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

Core Viewpoint - Lake Shore Bancorp, Inc. reported significant growth in net income and net interest income for the third quarter and the first nine months of 2025, driven by strategic initiatives and improved efficiency [1][2]. Financial Performance - The Company reported unaudited net income of $2.4 million, or $0.32 per diluted share, for Q3 2025, up from $1.3 million, or $0.18 per diluted share, in Q3 2024 [1]. - For the first nine months of 2025, net income was $5.3 million, or $0.70 per diluted share, compared to $3.5 million, or $0.46 per diluted share, for the same period in 2024 [1]. Net Interest Income - Net interest income for Q3 2025 increased by $233,000, or 3.8%, to $6.4 million compared to Q2 2025, and rose by $972,000, or 18.1%, compared to Q3 2024 [3]. - For the first nine months of 2025, net interest income increased by $2.2 million, or 14.1%, to $17.9 million compared to the same period in 2024 [4]. Interest Income and Expense - Interest income for Q3 2025 was $9.4 million, an increase of $244,000, or 2.7%, from Q2 2025, and up $500,000, or 5.6%, from Q3 2024 [5]. - Interest expense for Q3 2025 was $3.0 million, a slight increase of $11,000, or 0.4%, from Q2 2025, but a decrease of $472,000, or 13.6%, from Q3 2024 [10][12]. Non-Interest Income and Expense - Non-interest income for Q3 2025 was $1.1 million, an increase of $265,000, or 33.1%, from Q2 2025, and up $274,000, or 34.6%, from Q3 2024 [15]. - Non-interest expense for Q3 2025 was $4.8 million, an increase of $218,000, or 4.7%, from Q2 2025, but remained relatively stable compared to Q3 2024 [17]. Credit Quality - The allowance for credit losses on loans was $4.9 million as of September 30, 2025, down from $5.1 million at December 31, 2024 [21]. - Non-performing assets as a percentage of total assets decreased to 0.25% at September 30, 2025, compared to 0.55% at December 31, 2024 [21]. Balance Sheet Summary - Total assets increased by $57.3 million, or 8.4%, to $742.8 million as of September 30, 2025, compared to $685.5 million at December 31, 2024 [23]. - Stockholders' equity increased by $49.4 million, or 55.0%, to $139.3 million at September 30, 2025, primarily due to the completion of the second step conversion and offering [24].