Lake Shore Bancorp, Inc. Announces Second Quarter 2024 Financial Results

Core Insights - Lake Shore Bancorp, Inc. reported a net income of $1.1 million for Q2 2024, a 36.8$816,000 in Q2 2023, primarily due to reduced non-interest expenses [1][18] - For the first half of 2024, net income was $2.1 million, down from$2.5 million in the same period of 2023 [1] - The company reduced reliance on wholesale funding by $23 million while growing organic deposits by 1.65$2.2 million, or 17.3%, to $10.3 million compared to$12.5 million in the first half of 2023 [3] - Interest income for the first half of 2024 was $17.4 million, an increase of$942,000, or 5.7%, compared to $16.4 million in the first half of 2023 [4] - Non-interest income increased by$338,000, or 30.5%, to $1.4 million in the first half of 2024 compared to the same period in 2023 [6] Expense Management - Non-interest expense for Q2 2024 was$4.9 million, a decrease of $1.0 million, or 17.0$5.9 million in Q2 2023 [7] - The decrease in non-interest expenses was attributed to a reduction in professional services expense by $451,000, or 53.2$163,000, or 91.1% [7][25] Credit Quality - Non-performing assets as a percentage of total assets increased to 0.56% at June 30, 2024, from 0.47% at December 31, 2023 [8][41] - The allowance for credit losses on loans was $5.9 million at June 30, 2024, down from$6.5 million at December 31, 2023 [26] Balance Sheet Highlights - Total assets decreased by $14.1 million, or 1.9$711 million at June 30, 2024, compared to $725.1 million at December 31, 2023 [28] - Stockholders' equity increased to$86.9 million at June 30, 2024, up $658,000, or 0.8$86.3 million at December 31, 2023 [10] - Total deposits were $589.4 million at June 30, 2024, a slight decrease of$1.5 million, or 0.3%, from $590.9 million at December 31, 2023 [28] Capital Ratios - The company's Tier 1 Leverage ratio was 13.02% and the Total Risk-Based capital ratio was 18.64% at June 30, 2024, indicating a well-capitalized position [18][36]