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Get filing alertsLake Shore Bancorp Q2 earnings rise 13% to $2.2M on margin expansion, credit quality
Filed July 22, 2026 · Period ending July 22, 2026 · ~1 min read
Key Changes
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high
Q2 2026 net income $2.2M ($0.29/share), up 13.2% YoY from $1.9M ($0.25/share), driven by $771K (12.6%) increase in net interest income to $6.9M.
Exhibit 99.1 view on EDGAR → -
high
Net interest margin expanded 22 basis points YoY to 4.06%, reflecting higher asset yields and 33-bp decline in funding costs from deposit repricing.
Exhibit 99.1 view on EDGAR → -
medium
Non-performing assets fell to 0.20% of total assets from 0.23% at year-end 2025; allowance coverage of NPLs strengthened to 331.85% from 290.71%.
Exhibit 99.1 view on EDGAR → -
medium
Book value per share rose 1.7% to $18.41 from $18.10 at year-end, driven by $4.1M first-half net income partially offset by $1.3M in dividends.
Exhibit 99.1 view on EDGAR → -
medium
Bank remains well-capitalized with Tier 1 Leverage ratio 17.43% and Total Risk-Based Capital ratio 24.04%, well above regulatory minimums.
Exhibit 99.1 view on EDGAR →
Summary
Lake Shore Bancorp reported solid Q2 2026 results, with net income rising 13% year-over-year to $2.2 million ($0.29 per share) on the strength of margin expansion and credit quality improvement. The 22-basis-point year-over-year expansion in net interest margin to 4.06% reflects both higher yields on earning assets and lower funding costs as deposits repriced downward in a falling-rate environment.
Net interest income grew $771,000 (12.6%) to $6.9 million, the primary driver of earnings growth. Credit quality improved, with non-performing assets declining to 0.20% of total assets and allowance coverage of NPLs strengthening to 332%. Book value per share rose 1.7% to $18.41, supported by $4.1 million in first-half earnings net of $1.3 million in dividends.
The bank's capital ratios remain well above regulatory thresholds, providing capacity for growth and shareholder returns. The combination of margin expansion, clean credit metrics, and strong capital positions the franchise well for continued profitability.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
unaudited net income of $2.2 million, or $0.29 per diluted share, for the second quarter of 2026 compared to net income of $1.9 million, or $0.25 per diluted share, for the second quarter of 2025
Lake Shore Bancorp earned $2.2 million ($0.29 per diluted share) in Q2 2026, up 13.2% from $1.9 million ($0.25 per share) in Q2 2025. The improvement was driven primarily by higher net interest income, which rose $771,000 (12.6%) year-over-year to $6.9 million, reflecting both higher average interest-earning asset balances and a 22-basis-point expansion in net interest margin to 4.06%.
Added in current filing · view on EDGAR →
Net interest margin increased to 4.06% during the second quarter of 2026, an increase of four basis points when compared to net interest margin of 4.02% during the first quarter of 2026 and an increase of 22 basis points when compared to net interest margin of 3.84% during the second quarter of 2025
Net interest margin improved to 4.06% in Q2 2026, up 4 basis points sequentially and 22 basis points year-over-year. The expansion reflects both higher yields on interest-earning assets and lower funding costs, as the average rate paid on interest-bearing liabilities fell 33 basis points year-over-year due to deposit repricing and lower market rates.
Added in current filing · view on EDGAR →
Non-performing assets as a percentage of total assets decreased to 0.20% at June 30, 2026, as compared to 0.23% at December 31, 2025
Non-performing assets fell to 0.20% of total assets at June 30, 2026, down from 0.23% at year-end 2025, driven by a $250,000 (14.9%) decline in absolute non-performing assets. The allowance for credit losses on loans as a percent of non-performing loans strengthened to 331.85% from 290.71%, indicating improved coverage.
Added in current filing · view on EDGAR →
Book value per share increased 1.7% to $18.41 per share at June 30, 2026, as compared to $18.10 per share at December 31, 2025
Book value per share rose 1.7% to $18.41 at June 30, 2026, from $18.10 at year-end 2025. Stockholders' equity increased $3.1 million (2.2%) to $144.8 million, driven by $4.1 million in first-half net income, partially offset by $1.3 million in dividends declared and paid.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify