Lake Shore Bancorp said third-quarter profits soared 60 percent, as revenues grew because of higher loan originations and the bank's new fee-based overdraft protection service.
The Dunkirk-based parent of Lake Shore Savings Bank reported earnings of $867,000, or 14 cents per share, up from $542,000, or 9 cents per share, a year ago.
"Despite the current economic environment, we continue to offer loans and competitive interest rtes on deposits to our customers and our capital position remains strong," President and CEO David C. Mancuso said in a press release.
Net interest income rose 15.6 percent to $2.87 million, as the profit margin widened and average loans grew 9 percent to $231.5 million while deposits grew 10.5 percent even though interest paid on deposits fell.
The savings bank set aside $150,000 for loan losses, versus no provision a year ago, because of a $5.9 million increase in residential loans and concern about a single commercial loan.
Fees rose 29.3 percent to $685,000, mainly due to the launch of the bank's new fee-based overdraft service in February. Expenses rose 4.4 percent to $2.4 million, partly due to higher occupancy and equipment costs due to maintenance and repairs. Advertising and professional fees related to collections also increased, and the bank recorded a $12,000 expense to take out an outdated ATM that was not fully depreciated.