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Lake Shore Bancorp, Inc. Announces

Third Quarter 2026 Financial Results

DUNKIRK, N.Y. — October 21, 2026 — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Bank (the “Bank”), reported unaudited net income of $2.3 million, or $0.31 per diluted share, for the third quarter of 2026 compared to net income of $2.4 million, or $0.32 per diluted share, for the third quarter of 2025. For the first nine months of 2026, unaudited net income was $6.4 million, or $0.87 per diluted share, versus $5.3 million, or $0.70 per diluted share, in 2025. Higher net interest income benefited third-quarter and nine-month 2026 results, partly offset by a higher provision for credit losses. The modest year-over-year decline in third-quarter net income and diluted earnings per share primarily was attributed to two one-time, nonrecurring, non-interest income events recognized in third-quarter 2025.

"I am pleased with our third quarter results and our continued focus on core banking operations, expanding net interest margin, and disciplined expense management,” said Kim C. Liddell, President and CEO. “We aim to build on this momentum while preserving a strong capital position and supporting our customers, communities, and stockholders."

Third Quarter 2026 and Year-to-Date Financial Highlights:

• When compared to the second quarter of 2026, net income increased to $2.3 million during the third quarter of 2026, an increase of $141,000, or 6.5%. Net income was positively impacted by an increase in net interest income of $248,000, or 3.6%, when compared to the second quarter of 2026;

• When compared to the third quarter of 2025, net income decreased to $2.3 million during the third quarter of 2026, a decrease of $45,000, or 1.9%. While net income was positively impacted by an increase in net interest income of $786,000, or 12.4%, it was more than offset by an increase in the provision for credit losses of $559,000, and a decrease in non-interest income of $273,000, or 25.6%, which included a one-time death benefit on bank-owned life insurance;

• Net income increased to $6.4 million during the first nine months of 2026, an increase of $1.1 million, or 20.1%, when compared to the first nine months of 2025. Net income was positively impacted by an increase in net interest income of $2.8 million, or 15.3%, when compared to the first nine months of 2025;

• Net interest margin increased to 4.17% during the third quarter of 2026, an increase of 11 basis points when compared to net interest margin of 4.06% during the second quarter of 2026 and an increase of 45 basis points when compared to net interest margin of 3.72% during the third quarter of 2025;

• Efficiency ratio improved to 60.95% for the quarter ended September 30, 2026, a decrease of 282 basis points as compared to 63.77% for the quarter ended June 30, 2026 and a decrease of 431 basis points when compared to 65.26% for the quarter ended September 30, 2025;

• Repurchased 105,090 shares of common stock under the Company's share repurchase plan, for an average cost of $17.92 per share, inclusive of fees and costs, during the third quarter of 2026;

• Annualized return on average assets increased to 1.25% for the quarter ended September 30, 2026, an increase of six basis points as compared to 1.19% for the quarter ended June 30, 2026;

• Book value per share increased 0.6% to $18.20 per share at September 30, 2026, as compared to $18.10 per share at December 31, 2025;

• Non-performing assets as a percentage of total assets increased slightly to 0.24% at September 30, 2026, as compared to 0.23% at December 31, 2025; and

• The Bank's capital position remains "well capitalized" with a Tier 1 Leverage ratio of 17.56% and a Total Risk-Based Capital ratio of 23.89% at September 30, 2026.

Net Interest Income

Net interest income for the third quarter of 2026 increased by $248,000, or 3.6%, to $7.1 million as compared to $6.9 million for the second quarter of 2026 and increased $786,000, or 12.4%, as compared to $6.4 million for the third quarter of 2025. Annualized net interest margin was 4.17% for the third quarter of 2026, as compared to 4.06% for the second quarter of 2026 and 3.72% for the third quarter of 2025.

Net interest income for the first nine months of 2026 increased $2.8 million, or 15.3%, to $20.7 million as compared to $17.9 million for the first nine months of 2025. Annualized net interest margin was 4.08% for the first nine months of 2026, as compared to 3.68% for the first nine months of 2025.

Interest income for the third quarter of 2026 was $9.6 million, an increase of $246,000, or 2.6%, compared to $9.4 million for the second quarter of 2026, and an increase of $283,000, or 3.0%, compared to $9.4 million for the third quarter of 2025. Interest income was $28.1 million for the first nine months of 2026, an increase of $1.3 million, or 4.7%, when compared to $26.8 million for t

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Lake Shore Announces

First Quarter 2026 Financial Results

DUNKIRK, N.Y. — April 22, 2026 — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Bank (the “Bank”), reported unaudited net income of $1.9 million, or $0.26 per diluted share, for the first quarter of 2026 compared to net income of $1.1 million, or $0.14 per diluted share, for the first quarter of 2025. The Company's financial performance for the first quarter of 2026 was positively impacted primarily by an increase in net interest income.

"The results from the first quarter reflected a typical beginning of the year for our company," stated Kim C. Liddell, President, CEO, and Director. "Despite intense competition and challenging loan pricing environments, we remain dedicated to optimizing our balance sheet and operational efficiencies to enhance the Company’s overall performance."

First Quarter 2026 Financial Highlights:

• Net income increased to $1.9 million during the first quarter of 2026, an increase of $866,000, or 81.9%, when compared to the first quarter of 2025. Net income was positively impacted by an increase in net interest income of $1.2 million, or 21.9%, when compared to the first quarter of 2025;

• Net interest margin increased to 4.02% during the first quarter of 2026, an increase of 17 basis points when compared to net interest margin of 3.85% during the fourth quarter of 2025 and an increase of 53 basis points when compared to net interest margin of 3.49% during the first quarter of 2025;

• Efficiency ratio improved to 69.58% for the quarter ended March 31, 2026, a decrease of 924 basis points as compared to 78.82% for the quarter ended March 31, 2025;

• Return on average assets increased to 1.07% for the quarter ended March 31, 2026, an increase of 45 basis points as compared to 0.62% for the quarter ended March 31, 2025;

• Book value per share increased to $18.11 per share at March 31, 2026, as compared to $18.10 per share at December 31, 2025;

• Non-performing assets as a percentage of total assets decreased to 0.22% at March 31, 2026, as compared to 0.23% at December 31, 2025; and

• The Bank's capital position remains "well capitalized" with a Tier 1 Leverage ratio of 17.54% and a Total Risk-Based Capital ratio of 23.81% at March 31, 2026.

Net Interest Income

Net interest income for the first quarter of 2026 increased by $38,000, or 0.6%, to $6.7 million as compared to $6.6 million for the fourth quarter of 2025 and increased $1.2 million, or 21.9%, as compared to $5.5 million for the first quarter of 2025. Net interest margin and interest rate spread were 4.02% and 3.43%, respectively, for the

first quarter of 2026 as compared to 3.85% and 3.22%, respectively, for the fourth quarter of 2025 and 3.49% and 2.94%, respectively, for the first quarter of 2025.

Interest income for the first quarter of 2026 was $9.1 million, a decrease of $402,000, or 4.3%, compared to $9.5 million for the fourth quarter of 2025, and an increase of $688,000, or 8.2%, compared to $8.4 million for the first quarter of 2025.

The decrease in interest income from the prior quarter was primarily due to a $26.1 million, or 3.8%, decrease in the average balance of interest-earning assets and a three basis point decrease in the average yield on interest-earning assets. Interest earned on interest-earning deposits decreased by $283,000, or 37.6%, due to a $23.1 million decrease in the average balance of interest-earning deposits and a 43 basis point decrease in average yield on interest-earning deposits during the first quarter of 2026 as compared to the prior quarter.

The increase in interest income from the prior year quarter was primarily due to a $35.3 million, or 5.6%, increase in the average balance of interest-earning assets and a 13 basis point increase in the average yield of interest-earning assets. During the first quarter of 2026 as compared to the same period in 2025, there was a $480,000 increase in interest income on loans due to a 29 basis point increase in the average yield earned on loans and a $5.6 million, or 1.0%, increase in the average balance of loans. Further, interest income on interest-earning deposits increased by $235,000, or 100.4%, primarily due to a $30.5 million, or 129.4%, increase in the average balance of interest-earning deposits. These increases were partially offset by a $27,000 decrease in interest income on securities due to a 16 basis point decrease in the average yield of securities and a $752,000 decrease in the average balance of the securities portfolio due to paydowns.

Interest expense for the first quarter of 2026 was $2.4 million, a decrease of $440,000, or 15.5%, from $2.8 million for the fourth quarter of 2025, and a decrease of $507,000, or 17.5%, from $2.9 million for the first quarter of 2025.

The decrease in interest expense when compared to the previous quarter was primarily due to a $26.1 million, or