Lake Shore Bancorp (LSBK) investor relations material

Executive summary

• Net income for Q2 2026 was $2.2 million ($0.29 per diluted share), up 13.2% year-over-year, driven by higher net interest income and improved net interest margin.

• For the first half of 2026, net income reached $4.1 million ($0.56 per diluted share), a 37.7% increase over the prior year period, reflecting strong core banking performance and effective cost management.

Financial highlights

• Net interest income for Q2 2026 rose 12.6% to $6.9 million; net interest margin improved to 4.06% from 3.84% year-over-year.

• Interest income increased 3.1% to $9.4 million, while interest expense decreased 16.4% to $2.5 million for the quarter.

• Non-interest income for Q2 was $749,000, down 6.4% due to lower gains on equity securities.

• Non-interest expense increased 5.4% to $4.9 million, mainly from higher employee benefits and occupancy costs.

• For the six months ended June 30, 2026, net interest income was $13.6 million (up 17.0%), and non-interest expense was $10.0 million (up 5.2%).

Outlook and guidance

• Management remains focused on organic deposit growth, prudent loan origination, and maintaining strong liquidity and capital positions.

• No material capital expenditures are anticipated for 2026; the bank expects to maintain sufficient liquidity and capital to meet obligations.