Lake Shore Bancorp's first quarter profits fell 63 percent from a year ago, to $716,000 from $1.95 million, due to a sharp dropoff in gains from the sale of securities.
A year ago, Lake Shore benefited from a $1.6 million pre-tax gain on the sale of securities, compared to a securities sale gain of only $25,000 in the first quarter of this year.
The bank's net interest income from making loans and taking deposits increased 10 percent in the first quarter from a year ago, to $4.2 million, bolstered by growth in commercial real estate and commercial business loan portfolios.
Lake Shore more than doubled its provision for loan losses to $350,000 from $130,000 a year ago. The bank attributed the increase in the provision to setting aside general reserves on $19.6 million in new commercial loans originated during the first quarter of this year.
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