Lake Shore Savings Bank’s first quarter net income fell 26.5 percent from a year ago, to $569,000.
The Dunkirk-based bank reported diluted earnings per share of 10 cents, down from 14 cents a year ago.
Lake Shore cited a few reasons for the drop in profits: lower net interest income, an increase in non-interest expense, an increase in income tax expense due to changes in the state bank franchise tax, and an increase in provision for loan losses.
Net interest income from taking deposits and making loans fell 3 percent from a year ago, while non-interest income from sources such as fees increased 11.3 percent.
Lake Shore’s annual meeting is scheduled for May 20 in Dunkirk.