Lake Shore Bancorp, Inc. Announces Second Quarter 2025 Financial Results

Core Viewpoint - Lake Shore Bancorp, Inc. reported significant financial growth in the second quarter of 2025, with net income increasing to $1.9 million, driven by higher net interest income and reduced non-interest expenses [1][5][3]. Financial Performance - The Company reported unaudited net income of $1.9 million, or $0.34 per diluted share, for Q2 2025, compared to $1.1 million, or $0.19 per diluted share, for Q2 2024 [1]. - For the first half of 2025, net income was $3.0 million, or $0.53 per diluted share, up from $2.1 million, or $0.36 per diluted share, in the first half of 2024 [1]. - The increase in net income for Q2 2025 was 72.0% compared to Q2 2024, and for the first half of 2025, it was 39.7% compared to the first half of 2024 [5]. Net Interest Income - Net interest income for Q2 2025 increased by $657,000, or 12.0%, to $6.1 million compared to Q1 2025, and increased by $916,000, or 17.6%, compared to Q2 2024 [4]. - The net interest margin for Q2 2025 was 3.84%, up from 3.49% in Q1 2025 and 3.14% in Q2 2024 [5][4]. Non-Interest Income - Non-interest income for Q2 2025 was $800,000, an increase of $76,000, or 10.5%, from Q1 2025, and an increase of $62,000, or 8.4%, from Q2 2024 [15]. - For the first half of 2025, non-interest income was $1.5 million, up $79,000, or 5.5%, from the first half of 2024 [16]. Non-Interest Expense - Non-interest expense for Q2 2025 was $4.6 million, a decrease of $253,000, or 5.2%, from Q1 2025, and a decrease of $272,000, or 5.6%, from Q2 2024 [17]. - For the first half of 2025, non-interest expense was $9.5 million, down $389,000, or 3.9%, from the first half of 2024 [18]. Balance Sheet Highlights - Total assets increased to $734.8 million as of June 30, 2025, a rise of $49.3 million, or 7.2%, from December 31, 2024 [24]. - Total deposits reached $627.5 million, an increase of $54.5 million, or 9.5%, compared to December 31, 2024 [24]. - Stockholders' equity increased to $92.9 million, up $3.0 million, or 3.4%, from December 31, 2024 [25]. Credit Quality - Non-performing assets as a percentage of total assets decreased to 0.24% as of June 30, 2025, down from 0.55% at December 31, 2024 [22]. - The allowance for credit losses on loans was $5.2 million as of June 30, 2025, compared to $5.1 million at December 31, 2024 [22].