Lake Shore Bancorp, the Dunkirk-based holding company for Lake Shore Savings Bank, recorded a 30.2 percent decrease in its third-quarter net income, to $688,000 from $986,000 a year ago. Its diluted earnings per share were 12 cents, compared to 17 cents a year ago.
The bank’s net interest income from making loans and taking deposits declined 5.4 percent to $3.5 million from $3.7 million a year ago. Lake Shore said its interest income fell due to lower growth in residential mortgage lending, a reduced level of available-for-sale securities, and a continued low interest rate environment.
Its non-interest income dropped 2 percent to $531,000 from $541,000 a year ago. The decline was partly due to lower bank deposit service fees.
Meanwhile, Lake Shore’s non-interest expenses increased 6.5 percent, to $3.2 million, due to increased salary and benefit costs and data processing spending related to implementing updated banking systems.