Lake Shore Bancorp Q1 Net Income Up 82% as NIM Rises to 4.02%
Lake Shore Bancorp reported first-quarter net income of $1.9 million ($0.26 per share), up 81.9% year-over-year, driven by a 21.9% rise in net interest income. Net interest margin climbed to 4.02%, efficiency ratio fell to 69.58%, and return on average assets reached 1.07%.
1. First-Quarter Financial Performance
Lake Shore Bancorp earned unaudited net income of $1.9 million, or $0.26 per diluted share, in Q1 2026, up 81.9% from $1.1 million, or $0.14 per share a year earlier. The increase reflects robust net interest income growth and stable deposit funding.
2. Net Interest Income and Margin
Net interest income rose 21.9% to $6.7 million, driven by higher loan yields and greater interest-earning asset balances. Net interest margin expanded to 4.02%, up 17 basis points sequentially and 53 basis points year-over-year.
3. Operational Efficiency and Asset Quality
The efficiency ratio improved to 69.58% from 78.82% a year ago. Return on average assets climbed to 1.07%, and non-performing assets fell to 0.22% of total assets.
4. Capital Strength
Book value per share edged up to $18.11 as of March 31, 2026. Tier 1 Leverage ratio stood at 17.54% and Total Risk-Based Capital ratio at 23.81%, maintaining a well-capitalized status.