Lake Shore Bancorp Inc (LSBK) Reports Q3 2023 Earnings
Net income for Q3 2023 stood at $1.6 million, a decrease of 11.3% from Q3 2022.
Net income for the first nine months of 2023 was $4.1 million, a decrease of 9.9% from the same period in 2022.
Net interest income decreased by 0.8% to $6.3 million in Q3 2023 compared to Q3 2022.
Total deposits increased by $14.0 million, or 2.5% since December 31, 2022.
Lake Shore Bancorp Inc (NASDAQ:LSBK) released its earnings report for the third quarter of 2023 on October 26, 2023. The company reported a net income of $1.6 million, or $0.27 per diluted share, marking a decrease of 11.3% compared to the net income of $1.8 million, or $0.30 per diluted share, for the third quarter of 2022. For the first nine months of 2023, the company reported a net income of $4.1 million, or $0.69 per diluted share, compared to $4.5 million, or $0.77 per diluted share, for the same period in 2022.
Financial Highlights
Despite the decrease in net income, Lake Shore Bancorp Inc (NASDAQ:LSBK) reported several financial highlights. The company's net interest income decreased by $50,000, or 0.8%, to $6.3 million during the 2023 third quarter as compared to the 2022 third quarter. However, net interest income increased by $1.0 million, or 5.7%, to $18.8 million during the first nine months of 2023 as compared to $17.8 million during the first nine months of 2022.
Furthermore, the company's total deposits increased by $14.0 million, or 2.5% since December 31, 2022. At September 30, 2023 and December 31, 2022, the companys percentage of uninsured deposits to total deposits was 12.4% and 16.6%, respectively.
Company's Commentary
Lake Shore delivered solid results for the third quarter despite significant expenses related to our efforts to remediate previously disclosed regulatory matters, stated Kim Liddell, President, CEO, and Director. We continue to look for opportunities to effectively manage expense and improve results for our shareholders. Deposit competition remains fierce and continues to be at the forefront of our focus.
Financial Tables
The company's balance sheet summary showed that total assets at September 30, 2023 were $713.6 million, a $13.6 million increase, or 2.0%, as compared to $699.9 million at December 31, 2022. Cash and cash equivalents increased by $36.4 million, or 377.5%, from $9.6 million at December 31, 2022 to $46.0 million at September 30, 2023.
Meanwhile, the company's income statement showed that interest income for the 2023 third quarter was $8.7 million, an increase of $1.8 million, or 26.1%, compared to $6.9 million for the 2022 third quarter. Interest expense for the first nine months of 2023 was $6.3 million, an increase of $4.9 million, or 325.1%, from $1.5 million for the first nine months of 2022.
Despite the challenges faced, Lake Shore Bancorp Inc (NASDAQ:LSBK) continues to focus on improving results for its shareholders and managing expenses effectively.
Explore the complete 8-K earnings release (here) from Lake Shore Bancorp Inc for further details.
This article first appeared on GuruFocus.
