Lake Shore Bancorp Inc. Reports Unaided Earnings Results for the Fourth Quarter and Year Ended December 31, 2014
January 29, 2015 at 12:32 pm
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Lake Shore Bancorp Inc. reported unaided earnings results for the fourth quarter and year ended December 31, 2014. For the period, the company reported interest income was $4,419,000 against $4,706,000 a year ago. Net interest income was $3,578,000 against $3,845,000 a year ago. Income before income taxes was $876,000 against $1,407,000 a year ago. Net income was $796,000 against $1,051,000 a year ago. Diluted earnings per share was $0.14 per share against $0.18 against a year ago. Return on average assets was 0.66% against $0.87% a year ago. Return on average equity was $4.49% against 6.36% year ago. Lower interest income for the quarter was the result of a 30 basis point decrease in the average interest rate for earning assets, reflecting a shift of a portion of the Banks interest earning assets into shorter-duration and lower yield liquid alternatives. Fourth quarter 2014 interest expense declined by $20,000 compared to fourth quarter 2013, a result of a $5.3 million decrease in the average balance of interest bearing liabilities.
For the year, the company reported interest income was $17,879,000 against $18,614,000 a year ago. Net interest income was $14,531,000 against $15,058,000 a year ago. Income before income taxes was $3,725,000 against $4,711,000 a year ago. Net income was $3,158,000 against $3,743,000 a year ago. Diluted earnings per share was $0.55 per share against $0.65 against a year ago. Return on average assets was 0.65% against $0.77% a year ago. Return on average equity was $4.58% against 5.64% year ago. The decline in net income for the quarter and year was largely attributable to the Banks ongoing strategy to better position its interest earning assets for a rising interest rate environment.
Lake Shore Bancorp, Inc. is the mid-tier holding company of Lake Shore Savings Bank (the Bank), a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has 11 full-service branch locations in Western New York, including five in Chautauqua County and six in Erie County. The Bank offers a range of retail and commercial lending and deposit services. The Bankâs principal business consists of attracting retail deposits from the general public in the areas surrounding its branch offices and investing those deposits, together with funds generated from operations, primarily in commercial real estate loans, one-to four-family residential mortgage loans, home equity lines of credit and, to a lesser extent, commercial business loans, consumer loans, and investment securities. Its primary sources of funds for lending and investments are deposits, borrowings, brokered deposits, receipts of principal and interest payments on loans and securities.