Lake Shore Bancorp, Inc., the holding company of Lake Shore Savings Bank, reported unaudited net income of $1.8 million, or $0.31 per diluted share, for the fourth quarter of 2021, versus profit net income of $1.2 million, or $0.21 per diluted share, for the fourth quarter of 2020. For the year ended December 31, 2021, the company reported unaudited net income of $6.2 million , or $1.05 per diluted share, compared to $4.6 million, or $0.77 per diluted share, for the year ended Dec. 31, 2020.
The company also reported:
¯ Fourth quarter net earnings of $1.8 million increased $572,000, or 46.0%, from the fourth quarter of 2020. Fourth quarter 2021 net earnings were positively impacted by an increase net interest income and a lower provision for loan losses, partially offset by lower non-interest income and higher income tax expense.
¯ Net income of $6.2 million for the year ended December 31, 2021 increased $1.6 million, or 35.8%, from the year ended 2020. Net income of 2021 was positively impacted by increased net interest income and non-interest income and a decrease in loan loss provision, partially offset by increases in non-interest expense and income tax expense.
¯ Total assets at December 31, 2021 increased by $27.9 million, or 4.1%, to $714.1 million from December 31, 2020, primarily due to an increase in cash and cash equivalents due to the growth in deposits. This increase is also attributable to an increase in available-for-sale securities, partially offset by a decrease in loans receivable, net≥ Total deposits increased by $33.5 million, or 6.0%, to 593 $.7 million as of December 31, compared to 2020, primarily due to core deposit growth.
¯ Share buybacks of $2.3 million, representing the repurchase of 150,542 shares at an average cost per share of $14.98, were completed during the year ended December 31, 2021.
¯ Cash dividend payments of $1.0 million were made to shareholders during the year ended December 31, 2021, resulting in an annual dividend per share of $0.54, an increase 10.2% compared to last year.
¯ Book value per share increased 4.7% to $15.45 per share as of December 31, 2021, compared to $14.75 per share as of December 31, 2020.
“We are extremely pleased to report significant growth in total assets and net income in 2021,” said Daniel P. Reininga, President and CEO. “We surpassed the $700 million threshold for total assets in 2021 thanks to our continued commitment to understanding the individual needs of our customers and integrating new technologies for treatment efficiency, while withstanding the challenges of the current interest rate environment and the intense competition in our market as a whole. .”
In 2021, the bank issued 33 Small Business Administration Paycheck Protection Program loans for $11.4 million to help mitigate the ongoing economic impact of the COVID-19 pandemic on small businesses. companies in our markets. These loans are in addition to the 252 PPP loans totaling $26.9 million made by the Bank in 2020. The SBA’s PPP loan program ended on May 31. As of December 31, $4.6 million in PPP loans issued in 2021 were still outstanding. on the Bank’s balance sheet. All PPP loans issued in 2020 had been canceled by December 31.