Lake Shore Bancorp (LSBK) investor relations material

Executive summary

• Net income rose to $1.9 million ($0.26 per diluted share) in Q1 2026, up 81.9% year-over-year, driven by higher net interest income.

• Net interest margin improved to 4.02%, up 53 basis points from Q1 2025 and 17 basis points sequentially.

• Efficiency ratio improved to 69.58% from 78.82% year-over-year, reflecting better operational efficiency.

• Return on average assets increased to 1.07% from 0.62% year-over-year.

Financial highlights

• Net interest income was $6.7 million, up 21.9% year-over-year and 0.6% sequentially.

• Interest income was $9.1 million, up 8.2% year-over-year but down 4.3% sequentially due to lower average balances.

• Interest expense decreased 17.5% year-over-year and 15.5% sequentially, reflecting lower deposit and borrowing costs.

• Non-interest income was $703,000, down 2.9% year-over-year but up 2.9% sequentially.

• Non-interest expense rose 5.0% year-over-year and 4.1% sequentially, mainly due to higher health insurance and occupancy costs.

• Income tax expense increased 108.7% year-over-year, in line with higher taxable income.

Outlook and guidance

• Management remains focused on optimizing the balance sheet and operational efficiencies amid competitive and challenging loan pricing environments.