Lake Shore Bancorp reported net income of $1.96 million in the first quarter, up sharply from $569,000 a year earlier.
The Dunkirk-based holding company for Lake Shore Savings Bank benefited from a $1.1 million after-tax gain on the sale of $14.1 million worth of securities.
“We plan to convert the sale proceeds into commercial loans over a 12-month period, which will assist small businesses and commercial customers in our local market areas, as well as shorten the duration of our interest-earning assets, improve our interest rate risk position and stabilize our net interest margin,” said Daniel P. Reininga, president and CEO, in a statement.
Lake Shore’s net interest income from making loans and taking deposits increased 4.5 percent to $3.8 million. Its non-interest income was $2.2 million, up from $534,000 a year ago.
The bank reported diluted earnings per share of 33 cents, compared to 10 cents a year earlier.