2011. This re­sult re­flected both a 68 ba­sis point de­crease in the av­er­age yield earned on the in­vest­ment port­fo­lio, and a 13 ba­sis point de­cline in the av­er­age yield earned on the loan port­fo­lio. This de­crease was off­set by a 25 ba­sis-point de­cline in the av­er­age rate paid on in­ter­est bear­ing li­a­bil­i­ties. Net in­ter­est mar­gin for the nine months ended Septem­ber 30, 2012 was 3.26%, a de­crease of seven ba­sis points from the com­pa­ra­ble pe­riod in 2011.

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