Lake Shore Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Lake Shore Bancorp (NASDAQ: LSBK) reported Q1 2026 net income of $1.9 million ($0.26 diluted EPS), up 81.9% vs Q1 2025. Net interest income rose 21.9% and net interest margin improved to 4.02%. Efficiency ratio improved to 69.58% and the bank remains well capitalized.
Total assets were $722.0 million and tangible book value per share was $18.11 at March 31, 2026.
Positive
- Net income +81.9% YoY to $1.9M
- Net interest income +21.9% YoY
- Net interest margin 4.02% (Q1 2026)
- Efficiency ratio improved to 69.58%
- Tier 1 leverage 17.54% (well capitalized)
Negative
- Total assets down 0.7% QoQ to $722.0M
- Deposits down $6.7M (1.2%) QoQ
- Non-interest expense +5.0% YoY to $5.1M
- Accumulated other comprehensive loss increased $689K
News Market Reaction – LSBK
In the Apr 23 session, LSBK declined 0.56%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Oct 22 | Quarterly earnings | Positive | +1.8% | Q3 2025 net income up, NIM 3.72% and stronger capital metrics. |
| Jul 23 | Quarterly earnings | Positive | +1.2% | Q2 2025 net income up 72% YoY and NIM to 3.84%. |
| Apr 29 | Quarterly earnings | Positive | +0.8% | Q1 2025 net income growth with improved NIM and capital ratios. |
| Jan 24 | Quarterly & annual earnings | Positive | -2.4% | Q4 2024 and full-year results with higher NIM and lower funding. |
| Oct 23 | Quarterly earnings | Positive | -1.5% | Q3 2024 net income and NIM improvement amid funding changes. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have generally been positive fundamentally and often met with small gains, though two recent reports saw modest selloffs despite solid metrics.
Over the past five earnings cycles, Lake Shore Bancorp has reported consistent improvement in profitability and balance sheet strength. Net income and diluted EPS have trended higher, helped by expanding net interest margin (up to 3.84% in Q2 2025 and 3.72% in Q3 2025) and strong capital ratios, including Tier 1 leverage in the mid-teens. Asset quality improved, with non-performing assets declining toward 0.24–0.25% of total assets and book value per share climbing from the mid-teens to $17.80. Today’s Q1 2026 results continue this profitability and efficiency narrative.
Key Terms
net interest margin financial
efficiency ratio financial
return on average assets financial
tier 1 leverage ratio financial
total risk-based capital ratio financial
allowance for credit losses financial
non-performing assets financial
employee stock ownership plan financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
DUNKIRK, N.Y., April 22, 2026 (GLOBE NEWSWIRE) -- Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Bank (the “Bank”), reported unaudited net income of
"The results from the first quarter reflected a typical beginning of the year for our company," stated Kim C. Liddell, President, CEO, and Director. "Despite intense competition and challenging loan pricing environments, we remain dedicated to optimizing our balance sheet and operational efficiencies to enhance the Company’s overall performance."
First Quarter 2026 Financial Highlights:
- Net income increased to
$1.9 million during the first quarter of 2026, an increase of$866,000 , or81.9% , when compared to the first quarter of 2025. Net income was positively impacted by an increase in net interest income of$1.2 million , or21.9% , when compared to the first quarter of 2025; - Net interest margin increased to
4.02% during the first quarter of 2026, an increase of 17 basis points when compared to net interest margin of3.85% during the fourth quarter of 2025 and an increase of 53 basis points when compared to net interest margin of3.49% during the first quarter of 2025; - Efficiency ratio improved to
69.58% for the quarter ended March 31, 2026, a decrease of 924 basis points as compared to78.82% for the quarter ended March 31, 2025; - Return on average assets increased to
1.07% for the quarter ended March 31, 2026, an increase of 45 basis points as compared to0.62% for the quarter ended March 31, 2025; - Book value per share increased to
$18.11 per share at March 31, 2026, as compared to$18.10 per share at December 31, 2025; - Non-performing assets as a percentage of total assets decreased to
0.22% at March 31, 2026, as compared to0.23% at December 31, 2025; and - The Bank's capital position remains "well capitalized" with a Tier 1 Leverage ratio of
17.54% and a Total Risk-Based Capital ratio of23.81% at March 31, 2026.
Net Interest Income
Net interest income for the first quarter of 2026 increased by
Interest income for the first quarter of 2026 was
The decrease in interest income from the prior quarter was primarily due to a
The increase in interest income from the prior year quarter was primarily due to a
Interest expense for the first quarter of 2026 was
The decrease in interest expense when compared to the previous quarter was primarily due to a
The decrease in interest expense when compared to the prior year quarter was primarily due to a 36 basis point decrease in average interest rate paid on interest-bearing liabilities, and a
Non-Interest Income
Non-interest income was
Non-Interest Expense
Non-interest expense was
Income Tax Expense
Income tax expense was
Credit Quality
The Company’s allowance for credit losses on loans was
The Company recorded a credit to provision for credit losses of
The decrease in the allowance for credit losses on loans and the corresponding credit to the provision for credit losses recognized during the first quarter of 2026 was the result of a decrease in the quantitative and qualitative loss rates, inclusive of forecasted economic trends, primarily for the commercial real estate and home equity loan pools.
Balance Sheet Summary
Total assets at March 31, 2026 were
Stockholders’ equity at March 31, 2026 was
About Lake Shore
Lake Shore Bancorp is the holding company of Lake Shore Bank, a New York chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. Lake Shore Bancorp’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about Lake Shore Bancorp is available at www.mylsbank.com.
Safe-Harbor
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, tariffs, unanticipated changes in our liquidity position, climate change, public health issues, geopolitical conflict, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, dividend policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.
Source: Lake Shore Bancorp, Inc.
Category: Financial
Investor Relations/Media Contact
Kim C. Liddell
President, CEO, and Director
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1012
Selected Financial Condition Data
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| (Dollars in thousands) | |||||||
| Total assets | $ | 722,011 | $ | 727,323 | |||
| Cash and cash equivalents | 61,607 | 64,280 | |||||
| Securities available for sale, at fair value | 54,179 | 56,138 | |||||
| Loans receivable, net | 553,879 | 555,441 | |||||
| Deposits | 566,620 | 573,277 | |||||
| Stockholders’ equity | 142,378 | 141,639 | |||||
Statements of Income
| Three Months Ended | |||||||
| March 31, | |||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| (Dollars in thousands, except per share amounts) | |||||||
| Interest income | $ | 9,055 | $ | 8,367 | |||
| Interest expense | 2,395 | 2,902 | |||||
| Net interest income | 6,660 | 5,465 | |||||
| Provision for credit losses | (113 | ) | 48 | ||||
| Net interest income after provision for credit losses | 6,773 | 5,417 | |||||
| Total non-interest income | 703 | 724 | |||||
| Total non-interest expense | 5,123 | 4,878 | |||||
| Income before income taxes | 2,353 | 1,263 | |||||
| Income tax expense | 430 | 206 | |||||
| Net income | $ | 1,923 | $ | 1,057 | |||
| Basic and diluted earnings per share(1) | $ | 0.26 | $ | 0.14 | |||
| Dividends declared and paid per share(1) | $ | 0.09 | $ | 0.13 | |||
| Selected Financial Ratios | |||||||
| Return on average assets(2) | 1.07 | % | 0.62 | % | |||
| Return on average equity(2) | 5.38 | % | 4.65 | % | |||
| Average interest-earning assets to average interest-bearing liabilities | 140.76 | % | 129.52 | % | |||
| Interest rate spread(2) | 3.43 | % | 2.94 | % | |||
| Net interest margin(2) | 4.02 | % | 3.49 | % | |||
| Efficiency ratio | 69.58 | % | 78.82 | % | |||
(1) Per share information reflects the effects of the Company's conversion and related stock offering for all periods presented, as applicable.
(2) Annualized.
Average Balance Sheets, Interest, and Rates (Quarterly Comparison)
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
| Average | Interest Income/ | Yield/ | Average | Interest Income/ | Yield/ | ||||||||||||||||
| Balance | Expense | Rate(2) | Balance | Expense | Rate(2) | ||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Interest-earning deposits | $ | 54,061 | $ | 469 | 3.47 | % | $ | 23,562 | $ | 234 | 3.97 | % | |||||||||
| Securities(1) | 57,052 | 354 | 2.48 | % | 57,804 | 381 | 2.64 | % | |||||||||||||
| Loans, including fees | 551,119 | 8,232 | 5.97 | % | 545,561 | 7,752 | 5.68 | % | |||||||||||||
| Total interest-earning assets | 662,232 | $ | 9,055 | 5.47 | % | 626,927 | $ | 8,367 | 5.34 | % | |||||||||||
| Other assets | 53,328 | 51,656 | |||||||||||||||||||
| Total assets | $ | 715,560 | $ | 678,583 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Demand & NOW accounts | $ | 62,384 | $ | 15 | 0.10 | % | $ | 62,784 | $ | 15 | 0.10 | % | |||||||||
| Money market accounts | 156,226 | 735 | 1.88 | % | 152,680 | 867 | 2.27 | % | |||||||||||||
| Savings accounts | 51,263 | 8 | 0.06 | % | 53,541 | 9 | 0.07 | % | |||||||||||||
| Time deposits | 198,245 | 1,614 | 3.26 | % | 208,804 | 1,951 | 3.74 | % | |||||||||||||
| Total interest-bearing deposits | 468,118 | 2,372 | 2.03 | % | 477,809 | 2,842 | 2.38 | % | |||||||||||||
| Borrowed funds & other interest-bearing liabilities | 2,342 | 23 | 3.93 | % | 6,237 | 60 | 3.85 | % | |||||||||||||
| Total interest-bearing liabilities | 470,460 | $ | 2,395 | 2.04 | % | 484,046 | $ | 2,902 | 2.40 | % | |||||||||||
| Other non-interest bearing liabilities | 102,013 | 103,593 | |||||||||||||||||||
| Stockholders' equity | 143,087 | 90,944 | |||||||||||||||||||
| Total liabilities & stockholders' equity | $ | 715,560 | $ | 678,583 | |||||||||||||||||
| Net interest income | $ | 6,660 | $ | 5,465 | |||||||||||||||||
| Interest rate spread | 3.43 | % | 2.94 | % | |||||||||||||||||
| Net interest margin | 4.02 | % | 3.49 | % | |||||||||||||||||
(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of
(2) Annualized.
Average Balance Sheets, Interest, and Rates (Prior Quarter Comparison)
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||
| Average | Interest Income/ | Yield/ | Average | Interest Income/ | Yield/ | ||||||||||||||||
| Balance | Expense | Rate(2) | Balance | Expense | Rate(2) | ||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Interest-earning deposits | $ | 54,061 | $ | 469 | 3.47 | % | $ | 77,155 | $ | 752 | 3.90 | % | |||||||||
| Securities(1) | 57,052 | 354 | 2.48 | % | 56,992 | 360 | 2.53 | % | |||||||||||||
| Loans, including fees | 551,119 | 8,232 | 5.97 | % | 554,172 | 8,345 | 6.02 | % | |||||||||||||
| Total interest-earning assets | 662,232 | $ | 9,055 | 5.47 | % | 688,319 | $ | 9,457 | 5.50 | % | |||||||||||
| Other assets | 53,328 | 52,773 | |||||||||||||||||||
| Total assets | $ | 715,560 | $ | 741,092 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Demand & NOW accounts | $ | 62,384 | $ | 15 | 0.10 | % | $ | 64,047 | $ | 15 | 0.09 | % | |||||||||
| Money market accounts | 156,226 | 735 | 1.88 | % | 167,908 | 917 | 2.18 | % | |||||||||||||
| Savings accounts | 51,263 | 8 | 0.06 | % | 51,658 | 9 | 0.07 | % | |||||||||||||
| Time deposits | 198,245 | 1,614 | 3.26 | % | 208,982 | 1,853 | 3.55 | % | |||||||||||||
| Total interest-bearing deposits | 468,118 | 2,372 | 2.03 | % | 492,595 | 2,794 | 2.27 | % | |||||||||||||
| Borrowed funds & other interest-bearing liabilities | 2,342 | 23 | 3.93 | % | 4,014 | 41 | 4.09 | % | |||||||||||||
| Total interest-bearing liabilities | 470,460 | $ | 2,395 | 2.04 | % | 496,609 | $ | 2,835 | 2.28 | % | |||||||||||
| Other non-interest bearing liabilities | 102,013 | 103,679 | |||||||||||||||||||
| Stockholders' equity | 143,087 | 140,804 | |||||||||||||||||||
| Total liabilities & stockholders' equity | $ | 715,560 | $ | 741,092 | |||||||||||||||||
| Net interest income | $ | 6,660 | $ | 6,622 | |||||||||||||||||
| Interest rate spread | 3.43 | % | 3.22 | % | |||||||||||||||||
| Net interest margin | 4.02 | % | 3.85 | % | |||||||||||||||||
(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of
(2) Annualized.
Selected Quarterly Financial Data
| As of or For the Three Months Ended | |||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Selected Financial Condition Data: | |||||||||||||||||||
| Total assets | $ | 722,011 | $ | 727,323 | $ | 742,802 | $ | 734,838 | $ | 688,996 | |||||||||
| Cash and cash equivalents | 61,607 | 64,280 | 83,638 | 75,367 | 30,428 | ||||||||||||||
| Securities, at fair value | 54,179 | 56,138 | 56,049 | 55,323 | 55,801 | ||||||||||||||
| Loans receivable, net | 553,879 | 555,441 | 552,611 | 552,389 | 551,640 | ||||||||||||||
| Deposits | 566,620 | 573,277 | 590,345 | 627,499 | 582,730 | ||||||||||||||
| Long-term debt | — | — | 2,000 | 2,000 | 4,000 | ||||||||||||||
| Stockholders’ equity | 142,378 | 141,639 | 139,306 | 92,884 | 90,662 | ||||||||||||||
| Condensed Statements of Income: | |||||||||||||||||||
| Interest income | $ | 9,055 | $ | 9,457 | $ | 9,351 | $ | 9,107 | $ | 8,367 | |||||||||
| Interest expense | 2,395 | 2,835 | 2,996 | 2,985 | 2,902 | ||||||||||||||
| Net interest income | 6,660 | 6,622 | 6,355 | 6,122 | 5,465 | ||||||||||||||
| Provision for credit losses | (113 | ) | 40 | (269 | ) | — | 48 | ||||||||||||
| Net interest income after provision for credit losses | 6,773 | 6,582 | 6,624 | 6,122 | 5,417 | ||||||||||||||
| Total non-interest income | 703 | 683 | 1,065 | 800 | 724 | ||||||||||||||
| Total non-interest expense | 5,123 | 4,920 | 4,843 | 4,625 | 4,878 | ||||||||||||||
| Income before income taxes | 2,353 | 2,345 | 2,846 | 2,297 | 1,263 | ||||||||||||||
| Income tax expense | 430 | 411 | 487 | 378 | 206 | ||||||||||||||
| Net income | $ | 1,923 | $ | 1,934 | $ | 2,359 | $ | 1,919 | $ | 1,057 | |||||||||
| Basic and diluted earnings per share(1) | $ | 0.26 | $ | 0.26 | $ | 0.32 | $ | 0.25 | $ | 0.14 | |||||||||
| Dividends declared and paid per share(1) | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | — | $ | 0.13 | |||||||||
| Selected Financial Ratios: | |||||||||||||||||||
| Return on average assets(2) | 1.07 | % | 1.04 | % | 1.28 | % | 1.11 | % | 0.62 | % | |||||||||
| Return on average equity(2) | 5.38 | % | 5.49 | % | 7.31 | % | 8.37 | % | 4.65 | % | |||||||||
| Average interest-earning assets to average interest-bearing liabilities | 140.76 | % | 138.60 | % | 139.79 | % | 128.12 | % | 129.52 | % | |||||||||
| Interest rate spread(2) | 3.43 | % | 3.22 | % | 3.02 | % | 3.32 | % | 2.94 | % | |||||||||
| Net interest margin(2) | 4.02 | % | 3.85 | % | 3.72 | % | 3.84 | % | 3.49 | % | |||||||||
| Efficiency ratio | 69.58 | % | 67.35 | % | 65.26 | % | 66.82 | % | 78.82 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Non-performing loans as a percent of loans at amortized cost | 0.28 | % | 0.30 | % | 0.33 | % | 0.32 | % | 0.62 | % | |||||||||
| Non-performing assets as a percent of total assets | 0.22 | % | 0.23 | % | 0.25 | % | 0.24 | % | 0.50 | % | |||||||||
| Allowance for credit losses on loans as a percent of loans at amortized cost | 0.86 | % | 0.87 | % | 0.87 | % | 0.93 | % | 0.93 | % | |||||||||
| Allowance for credit losses on loans as a percent of non-performing loans | 302.76 | % | 290.71 | % | 265.57 | % | 290.53 | % | 148.89 | % | |||||||||
| Share Information: | |||||||||||||||||||
| Common stock, number of shares outstanding(1) | 7,863,388 | 7,825,388 | 7,825,501 | 7,803,102 | 7,804,593 | ||||||||||||||
| Treasury stock, number of shares held(1) | — | — | — | 1,459,691 | 1,458,200 | ||||||||||||||
| Book value per share(1) | $ | 18.11 | $ | 18.10 | $ | 17.80 | $ | 11.90 | $ | 11.62 | |||||||||
| Tier 1 leverage ratio (Bank-only) | 17.54 | % | 16.65 | % | 16.34 | % | 14.37 | % | 14.31 | % | |||||||||
| Total risk-based capital ratio (Bank-only) | 23.81 | % | 23.51 | % | 22.76 | % | 18.94 | % | 18.67 | % | |||||||||
(1) Share and per share information reflects the effects of the Company's conversion and related stock offering for all periods presented, as applicable.
(2) Annualized.
