Core net interest margin expansion and improving efficiency are positive, but the YoY earnings decline from non-recurring items and a higher provision for credit losses cap the upside. Watch for loan growth trajectory and credit quality trends in coming quarters.
Price Chart
Executive Summary
Lake Shore Bancorp reported Q3 2026 net income of $2.3M ($0.31/diluted share), a slight 1.9% YoY decline from $2.4M ($0.32) in Q3 2025, driven by a one-time death benefit on BOLI in the prior year and a higher provision for credit losses. Core trends were positive: net interest income rose 12.4% YoY to $7.1M, net interest margin expanded 45bp to 4.17%, and the efficiency ratio improved to 60.95%. The company also repurchased 105,090 shares at an average cost of $17.92 during the quarter.
Key Financial Metrics
Key Facts
- Q3 2026 net income of $2.3M ($0.31/diluted) vs $2.4M ($0.32) in Q3 2025, a 1.9% decline
- Net interest income rose 12.4% YoY to $7.1M; net interest margin expanded 45bp to 4.17%
- Provision for credit losses was $290K in Q3 2026 vs a credit of $269K in Q3 2025
- Non-interest income fell 25.6% YoY to $792K, primarily due to a one-time BOLI death benefit in Q3 2025
- Efficiency ratio improved to 60.95% from 65.26% a year ago
- Repurchased 105,090 shares at avg cost of $17.92 during Q3 2026
- Book value per share $18.20 at Sep 30, 2026 vs $18.10 at Dec 31, 2025
- Bank remains well-capitalized: Tier 1 Leverage 17.56%, Total Risk-Based Capital 23.89%
Financial Impact
Q3 2026 net income $2.3M, EPS $0.31; net interest margin 4.17%; efficiency ratio 60.95%
Risk Factors
- Higher provision for credit losses ($290K vs credit of $269K in Q3 2025) driven by qualitative factor adjustments
- Non-performing assets increased slightly to 0.24% of total assets from 0.23% at year-end 2025
- Uninsured deposits rose to 13.5% of total deposits from 11.3% at Dec 31, 2025
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-427891 |
| Document: lsbk-20261021.htm | 0001193125-26-427891 |
| Document: 0001193125-26-427891-index-headers.html | 0001193125-26-427891 |
| Document: 0001193125-26-427891-index.html | 0001193125-26-427891 |
| Document: 0001193125-26-427891.txt | 0001193125-26-427891 |
| 8-K Data (Synthetic) | 0001193125-26-427891 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | 8-K | $18.61 | awaiting T+60 | — | $18.92 (+1.69%) |
Oct 21, 2026 5d ago | 8-K | $18.71 | awaiting T+60 | — | $18.92 (+1.15%) |
Oct 21, 2026 5d ago | Press Release | $18.71 | awaiting T+60 | — | $18.92 (+1.15%) |
Jul 24, 2026 13w ago | 8-K | $17.20 $18.12 | ▲ +5.35% | ▲ +1.62% | $18.92 (+10.03%) |
Jul 24, 2026 13w ago | Press Release | $17.20 $18.12 | ▲ +5.35% | ▲ +1.62% | $18.92 (+10.03%) |
Jul 22, 2026 13w ago | Press Release | $17.02 $18.12 | ▲ +6.46% | ▲ +1.91% | $18.92 (+11.19%) |
May 20, 2026 22w ago | 8-K | $15.73 $17.16 | ▲ +9.09% | ▲ +4.09% | $18.92 (+20.31%) |
Apr 24, 2026 26w ago | 8-K | $15.86 $17.01 | ▲ +7.25% | ▲ +2.47% | $18.92 (+19.32%) |
Apr 22, 2026 26w ago | 8-K | $15.76 $17.09 | ▲ +8.43% | ▲ +3.42% | $18.92 (+20.08%) |
Apr 22, 2026 26w ago | Press Release | $15.76 $17.09 | ▲ +8.43% | ▲ +3.42% | $18.92 (+20.08%) |
US Market Status
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